The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1916-08-10

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clear the banking department of any
suspicion of negligence or favoritism
with relation to the practices referred
to, and would also assure the public
that all would practices had been stop
ped, and would thus avoid any possi-
bic claim that the bank commissioner
was making any statement for pOliti
cal purposes, but | am very jealous
of the reputation of the banking de-
partment of Vermont, and am not will
ing that the people Of the state should
get a wrong impression as to the at
titude of the bank commissioner with
relation to illegal or improper prac-
tices by officers Of any banks over
which he has jurisdiction. This is
mym reason for answering the charges
which have been made. | think it is
fully as important that the people of
the state should have confidence in
the integrity and independence of the
bank commissioner, as that any par
ticular individual should be elected
United States senator. | realize that
the people Of this state have right
to know what the attitude of the
bank commissioner has been towards
any improper or Illegal practices of
the banks, but wish to have it plain
ly understood that during my term
of Office as bank commissioner, the
| money deposited in the I.amoille
County Savings Bank and Trust com
| pany has been safe. and the bank
has been solvent, and its condition at
the present time is better, and the
bank is stronger than at any time dur
| ing the past six years.
Sums Up Charges.
Summing up the charges which
have been made by the various news
! papers during the past six weeks,
which I have seen, which reflect up
| on the administration CT the banking
department Of Vermont:
First. it is charged that Senator
Page transferred bank stock which he
| owned to avoid taxation.
Second it Is charged that the
Lamoille County Savings Bank and
Trust company. Of which Senator Page
is president, issued misleading adj
| yertisements with relation to the man.
ner in which the money of its deposit
tors was invested.
Third. 1t is charged that some di
rectors OF the bank indorsed or guar
| ahteed out OF state loans b the bank
is an amount very much larger than
| the law allows.
| Fourth. Il is charged that the
bank commissioner must have known
of these practices, and II he did not
correct them. failed IN his duty as an
officer Of the state.
| Answers In Affirmative.
AS to the first three charges ! must
answer in the affirmative.
| ''As to the fourth charge, discov
cred the illegal acts; the misleading
advertisements; the use of banks tC
eyade taxation; that four of the di
rectors. including Senator Page, had
incurred liabilities to the bank yesy
| largely in excess OF the legal limit
which is $4,000. and | acted In each
case promptly after complete inlorma
tion, and caused all such practices &c
be abandoned after a good deal Of eff
fort, and ! will state fully and frankly
the facts with relation to ali these
matters as they have existed during
my term Of Office and as they exist al
the present time.
Il found that the Lamoille County
Savings Bank and Trust company hat
been investing in real estate mort
cages outside Vermont for severa
years. the amount at that time beins
something over one-quarter oi mil
lion of dollars and was advertising un
der the slogan All in Vermont"
took up the matter with Senator PAGE
the president OF the bank, and II. NJ
| McMFarland, the vice-president, anC
advised them that the advertisement
in my judgment was misleading, il
that II caused the people of Vernon
to believe that the bank did not in
vest In out OF state mortgages as man.
other banks were doing. but that /
invested all OF its funds in Vermont.
ascertained that two of the Director
of the bank had guaranteed th,
amount OF these out of state loans un
der an arrangement with Senator Pag
by which he paid them from his owl
pocket n commission for their guar
antee. and he insisted that Il was
perfectly proper thing to do: that
made the loans Vermont loans, an
that the bank had q right under thos
circumstances to advertise that all 1t
investments were made in Vernon
either upon real estate loans or wit
two good Vermont names. insiste
that under the law the directors ha
no right to guarantee such loans I
such amounts, and that the practic
must be stopped. both as to guarante,
ing the loans by the directors, and q
to the form of the banks advertise
ments: that the other directors who's
Indebtedness was excessive must r
duce II to the legal limit, and was a
sured that should have no cause fC
criticism in those matters in the f
/ turc.
Noticed Advertisements.
some two years later noticed a
\ ycrtisoments of similar characte
I answering John Senter's criticism
I and called the attention of Senat,
| Page and Mr. Mcfarland to the agro