The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-03-26
Trustees Bound to Protect
Small Depositors.

BY a unanimous vote the trustees of
the Worcester County Institution for
savings yesterday voted to refuse ia
receive deposits from any individual
not a resident of Worcester county
Coming Immediately after the recon
mendation of the board of investment
not to take more than a $500 deposit
from any one individual in a twelve
month, yesterdays action is as radical
an act as has been taken by any Wor-
lester financial institution in many
years.
The reason for the step, as stated by
Treasurer Charles A. Chase, is this.
1t is done to protect the small deposi-
tor. The original purpose of the bank
was 70 receive and safely invest the
savings Of the people, particularly of
the wage Garner. But of late years
rich men, tempted by the opportunity
OF earning 4 per cent without tax have
been flooding the concern with big de-
posts. Many of the largest depositors
came from remote portions of Massa-
ehusetts, or even from other states,
1t was evident they were dividing
their wealth among numerous New
england savings banks.
The trustees of the Worcester Coun-
ty Institution for Savings have come
70 the conclusion that this state of
things, if continued, would result un-
favorably to the small depositors. The
bank was likely to be flooded with
more capital than they could handle
and the result would be that it would
be necessary to lower the rate of inter
est to 313 per cent. For the last twelve
months the deposits have amounted TO
SoOO,OOO, an increase of 800, 900 over the
average yearly deposit
| With these facts staring them in the
face the trustees decided to pass by
laws that would preclude rich deposit
TORS from depositing large amounts in
their bank il they live outside the
county limits. Of course the rule can
not be made to apply to old depositors.
The following is the bylaw passed at
special meeting of the trustees yes
terday afternoon:
Until further notice no new deposits
shah be received from persons not in
hebitants of the county Of Worcester. -
In his report to the trustees, Treas
urer Chase briefly reviewed the causes
leading up 10 the passage of the by
| laws. He said the abundance of money.
| the weakness of savings banks in adj
| joining states, and the reduction Of the
! rate of interest by New York and some
Massachusetts banks, had turned a
| flood of money into Worcester Golfers,
Something, he thought. must be done
soon TO turn the tide. for an increase of
| 100000 in deposits In one year indica ted
g. flood of money that would be trouble
some to handle. The plan to cut off de-
| poSitors not residents Of the county. he
claimed, would not fall as a hardship
TO any one of them. There are 1876
savings banks we'll distributed around
the state. When a resident Of Spring
| Held, said Mr.. Chase, came to Wor-
cester to deposit money it indicated
| that he had already deposited in his
| own city as much as the banks were
willing TO handle.
Yesterdays action OF the trustees
| shows plainly the prosperous and in
| dependent condition OF Worcester
| financial institutions. Such thing as
the bylaw restricting the residence Of
| deposltors is almost unheard o. Ger
tainiy it is something new in Massa-
chusetts Never before has any board OF
! directors SO clearly defined tile true
| province OF savings bank as being an
aid to the small depositor rather than a
go ID Investment for the man Of means
| The following officers were elected fcr
| the ensuing year: President Stephen
| Salisbury; vice presidents, George s.
| Howe, John D. Washburn, Edward L,
| Davis; trustees, George S. Howe, John
| y. Washburn. Edward L. Davis. Ste
! phen Salisbury, George r. Francis,
Thomas II. Gage, a George Bullock.
Josiah Fl. Clarke, Waldo Lincoln, Frank
p. G5uldng, Lincoln n. Kinnicutt.
Jonas G. Clark, Charles r. Aldrich.
Samuel S, Green. Elisha d. Bufing-
ton, Samuel c. Willis, Leonard Wheeler.
Edward u. Thayer Jr., George f.
Blake, Jr., Edward f, Tolman, Lyman
A. Ely, Samuel b Woodward. Freder-
ick s. Pratt William $. Jourdan. Ellerv
f. Crane. James Logan, II. Winfield
Nyman, Thomas G. Mendcnhall. Oliver
II, Everett; clerk. Charles r. Aldrich,
treasurer Charles A. Chase: board OF
investment. stephen Salisbury, George
y. Francis, Lyman A. Ely. Samuel r
woodward. A. Geo. Bullock; auditors.