MORTGAGE LOAN COMPANIES. The two companies of this character under the supervision of this Board, viz., The National Mortgage and Debenture Company and The Globe Investment Company, have been examined as usual at their Boston offices by expert accountants, who reported fully to this Board. As stated in our last report, the National Mortgage and Debenture Company is in default on the interest on its debenture bonds, and a committee of the bondholders, working in harmony with the officers of the company, is managing the mortgages held by trustees as security for the bonds. These bonds were issued in series, as follows: Much of the mortgage security is in default, and the committee is taking action to procure possession of property when requisite, and to otherwise enhance and protect the value of the securities; this is a slow and tedious process, but the committee intend as soon as possible to convert the properties into cash, and make payments on the bonds. Since our last report, they have paid all the interest due on the bonds issued in Series A, together with forty per cent. of the principal thereof. The Globe Investment Company has continued to meet its obligations for interest, and has done some new business. This company, like all others in the same line of business, is working to improve the value of its securities, and hopes eventually to realize thereon, to the advantage alike of the holders of its obligations and its stockholders. COLLATERAL LOAN COMPANIES. There are but two companies chartered in this State for the purpose of loaning money on chattel mortgages on articles of personal property left in pawn or pledge, viz., – The Collateral Loan Company and The Workingmen's Loan Association, both of Boston. These companies afford our working people, who by stress of circumstances are obliged to hire money on personal security, the means of obtaining their loans at reasonable rates of interest; and the success which these two institutions have achieved demonstrates the need of them, and the great good which they are doing in the community. Both companies have been examined by an expert, chosen by the Board, as in previous years, and their reports in detail are on file in this office. A balance sheet showing the condition of these institutions at the close of business, Oct. 31, 1892, will be found at the end of this volume. FOREIGN COMPANIES. No foreign companies doing business in the manner of a co-operative bank have been licensed to do business in this Commonwealth during the year; one formal application was made, and withdrawn after a hearing. The three companies reported in 1891 still continue to do business, viz., The American Building, Loan and Investment Society of The Minnesota Saving Fund and Investment Company of Minneapolis, Minn., and The Security Savings and Loan Association of Minneapolis, Minn. As a condition precedent to the admission of such companies to do business in Massachusetts, they are obliged to deposit with the Treasurer and Receiver-General of the Commonwealth the sum of twenty-five thousand dollars, and, after admission, fifteen per cent. of all sums collected by them in the State, all as a fund to be held for the safety and security of the Massachusetts depositor. At the close of business, Oct. 31, 1892, there was on deposit with the Treasurer and ReceiverGeneral under this provision of the statute the following sums: American Building, Loan and Investment Society, $48,852.92, securing deposits by citizens of the State to the amount of $159,019.47; Minnesota Saving Fund and Investment Company, $48,460.74, securing deposits by citizens of the State amounting to $156,404.93; Security Savings and Loan Association, $60,811.72, as security for deposits made by citizens of this State amounting to $238,744.80. These figures aggregate a security fund of $158,125.48, and a total amount deposited of $554,169.87. A sworn statement of condition, or balance sheet of the assets and liabilities of the companies, and a detailed statement giving amounts transacted by each agent, agency or local board, have been made monthly to this Board, and all other conditions of their licenses have been complied with. To whom it may concern: FORM OF LICENSE. By virtue of the authority given to the Board of Commissioners of Savings Banks by the provisions of chapter 310 of the Acts of the Legislature of the Commonwealth of Massachusetts for 1890, approved May 21, the *** having deposited with the Treasurer and Receiver-General of this Commonwealth the requisite amount required by said chapter 310, is hereby authorized to transact business in said Commonwealth till the authority hereby granted is suspended or revoked, in the manner set forth by its charter and by-laws at the date of its application, and submitted with said application, subject to the following conditions and restrictions: CONDITIONS AND RESTRICTIONS. 1. A sworn statement of condition or balance sheet of the assets and liabilities of said company as per books, on the last day of each month, shall be made to this Board of Commissioners within fifteen days after the expiration of each month, in such form as shall be satisfactory to said Board of Commissioners. 2. A sworn statement in detail, giving amount transacted by each agent, agency, local board, etc., shall be made to said Board within ten days after the expiration of each month, showing the aggregate amount of business transacted in this Commonwealth for the month previous. 3. A certified copy of the certificate received annually from the bank examiner, and certified copies of all returns made to the State authorities, must be made to this Board. 4. The required fifteen per centum of all business transacted in said Commonwealth, to be deposited with the Treasurer and ReceiverGeneral of this Commonwealth, shall be so deposited on or before the twentieth day of each month for the business transacted in the month previous, under the special penalty of revocation of this license. 5. The provisions of said chapter 310 not requiring annual examinations by this Board, the impropriety of said association publishing or advertising that they are under the supervision of the Board of Commissioners of Savings Banks is apparent, and is hereby prohibited. 6. This license or authority for transacting business in this Commonwealth shall be published in full and furnished to each and every person transacting business therewith, and may be revoked without notice. The statute governing the admission of foreign corporations of this character to do business in this State does not require examinations to be made of their affairs, and in consequence no examinations have been made. The institutions of our own State, whose assets exceed five hundred and twenty-five millions, under the supervision of this Board, call for the closest attention, and for such continuous supervision as to preclude the Board from making examinations away from home, even if it were required to do so. The difficulty of passing upon the value of loans in other parts of the country, the difference in character of business and methods of its transaction, the entire absence of proper means of estimating the character of the managers of foreign companies, would seem to make it unwise for any other persons to make stated examinations except experts resident in that part of the country where the association is formed, and cognizant with men and affairs at that point. If foreign corporations are to be admitted to do business here to any greater extent than at present, the responsibility of their supervision ought to be transferred to some other department or commission. The many inquiries and verbal applications of companies of all kinds which this Board receives indicate that Massachusetts is looked upon as a field "ripe for the harvest" by foreign companies. Companies, however, which do business in the manner of a co-operative bank must first obtain permission of this Board before commencing business; other companies, however, labor under no such restriction or difficulty, and consequently we find all sorts and conditions of institutions calling themselves banks, trust companies, building associations or what not, seeking admission to do business here, and many of them may be admitted by simply filing with the Commissioner of Corporations certain facts required by chapter 330, Acts of 1884. As they are under no supervision, and subject to no authority, they delude our people and oftentimes do business hazardous to the public. It would seem to be contrary to public policy, as well as unfair to our own institutions, to allow foreign corporations to be admitted to do business in this Commonwealth on any other basis than that governing our domestic concerns. A uniformity of principle and of methods of business preserves a healthful competition which is characteristic of institutions doing the same kind of business on the same terms and under the same restrictions; while to admit foreign corporations upon any other basis and terms gives them an undue advantage which makes competition unhealthful, and which in the end is likely to be disastrous to our domestic concerns. The principle involved is a general one, applicable to all classes of corporations, manufacturing, insurance, etc., as well as financial; and we strongly recommend the amendment of the law, or the |