The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1916-08-10
PAGE VIOLATED
VI. BANKING LAWS
Says Bank Commissioner i'm
Reply to Questions
of Newspapers
BANK ADVERTISE
MENTS MISLEADING

at1on-Necessary Reforms Were De-
layed Because of His Effort to Fool
Depositors.
NEWPORT, August 10.-In a state
ment issued by Bank Commissioner
Frank G. Williams made public last
night, the veiled charges against Sen
ator Pages bank are dragged ruth
lessly into the open and every allega-
tion made is not only substantiated
but the record of six years of misrep-
Presentation, evasion of taxes and VIC
lation of state law is set forth in cir.
cumstantial detail.
To the questions asked by The Re
former and other newspapers regard
| ing the conduct of the bank the bank
commissioner answers in the affirma-
tive. He fixes the date of the mis-
leading advertising as late as 1912 and
declares that the evasion of taxes has
not only continued for six years but
that at the time of his latest exami-
nation a certain bank was still being
used by Senator Page to avoid local
taxation.
In regard to "all loans in Vermont 3"
advertising Mr.. Williams recites the
history of repeated violation of the
letter and spirit of his instructions and
shows conelusively that the advertis-
ing continued after Senator Page went
to Washington.
! The guarantee of loans made outside
the state by the Page bank by two of
its directors in amounts contrary to
law is also related in detail, as also is
the proposition to remove the guar
antee still further by using Senator
Page 5 lumber company as an indorser.
Although the spirit of the revelation
is precise and formal there is evidenced
a certain feeling of evaporation due
apparently to years of correspondence
and many interviews with Senator
Page, all insisting on the observance of
state law regardless of the wishes of
the senator.
Mr.. Williams states that the bank is
fully solvent, that the interests of
the depositors have been fully pro
tected and that the practices com
: planned of have been abandoned. In
connection with this, however, is the
unqualified statement that at the time
of his recent examination he found that
evasion of local taxation was still be.
ing successfully accomplished.
In explanation of the long period re
Iquired to accomplish the necessary re
forms in the Page bank Commissioner
Williams says:
1.-THE only reason it took so long tC
accomplish it is the attitude of Sen
ator Page and his persistent effort tt
r devise some way in which the banI
might purchase out-of state loans an(
still advertise in such a way as Il
lead the people to think all the bank ::
deposits were invested in Vermont o
on Vermont securities.
Bank Commissioner Williams says
Summing up the charges which hav,
, been made which reflect upon the ad
ministration of the banking depart
l ment of Vermont:
First, it is charged that Senate
Page transferred bank stock which h
owned to avoid taxation; second, it i
charged that the Lamoille County Saw
which Senator Page is president, Is
/ sued misleading advertisements wit
y relation to the manner in which tn
money of its depositors was invested
Third, it is charged that some director
tof the bank indorsed or guarantee
out of state loans by the bank in a
amount very much larger than the laa
II allows; Fourth it is charged that tn
bank commissioner must have know
Il of these practices, and if he did nc
# correct them, failed in his duty as a
L officer of the state.
" AS to the first three charges
must answer in the affirmative.
GAS to the fourth charge, | diseo'
cred the Illegal acts; the misleadin
L. advertisements; the use of banks 1
cvade taxation; that four of the d
rectors, including Senator Page, ha
ne incurred liabilities to the bank ver
~ largely in excess of the legal limi
(which is $4,000, and l acted in eac