New Britain herald., 1926-03-01

monwoalth.
 Government bonds of large de- nominations, purchased for the state, were exchanged for those of ! smaller denominations brought into { the honk hy Putnam customers with
 Ike result that many of the bonds origiEally purchased for the state : were held ny residents of that place. Loan Funds Unexplained lt was further disclosed at the
 previous hearings that Gilpatric had advanced 10 A, Gilman and com l pany of Putnam tho sum of s50,00 needed by that concern to get start od in business, The former cashier failed 10 disclose whore he secured , the funds To make this loan.
 S37 ,0O0 Accounted For Results of tho examination of GilpUtric made by George w. Coffin. ! receiver Of the wrecked Putnam ! hank, Were made known 10 the bankruptcy conrt in report filed i hy Nh, Coffin, The reports shows
 that the three days examination in
 Putnam accounted for s37,0OO 10
 $Isl,oo0 in bonds which have been 1 heretofore unaccounted for. This search of the records, Mr. Coffin wrote, Involved the examination or e mass Of material, checks and en- tries covering q period of years which IS not yet exhausted" Tine reports show that tho receiver had two objcctiycs in view in his in- Ncstigation:
 Two Obicctivcs In View CD To discover what disposition he (Gilpatric) had made of the pro- cccds of funds to tho amount of $&S&,ooo representing claims admit ted or pending against my trust" (2) What disposition had been made of some $i21,000 of Liberty bonds involved in my claim against the state."
 List Of Notes
 Mir Coffin reports that his inquiry showed that notes representing loans made by the bank and written off at various times with proceeds of bonds sold, totallcd $54,566.54; list of payments represented by cheeks Of G, Harold Gilpatric to John J. Burns of Hartford and to other par ties for his benefit, totalled S57,- 1S0.76; list of payments to John J. Burns and to other parties for his benefit represented by cashiers cashiers checks totalled $19,14S.T6; letter from Arthur J. Thomas, man ager of the Trumbull Market com pany, of Hartford, dated September 1 2, 1924 with a list of amounts re- ceived from MT. Gilpatric between November 22, 1923 and June 6, 1924 totalled $19,99O.G3; list of payments to John J. Burns and to other par ties for his benefit represented by bank drafts totaIled $2S,S22,l2. These items total $l59,65S.S1.
 To the aggregate of these. the re- l port continues, must be added cash advanced to the following corpora tions represented by their checks 1 paid outside of evidences of their | indebtedness found among the assets ! of the bank at the time of the fail uro Monson Worstod company $52,- l GOO; Robert Machine company $4l,- GOO: Vito Construction company, 1 $5,000, q total of S7S,000.
 Losses Are Uotcd
 The loss of $78,000 par of bonds
 held for postal savings deposits sold
 in February and March, 1921, is
 placed at S10, 0,o6G.10; the loss on the sale of Davis Daily stock was $7,OOo; | the loss on Thaycr and Gilpalric transaction totalled $7,913.T2; the
 loss on East Coast Fisheries com panv stock was S9,O0o and the esti- mated amount of Pine Tree Wors'cd company notes written off totalled $lO,O00 making q total of S@Sl,- 63S.72.
 "Mr. Gilpatric states also" the re- mort continued, that at various times he borrowed money in Hart ford 10 take up notes of John J.
 Burns, which l have not had time 10 invcstigate.'
 The inquiry along line number 2, the report continues, shows that MT. Gilpatric states that the S@o,oo0 Liberty bonds of small dcnomina- lions turned into the federal reserve bank of Boston in February, 1921, were bonds of bank customers who received st.O00 bonds of tho state lot in exchange for these smaller bonds. he also thinks that he pledE- led S7.oO0 more of the state bonds for q loan 10 or for John J. Burns nt a. Hartford bank.
 Assuming these statements to he correct it will account for $SIo0o of the Sl21,000 missing bonds,
 Questioning Continues Attorney l.. A. Howard. counsel for the trustee of the Gilpatric es- tate, again took up the questioning this morning, taking up Gilpatric's transactions while the latter was state treasurer. In reply to ques- lions. Gilpatric disclaimed any l knowledge of the fixing" of the rec ords in the state trcnsurer's office in the state capitol. He said he could not explain how records show deliv- cry Of government bonds a year and q. half earlier than the actual de- | livery,
 Mir. Howard said that on one transaction the date January 1, 1920 was made on state records with
 q rubber stamp, while the same date on another card report was written with pen and ink. Gilpatric maintained that he could not ex- plain this and that he knew nothing about a rubber stamp having been used in the treasurer's office.
 Not single entry he had made on the treasury records could be re- called by Gilpatric, he explaining that he acted solely as an executive, He would not bs able, even if he
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