Wiscasset Savings Bank (Wiscasset, ME)

Episode Information

Episode UID
52017470955
Episode Type
Suspension → Reopening
Bank Type
savings
Bank ID
5201747 routing
Routing Number
52-0174
Start Date
July 3, 1879
Location
Wiscasset, Maine (44.003, -69.666)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9336e4f29534f12c

Response Measures

None

Description

OCR garbles percentages; injunction in 1879 restrained payments and was later dismissed (spring 1882).

Events (3)
1. July 3, 1879 Suspension
Cause
Government Action
Cause Details
Court injunction (restrained payment of more than 20% of deposits and barred paying/receiving new deposits)
Newspaper Excerpt
an injunction was granted July 3d ... restraining payment to depositors in the Wiscasset Savings Bank of more than 20 per cent.
Source
newspapers
2. April 1, 1882* Reopening
Newspaper Excerpt
In the case of the Wiscasset Bank, enjoined in 1879, the injunction was dismissed last April, and the Bank ... now merits and receives the complete confidence of its depositors.
Source
newspapers
3. February 2, 1885 Other
Newspaper Excerpt
the Wiscasset Savings Bank ... on the 2nd of February last, declared a special dividend to its depositors of 6 per cent, which amounted to $5,957.17.
Source
newspapers

Newspaper Articles (7)
1. January 14, 1881 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, January 14, 1881

Click image to open full size in new tab

Article Text

THE SAVINGS BANKS. Annual Report of Examiner Richards. Bank Examiner Richards, in making the twenty-fourth annual report of the savings banks of Maine to the Governor and Council, says that the great ordeal to which savings banks were subjected in 1878 and 1879 has not beon destitute of beneficial results, it having demonstrated to the satisfaction of managers and depositors that moderate profits, with perfect security, are to be preferred to high rates of interest from hazardous investments and that an ample reserved fund is of greater importance than the amount of dividends. The conservative disposition which characterizes the present management of the savings institutions of our State is a gratifying assurance of the general determination to make them, in fact, a safe depository for the savings of the people. There are at present fifty-five savings banks in active operation in the State. During 1878 the deposits decreased $3,725,320, and during 1879 the decrease was $186,363. The past year, on the contrary, there was an increase of $1,968,183. The aggregate of the reserved fund held by the banks on November 1, , 1880, amounted to $607,629.63. The examiner remarks on the tendency to decrease real estate investments and invest in public funds and railroad bonds as more easily converted into cash. The propriety of investing in railroad stocks is, at least, vuestionable. Some banks continue to make loans on names alone. Although no losses have occurred from such loans, it is a violation of the law, to which the attention of the bank officers has been called. The great'increase of deposits and the difficulty in making safe and more remunerative investments has necessitated the temporary depositing of large sums in national banks at a very low rate of interest for monthly balances. One bank has made a dividend ef per cent, 19 a dividend of 5 per cent, 1 a dividend of 42, 12 a dividend of 41, 5 a dividend of 41 and 16 a dividend of 4. One has made no dividend, having been enjoined. The attention of the Legislature is called to the fact that the present State tax on the banks amounts to at least 20 per cent of the revenue of the banks. The Bucksport, Hartland and North Anson banks have practically closed their affairs during the year. October 3d the Bucksport bank voted a final dividend of 111 per cent, making an aggregate of 711 per cent paid the depositors in settlement. The North Anson bank voted to surrender its charter last January. The Hartland bank reported November 1st the amount due depositors to be $14, with cash in bank of $14. The Newport and Solon banks are in the hands of receivers. It is estimated that the Newport bank will finally pay depositors from 65 to 70 per cent, and the Solon bank 100 per cent. On account of the depreciation of values in 1877 and 1878, 13 banks availed themselves of the relief afforded by law, of reducing their deposit accounts. Seven of these, namely the Androscoggin County, Auburn, Bridgton, Calais, Dexter, Franklin County and Skowhegan, have been able to partially or wholly restore the amount so reduced to the credit of depositors. The injunction granted to the Wiscasset bank, to restrain the payment of 80 per cent of its deposits, has been continued. The bank has loans of $22,000 in the town of Wiscasset, the security of which is rendered uncertain by a the financial condition of the town. With low estimate of its assets the bank has a surplus above liabilities of $12,670.40, and with the earnings of another year it can pay its depositors dollar for dollar, without realizing from its loans on mortgages of real estate. The two banks of discount, the Eastern and Mercantile of Bangor, have surrendered their charters, are redeeming outstanding circulation, and will soon make a final settlement. In closing Mr. Richards reminds the bank officers that their efforts should be directed to the disposal of such real estate as they haye been obliged to acquire by foreclosure. The present activity in business and the great appreciation of values affords savings banks an opportunity to prepare for the reaction which is not unlikely to follow. The safest securities should be obtained, income should be regarded of secondary importance. The highest satisfaction is expressed with the general management of the savings banks.

