The Portland daily press., 1869-01-21
DAILY PRESS.
PORTLAND,
Thursday Morning, January q, 1859.
Report of the Examiner of Banks md

ASepoft of the Examiner of Banks md
Insurance.
The report of A. W. Paine, ESQ.,, of Ban
gor, Examiner of Banks and Insurance, an
office created last year, has been submitted:
The only banks now doing business under
State charters are the Eastern, Mercantile
and Veazie banks of Bangor, and the Lime
Rock and North banks of Rockland. Their
charters have been extended to October /,
1870. The oearsport Bank Of Searsport, Bank
OF Commerce OF Belfast, and Alfred Bank of
Alfred, are still engaged in closing their busi-
ness. The care OF the State over them now
is quite unnecessary. The assets of the Amer
lean Bank Of Halowell are still in the the
hands of receivers. The whole amount of
claims proved and allowed against the bank
is S43,71426. The receivers have in their
hands in money SS,556.24, left after payment
OF liens and expenses, and they still hold real
estate taken by levies from which may be re
allied some $4,000 or $1,000 more. A divi-
dend of about 25 per cent. is expected to re-
suit from the settlement. The total circula-
ton of all the Slate banks. including those
which have accepted national bank charters,
still outstanding, is S132, 100. There appear
to be but four which have wholly redeemed
all their State bank bills; two have less than
one hundred dollars still unredeemed seven
teen others have less than thousand, and
four only exceed $4,000. The latter are the
Auburn Bank, S9.205; Canal, Portland. S1O,-
3O2; Eastern, Bangor, S9,799; and Veazie,
Bangor, S10343.
The present number OF savings institutions
in the State is twenty eight, all OF which have
been carefully examined, and the result has
been most satisfactory, showing a safe
condition of the FUNDS and a most flour
lshlng state OF business. In no case has
there been reported dollars loss during the
year; on the contrary, their assets have been
largely increased by timely investments
in government and other securities
There is an aggregate of deposits and earn
ings now in the several institutions of SS,O32,-
246 la sum about equal to the total
amount OF the whole bank capital OF all The
banks in the State at the time when the ma
tienal bank act was passed, and nearly equal
to the whole bank capital of the State at
this time. The total of deposits in the sew
eral savings banks of the State last year was
s., ,59S,600 26 the total for the year 1866
S3,946,433 So; showing an increase during
the last year of $2,433,646 45, and an in
crease over 1866 for two years, S4OS5, S13 10.
The whole number of depositors is 30,52S,
which gives to each depositor the average of
S263 II.
The imperfect and unsatisfactory state of
wv ioho ICSuIdIluS luStlluIlOuS is
is made the subject of comment. No special
provision is made for a critical examination
OF their operations. The present law does
not require the treasurer to give bond or to
be sworn to the faithful discharge of his du-
ties, while the boards of directors are far too
large; the work can be done better and more
safely by smaller number. Absolute safe
ty, security beyond the reach OF doubt or
calamity, is what is demanded by our savings
institutions,-the idea of profit coming in is
matter of secondary Importance. invest
ment in real estate, properly made, is desira
BILE, but there should be no buying and sell
ing land for the purposes of speculation.
The sum invested in mortgages of real es-
tate is 81 81, PAL "a. 1t is believed that this
kind of investment shou d be favored. Loan
ing deposits on the security of names only,
has many objections. The examiner is
pleased to refer to the several institutions in
this State where not dollar of such invest
ments is found, as in the Portland, Maine,
Augusta, Wiscasset, Gardiner and Hallo@ell,
with slight exception) banks, making an ag-
gregate of about one half of the whole.
Mr. Paine found the insurance business
entirely without system, and has therefore
had scanty material to work upon. The leg
isature has granted, since the organization
OF the State government, one hundred and
forty charters to insurance companies,-forty
are still alive, many of the rest were never
organized, while others have started into life
aud failed. The number of foreign insur-
ance companies doing business in the State
has not been ascertained Our laws are lax
in regard to the operations of these compa-
nies, and wide field is open for the practice
of fraud and deceit.
The examiner condemns in an elaborate
and convincing argument the principle of
small insurance companies, believing that the
business can be more safely done by large
companies representing a large capital. He
recommends an entire and radical change in
our insurance system by establishing a de-
partment of insurance to be under the charge
of an insurance commissioner, to whom
should be given the entire jurisdiction of the
whole subject. Before any company, foreign
or domestic, shall commence an insurance
business here, the proper officer shall place
before the commissioner such information as
he may require relative to the ability OF the
company, and il everything is satisfactory,
the company, under certain restrictions, may
be authorized to do business. This system
has been adopted by other States, and is con-
hdently recommended.
From the most trustworthy and fullest in
formation which the examiner has been able
to collect, he is brought to the conclusion that
the amount OF fire and marine risks in Maine,
exclusive OF those in our own companies, is
about Sl0O,OOO,000, and life risks $50 600 900.
The amount OF premiums received will mot
vary much from S3,O00,O0O, about one-haIf of
which is derived from life policies. The av-
| erage of losses to fire risks is about 46 1-2
cents on 800. The average losses to premi-
ums paid is about 63 per cene. OF fire risks
| and IS per cent of marine. The amount OF
average losses in year in the State is about
S1,OOOOOO. The means to provide tor this
| new department, and other matters relating
to the business OF insurance, are intelligently
discussed. Tables are appended showing the
| condition of all the banks and insurance COM
panieS in the State