The precise steps to be taken by the association to comply with section 5 are not clear. It does seem clear, however, that the separation of the bank stocks from the other securities would in time (1) put an end to further use of association funds to purchase bank stocks and (2) insure the management or distribution of a portion of the association's assets solely in the interest of the shareholders. The earlier the separation occurs, the greater will be the benefit to the shareholders of the association. So far as Shawmut Association is concerned, I see no reason why the separation should not be required forthwith after the passage of the legislation. Address Number of shares Name of shareholder 2111 Hyde St., San Francisco 9, Calif. Miss Martha L. Allen. Rosalie Anna Budington. Frznk O. Campe, Alma M. Campe. 1 Montgomery St., San Francisco, Calif. 1811 Whitley Ave., Hollywood 28, Calif. Post Office Box No. 4043, San Francisco, Calif. 144 Woodland Way, Piedmont, Calif. 818 Steiner St., San Francisco, Calif. 98 Battery St., San Francisco 6, Calif. 720 South Normandie, Los Angeles 5, Calif. 358 21st Pl., Santa Monica, Calif. Spear and Mission Sts., San Francisco, Calif.. 219 San Fernando Way, San Francisco 16, Calif. 200 200 200 195 100 200 100 600 100 100 100 100 50 100 (1) 550 50 120 400 200 300 250 75 50 100 400 140 100 120 100 50 200 150 150 100 110 (1) 100 250 100 30 200 200 100 50 100 65 132 North 8th St., Santa Paula, Calif. 1811 North Whitley Ave., Hollywood 28, Calif. 106 West 1st St., Moscow, Idaho. Craigmong, Idaho. 621 East A St., Moscow, Idaho. do Name of shareholder James J. Minot, Henry J. Sargent, and James J. Minot, Henry J. Sargent, and Marian W. Minot. Miriam Sears Minot. Miriam Sears Minot, account of Constance W. Minot; Miriam Sears Minot, account of Miriam Mason Minot. Louisa Minot Moseley, Miriam Sears Minot. James J. Minot and Henry W. Minot, Trs.-u/ind. James J. Minot, Mar. 21, 1935. James J. Minot and Henry W. Minot, trustees underwriter Elizabeth W. Minot, Art. 4. William Prescott Wolcott. Stephen A. Gillett.. Elizabeth H. McGalliard. Elizabeth N. Bergin. Joseph Ambs.. George H. Anderson. Mrs. Paulina Cantormine. Oscar Carman. H. L. Dunham. Helen Eggerts.. Gertrude W. Favre. Amy E. Gilchrist. Miss Lulu Holmes. Anson G. Hutchinson.. Laurence H. Largent. Victor M. Johnson.. Colfax, Wash 350 East 3157 30th, Spokane 10, Wash. 2041⁄2 Blaine St., Pullman, Wash. 50 465 501 Spokane and Eastern Bldg., Spokane 8, Wash... 50 718 West 18th Ave., Spokane, Wash. 75. 2216 Monito Blvd., Spokane 10, Wash. 100 43 South Palouse St., Walla Walla, Wash. Colfax, Wash 50 100 Colville, Wash. 46. 306 East Nora St., Spokane, Wash. 59 Dishman, Wash. 100 NOTE. Where stock is of record in name of broker, customer's name is listed. SUPPLEMENT TO EXHIBIT A OF STATEMENT OF JOHN RICHARDSON, DATED JUNE 2, 1947, REGARDING S. 829 1449 Poinsettia Pl., Hollywood 46, Calif. 5232 Golden Gate Ave., Oakland, Calif. 33, 894 50 (1) 50 200 130 (1) 155 635 200 100 485 SHAWMUT ASSOCIATION REPORT FOR YEAR ENDED DECEMBER 31, 1946 To the shareholders of the Shawmut Association: SHAWMUT ASSOCIATION, We submit herewith the balance sheet of the Shawmut Association as of Decem ber 31, 1946, together with a statement of income and surplus for the year ended December 31, 1946. There are submitted also a classification of investments, a list of holdings as of December 31, 1946, and a combined statement of condition of the 11 suburban banks as of December 31, 1945, and December 31, 1946. Shawmut Association owns a majority of the outstanding common shares of each bank. WALTER S. BUCKLIN, NORMAN I. ADAMS, 1 Shawmut Association balance sheet Dec. 31, 1946 1 Trustees. Securities at quoted market prices: ASSETS Railroad bonds (aggregate cost per books $483,280). Shares of capital stock of 11 suburban banks 2. $555, 759.00 618, 544. 00 4, 901, 731. 00 3, 382, 009. 45 371, 996. 79 9, 830, 040. 24 1 Dividends receivable of $41,349.76 declared on stocks selling ex-dividend at Dec. 31, 1946, are not included in the above statement, as dividends are accounted for on the books on a cash basis. 