The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1916-08-17
"As to the first three charges
| must answer in the affirmative.

AS to the fourth charge ! dscov-
cred the illegal acts; the misleading
advertisements: the use of banks to
evade taxation; that four of the direc-
tors. Including Senator Page. had In
CURED liabilities to the bank very
largely in excess OF the legal limit,
which is 10000 and ] acted u each
case promptly after complete informa-
ton, and caused all such practices to
be abandoned after good deal OF
effort and / will state fully and frankly
the facts with relation to all these
matters, as they have existed during
ny term q Office, and as they exist at
the present Time. N@srIsssesa"
y found that the Lamoille County
Savings Bank and Trust company had
been investing In real estate mortgages
outside Vermont for several years, the
amount at that time being something
over one.qusrter Of a million Of dollars
and was advertising under the slogan
"All in Vermont" took up the matter
with Senator Page the president Of the
bank and II. NJ. Mcfarland. the vice.
president and advised them that the
advertisement, In my judgment. was
~
pie OF Vermont to believe that the bank
did not invest In out of State mort
cages as many other banks were doing.
but that 1t invested all of its funds In
Vermont sscertained that two Of
the directors Of the bank had Guaran-
teed the amount of these out Of state
loans under an arrangement with srn-
utor Page by which he paid them from
his own pocket . omIi..ssiOn for their
guarantee, and he insisted that II was
a perfectly proper thing to do: that II
made the loans Vermont loans. and that
the bank had a right under those cir
cumstances TO advertise that all Its In
yestments were made in Vermont either
upon real estate loans or with two good
Vermont names. ] Insisted that under
the law the directors had no ri&ht -
guarantee such loans In such amsunts,
and that the pvsctice must he stoppsA.
both as to guaranteeing the loans by
the directors. and as TO the form OF the
banks Advertisements; that the other
directors whose Indebtedness was ex-
cessive must reduce IL to the legal limit,
and was assured that ! should have no
cause for criticism in those matters In
the future.
MIR. sENTER's CRITICISM.
Some two years later / noticed adver-
tisements Of similar character, answering
John senter's criticisms. and called the
attention of Senator Page and Mr.. Me-
Farland 10 the asreemen made two years
before which thought had not been hon
estly kept I also discovered that the
bank at the request Of Senator Page,
was about to invest further in out of
State mortgages and he had asked tho
treasurer TO accept the Endorsement upon
such mortgages OF a local corporation in
which Senator Page and other officers Of
the bank were largely interested. OBJ
tected to this and wrote a letter to Soma
tor Page stating my objections He call
Cd for a conference upon the matter and
/ met him and Mr.. Mcfarland and spent
day with them going over the matter
fully Senator Page insisted that their
practices we're fight and ought TO be al
lowed. and that the position which took
was preventing the bank from getting
additional security. took the position
that the only rixAt and proper thing for
the bank 10 do ~aa to observe the Law
which governed In such m tiers. and IN ss
IL wss eAd policy In any event for the
bank TO make on, Of State investments
which they wsr. not fully satisfed wers
absolutely sound and Hafe, and that whsn
he Induced his directors to GUARANTEES out
of state loans, paying them for the guar
Anfee, ne was Offering an intueernent 20
accept loans in which the bank might no,
otherwise invest. and that should insist
THE, ALLEN 4