The Fall River Bank Trouble.

The directors say the deficiency will not exceed $30,000

Fall River, Mass, Sept 29- – In regard to the resignation of Cashier Daniel A. Chapin of the Union bank at the demand of Examiner Getchell- Cashier Chapin had loaned money without the knowledge of his directors upon securities of a nature not approved by the bank examiner, and to cover this action had transferred securities from teh Union Savings bank, of which he was also treasurer. This was discovered at an examination made Thursday, when some national bank securities were missing. The amount loaned on irregular securities is stated to be about $30,000, most of which was loaned to the Battle Zinc company, of which Cashier Chapin is president. This company will, it is claimed, make good the amount of their loan. The directors state that the deficiency will not exceed $30,000 and that the bank has a surplus of about $60,000, which is more than sufficient to cover all the losses. Mr. Chapin has also turned over to the bank all his personal property. He states that the savings bank will not lose anything. An examination of the savings bank books will be made to-day.

The National Union bank was incorporated in 1823, and has a capital of $300,000. The savings bank was incorporated in 1860, has deposits of $800,000 and 1800 depositors. It is not believed that Mr.Chapin has devoted any of the money to his own use, and it is expected that a “greater portion of the irregular loans will be repaid by borrowers, so that the bank’s loss will be comparatively small.

source: The Fitchburg Sentinel
location: Fitchburg, Massachusetts