The Massachusetts spy, and Worcester County advertiser. [volume] ([Worcester, Mass.]) 1825-1831, 1830-02-03

mentioned. which are considered by themselves
ns q stock notes" moneys have in repeated IN
stances been loaned to many of their Stockhold-
srs. at different times, between the commence
ment Of their operations as banking inatitu-
tion and the first day Of October last, at which
time their last instalment was due. The direc-
tors contend that this prohibition extends no
farther than the payment of the one halt oil their
scapital stock,-that in this they are in error, is
obvious, as the same section provides, that no
moneys shall be loaned or discounts made, until
the payment Of fifty thousand dollars had peen
.snade-it also provides, that their hrst payment
ahnll he the amount of one half of their capital.
Bv their Interpretation, it would emily be a
prohibition against loaning any moneys to
Stockholders, before they had dollar in pos
session, and if they had the loan OF 1t was
otherwise prohibited by such an Interpretation,
this provision becomes surplusage OF words, and
ID rendered absurd in itself. 1t any doubts can
exist as regards the intention of the Legislature
in making this provision, they must be removed
bv adverting to another part ofthe same section!
in which it is provided +" that no dividend shall
be declared upon the capital stock of said bank
until the whole of the capital stock thereof
shall have been paid in, comfortably to the pro-
visions of this act" The language in both pro-
visions is similar, and in the opinion OF your
Committee must apply in both cases to the
whole amount of capital stock. The compll-
ance with this provision, before mentioned,
according to the letter Of it, would have proved
highly salutary to the bank, as by different
course of proceedings in this respect, on the
part of the Directors, loss has been sustained
nS opserv6d tnse tn hq8ss Nd. dquars...4t is Is
the Stockholders, and not otherwise on the
public, as the bank are in possession of gooC
notes which will enable them to pay up all theil
liabilities
Your Committee find that the state of the
Sutton Bank on the 18th January instant, a:
made out by William Hovey, their Cashier, anC
sworn to by him, was as follows:
Capital stock, 500, $50 OF
Bills in circulation, l7,74l ,0(
Net profits on hand, 4,49e, 8:
Cash deposited, including all sums
whatever due from the bank, not
bearing interest, its bills in circula-
ton, profits and balances due to
other banks excepted, COOS, s.
TOtalamount due from the bank, sls6, 498 8
Resources Of the Bank.
Gold, silver, and other coined met
ais, in the bank, 2,63l,z
Bills of other Banks incorporated in
this State, 2,4al %,
Amount of all debts due, including
notes, bills of exchange, and all
stocks and funded debts of every
description, except balances due
from other banks, 12I,44O.6i
Total amount Of resources of the
bank, SI26,493 81
Amount of debts due to the bank Sc
cured by pledge of its stock, S35, 675 90
Amount of debts due and not paid
and considered doubtful, 56,I30,O0
Your Committee, in view of The foreeoinu
facts, find that the Sutton Bank " have exceed.
ed the powers granted them" by making loans
and discounts and by issuing bills or promissory
notes, without an actual payment of their api-
tai IN the manner prescribed by their charter
They further find that the Sutton Bank
have failed to comply with the rules, restrc-
tons, and conditions, required by their act of
incorporation, inasmuch as the Sutton Bank
have not at any time, had fifty thousand dollars
2 u EeafiEE Ih ii money, wfie6 bath been
bona 6de paid in, by the Stockholders of said
bank. towards the payment of their respective
shares, and not for any other purpose, and that
was therein intended to remain as a part of said
capital That no such examination of any spe.
Gle belonging 20 said bank has ever been had
as is required by law. That said bank have
vested, used and improved their moneys, goods,
chattels, or effects, in trade or commerce
That said bank have allowed Stockholders to
borrow money at said bank before they had
paid in their full proportion of the whole Of the
capital stock of said bank. All Of which in the
opinion of our committee is directly opposed to
The positive enactments of the law Incorporating
the Sutton Bank. Which is respectfully SUBJ
mltted BY order of the committee.
JOHN w. LINCOLN, Chairman.
January 25, 1880.