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ANNUAL REPORT

OF THE

BOARD OF COMMISSIONERS

OF

SAVINGS BANKS.

1889.

BOSTON:

WRIGHT & POTTER PRINTING CO., STATE PRINTERS,
18 POST OFFICE SQUARE.

Commonwealth of Massachusetts.

• OFFICE OF THE BOARD OF COMMISSIONERS OF SAVINGS BANKS, COMMONWEALTH BUILDING, BOSTON, Dec. 31, 1889.

To the Honorable the Senate and House of Representatives in General Court assembled.

The Board of Commissioners of Savings Banks, in accordance with provisions of law, have the honor to present herewith their fourteenth annual report, relating to the condition of the

SAVINGS BANKS AND INSTITUTIONS FOR SAVINGS,

SAFE DEPOSIT AND TRUST COMPANIES,

CO-OPERATIVE BANKS,

LOAN COMPANIES, and

MORTGAGE LOAN AND INVESTMENT COMPANIES.

A balance sheet of each institution, showing its financial condition Oct. 31, 1889, will be found in the succeeding pages.

SAVINGS BANKS.

The total number of savings banks and institutions for savings is 177, an increase of one over last year, viz. :

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The Everett Savings Bank, incorporated March 1, 1889.

The Shawme Savings Bank of Sandwich, chartered in 1886, has not yet commenced business, and is not included in the above number.

BANKS IN THE HANDS OF RECEIVERS.

Lancaster Savings Bank.

The long-pending suit to recover funds on deposit in the Lancaster National Bank has been decided in favor of the savings bank, and a final dividend, amounting probably to

seven per cent., will soon be paid, making a total dividend to the depositors of sixty and one-third per cent. A statement of its financial condition will be found on page 681.

Reading Savings Bank.

This bank was placed in the hands of receivers in 1879. Many complications, legal and otherwise, have greatly delayed a final settlement, but all matters have now been settled or arranged for settlement, and a final account will undoubtedly be rendered within three months, and the affairs of this bank closed up without further delay. A statement of its financial condition will be found on page 682.

Framingham Savings Bank.

The injunction of the supreme judicial court is still in force, the bank transacting all business except the paying and receiving of deposits. The outlook for a speedy resumption of business and the consequent removal of the injunction is very favorable indeed.

All losses have been charged off, including those caused by the transactions of C. C. Esty.

The assets have been carefully examined, and there is no reason to doubt their present-named values, or to expect any further shrinkage.

The statement or balance sheet, to be found on page 204, shows that the assets at the values named therein are sufficient to pay every deposit account in full.

It is confidently hoped and expected that this bank will resume business next May or June, and pay a dividend at that time.

Union Savings Bank.

The partial injunction placed upon this bank Oct. 1, 1888, made necessary by the actions of its treasurer, who also held the position of cashier of the National Union Bank, doing business in the same room and at the same counter as the savings bank, will without question be removed May 1 next, and the depositors then receive the usual dividend.

The loss to this bank arose principally from insecure loans, which appear to have been made to cover up fraudulent transactions between the two banks; but, appearing in legal form

and in the usual course of business, no redress could be claimed of the National Union Bank or any other party, and therefore the loss had to be sustained by the savings bank, necessitating a cessation of three dividends, which is one less than this Board believed would be necessary when the irregularities between the two banks were first discovered.

The suit against the National Union Bank to recover the value of certain overdraft checks, the property of the National Union Bank, placed in the savings bank by the late cashier, and referred to in our last report, has been decided in favor of the savings bank, and the full value thereof ($30,562.00), with interest at the rate of six per cent. (a total of $32,452.49) has been paid to the savings bank. The depositors are to be congratulated on the settlement of this claim, and the recovery of the full amount with interest, thus saving a large loss to the bank, as well as preventing a delay of at least one year in the resumption of business.

The statement of condition or balance sheet of this bank will be found on page 568, showing a very favorable and sound condition. All the assets of the bank of every kind have been closely scrutinized by the trustees, even to a personal examination of every real-estate loan; and nothing appears upon the statement which has not at this date its full value.

It should be stated that a portion of the loss accruing to this bank was caused by a re-rating of the value of the banking house. It was formerly carried on the books at $37,200; it now appears at $25,000,- a reduction or loss of $12,200. This value is considered conservative. The building had been neglected for years, and was badly out of repair; certain repairs were imperative, and a small outlay was necessary in order to put the building in a safe and tenantable condition, which amount has been charged to expense. The banking room is now in good condition, and will not require any further outlay for some years to come.

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The bank will resume business under an almost entirely new board of trustees and corps of officers, men of financial strength, business ability, and having the unqualified confidence of the community, — who are not identified officially with the National Union Bank, now occupying the same banking room. The business of the savings bank is as distinct from the National

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