2. February 11, 1881 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, February 11, 1881

Click image to open full size in new tab

Article Text

THE BANKS PAY 20 PER CENT OF THEIR EARNINGS INTO THE STATE TREASURY EVERY YEAR The State Bank Examiner, Hon. Fred E. the Richards of Camden, has presented twenty-fourth annual report of his department in conformity to the law of the State. It is a of voluminous and interesting document which we can give but a brief synopsis. Each of the State banking institutions has been visited during the year, and a careful baland thorough examination made, a trial ance taken, the bonds, stocks, notes, books cash. d and other securities examined, and the these proved to exactly correspond with vouchers. F BANKS OF DISCOUNT There are but two banks of this character acting under authority of the State, whose Eastaffairs are not entirely closed. viz. the Both and Mercantile banks of Bangor. of ern these have surrendered their charters, and are redeeming the outstanding circulation, and will soon make a final settlement. SAVINGS BANKS. There are three savings banks that have the practically closed their affairs during viz. the Bucksport, Hartland, and year, October 3d, the receiver of the Savings Bank made a per cent., an dend Bucksport North of Anson. 111 making tinal divi- aggregate settleof 711 per cent. paid the depositors in Savment. The trustees of the North Anson Bank. in October 1879. voted a final divi- voted dend ings of its funds, and, in January last, of surrender its charter. The treasurer the to Hartland Savings Bank. November 1st. be reported the amount due depositors to 814. and cash on hand 814. There are two banks whose affairs are and besettled by receivers-the Newport will Solon ing banks. It is estimated that there 70 finally be paid depositors,by the first 65 to per cent., and by the latter 100 per cent. BANKS WITH DEPOSIT ACCOUNTS REDUCED. of the depreciation of values the years of 1877 and banks availed during savings On account themselves 1878. their of thirteen the deposit relief afforded by law. of reducing been account. Seven of these have already the able to wholly or partially restore amount so reduced. and the indications the are t that. within a short time, nearly all banks, whose deposit accounts were reduced, the will be able to restore the full amount to credit of their depositors. On account of the peculiar financial condition of the town, an injunction was granted July 3d. by Judge Danforth, restraining payment to depositors in the Wiscasset Savings the Bank. of more than 20 per cent. of amount of their deposits. With the estimated value of the assets of this bank, which, careful examination, is regarded sufficiently upon low. the bank has a surplus. above the all liabilities, of $12,677.40, and with deearnings of another year, it can pay its positors dollar for dollar. without realizing from its loan on mortgages of real estate. 2 DEPOSITS. During the year 1878, the deposits of the In savings banks decreased $3,725,320.00. 1879. the decrease was $186,363.00. The of present year there has been a net increase $1,968,183.00 RESERVED FUND. The of the reserved fund held the banks November 3d. 1879, was to November 1st. 1880. it 721.98: by aggregate amounted 8519.- is $607,629.63. The safety of depositors dependent upon this safe-guard to secure against losses. that the Examiner recommends the law be amended, so that this fund five shall amount to ten per cent. instead of per cent. of the assets of the bank. before an extra dividend be declared. INVESTMENTS. mortgages of real estate have ever as the best the of bank officers been While experience regarded possible has the security, demon- availastrated. to their satisfaction, that bility of money loaned on real estate mortis inadequate to meet, at all times, gages, the demands of depositors. whose deposits The by them are regarded as a loan on call. mortgage loans have. in consequence, been gradually reduced. and investments in securities more easily converted to cash have been made. The propriety of investing the deposits of savings banks in railroad stocks, the Examiner thinks is. at least. questionable. Some of the banks continue to make loans on names alone. Although no losses have been refrom such loans. it is. nevertheless, a ported violation of the law. to which the attention x of the officers of such banks has already been called. The Examiner hopes that these loans will soon be collected. and no new transactions of this character be negotiated. DIVIDENDS. : The fifty-five savings banks have made dividends as follows one, 6 percent; nineteen. cent: one. 4 3.4 per cent: twelve, 1-2 per per cent; five, 4 1-4 per cent; sixteen hav4 per cent. One has made no dividend, ing been enjoined. STATE TAX. The bonds issued by municipalities and of railroads years ago. bearing high rates form an important factor in the reof the banks. These and interest, rapidly sources maturing. investments securities at possible. much are of interest only, are of the banks must less. year Bonds, of The lower grow earnings rates correspondingly sufficiently unquestionable of necessity, by value year. to be held by savings banks, bearing 4 1-2 at cent interest. can only be purchased if per premium. and the present State tax. assessed a and collected without expense to the State, must amount to. at least, 20 per cent. of the revenue received from such safe ine vestments as are afforded the banks at the present time. AGGREGATE STATEMENT, Nov. 1, 1880.

