Waterville Trust Company (Waterville, ME)

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MR. SKELTON'S STATEMENT. Bank Examiner Skelton gave to the press Monday afternon the following statement on the injunction proceedings against the Waterville Trust Co. of Waterville: "I do not care to make a detailed statemer in this matter at the present time, and may not do so until the case is taken up for hearing before the court. "The Waterville Trust Co. has quite a block of paper on which a loss must be suffered. How much this loss will exceed the surplus and undivided profits canont yet be told. The notes are very generally secured by collateral. but some of this is of uncertain value. "About a year ago the affairs of the principal members of the syndicate whose notes are now in default. were placed in charge of a committee representing the creditors. The two railroads, the Portland & Brunswick and the Waterville & Oakland, which constituted an important part of these assets, were admirably managed by the committee and there was strong reason to believe that these and the mining interests would be advantageously disposed of within the allotted time. "This time expires, however, on May 11. and knowing that the committee had not accomplished what it expected, I went carefully over the details with them and with the directors of the Trust Co., and concluded that the present action was necessary in order to assure all depositors equal protection. The injunction granted Saturday evening and served this morning will keep everything in the precise condition existing at the close of business Saturday noon, except that notes due the Trust Co. may be reduced to cash as they mature. "I cannot say now what further action I may take. No receiver will be appointed at present. The present executive board is anxious to work the matter out in such way as to prevent the liquidation of the bank and this department will co-operate with them in their efforts. If this is accomplished, the bank will be in a position to resume business with full confidence in the future stability of the institution, because provision will have been made for charging off or otherwise taking care of the present doubtful investments. "None of the interests which are responsible for the present troubles are, or will be represented on the executive board. and under the very radical changes which were made two years ago in the laws governing trust company investments it is no longer possible for loans of the class and volume which have precipitated the present difficulty to be made by this or any other trust company.

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WATERVILLE NOT ALARMED

Waterville, Me., May 10.-(Special).Although the entire city and vicinity was deeply interested in the edict of Associate Justice A. M. Spear whereby the doors of the Waterville Trust Co. have been closed on complaint made by State Bank Examiner W. B. Skelton of Lewiston, no great fear appears regarding the safely of the deposits or anxiety on the part of the depositors. Business was suspended Monday and no deposits were received or paid out, in compliance with the injunction. Of course the situation is regarded as serious, especially in this city, as (Continued on Page Two).

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ones being losses on loans which did not result satisfactorily. It was understood much money was lost through the Terry Manufacturing Co., whose plant was sold for $70,000 last week on a foreclosure order to satisfy a mortgage held by a Lewiston bank. At the annual meeting three weeks ago there was a lively contest for directors and several members of the heard were replaced by new ones. Charles H. Merrill, a wealthy Bangor man and a large dealer in wool in the Boston market, was elected president to succeed Edward J. Lawrence of Fairfield, the well-known ship owner. The stockholders are said to be men fully able to meet any assessments made upon them to clear up any losses. The following unsigned notice was posted shortly before noon: "Under a restraining order from the supreme judicial court of the State of Maine, the Waterville Trust Co. is prohibited from receiving or paying out deposite. Money may be received for notes as they mature." Horace Purinton, vice president of the bank and a prominent contractor. declared that the depositors are all right and the stockholders will have to settle. also that everything will come out well. Charles F. Johnson, counsel for the institution. said the directors found that they would have to make an assessment and felt it would not be safe to make it in the general run of business because rumors might start that something was wrong with the bank and start a run that would injure it. He considered that the method taken was the best one under the circumstances and that it was a move simply to protect the depositors. He said that besides the capital stock of $100,000 an equal amount can be raised from the stockholders and added to the resources of the bank. He believed the depositors would receive all their money. Mark Gallert. a merchant here for 47 years and one who nas maintained an active interest in the management of the bank. did not consider the situation serious and asserted the depositors were in no danger of loss. The city of Waterville for years had kept the city money in this bank until a few weeks ago, when a new system was inaugurated and bids were asked for the deposits. The Ticonic National Bank was the highest bidder and all the city money was transferred to that bank. There were unimportant runs by small depositors on the other banks of the city today because of the closing of the Waterville Trust Co's. bank. many withdrawing their savings. All demands were met promptly and the banks were not bothered to any extent. State Pank Examiner Skelton stated that no receiver would be appointed at present and that he shall take no further steps until the directors have an opportunity to see what they can do He confidently believes the depos-

