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

R WILLIAMS EXPOSES SENATOR PAGES BANKING NE

dent Of the Lamonle County Savings
Bank and Trust Company. dated Fehru-
AIRY o. islt / said
Il examined the above bank Feb
ruary H. and find that your liability and
the liability OF Mr. Mcfarland to tho
bank, has not been decreased since my
last examination You will remainder
that In the talk we had something 'ver a
year ago, ! notified you that the liability
Of the officers Of the bank must be re-
duced to the legal limit, namely ten
thousand dollars. as quickly as It could
be done, and find no progress has been
made In that direction q" In talk
Ing with Mr.. Mcfarland about your
plans for Investment, he advised me
that you had decided 10 buy western
mortgages. but that they were TO he
guaranteed h., the lumber company
snd TINT you and Mr.. McFnrIand were
10 guarantee the lumber company.
advised Mr. Mcfarland, and now nd
wise you TINT this cannot be- allowed.
II In only another method Of accom-
piishing the same thing and continu-
ing the same practices which ! have
objected 10 for the past four year.
and which are contrary 10 law. and
she'll expect you to reduce tho
liability Of yourself and see that the
liabilities OF the other directors are re-
duced to the legal limit, just as soon as
II is possible TO do 80 without loss TO
the bank
MEETING IN NEW YORK
AS result Of tins letter Senator
Page asked me to meet him in New York
for conference. replied that | could
see no object OF conference. that tho
matter was perfectly plain, and no ex-
plantations were needed, He insisted up
on conference and paid all my expenses
TO New York and return. After a long
discussion, In which | refused to change
my rulings, he again gracefully yielded
and said, You shall have no further
cause for criticism He reduced his
liability to the bank very soon to the
legal limit, and the other directors also
except where they had guaranteed out
OF state loans, which | refused to have
released until the loans were paid, or
was satisfied they were absolutely good.
october 25, 1915 | wrote Senator Page
as iQlQNs, @-4-Isef .-1lsss'f . l.-ss~s -'-Issr
"Iy attention has been called 10 the
statements In two recent advertise
ments of the LnmoiiIe County savings
Bank and Trust company, In one Of
which II II stated that the bank does
not look for Investments which pay
more than sN per cent. and In the
other u II stated that the bnnk has no
assets which are not absolutely good
for the fnce value. ! have not attempt
tempted to quote either OF these adver-
tisements verbatim. but in the case OF
the first one the Impression IL given
that the bank has no Investments which
pny II more than SIX per cent. md In
the latter one the Impression II given
that the banks Investments have been
NO carefully made that they have de-
yelOped no weaisnesses. Ins.much as
you have ionns which pny you md
One-haif md seven per cent, the first
ndver tisemcnt cannot state the sit
uation correctly. In the cn.e Of tho
other dvertsement although | under
stand from you and Mr.. Mcfarland that
you have the guarantee Of Mr.. knight
and Mr.. Mcfarland on certain loans
which have developed a very substantial
because Of those guarantees the bank
Will make no loss. that you are war
ranted In making the statement In the
advertisement. ] think the only cas-.
IN which bank could make the state
ment properly, would be where the In
vestments had been made with such rare
judgment and discretion that no weak
negs ever develooeI In any OF them. but
where as In your care II II evident that
the officers who had charge Of making
the loans In the bank namely yourself
and Mr. Mcfarland. as | understand II.
made investments which later turned OUT
TO be moor, even though one Of the Off
cerg u the bank guaranteed there should
he no loss ! mink the bank is not war
ranted In conveying 70 the public he I'M
IRE sion that fq officers have teen 20
careful and usej such rood tudanent as
such p" "".,"r'leere.' you'd trdlcate
REASONS ron DrLaY.
"P'egae cons de. th,s INST e. IN tho
rght In witch ! have sta Ell It. and
tbinb vnu viii realize that Won are not
jrsU1ed IN aeking ne pcoo'c NJ the state
of Vermont 10 fee.f your nanh above
all o'te~a ror the reaqors indicated
"T'e as}e' f'r a conference aod % s.,ed
me that 81 g advertising Ter the sna1 at
teen turned over % VI ruiaer re
treasurer ard be would have ra.a.ns
forfhcr 70 90 w. p u a-' eaA re ga
ret tealze ne aae ID. I~r au,t ius lu.-
procer Zoo such advert aa>
M result Of me rrnfarNrra lc'tn-s
and rulings u the hang eonrl'gs.gurr
during the past six ye1rq. fto rou1fi.e