Daily Kennebec journal., 1895-09-20
IAN AIRING
tContinued from pagt 5


uranite State Provident Association, tba,
ne spent several days looking over Their
accounts and m' 'thods If doing business"
that he found the practices of this com
pany varied in many respects from those
OF cur local associations in Maine. That
1t Is their practice to charge all expense
directly against the capital dues r, ce!ved
from their instalimeDt shareholders, and
this Item amounts to very large sum. y
de found that " fifty per cent. of the first
years payment and twenty per cent.
thereafter till maturity Of the shares
are charged back for expenses" that
each shareholder pays sl2 yearly Oh
each share of stock owned. and So is the
charge on each share the first year and
81 on each share after the first year" He
found that 'at the end Of the first year the
shareholder has only IS standing to his
credit for every sl2 he has paid in. aud
$40 for every s12 after the first year"
| The report further states that "by this
method their profits show to be very
large, as there are no charges against
| them with the exception of one item of
| legal expenses" and that none of these
profits are credited to the shares semi-an-
nnally or annually, as Is the practice of
our local associations y
| The bank examiner further states that
| he understands THAT they sell full paid
stock, AS it Is called. where the purchaser
pays the full amount of 5000 for each
| share, and this stock receives cash diyi-
| dends OF from six to eight per cent on
| this amount, and at the end of five years
Is entitled to propoItionate part of the
| nrntitS nf tho nc,npiatlp - la+ = bnr
have upwards of twenty different con
| tracts whicht they make with their share
holders. The bank examiner further
states in his report OF 1894 that he is not
| In favor of foreign corporations coming In
| here to do this class of business, " and be-
| lieves 'our local associations capable of
covering the entire field"
The report further shows that at that
date, December, 1894, upwards of 1886, :
600 had been paid by the citizens of
Maine and received by the Granite State
Provident Association during the time 1t
had been permitted by the bank examiner
of Maine to carry on this business::in in the
State, and upon which deduction, had
been made of s6 each, on l3, 65l shares,
during the first year, and So per share had
been deducted, from the payments of sub
sequeDt years. by the method of charging
back, by the company, for expenses; so
that at the end of the first year the share
holder who pays Sl2 per share for his
stock only has Sc stsnding to his credit;
and after the first year. he has only $40
standing to his credit for every s12 he
pays in.
The association is still prosecuting lis
business in Maine, and If l am correctly
informed, is now with its new business
taking from the State probably SIS,
or more, every month.
The statute under which the Granite
State corporation was admitted to Go
business in Maine authorizes the bank
examiner for the purpose of ascertain
ing the business and financial condition
of any such association or corporation
doing Or desiring to do such business" to
make examinations of such associations
or corporations, at such times and at such
places as said bank examiner may desire,
and the corporations or associations ar,
required by law to pay the examiner the
expense of such examinations. The
statute also authorizes the examiner to
require, of such association or corpora
tion, returns to be made in such form and
db sutil lllEtS uS It nay Gittb lut
statute Is complete in itself in conferrine
this authority and duty, and contemplates
examinations frequently enough by your
departments to determine whether the cor
poration affords security and safety to our
people who are investing their money
therein.
Though full authority for examinations
was conferred by this statute on the bank
ing department., the Legislature on the
27th day of March, 1885, by joint order,
authorized and directed the bank ex
amincr to mako an examination of the
Granite State Providcnt Association of
Manchester, n. II, and report to the Gov
ernor and council. In pursuance of this
order, the State bank examiner met with
the representatives of the banking de
partments of the states of New York.
Connecticut, Rhode Island, Vermont and
New Hampshire, at Manchester, on the
4th day of June last and began the ex-
animation Of the association as of the first
day of June of the present year.
The report OF the Maine department
was received by me, rs before stated, on
the 10Th day Of the present month. This
examination made in June last, entirely
corrobora.es the report IF 1894, before re
ferred to, and deals more in detail with
some of the company's methods of doing
business and its general affairs 1T also
appears ttat for period covering only
about six months subsequent to the report
of 1894, the number Of shares subscribed
for by Maine citizers. has increased from
13, 651, in December, 1894, to II, 1869 ON
the first day of June, 1895, an increase of
4,1354 shares during the six months.
and calling for payments from the citizens
of Maine, during the first year of the life
of these certificates and thereafter until
maturity, Of nearly $50, 600 annually.
The payments to this company by
Maine shareholders has increased from
about 1885. 600, in December. 1894, to
1886, 046 90 ON June 1st, 1895. Though
the Maine shareholders have paid into this
company 1886, 046 80 the report shows
they had standing to tht ir credit on the
first day of June last only s247,5 so
and there had been charged back against
tn, ir accounts sl3S, 532. Is for expenses and
fines. Or to state the proposition In
another form, the report shows that the
Maine shareholders had paid into this as
ISOLATION on the first day of last June,
about s1.55 for every s. that stood to
their credit on the books of the company.
The examiner reports that the amount