Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-02-13

dividends, for in order to pay that interest
it is obliged to earn l 2 per cent, and
very few safe sccuritie, will net that
amount to-day. A nj m Der Of the banks
have reduced to and 3 12 per cent the
past year, and so far as l can learn. such
action has received tie approval of their
depositors.
In speaking of the income tax he says
1t seems to be the opinion of our lead
ing lawyers that the savings banks OF
this State are not taxable under its pro-
visions. l have written the department
at Washington for ruling on this qucs
ton. but have not received a reply.
Taxation.
The total tax received by the State
from our savings banks the past year
amounts to 1897, 1892, reduction of
So, 255. 80 from last year. This reduction
can he accounted for on the ground that
the total reserve fund and profit account
has decreased the past year $40, 500. 81,
and further by the fact Shat all invest
mcnts in securities of this State subsc-
quent to January 1, 1898, are entitled to u
two sevenths deduction. AS the tax is
fund and profit accoupt, all items which
may be deducted from these totals tend to
the reduction of the tax.
He says that the Is trust and banking
companies now in operation have liabili-
ties amounting to 50, S35, s07, and re
sources of the same amount.
For some time l have believed that
there should be n general law enacted for
the government of trust and banking
companies, and that the duty and
authority of the State bank examiner
should he clearly defined. As the matter
now stands, | question If the bank cx-
aminer has any control over these com
panies further than the right to make
examinations. | believe he should have
the power to require an assessment on the
capital stock in case he finds the same i'm
paired. ana while trust and banking COM
panies stand on an entirely different basis
from savings banks, there should be some
general regulations for their government.
of the 81 loan and building associations
the liabilities amount to 50, 1888, $3.50, with
the like sum in resources.
The increase in accumulated capital
tho past year is nearly $3.50, 600; very
gratifying result. under the depressed
business conditions of the past season. l
also find by these returns that two asso-
Citations make no premium charge, while
in Others it ranges from g of one per
cent to rs per cent and the latter figure
would make the rate of interest paid by
the borrower 10S per cent. or course
the charging of high premium increases
the earning capacity of the association
and will mature the shares in less time
than lower rate, but the profits of all
are mainly derived from the
borrower and do not believe in charging
him a high premium in order to declare
large dividends.
/ do not like the idea of putting up
loans at auction. A better method. in my
Judgment would be to grant leans in or
der of application, providing the security
was satisfactory, and fix the rate of pre-
MUM at such figure as will pay the
running expenses OF the association, so
that they may be enabled to credit a fair
exceeding per cent--an
then all borrowers pay alike. Our loan
and building associations arc doing SPLEEN
did work in the State and Is conserya