Norwich bulletin., 1913-04-18
WORKING TO STRAIGHTEN
 OUT BANK CONDITIONS

w V . 7Ai0f1 FIN OUT BANK CONDITIONS National Bank Examiner in Charge at the First-Assurances About the Trust Co.
 Thursday was busy day at both the First National bank and at the Thames Loan X Trust company in getting the
 bank affairs into shape after the clos Ing of the doors on Wednesday,
 At the First National bank, National Bank Examiner N. s. Bean of Man chester, N. H.. was at work with his assistant, $. J. McKean. Thursday not in a position to make any state ment about the banks affairs, but that he was proceeding as fast as pos Slole to make up a report which would be forwarded to the comptroller at Washington. He was desirous of hav- ing all depositors bring in their pass books to be written up as that would greatly facilitate making up his re- port.
 President Franklin s. Jerome of the bank arrived during Thursday evening from New York and spent part of the evening at the bank. When asked if
 he had any statement to make, he said that there was nothing he cared to say
 on the situation at present.
 At the Thames Loan and Trust
 company the doors were opened this
 morning and those desiring to settle
 loans make payments of interest
 were allowed to do so, but far as
 banking business was concerned
 there was none. No bank deposits of
 the commercial or savings depart
 ments were received or was any money
 paid out.
 At the bank Officer John Donovan,
 a supernumerary policeman. occupied
 position inside the door to maintain
 order, but there was no disturbance.
 {'JJSfnn1oTC nt haT-C n xxviG n
 enter the bank did so and any ques-
 tions asked were answered by the bank
 officials.
 Bank Commissioner F. P. Holt work
 ed on an inventory of the assets and
 stated after this had been completed that he was thoroughly satisfied the depositors would receive every dollar of their money. Allowing for scaling of assets caused by having to dispose of some securities at market value, rather than book value, it showed ann pie protection for the depositors. The restraining order was obtained in order to conserve the interests of all. Since the state banking department had been established, he said that no trust com pany which had got into difficulties had failed to pay it's depositofs in full. The first move of the bank examiners will be to secure an exact statement of the banks liabilities and assets at the present time. As soon as this is obtained the examiners will supervise the conversion of the assets into cash and it is probable that when the re- straining order expires, a new order will be asked to permit the paying of the depOsitors in as large amount as possible at the time, and resume bus mess. The company holds a little New York, New Haven and Hartford Rail- road company stock which, at the present time, is depreciated in value, and some of it's other assets, quoted at $95,00 would not bring anywhere near tta9 iT1 ha arlyo A l lowing for this deprecia tion, however, MT Holt says there are still enough assets to pay the depositors in full. Regarding the stockholders, MT. Holt was not so optimistic. but he said that the company probably would be able to keep it's charter, through a reor- ganization.
 Regarding the security for savings depositors in the trust company. State Bank Commissioner Norris s. Lippitt stated during the day that the saw ings depositors were secured by spe- cial investments under provisions of the law of 1907. which required say iEgs departments of trust companies tc take same precautions as savings banks in protecting their depositors.
 The law passed a [ that time required all trust companies with savings de- partments to invest in state IegaIs as they are termed. that is to say securi- ties that the state officials approve of, and nothing else. These depositors
 
 he could not see why every one of the savings depositors should not receive every cent of their deposits. The trust com panies were given five years at the time of the passage of the law in 1907 to change their securities over to state legals. One-ffth of their securities was changed over each year. and in October last year each trust company had to show all state legal securities.
 In the commercial department of the Thames Loan and Trust company the depositors are secured by the cap ta1. surplus and undivided profits, ] which amount to $100,00 ca pital stock, !! $50. .0QO surplus and $56,937.59 undI- i vided profits. less current expensesti and taxes paid. 1She general deposits i r. this department amount to s522,- | 1s3.01 I
 The restraining order will remain in i force uptil the bank finds itself in 1 shape to reopen. which may not be for ! some time. No plans for reopening 1 nave been discussed as vet and 1t Is | -robable that a meeting of the trustees | will not be called until next week. 1 Five days are legally required to call | meeting unless all waive the legality | 'f the matter Treasurer Robert w. | Perkins is in charge of the bank and | will continue in charge