First National Bank (Portland, ME)

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Merrill Named First National Bank Receiver

Appointment Relieves Clifford Of Duties As Conservator

JOHN F. A. MERRILL has been appointed receiver of the First National Bank of Portland, closed since the first of March. and assumed the duties of that position today. This virtually amounts to a transfer of the dutles and responsibilities that have devolved upon Philip G. Clifford, conservator of the institution since April 1. It is provided under the National banking laws that conservator shall have the authority of receiver and so Mr. Clifford has been acting in dual capacity but this appointment automatically discontinues the position of conservator. Appointment of Mr. Merrill was made by T. O'Connor, comptroller of the currency in Washington, and contemplates the liquida tion the closed bank, under the comptroller's direction and supervision, in deliber and orderly manner whereby the depositors will (Continued on Page 2. 4th Column)

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Bank Depositors' Laxity Delays Payments Here

40% Of Claimants Of First National Have Failed To Comply With Request To Turn In Passbooks, Preventing New Dividend

PPROXIMATELY 40 per cent of the depositors in the A closed First National Bank have failed to comply with the rule laid down by Washington authorities requiring them to exchange their passbooks for receivers' certificates, and a second "substantial" dividend payment, already authorized. is being held up because of their laxity. according to a statement issued this morning by John F. A. Merrill, receiver for the institution.

Up To Depositors" We are using every means known to inform depositors that they must come to the bank and turn in their savings books. checking account books and any other evidence of indebtedness for receivers' certificates, but nearly half of the persons affected are making no effort to get their own money. Mr. Merrill stated "This requirement is insisted upon by the Comptroller of the Currency as prerequisite to any dividend payment We are obliged to follow the strict letter of the law in this respect and it is now up to the depositors As soon as majority of this 40 per cent carry out their end of the bargain, this bank can make another substantial payment. but not until then

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Depositors To Get 31 Per Cent As Second Payment

$2,000,000 Will Be Paid Out About Sept. 10 On Impounded Savings And Checking Accounts, Says Receiver, John F. A. Merrill

EPOSITORS of the closed First National Bank will receive a second dividend at the rate of 31 per cent on their impounded accounts on or about Sept. 10, according to announcement made this morning from the office of the receiver, John F. A. Merrill.

$2,000,000 To Go Out The payment will mean distribution of about $2,000,000, the greater part of which will be received by residents of this City. A first dividend of 50 per cent was paid in July, 1933. In formal statement issued today, Mr. Merrill says that the exact date and place of payment cannot be made at this time. as a few important details have still to be worked out. He is confident, however, that It will be around Sept. 10 and probably through the main quarters and uptown office of the new First National Bank. The receiver has borrowed $85,000 from the Reconstruction Finance Corporation in order to expedite this second dividend, No estimate as to the amount of assets remaining for further payments, or the final amount to be realized, can be made at this time.

This second dividend will be paid both types of depositors, those with (Continued on Page 2, 2nd Column)

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ON TO CONSUMER

Fernald contended that the gasoline companies would not pass the tax assessment on to the consumer with Campbell insisting that the companies would of necessity have to do so.

Payment by the state of a $6,000 claim of the closed First National Bank of Portland was asked by Arthur D. Welch, Portland lawyer, who appeared before the committee on behalf of a bill for that purpose. Chairman C. Carroll Blaisdell of the committee indicated he believed the bank's receivers might well take the matter to the courts after having received permission from the Legislature to sue.

The claim arose from an assessment on stockholders levied by order of the comptroller of the United States in settling the bank's affairs. The bank's books showed, Welch said, that there were two of its certificates of stock in the name of the treasurer of the state. The stock had at one time been held by two state hospitals.

Welch held that the state was legally responsible but that its moral obligation was even greater. It was because the moral aspect would have no weight in a law court, he said, that he desired to have the matter settled by the Legislature.

In connection with the moral side of the subject, Welch said the state judicial department had been collecting such debts for state banks and that the state could hardly refuse to pay a like assessment against itself by a national bank.

Replying to a query by a member of the committee, Welch said state money on deposit in the bank when it closed could not be used to offset the stock obligations.

There was no opposition to the bill.

TOWN MANAGER ASKED

Rep. Burgess, former Senator Fred Eaton, and Philip W. Thomas, all of Rumford, appeared in support of a bill to give that town a town manager form of government. There was no opposition.

Eaton explained that the town affairs had been conducted along the town manager lines for several years but that such a setup was always open to change in the absence of charter provision. Under a new draft of the bill, one member of the board of selectmen would be chosen from the outlying section of the town and the other four from the restricted area which is more heavily populated.

