Putnam patriot., 1913-09-26
Nindham Counly salings Bank cae

NiHdham County Savings Bank Cas-
 Continued from page one
 sndia surplus account started. This had been done and the surplus account was put in at S14,5l5. II had been carried at that ngure buT subsequently,
 was reduced to sI4,g William P Lander, a clerk in the office of the bans commissioner, testified to the market value Of the stocks and bonds held by the bank at the time the surplus ac- count was opened showing that the market value was only s3,730 above par instead Of the s14,5l5 as shown by the bank $ books.
 President John M Paine was tbe next witness. He said he had been : -3rfesident for ten years and director for ten years previous 10 becoming president His duties were varied but had mostly to do with placing real es- tate loans. Many Of these loans were nade through Robert |. Walker & Cor Of Providence where his son WAS clerk. His son resigned since the bank was closed He did not remember ever having read the bank charter. He did not know that the charter con tained a clause that DO member Of the bank should be hirer or borrower nor clause that no president, vice presi- dent, or trustee shall be entitled to re- ceive any mpensation for his services. Had knowledge Of dividends declared as it was discussed at meetings but the matter whether or not the bank had sufficient funds to meet the dividend had never been discussed. lie did not know who was benefited by the loan Of f26, ,000 made to Clerk Stark weather and did not know that he WAS minor
 Court adjourned while he WAS testi- flying. After the noon recess the court room was cleared and the judge, coun- gel for both sides, and the bank com. missioners, went into conference with the prospects of an agreement being reached
 Agreement Reached
 An agreement was reached The agreement as given out by Bank Com missioner Holt sets forth that the bank shall be allowed Co open for business Oct 9lh and pay 10 percent 10 dep0si- tors RI that time ard 10 percent every three months thereafter until further notice with the understanding that an entirely new set Of officials, directors and ineefporatefs be chosen subject to the approval Of the court and the bank commissioners. This resulted in say ing the bank to Dnnielson and is be- lieved satisfactory solution Of the difficulty.
 On Friday, in compliance with the agreement entered into, there is to be a last meeting of the officers and direct ofs of the bank as now organized. Some few of the directors, some recent Iy elected, will remain on the board.
 Near the close of the conference in court here Tuesday afternoon il was announced that Frederick A. Jacobs, one of the most prominent citizens of Danielson, has been agreed upon for president under the organization to be effected. Mir. Jacobs was last month elected director oi the bank and sub sequently it's vice president His elec- tion to the presidency k certain to in. spiIe the desired confidence Of the pulp he in the bank.
 Bank Commissioned Holt said he had in mind an experienced and able bank man for the place of treasurer to succeed Earl NJ. Young, but until he had conference with the man was not wil ing that his name be used for publication. A list of the corporators and directors agreed upon has been compiled, but Is being withheld until the resignations that have been agreed upon have been received.