Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-12-17
BANK CLOSES.
Injunction Against Saco
Savings Institution.
Condition Que 10 Shrinkage
Of lis Assets.
Action Taken To Protect the De-
positors Hearing Jan. 3.

Ihc closing OF the bank came as n
great surprise to everyone and at $50
O'CLOCK, half hour after the usual
time for the opening for business, bare
~ dozen people knew about it, The
banking rooms are in the same apart
ment as the Saco National Bank and
when called they We're informed by Of
ficials Of the latter bank that the Saco
Savings Bank was closed. The en-
ploycs Of the savings bank We're not
in the bank until later in the day when
the officials returned from the con-
ference held in Portland between the
trustees and State Bank Examiner
William 3. Shelton.
An official statement from Exc miner
Shelton was expected to be issued
about noon, explaining the situation.
One OF the trustees stated that the ac-
ton was taken to protect the deposi-
| tors and that il was believed r. the
banks affairs could be settled so that
the loss to dcpositors would be Very
small. If anything. He asserted that
there was nothing irregular in the ac-
counts. c-t.
The present condition of the instl-
tuition is duo TO a Shrinkage Of assets.
Owing to the condition OF the stock
market the bank has not realized what
it should have from investments. The
withdrawal OF deposits since the clos
ing Of the York County Savings Bank
in BiGdeford last August also has
weakened the institution. In view Of
! these conditions. it was decided for the
best interests of all the depositorS to
close Immediately.
The bank was organized Nov. q.
1859. Former Luther Il. Moore. the
president, has been critically i'll and
for several months has not been able
10 attend to business. Frank W. Nut
ter is treasurer and the trustees are
d. F. I-itrlcfield, Luther f. Moore.
George A. Emery, Frank ". Nutter
| and Abram T. Lord: The liabilities on
Sept. q. 1909. were, Deposits, 81. AIS 301, ,
reserve rnnd. $40, loo: undivided profits,
SGh640: total, &1.5l6 627. The estimated
market value Of the assets 1T that
time was s1,5l9, %o2.07. the amount due
depositors, earned dividend and ac-
crued State tax was 81. 430. oSG99. and
Tire estimated marfsot value of re-
sources above liability for deposits.
earned dividend and state tax was
/ $S9O15.Oe
State Bank Commissioner SHELTON
stated positively in 4 statement set
ting forth the exact conditions that
none If the affairs of this bank in
Voiyo Other banks in the community.
| and no uneasinces Should be felt con
corning thom." Everything was quiet
| about the other banking institutions Of
Saco and 3iddeford ana there was no
| indication Of Withdrawals.
One Ct the trustees stated that the
assets and liabilities are now about
! equal. Owing to the fact that 50 many
| have Withdrawn since the closing of
| the Youk County Savings Bank. il was
| necessary. he said, to sell securities
at sacrifice and il continued in the
future they would have ia sacrifice a
, greater amount than III the past be.
cause OF market conditions. They
might have continued some time hut
| eventually would have 10 close and
the loss would be much greater than
now. He could not tell ahou. The future
| OF tho bank. whether IL could resume
| busin ass Gfter a time or not. The loss
ito dcnhsitors probably will be nothing,
he ,f.aclared. The bank has been pay.
ling 4 per cent. interest. .> s..r M
| There has been very few Withdrawals
| from other banks OF the two cities up
to the noon hour and there was no
prospect OF a run. although the Saco
banks troubles were not known to
many.
While neither The bank commission
| or nor the bank officials would com
menL on the future of the institution
| beyond saying that time would tell and
| that they decided 10 suspend business
now when they could CLOSE Up" with
out my loss, it is considered extreme
| ly doubtful il the bank ever resumes.
| Treasurer Frank w. Nuttcr made a
| short statement In which he said in
| part: "Thero are between 200 and
$500 Gcrositors. | cannot say how much
| has neCn withdrawn since the closing
| OF the York County Savings Bank
There VIII be no loss to the den0sitors.
The amount Of money withdrawn has
made it necessary TO sell securities. and
they have been sold at q sacrifice ow-
| ing % The condition OF the market
AZ z meeting of the trustees and
bank commissioner ii was mutually
agreed 10 stop as we could wind up
| the affairs at this time without any
loss to the dopositors. We believed we
We're acting in the hest interests Of tho
dencsitors and the community at large
by stopping now when we could close
up without any loss rather .han to
continue and perhaps eventually be
Obliged TO suspend with loss 10 the PEG
PIC Nho have their savings deposited
| there.
"T'lera have been no Irregularities in
any way ana it was just 4 good bust
ness proposition closing at this time
Portland Me. Dec. 1.-THE follow
ing statement was issued today By
State Bank COMMISSIONER W. B. Skel-
ton on the closing Of the Saco Savings
| Bank:
Judge Peabody late Thursday after
noon granted a temporary injunction
against the Saco Savings Bank, re-
straining it from continuing the pros
ecntion OF its business, except the COL
lection of money due t, and ordered q
/ hearing at Saco for Tuesday after
/ noon. Jan. 8, 1911 This action was TAX
/ on on uetirion DraSented ny Rank