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MAY REOPEN WATERVILLE TRUST CO

Efforts Being Made to Prevent Liquidation.of Maine Institution. Waterville, Me., May 10.-The failure of the Waterville Trust Company to open its doors today. because of an injunction issued at the request of the bank examiner caused no excitement, although it inconvenienced many business men who had accounts at the bank. The bank's liabilities are placed at $1,500,000. State Bank Examiner William S. Skelton said today: "No receiver will be appointed at present. The present executive board is anxious to work the matter out in such a way as to prevent the liquidation of the bank, and this department will cooperate with it in its efforts." Charles H. Merrill, of Bangor, Me., president of the Waterville Trust Company, has been at the head of that banking institution only two months. It was erroneously reported last night that Mr. Merrill was on his way to Montana. Mr. Merrill to-day expressed the belief that the bank would not go into liquidation.

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At the request of State Bank Examiner Skelton, on Saturday last, Judge Spear of the Supreme Judicial Court, issued an injunction against the Waterville Trust company, restraining that institution from receiving or paying out funds. The Company may receive payment for notes that may become due. This Company, operating at Waterville, has branches at Corinna, Dexter, Hartland and Newport. No undue excitement was caused at the announcement, which is a credit to the people, who have always considered the Bank as strong and sound. The chief cause of the present condition of things is the investments made years ago in what are now unproductive stocks and bonds of electric railroads and gold mining companies. All the shareholders are by law liable to the assessment of 100 per cent on the stock held by them, for the protection of the depositors; and we understand that these shareholders to a man will come forward promptly and make the sacrifice without any compulsion. The Bank Examiner says he confidently believes that matters may be adjusted by the present executive board, without the appointment of a receiver, and that the depositors will be fully taken care of. So the depositors in the home bank, and its branches as well, have no occasion to feel nervous. The institution will soon reopen its doors on a new era of prosperity, with all the dead-wood eliminated.

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Instead of going on with the business, as was at first thought best and expedient, the affairs of the Waterville Trust Company are to be closed up. Judge| Spear of the Supreme Court has appointed as Receivers, Charles F. Johnson of Waterville and Harry L. Holmes of Fairfield, they to furnish a bond of $100,000. They are to take possession of all the effects and property of the Company, make collections, etc., and await the further orders of the Court.

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Receivers for Waterville Trust Co

AUGUSTA, July 2. Permanent receivers for the Waterville Trust Co. of Waterville were appointed today by decree of Associate Justice Spear of the Supreme Court. This bank was closed May 10th, when a restraining order was issued by Judge Spear on complaint of State Bank Examiner, Wm. B. Skelton. The receivers appointed today were Charles F. Johnson, who is counsel for the company, and Harry L. Holmes, treasurer of the company.

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With the appointment of permanent receivers the Waterville Trust company goes into liquidation, and it is reported that some of the stockholders are preparing to go into voluntary bankruptcy.

