Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-01-15

to the final settlement of the affairs OF
the Granite state PrOvident Associa-
! ton, as far as Maine is concerned. II
is subject of wide interest and Mr.
IlmDerlake gives a comprehensive re-
view and summary of the whole mat
ter.
This association was licensed to dc
business i'll the State Of Maine. l'ebru-
Any 10. 1892. under the provisions OF
Chap. !? of the Public Laws OF 1891
Previous to the enactment of this law
it had done Il small business in the
State under protest of this department
rms statute was enacted, after an eX-
tended hearing by the Legislative com
mittee confined almost entirely to an
investigation of the business methods
and financial standing of this particu-
lar institution. In fact, while this is /.
public statute, it was presented and its
enactment urged by those who desired
the right to extend the business of this
association under sanction of our laws
Considering the fact that the Legisla-
ture had in effect passed upon the ques-
ton of admitting this association to do
aminer felt constrained, notwithstand-
ing he personally did not approve of the
methods of the company, to issue the
license as of the date stated above.
In 1895 the Legislature passed Il joint
order directing the bank examiner to
make Il thorough examination of the
condition of said corporation and its
methods of doing business and report
to the Governor and Council. In COM
pliance with the order such an exami-
nation was made, commencing June |,
1895. and the report thereon presented
to the Governor and Council September
-. 1895. Immediately following this
report, and acting under the directions
of the Governor and Council. this de-
plrtment suspended the authority of
the corporation to do business in the
State. Finally on December &c. 1895.
the association withdrew permanently
from the State, and gave assurances
that it would not solicit or take new
business here. 1t soon became evident
that it would be impossible for the as
ISOLATION to carry on its business and
meet its contracts with its shareholders.
L"ga! proceedings were thereupon
commenced for the appointment of a
receiver to take charge of it's assets
within the State of Maine. and so far as
possible protect the shareholders resid-
ing here, and the Hon. Henry Il
Cleaves was appointed to that position
April p. 1896. August "A. 1896, the as
ISOLATION was perpetually enjoned
from doing business in this State.
At the time the association ceased
doing business here it had out standing
in the State 1921 shares of it's stock
held by 3,46i different individuals, who
had paid the association approximately
$io0,OOo. 1t had negotiated loans with
in the State to the amount of S3I4 200
of which it still held $4,000. principal
iy i'll second mortgages. the balanc. or
the first mortgages, having been sold
and transferred TO investors.
The statute authorizing the license of
foreign corporations of this kind to do
business in this State requires them
tilst to deposit $2J.0n0 in the State
Treasury. and thereafter IL sum equal
to IL per cent. of the deposits made in
such associations or corporations by
citizens of the State. the same to be
the protection and indemnity of the
reside hts of the State. with whom such
corporations may transact business.
At the time this association ceased do
ing business here the amount OF such
fund deposited by it in our State trea-
sury was but $61. 1880. while under
provisions of that statute it should
have been approximately $91,1I.S1. AS
matter Of fact. one reason for sus-
pending its license was its neglect or
refusal to deposit the necessary
amount, and keep this fund up to the
requirement of law.
The receiver Immediately took pos
session of all the assets of the associa-
ton within the State. and proceeded
with the liquidation of its affairs as
fast as was consistent with a profita BILE
disposal thereof at the same time tax
ing the necessary legal steps to ascer-
tain TIL. liabilities of the company
within the State. A Special Master
was appointed by the Court and claims
to the amount of s455. S5a05 were proven
before him and allowed.
On September Is. 1898 the supreme
court, under which proceedings in this
State We're pending. ordered the pay
ment of a dividend of 20 per cent. upon
the claims proved by residents of this
State. This dividend amounted to
S91 171.S1. OF this amount sSS,SS1 GO
was thereupon paid and distributed
among these claimants. The sum of
$l,Sl6.97 was found to be due those
against whom the association had
claims on account of loans made, and
the amount was, therefore, held as a
set-off against the Indebtedness to the
association, and was finally declared
forfeited to the association. and
turned back to the general fund
under order of the court. The
sum of $413.21 remains undistributed,
because the receiver has been unable
to find the parties entitled thereto, or
has not obtained from them the nee
essary releases or the surrender of
their stock certificates as required by
order of court. This latter amount has
been deposited with the court for the
benefit of those entitled thereto, as may
be made to appear upon proper appli-