The Barre daily times. (Barre, Vt.) 1897-1959, 1916-08-14

dent OF the Lamoille County Savings
Bank and Trust Company. dated Fehru-
airy q. 1914 said
Il examined the above bank Feb.
ruary 10, and find that your liability and
the liability OF Mr.. Mcfarland TO the
bank, has not been deerealed since my
last examination. You will remember
that In the talk we had something over
year ago, notified you that the liability
OF the officers OF the bank must be re-
duced 10 the legal limit. namely, ten
thousand dollars. as quickly as II could
be done, and ! find no progress has been
made in that direction. :" In talk
ing with MIR. Mcfarland about your
plans for investment, he advised me
mat you had decided 10 buy western
mortgages, but that they were TO be
guaranteed by the lumber company
and that you and MIR. Mcfarland were
TO guarantee the lumber compapy
advised Mr.. Mcfarland, and now ad-
wise you that this cannot he allowed
II Is only another method of accom-
pIisbinc the same thing and coDtinu-
Ing the same practices which I have
objected 10 for the past four years
aud which are contrary 10 law, and
shal expect you TO reduce the
liability Of yourself and see that the
Liabilities of the other directors are re-
dueed to the legal limit just as soon as
II Is possible to do so without loss TO
the bank.
MEETING IN NEW YORK
AS result OF this letter Senator
Page asked me to meet him In New York
FOR a conference. | replied that could
pbiaPf Of n
matter was perfectly plain and no ex-
plantations We're needed. He insisted up
on conference. and paid all my expenses
to New York and return. 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 l refused to have
released until the loans We're paid, or I
was satisfied they were absolutely good
October IS. 1915. l wrote Senator Page
as follows
"My attention has been called to the
statements In two recent advertise
ments of the LnmoiIIe County Savings
Bank and Trust company, in one of
which IL is stated that the bank does
not look for investments which pay
more than six per cent, and I'm the
other IL IL stated that the bank hns no
assets which are not absolutely good
for the face value. / have not attempt
tempted to quote either of these adver-
tisements verbatim. but in the case OF
the first one the impression Ia given
that the bank has no investments which
pay ii more than six per cent, and In
the latter one the impression In given
that the banks investments have been
so carefully made that they have de-
Neioped no weaknesses. Inasmuch ms
you have loans which pay You six and
one-haif and seven per cent, the first
advertisement cannot state the sit
uatioa correctly. In the case of the
other advertisement, 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 very substantial
weakness, and | suppose you reason that
because OF those guarantees the bank
VIII make no loss. that you are war
fahted IN making the statement in the
advertisement. | think the only case
in which a bank could make the state
ment properly, would be where the in
Judgment and discretion that no weak
ness ever developed in any of them, but
where as in your case, it is evident that
the officers who had charge of making
the loans in the bank namely yourself
and Mr.. Mcfarland. as I understand it,
made investments which later turned out
to be poor. even though one of the Off
GERS or the bank guaranteed there should
be no loss, think the bank is not war
ranted In conveying to the public the i'm
preston that its officers have been so
careful and used such good judgment as
such an advertisement would Indicate
REASONS FOR DELAY.
please consider this matter in the
light in which / have stated it. and
hink you will realize that you are NOT
Justified in asking the people of the State
II Vermont to select your bank above
III others for the reasons indicated
He asked for a conference and assured
ne that the advertising for the bank had
'een turned over to Mr.. Culver. the
reasurer. and he would have nothing
urther TO do with it. and said he did
lot realize he was doing anything inn
roper in such advertising
"As a result of the conferences Ietters
nd rulings of the bank commissioner
'ounty Savings Bank and Trust com
any has abandoned all the practices
'hch have been criticised and the on
reason II took long 10 accomplish
Is the attitude of senator Pnge, and
is persistent efforts to devise some
Tay in which the bank might purchase
ut of state loans. and stiII advertise
such a way as to lead the people to
link all the banks deposits were in
ested In Vermont In Vermont a.
rrfties.
II have made this statement so that
le depositors in our State banks NAV
now the attitude which the hank com
issioner takes towards Illegal and i'm
roper practices by the oanks over which
has jurisdiction
FRANK c. WILLIAMS.
Bank Commissioners"
Newport VI. August $. 1918"