With First National bank now closed, depositors were once again assured that their deposits were safe. The difficulty, however, was the temporary unavailability of depositors’ funds.  Rumors began to circulate regarding whose names were forged but Examiner Dooley was absolutely silent about the affairs unfolding at the bank. Then a new ripple of anxiety went through Willimantic as the Dime Savings Bank, on the recommendation of Willimantic resident and State Bank Commissioner Edwin Buck decided to pay out no money without “a lawful notice if ninety days” in order to prevent a run on the bank. U.S. Bank Examiner Dooley, toward the end of April, 1895, released his preliminary report. About $59,000 in forged papers was found and the largest debtor to the bank was the Natchaug Silk Company. The forged paper and other irregularities resulted in the bank’s capital, $100,000, and its surplus, $26,000, being wiped out. Now it was discovered that the signatures of Judge John Hall, General E.S. Boss, Silas Loomer, Ansel Arnold (the Bank President) and A.F. Fowler were on forged papers in notes of $5,000 each. The Natchaug Silk Company was now beginning to feel the effects of Risley’s maneuvers. As far as its books, it appeared to be in good shape due to its assets of raw and manufactured silk. Colonel J.D. Chaffee began visiting all the company offices in order to take an inventory of the company’s entire assets. The company was making money, but at the same time had an attachment on it and there was a concern that the paper might become due before the company could meet it. And so the directors met and decided to put Natchaug Silk under a receiver. James E. Hayden was appointed to that position. In effect, this assured that the company could continue to run. As far as the bank, depositors were having their accounts “written up” and were yet again reassured that no one would incur a loss. By May 1, it seemed that there were new forgeries being found daily. On that day as well, Colonel Chaffee returned from his asset finding tour. He reported to receiver Hayden who then stated that the entire assets of Natchaug Silk outside of Connecticut had been turned over to the creditors of Risley in order to secure his indebtedness. It was noted that Chaffee did this “with the authority vested in him as general manager” but it was done without authority from the directors. Hayden had many hard questions and few answers and was not satisfied that the transfer of assets was “legitimate”. Back at the bank, there were new surprises every day. On May 2, a quantity of letterheads with the heading of State Comptroller Eckel’s office was found in the bank. The directors said it became apparent to them that when they made inquiries to Risley concerning accounts, he would show them statements seemingly from Eckels saying things were done correctly. Then, the Citizens Gas Light Company found that the Continental Bank of New York held a $10,000 note against it that Risley had been paying interest on and that it was responsible now for payment. In June, a bombshell hit Willimantic. The Natchaug Silk Company had a deficit of $314,370, partly from the shrinking of its capital stock but largely due to the $295,000 in notes given to Risley. The story is complicated but the bottom line was that the bank was wrecked by Risley’s attempt to “carry the National Silk Company”. It continued under receivership as lawsuits piled up for several years. Suits were also brought against the estate of Oliver Risley. That created a stir of its own. It was known that Risley had a safe deposit box but receiver Dooley would not release it until an administrator for Risley’s estate was appointed. Eventually the box was opened but the documents in it revealed that Risley’s estate was worth only about $3,000. Now, attention turned to the problems of the Natchaug Silk Company which were brought on by Risley’s schemes. Several well-respected Willimantic men found themselves under either scrutiny or indictment. Then, the Dime Savings Bank had its own scandal, partially attributed to Risley. Natchaug Silk’s ongoing troubles and the Dime Savings scandal will be articles for a later time. This week’s photo shows the offices of the First National Bank.