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STATE OF maine

c County. Supreme Judicial In Equity. n B. Skelton, Bank Examiner VS. lle Trust Company. tition of Charles F. Johnson and . Holmes, Receivers of the Waterist Company, respectfully shows, det certain parties who are in said Company are also makers, or endorsers, upon certain ry notes due and owing to said said lle claim posits Trust that should the be Company: full and allowed that by amount due the of S in set-off to the amount d notes, whether other depositors in full or not. Iso shows that in accordance with established custom among banks, rawn by certain depositors upon Waterville Trust Company had sented to the Clearing House As1 in Boston, in the State of Masits. and forwarded by said Assoo the Waterville Trust Company, cks had been marked "paid" and to the account of the depositors them and a draft had been y the Treasurer of said Waterust Company on its correspone First National Bank of Boston of the Clearing House Associa1 forwarded to said Association n order was received from the prohibiting the Waterville Trust J from transacting any further . It also shows that before said s received other checks had been ed to it by said Boston Clearing ssociation for which no draft had awn. It also shows that before ler was received. certain drafts wn by the said Waterville Trust y 'upon the First National Bank on, The Atlantic National Bank on, Massachusetts. the Liberty Bank of New York City and the ational Bank of Portland, Maine. r* of certain parties, and said ad not been presented for paythe time said order was received. lso shows that the Treasurer of terville Trust Company and the of its several branches had Treasurer's or Cashier's checks vered the same to certain parties 1 therefor either by check drawn eir deposits or in cash; and that shier's checks were unpaid at the

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WATERVILLE TRUST COMPANY

Justice Spear Hands Down Decision in the Waterville Trust Co. Case. Augusta, Me., Jan. 17.-A decision was handed down by Associate Justice Albert M. Spear of the Supreme Judicial court ordering that the trustees of the Waterville Trust Co., Charles F. Johnson of Waterville and Harry L. Holmes of Fairfield, pay to all depositors and creditors whose claims have been proved and allowed, as unsecured claims and claims not entitled to preference, a dividend of 50 per cent of the face value of their claims on May 10, 1909. The Waterville Trust Co., with branches at Corinna, Newport, Dexter and Hartland, was enjoined from doing business last May on the petition of State Bank Examiner William B. Skelton of Lewiston and receivers appointed.

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$500,000 FOR DEPOSITORS. Waterville Trust Company Receivers Make 50 Per Cent. Payment. Waterville, Me., Jan. 21.-Six thousand depositors of the Waterville Trust company, closed a short time ago by orders of the state bank examiner, will receive a little over a half-million dollars. The checks were mailed last night under the direction of Charles F. Johnson and Harry L. Holmes, receivers, and constitute a 50 per cent. dividend on the total deposits. Other payments are expected later.

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A 50 Per Cent

Dividend from Waterville Trust. Six thousand depositors of the Waterville Trust Co., closed a short time ago by orders of the State bank examiner. will receive in the mails of today a little over a half million dollars. The checks were mailed Thursday night under the direction of Hon. Charles F. Johnson and Harry L. Homes, receivers, and constitutes a 50 per cent. dividend on the total deposits. Other payments are expected later.

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The Waterville Trust Co

WATERVILLE, ME., January 20. Six thousand depositors of the Waterville Trust Co., closed a short time ago by orders of the State bank examiner, will receive in the mails of tonight or tomorrow, a little over a half million dollars. The checks were mailed tonight under the direction of Hon. Charles F. Johnson and Harry L Holmes, receivers, and constitute a 50 per cent. dividend on the total deposits. Other payments are expected later.

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giving them individually, any adequate understanding of the conditions. That part of his report, which concludes the preliminary statement, is as follows: "On May 8, 1909. I secured a temporary injunction against the Waterville Trust Company, enjoining it from doing further business except the collection of money due it. On July 1st, after several unsuccessful efforts to induce capitalists to take over the company and assume its liabilities, the injunction was made permanent, and Hon. Charles F. Johnson and Harry L. Holmes were appointed receivers. "The receivers filed their bond and took formal possession July 10, 1909, at that time making the following report of its condition as shown by the books of the company. RESOURCES. Stocks, bonds and vessel property, $203,280.40 Loans and discounts, 727,031.07 Real estate. 85,082.37 Furniture and fixtures, 23,775.00 Cash items, 10,429.64 Cash on hand, 5,279.08 Cash on deposit, 211,187.19 Overdrafts, 145.58 $1,266,210.33 LIABILITIES Capital stock. $100,000.00 Profit and loss, 21,359.06 Demand deposits, 179,737.14 Time deposits, 924,738.60 Notes payable, 25,000.00 Boston Clearing House Assosociation, 5,673.53 Holders of outstanding New York, Boston and Portland drafts, 9,093.37 A. H. Emery, Corinna, Me., collection item, 608.63 $1,266,210.33 "The receivers entered at once upon the discharge of their duties, and on November 15 the date of their last ro-