3. December 12, 1882 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, December 12, 1882

Click image to open full size in new tab

Article Text

Maine Savings Banks. The report of Mr. Fred E. Richards, State Bank Examiner, is at hand, and shows that the Savings Banks of Maine are in prosperous condition. The amount of deposits, we are told, has increased, the new investments have been wisely made, and very many of the securities owned, upon which the payment of dividends or interest was suspended some years ago, have during the past twelve months become dividend-paying stocks. The only possitle loss of consequence sustained during the year is to those banks so unfortunate as to be depositors in the Pacific National Bank of Boston, and it is doubtful if any loss be éventually incurred in thistransaction. The securities held by the thirteen Savings Banks whose deposit accounts were reduced by decree of Court during the years 1877 and 1878 have, the Examiner says, so much appreciated in value that nearly all of these banks have made partial or final special dividends within the last two years to the depositors whose accounts were so reduced. He reports that, with the exception of interest, it seems probable that in the end very little loss will be sustained by those interest ed in these banks at the time of the reduction. In the case of the Wiscasset Bank, enjoined in 1879, the injunction was dismissed last April, and the Bank, he says, now merits and receives the complete confidence of its depositors. The affairs of two banks are yet in the hands of receivers, the Newport Bank and the Solon Bank. It is estimated that the first named will pay 75 per cent. to depositors, and the last named 100 per cent. In the first case several suits are pending and an early settlement of affairs is not probable. In the case of the Solon Bank there is no litigation attending settlement, and the final dividend will soon be declared. The increase of deposits is marked. In 1878 the deposits decreased $3,725,320, and in 1879 further decreased $186,363. In 1880 the deposits increased $1,968,183; in 1881 the increase was $2,900,180; from Nov. 1881 Nov. 1, 1882 the increase has been $3 029.334. The amount now on deposit is $29,503,889. The number of depositors during the year has increased 7,512, the present number being 95,487, of which 76,602 are depositors of sums not exceeding $500 each. The average amount to the credit of each depositor is $308.87. The reserved fund is $958,893, an increase during the last twelve months of $87,877 The dividends declared range from 31 to 6 per cent., thirty-five of the fifty-five banks paying four per cent. The Examiner recommends the modification of the strict law of 1877 rigidly limiting the investment of deposits, arguing that' the statute was enacted while the country was suffering from the financial panic of 1873, and that its provisions are now unnecessarily rigid. In this recommendation we are not prepared to join. The restrictive statute may to some extent interfere with sound investments, but it has proved a strong shield to those investors who can afford to take no risks, and who prefer small and certain returns to promising hazards. If error be made it is better to make it on the side of caution. The Examiner also suggests a reduction of the State tax. At the time the one per cent. tax was imposed investments yielded seven and eight per cent. But the interest is now no more than four per cent. So the tax now is much more onerous. One fourth of the gross earnings of depositors is appropriated to the State. The complaint seems well taken, and the Examiner makes a pertinent suggestion when he urges that a reasonable reduction in the rate of taxation will increase rather than diminish the aggregate amount of revenue, while a policy less liberal will have a tendency to transfer these deposits to the Savings institutions of other States, or to distribute them,among the 96,000 depositors, completely beyond the reach of taxation.

