Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1899-11-21

ask that all Of the doiugs % aforesal
may be ratified, approved and affirmed
. that we may be authorized IN pay sal
!, Outstanding bills for expenses incurred
and 70 pay depositors Ia said hank Of
: the conditions and terms provided b,
L statute; that the bank may BE- author
lied to receive deposits and trapssc
any other business savings bank Il 40
thorized TO do under the laws Of tn
State of Maine, and. that the bank ma,
be discharged from further proceeding
In this case.
u Norway, November IL, 1899.
i Signed by trustees and treasurer.
II The report OF the bank examiner, omit
ting some portions which have reference
TO matters fully stated 10 the report o.
the bank officers, 10 as follows:
/ STATE OF MAINE.
Banking Department, Augusta, Nov. IA
1899.
IOxford, 40.
| In re Norway Savings Bank.
To the Honorable Sewall c. Strout, Jus.
tice Supreme judicial Court:
In the above matter It becomes nv
official duty asa party to the proceed.
ings to make report to the Honorable
Court on the condition OF the above ip-
stitutlon, ~ ascertaincd by full exsmi-
nation OF Its affairs, and to give full
statement Of all proceedings relative to
the same since the original petition was
filed 10 this case.
In August, 1899, soon after the death
OF the former treasurer, Seward s.
Stesrns, 1t Was sscertained that there
was . discrepancy between the footing
OF the individual ledger account and the
deposit account carried 10 the weekly
balance as the aggregate amount due the
depositors In the bank. A preliminary
Investigation showed thst this difference
was enough 10 render the hank insolvent
unless the shortage could he inside up
from the estate Of the late treasurer, or
by recourse to surety bonds.
When Mr.. Stesrns frat assumed the
position Of treasurer, he gave = common
law bond In the sum of $4,000 for the
faithful discharge Of his duties, signed
by himself and his wife without limita.
ton or condition, and By eighteen others
whose individual liability was limited TO
OIL 900. The bond by its express terms
covered period Of i've years from date,
expiring May 18th, 1899. At Its expira-
ton surety bond WAS obtained from
the Union Safe Deposit and Trust Com
psny Of Portland, covering the period
from May 18th, 1899, to the date OF the
trcssurer's death.
At the time | made my last official
examination OF the institution on May
18th, 1899, the treasurer's bond was ex-
amined and approved although attention
WAS then called IN the fact that II would
soon expire and directions were then
given for q new one 10 be procured to
take Its place. The old bond had al
ways been In the custody OF one OF the
trustees OF the bank. as IL usual In all
the savings banks Of the state. During
this investigation II WAS ascertained that
the old bond covering the full period Of
the tressurer's services prior to May
18th, 1899, had disappeared and could
not be found. While 1t Il not definitely
kno~u how II disappeared 1t seems probA-
bic that the custodian delivered Il TO the
treasurer after the surety bond Was OBJ
tanned thinking that Il had ceased TO be
OF special value and that Ii might be
filed 10 the vaults OF the bank.
During the tendency Of these proceed
ings, while the bank was practically
closed to business. the collection Of earn
ings materially decreased. This Is
shown by the large amount Of the item |
OF uncollected accrued interest, as given |
In the accompanying statement. This !
item WAS obtained by careful computa- !
ton and then reduced $1,000 TO cover any |
possible loss In collecting. 1t was also |
necessary TO take q small portion Of the |
profits 10 make up the short !
age la the late tressurer's accounts and |
also temporarily cover the amount not |
yet collected Of the sureties. The date |
has slready passed upon which the bank !
under its bylaws Is authorized 70 pay . |
and one could not be paid ex- |
cepting upon q direct order from this |
court. By express provision OF statute |
no dividend can be declared by the trus- |
actually collected At the time the divi- |
dend is declared. As appears In the &C
statement the amount OF |
profits now collected would
not be sufficient to pay dividend OF the J
usual amount. would therefore rec /
that no attempt be made at the !
present time 70 pay dividend, although |
| see no reason why the bank cannot, |
when the next one is declared, pay some |
thing la addition 10 the usual amount, |
10 Ia part make up for this.
The bank Is now undoubtedly solvent |
and In better condition TO meet its obll- |
cations and carry on = successful busi- |
ness than ever before. The trustees and |
others who have had the responsibility |
Of adjusting this matter have acted In |
good faith. They believed that IL was
better for the depositors to save the |
bank and that It's business continue at |
sacrifice OF q part OF one dividend,
rather than that the bank be closed and !
the rights of the depositors for q reim- |
bursement from the sureties be enforced |
BY suit 10 court. A settlement OF the |
sff .irs OF the bank By q receiver with the |
necessary delays In the payment OF de-
positors would be likely TO entail much |
greater loss Of interest than by this
course.
The result, therefore, Is that we have
saved the institution from liquidation
and placed IL where IL eau successfully
business and meet It's liabilities. |
The only loss to depositors Is q portion
Of one dividend. feel that I can safely
recommend every deposition TO leave his
funds In the institution with the expects-
ton Of receiving not only full payment
in the future, but something more than
the ordinary dividend nc the next divi-
dend period.
Considering all Of these facts, join
with the officers of the bank 10 asking |
the court TO ra,ify and affirm all their
doings pending this action. l would
also recommend the court TO authorize
the bank In It's own name to Immediately
bring suit against the sureties on the |
bond who have not already |
settled, to enforce payment OF their por-
tions OF the shortage. Believing the
bank will be able in the near future to
continue It's business the same as though |
this unfortunate affair had never oc-
Cured. also recommend a gradual
withdrawal of the supervision Of this |
court.
FREMONT K. TIABERLAKE,
Bank Examiner.
The trustees met Wednesday morning |