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$782,684.38

"It was hoped to pay the depositors a very substantial dividend by the early part of September. but while preparations were being made for such payment notice was served on the receivers that certain depositors intended to demand separate liquidation for the several branches. This question and questions relating to certain claims for set-offs have been referred to the court, and it is altogether likely that decisions may be reached and end paid before this report leaves the hands of the printers.

"The Waterville Trust Company was organized February 20, 1893, with a very liberal charter. It should have proven one of the most prosperous banking institutions in the State. Its failure is due entirely to excessive loans to persons directly or in... connected with its management at a time when the State had no adequate legislation regulating this class of institutions.

"The control under which the bank was first established continued until 1900. This management left several investments on which considerable loss must be suffered. Included therein are $32,500 Calais Street Railway Company bonds, purchased at par in 1894, loans to W. H. Moore Lumber & Woodworking Company, now amounting to $34,026.47, and a very large investment for vault, furniture and fixtures, carried in 1900 at $42,245.45 and since charged down to $23,775.

"The present commissioner is not fully advised as to the circumstances under which these investments were made. While rather large under the conditions then existing, the trustees may have been entirely free from self-interest, except in the purchase of the

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SPARKS FROM MAINE WIRES.

The county commissioners the counties of Androscoggin and Sagadahoc met Thursday at Lisbon Falls in joint session to consider a petition of the municipal officers of Lisbon asking for the repair of the bridge over Little river between Topsham and Lisbon. As soon as the meeting was called to order, fatal defects in the notices were discovered and upon motion of Edward W. Wheeler of Brunswick, who appeared for the town of Topsham, the petition was dismissed. It was shown that the town of Topsham had never been properly notified of the meeting. At the last meeting Topsham voted to discontinue the road but no damages were assessed, as it remains a question whether the road has been legally discontinued or not. On the road in question there is not an inhabited house, but nearly all the land is owned by citizens of Lisbon and no way to get across Little river except by this bridge which for some time has been considered unsafe. It is expected the matter will be further heard later.

In a fit of temper caused by his wife's refusal to accompany him back to New York, Cleveland Savage of Livermore Falls took his own life, by shooting, Thursday afternoon at Wales. The body was found Friday morning and will be taken to Livermore Falls for burial. Besides the widow and daughter a mother, Mrs. Samuel Bean of East Livermore, and three brothers. Mark Savage of Lewiston, James Savage of Livermore Falls and Leslie Savage of East Livermore, survive. His age was 24 years.

Alfred Dionne, aged 9, son of Mr. and Mrs. Ludger Dione of Auburn, is supposed to have been drowned Friday afternoon in the Little Androscoggin river. The father identified clothing found on the bank as his son's. Searchers with boats and grapples have as yet failed to locate the body.

During the heavy thunder storm of Thursday afternoon Aldena, the 15-months-old adopted daughter of Mr. and Mrs. Bert Chandler of Burnham, met with a serious accident, which, it was feared, would cause blindness. Mrs. Chandler was engaged in ironing and the little one was playing near a screen door when a sudden flash of lightning seemed to play about Mrs. Chandler's iron. The child immediately began to cry and upon investigation it was found that she was badly burned across the forehead, eyes and nose. Medical aid was summoned and the loss of the eyesight was feared at that time. Friday morning there was some encouragement that the sight of the right eye might be all right, but the outcome is yet in doubt.

