8740. Newport Savings Bank (Newport, ME)

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The in bank stock ed from $1,900,285.83 to $2,120,065.03 Besides the above the banks hold railroad stock amounting to Corporati ons bonds Corporation stocks Real Estate Mortgages of real estate in Maine Corporation and Collatera loans Cash on hand Nov. 1st It appeared in the appraisment of the sets of the savings banks in May that their value was $5,237,004.92 in excess of all liabil ities. NEWPORT SAVINGS BANK. The receiver of this bank reports that petition has been filed asking the Court for authority to sell the remaining assets, in orfinal der to close its affairs and declare a dividend about January 1st. 1888. NEW TRUST COMP. ANIES. Under charters granted by the legislature three new trust companies have been organized, viz The Eastern Trust and Banking Company Bango: The Northern Banking Company, Portland The Oxford County Loan Associati Norway These companies are commencing business under favorable auspicies. Their officers are gentlemen well and favorably known to the people of this State, and their names are sufficient guarantee that the affairs of these corporations will be honestly and economically administered LOAN AND BUILDING ASSOCIATIONS. The first building association in this country was organized more than half century ago. Since then many associ ations have been established and successfully conducted, but it is only within a comparatively few years that their real character and universal value have received general public recogni tion. The first Loan and Building Association in this State organized at Richmond 1875, under a special charter Soon after but general law on the subject was passed, the was revised and essentially modified by present legislature. This law, as it now stands, provides in general, that Loan and organized be Associations may in Building the manner provided for the organization saving banks and trust and loan associations The capital of every association must sist of the dues collected of its share holders and shall not exceed one million dollars This capital is divided into shares, the mate value of each being two hundred lars. The shares are paid for by montal installments of one dollar per share until each share reaches its "ultimate value $200. The shares are issued in series, in amounts and at such times as the members of the association may determine. The funds of the association are loaned to its share holders on satisfactory security and all profits and losses are divided among them rata. To become a share-holder it is only necessary to take out a certificate of as many shares as one may want. but no person shall hold more than twenty-five shares. Minors may hold shares by trustees. shareholder fails to pay his monthly dues he is subject to a fine of not more than two per cent. a month on each dollar in rears, and if he continues in arrears for six consecutive months he forfeits his right membership and his account may be closed Shareholders may at any time on month notice withdraw the value of their shares but in so doing they subject themselves to the loss of such part of the profits as the v-laws may provide, and (2). the payment of a proportionate part of any unadjusted loss. These two provisions are for the purpose of giving greater stability by discour aging withdrawals. Two shares of each shareholder shall be exempt from atta achment and execution. When a share has reached itsultimate value the holder shall be paid in full and his account closed. But he may renew his connec tion by investing in other shares. it It is evident that were there no profits would take 16 years for each share to reach its ultimate value, but experience has shown 12 that the profits reduce this time to 10 or years. This makes a profitable of In regard to the investment of the funds loan and building associations the law provides that every borrower shall be shareholder each member is entitled to receive loan of two hundred dollars for every share held by him: loans may be made either giving as security a first mortgage bond real estate and pledging the shares collat eral, or (2) shares alone may be pledged for any amount not exceeding their paid up value. On every loan is charged an annual interest of 6 per cent., payable in monthly instalments. The manner of loaning the funds of the institution as follows: Each month the off directors of the association meet and bid at auction the money available for loans. That is, the borrower. in addition to paying dues and interest, agrees to pay small percentage for the privilege of using the money Take a practical illustration. A wishes to build for himself a home. He becomes a member of loan and building ciation and accumulates his till they amount to, say, two hundred dollars. then selects lot and makes plan for his home. He finds it will cost him, when completed, $1,200. He owns six shares in the association, on which he has already paid $300, and these when fully matured will pay for his home. He attends monthly meet to ing of the directors and bids off a loan that amount at premium of two per cent He pays for his lot by giving first mortgag on it to the association and transferring shares as a pledge or collateral He then contracts with carpenter to build his home he When his house is framed and boarded receives from the association advance of his loan, when it plastered another advance, and when it is finished the balance. He now has a home for which he is in debt $1,200. payable in monthly instalments on his shares. His monthly expense, then, will be as follows Dues on six shares at $1 per share Interest on 1.200 at per cent. per annum 2.00 Premium of per cent. per annum $14. Total If this seems an excessive burden, it must be remembered that meanwhile house rent is saved and a property is being accumulated As in the case of shareholders, non-borit is evident that were there no profits would require 16 years to pay this loan. but as the shares are constantly ing from the dividends, this time is generally reduced to 10 or years. Borrowers are subject to the same regula tions and conditions non-borrowers. They may withdraw their loans on application a any time either (1) by paying the balance due after deducting the value of tne shares held as collateral, or (2) shares may be retained by paying the amount due in full. To guard against financial embarrassmen to any association, it is provided that time shall more than one-half of the fund: in the treasury be applicable to the demand of withdrawing members. To prevent the perversion of association objects other than for which they are tended, it is provided that directors may their discretion, retire unpledged shares any time after four years from the date their issue. each periodical distribution of profit the directors shall reserve guaranty fund