Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-11-29
Peoples Savings Bank Of
Bath, Me-, Is Closed.
STATE Bank Examiner SkeIton
Takes The Action.
officials Integrity Not Questioned
mo One. will Talk.

pa,h. Me, Nov. Suitability to COM
,ota profitably with other financial in
s,ntions is the principal reason ad-
varced by state Bank Examiner Will
liam p. SHELTON for the closing today
If the Peoples Safe Deposit and Saw
mgs bank after 4 career of AZ years.
Tho bank on petition of Mr.. Shelton.
was enjoincd BY the supreme court
from paving money and from receiv-
inc deposits The court will give a
taaring regarding the banks failure,
on Dec. y,
The bank had liabilities of $S70,41S
Including deposits of $S42. 7S6. when the
H .pril last. The estimated market
value cf the resources was $S71 $40.
Since July l. when the annual div
h Menl rate was reduced from to 81.
\ per cent, the institution had lost about
&!0OO withdrawn in the form of de-
rosts or interest.
Bank Examiner Shelton states that
the integrity of President Seth T.
snpe, Treasurer Oscar G. Rogers and
the other officers is in no way ques-
4 toned. President Snipe is i'll with a
heavy cold, and Treasurer Rogers de-
J clined to make statement in view
Of one issued by the bank examiner
/ explaining the situation
The closing of the bank caused con-
siderable surprise. but no excitement.
Examiner SHELTON expressed the
opinion that the depositors would be
| paid in full eventually.
| Bath. Me. Nov. 2S.-The Peoples
| Safe Deposit & Savings Bank was
| closed today by an injunction issued
by Associate Justice A. r. Savage of
the supreme court on petition today of
State Bank Examiner VIM. b. Shelton.
Examiner Shelton explained that the
action was not taken because of lack
4 Of confidence in the institution or it's
ohcers but for the reason that it has
not made any gain in deposits for some
time, there is such Il strong COMPETE
ton in this vicinity for business and
the bank was not on Il firm basis to
compete with the other banks.
IN July LIST d dividend of 81 per
cent was declared instead of four per
cent as had been paid for some time
I and which the other banks still con-
tlnued t" pay. The bank has lost in
deposits since July ) the full amount
Of its July dividend, $i3,196, and s25,-
n KY. The greater part of this loss or
withdrawal of deposits occurred i'm
medlately following the crediting of
Il July dividend. The total amount of
h deposits has remained practically sta
'onary for the past three months or
so and probably would continue so un-
III the uext dividend is declared.
According to the last report of the
H'ate bank examiner, this bank on
h Apfil >. 1909. had liabilities of $780,
Il fIA'', divided as follows: Deposits.
"'s'S'.'6; reserve fund. $1s.347.O9;
undivided profits. $92S5.12 The esti
mated market value Of the resources
was @Il.slo.9S. or $1S,516.3I above the
. nanlilty for deposits, earned dividend
and state tax. t'
'e'h !. Snpp is president and Oscar
= rogers. treasurer The directors
/ are PRESIDENT Snipe d. Howard Spear,
christopher q. Carter. Fred G. Cox,
n'rrN &. Sawyer, Frank II. Percy and
r. Randall Leonard.
associate Justice savage i'm response
!" IN" petition ordered a hearing to be
~" rec. - and that an injunction
'"'u pending the hearing, restrain
"i' pahK trom proceeding further
''" 's business except the collection
"'o''leS due it. The injunction was
'u ana no further business will be
h. f'""'llS an order from the court.
''r Skeiton stated that it was
wv 'honSht the depositors would lose
anything in the end and This action was
! '"''''aken solely to assure equal treat
n.y. 10 All and II prevent the withdraw
some in such amounts as to cripple
o 'd"N and finally impose loss upon
Ihere is no suspicion against
'V"e at all. Examiner Shelton explain
cue situation as follows:
nave not been moved to take this
s,, oy any lack of confidence in the in
"''oA or of its officers or employees.
Ne no reason to question the integri-
M VI 'he management of the bank. The
>. 'eaSon have for the allegation that
iu'her prosecution of it's business
u DE hazardous to the public and to
!. p"sltorS is that a constant with
"'' OF deposits due to the fact that its
a. '''er's do not furnish earnings suf-
"t TO enable it to compete with other
so, ans IN the community, will require the
:. vi ITS best securities or the borrow
a. money at rate of interest great
r, "h It's average earnings. either of
~ ~" VIII result in enforced loss to
in uepositors who are less vigilant
~ "''hdrawng their funds''
h.. eioslng of the banks door created
wy httle excitement as the proceedings
80, ~ conducted SO quietly. Everyone was
H. 'pr'sed but the majority felt that the
m VIII be small, if any. There are
h %'hy small depositors as it was posi-
y, 10 open an account for o5 cents.
."e banks last report was made last
~. H. At that time the deposits aggre-
,.d S7SS,3s1.T or $54,455 less than in
~ p''i 1909. The reserve fund was s22.507
NV ns undivided profits sS667 and the tota
''''''ties sSl9,5O6. The estimated market
Confined on Page Twelve.)