The Portland daily press., 1898-01-26
Annual Report Of Bank Examiner
Timberlake.
STORY OF THE LUBEC DEFALCA-
TION TOLD IN DETAIL.
Suggestions for More safely Protecting

his annual report to the Governor and
| Council. The number, classes and assets
of the institutions under his supervision
are as follows: Fifty-one savings banks
with assets, $62, 826, 800. SO; sixteen trust
and banking companies with assets 81,
10, 403.15; thirty-three loan and building
associations with assets So, 912, 1853. 63
Total number 100; total assets, S73, 1852,
670. 81. ST.
! This Is a decrease of four in the tota
number of institutions, and, notwith
standing this, an increase OF So, 1888, Oo4 81
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
s110.s1.
They have paid depositors and stock
holders So, $40, 767.a1 in interest and divi
dends during the year. This showing is
highly satisfactory. when we take into
consideration the fact that there has been
an increase in the amount of their IN
divided profits and reserve accommodations,
and general charging off of poor in.
vestments.
| The report shows an increase of 4,764 in
savings banks deposltors, and S2,12l,-
452. so in the amount of deposits during
| the year. This gain is nearly twice that
for the preceding year.
| Out of total of 1877, e7a depositors 1885,
865 have $500 or less standing to the credit
of each.
The average amount now standing to
| the O. edit of depositors is 1885, OF, an in
era Of 90 I'd rhat nf 1904
| The amount of Withdrawals during the
year was $40, 425, 5S7.37, and the amount
! deposited including dividends credited,
S12, 554, S5S. 80.
Owing to the general appreciation in the
value of securities, and the larger amount
of Investments within the state and in
government bonds, there has been but q
| slight increase in the amount of taxes
paid to the state over that OF 1885.
The reduction in the premium account,
although small, is highly satisfactory
considering the fact that the banks have
paid premium on q large portion of the
/ securities purchased during the year.
! The present number of depositors in
trust and banking companies is 1905
and the amount of deposits $5,024, 100. rs.
| This is an increase of $672, 394.65 in de-
poslts during the year.
| The time deposits and certificates of de
| posit are derived from much the same
/ source as the deposits in savings banks.
| The present number Of depositors in this
class is SSH and the total deposits of 50,
| I66, 72S. rs, This is an increase of &459,
$50. 10 in this kind of deposits during the
year. The average balance standing to
! the credit of each depositor in t is depart
inent is $359.16 while that In the savings
| banks, as has already been stated is
1855. 01. Sd r
The amount of interest paid during the
year on all deposits is $l09, 249.t8. and
| that in the savings department alone,
| 800, 264 IS.
| The rate of interest ON time deposits
| varies from two to four per cent per an
mum in the different banks. The average
| is substantially the same as the rate OF
dividends paid by savings banks.
The amount of dividends paid to stock
holders is $85, 752. This would be An aver
age of q little over sig per cent on the en-
while the average rate paid last year was
but five per cent. This gain in average
earnings on the capital stock is due in
part to the elimination of Sl25, 600 of non
| dividend paving stock from the statement
as given in 1886. ~
In the loan and building associations
4 there is an increase of only four in the
number of shareholders; LOB 1-2 in the
number Of shares outstanding; S19S, 911 A.
| in the amount of accumulated capital
and 1921 ,517.16 in the total assets of these
| institutions during the year.
They have increased the number of their
loans 157, and the amount of the same
| 81 43, 5S3 81.
| The recent amendments to the laws
| governing these institutions are already
| producing good results. The provision
| requiring each association to keep q
monthly trial balance has much facilitated
| the work of this department, and has also
been the means of improving the system
of bookkeeping in many associations. All
the officers are under bonds as now re-
ouired by law. In many instances the
premium charges have been reduced be-
| cause of the law, and the cost of money
| to borrowers thereby lessened. More at
tentjon is now given to the accumulation
of a guaranty fund, and the associations
will be gradually strengthened thereby.
| Tn fact the general tone and condition of
the associations are improved in many re-
spects.
Among the resources of many associa
tions Ia found an account called 'Perma-
nent EXPENSE" This item usually en-
braces the books, furniture and other ex-
| nanses at time of organization. Though
| distinot from Current Expense ac-
connt-cbarged off before declaring each
dividend--it should be gradually reduced
| in amount and finally charged off ont of
| the earnings op 1OoSU pplolc pAC lou sCIiCn
mature. 20
LUBEC SAVINGS BANK.
| The closing of Lubec Savings Bank
Anril 18th, 1897, followed as it was some
months later by the report of shortage
| in the treasurer's accounts, has led to a
General discussion of the laws under
which savings banks in this State are
conducted-especially of the present
methods of supervision and examination
a question that directly affects the prop
ertv interests of more than % per cent,
Of our people. In considering this mat
for one should understand the present
methods OF making examinations, the
authority given the examiner. and the
dulles placed by statute upon the trus-
t teas The same general mode of proce-
lire is adopted in making examinations
and in supervising the affairs of all the
different institutions throughout the
State / will, therefore, outline the course
n,,rsued by this department with regard
p +bis hank, and at the same time staue
briefiv the way in which its affairs were
oondncted by it's treasurer and trustees.
oo Az proceedings are pending against the
as ,'a r. treasurer of the bank for the en-
loIAlN4 If its finds only such Faote