Norwich bulletin., 1913-12-30

Attoreny Charles E. Searls and Judge W. F. Henney of Hartford, counsel for the institution and the officials there of This conference and meeting of the trustees followed a meeting of the bank commissioners and the counsel for the bank and Treasurer TOurtelot- te Saturday. Such action as was taken following the conference was wholly unexpected, but it was received with
 surprising calm when announced. This passive condition is due in great measure to the fact that the bank s troubles are not due to mismanageme-
 ment of funds or to any other cause
 creating a loss than a market depres-
 sion for which the banks officials can
 not be held responsible.
 Value of Bonds Has Shrunk.
 Treasurer Tourtelotte, in reviewing a list of the banks securities said Mon
 day afternoon that the institution
 holds no real estate on foreclosure and
 owns no bank stocks or other stocks. It's big proportion of assets are in bonds and the market value of these | has shrunken.
 Statement of Banks Condition. The following is a statement of the banks condition up to the close of bus mess Saturday, December, 27 1913:
 Liabilities; Deposits, $2,745.84; sur plus $105,000; interest, $35,S61.48; profit and loss, $9,311.24; total $2,895,- 468.56..
 Resources; Mortgage loans and town and city orders and collateral loans, S393.445; bonds, $2,455 000;; cash in banks and on hand, $46, ,101, 46; eX- | penses; $92L1O; total $2,S95, ,46S.56.
 Bonds Nearly $2,5ooo0o. Bonds held by the bank represent
 nearly two and one-half millions of dollars Of this amount $2.105,000 is in railroad bonds and it is in these secur- ities that the great shrinkage has oc- cured, practically Wiping out as be- tween the book value and the pres ent market value, the banks surplus of S105, 900. The bank officials hold, however that the value of these hlgh grade securities will again advance to normal level and restore the sur plus but the bank commissioners be- lieved it advisable to issue a restrain ing order on account of the price level to which the banks bond holdings have dropped. It is a fact, neverthe- | less that, while the market value of the bonds has shrunk, the income from these securities is not impaired and is the same now as when the bonds
 were worth a $100,000 more in market.
 Town and City Bonds.
 Of town and city bonds in this Vicin- ity the bank holds the following: Town of Putnam, 101,6O0; town of Thompson, $6.5O0; town of Woodstock, S9,825; city of Putnam, $5,000
 Railroad Bonds.
 Atlantic Coast line, $1OOO00; N. Y, N. H. and H, $200,000 Buffalo and
 Susouehanna. S70,O00; Chicago and
 Alton. $1O0.000; c. B. and O., $200,00; Chicago and Eastern Illinois, $35,000; Chic and Indiana Coal, 100000; Chi cago Milwaukee, and St. Paul, group S26O, 900; Illinois Central, (group) $160.OO0 Louisville and Nashville, $100, ,O0O Paducah and Memphis S60,- OOO; Minn. and St Paul, $l00,000; Min eraI Range $10,000 Montana Extension S10O.000; Montana Central $100,000; Sioux City and Pacific, $50000; St. Louis Iron Mountain and Southern River and Gulf, $150,000; St. Paul. Minn, and Man, s75,000; Terminal As sociation of St, Louis, $100,000; Ter re Haute and Indiana, $25,000; total &. 09B, coo These figures are as giv en in the state bank report for 1912 and for par values.
 Has 7291 Depositors.
 The banks depositors number 7291, and they are representative of about every town, city, village and hamlet and all the farming communities in this section of the state. Many of them ] C. tying up of their funds is only partial, in a way for the bank commissioners have notified bank of the amount that 1t seems warranted in loaning on the pass books of the local institution. 1 It is believed that any bank will honor the books up to 80 per cent, of the amount they call for with such in terest charges as may be arranged, so that those who need money will be able to get it.
 Has Assets of High Grade. Following the notice of the closing of the bank the following statement
 was given out:
 The bank has assets that are high grade, and a large amount represented by railroad and municipal bonds, all paying the regular rate of interest. Due to the exigencies of the time and the shrinkage in market value of all bonds and recognizing such shrink age and applying the same to the as- sets of the bank, the bank comInis sioners found that there is a temper ary impairment of the banks condition. The representative of the bank said that the commissioners felt that it would be unfair to allow the funds of these who have given notice to with