The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1916-08-11
PAGES BANKING METHODS
Continued from First Page


Page asked me to meet him in New
| York for conference. | replied that
could see no object in a conference,
| that the matter was perfectly plain,
| and no explanations were needed. He
insisted upon a conference, and paid
all my expenses to New York and re-
turn. After 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 alb
| soutely good.
October rs, 1915, wrote Senator
| Page as follows:--
| My attention has been called to
statements in two recent advertise
| ments OF the Lamoille County say
| ings Bank and Trust company, in one
of which il is stated that the bank
| does not look for investments which
| pay more than per cent, and in the
other it is stated that the bank has
no assets which are not absolutely
good for the face value.
| Il have not attempted to quote
| either OF these advertisements verha-
| tim but in the case Of the first one the
impression is given that the bank has
no investments which pay Il more
than per cent and in the latter Que
| the impression is given that the
banks investments have been so
carefully made that they have deyel-
! oped no weaknesses.
lnasmuch as you have loans which
| pay you 6h per cent or per cent,
| the first advertisements cannot state
| the situation correctly. In the case OF
the other advertisement, although
understand from you and Mr. McFar-
land that YOU have the guarantee OF
Mr.. knight and Mr.. Mcfarland on Ger.
tain loans which have developed a
very substantial weakness. and sup.
pose you reason that because OF those
guarantees the bank will make no loss
and you are warranted in making the
statement in the advertisement; /
think the only case in which a bank
could make the statement properly
would be where the investments had
been made with such rare judgment
and discretion that no weakness ever
developed in any Of them, but where,
as in your case, ii is evident that the
officers who had charge of making the
loans in the bank, namely, yourself
and Mr.. Mcfarland, as | understand
it, made investments which later turn
ed out to be poor even though one OF
the officers of the bank guaranteed
there should be no loss, think the
bank is not warranted in conveying To
the public the impression that its Of
iicers have been so careful, and used
such good judgment as such an adycr
tisement would indicate.
"'Please consider this matter in the
light in which have stated il. and
think you will realize that you are not
justified in asking the people of the
state OF Vermont to select your bank
above all others for the reasons indi
cateu
"He asked for q conference and as
sured me that the advertising for the
bank had been turned over to Mr. Cul
YER. the treasurer, and he would have
nothing further to do with Il. and said
he did not realize he was doing any
thing improper In such advertising.
"As result of the conference, let
ters and rulings of the bank commits
sioner during the past six years, the
} Lamollo County Savings Bank ant
Trust company has abandoned all the
practices which have been criticised
and the only reason It took so long C
accomplish Il is the attitude of Sena
tor Page, and his persistent efforts
to devise some way in which the banl
might purchase out OF state loans. and
still advertise in such q way as t.
lead the people to think all the bank.
deposits were invested In Vermont OF
on Vermont securities.
81 have made this statement 30 thai
the depositors in our state banks maj
} know the attitude which the banl
commissioner takes towards nlega
and improper practices by the bank,
over which he has jurisdiction.
Frank c. Williams.
Bank Commissioner.
Newport, VT, August 8. 1916,