4. December 18, 1882 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 18, 1882

Click image to open full size in new tab

Article Text

State News. AROOSTOOK. The Journal says: Mrs. Mary Anno, one of settlers of Presque to Isle with her the first Presque husband Isle, having from ago, county, aged 85 years. a died Charlotte. come Dec 15th, Washington 40 She years hoping was very worthy woman and passed away and expecting a better life. Notice is given in the papers that the legbe asked to divide the south line of county. islature Chapman. by will Easton. Aroostook the Presque Isle, and so on west to west line the State. The south be a of 20 towns and as many county of portion about plantations. will 16.000 in round numbers and the north The valuation county some inhabitants, containing 24,000. portion of each will the have wild will be about $2,500,000 besides lands. The whole thing is vigorously opposed by many. CUMBERLAND. A special freight train on the Grand Trunk run into by the regular at N. H., near Thursday morning. Junction, road Stratford was Hollow, freight Conductor Groveton John of the special train was while it is feared Conductor of the is fatally hurt. injured, regular Lynn freight The severely Foley engine The of latter train was badly train was five the Portland the delayed wrecked. hours by an old lady on street, accident. It seems Forest for Portland. has a great fondness cats and house was visited day were found there four large eats, and three dead cats, the there when also her latter the live other decently and neatly laid out in woolen shrouds. HANCOCK. Ellsworth and Deer Isle Telegraph will petition the Company The telegraph legislature line from for authority to extend their Ellsworth to Bangor. LINCOLN. Examiner Richards in his annual of Savings Banks says concerning the bank at report Bank Wiscasset of Maine, "The WisBank. which on of assets being in casset some of Savings its unavailable, from account was 1879, enjoined by the court paying or receiving new the of its depositors skillful management deposits, officers, through the had converted its securities that at last term the was and receives the complete merits so for injunction dismissed. confidence It now of its depositors." A syndicate in the interest of the town of Wiscasset has purchased considerably more than half of the railroad bonds at 40 cents on the dollar. PENOBSCOT. The Dover Observer learns that a son of W. Macomber, of Iowa, recently and murdered a man, committed Mr. being robbed H. arrested, suicide and The while by blowing family about out with a revolver. from Milo a few years ago. man was a college was his removed young brains graduate and The said to be very promising There have been several shipments of horses from Prince Edward Island to Bangor. SAGADAHOC. The Bee says: McManners & Whitmore, wood and on Merserve to of hard wood Joshua who 200 are cords cutting place, Richmond, this timber winter. expect and the feet of hemlock logs. have cut a frame for the now proJ. cut already 100,000 brig yard They of in T. cess of construction at the Southard & Son. The Bee says there is a prospect that a steam ferry will be established between the Richmond and Dresden shores, another summer. WASHINGTON. The Sentinel says the sardine factories at is have about all closed, and it will remain closed spring as not that there thought Eastport it is they expected will until be this fish enough to pay any of them to open again winter. The frozen herring buyers are getting a little The not Both very discouraged. encouraging. outlook large is and certainly this small fall. herring have been unusually scarce At this time last year the frozen herring business was booming. YORK. F. Clough of Kennebunkport, on afternoon. while his barn, in the rear of the cart, his fork a to move the a few Saturday David against being post loading load placed hay in feet forward, which easily started, causing him to fall to the floor striking on his face. He was taken up insensible but is now improving. While David Kimball, of Waterboro, was felling trees for the Shakers, an oak lodged in a tree causing it to slide and strike him on the leg, breaking it below the knee and badly crushing the ankle. of Benj. Durgin near Carll's were consumed on of December 11. It is the morning Corner, The buildings totally falling by supposed fire the fire originated from cinders upon the stable from the chimney, which burned out that morning. He saved his stock with the of one shoat; also, the most his housing Building said to insured for which will nearly cover exception $600 goods. the be loss. of The proprietors of the corn canning factory at North Berwick have offered a reward of $50 for the best acre of sweet corn delivered at their factory next season. AT LARGE. The affairs of A. T. Small, dealer in boots and shoes, fancy goods, etc., at Waterboro, are being adjusted in insolvency. Benjamin M. Stewart. tailor, North Anson has failed and gone into insolvency.

