MASSACHUSETTS. 



treasurer of every savings-bank is required to 

 make a report unnunlly to the commissioners, 

 giving information in detail of its condition 

 and business. Such institutions are also made 

 linl'lo to examination by committees of the 

 Legislature. This act was approved April 

 27th. 



Among the acts of incorporation of the ses- 

 sion wus one for a " Family Bunk." This is a 

 somewhat peculiar institution, combining the 

 purposes of a savings-institution and a life-in- 

 surunce company. A capital of $500,000 in 

 shares of $50 was authorized, semi-annual divi- 

 dends being restricted to four per cent. All 

 transactions are to be on a " gold basis," no 

 paper or promissory currency being received 

 or paid except at its market value in gold coin. 

 Investments are to be regulated, so far as prac- 

 ticable, by the provisions of the savings-bank 

 act. Policies of life-insurance are issued, but 

 never to extend beyond the age of seventy- 

 five, and always to have a surrender value pay- 

 able at the end of each and every policy year, 

 ascertained by the " combined experience-ta- 

 ble of mortality " at its " legal reserve or net 

 value " at the date of surrender, with four per 

 cent, interest, " less a surrender charge of six 

 per cent, of the present value of the future in- 

 surance to be done under the policy if contin- 

 ued." Premiums are to be paid yearly, and 

 their " three elements " kept distinct on the 

 books, viz. : the margin for expenses and ex- 

 cess of loss ; the normal cost of the bank's 

 risk ; and the "self-insurance deposit," all pre- 

 calculated by the " combined experience " ta- 

 ble, with interest at four per cent. Deposits 

 may be made independently of the life-insur- 

 ance policies, as in ordinary savings-banks. 

 The proceeds of surrender charges are to be 

 credited to a distinct fund to be held in addi- 

 tion to the legal reserve of four per cent. 

 The control of the corporation is vested in 

 the shareholders, but no one person can have 

 more than thirty votes. A dividend not ex- 

 ceeding eight per cent, may be declared yearly 

 out of any surplus that remains after providing 

 for all liabilities, including those of policies; 

 but any profit to the stock over that of its own 

 Investment must come from the insurance done 

 by the bank, and not from the interest of the 

 self-insurance fund or independent deposits. 

 Any remaining surplus after the declaration of 

 dividends is to be distributed among the poli- 

 cy-holders according as their premiums and 

 self-insurance deposits have contributed to 

 produce it. Interest on independent deposits 

 is paid as in ordinary savings-banks. The au- 

 thor of this scheme is Elizur Wright. 



An act was passed for the relief of the East- 

 ern Railroad Company and the securing of its 

 debts and liabilities, which authorized the 

 company to mortgage all its property to three 

 trustees to be appointed by a Justice of the 

 Supreme Court, and to issue certificates of in- 

 debtedness to be exchanged for its existing 

 debts and obligations. These certificates of 



indebtedness are to be payable in gold on the 



1st of September, 1906, und for the lirst three 

 years from September 1, 1870, bear interest 

 at the rate of three and u half per cent., for 

 the succeeding three years at the rate of four 

 and a half per cent., and thereafter at the rate 

 of six per cent, in gold. All claims are to he 

 adjusted by the three trustees, with the right 

 on the part of the claimants to have commis- 

 sioners appointed by the Supreme Court to de- 

 termine the same ; appeal may be made from 

 these commissioners to the courts for the pur- 

 pose of having the claims determined by a 

 jury. When claims have been adjusted, cer- 

 tificates of indebtedness shall be issued for the 

 amount, to take the place of all other evi- 

 dences of debt. The stockholders and certifi- 

 cate-holders are to hold separate meetings, but 

 at the same time and place, the former choos- 

 ing three and the latter six of the nine direc- 

 tors of the corporation. When the amount of 

 the certificates of indebtedness shall have been 

 reduced to $10.000,000, the power of the hold- 

 ers of the certificates to choose directors shall 

 cease. Any sale of property by the cotpora- 

 tion must have the assent of the trustees, and 

 the proceeds may be used for discharging in- 

 cumbrances on the remaining property. After 

 the expiration of six years, or after liens, mort- 

 gages, and incurabrances, shall have been dis- 

 charged, if at an earlier date, all the proceeds 

 of the sales of property and the annual net 

 earnings of the road are to be paid into a sink- 

 ing-fund in the hands of the trustees, for the 

 redemption or purchase of certificates of in- 

 debtedness, at a rate not exceeding par, until 

 their amount is reduced to $10,000,000, after 

 which the sinking-fund shall be accumulated 

 and invested to secure the payment of the cer- 

 tificates at maturity. The possession and con- 

 trol of the road are to remain in the corporation 

 until there shall be default in the payment of 

 interest or principal of the certificates of in- 

 debtedness, and, in case that occurs, the trus- 

 tees may take possession. If the default con- 

 tinues for two years, the foreclosure shall be 

 complete, the property vested in the trustees, 

 and all equity of redemption barred. The cer- 

 tificate-holders may then organize thernselvet 

 into a corporation and exchange their certifi- 

 cates of indebtedness for certificates of stock 

 in the new company. 



Three separate acts were passed relating to 

 elections. One of these declares that any per- 

 son voting or attempting to vote upon any 

 other name than his own, or giving more than 

 one ballot at one time, shall be punished by 

 imprisonment in the House of Correction not 

 less than three months or more than one year, 

 and also provides for the punishment by fine 

 and imprisonment of any person convicted of 

 bribery at an election. Another provides for 

 the preservation of ballots until a disputed 

 election is determined, and their destruction 

 then takes place, and gives to the boards of 

 aldermen in cities authority to examine the re* 



