New Britain herald., 1915-08-25
NATIONAL BANK MAY
 SEEK NEW CHARTER
Directors Believe It Should Be-
 come a Trust Company
STOCKHOLDERS TO ACT
Man Who Is Alleged to Have Out witted Policeman Will Be Given Hearing TomOrrOW--LevOn Harris May Go to Soldiers Home.

Is there demand for a trust com pany in Plainville? This important question has been asked and answered in the affirmative by the. directors of the First National bank of this town and they have decided to put the matter up to the stockholders with a strong recommendation for the necessary change in charter. The matter was acted upon at meeting of the bank directors last Friday night and it was voted to cOmmuni- cate the decision at once to the stock holders, explaining the vital reasons for the proposed change and asking them to attend special bank meet ing September A. when the question will be voted on.
 The local bank has done Splen- did business since it was instituted in 1908 Both the commercial and sav- ings departments met with ready pa tTOnage and each year has seen mater ial progress with many new depositors Today the bank has over 2,2OO de- positors and enjoys the outmost con- fdence of Plainville people.
 But withal, the bank officials have found that the limited powers of National bank charter prevent the in- stitution from serving the financial needs of the town to the fullest. Ere quently the bank officials are ap preached with regard to mortgage loans People who seek to borrow money for such legitimate investments as homes, blocks and business build ings have to be refused and advised to seek financial help in neighboring towns. And all this in face of the fact that the local bank has plenty of funds constantly accruing from it's saving depositors. Had the bank @ trust charter the problem would be solved and the banks funds could be invested right at home in Plain vile where the m oney is produced.
 Such a charter would also give the local bank power to act as eXecutor of estates and as guardian and trus- tee of property or money left in trust. None of these desirable things can be done under the present national bank charter and the pro-. position in brief calls for it's relin- gulShment in favor of a trust charter
 me ofhclal letter to the stock holders, explaining the matter in de- tail follows:
 ITO the Stockholders of the First
 National Bank:
 
 insistent demand for banking facili- ties in the Town of Plainville, beyond that granted under a national bank charter.
 "The principal demands are for W orthy legitimate loans on homes, real estate and buildings; there has been some small demand for the in stitution to act as eXecutor or trustee of estates, and execute trust, fiduciary or otherwise but owing to the restric- tions placed upon us by the Federal banking charter we have not been permitted to make loans of this nature CT execute deeds of trust.
 "When the new federal reserve banking act went into effect, it sanc- toned loans on real estate inasmuch as the act provides for national bank ing institutions to loan on farm prop erty; this does not fully cover our par ticular needs because of the fact that village property can not be classed as farm loans. The act did provide how ever for trust companies and state banking institutions to become mem bers of the system giving every ad- vantage national bank may enjoy and without restrictions as to their present privileges under charter of the state.
 "The First National was incorpor- ated in 1908, and has exercised every banking privilege under it's charter has served the community we'll as a national bank Both it's commercial and savings departm have shown an increase each year which is an in- dication of the growth and demands of the home people, and to meet this growth, it would seem desirable that the national bank change it's charter to that of a trust company that it may better accommodate local applicants for loans on their homes and to do such other business as can be done by a trust company.
 within the last year and a half l there have been ten new trust com panies formed in the state: one or two | national banks have relinquished their charters and become trust companies CT merged into trust companies. This l shows an economic growing demand | for institutions over that of our pres l ent national charter and with this on | the part of the directors to serve the 1 community more efficiently and | tconimically, it is unanimously recom- l mended that the present charter be l relinquished and trust company | charter be secured instead.
 Acting on this recommendation, l you will find enclosed a proxy which l you are requested to fill out and re- turn if you canot attend the meeting 1 in person.
 You will also find copy of resolu- l tion passed by the board of directors ] to be acted upon at a special meeting | called for that purpose.
 Respectfully,