Daily Kennebec journal., 1917-02-08
Committee Hearings Wednesday

weekly payment as to borrowers, and
this system. Mr.. Riddleberger said, en-
courages systematic saving.
Industrial banks by their favorable
terms tend to drive the loan sharks out
of business. 1t is a movement for the
social welfare of the community.
Questions by members of the commit
tee were directed to find out about how
much interest stock In such companies
paid and whether it would be we'll to
limit dividends Mr. Riddieberger said
that in the second or third year banks
were generally able to pay S per cent.
and well established banks pay divi-
dends of between and per cent
Bank Commissioner Irving f. Vernon
of Portland in favor of the bill. telling
what he had seen in the New York in
dustrial bank and the class of desery-
ing citizens of small means who were
aided in tight places by this bank. In
Massachusetts there are eight such
banks, among the cities having them
being Boston. Haverhill and Lowell.
Asked what cities such banks would
probably be established in Maine Mr..
Rlddleberger said probably in cities OF
more than 1000 inhabitants. although
this varied according to conditions
There is provision also for branches
foftiand, or course, IS an excellent
place for a Morris plan bank" he saYd.
Senator Baxter, who introduced the
bill, spoke in its favor saying that it
would fill crying need in Bath.
President Bailey of the Senate de-
clared that This will fill a much neac-
ed want in Bangor giving self-respect-
ing people a chance to borrow without
going to the loan sharks. At present
he said, the loan sharks seem\ to he a
necessary evil
No city in the State is more in
need of this kind of an institution than
the city from which | come" said c. r.
Hosmer of Lewiston. We are beset
IN Lewiston anG Auburn with most
Vlrulent plague of loan sharks. Some
OIL them charge as much as 20 per cent
a month on loans" He spoke also from
the point of view of one interested in
loan and building associations IL have
industrial banks to drive out of hi,si-
ness the loan companies, which he said
interfere with the legitimate bnsinos,,
OF the loan and building associations
because of the confusion of names He
Sald he felt that industrial banks were
needed but had two suggestions to
make. if these institutions we're to ha
gwen the right to use the nama
bank One was that there should he
a limitation uron the authority of the
industrial banks to fine borro,vers
even five cents 9 week, in case of fail
ure to pay instruments. The other was
a requirement that some small amoun+
be set aside from the net earnings 10
make reserve to meet possible losses
which Mr.. Riddleberger said had
amounted to less than one tenth of
per cent.
y question about the attitude of ey-
listing banks to these industrial Ianls
was answered by Senator Baxter of
Sagadahoc, who pointed out that some
OIL the most prominent bankers in the
country are at the head of the indus
trlai banks in their respective cities
NO one appeared in opposition to the
bill 't'e'
KEEP. AVcrill OF PrentisS apDeared in
ldNOl OF an act 10 nave the proyis:on
mat municipal officers Shall receive
registration of new voters th,ee 6avs
before elections and not later than
r. NJ, of the Preceding day apnIv to
towns Of 100 or more voters as well as
towns of 900 o.. more. explaining that
haVlnS new voters come to be added
TO the list on the day of election was
Sledt bother 70 municipal officers
1>ep. barnes o. HGuton appeared in
iaNof OF an act to provide fee of -
cents Tor town Clerks for issuance and
recording of burial permits