The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1916-08-17

that the banks investments be made &C
cording to law II he law was wrong he
should take that matter up with the Leg
islature but that | believed It was very
wise provision in the law which prohibited
directors of a bank rom borrowing from
the bank, or becoming Indebted to the
hank In such amounts and under such
circumstances as prevailed in that bank.
Later, & very serious Weakness developed
in one line Of out q State loans guaran-
teed by two directors. and MIR. McFar-
land frankly stated that the loans
would not have been made u senator
Page had not paid the directors
a commission to guarantee them.
MIR, Mcfarland secured the bank
against possible loss on these loans
After several hours discussion Senator
Page finally said that he would comply
with my request and that | should have
no further cause for criticism, although
he believed ! was wrong in my position.
From the first criticism which | made
Of the policies OF the bank up to the
present time, Mr. Mcfarland has al
ways agreed that | was right in my po-
sition that the policy OF the bank had
been wrong, and that he was very glad
! was insisting in q change and would
cooperate with me In every way possi-
Bile to improve conditions and eliminate
all bad practices, which he has faith
fully done to the present time.
BANK STOCK TRANSFERRED.
I'm the summer OF 1918 discovered that
several State banks had apparently pur-
chased in March, stock OF other banks and
national banks held by officers Of those
banks, and that shortly after April /. .
part OF such stock was ro-transforred to
its former owners at the same price at
which II had been purchased. ] Inquired
into the matter and discovsred that
Senator Page had transferred . large
amount of stock owned By him In Va
rious banks TO various other hanks
shortly before the nrst Of April asa
Had received an agreement from the
banks to which such stock was trans
feFred that II would be returned to
hin on demand At the price Of transfer.
and the same transsctisn hsd taken
place betwses various banks AID the
various smcers and steckAslSers In
other banks. was convinced, ~ the
result Of ny Investigation. that tAsss
transactions were solely for the pur-
pose of evadins the payment Of local
taxes on such bank stock. and i no
tined all such banks thst ] did not
think a bank chartered by the State
should allow itself to be used for
the purpose Of evasion Of taxes, and rec
commended that al once they require the
seller to rspurchase the stock or release
the bank from It's agreement to Resell.
and sent a circular TO all the State banks
calling their attention to the situation and
making similar recommendation
found one bank which kept such stock.
and was advised that the agreement had
been returned to Senator Page and the
bank owned the stock, about $4,000.
At my last examination of that bnnk !
discovered that the baak had paid SEN
stor Page the difsreaee between the
dividends received on the stock and
I'VE per cent. interest on the amount
at which the stock was purchased. and
an examination disclosed that the nd
tustment which ! supposed had been
made wns not really made and that
senator Page rtiii owned the bank
stock although IL hnd been held by the
bank during NIL that timet had paid no
local taxes, only paying the State tax.
Immediately notified tho officers OF that
bank that that condition must not con
tinue. that the bank must either
absolutely purchase that stock free
From any ownership. control or
interes, in It by Senator Page,
or return IL 10 him. and that the only
way IN which such a transaction could
lawfully appear vas by the bank loaninS
the money 20 Senator Page and taking
the stock AZ collateral The stock was re-
turned 10 Senator Page Sometime last
FLETCHER sen