Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1878-12-06

Association or Trust Company, nor invest
more than ten per cent of its deposits, mol
more than twenty-five thousand dollars il
the capital stock Of any such Bank, Banking
Association or Trust Company.
Any Savings Bank or Savings Institution
may deposit on call in Banks, Banking As
sociations or Trust Companies, located in
this State, or in the cities of New York OF
Boston, with or without interest, as may be
agreed upon, sums not exceeding In tie
aggregate twenty per cent of the assets oil
such Savings Bank, or Savings Institution
DIVIDENDS AND SURPLUS.
Dividends shall be declared semi-annually
on the lst of January and July.
Until a Savings Bank shall have accumu-
lated a surplus fund OF five per cent on its
deposits aud other liabilities except surplus,
it shall at the time of making each semi
annual dividend reserve from the net profits
of the last six months, not less than one
eighth nor more than one-fourth OF one per
cent of the whole amount of its deposits, as
a surplus fund, to be maintained to meet
losses in its business from depreciation OF
otherwise.
| Dividends shall not exceed two and one
half per cent semi-annually on the deposits.
until surplus fund of ten per cent on the
| deposits shall have been accumulated. After
a surplus fund of that amount shall have
been realized, which shall not be reduced by
dividends, but shall be maintained to meet
losses from any cause, the trustees may pay
such semi-annual dividends as in their judg-
ment the earnings and resources OF the cor
poratIon, above such surplus fund, shall
warrant
No dividends shall be declared until the
trustees shall have caused an examination to
be made, and found that the amount thereof
has been actually earned and stands to the
| credit of the corporation, nor except by a
yea and nay vote of the trustees, duly re-
corded.
SCALING DEPOSITS.
In case Of the insolvency of any Savings
Bank without the fault Of the trustees, any
chancellor may upon petition of a majority
of the trustees and the inspector of finance.
setting forth such facts, on due notice to all
parties interested, appoint time for the ex-
animation of the affairs of the bank, and if,
upon such examination, he shall be satisfied
Of the facts set forth in such petition, he may
by proper decree reduce the deposit account
Of each depositor, so as to divide the loss
pro rata among the depositors. thereby rem
dering the corporation solvent, 50 that its
further operations would not be hazardous
to the public or those having or placing
funds its custody.
None Of tho provisions of this act apply to
trust companies except those in regard to
reports to the Inspector of Finance and
treasurer's bonds.
The Legislature also passed law requir-
ing Savings Banks to pay directly to the
State tax of one-half Of one per cent per
annum on all its deposits and surplus except
real estate. and providing that such tax shall
be in lieu of all other taxation on account Of
such deposits either of the bank or the de-
posters.
The treasurer of every Savings Bank is re-
quired annually to report to the State Treas
urer the aggregate amount Of deposits on the
first of July, standing to the credit Of resi-
dents in each town and from the tax so paid
in by the Savings Banks to the State Treas
urer, the latter officer is to distribute among
such towns their proper, respective proper
ton of the tax derived from deposits by resi-
dents of the State. So much of the tax as is
derived from deposits BY non-residents re-
mains in the State Treasury, and is applica-
bic to State expenses.
This new enactment repeats the require
ment hitherto in force that the treasurer CT
every Savings Bank shall report in April an
nually to the town clerk for the benefit Of
the listers Of every town where any deposit
tor, having more than two hundred and 6ftv
dollars on deposit, resides, the name OF such
deposition and amount of his deposit.
The provisions of this new tax law do not
apply to trust companies so long as they con-
tinue to pay to the United States tax Of
one-half of one per cert per annum on their
deposits and capital. as it is understood they
are now obliged to do.
These laws will doubtless conduce to the
security OF depositors, and to the welfare
of the banks and of the public.