New Britain herald., 1926-02-19
Second Section
GILPATRIC FAILS
 TO CLEAR UP ALL
State May Have Bonds Bought
 With Banks Money

Putnam Conn., Feb, ia Lp- After having been subjected 10 three days 0, questioning regarding his "mb"42.emeuts which wrecked the First National hank here in the summer of 1924, c, Haroll Gilpotrio remained al the homo Of his father her" today, whilo George M Coffin, receiver Uf the d"funct bank made another examination of the books of the institution, Gilputric will be called upon during this additional investigation Of the records, made necessary by the disclosures brought out at tho three days Of hearings. 70 explain, if necessary, entries in the books of the institution that ap- pear clQuded or puzzing.
 Hearings Concluded
 Informal hearings with Gilpatric as the principal actor. which opened iu Hartford Tuesday and Wednesday and yesterday at the bank building here where the former banker was once a powerful factor in the life Of the community, ended yesterday. Gilpatric during the three days of examination, was questioned from two different angles. On Tuesday, in Hartford affairs Of the Gipatrid estate Were at issue with counsel, for the trustee acting as the Ques- tioucr. In Putnam, financial tangles in the bank itself were taken up with Receiver Coiiin as the presiding official.
 The Putnam hearings brought forth several disclosures from the lips of the man who is now serving ] } years in Atlanta prison for en- bezzlcment. It was disclosed that;
 Used state Funds.
 Gilpalric used state Of Connecti- cut funds; supposedly advanced for the purchase Of Liberty Loan bonds toT his own us' at one time holling in his own possession thousands of dollars worth Of bonds for eighteen months. paying the interest on them otu of bank funds.
 The former banker had on deposit al Boston bank and credited 10 the First National Bank ot Putnam, &1oU,O00 worth of bonds. purchased for the state, to play with as h. sa f.t." Pressure broughl to bear fore cd him to turn these bonds back 10 inc state before he could make Use Of them.
 Funds Of he First National Bank ut Putnam were used by Gilpa'ric 10 purchase bonds to settle his libcrty Loan purchase account with the state. and al the present time s91 900 involved in the purchase oI these bonds is still unacCountcd for
 No Bookkeeping system
 Tho First National Bank Of Put 1am under his jurisdiction. had nc bookkeeping system 10 care for tht Liberty Loan campaigns during the war; receipts Were lost and tn, lank was forced to make good or bond purchases in dispute; the bank Oil every "drivv" was oyor-SubsCrib- cd. bringing criticism, from Bostor hanks and from the Federal Reserve baun; no attempt vas made to liceI q record of the serial rumb"rs of th' uonis purchased tnd sold, govern. menr houIS being considered as SC much currency
 Government honds ot 1arg" dv nominations. purchased for thu state were ,xchanGod for those of emallo denomination brought in hy th' banks customers with the result tha many bonds originally bought fo The commonwealth are now beini held by residents Of Putnam.
 Gilputric advanced 10 A. Gilman and Company Of Putnam $5o.od needed hy that concern to Eet starl "d in business. with no informatio available at the present time as t the origin Of the funds used for tha purpose. II is hoped by Receive Coffin that this S5o0o0 can be trac cd back to bank funds used for th purchase Of government bonds [ settle up Cilpatric's account wit Inc state.
 state May Have Bonds.
 Gipatric's failure to explain th uso Of more than $too.00" in ban tunds has led Receiver Coffin to 1h belief that possibly tho state ( Connecticut is holding govcrnmor bonds at the present time paid fc ivy the First National Bank of Put nam for which tA" uank receive no credit.
 Receiver Coffin after the compjt ion Of anot'rr examination Of th books of lho hank will make his r, port O tha referee in bankruptcy Hartford after which that onicij will decide whether further hearing with Gilpatric as a witness al necessary