Senator Alton Bartlett of Hanover

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ON TO CONSUMER

Fernald contended that the gasoline companies would not pass the tax assessment on to the consumer with Campbell insisting that the companies would of necessity have to do so.

Payment by the state of a $6,000 claim of the closed First National Bank of Portland was asked by Arthur D. Welch, Portland lawyer, who appeared before the committee on behalf of a bill for that purpose. Chairman C. Carroll Blaisdell of the committee indicated he believed the bank's receivers might well take the matter to the courts after having received permission from the Legislature to sue.

The claim arose from an assessment on stockholders levied by order of the comptroller of the United States in settling the bank's affairs. The bank's books showed, Welch said, that there were two of its certificates of stock in the name of the treasurer of the state. The stock had at one time been held by two state hospitals.

Welch held that the state was legally responsible but that its moral obligation was even greater. It was because the moral aspect would have no weight in a law court, he said, that he desired to have the matter settled by the Legislature.

In connection with the moral side of the subject, Welch said the state judicial department had been collecting such debts for state banks and that the state could hardly refuse to pay a like assessment against itself by a national bank.

Replying to a query by a member of the committee, Welch said state money on deposit in the bank when it closed could not be used to offset the stock obligations.

There was no opposition to the bill.

TOWN MANAGER ASKED

Rep. Burgess, former Senator Fred Eaton, and Philip W. Thomas, all of Rumford, appeared in support of a bill to give that town a town manager form of government. There was no opposition.

Eaton explained that the town affairs had been conducted along the town manager lines for several years but that such a setup was always open to change in the absence of charter provision. Under a new draft of the bill, one member of the board of selectmen would be chosen from the outlying section of the town and the other four from the restricted area which is more heavily populated.

Senator Alton Bartlett of Hanover

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Fernald contended that the gasoline companies would not pass the tax assessment on to the consumer with Campbell insisting that the companies would of necessity have to do so.

Payment by the state of a $6,000 claim of the closed First National Bank of Portland was asked by Arthur D. Welch, Portland lawyer, who appeared before the committee on behalf of a bill for that purpose. Chairman C. Carroll Blaisdell of the committee indicated he believed the bank's receivers might well take the matter to the courts after having received permission from the Legislature to sue.

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"Such a tax is not needed to 'equalize' competition between the 'big fellows' and the 'little fellows' who operate the filling stations.

"The filling stations is already subject to heavy and oppressive taxation.

"The filling station is not a 'store' as that term is commonly used.

"The volume of sales of a filling station is small as compared with that of a chain store. For this reason, such a tax is confiscatory and out of all proportion to the amount of business done.

"State and federal courts have held that the state legislature may set up a distinction between filling stations."

Campbell said that a department store doing a business of several millions of dollars a year would pay a single store tax of $1, while the company operating filling stations, if not exempted under the chain store law, "would be taxed $50 on a small fraction of the volume of business done by the department store."

Fernald contended that the gasoline companies would not pass the tax assessment on to the consumer with Campbell insisting that the companies would of necessity have to do so.

Payment of the state of a $6,000 claim of the closed First National bank of Portland was asked by Arthur D. Welch, Portland lawyer, who appeared before the committee on behalf of a bill for that purpose. Chairman C. Carroll Blaisdell of the committee indicated he believed the bank's receivers might well take the matter to the courts after having received permission from the legislature to sue.

"The volume of sales of a filling station is small as compared with that of a chain store. For this reason, such a tax is confiscatory and out of all proportion to the amount of business done.

"State and federal courts have held that the state legislature may set up a distinction between filling stations."

Campbell said that a department store doing a business of several millions of dollars a year would pay a single store tax of $1, while the company operating filling station, if not exempted under the chain store law, "would be taxed $50 on a small fraction of the volume of business done by the department store."

Fernald contended that the gasoline companies would not pass the tax assessment on to the consumer with Campbell insisting that the companies would of necessity have to do so.

Payment by the state of a $6,000 claim of the closed First National Bank of Portland was asked by Arthur D. Welch, Portland lawyer, who appeared before the committee on behalf of a bill for that purpose. Chairman C. Carroll Blaisdell of the committee indicated he believed the bank's receivers might well take the matter to the courts after having received permission from the legislature to sue.

The claim arose from an assessment on stockholders levied by order of the comptroller of the United States in settling the bank's affairs. The bank's books showed, Welch said, that there were two of its certificates of stock in the name of the treasurer of the state. The stock had at one time been held by two state hospitals.

Welch held that the state was legally responsible but that its moral obligation was even greater. It was because the moral aspect would have no weight in a law court, he said, that he desired to have the matter settled by the legislature.