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ascertained some action will probably be taken towards securing the amount of shortage from the bond.

In the meantime the new receiver is making up his schedules and collecting together the remaining assets of the bank, and when sufficient money has been realized to warrant the payment of a dividend, the court will be asked to order the same. No time can now be set, even approximately, when this will be, but the depositors are assured that no unnecessary delay will be allowed to prevent its being paid as soon as practicable.

The strange and headstrong conduct of the late receiver in opposing the commissioners and the court in their efforts to get possession of the property of the bank discloses a wilful and deliberate contempt of the authority of public officers and a shameful lack of appreciation of the rights of the depositors of the bank.

The delay occasioned by the late receiver and his maladministration of the bank has been a source of much dissatisfaction and complaint on the part of the depositors, and the foregoing account has been made thus full in order that the public may know where the blame for the delay belongs. On account of the misappropriation of the funds of the bank and the mixed condition of its accounts the Board is unable to give the usual statement of condition in this report. Not until the expert has made a full and complete examination of the accounts and discovered the exact amount of the deficiency can an accurate statement of condition be ascertained.

TRUST COMPANIES. During the financial stringency which prevailed during the summer but one institution in the State was obliged to suspend, and this not on account of being unable to meet all its obligations in full, but from an inability to obtain currency to meet withdrawals.

The New Bedford Safe Deposit and Trust Company closed its doors on the fifth day of August, 1893. On an examination of its condition the commissioners found it perfectly solvent and able to meet all its obligations. A temporary injunction was issued restraining it from paying out money, and allowing it to collect and realize on its assets with a view to reopening.

On the fifth day of October, after having been closed for two months, this institution reopened its doors and has been doing business ever since. Its deposits are steadily growing and it appears to have the confidence of the community.

In the opinion of the Board a great mistake is made by some of the trust companies in allowing interest on small deposits.

The commissioners have frequently called the attention of the trust companies to the fact that to allow interest on small deposits is not good business policy, and is not practised by the larger institutions. No considerable gain accrues from such a transaction. The time and clerical help required to keep these accounts far outweigh any profit which the company receives from the use of the money. It is urged by the trust companies that to allow interest on small deposits attracts the small tradespeople to open accounts who would never do so but for the promise of interest. It seems to this Board that the small tradesman could be just as easily induced to place his money on deposit, by holding out to him the security offered by a safe place in which to keep his money and the accommodation furnished him of drawing checks against his account, as by the promise of an inconsiderable sum in interest. The element of safety and business accommodation far outweighs the small amount of interest credited to the account. One of the smaller trust companies has recently limited the amount on which it will allow interest and so far as known has not lost its customers or had any complaint made of the injustice of the action. We strongly recommend, therefore, the adoption by all trust companies of a limit upon which interest is allowed. Such a course we believe would strengthen the companies, entail less labor upon them, and would not be unjust to the customer.

The law relating to trust companies, chapter 413, Acts of 1888, section 18, gives authority to these companies to hold real estate suitable for the transaction of their business to an amount not exceeding twenty-five per cent. of their capital, and in no case to exceed $250,000.

There are but three trust companies doing business under this law which hold real estate under this section, and the question has recently arisen as to what is meant by the expression “ to hold real estate.” One company, with a capital stock of $100,000, has invested $25,000 in a building and assumed

mortgages to the amount of $40,000, which makes the value of the real estate held by the company $65,000. In addition to these amounts, it has invested $25,000 in its safe deposit vaults and $10,750 in furniture and fixtures. Thus it will be seen that although the books show but $25,000 invested in real estate, the value of the same is much larger, while the sums invested in its safe deposit vaults and furniture make the whole amount at stake in this one piece of property more than the amount of its capital stock. The Board believes that the intention of the law was to limit the amount of value of real estate which a company should hold free from all incumbrances to twenty-five per cent. of its capital, and that it should not become liable for further amounts held on mortgage.

The question is of sufficient importance to call to the attention of the Legislature, and it is respectfully recommended that the law be so amended that no uncertainty or ambiguity shall remain.

List of Safe Deposit, Loan and Trust Companies chartered by this Commonwealth and now transacting Business, giving

the Amount of Capital, Surplus, Deposits, Trust Funds, etc., Oct. 31, 1893.

NAME OF COMPANY.

Date of
Incorporation.

Capital.

Surplus
or Guaranty

Fund.

Undivided
Earnings.

Deposits.

Cash on
Trust Funds. Hand and in

Banks.

.

.

