The Somerset reporter., 1898-01-27
Maine Savings Banks.

Inc annual report OF state Bank Tx
aminer Timberlake is a document that u
large number of people of Maine have
an interest in. 1t appears by this report
that there are 81 savings banks with as
sets amounting to s62 1926. 303.83; IL
trust companies with assets OF $7,5l3,'
403. 10, and 80 loan and building associa-
tions with assets Of S2,912, 963.e3; total,
100 institutions with assets amounting
to $73, 1852, e70.61.
This Is decrease of four In the total
number of institutions, and, notwith-
standing this, an increase of o., 793, 084.3
in the aggregate amount Of assets during
the period covered by this report.
An equal distribution of these assets
would give to each person in the State,
Sll0.Sl.
They have paid depositors and stock
holders $2,540, 1921 In interest and
dividends, during the year. This show
ing is highly satisfactory when we take
into consideration the fact that there
has also been An increase In the amount
of their undivided profits and reserve
accumulation, and general charging off
of poor investments.
lhCtC hiO DdtiOnal oduhp
now doing business In Maine, with assets
amounting To GAL, 358, 152 SO. This
makes the entire number of banking in
stitutions in our State 1873. and our total
banking capital $ll4610, 823.20, an in
crease of 81 ,209, 1882 during the year.
Ii this total banking capital was di-
vided equally among all the inhabitants
OF the State it would give each individual
$173.37.
The examiner explains at length the
Lubec savings Bank case giving the
method of examination, and the method
employed by the treasurer In keeping
| the books of 1.-The bank. AT the first
| examination in June 1896, the
apparent condition WAS not wholly sat
isfactory In February, the examina-
ton was less satisfactory showing quite
ii marked falling off In deposits. He
made an Investigation April 18th. "At
the time of this visit, says the examiner,
1.-The treasurer was i'll aud confined to his
bed. After examining the books and
papers of the bank and comforting with
the treasurer and his friends, clandes-
tine ledger was produced which showed
the amount due depositors to be 1923,
76l.30 instead of IS, 392.52, as appeared
on the books heretofore exhibited to ex-
amners as the books of the bank. An
examination of this ledger showed the
actual number of uepositors to be 81,
while the number appearing upon the
book previously exhibited as the general
ledger of the bank, was only about 60.
In some cases where deposits had been
| made, accounts had never been opened
upon the regular ledger, and in Others
the accounts had been opened but the
treasurer had failed to enter some of the
larger items of deposits thereon. In all
cases where the proper credits had not
been given and depositors' accounts
opened in the regular ledger, the general
account Of liabilities had not been in
creased to correspond with the amount
deposited and there was consequently no
increase in the assets. 1t also appeared
that, in some cases where borrowers had
made partial payments, or had paid their
loans in full, the proper endorsements
had not been made, or the treasurer had
retained possession of the notes after
they had been paid, and had continued
to carry them for the full amount as a
part of the assets of the bank. The in
vestigation also showed that the govern
ment bond for $500 exhibited to me at
the time of my previous examination,
W as ulissl1R, anu 81 ldl MS 4 huOW, ~
one has attempted to account for it,.
There were other Irregularities in the
regular accounts and assets sufficient to
have led to a closing of the bank without
the discovery of the additional amount
due depositors.
"On ascertainiDg the true condition of
affairs at once took possession of what
property, books and papers, remained,
and sealed them up-although there was
no provision of law authoritiZing me TO
do so-and, on the 22d day of April,
applied to the court for an order restrain
ing the corporation and its officers from
proceeding further with the business Of
the institution, and for receiver to take
possession Of its property and close up
its affairs. After due notice and hearing,
on the l4th day of May, perpetual in
junction was issued and Hon. :. d..
l1eavitt Of Eastport was appointed re-
ceiver."