5. January 30, 1883 Oxford Democrat Paris, South Paris, ME
Article from Oxford Democrat, January 30, 1883

Click image to open full size in new tab

Article Text

MAINE SAVINGS BANKS. The report of Mr. Fred E. Richards, State Bank Examiner, is at hand, and shows that the Savings Banks of Maine are in prosperous condition. The amount of deposits, we are told, has increased, the new investments have been wisely made, and very many of the securities owned, upon which the payment of dividends or interest was suspended some years ago, have during the past twelve months become dividend-paying stocks. The only possible loss of consequence sustained during the year is to those banks so unfortunate as to be depositors in the Pacific National Bank of Boston, and it is doubtful if any loss be eventually incurred in this transaction. The securities held by the thirteen Savings Banks whose deposits accounts were reduced by decree of Court during the years 1877 and 1878 have, the Examiner says, so much appreciated in value that nearly all of these banks have made partial or final special dividends within the last two years to the depositors whose accounts were so reduced. He reports that, with the exception of interest, it seems probable that in the end very little loss will be sustained by those interested in these banks at the time of the reduction. In the case of the Wiscasset Bank, enjoined in 1879, the injunction was dismissed last April, and the Bank, he says, now merits and receives the complete countdence of its depositors. The affairs of two banks are yet in the hands of receivers, the Newport Bank and the Solon Bank. It is estimated that the first named will pay 75 per cent. to depositors, and the last named 100 per cent. In the first case several suits are pending and an early settlement of affairs is not probable. In the case of the Solon Bank there is no litigation attending settlement and the final dividend will soon be declared. The increase of deposits is marked. In 1878 the deposits decreased $3,725,320, and in 1879 further decreased 8186,363. In 1880 the deposits increased $1,968,183; in 1881 the increase was $2,900,180; from November 7, 1881, to November 1, 1882, the increase has been 83,029,334. The amount now on deposit is $29,503,889. The numher of depositors during the year has increased 7,512, the present number being 95,487, of which 76,602 are depositors or sun's not exceeding 8500 each. The average a mount to the credit of each depositor is $30.8.87. The reserved fund is $958,893, an increas during the last twelve months of $87.377. The dividends declared range from 31-2 to 6 per cent., thirty-five of the fifty-five banks paying four per cent. The Examiner recommends the modifcation of the strict law of 1877 rigidly limiting the investment of deposits, arguing that the statute was enacted while the country was suffering from the financial panic of 1873, and that its provisions are now unnecessarily rigid. 1u this recommendation we are not prepared to join. The restrictive statute may to some extent interfere with sound investments, but it has proved a strong shield to those in. vestors who can afford to take no risks, and who prefer small and certain returns to promising hazards. If error be made, it is better to make it on the side of caution. The Examiner also suggests a reduction of the State tax. At the time the one per cent tax was imposed investments yielded seven and eight per cent. But the interest is now no more than four per cent. So the tax now is much more onerous. One-fourth of the gross earnings of depositors is ap. propriated to the State. The complaint seems well taken, and the Examiner makes a pertinent suggestion when he urges that a reasonable reduction in the rate of taxa. tion will increase rather than diminish the 3 aggregate amount of revenue, while a po- to cy less liberal will have a tendency h insfer these deposits to the savings instit tr. utions of other States, or to distribute them among the 96,000 depositors, completely beyond the reach of taxation.Whig.

