The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-10-17
Organization of Savings BANKS.

nuIications that not used
Organization of Savings Banks.
Perhaps 1t may seem almost an imperti-
nence for any one who, In the nature of the
case, can have givea comparatively little at
'ention to the subject to raise question re-
gardlng any of the suggestions made by the
special committee appointed at the con-
vention OF the Bankers association las.
year. and which made report to the recent
convention of a plan for the organization
and management Of savings banks. OF this
committee Mr.. William E. Gould of this
city was chairman, and the other members
were Mr. A. d. Lynch of Indiana and the
Hon. A. B. Hepburn of New York. Their
report showed that hey had carefully cor
sdered the laws of the several States regula-
ting these institutions and their recommend
atoms in the main appear to be wise and
conservative in an eminent degree. Never
thelcss there are certain of their conclusions
which we have sume difficulty in discover
ing good reason for.
Al tAS hiol pidCS we 90 mol see any
good reason for tue preference expressed for
the New York plan of organization instead
OF the plan prevailing IN Maine, Massachus-
etts and some other States. The difference
between the systems is this.--In New York
the law provides that any number of per-
sons, nor less Than thirteen, may associate
themselves together for the purpose of or
ganizng savings institution. aud all the
incnTparators, whatever the number, ara the
/ trustees Of the institution when organized
and equally responsible for Ks management
In this State every such corporation must
consist Of not less than thirty members who
annually elect five trustees In Massachu-
sets there is large body of corpora ors
who annually elect from their number a
board Of not less than nine trustees.
The committee say.
Upon critical examination of the working of the
two plans, the Committee feels convinced that the
trustees should be seif-pcrpetuating fllipg vacan-
eles in their number, by ballet for the follow
Ing
I-This plan holds trustees for life or during good
behavior and upon them depends tie success, or
want OF 1t, o the Swings Bank. According to the
other method in good times good might act,
but when reverses come scape-goat board might
be e.ec cd to meet the storm, TO shield others,
which is hardly possible under law like that of
New York
u.-Again, in this way fewer number of men
are directly amenable to he laws, and having more
at stake themselves, guard better the interests In
trusted to their care.
III. There is no danger of large number of
men of character and influence being elected to
membersh simply as fgure-heads, to give a ficti-
tous adyeri ement to the name, fame and credit of
the institution, when in fact they may are in no way
interested III its success and prosperity.
We assume that by The "workng' of the
plans the committee mean the prosperity
and soundness of the institutions as well as
the convenience of their management. But
Is it true that where the institutions are or
gauized on the New York system they are
more prosperous, or more confded in, OF
that fewer have failed, than where the other
system prevails? We have not the statistics
to test the matter, but had not supposed this
was the clse
The New York plan"holds trustees for life
or during good behavior" How holds them?
Cannot they retire if they wish TOP But
suppose they do not behave well, who can
put them out of power? We do not mean if
they violate the laws in ways that the bank
commissioners can take notice of; but if by
change of character, or habits, or fortunes, or
by decay of powers, they become undesirable
managers of such trust Under the New
England system there are the corpora
tors who can elect other trustees whenever
desirable. Practically trustees do hold for
life in the New England organization. but
they are sometimes changed for cause. We
question if the danger foreboded as possible
in bad times is sufficiently imminent to be
seriously considered. One board could not
sneak out of responsibility and get another
elected. The trick would expose itself.
fit is really an advantage to have a fewer
number directly amenable to the laws that
ad vantage is clearly with the New England
form of organization. The responsible mana
gers amenable to the law are fewer in Maine
and Massachusetts than in New York. How
do the fewermanagers have more at stake
themselves 1t is reputation, not capital,
that is at stake, and every one of the corpor-
ators stakes all that he has on successful
management, and the more there are of them,
so that the limits of mutual confidence and
COMMON interest are not passed, the greater
the assurance OF safety.
Nor do we see how the New York system
gives security against the danger of having
corporators who are simply figure-heads.
Under that system the corporators must be
not less than thirteen and may be any num-
Der above that. In Maine the number must
be not less than thirty. But whether under
the New York organization they be thirteen
or more some will be less active than others
and it is quite possible that some will be
mere figure
On the other hand, is there not compen-
sating advantage in having a small board of
trustees or directors Immediately engaged in
managing the business, with a larger body
of ''men of character and influence" inter-
ssted In the prosperity of the institution and
able to make change in the trustees when
ever it seems desirable? The New York
plan permits board of trustees so large as
to be unwieldly for actual work, larger than
experience has shown to be desirable in con-
Quoting the business of other corporations,
banks, railroads, manufactures, etc., larger |
than the boards of aldermen of most cities;
while the whole body of interested corpora |
tors may be much smaller and much weaker |
than the laws Of Maine and Massachusetts |
provide for.
We had proposed to make some comment |
on other features OF the report, but have |
taken SO much space in consideration of the |
plan of organization that the rest must be |
deferred. In conclusion, it does not appear
10 us that the New York plan has any such |
.preponderence of advantage over the New |
England plan as to call for a substitution of |
1t in aByplace where the other is in prosper
Gus operation.
During the month of September there ar |
rived in this country 49, 600 immiprants |