8739. Newport Savings Bank (Newport, ME)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
*
Location
Newport, Maine (44.835, -69.274)

Metadata

Model
gpt-5-mini
Short Digest
811b3f46

Response Measures

None

Description

The articles state the Newport Savings Bank was under a receiver (J. W. Hobart) and awaiting final settlement/dividend after suspension. No run is described in the texts; the bank is in receivership and appears to remain closed. Causes relate to bank-specific adverse information/insolvency (creditor loss tied to Pacific National Bank of Boston suits).

Events (3)
1. * Other
Newspaper Excerpt
The receiver of the Newport Savings Bank, J. W. Hobart, Esq reports that he has not yet been able to make a final settlement of its affairs, on account of the suits pending against the stockholders of the Pacific National Bank of Boston, the Savings Bank being one of the creditors of that bank. As the decision has recently been rendered by the Supreme Court of the United States against the stockholders, there seems to be prospect of an early settlement and a larger dividend to the creditors of the Newport Savings Bank than could otherwise have been realized.
Source
newspapers
2. * Receivership
Newspaper Excerpt
The Receiver of the Newport Savings Bank, J. W Hobart, Esq, expects to make a final dividend ... the receiver of the Newport Savings Bank, J. W. Hobart, Esq reports that he has not yet been able to make a final settlement of its affairs ... the Savings Bank being one of the creditors of that bank.
Source
newspapers
3. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had been placed in receivership; suspension related to insolvency/claims including losses as creditor of Pacific National Bank of Boston (suits against that bank's stockholders impeded final settlement).
Newspaper Excerpt
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.
Source
newspapers

Newspaper Articles (3)
1. December 5, 1885 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 5, 1885

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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-

2. December 1, 1886 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, December 1, 1886

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Article Text

posits. One bank has paid a dividend of 51 per cent. five of 5 per cent.: four of 41 per cent.: one of 41 per cent.: thirty-nine of 4 per cent.: two of 3g per cent. and two of 3 per cent. The amount of these dividends was $1,399,515. 38, and at the close of the year there remained in undivided profits, $770,499. The amount invested in United States bonds has decreased during the year from $4,421,784.12 to $3,207,924.12. The investment in county and city bonds has increased $468,997.48, and the aggregate is now $12,526,728.47. The amount invested in railroad bonds is $6,843,913.85, an increase since last year of $1,514,377.38. The savings banks have absorbed in the stock of national banks $1,900,238.83. This is an increase of $192,127.00. Railroad stocks and other corporation stocks and bonds have increased $49,251,33, and the aggregate is $1,371,618.11. The real estate owned by savings banks has decreased $31,252.04, the amount at the present time being $1,102,727.80. Loans on mortgages of real estate have increased from $5,645,969.08 to $6,113,414.72, while other loans have increased from $4, 219,574.47 to $4,760, 804.56. The uninvested cash on the first day of November was $1,063,749.22. It appeared by the appraisement of the assets of the savings banks in May, that their value was $4,583,719.76 in excess of the actual liabilities. There has been a considerable appreciation in the value of some of the choicest bonds held, and the next appraisement would show a handsome increase in the surplus but for the loss of $40 per share on the 2,178 shares of the capital stock of the First National Bank of Portland, the depreciation amounting to $87,120. This loss has materially reduced the surplus of some of the smailer banks, and prudent management will require a slight reduction in dividends until the amount of this shrinkage has been restored. The receiver of the Newport Savings Bank has not been able to make a final settlement of its affairs on account of the suit pending against the stockholders of the Pacific National Bank of Boston, the savings bank being one of the creditors of that bank. Now that that suit is practically decided by the decision of the United States Court against the stockholders of the Pacific Bank, an early settlement and a larger dividend than could otherwise have been realized would seem to be assured. TRUST COMPANIES. The Portland Trust Company commenced business in January, 1885, and the People's Trust Company of Farmington the September following. Each has a paid-up capital of $100,000, and the stockholders are liable to assessment to an amount equal to the par value of the shares held. The business to be transacted by these companies is, as the name implies, in the nature of dealing in trusts. Their charters are exceedingly liberal, no restriction being placed upon their loans or investments. With almost unlimited discretionary powers, great responsibilty devolves upon the managers of these corporations, both in the econominal management of these trusts, and the character of the securities in which they invest. The soundness of investments, convertibility of assets and the economy in the management of their trusts can be the only proper basis for the increase of their deposits and the legitmate expansion of their business. LOANS AND BUILDING ASSOCIATIONS. Under this head the Examiner gives a history of the Building Associations existing in this State and their method of operation. The People's Loan and Building Association of Richmond was organized under a special charter, March 15, 1875, and is still in successful operation. On the first day of November of the present year, it had 186 stockholders, representing 744 shares, with assets amounting to $55,664.41. During the eleven years the association has been in operation it has aided in building fifty-one dwelling houses in Richmond. Three other similar associations have recently been organized under the general law of the State, viz.: At have Bangor. Dexter and Skowhegan. They been reasonably successful so far. STATE TAX. The State tax on deposits in the savings banks last year was $232,973,74, or $26,788.97 more than in 1885. The Examiner inclines to the opinion that the rate of taxation on deposits ought to be reduced. INVESTMENTS. Under this head the Examiner says: With the reduction of the national debt by the repeated calls for the optional bonds, trust funds invested in them have been involuntarily converted into money, and the underlying mortgage bonds of well-established railroad properties have been substituted; so that the low rate of interest derived from investment securities dates its origin from the commencement of the reduction of the national bonded debt. As the rate of interest has moved down, the premium on investment securities has moved up. The average

