The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1895-03-28
Especial to the PRESS.)

u6Ab legislature WIFI sbatcAioHU VI oHe
reasons for creating the office. Had it
not been for the numerous other de-
mands made upon the legislature, it is
likely that the new office would have
been added to the list this year. This is
the document reported by Mr.. Higgins
from the Judiciary committee and re-
ferred to the next legislature: flo
4Our appropriations are now very
! large. In former years when thu appro-
priations and expenditures were conpar-
atiyely small the committee of accounts
of the Governors council could give all
bills careful attention. 1t is now lmpos-
i sible. The council meets but once a
month and at each meeting have many
duties to perform. They cannot give
attention to the details of accounts.
Further, ii bill is rendered the day
after the council adjourns ii cannot be
audited for thirty days and an injustice
is done TO the states creditor.
"The proposed law should provide that
the auditor shall be an expert accountant
and that he shall keep complete set of
books.
"The council changes every TWO years
and many old and rejected bills are pre-
sented which a new council can know
| nothing about and thousands of dollars
i alone
\ 1T now cost at least 800 year for a
1 committe to examine the accounts of the
state treasurer. This expense would he
avoided by the appointment of an audi
tor.
"There is great looseness in the ex-
penditure of contingent funds in the
hands of state officers, boards. of trustees,
commissions. etc. A careful examin-
alton of all bills rendered tokbe paid out
Of these funds would save the state thou
san DIS of dollars 54f4
Another important measure referred to
the next legislature is the following gen.
eral bill which Senator Day told the
Senate this morning was, in its present
draft, approved by the committee on
banks and banking and also by repre-
sentatives of trust companies who be-
lieved it should be passed by the next
legislature. This is the bill which is of
interest to all bank men and business
men generally:
'"Section 1.-All companies incorporat-
ed as trust, safety deposit and trust, or
| trust and banking companies, under the
laws of this state may exercise the power
aud shall be governed by such provisions
of their charters as are not in conflict
| with this act.
"Section 2.-The capital stock of such
corporations shall not be less than fifty
thousand dollars, divided into shares of
one hundred dollars each, with the right
time by vote of the shareholders to
any amount not exceeding $4,000
Such corporations shall not commence
business as trust or banking
company until stock to the amount OF
at least fifty. thousand dollars shall have
been su bscribed and paid in in cash.
"Section 3.-Hereafter such corpora
Il hall N hay the np inf hor
ity to establish new branches.
section 4.-No such corporation shall
make any loan or discount on the securi-
ty of the shares Of it's own capital stock,
nor be the purchaser or holder of any
such ..shares unless necessary to prevent
loss upon debt previously contracted
in good faith: and all stock SO acquired
shall within six months from the time
of it's acquisition be disposed Of at pub
lie or private sale.
Section 5.-Every such corporation
shall set apart as a guaranty fund not
less than ten per cent of its net earnings
in each and every year until such fund
shall amount to one-fourth of this cap
ital stock.
"Section 6.-No Yoan shall De made to
any officer or trustee of such cor
poration except by the approval in writ
ing of the majority of the entire board
of trustees or executive committee.
"Section mo such corporation shall
issue bonds or debentures secured by
assignment OF mortgages on real proper
ty held by it, or sell and guarantee
mortgages OF real estate except for the
purpose of renewing or refunding bonds
or debentures heretofore issued.
"Section 8.-Any such corporation
whose capital stock in the opinion of the
bank examiner has become impaired by
losses or otherwise, shall, within three
months after receiving notice SO to do
| from the examiner, make good the de-
ficiency in the capital stock by assess
ment upon the shareholders pro rata for
the amount of the capital stock held by
each. If any such company shall fail to
pay such deficiency in it's capital stock
for three months after SO receiving no
tice from..the bank examiner, said bank
examiner may apply to a justice OF the
judicial court for an injunction against
it, in the same manner and with like
proceedings as provided in section 121,
chapter 40, Revised Statutes. If any
shareholder or shareholders of such COM
pany shall neglecG or refuse after three
months notice to pay the assessment as
provided in this section. it shall be the
duty of the board of directors to cause q
sufficient amount of the capital stock
of such shareholder or shareholders to
be sold at public auction, after thirty
days notice shall be given by posting
such notice of sale in the office of the
company and-by publishing such notice
in newspaper in the city or town in
which the company is located, or in g
newspaper published nearest thereto, tc
make good the deficiency and the bal
ance, if any. shall be returned to such
delinquent shareholder or shareholders
Amy such corporation at any legal meet
ing called for such purpose, may, by {
two-thirds vote of all the stock out
standing, reduce such capital stock, il
desired, to an amount not less than fifty
thousand dollars, provided such actor
meets the.approval of the bank examin-
er.
"Section 9.-Sections l13, 119, 100. 121
122. except the;lastI sentence thereof, 1913
1874. 126, 127 and 1879 of chapter 40, Re
vised Statutes, and chapter 202 of tn,
public laws Of 1898 shall apply to al
: such corporations. In any proceedings in
stituted under section 121 aforesaid
when.the amount due each person is es
tablished, the court may make sucl
r final decree of distribution as equit,
may require. The statement of thu
condition of such corporations to be re
corded and published as required by
, chapter POP, public laws of 1898. shall
follow the forms published in the alb
| Of he o+i