The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1895-09-20
[spEo1AL TO THE PREss.]


last June been actively engaged in an in
vestigation of the affairs of the Granite
State Provident Association of New
Hampshire, which is doing building and
loan association business and has four
thousand shareholders in Maine, and holds
nearly four hundred thousand dollars
of their money.
tions which it makes. Instead of a sur
plus of $152, ,716 which the books of 1.-The
company show, he finds an apparent de-
ficit of s13, ,O29.
He finds that President 6. Percival
Stewart has been borrowing on inadequate
security, money from the association at
six per cent interest, and has been rein
vesting it in the preferred shares of the
company at eight per cent.
He finds method of doing business
whereby the association may show gain
of $685. 600, while the business, taken as a
whole would result in net loss of $685.
600.
He finds that the members of the asso-
citation have paid in 81. 55 for every dollar
that they have credited to them on the
books.
He finds also numerous Irregularities in
the management of the affairs of the
company.
1t was on the eleventh of last March
that Commissioner Whitten received from
Manchester, N. II. communication
from the president of the association, in
yiting him, together with the officers of
the banking departments of New Hamp
shire, Vermont, Connecticut, New York
and New Jersey, to examine into the
affairs of the association.
On the 9th of March the Maine Legis-
Iature passed an order authorizing and
directing Mr.. Whitten to make such ex-
animation, and to report to the Governor
and Council.
The representatives of the different
States met at Manchester June 4, and
began the examination.
The Granite State Provident Associ-
alton has been doing business in this
state about five years, and the general
agents of the company are on Exchange
street, in Portland.
The general manager of the company
here said to PRESS reporter yesterday,
when told OF Bank Examiner Whitten's s
report:
sThe affairs of the association were
duly considered by the legal affairs
committee during the Legislatures ses-
sion last winter. The bank examiner
at that time, the same one that makes
this report, was endeavoring to get
passed bill which would require SO
large deposit with the state treasurer
as practically to force tho company to
quit doing business in this state. But
the legal affairs committee, after hearing
our president, deemed the proposed bill
unjust. Our president, Mr.. Stewart, is
one of the ablest fnanciers in New Eng
land
"Our association has just been exam
ined by the assistant attorney general
and assistant secretary of state and
the bank examinerIof Michigan. They
were thoroughly satisfied with this con-
dition, and issued a license for it to tran
sact business in that state TO r thirty
years "
The association has local boards of Off
GERS in 25 cities and towns in Maine
In each city or town where business is
conducted the shareholders in that
place elect local board of directors, who
act as an advisory board.
That board of directors elect officers for
that branch These officers are president
vice president and secretary and treasurer.
All the money investing is done under
of the local board. A special
committee elected by the board as an
committee, views the property, |
and makes it's rennrt to the board