The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1916-08-17
purchased.

purchases.
al inquired into the matter and dis
covered that Senator Page had trans
ferred large amount Of stock owned
by him in various banks to various
ether banks shortly before the first of
April and had received an agreement
from the hanks to which such stock
was transferred that it would be re-
turned TO him on demand at the price
OF transfer and the same transaction
had taken place between various banks
and the various officers and stock
holders In other banks. | was con-
vinced, as the result of my invcstiga-
ton, that these transactions were SOLE
ly for the purpose OF evading the pay
ment of local taxes on such bank
stock. and | notified all such banks
that | did not think bank chartered
by the State should allow itself to be
used for the purpose OF evasion OF
taxes, and recommended that at once
they require the seller to re.purchase
the stock or release the bank from its
agreement to resell. and sent a circu-
lar to all the State banks calling their
attention to the situation and making
similar recommendation. | found
one bank which kept such stock and
was advised that the agreement had
been returned to Senator Page and
the bank owned the stock, about
$4,000.
at my last examination Of that
bank discovered that the bank had
paid Senator Page the difference be-
tween the dividends received on the
stock and per cent interest on the
amount at which the stock was pur-
chased, and an examination disclosed
that the adjust ment which supposed
had been made was not really made
and that Senator Page still owned the
bank stock although 1t had been held
by the bank during all that time; had
paid no local taxes, only paying the
State tax. | Immediately notified the
officers of that bank that that condi-
tion must not continue; that the bank
must either absolutely purchase that
stock free from any ownership, con.
troll or interest in II by Senator Page.
or return IL to him, and that the only
way in which such transaction could
lawfully appear was by the bank loan.
ing the money to Senator Page and
taking the stock as collateral. The
stock was returned to Senator Page.
Sometime last fall my attention was
called to an advertisement by the La
noble County Savings Bank and
Trust company which | thought was
very misleading, and incorrectly
stated the condition of the bank.
"a called the attention OF the bank
and Senator Page TO the matter, and
advised him that there were two state
ments In the advertisement which he
must know were not proper. One.
that the bank did not consider loans
bearing more than 6 per cent as safe
conservative loans. and consequently
did not 90 after such loans, and the
other that the bank had no assets
which we're not absolutely good for
their face.
Later was assured by Senator
Page in conference | had with him
that the advertising had been turned
over to Mr. Culver, the treasurer who
would have entire charge of It and
that he, Senator Page. should not IN.
tcrfere with t. and since that time |
have had no occasion to criticize the
advertisements and do not think there
will be such occasion IL Mr.. Culver Is
to control the matter, as consider
him very competent, reliable bank