MATURED SHARES IN CO-OPERATIVE BANKS.

By an act of Legislature passed in 1915 co-operative banks were permitted to allow members whose shares have reached the matured value of $200 each the option of leaving some of these shares as an investment in the bank.

Shareholders in 88 co-operative banks have availed themselves of this privilege, and these shareholders own 42,049 shares, valued at $8,409,800. These matured shares, upon which no periodical payment of dues is required, are represented by matured share certificates, and the return to the shareholders owning them is about one-half per cent. less than the regular dividend credited to those shareholders who pay monthly dues on unmatured shares.

EXAMINATION OF THE AFFAIRS OF THE TREASURER AND RECEIVERGENERAL OF THE COMMONWEALTH.

The examinations made by this department during the year were as follows:

The first examination was made as of the close of business January 27, 1919, in behalf of the joint committee on ways and means as required by chapter 414 of the Acts of 1908, and the second was made as of the close of business October 7, 1919, in accordance with the provisions of section 68 of chapter 6 of the Revised Laws, at the request of the Governor and Council.

SAVINGS BANK LIFE INSURANCE.

The eleventh full financial year of Savings Bank Life Insurance ended October 31, 1919. This report includes the annual statements for the year of the four banks which have undertaken the business of life insurance under chapter 561 of the Acts of 1907.

The four banks are the Whitman Savings Bank of Whitman, the People's Savings Bank of Brockton, the Berkshire County Savings Bank of Pittsfield, and the City Savings Bank of Pittsfield.

These banks issued and revived during the year ended October 31, 1919, 14,104 policies, representing $4,123,826 of insurance. The net gain is 7,441 policies for $2,590,851 of insurance. There were in force in all four banks on October 31, 1919, 28,148 policies for $12,374,090 insurance, and 106 annuity contracts representing annual

Under the Savings Bank Insurance Law the insurance departments of the savings banks are prohibited from employing solicitors or house-to-house collectors. The expense of commissions which is thus saved comes back to the policy holder in the form of dividends at the end of each year. The savings bank life insurance plan appeals to the people on the basis of thrift, and especially to the savings bank depositors. It is recognized that some inexpensive substitute must be provided for the soliciting agent, consequently the banks are permitted to establish agencies throughout the State in mills, shops and factories, and public places, including other savings banks and trust companies. The mechanism whereby these agencies serve as feeders to the insurance banks is simple: an employer becomes an agency for the insurance banks by signing an agency agreement, in which he agrees to collect the premiums from his employees on their policies and remit them to the banks once a month. The employer appoints an agency secretary, usually the paymaster, and the agency is entitled to two per cent of the collections so made. Most of the employers waive this collection fee in order that they may say to their employees that the service is rendered absolutely without compensation to the employer, while other employers take the collection fee and give it as additional compensation to the agency secretary. The employee usually signs an authorization which is handed to the paymaster and authorizes him to deduct the amount of the premium from the pay envelope when the premium comés due. Thus the evil of lapsing policies, which was ever-present in the private industrial companies, and formed a large part of the cause of the high cost of insurance, is mitigated in the banks; and the initiative to lapse the policy is placed on the employee, because his authorization acts until he revokes it, whereas in the companies the policy holder must take the initiative to pay his premium; if he does not, his policy lapses. Premiums are also paid direct to the banks or to a public agency.

There are to-day throughout the State about 250 agencies in mills, shops and factories; there are 47 savings bank public agencies, 19 in trust companies, 2 in national banks, and 14 other public agencies. The public agencies in banks and trust companies are:

Assabet Institution for Savings, May- Melrose Savings Bank.

Chapter 246 of the Acts of 1914 amended section 15 of chapter 561 of the Acts of 1907 by requiring the mortality experience of all savings and insurance banks to be averaged and unified, so that it makes no difference in what bank a death occurs, it is distributed over all banks. This applies only to the mortality experience and is in the interest of greater security. In all other respects the insurance departments are separate in their operation. The invest

ments are in the same kind of securities as those of the savings banks.

The system is entirely mutual and dividends are paid to policy holders every year. In addition to the regular dividends paid by the four savings banks with insurance departments for the year November 1, 1919, to October 31, 1920, two of the banks are paying extra dividends, equal to 75 per cent of the regular dividends, to their annual premium policy holders and an extra dividend equal to 50 per cent of the regular dividends to their monthly premium policy holders.

The banks issue two forms of policies, monthly premium and annual premium policies. The monthly premium policies are designed to take the place of the weekly premium policies issued by the companies and are issued at a net cost approximately 35 per cent less than by the companies. Insurance on the monthly premium basis is principally for amounts less than $500, and is now issued from age two next birthday to age sixty-five next birthday.

Annual premium policies are issued for amounts of $500 or $1,000, and with four banks issuing insurance a maximum of $4,000 insurance may be obtained.

Annuities, both immediate and deferred, are issued, each bank being limited to a maximum yearly payment of $200.

Insurance is also written on the group plan, and already thirtyfive Massachusetts employers have availed themselves of this opportunity to obtain insurance for their employees.

SCHOOL SAVINGS BANKS.

The law relative to the collection of savings from school children has now been in force for eight years. On October 31, 1919, there were 56 savings banks receiving deposits of this nature.

The reports of these banks show that deposits are being received from 293 schools located in 58 cities or towns, the system being operated in 2,333 schoolrooms.

The total number of enrolled scholars in the 293 schools on October 31, 1919, was 96,612, and 44,740 of these were depositors in the school savings banks. The amount of deposits received from this source, and other information showing the results being obtained are given below:

Number of deposits received from the inception of the system to
October 31, 1919,

Amount of such deposits,

Number of deposits received during the year ending October 31,
1919,

Amount of deposits received during the year ending October 31,
1919,
Number of withdrawals (not including amounts transferred to

savings bank pass books) from the inception of the system to October 31, 1919,

Amount of such withdrawals,

Number of such withdrawals during the year ending October 31,

3,845,542

$1,436,756 01

211,887

$115,164 50

168,748

$356,533 08

Amount to the credit of depositors in the school savings banks on
October 31, 1919,

Number of scholars to whom savings bank pass books have been issued from the inception of the system to October 31, 1919, Number to whom pass books have been issued during the year ending October 31, 1919,

Amount of deposits transferred from school savings banks to savings bank pass books from the inception of the system to October 31, 1919,

Amount so transferred during year ending October 31, 1919, Dividends credited to school savings accounts during year ending October 31, 1919,

CERTIFIED PUBLIC ACCOUNTANTS.

$78,240 38

106,428

4,119

$1,005,402 97

$64,576 88

$1,683 31

The eleventh examination of applicants for certificates as public accountants was held on November 13 and 14, 1919, when 116 persons presented themselves for examination. These examinations are conducted by a Board of Examiners, appointed by and acting in conjunction with the Bank Commissioner, but as the Board has not yet rendered its report, the result of the last examination cannot be given at this time. On December 31, 1919, there were 182 accountants holding certificates of registration under the laws of this Commonwealth. As a result of the examination held in November, 1918, 25 persons were granted certificates.

BOARD OF BANK INCORPORATION.

This Board, consisting of the Bank Commissioner, Treasurer and Receiver-General and the Commissioner of Corporations, is constituted by chapter 590, Acts of 1908, to pass upon all applications for