3. December 1, 1886 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 1, 1886

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Article Text

has increased $468,997.48, and the aggregate is now $12,526,728.47. The amount invested in railroad bonds is $6,843.913.85, an increase since last year of $1.514.377.38. The savings banks have absorbed in the stock of national banks $1,900,238.83. This is an increase of $192,127. Railroad stocks and other corporation stocks and bonds have increased $49,251 33, and the aggregate is $1,371.618 11. The real estate owned by savings banks has decreased $31,252 04. the amount at the present time being $1,102,727 80. Loans on mortgages of real estate have increased from 85 645 969.08 to $6,113,414 72, while other loans have increased from $4.219.574.47 to $4.760,804.56. The uninvested cash on the first day of November was $1,063,749 22. It appeared by the appraisement of the assets of the savings banks in May, that their value was $4,583,719.76 in excess of the actual liabilities. Since that time there has been 8 considerable appreciation in the value of some of the choicest bonds held, and the next appraisement would have shown a handsome increase in the surplus but for the loss of forty dollars per share on the 2 178 shares of the capital stock of the First National Bank of Portland, the depreciation amounting to $87,120. This loss has materially reduced the surplus of some of the smaller savings banks, and prudent management will require a slight re duction in dividends until the amount of this shrinkage has been restored. NEWPORT SAVINGS BANK. The receiver of the Newport Savings Bank, J. W. Hobart, Esq reports that he has not yet been able to make a final settlement of its affairs, on account of the suits pending against the stockholders of the Pacific National Bank of Boston, the Savings Bank being one of the creditors of that bank. As the decision has recently been rendered by the Supreme Court of the United States against the stockholders, there seems to be prospect of an early settlement and a larger dividend to the creditors of the Newport Savings Bank than could otherwise have been realized. TRUST COMPANIES. The Portland Trust Company commeneed business in January, 1885, and the People's Trust Company of Farmington the September following. Each has a d-up capital of $100,000, and the stockholders are liable to assessment t. an amount equal to the par value of the shares held. The business to be transacted by these companies is, as the name implies, in the nature of dealing in trusts. Their charters are exceedingly liberal, no restriction being placed upon their loans or investments. With almost unlimited discretionary powers, great responsibility devolves upon the managers of these trusts, and the character of the securities in which they invest. The soundness of investments. convertibility of assets and the economy in the management of their trusts can be the only proper basis for the increase of their deposits and the legitimate expansion of their business. LOAN AND BUILDING ASSOCIATIONS The People's Loan and Building Association of Richmond was organized under a special charter March 15th, 1875. On the first day of November it had 186 stockholders, representing 744 shares with assets amounting to $55,664.41. During the eleven years this Association has been in operation it has aided in building fifty-one dwelling houses in Richmond. Three Loan and Building Associations have recently organized under the general law of the State. They are located at Bangor, Dexter and Skowhegan, and their organization was authorized by the Bank Examiner, as there seemed to exist at these places a legitimate ground for their operation. So far they have been reasonably successful and it is a fair presumption that others will be organized when the public more fully understand their plan of operation. As the Legislature has recognized the usefulness of these associations by providing for their organization, it seems proper to explain their system in order that it may be more generally understood. With careful, honest management they can hardly tail to produce beneficial results. Such has been the case in Boston, Chicago, Philadelphia, and other smaller places in the United States. In and about Boston there are upward of thirty organizations; in Chicago there are nearly two hundred; while in Philadelphia, three hundred and forty three have been in active operation for more than forty years, using at the present time a capital of over $80,000,000. In the Province of Ontario, Canada, late returns show a wonderful growth, their capital aggregating upwards of $50,000 The object of these associations is to enable persons of small means and limited income to buy or build their houses. This is accomplished by small monthly assessments applied to payment on instead of rent. The time required to complete the ownership is about ten years. Strictly speaking, building associations are co-operative banks applied to house building. STATE Tax Bv the report of the treasurers of savings banks Nov. 1st, it appears that the State tax on deposits the past year was $232,973.74 or $26,788 97 more than in 1885 Without exception, the officers of savings banks compiain that this is an excessive tribute. INVESTMENTS. The Examiner devotes considerable space to this subject, discussing the character of many of the investments offering. He advises savings banks managers to shun investments in miscellaneous bonds, the securities of small cities, local corporations and mortgages of over-valued real estate, and inv st only in the choicest securities. "No financial panic. he savs "can disturb the confidence