6. December 5, 1885 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 5, 1885

Click image to open full size in new tab

Article Text

but that persons who have a surplus earnings, income, desiring to keep their funds as nearly in hand as possible, have become depositors, until the conditions of business 80 change as to make it more profitable or less dangerous to invest far themselves. Whenever the opportunity for private investment becomes sufficiently promising, these funds will leave the banks. The aggregate of deposits in the savings banks Nov. 1, 1884, was $32,913,835 16 May 1, 1885, it was 33,996,182 84 Nov. 2, 1885, it was 35,111,600 04 The increase the first six months was 1,082,347 68 And during the last half of the year, 1,115,417 20 The increase for the full year has been, 2,197,764 88 The reserved fund increased between Nov. 1, 1884, and May 1, 1885, 71,992 And between May 1, 1885, and Nov. 2, 1885, 72,610 And at the close of this year it amounts to 1,220,571 14 or a little more than 3 per cent of the deposits. Regular semi-annual dividends have been paid by all the savings banks, as follows: One bank 6 per cent per annum. " Six banks 5 " " 41 " : 4 Forty-one banks, These dividends amounted to $1,368,035.85, and at the close of the year there remained in the banks $861,986 36 in undivided profits The investment in United States bonds has decreased during the year from $4,739,840.58 to $4,421,784 12. There has been an increase of holdings in State, county and city bonds of $1,145,471.90, the aggregate being $12,057,730 99. The aggregate of railroad bonds owned by the savings banks is $5.329 536.47; a gain during the year of $966,155.01. The amount invested in railroad stock and stock and bonds of other corporations is $1,322,366.78. This shows a slight increase since last year. The savings banks own national bank stock to the amount of $1,708,111.83, or $124,574 61 more than last year. The real estate owned amounts to $1,133,979.84. The uninvested cash November 2 was $1,016,509.58. The loans on mortgages of real estate have increased during the year from $5,216,929.17 to $5,645,969.08; while all other loans show a decrease of $389,105.57; the aggregate being $4,219,574.47. The savings banks have the present year paid the State Treasurer for tax on deposits, $206,184 77: this is $14,367.14 in excess of any previous year. The municipal Taxes aggregate $14,610.74 The Receiver of the Newport Savings Bank, J. W Hobart, Esq, expects to make a final dividend of 5 per cent within a short time, which will give depositors 75 per cent of the balance to the credit of their accounts at the time of its suspension. Twe People's Twenty-Five Cent Savings Bank of Bath, by order of court dated December 20, 1884. declared a special dividend of 5 per cent, amounting to $19.929,54, and the same has been paid to depositors hose accounts were reduced by decree of the Supreme Judicial Court in April, 1883. The Wiscasset Savings Bank (which was enjoined by the court for a period that included three dividend days), on the 2nd of February last, declared a special dividend to its depositors of 6 per cent, which amounted to $5,957.17. The Portland Trust Company commenced business the first of the year and its progress has been highly satisfactory to its management. The business consists of receiving deposits. loaning money, buying and selling investment securities for savings banks, trust funds and private investors. It also accepts and executes legal trusts, and acts as agent for countersigning bonds, paying coupons, &c. The security offered by the terms of its charter has attracted deposits from all parts of the State which now exceed $350,000.00; and this confidence is confirmed by the character of the Board of Trustees directing and managing its affairs. From the earnings of the first year the company has carried a satisfactory amount to the credit of its surplus fund, after reserving a sum sufficient to pay a dividend in January to the stockholders. The People's Trust Company of Farmington was chartered by an act of the Legislature, approved February 24, 1885, and organized the 5th of September last. Its officers are: President, George W. Wheeler; Secretary and Treasurer, Daniel M. Bonney Trustees, George W. Wheeler, Hiram Holt. James R. Marston, George M. Currier, Daniel M. Bonney. At this date it can hardly be said to have commenced business. The following is a statement of its affairs November 2: Liabilities. $50,000 00 Capital stock (paid in), 9,177 05 Demand deposits, 1 05 Profits, $59,178.10 Resources. $11,000.00 Loans on names, 10,488 00 Loans on collaterals, 176 09 Expense account. 37,514 01 Cash on hand and on deposit, $59,178 10 Many thousands of the very highest-priced bonds held by the savings banks will mature during the next two years. They should be replaced by others equally choice and dividends should be so reduced that a portion of the earnings may be applied to the premiums which must be paid for such securities The character of the assets should be considered first, the income therefrom afterwards. Depositors are pleased with generous dividends, but they demand absolute safety. When the old law in relation to the invest-

