The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1891-02-10
OUR SAVINGS INSTITUTIONS.
[coNrSuED FROM FIRST rAeE.l

GooNTNUED FROM FIRST pAGE.l
find the construction of this act by the
representatives of the different banks varies
and that the practice is not uniform. Sons
give it the liberal construction that if the
orlglnai deposit does not exceed two thous-
ana dollars, the accumulations by way OF
ulvidends may be added to It from time tC
lime. ana no matter how much in excess OF
Two Thousand dollars the sum may be that
sney nave "a right and do actually declare
uividends on the full amount, while others
adhere to the strict rule that whenever the
account Is In excess of two thousand dollars,
Wnetner by original deposit or the accumu
iatlons OF dividends, no dividend or interest
Is allowed on any sum over two Thousand
dollars.
This want of uniformity in practice or con
struction Of the law makes dissatisfaction
among the deposltors, and If there is wei
founded doubt as to what the true construc
ton Is the statute should be made clear.
TRUST AND BANKING COMPANIES.
.Atthe beginning Of the year there WERE
nine OF these Institutions In successful oper
alton and during the year three additions
have been made to the list, VIZ: The West
Auburn Trnst Company Of Auburn and the
Aroostook Trust and Banking Company Of
The two latter did not commence business
In season to afford an. examination, conse
quently there is nothing herein showing
and have begun business under very favor
able circumstances. -. 'e,---.1s, y
The Auburn Trust Company on this datt
has SIZE, 300 OF Its subscribed capital already
paid In, and the Aroostook Trust and Bank
ing Company has its capital of $4,000. fully
I. The total capital of the ten trust and bank
ing companies reported herein Is S822, 900
and the deposits held by them amount tC
$2,126,031.29, while their total assets reach
the sum Of $3,629S95
81 While their charters give them almost un-
restricted authority in their investments and
methods Of bushes the double liability OF
their stockholders Is an element of caution
In their management. Il
the charter Of the Peoples Trust Com
pany Of Pennington provides that the cor
porati0n shall pay the same rate of tax or
Its deposits and In the same manner as Il
now required by law of savings banks, ant
this institution Is the only one of the ter
that has paid a tax direct to the State during
i see no reason why general law SHOULD
q similar tax on ali these Institutions nov
existing or hereafter organized.
LOAN AND BUILDING ASSOCIATION
y. The year just ended marks the period OF
the greatest gain In the number of loan and
building associations in this State, seven
having received certificates; Of authorization,
viz; The Ellsworth, Sanford. Portland. Me-
land, Bath and Mechanic Falls, This brings
the number Of associations to twenty-sever
and the duties pertaining to them constitute
no small part Of the labor Of this depart
ment.o ,g1c q boz Sssa.s soS .-si ll4s.sosl.sl
The statements 81 z, only twenty four appea,
herein as the Bath. Ellsworth and Mechanic
Fails associations commenced business to-
late for examinations. - 1901 80 01G
These twenty-four associations have 4,93
shareholders, 807 OF this number being Dor
rowers whose average loan Is S753,63 ant
inelr total assets amount to $633. 05l.31.
Inc ngures of total assets are taken from
the result Of examinations made at different
dates and 1t viii be seen at once that could
they have been collected on the date of the
last examination they would have been very
much larger than here given, and 1t is safe
to estimate them at the present time more
than twice as large as In 1889.
Loan and building associations have been
received with much favor throughout the
State. and with the proper management,
when located n growing towns, cannot but
The payment Of large dividends by these
associations should be discouraged. as it is
plain that all profits must come from the
borrower and when the payment of these
profits becomes burden his monthly pay.
ments cease and the associations are OBJ
liged to realize from the mertgaged premises,
anc when there Is no inducement offered to
the borrower and the association has ceased
to loan Its funds the principal object has
been destroyed.
The first step to large dividends is exces
sive premiums and excessive premiums
means burden to the borrower.
The practice In all loan and building asso-
Citations now doing business Is such that the
offices OF treasurer and secretary are filed by
two different persons; this method requires
the keeping OF two sets Of books and when
the examiner calls for the purpose of max
ing his examinations very frequently one Of
these officers are away, who, having no reg.
ular ONCE hours, causes confusion and delay
In the examination. e-N1t -
MY experience prompts me to recommend
that the law be so changed as to require thai
the duties of treasurer and secretary shall be
performed by one person as treasurer, who
shall also be ex-officio clerk or secretary of
the corporation, similar to the provisions OF
law now existing as to savings banks.
This change l think would not only be ap
preciated by the associations but iacilitat
| the work Of the examiner.
sta INVESTMENTS.
The question of finding legal and safe in
yestment Is one that presents itself very for
chilly to thebanks at the present time
III my observations are correct the inclina
ton to ind homo investment that Is fairly
remunerative is much stronger than 1t was
one and two years ago. 1t looks as If tht
strong wave then existing toward western
and foreign securities In the many forms hal
nearly spent its force. a&
The favorable treatment given the institu
tlons In this department by the state, as wei
as the fact that their assets come almost
wholly from our own people. would seem Il
give Maine man or Maine enterprise the
first right to the use of their funds, provided
| the security offered was of equal safety.
From time to time the restrictions as to tn,
limit of Investments has been extended
doubtless this limit may safely be made {,
include other securities not now authorized
but In extending 1t great caution should b,
| exercised.
Those IN charge of savings bank invest
ments are responsible only for their integri
ty and that they comply with the state regu
lations, governing Investments; they hav,
| no responsibility similar to the stakeholder
| Of other banking corporation.
!. Inclosing this report will only say tina
| the SO Institutions represented in this de
partment form an important factor in tn
business and development Of our state and
| careful inspection of their record herein con
Of 10 Inv ad Is