The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-02-24
THE SAYINGS BANKS.
Strong Letter from Treasurer Ed
ward A. Moves.
SENATE VOTES TO ABOLISH THE
SCHOOL DISTRICT SYSTEM.

Features of the Listing BilI-New Insur-
ance Bill To Be Reported-Amend-
the State College.
Especial to the Press.]
AUGUSTA, February 23.-Mr. Edward
A. Noyes, treasurer of the Portland
Savings bank, when the special commit
tee on taxation gave its bearing on the
now celebrated savings bank tax bill,
was unable to be present the views of his
bank. A few days later he wrote letter
tc Senator Herrick, chairman of the
committee, expressing the views Of The
managers of the Portland Savings bank
in opposition to the bill. That letter is
now on file with the committee and is
strong argument against the bill with
the strong and mysterious lobby behind
it. Mr.. Noyes wrote as follows:
Hon. A. &, HerricA, Chairman, and the
Committee on Taxation, Maine Leg5s-
ldture:
Gentlemen--I am directed by the
board of managers of this bank, in view
of the fact that the views of this board
upon the bill for the taxation of savings
banks were not presented at the hearing,
to state few of the reasons why the
trustees oppose the passage of the BILL
They respectfully submit that the gen
eral principle that a savings bank is
bound to give the preference to home Sc
curities, has always governed the ac-
ton of this bank, but they do not believe
that discrimination in the taxation of
securities is sound principle of bank
ing:
First, because it discriminates against
class of securities that no sound saw
ings bank should ever be without rea-
senable amount Of: viz; the listed secur-
tiles of the great centres like New York
and Boston.
Secondly, because it fayors too great
an accumulation of non-convertible as
sets; for, for with the exception of Maine
Central Railroad securities, scarcely any
Maine securities are quickly convertible.
Thirdly, because all the losses this
bank has made have been the result of
investments in mortgages and railroad
bonds of Maine.
Lastly, because in the experience of this
bank it is impossible to maintain per-
centage of over SO per cent of Maine in
vestments, with due regard to the rule
which governs all well managed savings
banks, of not having so large per CEN
tage of it's assets in any one security that
the failure of the promissor shall affect
the standing of the bank and cause a
| run. The Mechanic Savings bank is a
notable instance of failure to observe
| this rule.
In 1877, this bank had three-fourths
| of its investments in Maine and United
| States securities; but, in spite of our
utmost endeavor, that percentage had
| fallen in November, 1892, to a trifie over
| 30 per cent and it must be borne in mind
! that this bank holds about
One sixth of the railroad bands
| OF Maine,
One seventh of the corporation of the
| bonds of Maine, Stotal held by
| One fourth of the collateral loans savings
to the citizens of Maine, banks.
| One third of the loans to corpora
| tons OF Maine,
| All of which tends to prove that we
| have tried to maintain a percentage of
Maine securities as large as possible and
| it has fallen to so per cent. Please to
remember in this connection that in all
these years, we have built up a business
| and a list Of customers which no other
| bank has.
| We are certain that if increased income
| from taxation of savings banks is desired
that the bill will not produce as large or
as certain an income to the state as the
| present law, provided you add the re-
| served profits to average deposits.
We are unwilling to have such a thing
obtain because from past experience we
| believe that two years hence we shall
again be called on to resist an increase of
taxes. The estimated increase as given
| in the Kennebec Journal was only $42, 900
! and we know it over estimated the taxes
| of this bank by $4,000, and doubtless
others are oyer-estimated. On the other
hand, if the So, ,223, 1886 of reserve fund be
added to the. usual increase of deposits,
viz, So, 119, ,496, you have at least $4,000
| increase of taxes for the next year and
| the regular annual increase of from $22,-
500 to $25. 600 after, as against an uncer-
| tain income because OF an increased hold
ing of Maine bonds.
Will you do us the great favor to read
this to the committee.
EDWARD A. MOVES,
Secretary for the Board of Managers of
Portland Savings Bank.
The number of remonstrances to the
passage of the savings bank bill coming
| in today was large. From Portland come
protests signed BY J. Y. Hodsdon and 53
others; VIM. w. Thomas and 80 others;
Geo. G. Clark and 56 others; L. A. Bray
and 129 others; Nathan Webb and 4S
others; Alfred Woodman and 107 others;
Theodore C. Woodbury. and IS others N.
E. Redlon and go others.
The House today ordered that the
Joint special committee on taxation in
quire into the expediency of requiring
national banks, loan and trust compa-
MES and private banking companies do
ing business in the state to make return
annually, ON the first day of April, to the
assessors of the several towns and cities
of the state, of the interest-bearing de-
posits which they may have belonging to
any residents of such towns and cities
on basis for municipal taxation. This
order was introduced by Mr.. Perkins of
Danforth.
Senators and the School District
The Senate, by vote of Is to II, to-
n av nassed to be engrossed the bill to