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American Loan and Trust Company, Boston,
Bay State Trust Company, Boston,
Beacon Trust Company, Boston,
B. M.U. Durfee Safe Deposit and Trust Company, Fall River,
Boston Safe Deposit and Trust Company, Boston,
Cambridge Safe Deposit and Trust Company, Cambridge,
Gloucester Safe Deposit and Trust Company, Gloucester,
Haverhill Safe Deposit and Trust Company, Haverhill,
International Trust Company, Boston,
Lowell Trust Company, Lowell,
Lynn Safe Deposit and Trust Company, Lyon,
Massachusetts Hospital Life Insurance Company, Boston,
Massachusetts Loan and Trust Company, Boston,
Mattapan Deposit and Trust Company, South Boston, .
Mercantile Loan and Trust Company, Boston,
New Bedford Safe Deposit and Trust Company, New Bedford,
New England Trust Company, Boston,
Old Colony Trust Company, Boston,
Plymouth County Safe Deposit and Trust Company, Brockton,
Security Safe Deposit and Trust Company, Lynn,
Springfield Safe Deposit and Trust Company, Springfield,
State Street Safe Deposit and Trust Company, Boston,
Worcester Safe Deposit and Trust Company, Worcester,

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Mar. 12, 1881, $1,000,000 00 $500,000 00 $123,794 46 $4,090,943 30

$1,398,100 32 April 4, 1887, 200,000 00 25,000 00 50,660 03 1,502,482 18

515,037 07 June 14, 1892, 200,000 00

13,314 33 212,723 17

91,047 98 Mar. 16, 1887, 400,000 00

75,398 37 1,044,204 43 $35,000 00 217,456 97 April 13, 1867, 1,000,000 00 800,000 00 263,021 80

5,859,744 75 4,075,083 04 1,768,609 12 May 8, 1890, 100,000 00

14,759 95 220,354 02

73,848 09
Feb. 20, 1891, 100,000 00

20,833 78 279,840 60

35,919 49
Mar. 21, 1891, 200,000 00 20,000 00 9,712 05 165,172 13

22,668 77
Mar. 25, 1879, 1,000,000 00 800,000 00 265,211 81 4,829,694 28 1,113,388 63 666,855 64
May 23, 1890, 125,000 00

20,702 19 1,114,591 57

282,372 50
April 20, 1887, 100,000 00 50,000 00 8,045 19 513,934 28

79,681 38
Feb. 24, 1818, 500,000 00 158,077 81 1,224,492 05 20,063,280 92

367,395 16
June 3, 1870, 1,000,000 00 200,000 00 67,140 75 1,505,864 95

359,470 53
Mar. 7, 1891, 100,000 00

13,915 56 321,051 09

75,246 77
May 29, 1888, 250,000 00 10,563 62 16,206 42 425,478 81 73,210 58 154,810 25
Mar. 2, 1887, 200,000 00

12,105 06 305,422 78

101,117 73
April 22, 1869, 1,000,000 00 1,000,000 00 444,005 84 12,087,177 63 1,895,503 18 4,310,022 05
May 8, 1890, 1,000,000 00 500,000 00 210,248 63 8,426,137 00

3,674,723 62
June 14, 1892, 100,000 00

512 16 43,426 55

2,863 11
April 26, 1890, 200,000 00 45,000 00 15,115 87 651,900 83 24,408 56 114,493 71
June 18, 1885, 300,000 00 100,000 00 31,888 89 1,311,317 35 57,774 51 271,605 96
April 13, 1891, 300,000 00

12,935 52 962,344 99 129,197 47 227,441 15 Mar. 16, 1868, 200,000 00 100,000 00 37,722 30 1,871,057 82 129,726 69 331,960 67

$9,575,000 00 $4,308,641 43 $2,951,742 91 $67,808,175 43 $7,533,292 66 $15,142, 748 04

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Suffolk Trust Company. This company was enjoined by the Supreme Judicial Court, Sept. 3, 1891.

It must not be supposed, however, that because it has been in the hands of a receiver for over two years the liquidation of its assets has been unnecessarily delayed. The character of its paper, the difficulty of transferring its various trusts, as well as the many legal questions arising through its relation with outside affairs, have all been a source of much anxiety and trouble to the receiver. The assets have been so far collected as to warrant the declaration of a dividend of thirty per cent. which was allowed by the court Aug. 25, 1893.

The character of the assets remaining in the receiver's hands and the changes which have been made in them are exhibited in the following table :

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