17
THE CHICAGO В A N К E R
September 4, '/pop]
CEAPTEM 1EC®1®
(Department of Chicago Banker)
An Open Forum Dedicated to the American Institute of Banking in Which to Advance the Great Movement for Systematic Education and Universal Membership
Chicagoan Elected Director of New York Bank
J. Ogden Armour has been elected a member of the board of directors of the National City bank of New York, of which another former Chicagoan, Frank A. Vanderlip, is president. The National City is the largest bank in the United States, having more capital than any other, with one exception which has the same amount, and considerably the largest amount of deposits.
Mr. Armour is understood to hold a fair amount of the stock of the National City, but his chief banking interest is in Chicago. He is a director of the Continental National and the Live Stock Exchange National and also owns considerable stock in the Central Trust Company and the Illinois Trust and Savings bank.
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Banner State for Savings Deposits
New Yrork State is the banner state for deposits in savings banks. Such institutions in that state have more than one-third of the deposits of their class in the United States; more than those of the United Kingdom, Holland, and Belgium combined; more than those of any foreign nation except Germany; they contain almost one-ninth of the total savings bank deposits of the entire world.
Bankers to Tour
At the close of the A. B. A. convention a tour-ing special will leave Chicago over the Chicago, Northwestern and Union Pacific for a 14-day-trip to Salt Lake, Lake Tahoe, San Francisco, Portland, Seattle, and return. The train will be of the de luxe order, and the entire expense will be $185 per person. The service will be the best, and bankers who went to Denver last year over the Northwestern know what that means. The best, and only the best, hotels will be used at all stops, such as a day at Tahoe Tavern, Portland House, Portland, Washington, and Butler at Seattle, and two days at the St. Francis, San Francisco. The great Mt. Shasta route will be included. S. A. Hutchison, tour department for the Northwestern and Union Pacific, 212 Clark Street, Chicago, will send particulars.
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Investigating Land Fraud Cases
Lewiston, Ida.—Peyton Gordon of Washington, D. C., special assistant attorney to U. S. attorney-general, is here, and states he came to examine evidence in the North Idaho land fraud cases, in which Kester, Kettenbach, Dwyer and Robnett were involved. Mr. Gordon says that the cases will be tried again. Special agents have been here for the past two months looking up evidence, and since the above defendants have been so closely allied with the Lewiston National Bank in the past, it is believed that Mr. Gordon is also here to look into evidence surrounding the alleged bank shortage of more than $130,-000—for which C. W. Robnett and J. E. Chapman, former employees of the bank, have been held for federal court trial. Claude Gatch, national bank examiner, is also here.
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New Bank Capitalized at $16,000
A new bank, the People’s Bank of Stithton, has been Organized at Stithton, Ky., with a capital of $16,000. Thos. Brown, president; W. R. Hart, vice-president; Eugene Yates, cashier.
banks that they obey to the letter, and with a spirit of alacrity and fidelity, the new law whatever it may be.
In the states of Nebraska, Kansas, Oklahoma, and Texas, with varying degrees of intensity, there is a guaranty law. In the state of Nebraska there is an injunction proceeding to hold up the operation of the law until it can be laid before tne federal courts to determine its constitutionality. In Kansas there is conflict between the national banks, under their self-organized company of insurance, and the state banks under the eniorced guaranty by law of the state over the matter of insuring deposits that bear a higher rate of interest than three per cent. There was talk of a call of the legislature to straighten out the difficulty, but so far there has been no call, the attorney-general of the state holding that under the rights of the charter he can so control the operation of the national bank guaranty corporation that he can prevent a conflict over this point.
Other states are not concerned with this difficulty only in so far as it calls attention to the fact that this so-called panacea is working hardly and doubttully, and will likely show itself in its true colors before the meeting of state legislatures, and thus eliminate itselt from the horizon of future banking. This is illustrative of the thought just spoken that the way to repeal a bad law is to enforce it.
