Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-02-21

To De SubScriDeu TO start WITH, IN or
der. as | suppose, that the running
expenses may be paid until such time
as such bank may get upon its feet.
In addition to this we have once a
year an examination by the stock
holders of the bank, by the directors.
The law SAYS. Two of the directors.
at least. shall once in each year
thoroughly examine the affairs of the
company, and report under oath to
the bank examiner the standing of
the company, the situation of its
funds, and all other matters which
the examiner requires After that
there is an examination required al
least once a year by the bank ex-
aminer. The law says, He shall
visit each savings bank and insti-
tuition for savings once in each year
and as much oftener as he deems
expedient." He may summons Off
GERS of said corporation and put
them under oath; and after examina-
ton by two of the directors and an
examination by the bank examiner
at least once a year. in accordance
with Chapter 15s of the Public Laws
of 1911. in addition TO the annual
visitation and examination by the
bank examiner in savings banks,
trust companies. etc, the law pro-
yides that there shall be made an
nually a thorough audit of the assets
and liabilities of said institutions
These audits shall be made by an ex-
pert accountant designated by the
bank commissioner, in no way con-
nected with the bank or trust COM
pany.'
Now, in addition to ali these ex-
aminations, as | have said the stock
holders liability is equal to the CAPT
tai stock, that is, it is double the
amount of the capital stock including
the stock itself In addition to that
there is a guarantee fund provided
that there shall be set apart, | think.
from the net profits of 10 per cent
each year, until such amount shall
equal % per cent of the capital stock
There is that provision. In addition
tn that, the bank must keep on hand
in United States notes or bank notes.
or must keep on hand in some bank
due ii or invested in certain securi-
ties which are specified in the bank
ing laws of the State of Maine an
amount equal to % per cent of it's
deposit. In addition to that, it must
have invested in certain securities
that are named by the banking law
Of the State of Maine an amount
equivalent to the sum that is de-
posted in the savings department.
Now, if any gentleman in this
House can propose any way that the
banking business can be made more
cot 70 hn Aat ~
ulations, / have no objection to raise
against that measure. / believe, 'af-
ter having complied once with the
laws of the State to the formation of
trust companies and as to running
them, that the banking business
should be just as open to every citi-
zen of this State as is the grocery
business, or the practice of medicine.
or anything else.
I think that Is sufficient upon that
point. There are one or two more
things | wish to mention in regard to
the hearing before the committee.
One of them, as he stated, repre-
sented the executive committee of the
Maine Banking Association. There
were no depositors represented there,
executing myself, who was very
small one, at least there were none
present who had anything to say, and
neither was the bank commissioner
present nor his deputy to make any
argument against this bill. But it
was a curious fact that three bank
efs should be so much interested i'll
State. ] have noticed that every time
there is anything comes up here that
Sa1 lf1 10 IL
that there are certain individuals APP
pear here if it has anything to do
with banks, the protection of the peo-
pie in that line, and if there is any
reduction of hours of labor
the mill people will all be here, and
If there is a public utilities bill i'm
Ger consideration then all the attor-
news of all the public corporations
in the State are here, looking after
the interests of the people; and those
things follow right straight through.
Now, / want to say one thing fur
ther. Although two of those companies
that were represented there are nos
existing in violation of law because
they held charters previous to the time
this law was enacted. two OF those
that were represented there
arc doing business on a smaller capt.
ital stock than any five or 10 men in
this House can go into business with
in this same town now; but it makes
a good deal of difference, gentlemen.
whether you are on the inside looking
out, or on the outside looking in. One
gentleman came there from a certain
town, and he said there We're banks,
enough in his town and he didn't think
it was necessary to take off any of the
restrictions on that account. But what
do you suppose any grocer would have
said Il he came to that town? Don't
you suppose she would have said there
were enough grocers there? But by the
mere fact that banker Says there are
enough banks in his town, are we go
ing to put it in the hands of some in
diyidual in this State House to say
whether they shall have any more or
49,
One esptleman appearing before the
committee had the termerity to ad-
vance the proposition that a bank had
been established in certain town at
the solicitation of the inha bitants
thereof and he said they had worked
up little business and were en- their