The Republican journal., 1909-05-13
THE WATERVILLE TRUST COMPANY,

Business Suspended Pending an Inyestiea-
An in junction has been issued by Associate
Justice Albert M. Spear of the Supreme Judi
cial Court restraining the Waterville Trust Co.
from receiving or paying deposits, pending an
investigation. The complaint was made by
William B. Shelton of Lewiston, State bank ex-
aminer, after an investigation last week and
papers were served on the bank officials at
Waterville Monday morning. The company
maintains branches at Dexter, Newport Hart
land and Corhna, and these are included in the
court order. This action created no surprise
in banking circles as the condition of the COM
pany for some time past has pointed to such
result. There is said to have been no sem
blance of excitement in Watervlle over the
closing of the bank and confidence is felt that
the depositors will be paid in full In an inter
view at Bangor, Charles H. Merrill of that
city, president of the Waterville Trust Co,
does not give very encouraging view Of the
situation.
"The despatch printed in the morning papers
is misleading" said Mr. Merrill and gives the
impression that have been the president of
the Waterville Trust Co. for long time, when
the truth of the matter is that was elected in
March this year and have been president
scarcely two months. l have known that the
bank was in bad condition for some time, and
my wife and being the largest shareholders
in the bank put up fight for the presidency
this spring, and won out by just small mar
gin. | wanted to find out where things stood
and l couldn't as long as the crowd that was in
charge of the banks business were there
Mr. Merrill said he was not an experienced
banker, but as the largest stockholder had been
aware that the securities that the bank has
held have not been what they We're represented
to be for some years, but he had not been di-
rector in the institution and mad no voice in
the matter He said further:
"The condition that now prevails at the bank
| is due largely to the fact tiat syndicate Of
men have hired money from the bank and the
securities that they have given in return have
not been adequate.
"The syndicate has been composed of E. ].
Lawrence, Cyrus w. Davis his partner Mr.
Soule, A. F. Gerald A. B. Page and L. A Nye
They have been directors in the bank and they
are the syndicate that has hired money to
build railroads and invest in western mining
property, etc. The trouble with the securities
that they have put up for the loans is that
they have been of so uncertain a value that no
one knows what they worth. They may
not be worth what some think they are and
tren they may be worth more
! The bulk of the securities held by the bank
for their loans are bonds of the Portland &
Brunswick railroad stocks and bonds of the
Waterville & Oakland railroad stocks and
bonds of the Silverton, Gladstone & Northern
railroad in Colorado; stocks and bonds in the
Gold Prince and Gold King mining companies
in Colorado, and securities in cattle company
in Cuba. These make up the bulk of the secu-
rites of the loans made to this syndicate
"Outside these loans the bank has general
business that is good. The bank has valuable
branches that are under careful management
| and are doing a fine business. The trouble
is with the Waterville bank alone"