The CHICAGO BANKER
A Weekly Paper Devoted to the Banking and Financial Interests of the Middle West
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Rinaman to Quit
Secretary R. L. Rinaman of the Illinois Bankers Association will not ask a re-election at the fall meeting at Decatur. The story is that he will return to the banking business over a very tempting offer. Many members of the council hope to secure R. L. Crampton for the place. Mr. Crampton’s position in the matter is not known.
V
Bankers and the Corporation Tax
The ease and rapidity with which anti-banking legislation gets under headway is equalled only by the difficulty and slowness with which a fully indorsed currency reform measure gets a start.
The resolutions passed by the Chicago clearing house last week and those passed by the clearing house association in other cities protesting against including the banks in this general corporation tax measure have borne very little fruit so far. In his original suggestion of a tax on the net incomes of corporations, President Taft excluded the banks on the ground that they were sufficiently taxed in other ways.
“I believe that the resolutions passed last week by the Chicago clearing house set forth ample reasons why the banks should not be included in this measure to tax corporation incomes,” said L. A. Goddard, president of the State Bank of Chicago. “The banks already pay more taxes than other corporations of the same amount of capital. Besides that, they meet present requirements that take them outside of the purposes of the present tax measure.”
Joseph T. Talbert, vice-president of the Commercial National, and president of the clearing house, favors accepting the present measure as a means of heading off a worse one.
“I can only say what I stated in the meeting of the clearing house last week,” said Mr. Talbert, “and that is that I fear the bankers are making the mistake made by the railroads a few years ago in opposing this tax. If this measure does not go through, another more rigid in character may be insisted upon if the people have it in mind that the corporations should be taxed on their incomes.
“If this tax increases the burden of the banks they will simply be forced to charge a little more interest, so that the whole matter gets back to the borrower of money in the end. The lighter the tax, of course, the better for the banks and their customers.”
Secretary Hanhart
The able secretary and statistician, Mr. Hanhart, of the savings bank section of the A. B. A., has been in Chicago this week planning and arranging for the meeting in September. On Thursday, Mr. Teter of the Chicago Savings Bank and Trust Company, gave a luncheon for Mr. Hanhart to meet local members of the various convention committees. As usual the section will have a fine program and early, complete, printed programs. Mr. Hanhart doesn’t know how to get behindhand or to let things drag.
Entered as Second-Class Matter January 15, 1903, at the Post Office at Chicago, Illinois, under Act of March 3, 1879
steel would form ample protection in itself, still the chief feature of its safety is the network of steel wires which will give the alarm to the watchmen.
The cost of the vault was $45,000 and it has contained as high as $700,000,000.
Mr. Eldridge has served long and faithfully in this department of the United States treasury. It is he who is to be thanked for the attractiveness and durability of the United States bank notes.
Mr. Eldridge has passed out word to the engraving department that he can now take care of all the money they can turn out and as fast as they can turn it out. He now feels reasonably secure in guarding the vast storehouse of Uncle Sam’s money.
V»
New Pennsylvania Depot at Pittsburgh
Pittsburgh, July 21.—Plans are being prepared by Architect D. H. Burnham of Chicago for one of the most magnificent railway terminal buildings in the country. It will occupy the old Cathedral site, the property of Henry C. Frick, at Grant Street and Fifth Avenue, and will meet every demand of the Pennsylvania Railroad System for years to come. The building will not only be one of great utility, but will be a splendid specimen of architecture.
Train De Luxe to Decatur
There probably will be a train de luxe to the Illinois bankers convention over the Illinois Central or the Wabash from Chicago to Decatur. The roads offer to park the train there for sleeping purposes one night. The other two nights the train would be going and returning. A sort of straw vote is being taken to decide which route will be best.
George Woodruff
George Woodruff, Joliet, has closed his presidential desk at the First National, and will not be back until October 1st. He feels sorry that he is to miss the A. B. A. but the simple life has drawing powers also.
New York Bankers to Tour Over the Chicago & Northwestern Railway
At the New York bankers convention it was announced by the chairman of the transportation committee, Charles Elliott Warren: On behalf of this committee I report that we have arranged with the New York Central and the Chicago & Northwestern railroad companies and their associated lines for a special train to Chicago, to remain there during the A. B. A. convention, and then to proceed and make the tour of the Yellowstone Park, returning to New York direct.
V
Removal of the Continental
It announced that the Continental National Bank will move into the banking rooms with the American Trust and Savings Bank, in accordance with the recently perfected arrangements, on September 1st.
JULY 24, 1909
United States Gigantic Vaults
Washington, July 18.—The gigantic vault in which is stored the bank notes as fast as they are turned out from the bureau of engraving has just been completed and the devices for safeguarding and protecting the vast millions are most ingenious.
Watson W. Eldridge is the man who stands guard over $700,000,000 of Uncle Sam’s money. Up to the time of the issuing of the emergency currency the money was stored in the treasury building but when the bureau of engraving commenced to turn in new money by the wagon load it was soon recognized that the facilities were entirely inadequate to take care of the immense amount. The old vaults were soon overrun, and the money was stored in the basement of the Union Trust Company, at the corner of H and Fifth streets, N. W. It was stacked on the floor in ordinary wooden boxes which any hatchet could have knocked to smithereens. This was an awful risk for the government to take, but nothing else could be done. True it is that additional guards were placed to watch the building night and day, but even at that it was very insecure.
Custodian Eldridge has never had the worries during his twenty years as guardian of the United States money that he has had during the past year while the new building was in process of construction, but with his new equipment his mind is again easy, for it is impossible to gain access to the money.
The vault itself is s'unken into the ground so the top of it is just even with the first floor. The only way to reach the door is by a tiny hydraulic elevator protected by an iron door opening almost at the elbow of the chief of the issues. He holds the key to this door and it would be a very difficult task to even get down to the entrance to the vault. Should a burglar once arrive at this place he would find the vault locked by four combination locks and with a system of mechanism much the same as is used in large banking and trust companies, only larger. These combinations are not known by any one man. There are four men who hold the combinations, two men knowing two combinations and two other men knowing the other two. It is, therefore, necessary that two men be present before access can be gained to the vault.
Entirely surrounding the vault and doors is a network of finely woven wires, which, if touched by an awl or a bit of a dynamite pump, immediately set off an alarm in an adjoining building, where watchmen are constantly on guard. To make sure this electrical apparatus is working properly there is a buzzer that goes off every fifteen minutes inside the vault. If the warning apparatus is not working properly this buzzer will be thrown out of commission and the watchmen will be immediately notified.
Any attempt to tamper with the electric wires leading to the vault gives a similar alarm. The whole is encased in a steel lining of harveyized steel, one-half an inch thick, and the whole vault is encased in masonry and cement more than two feet thick. While this