Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1916-08-16
"As to the first three charges
must answer in the affirmative.

"As to the fourth charge. I discov-
cred the illegal acts. the misleading
advertisements; the use Of banks to
eyade taxation; that four Of the direc-
tors, including Senator Page. had In
CURED liabilities to the bank very
largely in excess Of the legal limit.
which Is $4,000, and acted in each
case promptly after complete tnforma-
ton. and caused all such practices to
be abandoned after good deal OF
effort and will state fully and frankly
the facts with relation to all these
matters, as they have existed during
my term of office, and as they exist at
the present time.
II found that the Lamoille County
Savings Bank and Trust company had
been investing in real estate mortgages
outside Vermont for several years. the
amount at that time being something
over one-Quarter Of a million Of dollars
and was advertising under the slogan
"All in Vermont" I took up the matter
with Senator Page. the president Of the
bank. and H. M. Mcfarland. the vice.
president. and advised them that the
advertisement. in my Judgment. was
misleading, in that 1t caused the peo-
pie Of Vermont to believe that the bank
did not invest III out Of State mort
cages as many other banks were doing.
but that 1t invested all OF it's funds in
Vermont 1 aseertained that two OF
the directors Of the bank had Euaran-
teed the amount Of these out OF State
loans under an arrangement with Sem
ator Page by which he paid them from
his own pocket a commission for their
guarantee. and he insisted that It was
a perfectly proper thing to do; that It
a. - 80
the bank had a right under those cir
cumstances to advertise that all It's tn
vestments were made In Vermont either
upon real estate loans or with two good
Vermont namea. I insisted that under
tho law the directors had no right to
guarantee such loans In such an1Suntz,
and that the pyaet2ce must b stopped
both IS to guaranteeing tho loans By
the directors and as to the form OF the
banks advertisements that the other
directors whose indebtedness was ex-
cessive must reduce II to the legal limit.
and was assured that I should have no
cause for criticism in those matters In
the future.
MR.. sENTER's CRITICISM.
''Snme two years later noticed adveE-
tisements OF similar character. answering
John santers criticisms, and called thu
attention OF Senator PaEe and Mr.. Mo.
Fariand to the agreemeu made two year.
before which thought had not been hon
estly kept I also discovered that tn,
bank. at the request OF Senator Page
was about to invest further in out o
State mortgages ana no had asked tn
treasurer to accept the Endorsement upo
such mortgages OF local corporation 1
which Senator Page and other officers @
the bank were largely interested OF
tected to this and wrote q letter to Sena
tor Page stating my objections. He cal
ed for conference upon the matter an
met him and Mr.. Mcfarland and sper
q day with them going over the matte
fully. Senator Page ins1sted that the
practices were right and ought to be a
lowed. and that tho position which I too
was preventing the bank from getetn
additional security. I took the positio
that the only right and proper thing Il
the bank to do was to observe tho In
which governed In such matters. and III,
It was bad policy In any event for Il
bank to make out OF State investmen
which they were not Gully satisfied we
absolutely sound and safe. and that vh.
he induced his directors to guarantee O.
Of State loans. paying them for the Rua
antee, he was Offering an inducement
accept loans in which the bank might =,
otherwise invest, and that shor,id fns,
THF, AT,T,EN