Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-09-28
SAVINGS BANKS AND TRUST CON-
PAN1ES
Annual Report of the state Inspector
of Finance.


Advance sheets of the annual report OF
Hon. CHARLES Dewey, State Inspector of Fl.
nance, show that there are in this State %
savings banks and trust companies, with az
gregate deposits of S14, $50, G47 and 4G,3ls
depositors-i gain since last year Of 1886
377 in deposits and of 1886 In the number of
depositors. The average amount to the
credit of each depositor is S3O033. The in
spector finds the affairs of the banks and
trust companies In generally satisfactory"
condition, except, of course the st. Adams
Trust company He recommends that div-
dends be limited by law to d per cent, with
au increase of the amount reserved us sur
plus fund from one. eighth TO one-iourth of
one per cent that further restriction be
made of investments in or loans on National
bank stock that the amount which may be
loaned 10 one person be limited by law and
that, very few banks and companies having
similar charters, general law in relation to
them be enacted.
AS to the st. Adams Trust comp any Mr.
Dewey says;
"On July IS last, made my first exam
inaton of this institution, and found several
excessive loans among the assets, among
others heavy loans to the Norwood lumber
company and to certain parties in Platts-
burgh, N. Y. On none OF this paper was
there any default of interest. To my in
qury as to the amount of debts on which no
interest had been paid for one year, the
reply was about $1,000. To my inquiry us to
the amount OF debts known or believed to be
doubtful, and estimated loss thereon, the
reply was $4,000 OF doubtful paper, aud
,aI Lace I
Was assure that the other debts we're good
and collectble. | had then no reason to sup
pose the large loans we're not good, as repre-
scented, but condemned them as excessive,
and insisted on heavy reduction at
once, and was assured that Mt least
100000 to Slj0,000 would be
paid thereon within three months.
AS knew had but little power in the pre-
misses, except in case | found the trust M
pany insolvent, and knowing there was no
middle ground between conservative course
and insolvency, from which great loss would
| ensue TO the dcpositors and knowing the i'm
possibility of reducing the debt to any mater
ial extent Immediately, and having u strong
conviction that the Obj ctiOnable loans would
be reduced, as promised, | thought it best To
give an OIL ortunity Of making the promised
reduction. Unfortunately the failure Of the
itated that of the Trust company. While
this course had not the result which had
hoped, ! am as yet unable to see what other
| course would have secured larger return IL
the great mass Of deposltors."
In the report OF the st. Adams Trust COM
pany published by the Inspector there is one
thing which seems to need u little explana-
| ton. The loans on first mortgages OF
real estate in this State are given
at 500, GOSS3, and the loans on
personal security at $3.50 SO so. A foot
note, however, says: Corrected classified
ton Loans on first mortgages Of real estate
in this State, S2G,OS4 90; loans on personal
security, S436, ABB 43." Now here is dis
crepancy of 1855, 523S4 Who made the
| corrected classification" the treasurer o.
the company or the Inspector! And did OIL
did not the treasurer commit perjury il
swearing to the original statement?
Tho Burlington Bank and Trust Com
panies.
According to tho Inspectors report
the Burlington Savings Bank has AGO.
deposltors, 81, 1921 in deposits, and sur
plus and undivided profits of SEA 007. II,
total expenses for the year were Sll,7lG.G4
of which S709S. 80 was for State taxes, leav
ing only S4Gl7. rs as the actu, cost of 1t
management. OF the dcpositora, 3l07 hav
have on deposit not exceeding $3.50 each
III have not exceeding $500, and 8 hav
more than $4,000. The bank paid two divi
dends of per cent each during the year. q
its resources, S430, BIB are invested in mort
cages on real estate in this State and $50
260 elsewhere; $685.. 800 are loaned on per
) sonal security; S235, 600 is invested in 10Y
eminent bonds; AID the bank has on depos
and on hand Sl90,I70. 1t owns Sl3, 10
bank stock and has loaned on bank stoc
only S219S.
, The Burlington Trust company has palC
; in capital of $4,000, 500 depositors an
S2l3,6o5 deposits. Its entire expenses tC
the year were only Sl63. 10.
The Farmers and Mechanics Savings Ii
etituton and Trust company has "A pald-i
capital of $4,000 1901 depositors and iii
posts amounting to 1856 AS. lis expense
for the year, aside IRON taxes, were 1870
and it paid two dividends Of 3 per cent eacI
1t has $40 200 loaned on real estate in Il
: State aud $500, 235 elsewhere, and only SOL
, 1871 on personal security 1t owns Sl44, 81
of bank stock, including $500 shares Of II
Merchants National bank and 100000
? government bonds