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

that the banks investments be made ac-
cording to law. If the law was wrong he
should take that matter up with the Leg
fslature but that believed it was very
wise provision in the law which prohibited
directors of a bank from borrowing from
the bank, OF becoming indebted to the
bank in such amounts and under such
circumstances prevailed In that bank
Later, very serious weakness developed
in one line Of out Of State loans guaran-
teed by two directors. and MI. McFar-
land frankly stated that the loans
would not have been made If Senator
Page had not paid the directors
commission to guarantee them.
Mr. Mcfarland secured the bank
against a possible loss on these loans.
After several hours discussion Senator
Page finally said that he would comply
with my request and that I should have
no further cause for criticism, although
he believed / was wrong in my position.
From the first criticism which I made
OF the policies Of the bank up to the
present time, Mr.. Mcfarland has al
ways agreed that I was right in my po-
sition: that the policy Of the bank had
been wrong. and that he was very glad
I was insisting In a change and would
cooperate with me in every way possi-
BILE to improve conditions and eliminate
an bad practices, which he has faith-
fully done to the present time.
BANK STOCK TRANSFERRED.
I'm the summer OF ts1s discovered that
several State banks had apparently pur-
chased in March, stock of other banks and
national banks held by officers Of those
banks, and that shortly after April !. .
part OF such stock Was re-transferred TO
its former owners at the Same prico at
which It had been purchased. inquired
into the matter and discovered tha1
Senator Page had Transferred q large
amount Of stock owned BY him In va
Eaous banks to various other banks
shortly before the nrst OF April and
had received an agreement from the
banks to watch such stock was trans-
fexred that It would be returned to
him On demand 1T tho price OF transfer.
and the SEINE Transaction had taken
place betweea various banks and the
eaS4Ous o0ceS0 and stockholders In
oth~F banks. I was convinced, - The
result Of my Investigation. that these
transactions were solely for the pu1-
pose Of evadinS the payment Of local
taxes on such bank stock. and I me-
ttaed all such banks that did not
think q bank chartered By the State
should allow itself to be used for
the purpose OF evasion OF taxes, and rec
commended that At once they require ths
seller to repurchase the stock or release
the bank from It's agreement to resell.
and sent circular to all the State banks
calling their attention to the situation and
making q similar recommendation
found ono bank which kept such stock
and was advised that the agreement hai
been returned to Senator Page and tn.
bank owned the stock. about 5000
At my last examination Of that bank
discovered that the bank had paid Sen
ator Page the difference between tn,
dividends received on the stock an,
0ve Der cent. interest the amour
at which the stock was purchased. an,
an examination disclosed that the ad
5ustment which I supposed had bee,
made was not renlly made and tina
Senator Page still owned the ban]
stock although 1t had been held BIZ tn
bank during all that time, had paid n
local taxes. only paying the State ta1
Immediately notified the officers of tina
bank that that condition must not cor
tinue: that tho bank must eithe
absolutely purchase that stock fire
from any ownership. control Q
interest in Il by Senator Par,
Or return Il TO him, and that the onl
way In which such q transaction coul
lawfully appear was by the bank loal.in
the money to Senator Page and takin
the stock as collateral The stock was r,
turned to Senator Paga Sometime Ia.
!. FLETCHER Sc