Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-09-01

known as Portland Electric GO. IS of
19ll-26 ard are entirely distinct from tine
two issues described ABOVE.
After consideration Of the matter, ]
ruled at that time that the bonds ana
not comply with the requirements OF our
statutes governing savings bank invest
mentS. ! was asked If the payment or 4
quarterly or a s':ni-annual. l do not pc!
lively recolect which. divided ON the pre-
feired stock of the company at the rate
Of Eve per cent. would qualify them
ruled that, in my opinion the dividend
must be earned and paid for year or
more and that it must be on the entire
capital stock. preferred and common.
That there might be no error | afterw:1d
submitted the matter to the attorney
general. who is the legal advisor q: AL
Of the departments. | received, and now
haze in my possession. his written opin-
ion sustaining my rulings in every lar
ticlliar. The result was. as | have stated
that the banks which had contracted for
the bonds subject to my approval did not
take. and We're not asked to take them.
and none of them are or have been held
statement that they hold nearly one mil
lion of them to the contrary, notwith-
standing.
l would like to believe that your state
ment was made in good faith and that
yOu We're honestly in error. But | am
reminded that in the fall of 1906 YOU pub
lshnd two editorials in your paper. max
ing in substance the same criticism which
yon mad" last evening l then realized
that such reckless statements We're an in
jury to the banking institutions of the
state and On one Of my official visits to
WaterVille in October of that fall. in
tended to take the matter up with MI.
Davis, whom | understood to be the pro-
prietor of your paper. | did not see him
but in his absence mentioned the subject
TO an intimate business associate of his.
A few days later / received a letter from
| that gentleman. which l now have, in
| which he referred to the above matter
| and said.
"Following our conversation of a few
days since. I beg to advise YOU that af-
| ter some delay | have been able to talk
| with Mr.. Pattangall regarding the item in
the recent issue of the Sentinel. and he
| states that he understood that the deal
| was put through and the securities pul-
chased before YOU took your office and
no reflection whatever Was into nded on
you. / now feel well satisfied that
YOU will hear nothing more of the kind
from that source.
responsibility for the purchase OF the
| Portland Electric Co bonds on some
| other official none were ever bouShD,
hut to show that your repetition last
| night of a false criticism WGs not acct
| dental.
MY conclusions then briefly stated are:
| 1-Your statement that the savings
| banks of this State own nearly n million
| of the bonds Of the Portland Electric Co.
in violation of law and through my Off
| tal negligence, is false, because they own
| none Of them.
| You knew that it was false when You
| made it.
3--Your attention had previously been
called to its talsitv.
| 4-That i'm the face Of this knowledge
YOU publicly, deliberately and falsely
stated that the savings banks of the State
of Maine We're investing large sums OF
| money illegally and without warrant.
| / cannot understand why you should
| thus deliberately repeat this charge un-
less it be on the theory that even false
| hood consistently persisted in from any
| kind of a source will leave some mud /:
| when. however. such reckless conduct in
| wolves the statement that the banking
| institutions Of the State are not legally
| conducted. it is time that II ceased an'
| now ask You to publish this correction
as consrcuouslH in your own paper II.
you make your charges.
| Very truly yours.
| W. b SHELTON
| Bank Examiner.