Daily Kennebec journal., 1914-02-27

BOOKS by NUMBER In a newspaper
showing balances of a certain date,
and sending a copy Of the paper to
each depositor.
"Second-Calling in as nearly as
possible all pass books.
Notwithstanding out cards asking de-
positors to fill in balance and amount OF
deposit at the time of last deposit, or ex-
tending these figures of a given date, and
asking the depositor to verify the same
''In any case the person or firm who
verifies must work and have his mail
come independently of the bank and re-
port his results and findings directly to
the bank commissioner, or to the execu-
tive board as they may decide.
"a letter will also be sent to all loan
and building associations asking the d.
rectors to have verification made by
the pass books of their shareholders by
having the individuals sign verihcation
sheets made out for this purpose.
Directors or Executive Board Meet
ings.
During the coming year, even witt
our small force, the department will try
to have two examinations of each bank
as Is done In every state In which the
banking department is active and alive
the object of the second visit being TO &C
over the loans and securities OF the saw
ings banks and trust companies, or loan
and building associations with the execu-
tive board or directors, or trustees. to-
gether with the treasurer, so that the
commissioner. may be sure that the men
on whom the responsibility rests are in
touch with the conditions of their banks
"Blus sky Law.
During the last session of the Legis-
lature,. bill to regulate the sale of se-
curities within the State was passed and
in this department.
BLANKS and explanations were printed
and distributed to dealers In securities
several months before January l, 1914,
upon which date the law became effec-
tive, and the legitimate dealers under
stood and appreciated the fact that Maine
had no wish to interfere with their husi-
ness. One hundred and five dealers and
over 200 statesmen or agents have been
licensed and no friction has resulted SO
fas as this office is Informed.
Private Banking.
Another important law passed by the
last Legislature prohibits. persons, firms
or corporations other than those duly au-
thorized under the laws of this State or
the national banking act, to receive de-
posits except corporation which may
desire to encourage thrift among its em-
ployes.
Under this law the corporations may
file with the bank commissioner COM
plete statement of it's financial condition.
If satisfied that the applying corporation
is solvent and reputable he may issue a
license authorizing it to receive deposits
from its employees only, upon filing with
the treasurer of State its bond payable to
him for the use of its depositors, and Sc
cured by a surety company authorized to
do business in this State in such amount
as the bapk commissioner may specify,
conditioned for the payment of such de-
posits and interest thereon. AS the COM
missioner has insisted that the bond be
large enough to assure the payments OF
all deposits, there is no danger in this
State of a failure of the same character
as that of the Seigel stores, and their dry
goods bank, which occurred recently in
two OF our sister states.
Overdrafts.
The practice of allowing depositors II
trust companies to overdraw their ac
counts has been dealt with firmly by thi:
department during the last six month:
with the satisfactory result that the to-
tai amount of overdrafts is found to have
been reduced from $S5, 549. q in 1912 10 1884,.
$50 rs in 1913.
We have called the attention of the
treasurers, in case of delinquency, to g
part of an opinion of the United States
Supreme Court, which we here reprint:
"A usage to allow customers to over
draw and have their checks and notes
charged up without present funds in the
bank, stripped of all technical disguise
the usage and practice, thus attempted to
be sanctioned. is a usage and practice te
misapply the funds of the bank: and tC
connive at the withdrawal of same, with
out any security, in iavor of certain
privileged persons. Such usage and
practice is surely a manifest departure
from the duty. both of the directors and
cashier. as cannot receive any counte-
nance in court of justice. 1t would not
be supported by any vote of the direc'
tors. however formal; and. therefore
whenever done by the cashier is at his
own peril and upon the responsibility Of
himself and his sureties. 1t is anything
but well and truly executing his duties
as cashier"
In Conclusion.
Upon taking over the duties of com
missioner. l was assisted in many ways
by the full correspondence of my pre-
decessor. the Hon. Robert F. Dunton
who treated me with the utmost consid-
Grafton and courtesy.
The work has increased to such an
extent that Deputy Commissioner Will
liam G. Ellis, who had been with the de-
partment for 10 years, was carrying on
more work than he should have been
called upon to undertake. l had decided
at the earnest solicitation of Mr., Ellis
not to incorporate this paragraph In my
report, but On the night OF December 3fst
after completing his part OF the work foi
the year just closed, he was stricken
by a serious illness from which he died
on January 18th, and L now feel justified
In inserting II and acknowledging here
for my predecessors and myself oul
t,,la for 20; .