Daily Kennebec journal., 1914-02-27

source $blb,SIU9S.
In his report Commissioner Smith
says:
Trust Companies.
THE changes for the year among
the trust companies all occurred dur
ing the term of my predecessor.
THE Pittsfield Trust Company of
Pittsfield and it's two brances at Jones'
port and Corinna, was closed May 27,
1918, by order of the court, and re-
ceiver appointed.
THE Peoples Trust Company of
Pennington completed its liquidation
without loss to the depositors
The Lincoln Trust Company of
Lincoln. on April 16, 1913, the Mousam
River Trust Company of Sanford, on
Jan. 16, 1913, and Old Town Trust
Company of Old Town on March IL.
1913, were each granted certificates of
organization by Mr.. Dunton, and their
reports, for the part of their first
year, appear among the trust company
reports.
Loan and Building Associations.
THE number of these associations
is the same as last year. but two
changes were made. The Mechanics
Loan and Building Association of
Portland, in June, 1918, paid all bills
of the association, it's office furniture
was sold, the loss on the real estate
was assessed to the stockholders, and
checks We're mailed for the balance in
final settlement of all accounts. The
loss to the share holders was very
slight.
THE Central Maine Loan and
Building Association of Lewiston be-
gan business January Z, 1913.
These associations are a powerful
incentive to thrift, are great home
builders, and the total accumulated
capital of all the companies in the
United States was over s1,f2o,000.0o
last year.
National Banks.
THE national banking system, in
the matter of reserves, circulation and
Investments, is undergoing re-or-
ganization and whether We believe in
the fundamentals of the new law, and
do not approve of some of the minor
provisions, or whatever our attitude
of mind may be, we must Loyalty help
the men who must guide, and guard
our section in the field of national
banking At the same time our State
banks, with total assets of Sl72, ,700,-
10000 must be thought Of and pro-
tected Our mutual savings banks
are New England institution and
they exist mainly in the northeastern
states. The South and West do not
have them, and have no interest in
them Hence, in the new currency
bill no place was made for them, and
no provision was made in any way TO
protect our loan and building associa-
ions.
There was an opportunity offered
20 the trust companies to enter and
become members of the reserve as
sociafion, and b. so doing come un-
der national supervision and exami-
u3tion. But our trust companies have
aecided to wait and watch the deVel-
4pments, because they can see no ad-
,-antage to their institutions to enter
at this time, end because they feel
that they can do better work Tor
their communities if they are under
the supervision and control of their
own State. From 1t they received
their charters, to ii they pay their
taxes. and in the election and appoint
menf of its officers, they and the peo-
pie whom they serve have direct
voice, rather han TO be under the con-
troll of men Tho have no knowledge OF
the local conditions.
"Cengress very wisely did not put
the mos Objectionable feature. name
". the federal guarantee Of deposits
into the currency bill, but it is still
under consideration by sub-com
mittee of the Banking and Currency
Committee, and may come up again
soon. Not only would this put pre-
MUM on poor banking but its effect on
our State institutions can be seen by
any thinking man.
Verification.
"The coming year. the pass books
of the savings banks and trust com
panies having savings deposits must
be verified by such method and under
such rules as the bank commissioner
may prescribe. The commissioner
will write to each bank, and suggest
to the directors three plans which Will
accomplish the result desired with the
least friction and the best positive
check, also asking them to recommend
to him for approval some person OF
firm of accountants TO do the work.
and an itemized estimate of the cost
to the State, adding that it would be
his preference that the directors hire
some competent accountant or firm to
make a thorough audit of at least the
liability side of their banks and have
the banks pay the balance between the
amount allowed by the auditor or
State and the entire cost, thus getting
a more thorough audit, of the liability
side of these banks then this depart
ment can accomplish without many
t;y,oe mora funds