Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-09-20

Tue profits, it follows that it would be fc
the material advantage of TIE manage
ment to get as much new busin IS a
possible, and not TO its adva ntice to carr
the new business beyond the third year
and an inspection of the books and affair
of the association shows that as n fact
FULLY so per cent of the shares issued b.
the association cease payment, voiuntaril.
or otherwise, before they r ach the par
| ticlpating period. My belief is that ma
lority of the members who sever thei
connection with this association find tha
their connection with 1t has resulted il
loss to themselves
am of the opinion that any change
that might be made that would have thu
eject OF making the management use thi
| same efforts TO retain members that i
puts forth TO obtain new on s, would b.
beneficial to the interests OF the loan fund
creditors. As it is now, with the losse>
all charged against the capital dues, and
the ain Fart of the expense fund coming
from the early payment OF dues. the ex
pected result would be; too little atten
! tlon given TO retaining members; toe
little care to requiring adequate security
| Tor leans made. The actual result as
shown by the very considerable amount
IN real estate and foreclosure and in the
very large percentage of lapscd or discon-
tiuued shares, is, apparently, what might
| have been expected.
| The annual cash statement of the
receipts and disbursements of the
association for the past three years
shows that it has expended for expenses
each year more than its entire receipts
from profit items. These results, consid-
cred with the financial statement that is
herewith reported. confirms me in the
opinion that the shares of this association
will not mature until such time us the
members have contributed to the associa-
ton in dues at least the full par value of
| the share.
| find that in addition to the usual ex-
pense charged back against member S
shares, namely so per cent Of the first
| years payments and the first two months
payments of each year after the first, they
have also charged what they call legal ex-
pense to the amount of one dollar per
share against a majority of the sharehold-
crs' accounts. In this State they have
upwards of 1000 shareholders who have
subscribed for 17,7S6A shares They
| have paid into this association $2S6, 046 80.
! OF this amount, there stood to their cred
| 1t the first day Of June S247, 81 80; there
had been charged back against their ac-
counts SIPS, 442. 80 as expense, 81, GOA 50
for fines and SIS, 4S5.0l as legal expenses
In other words it has taken a payment
of about ST.. SO to this association to ena-
bic them to get credit on the books of the
association at that date for Sl.00. OF the
l7.7S6I shares issued to shareholders in
this State, 2,3S6 have been closed.
This examination having been made at
the request of the association, | have en-
deavored TO ascertain the exact condition
of the association, and the result of its
workings to its members.
farther submit the following:
Upon the recommendation ii the com
mlssionars for New Hampshire, the as
suciation has voted to modify its existing
bylaws so
That losses occasioned by reason of
generalization of real property shall be
charged against tho book value of the
shares of the local branches where loans
are made, If consentiDg thereto; and all
other losses shall be charged, first against
the guaranty fund created out of the earn
iogs of the association, and then against
DN
members Of the association.
That all losses of the association occa-
stoned by Withdrawals shall be charged
against the permanent guaranty sharehol-
dcrs' fund, so called.
THAI cash dividend shares, participating
in or bearing highe- rate Of dividend
than per cent shall not hereafter be is
sued by the association.
t. { 49, H. -, HN.-
for longer period than six months, but
that at the expiration of that time what
ever amount is 10 the credit of said shares
shall be transferred to the suspense &C
count, aud the members notified. Such
accounts are not to participate in the
future earnings, nor to be fined thereafter.
That no more loans shall be made on
the gcuss premium plan.
That the applications shall more speci-
fically set out the amount of dues for ex-
pen,es.
That each member of the association
shall be furnished with copy of the by
laws.
That the uDdist1ibuted profits shall DO
duly credited TO the account of the in
dlvldual members, on the books of the
association, and has also complied with
their recommendations as to the retiring
# participating single payment and IN
stallment stock. If the association com
plies and lives up to these recommends
tions, believe il will be a move in the
right direction.
This report is respectfully submitted.
tSign,d) CHAS. X. WRITTEN,
Bank EXAMINE
Accompanying Mr.. Whittcn's report
was communication from d. j. Fack
Ter, consulting actuary, of an examina-
tinn Of the maturity table Of the Granite
State Providcnt Association. He thought
the table and entire dividend system of
the association to be based upon mistaken
premises, which entirely ignore the rights
OF the younger members.