Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-03-16
STATE HOUSE
COIn'r Smith Classification
OF Bank Officials
To Law Requiring Annual Ex-
animation otSavlngs Deposits
Governor Kaines Announces a List
OF hominations..0ther Matters
STATE HOUSE cAiLNDAR.
Regular Meeting Of Governor and
Council VIII Be Held at 10 A. NJ.
Wednesday, March IS.

The Legislature of 1911 passed law
under the title of Annual Examina-
tons and Notifications of Savings De-
posits" providing that during that
year and every third year thereafter
every savings bank and institution for
savings and every trust and banking
company maintaining a savings de-
partment, shall cause the books of the
savings depositors to be verified by
such method and under such rules as
the bank commissioner shall pre-
scribe. The treasurer of every bank
or institution for savings and trust
and banking companies making such
verification shall submit proof to the
State auditor and such expense shall
be paid by the State from taxes paid
by savings banks and trust companies
not appropriated for the use of schools.
Harry NJ. Smith of Bangor. State
9ank commissioner. is sending out
circulars to the officers, trustees and
directors of savings banks and trust
companies maintaining savings de-
partment calling their attention to the
law
Commissioner Smith states that
calling in pass books can best be done
when the officials of the bank wish
and can afford to employ an account
ant or auditing company TO make
thorough audit of the years work. In
case a bank should choose this meth
cd, the treasurer shall make an esti-
mate of the cost of this work, that is,
u definite amount to cover the cost to
the State, and the treasurer shall work
q fair adjustment of the States part of
the expenses after the work is done
with the State auditor, on the basis
of estimate made. The audit com
pany shall report to the bank COM
missioner the errors. found, or to the
directors first if they SO decide.
Commissioner Smith suggests that
the directors or executive board shall
employ some competent person not
otherwise connected with the bank to
balance the individual ledger and mail
to each depositor, if the address is
known or can be ascertained with a
reasonable expenditure Of time, card
showing the name, the present adj
dress. date of last credit deposit or
dividend), amount of last credit ode
post or dividend), date of last with
drawal amount of last withdrawal AND
the amount of balance shown by the
deposit book or q similar card in
blank with request that the depositors
fill in the details, together with let
ter of explanation OF methods and gen
eral scope of the vertification.
Commission Smiths Statement.
Harry NJ. Smith of Bangor, the State
bank commissioner. Saturday made
the following statement on the mat
ter:
THE 3Si,25 persons who own saw
ings bank books showing the amounts
of their deposits in savings banks and
savings deposits in trust companies of
Maine will be given the opportunity
to help the bank commissioner check
up and verify the amounts that the
banks owe each person.
These hundreds of thousands of
accounts represent s125, 625, 513, and it
is a physical iRpossibility for the two
men have all they can do to keep up
with their other work to call in these
poss-books and verify the figures.
Three years ago a law was passed
whereby this work should be done ev-
cry three years, at the States ex-
pense, by persons regularly employed
by the banks, under the direction of
the bank commissioner.
"As it was done in 1911 it must be
done in 1914. The State viii spend
from 100000 to $4,000, perhaps
more. TO do this work but the cost will
not be regarded If the results obtain
ed show actual results or a positive
check. This can only be brought
about by every one helping. So when
the proper notice is received or no.
tice is given in the local paper let ev-
cry one comply with the requirements.
Your treasurer is just as anxious to
show large percentage of books
checked by the accountant employed
for his bank as he is for the accuracy
of any other department of his bank.
So it is no expression of lack of con-
fidence in him, but rather shows your
confidence If you follow the instruc-
tions explicitly This work will prob
ably extend through the summer
months and must be completed by the
rcf -