New Britain herald., 1926-03-01
Former State Treasur- CT Unable To Say That s75O,OOo Pur- chase Made By Him self Is Not Without Irregularities.
No Definite Statement Until Deals Are Checked Tells of Clipping Cou- p0ns From Others Bonds for His Own Use.

Hartford March l P,-The cut did not belong to him to meet pressing claims and the absorption ot items on his books 10 cut down his cash total pending the arrival Of a bank examiner was admitted by c. Harold Gilpatric here today. The defaulting cashier, whose en- a2Zzlements wrecked the First Ma lonal Bank of Putnam. was testi- lying in bankruptcy court before Referee in Bankruptcy Saul Ber- man.
 The possibility of irregularities in ne purchase of $50 Qn0 in Victory Loan bonds for the st..,o of Conpec- ticut by Gilpatric. it's former treas urer, was admitted 1y the alter, Before this hearing" he said, T would have said the transactions in- Iolving the purchase of the Victory Loans were all right but l would not say SO now. We are now going over this and some progress is being IIldIF. ibul ttIOl ' | iIIClNf any J' IT. Mite statement concerning il, I would prefer to have it completed. There is evidence of delay in delivery. there ie no doubt of that" II was brought ont that Gilpatric had transferred 5000 ,000 in these bonds from the Victory Loan to the fourth issue.
 Gilpatric, back from Atlanta. 10 aid In unscrambIing the financial tangle he had left. faced his cred- tors for three hours when the hear ing was adjourned Thursday at 10 o'clock.
 One cash item Of st9,ooo paid to the First National Bank of Putnam ivy Samuel Bradley of that place for the purchase of $20,00o in Dallas Joint Land bank bonds. disappeared rom the bank records in June, 1924 and the bonds were never de- !ivered 10 Mir. Bradley.
 This was brought out in question: ing by Attorney Richard Dana. counsel for Blair and company, the company through which the bonds were delivered to the Putnam bank.
 Called It "Ahsorption'
 The former banker called 1t "ab- sorption" of items, but it was shown that the item, along with many others. lost their identity on the ,,scords Of the banking institution about a month before if was wrecked.
 Replying to questions, Gilpatrlc remembered the transaction with Mir. Bradley and admitted that the bonds were received at his bank shortly before August :. 1924 Il vas on that date that he attempted to take his own life after his theftS had been discovered. Reports show, Mir. Dana pointed out. that Mir, Bradley turned over the $l9.oO9 +o thc bank on March i of that year ;nd that the bonds were not pur- chased until three months later
 Cilratric could not confirm this l,ut said it was possible as h" was holding up many bond purchases at that time.
 Changed Bank Records
 The nnostioner forced Gilpatric to admit that the latter had made changes in the books at the bank shortly before the crash, the ahera- lions being In a scratch book used to keep q tally on many items
 Al the end Of June, 1924, it vas brought out, Gilpatric was dfslrons of reducing his cash items before the arrival of q bank ,Xamiuer ana that for this reason tho S19,ooo item along with others was 'absorhed" in some way and taken right of the books. The former cashier was nr- ahlo to state the total of these an- sorptions but admitted that at that time his cash entries were very large and he was forced to reduce them to the limit.
 He was unable to state the age of some of the transactions.
 Told by Attorney Dana that he had inforamtion that Gtipatrl' rosh items in June, 1924 ran as high os s14,ono, Gilpatrlc replied that he caaId not say as to this without re- fnrring 10 the records. He, the officers of the bank, the tellers and other employcs assisted in the changes made in the scratch book Gilpatric testified.
 "Ouestioned as to the actual cur rencv carried hy the First NationaI Bank. Gilpatric said that the bank carried hold-up daylight insurance to cover a maximum amount ana that this policy was for $S'o'o'
 Coupons Paid Interest
 Gilpatric, in 1919. failing 10 pur- chase $2UO,00 of Fourth Liberty Loan bonds for X months, was iorc- ed to pay the interest on them when it came due. II was brought out To- day by '. II. Scovcll, accountant that the first payment of s4.2SN.0S was made by coupons cut of bonds held for safe keeping at Gilpairic'a hank. The second and third pay p.sus were by Check.