Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-11-16

the laws as carefully and as fully as
those of any bank in Maine. Had |
been called upon to pass upon their
work. | would have said they had used
every precaution men of ordinary
prudence would use. You see the
methods of concealment were such
that the trustees We're misled
There is a law you understand that
requires the trustees Of each bank to
go over. balance, draw off and foot the
individual accounts in a savings bank.
They have to report the result under
oath to the bank examiner. This the
trustees dld but they We're msIed by
the methods employed in the conceal
ment, ana they used unusual care in
DONG the work. Had | been called
upon To audit the accounts in the same
way | would have been confident that
my work was correct. and that it
showed the true amount of the deposits
due depositors as appeared in the in
dividual ledger"
The bank examiner. then, does not
have to do this work."
"Oh. no. it would be a physical i'm
possibility The Legislature appreciat-
ing this at the start. made the law re-
During the trustees to do it, When
we remember that there are 40 900
depositors in Maine it can readily be
seen that this is Il necessary law if the
accounts are II be audited. as it would
be impossible for any examiner to go
through the work. even though he de-
voted himself to this one item of the
work"
DO the trustees of the greater banks
where there are thousands of deposi-
tors. so through the work as the trus-
tees of the Norway Bank dido"
In 4 few cases ! doubt if they do,
as it would take weeks Of their time.
They employ special clerks for the
work, as the business men usually act
ing as trustees have little time for
anything of the sort and cannot devote
weeks to clerical work.
We'll. wasn't it rather a slack man
ner of doing business in the surrender
of the first bond?" was a question asked
that will naturally arise when reading
the section which tells of this being
done.
Yes. it was slack without doubt. but
Il is only just to say that it was a
natural thing for person unacquaint-
ed with legal liabilities and oblga-
tons under a bond. The person
thought. | have no doubt, that the
liabilities for which it was given had
expired in it's express terms, and as a
new bond had been executed and de-
lvered to the bank to take the place &c
the old one, the old bond tyas of no
further value. that it had become
functus olficio.
Gould there not have been some
other method employed in which the
bank could have been saved from
liquidation and at the same time have
Strengthened matters without so much
publicity and without closing the
bank"
No | see no other way. The mere
fact that the treasurers bond covering
the principal part Of his tenure in office
was destroyed. would have excited the
distrust on the part of the depositors.
This would have made it impossible To
continue business while the adjustment
was being made. If an attempt to
liquidate the affairs of the bank and
the sureties had paid in every dollar,
the depositors would not have been in
though in that case We had been able
to realize 100 cents on a dollar. the
depositors would have been made 10
wait much longer time for portions
of their deposits than would make up
for the partial loss of dividends in the
past six months"
Just what is the condition of the
bank. today"
Il will tell You. If the depositors will
consent to allow their dividends to be
withheld that have accrued during the
past six months as | have suggested to
them. the bank is in as good condition,
today, as any bank in the State, com
paratively. 1t will be firm bank
when once again it starts in to do bust
ness. and no one need have fear Of it,"
The officers seem to have acted
superbly during the whole time"
Yes, | feel that they and their at
torney are entitled to great credit for
the energetic and painstaking manner
in which they have handled the matter,
and that the depostors are under
great obligations to them. A great
amount of labor has been put in by
them for practically 70 compensation
What action did the estate of the
deceased treasurer take in the mat
ter"
THE widow made an assignment of
the estate to the bank to make good
any loss that might be found thus
acting very honestly. Since that time
the relatives have paid in the $4,000
mentioned. and we do not know how
much of that was paid by the widow,
as it was a lump sum.
I'm what condition is the bank as
regards its resources over its liabil-
ities?"
Il find that the market value of the
resources above the liabilities for de-
posits. earned dividends and State tax