The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1916-08-11

and sent circular to all the state
banks calling their attention to the sit
uatlon and making a similar recommen-
datlon. | found one bank which kept
such stock, and was advised that th2
agreement had been returned to Sena-
tor Page and the bank owned the stock,
about $4,000 At my last examination
OF that bank | discovered that the
bank had paid Senator Page the differ
ence between the dividends received
on the stock and per cent interest on
the amount at which the stock was pur-
chased, and an examination disclosed
that the adjustment which | supposed
had been made was not really made
and that Senator Page still owned the
bank stock although it had been held
by the bank during all that time; had
pald no local taxes, only paying the
state tax. | Immediately notified the
officers of that bank that that condition
must not continue; that the bank must
either absolutely purchase that stock
Tree from any ownership, control or in
terest IN 1t by Senator Page, or return
1t to him, and that the only way in
which such transaction could lawfully
appear was by the bank loaning the
money to Senator Page and taking the
stock as collateral. The stock was re-
turned to Senator Page. Sometime last
fall my attention was called to an ad-
Vertsement by the LamOIlle Comfy
Savings Bank and Trust company which
l thought was very misleading, and in
correctly stated the condition Of the
bank. / called the attention Of the
bank and Senator Page to the matter,
and advised him that there were two
statements n the advertisement which
ne must know were not proper. One,
that the bank did not consider loans
bearing more than 6 per cent as safe
conservative loans, and consequently
did not 90 after such loans, ANA the
other, that the bank had no a sets
which were not absolutely good for their
face. Later | was assured by Senator
rage III conference | had with him
that tn" advertising had been turned
over TO Mr.. Culver, the treasurer, who
would have entire charge of It aad that
he, Senator Page, would not interfere
with 1T, and since that time I nave
had no occasion to criticise the adver-
tlsements and 10 aot think there will
be such occasion if MIR. Culver is in
control the matter, as | consider him \
very competent, reliable bank treasur-
| er -
After quoting from numerous letter.
winch he wrote to the bank ald to Sen
ator Page. Commissioner Williams con
cludes as follows
- As = result Of the conferences. LEFT
tiers and rulings Of the bank commits
sloner during the past six wears. the
Lamoille County Savings Bank and
Trust company has abandole,. all the
! r4ctises which have been criticised.
and the only reason it took 50 lone to
accomplish it is the attitude of Senator
Page, and his persistent efforts to de-
wise some way in which the bank
might purchase out-of state loans, and
still advertise in such n way as to lead
| the people to think that all of the bank
| deposits were invested in Vermont or
on Vermont securities.
II have made this statement 50 that
the depositors in our state banks NAV
know the attitude which the bank com
missioner takes towards illegal and i'm
proper practices by the banks over
which he has jurisdiction. -