2 The shares of stock owned in each of the 11 suburban banks are a majority of each bank's outstanding common shares and a majority of the preferred B shares of the Wakefield Trust Co. The banks stocks are stated above at the amount of the net assets, per statements of condition of the respective banks Dec. 31, 1946, applicable to the shares owned by Shawmut Association. Commitment: At Dec. 31, 1946, the association had a conditional commitment to underwrite an issue of 5,000 additional shares of common capital stock of the Wakefield Trust Co. at a price not to exceed $40 per share. Shawmut Association balance sheet Dec. 31, 1946—Continued Accounts payable.. LIABILITIES AND CAPITAL Reserve for Federal income tax....... Provision for estimated additional Federal income taxes on net gains which would be realized if all investments were sold at amounts carried above. Common shares of no par value, amount determined by the Add unrealized appreciation (excess of quoted market over cost) of securities other than bank stocks ($1,141,765.21) less above provision of $254,000 for related taxes.. Balance for 390,000 shares outstanding after deducting Shawmut Association statement of income, and surplus for the year ended Dec. 31, 1946 Income: Cash dividends from securities other than bank stocks (including $2,475 dividends on preferred stock in excess of the stated annual rate thereon). $246, 405. 00 Cash dividends from bank stocks.. 110, 650. 60 Net earnings before participation by the National Shawmut Bank and before dividends to shareholders__. 940, 600. 83 Net participation of the National Shawmut Bank.. 17, 691. 58 Net earnings for the year. 922, 909. 25 Deduct: Dividends to shareholders (80 cents per share) __ $311, 971. 80 394, 769. 44 706, 741. 24 216, 168. 01 Add: Adjustment of tax provision for prior year. 10, 345. 74 30, 225. 85 40, 571. 59 Shawmut Association statement of income, and surplus for the year ended Dec. 31, 1946-Continued NOTE. Change in unrealized appreciation (excess of quoted market over cost) of securities (other than bank stocks) after allowances of $510,400 for 1945 and $254,000 for 1946 for Federal income tax that would have been payable on the gains had they been realized: Dec. 31, 1945. Dec. 31, 1946__ $256, 739. 60 3, 233, 727. 59 3, 490, 467. 19 1, 686, 420 887, 765 Change for the year 798, 655 SHAWMUT ASSOCIATION BOSTON, MASS., January 24, 1947. To the Trustees and Shareholders of Shawmut Association: We have examined the balance sheet of Shawmut Association at December 31, 1946, and the statement of income and surplus for the year then ended, have reviewed the system of internal control and the accounting procedures of the association, have examined accounting records and other supporting evidence by methods and to the extent we deemed appropriate, and have inspected securities held by the custodian for account of the association. Our examination was made in accordance with generally accepted auditing standards applicable in the circumstances and included all procedures which we considered necessary. In our opinion, the annexed balance sheet and statement of income and surplus, on the basis of carrying bank stocks as indicated therein, present fairly the position of Shawmut Association as at December 31, 1946, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. LYBRAND, ROSS BROS. & MONTGOMERY. Classification of investments at Dec. 31, 1946 1 The shares of stock owned in each of the 11 suburban banks are a majority of each bank's outstanding common shares and the majority of the preferred B shares of the Wakefield Trust Co. The bank stocks are stated above at the amount of the net assets, per statements of condition of the respective banks Dec. 31, 1946, applicable to the shares owned by Shawmut Association. 2 Before deducting $254,000 provision for estimated additional Federal income taxes on net gains which would be realized if all securities were sold at market as shown above. This is the equivalent of $0.65 per share. Shawmut Association list of holdings at Dec. 31, 1946 RAILROAD BONDS Par value Market Dec. 31, 1946 St. Louis, San Francisco Ry. Co. 48, series A, due 1950. Represents proceeds from sales on a "when issued" basis of securities and cash to be received under plan of reoganization of this railway effective Jan. 2, 1947, in exchange for the bonds now owned. |