Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-01-03

ve,opments, however. that it would be
| useless 70 carry them longer
| THE report Of the commissioners APP
! pointed by the court showed deficiency
OF only about > per cent in the assets of
the bank. Their report included an item
of uncollccted interest which under pro-
visions of law a savings bank cannot car
| ~ as an asset. This was not therefore.
taken into consideration in determining
| the amount of the reduction. The court
did, however, authorize the trustees to
collect and paw dividend of l% per cent
out Of this fund, This was in the nature
| Of return to the depositors, and made
the actual reduction only 81 per cent. A
| special reserve fund was also set aside,
| sufficient in amount TO fully protect de-
vestments, and make it quite probable
| that a further percentage will be returned
on the same accounts in the future.
| II feel confident that with this reduc-
| ton the present condition of the bank is
| beyond question. and that it Is deserving
| of the confidence of the public and a
| continuance of their patronage.
reduction were s376ss4.3l; after reduction.
| $3391T7.SS. The resources before We're
/ $39a ,634.06. since $3Jl, ga. 20.
INsoLvENT SAVINGS BANKS.
1t is practically impossible that any
| financial institution can be so managed
as to avoid all loss. The savings BANK
law has wisely provided for setting apart
| Il reserve fund which is usually found
| sufficient for the purpose of meeting such
| losses In those few cases where the
! losses are so large that this reserve is
! QUESTION how TO manage affairs so as TO
| protect sie iieposi;ors and secure for
'them the largest return possible from
| the assets of the institution.
Our statutes at the present time pro-
vide two methods of procedure. The
1 first is TO appoint a receiver to take pos
pose of them as he may dividing the pro-
| ceeds pro rata among the depositors.
| This method frequently results in a sac
| rifice of assets, as in settling the affairs
| of insolvent business corporations, firms
or individuals. II was the only method
prior 10 1877, when q law was enacted,
which. under certain conditions, author
lied the court 10 reduce the amount OF
each individual depositors account pro
rata to meet the losses. thereby making
the bank solvent and giving it the nee
essary credit to continue business.
One of these methods substantially as
outlined in the statute has been pursued
in al! cases where the assets of a savings
bank have become impaired, with one eX-
cept.on. In the case of the Wiscasset
Savings Bank, in 1879, the court restrained
thaL bank from receiving and paying out
ton was afterwards modified so as to
permit the bank to pay depositors GER
tain per cent of their deposits. The af
fairs Of the bank We're continued under
orders from de court until 1852, when the
Injunction was removed and the bank al
lowed 20 continue its business in the usll-
al way. During This dime, the earnings
OF the bank were Suihcieat to make il
solvent without any reduction Of deposi-
tors accounts. The ultimate result was
{lat every deH5s.tcr received the fun
this ms situri0n been placed III the hands
q a rece.ver. the deposisors would I'M
doubleday AVE received only portion of
the aInagnt due hlen, and that 100 after
waiting fuzzy as long as the Danll was
oni5inct from paying deposits under the
CONDITIONS lh2t dtg exist. On the, other