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


condition of the bank. The delay nee
essary to do this, and the uncertainties
surrounding the matter generally. led
to the filing of the original petition in
this case asking the court to intervene
and protect the depositors from prefer
ences that might come from with
drawal of part of the deposits. The
many rumors that were afloat in the
community. and the statements al
ready made in the public press, also
made 1t improbable that the bank
could continue its business without the
protection of the court. Neither could
it be expected that the bank could sus-
pend the transaction of ordinary bust
ness and the paying of the deposits
long enough to enforce contribution
from the various sureties on the differ
ent bonds by legal process. 1t soon be-
came apparent that the only way to
avoid a liquidation of the affairs of the
bank. was to, in some way, obtain a
speedy adjustment of these claims for
sum large enough to practically re-
imburse the bank and make it again
solvent. Any other course must final
ly have resulted in closing the bank
permanently with the loss that always
comes to depoSitOrs in a savings bank
from an enforced sale of it's assets and
winding up of it's affairs.
Acting under orders from this court,
steps We're Immediately taken to call
in and audit all depositOrs' accounts
and ascertain exactly the total liabil-
tiles OF the bank, and fix definitely the
amount Of the shortage chargeable to
the late treasurer. An effort was then
made to settle the claim against the
treasurers estate, and the several
suretes legally holden for this short
age. The report of the treasurer and
| trustees of the institution covers fully
the results obtained, and it Is not nee
essary to repeat the same here.
After the settlements had been made
| as reported by the officers of the bank.
| an official examination in the usual
| form was made by met The accom-
panying statement is the same as that
made up for each bank in the state,
showing the true financial standing Of
| the institution at the present time |
have not. however, included as an
asset the claim against the three
sureties who have not yet actually paid
| their portion of the shortage into the
D3l1k. IL Is tAttCltu tidt W Ill
be realized from this source TO reduce
the total loss to the bank below $4,000
The total loss to the bank therefore.
will he considerably less than one per
cent on the total deposits. or less than
one-half the usual amount of single
dividend.
During the tendency of these pro-
ceedingS. While the bank was prac-
tically closed to business. the collection
Of earnings 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 a careful
computation and then reduced $1,000, to
cover any possible loss in collecting. 1t
was also necessary TO take a small
portion of the undivided profits TO
make up the shortage in the late treas
urer's accounts, and also to temporarily
cover the amount not yet collected OF
the suretes The date has already
passed upon which the bank under its
bylaws is authorized to pay a divi-
dend. and one could not now be paid
excepting upon a direct order from
this court. BY express provision of
statute no dividend can be declared by
the trustees in excess of the amount
of earnings actually collected at the
time the dividend is declared. AS APP
pears in the accompanying statement
the amount of undivided profits now
collected would not be sufficient to pay
dividend of the usual amount. I
would, therefore, recommend that no
attempt be made at the present time
to pay a dividend. although ! see no
reason why the bank cannot. when the
next one is declared. pay something in
| addition To the usual amount, to in
part make up for this.
The bank is now undoubtedly solvent
and in better condition to meet its
| liabilities and carry on a successful
| business than ever before. The
trustees and others who have had the
responsibility of adjusting this mat
| ter have acted in good faith. They
believed that it was better for the de-
| positors to save the bank and that its
| business continue at a sacrifice of Il
| part of one dividend, rather than that
| the bank be closed and the rights of
| the depCsitors for reimbursement
| from the sureties be enforced by a
suit in court A settlement of the
| affairs of the bank by a receiver, with
| the necessary delays in the payment
| of depositors would be likely to entail
! a much greater loss of interest than
| by this course.
! The result. therefore, is that we have
saved the institution from liquidation
| and placed it where it can successfully
| continue business and meet its liabil
| ties. The only loss to depositors is a
portion of one dividend. l feel that |
can safely recommend every depositOr
| to leave his funds in the institution
with the expectation of receiving not
! only full payment in the future. but
| something more than the ordinary
dividend at the next dividend period.
Considering all of these facts | join
with the officers Of the bank in asking
the court to ratify and affirm all their
doings pending this action. | would
| also recommend the court to authorize
| the bank in its own name to immedi
ately bring suit against the sureties on
| the treasurer's bond who have not al
ready settled. to enforce payment of
their portions of the shortage. Be
lievng the bank will be able in the
near future to continue its business the
same as though this unfortunate affair
had never occurred, l also recommend