Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1898-10-11
SOUTH PARIS SAVINGS BANK.

LIt tIustfts Va TUG GsOutu BIS CIV
ings Bank have felt compelled to ask TIT
court for small reduction Ia each de
positor's account. This action has moi
been caused by any unusual demands Of
depositors, but Is the result of greaI
depreciation In the value OF some Sc
curities taken long time ago, and I;
designed for the protection Of all de
positors and TO place the bank In posi-
ton where Its sounduess should be un
questioned.
When the bank passed dividend some
that that would be all that was required
but the depreciation hiss continued and
II has been found necessary to strike a,
the root of the matter and cut II out en-.
tirely. While the percentage Of actual
loss in quite small the court will probs.
bly, order reduction OF about ten per
cent, so that the bank can invite new de-
posts without any possibility Of loss to
such depositors.
Such reduction does not destroy any
of the assets OF the bank, which still re-
main the property Of the depositors, and
any excess over the appraised value event
ualiy recovered from the deprecated
securities is by law To be divided pro-
portioustely among such OF the present
depositors as have not withdrawn their
deposits. IL Is hoped that quite divi-
dend will be paid 10 this way.
Should the court decide upon the re-
duction of ten per cent, the practical re-
suit would be as follows: IL person
has deposits amounting TO 500, such
deposit account would be reduced to
$50, but such deposition will be entitled
to his proportional dividend, on such
part Of his deposit as he does not with
draw, that may be paid from the pres
ent assets OF the bank, over and above
said $50.
This matter Of the reduction OF de-
posts is nothing new among savings
banks as quite number have been fore
ed, from time to time, to yield to 1t, and
while the necessity for 1t Is always to be
regretted, the experience OF other banks
proves thst so far Ms the hank itself Is
concerned, II Is no detriment TO Its pros
perity. New depositors are attracted by
It's now unquestioned soundness; while
the old depositors do not withdraw any
more than they are obliged to, so that
they may share in any future distribu-
ton OF assets.
Until this matter Is finally determined
the treasurer Of the bank Is not allowed
TO receive any new deposits or pay any
Withdrawals. II 10 expected now that
all details will be arranged within the
next ten DAYS after which the bank will
be open and running as usual.
Following Is the law governing such
cases:
Sect. LIS. Whenever savings bank. institu
ton for savings, or trust and loan association, ls
iusolyent BY reason OF loss on or depreciation In
the value OF any OF It's Assets. without the fault
Of Its trustees, the supreme judicial court, In
term time, or any justice thereof. In vacation
shall on petition In writing. OF majority OF the
trustees, and the bank examiner, setting forth
such facts, appoint q time for the examination OF
the Affairs OF such corporation, and cause notice
thereof 10 be given TO oil parties interested. In
such manner as may be prescribed; and, " upon
an examination OF its Assets and liabilities, and
from other evidence, he IL satisfied Of the facts
set forth IN said petition, and that the corpora
ton has not exceeded It's powers. nor failed &c
comply with any rules, restrictions and condi
lions provided BY law, he may. II he deems IL for
the interest Of the depositors and the public. by
proper decree. reduce the deposit account OF each
depositor, so "a 10 divide such loss pro rata
among the depositors, thereby rendering the
corporation solvent, 30 that its further proceed
ings will not be hazardous % the public, or those
having or placing funds In Its custody, and the
depo.itors shall not draw from such corporation
larger sum than is thus fixed by the court
except as hereinafter authorized, provided
however that its treasurer shall keep an accurate
account of all sums received for such assets OF
the corporation held by Il at the time Of hling
such petition; and II q larger sum Is realized
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