Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-01-26

oxrminer. and charles ?. Hatch OF the
Forest CITY Trust co. of Portland, for
Imer State auditor.
The acts taken up today had been
introduced by the State bank depart
ment and for the most part haI the
support of both the bank department
and the bank association. In one OF
two instances, changes were recon-
mended which had been agreed upon
at a conference that morning between
Eank Commissioner Vernon ana the
llegislatlve committee of the Savings
Bank Association
The first bill taken up was an act 10
allow compensa ton TO trustees OF say
ines hanks. Commissioner vernon stat
ed that he was forced to rule last year
that savings banks could not pay their
president or trustees or any officers eN-
cent the treasurer, assistant treasurer
land clerks, he felt that the work done
lbv the president and trustees ire
louently deserved compensation ana
This bill was accordingly introduced.
Tho compensation is to be fixed by
the corporators or by the trustees WIN
the consent of the bank commissioner.
Another bill which Bank COMMISSION
or Vernon favored was an act to make
il unlawful for bank officers or en-
ployes to take off or use copies OF rec
ords of banking Institutions for their
personal use or for the use OF others
except the bank. Mr.. Vernon said that
there had never been any trouble along
this line in Maine but there had been
in other states and this act was intro
duccd TO prevent the unlawful use of
bank records.
Charles p. Hatch of Portland said he
did not oppose the principal of the bill
but felt that it would be improper to
prevent the president or other officers
of trust companies who were also stock
holders having the information to which
other stockholders were entitled undo"
the law. Commissioner Vernon sug-
gcstcd u change in phraseology TO meet
tho objection 10 that stockholders who
were also officars would not be deprived
of their legal rights.
Another bill introduced by the state
banking de partmcnt and endorsed by
the State Saving Bank Association re-
duccS the time in which lost bank books
may be replaced from six months att
CT the last advertisement to 60 days
after the last advertisement. Mr.. Yer
non added that q representative Of the
Loan and Building Association had sug-
gested to him the possibility of amend
| ing this act of the revised statutes so
as to cover the loss "f pass books IN
loan and building associations. He be
Ievcd it would DC better to keep the
Loan and Building Association matters
in the sections of the revised statutes
devoted to them.
Reuel w. Smith of Auburn of the leg
islativc committee of the state Loan
and Building League also addressed the
committee on this subject. pointing out
that there are now no provisions cover
ing the laws of Loan and Building AS
Sociations pass books.
Bank Commissioner Vernon spoke for
bill amending tts revised statutes re-
latmg to the increase of capital stock
of trust companies. Trust companies
may he organized either by special act
or under the general law and supervision
of the bank commissioners In the case
of any company organized by the com
missioner he may increase its capital
stock, not to exceed $1,on0. 600. but many
of the trust companies in Maine were
organized by special act of the Lcgis-
iaturc and these may not increase their
capital except by another special act
This bill aims to give the commissioner
The same powers of increasing stock
over all trust companies.
When the committee opened hearing
on the series Of acts giving broader
powers of investment to savings banks.
Commissioner Vernon stated that the
department had become convinced dur
ing the last two years that savings
banks should have such broader powers
OF Investments. There are now pend
ing an act extending rights of invest
ments in light. heat and power com
panies and Joint utilities as we'll as the
three bills scheduled for this afternoon
and also Il bill for a commission 10
revise the banking and investment laws
of the State and present it's revision AT
the next Legislature. While it might
not be wise to make any extensive
amendments at this session, nv. Vernon
felt that there should be some relief
from tn" present restricted limits of in
Ncstmcnt
The first of these bills considered
was one which would allow investment
IN state and municipa, bonds of any
state instead of tn" present selected
numbcr' Mr.. Vernon said that after
conference with The Savings Bank As
Soclatlon committee il had been deemed
best to leave limitation as II now stands
pending the proposed revision.
The bill introduced extending the
limits of savings banks Investments in
street railroad bonds extended the lin
It's from certain select list of states
| 10 all the states Of the Union Mr.
Vernon stated. however, that at this
mornings conference il was decided to
change the bill by adding TO the pres
ent select list the following states:
Washington. Oregon, California. Idaho.
Colorado. Oklahoma and Montana Hon.
John A. Morrll also suggested the pos
sibil1ty of combining this bill and the
one relating to light, heat and power
and joint utilities companies
The bill extending the limits of saw
| inss banks Investments in railroad
bonds as introduced proposed substitut-
| ing any state in the United States and
the Dominion of Canada for the present
select list of states. Commissioner Yer
non and the savings bank committee had
decided to recommend striking out the
Dominion of Canada, leaving investment
ODen to in he IT,,io