Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-02-01

this State for term of thirty DAYS. The
association, however, volunteered to TINS
suspend business Tor sixty DAYS, therefore
the order had prepared was net issued,
At that time l expected at an early date
to make ptrs nal examination of the
affairs Of the association at its home Office
| In Manchester. N. H., but found that the
| duties OF the department in making the eF :
sminations of local institutions left me no
time for this work. did, however. obtain
from the association by correspondence
and other investigation much infor1iia.
ton regarding its affairs and methods az
doing busnt IS. l also took counsel from
eminent legal authority and ascertaincd
that nothing further could be done to pro
tect the interests of the citizens OF the
State than already had been accomplished
by a suspension Of its right to do new
| business here. The entire revocation OF
its license would not prevent 1t from
carrying ont the contracts already mad.
with It's shareholders within the State,
nor prevent those shareholders from con
tinuing payments they had agreed to
make thereon, if they so desired; but such
| action would, however, have removed
| tho association entirely from the siprryi-
| of the matter, at the expiration OF the
sixty days, issued an order suspendhg
| it for Il further term Of ninety days
Finally, on the twenty sixth day Of
| December, 1895, the association withdrew
| permanently from the State, giving assur-
| ances that it would rot solicit or take
new business here but would maintain its
| local agencies for the convenience Of its
shareholders and give them every oppor-
| tunity to retire. withdraw or continue
their shares as they might think best,
and that tho relations and contract
obligations existing between the assoria
tiou and its shareholders should he main
tanned and carried out.
Although the association is still under
the supervision of this department and
liable to examination by it at any time
lis voluntary withdrawal from the State
renders i5 unne, cssary for me at this time
to enter into Il detailed discussion OF its
financial affairs or business methods
Should it, in the future, be deemed nee
essary in the interests Of the existing
shareholders of our State to make fur
ther examination, the matter will have
my immediate attention and the results
promptly reported to you and given to ic
shareholders through the public press.
Under the provisions Of section 2, chap
ter 20, of the Public Laws OF 1891, this
association, although it has permanently
withdrawn from The State, sill has au-
thority 10 make real estate loans here to
It's present shareholders and !, therefore,
deem it important to call attention to
the manner In which thes, loans are
made. As has been explained In pre-
vious report, its practice is to divide Zach
loan into IL first and second mortgage.
The first mortgage, fer the larger
amount, being In the ordinary form of n
note secured by mortgage, Is sold and
guaranteed by the association. The
second mortgage, for the smaller amount,
being in the usual form of q loan ard
building association mortgage, provides
therein for the payment of the monthly
dues upon all the shares pledged or the
loan. the same as though the association
pledged or the loan, the same as though
the association carried the entire mort
gage debt. In case of any failure on the
part of either party to carry ous the terms
of the mortgage contract. the mort gagor
would have two parties with whom to set
tie and two mortgages to cancel before his
The only other matter it seems neces.
sary to consider is the rights and liabilities
Of the present shareholders. The associa-
ton now has in force in this State five
different forms Of certificates of shares
There are, however, comparatively few of
the first three outstanding at this date
These are specially favorable to the share
holders, as they fix the number of years
for which payment of monthly dues must
be continued, substantially agree to ma
turc the shares in eight years, and also
give cash surrender value to the holder
ut any time after one year from the date
of issue. A all of these certificates were
issued prior to or during the early part Of
the year 1891, they now entitle the
holders to receive in cash the surrender
value shown in the table on the cc:titi.
Gates; that value in each case being more
than the amount paid by The shareholder
to the association. The other two, sub
stantially alike in terms, make UP the
larger portion OF the certificates now out
standing in this State and were issued
during the years 1894 and 1885. They
ere in many respects like those issued by
other loan and building associations and
are not so favorable to the holders as the
three forms first mentioned, as they do
not give Il cash surrender value until they
have been in force for five years and con
tain no limitation rs to the number of
years in which payment of dues is to be
continued. The date Of their maturity
depends wholly upon the amount Of
profits the association earns and the
amount its directors see fit to credit to the
Shareholders there being nothing in the
certificates them selves that would prevent
the association from continuing its assess
ments upon them for an indefinite time
They (thc shareholders) are, however,
entitled, ut the end of any multiple of six
payments, to receive from the association
withdrawal certificates for the amount in
the table printed on the original ccrtif-
Gates held by them. These withdrawal
certificates bear interest at the rate of
per cent. per annum, payable semi-an-
nually, the principal itself being payable
at the maturity of the shares IN the series
of which the original stock was part
II the association should continue bust
ness and meet all liabilities, withdrawal
certificate will give to the shareholder the
money he has invested and a fair rate of