But there are many good laws which have been put on the statutes of the various states which are an aid to our system of banking, and which are perhaps the suggestion of bankers’ associations and ought to be obeyed. Indeed the more the banks of the country show the spirit of cooperation with our state legislatures the sooner some of the dangers of banking may be eliminated by the passage of uniform state laws governing commercial paper and like matters.
It would be a fine thing if the bankers in their group meetings at this time would take up these new laws and analyze them and explain them one to another. The banker is always pressed for time. Every minute of the working day he is engaged with a vital and real problem that must be settled somehow at once. When he is through with the grind he is apt to pant for some sort of restful recreation, and for this reason he does not have the time to go to the original sources of information and post himself on the operation and effect of these new statutes. So that if one member will outline the meaning and purpose and rule of the new statute to others at group meetings, he will confer a distinct favor on his fellow workers in the business.
Let the new laws be considered seriously and carried out promptly in the interest of future good laws on like lines.
Arthur Reynolds
Arthur Reynolds, of Des Moines, on account of pressing business matters was compelled to withdraw his acceptance for an address to be delivered at the Wyoming Bankers Association convention on September 8th.
Merchants and Planters Bank
The new Merchants and Planters Bank, Lamar, S. C., has elected the following officers: Duncan McKenzie, president; L. J. Beasley, vice-president, and D. Easterling, Jr., cashier.
Oakland Chapter
Kenneth A. Millican of the Central Bank of Oakland, California, has been elected president of the Oakland Chapter of the American Institute of Banking, to succeed Frank M. Cerini, who has been elected a member of the executive committee of the national society. Charles F. Duns-moor of the Oakland Bank of Savings has been chosen vice-president; J. S. Killiam of the Union Savings Bank was re-elected treasurer, and Golden L. Downing of the California Bank was elected secretary. In addition to the officers the board of governors elected for the ensuing year are W. F. Morrish of the First National of Berkeley, S. C. Scott of the Farmers and Merchants’ Bank of Oakland, A. J. Anderson of the First National of Oakland, C. F. Rillieto of the Security Bank. and. Trust Co.., and F. J. White of the Oakland Bank of Savings.
Cincinnati Chapter
The Cincinnati Chapter of the American Institute of Banking met and arranged for the annual outing which will be held at Madison Park, Sunday, September 12th. Five hundred dollars in prizes for field-day events will be given. About the first of the month the chapter will open its new clubrooms in the Atlas National Bank building, Cincinnati, Ohio.
W. C. Cummings
W. C. Cummings has been elected vice-president, cashier and a director of the Drovers’ Trust & Savings Bank, Chicago, in place of Charles S. Brintnall, resigned. Murray M. Otstott has been appointed assistant cashier.
West Orange National
Newark, N. J., Aug. 30.—Although the stockholders of the West Orange National have not yet elected their board of directors or officers, it is certain that the presidency will go to T. H. Powers Farr, who lives on the mountain ridge. None of the other officers have been settled upon as yet. The cashier is to be Clarence A. Cod-dington, now with the Seaboard National of New York. It is expected that the concern will be able to open its doors for business by September 1st, or shortly after that date.
About eighty per cent of the $100,000 capital stock has been sold, at 110, in blocks not exceeding ten shares each. The promoters of the bank ceased some time ago to push the sale, as it is expected that the unsold shares can be disposed of at any time with no trouble.
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The New Banking Laws
In states where legislatures met during the winter it is now about time for the general laws enacted to go into effect. It may be a matter of a few months’ difference, according to the date of the adjournment, or the special laws and conditions which make the new law operative. But it is time at least for the bankers of the country to take note of any changes which have been made and prepare to meet them in the spirit of loyalty and good will.
It has long been an adage that the way to escape a bad law is to enforce it. The people in a word may be depended upon to repeal any statute which, on investigation and trial, proves to be for the worst instead of the best interests of the people. And it is especially incumbent on the