Putnam patriot., 1913-09-26

the Windham County Savings Bank of Danielson was begun before Judge Marcus II. Holeemb in the Superior court In this city Monday. The case has attracted widespread interest in Mindhsm county. August 9th, 1912, the bank was enjoined from doing business and the injunction has been extended from time to time. The state bank commissioners now seek te have receiver appointed alleging in substance that the bank has made false reports, paid unearned dividends used it's funds for speculative purposes and Illegal investments through loans te It's officials aud that the public is ir danger of being defrauded. The de' fendants plea Is in effect a general de i nial.
 Plaintiffs are represented by Attor' neys Ralph D, Wells and Stewart N, Dunning of Hartford. The defendant is represented by Judge William F, Henney of Hartford, States Attorney Charles E. Searls Of Putnam and Judge i Harry E. Back of Danielson.
 Earle M Young, 2l, who has been treasurer of the bank since his father retired last May, was on the stand all day with the exception of few min utes. Ills father is unable to attend and it Is understood is in the Middle la.
 The various books of the bank were offered as exhibits and Young explain ed the system of bookkeeping. A day book and cash book were used as books of original entry and accounts from time to time transferred from these to the general and individual ledgers. The record of mortgage notes held were kept in a small paper covered book and the history of these notes could only be found by going through the cash or day book. When these papereovered books are filed and new enc Is made they are des- tfoyed so that there is no means of finding out the history of the notes these destroyed books contained. The book in present use was started by witness some four or five years ago when he was clerk
 The amount of deposit today Is ss5i,- 44T3s. The bank holds four tracts of real estate in New Haven which came into its possession by foreclosure of mortgages. The general ledger shows that these tracts are worth collectively ST9,0l4,5l. Witness saia that the bank officials value the property al s26,360. The book value is the amount given 10 the bank commissioners in the reports of the bank. Witness admitted that the surplus and interest accounts would have to be greatly reduced if the real estate valuations were put in at the appraised value. A list of the banks assets and statements of reports to the bank commissioners were laid in as exhibits.
 The bank has loans on real estate amounting to S464 ,6S5 which repre- sents the face value in all but one in- stance which Is small mortgage Of S250 for which Sl0 Is considered fair value. This is a small piece of proper | ty in Pomfret Landing.
 | The witness was withdrawn for a | few moments while Charles J Ander- son was put on and qualified as an ex- pert on property values in New Ha- ven. He valued the banks holdings l in that city at 0,564.75. Asked by defendants counsel if he was told that the bank had sold one piece of proper ty and had hat offers for others con. siderable in excess of the value he stated if he would change his opinion He said he would not and he should think they would accept the offers. Treasurer Young resumed the stand i The matter of loans to bank officials directly and indirectly was then gone into and continued for the remainder of the day. It was shown that loan had been made to Mary r. Perkins, wife of James Perkins, director. g ,000 had been paid on the loan by her husband since Sept. sth last. Loans ! had also been made to Fanny G. Paine, wife of John A. Paine, an of- flciaI of the bank, now it's president. | The bank considers its bank building worth $500. A list of the bank 1 holdings was then given. Attorney l Wells stated that there was no claim that there were any illegal invest ments. Premium account is Sl4,OOU. | This shows cost above the book value 1 which is within s2s0 Of par value so 1 that the sl4,00O in the report repre- sents but s260. Bank stocks according to book value are s, 400 but the bank considers their actual value Sl0,b9V. The present assets of the bank are sss2, 295. 9 without including premium account. includes accrued interest and all income up 10 date. Interest on mortgage loans average lb percent. Have one joan only 1 i-2 percent. The matter of transaction and mortgage to Charles b. Chase some years ago was gone into. Judge Hen- I ney asked if they were trying to show i that in the dim vistas of the past the