7. January 3, 1899 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 3, 1899

Click image to open full size in new tab

Article Text

velopments. however. the longer. useless to carry of them the commissioners deficiency ap'The report by the court showed the a assets of pointed about 5 per cent in item of only Their report included under an prothe uncollected bank. interest which cannot carof law a savings bank therefore. visons of asset. This was not. as an consideration in court taken of the reduction. trustees ry the amount into determining The cent to authorize the per did, however, and pav a dividend of 134 the nature collect fund. This was in and made out of this to the depositors, cent. A of a return reduction only 81/4 per set aside, the actual reserve fund was also protect despecial in amount to fully old from further losses on positors sufficient probable inand make it quite returned vestments, further percentage will future. be that a same accounts in the this on the feel confident that with of the bank reduc- is tion 'I the present condition and that it is deserving and a of their beyond continuance of the question. confidence of patronage. the the deposits public before A statement shows $376,864.31; after reduction. reduction were The resources before were $339,177.88. $394,634.06; since $351,224.70. INSOLVENT SAVINGS BANKS. It is practically institution impossible can be so that managed bank any to provided for financial avoid all loss. The savings setting apart has fund which is: a reserve for the purpose of where sufficient law as wisely usually meeting found such the is losses. In so those large few that cases this reserve important losses are it becomes an as to not question sufficient, how to manage and affairs secure so for protect alle largest depositors return possible from 'them the the institution. the assets of at the present time pro- The Our statutes methods of procedure. vide two to appoint a receiver bank to take and pos- disfirst is of the assets of the dividing the propose session of them as he among may, the depositors. sacceeds method pro rata frequently results the in affairs a ritice This of assets, business as in settling corporations. method firms of insolvent It was the only enacted, or individuals. to 1877, when a conditions, law was authorprior which, under court certain to reduce the account amount pro of ized each the individual depositor's losses. thereby making rata to meet solvent the and giving business. it the necthe bank credit to continue substantially essary One of these methods has been pursued as outlined in the where statute the assets of a savings exin all cases become impaired. with Wiscasset one bank have the case of the restrained ception. Bank, In in 1879, the court and paying out Savings bank from receiving This afterwards was bank to pay depositors The a that deposits tion until further order. modified so injune- as cer- af- to permit the cent of their deposits. continued under tain per bank were when the fairs of from the the court until and 1882, the bank alinjunction orders was removed its business in the usulowed to continue During this time, the to earnings make it solvent al of way. the bank without were The any sufficient reduction ultimate result of deposi- was full tors accounts. depositor received interest. the Had that every his deposit with the hands amount of been placed in would' unthis institution the depositors portion of race.ver, ave received only that a too after doubtedly amount due them, and the bank was waiting the fully as long deposits as under the enjoined from paying exist. On the other conditions that court dia had scaled the deposi- have hand. if ounts, .00 the reduct. and would probably tors' acc least 10 per cent. been never at would have been case returned. that different It is frequently the corporations, account and even of kinds banks, of business are compelled on stock. A stock dividends upon procedure losses to providing pass for a mode of allowsimilar ute to that had at continue Wiscasset. their busi40g savings a term banks without to paying dividends, losses, ness and using for their earnings depositors to meet in the would be either better for of the the methods that An ex- are now end than definicelv provided seen in by the law. case of the the ample of this Savings was Bank, where undoubtSouth Paris (with dividends solvent would without passing have made the bank amendment edly to depositors. An proceedings other loss statute providing for Wiscasset, to our to those taken at of small banks. would similar impairment be found in the useful assets in cases of savings