Since the Waterville Trust Co. went into the hands of the receivers, Hon. Charles F. Johnson and H. H. Holmes of Waterville there has been more or less speculation as to the final ownership of the handsome brick block on Main street Dexter, erected by the Trust Co. several years ago. It is now expected that the block will be sold within the next few weeks and the members of Plymouth Lodge, L. O. O. F., are interested in the matter, inasmuch as the lodge recently voted to make an offer for the building and a committee to handle the matter was appointed. It is understood an good authority that the lodge committee has made an offer for the building and that if the offer is accepted the lodge will become the owner of the property.

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WILL HAVE GRIST READY.

Investigating Committee Will Do Considerable Preliminary Work.

It is understood upon good authority that the plan to be adopted by the special investigating committee of the 75th Legislature will be to secure as much information as can be obtained along the lines upon which the inquiries are to be made, before the public meetings are held, so that when witnesses are summoned before the committee that body will have fully outlined the line of inquiry that is to be pursued. For that reason it is doubtful if any public hearings will be held before the middle or last of October.

Meanwhile, Hon. Cyrus R. Tupper of Boothbay Harbor, the legal counsel of the committee, works on each day at his office at the State House, going over and getting together material that will be of aid to the committee in its various lines of inquiry. It was stated, Wednesday, by one familiar with the work of the committee, that the force of workers had been increased by one by the appointment of Lewis G. Whipple of Waterville, an auditor to the investigating committee. Mr. Whipple has been employed as an expert accountant by Senator Johnson and has acted as auditor for the receivers of the Waterville Trust Co., and in connection with the affairs of the Portland and Brunswick Street Railway.

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Of 100 Per Cent

Upon The Stockholders Of the Defunct Waterville Trust Company Ordered In Decree Issued, Wednesday, by Associate Justice Spear. A decree was handed down. Wednesday, by Associate Justice Albert M. Spear in the equity case of William B. Skelton, bank examiner, vs. the Waterville Trust Co., ordering an assessment of 100 per cent. upon the stockholders of record of the defunct bank. The decree sets forth that from the assets of the Waterville Trust Co., which have been sold by the receivers, Hon. Charles F. Johnson and Harry L. Hoimes, and reduced to cash, but $60,346.74 remains and that this sum and the amount that can be realized from the sale of assets yet unsold will be insufficient by $107,058.90 to pay the claims of ell depositors in full. The doors of the Waterville Trust Co. were ordered closed by Associate Justice Spear, May 10, 1909, upon petition of William B. Skelton of Lewiston, who was then bank examiner. Justice Spear, July 2, 1909, appointed Hon. Charles F. Johnson and Harry L. Holmes, receivers. The text of the decree ordering the assessment upon the stockholders is as follows: Kennebec SS: Supreme Judicial Court in Equity. William B. Skelton, bank examiner, vs. Waterville Trust Co. This cause came on to be heard on this 22d day of April, A. D., 1912, upon the petition of Charles F. Johnson and Harry L. Holmes, receivers of the Waterville Trust Co., to ascertain and determine the value of the assets of the Waterville Trust Co. remaining in their hands and unsold, also to determine and award the amount of the compensation of said receivers for their services in said action, also to ascertain and determine whether any assessment should be ordered and decreed upon the capital stock of said Waterville Trust Co., and the amount of said assessment. And after notice and hearing upon said petition, it is hereby ordered, adjudged and decreed That the amount of money which can be realized in any event from the sale of the property remaining in the hands of said receivers at this date and unsold will not exceed the sum of $200,585.31. That, after deducting the dividends to non ent of the focè

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Receiver's Report On Affairs of the Waterville Trust Co. Senator Charles F. Johnson of Waterville and Harry L. Holmes of Fairfield, receivers for the Waterville Trust Co., have filed the following report on the affairs of the trust company with the State banking department: RECEIPTS.