Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1916-08-16


ary T. 1914. I said:
Il examined the above bank Feb
ruary - and ind that your liability ana
the liability Of MI. Mcfarland to the
bank. has not been decreased since my
last examination You viii remember
that In the talk We had something over q
year ago. I notified you that the liability
OF the officers Of tho BACK must be 10.
drced to the legal Limit namely, ten
thousand dollars. as quickly as It could
be done. and I find no progress has been
made In that direction. :" In TALK
ing with Mr.. Mcfarland about your
that you had decided to buy western
guaranteed By the lumber company
and that You and Mr.. Mcfarland were
to guarantee the lumber company.
advised Mr.. Mcfarland. and now adj
wise you that this cannot be allowed.
1t L. only another method OF accom-
plishing the same thing and continu-
Ing the same practices which have
objected to for the past four years
and which are contrary to law, and
I shall expect you to reduce the
liability Of yourself and see that the
liabilities Of the other directors are re-
duced to the legal limit, Just as soon a.
It is possible to do so without loss to
the bank
MEETING IN NEW YORK.
las a result Of this letter Senator
Page asked me to meet him in New York
for a conference. I replied that could
see no object Of a conference, that the
matter was perfectly plain, and no ex-
plantations were needed. He insisted up
On a conference. and paid all my expenses
to New York and return. After q 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 tho
legal limit, and the other directors a1so
except where they had guaranteed out
Of state loans, which I refused to have
released until the loans were paid. or I
was satisfied they we're absolutely good.
October rs. 1915. I wrote Senator Page
as follows:
"My attention has been called to the
statements in two recent advertise
ments of the LamoiIls County Savings
Bank and Trust company, In one Of
which It is stated that the bank does
not look for Investments which pay
more than six per cent, and I'm the
other 1T Is stated that the bank has no
assets which are not absolutely good
for the face value. I have not attempt.
tempted to quote either Of these adver-
tisements verbatim. but In the case Of
the first one the Impression n given
that the bank has no investments which
pay 1T more than SIX Der cent, md In
the latter one the Impression L. given
that the banks Investments have been
SO carefully made that they have de-
veloped no weaknesses. Inasmuch m
you have loans which pay you SIX and
one-half and seven Der cent, the first
advertisement cannot state the SIT
uation correctly. In tho case Of tho
other advertisement. although I under
stand from you and Mr.. McFariand that
you have the guarantee Of Mr.. Knight
and Mr.. Mcfarland on certain loans
which have developed q very substantial
weakness. and suppose you reason that
because Of those guarantees the ban1
will make no loss. that you arc war
ranted In making the statement In the
advertisement I think tho only cass
In which a bank could mako tho state.
ment properly, would be where the In
vestments had been made with such rar<
judgment and discretion that no weak
ness ever developed In any Of them, ba
where as IN your case. II IL evident tina
the officers who had charge Of MAXIM
the loans In tho bank. namely yourDet
and Mr.. Mcfarland al understand II
made investments which later turned on
to be poor. even though ono Of the ofI
GERS Of tho bank guaranteed thsrs shcul
be no loss, think the bank q not wss
ranted in conveying to the public the I'm
preston that its officers have been .
careful and used such good judgment q
such m advertisement would ind1cAAA
REASONS FOR DELAY
"Please consider this matter In tn
light In which have stated Il and
think you Will realize that you are no
Justified In asking tho people Of tho Stst
OF Vermont to select your bank abov
all others for the reasons Indicated.
'He asked for q conference and assure
me that the advertising for the bank ha
been turned over 20 Mr.. Culver, III
treasurer. and he would have nothin
further to DO with It. and said hs d
not realize he was doing anything In
proper In such advertising.
las a result OF the conference, letter
and rulings Of tho bank commissions
during the past six years. tho Lanon
County Savings Bank and Trust con
pany has abandoned all the practics
which have been criticised, and the On
II reason Il took 20 long to acconplas
It L. the attitude OF Senator Pnge. an
his persistent efforts to devise SON
way I'm which the bank might purchaa
ont Of State loans, and stfn adve1t1l
In such a way to lead the people
think all the banks deposits vvero q
vested I'm Vermont or I'm Vermont Q,
curities.
II have made this statement 80 tn,
the depositors In our State banks ms
know the attitude which the bank coz
proper practices by the oanls over vhis
he has jurisdiction.
FRANK C. WILLIAM
'*Bank Commissioners
''.Sewport. VT. August 8. I91s''