The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-06-09
SALARIES IN SAVINGS BANKS
srPERINTENDENT LIMB SPEiKS ON
THE SIBJECT WITH EMPHASIS.
Oncers who, he says, are Outrngeousiy
OVerpnId. to the Great Wronging OF be-
po.Itors- Banks that he says Onend- What
lie Thinks About Unclaimed Deposits.

Bank Department last evening. at tho |
Westminster Hotel. whero he is stay |
ing for few days. while his official |
dutios require his presence In the city He |
continued: our latest reports show some
startln facts in connection with savings banks I,
salaries. and sooner or later thoy must COM
mani the attention of the Legislature. There |
Is no other way to stop the growing evil. Re-
Gently. when l called the attention OF some
savings bank trustees to this matter they said.
'Oh. that's our business; you have nothing to
do with the salaries We pay"
How does that affect the bank dcpositors2"
inluired tho reporter.
It must decrease the amount Of interest
paid to them" replied Mr.. Lamb. The trus-
tces have the power TO say whether the deposit
tors shall receive the maximum or minimum
rate o interest. II those trustees see fit to pny
small interest to their depositors and large in
tercsi to their friends they have the power at
present to do So"
Are any of the high salaries in savings
banks paid to relatives Of trusteA2"
"Any2 l should say there are many. Al
though the trustees may not receive money for
their own services. they can. and some OF them
do. vote money to their sisters. cousins. and
hunts. nguratively speaking"
Are you at liberty TO name any bank whero
such high salaries are paid to relatives OF
trustees2"
Tho official report shows that In the Brook
lyn Savings Bank the cashier who is a son-in-
law Of the President. receives a salary OF $1,000
a year Besides this. he gets his house rent
which is WORTH some say. 81 900, and others say
81 500 n year In addition. making n total salary
Of 900 or ti0. 500. The bank is safe enough
according TO our examination. 1t has deposits
OF about fifteen Millions and a very handsome
surplus; but such n salary is enormous. and. |
say. outrageous. because 1t comes out OF the
depositors. and most OF 1t ought to be paid 10
the depostors in interest Why the annual saa
res Of the Comptroller of the Currency and
Deputy Comptroller ara only 81 500. The As
sstant Secretary Of the United States Treasury
only gets "a 500. and the Commissioner OF PEN
sions only 81 COO. The three Judges OF the
United States District Courts only get $4,000
each-less than half that the minor officers Of
savings banks receive"
Do you recall any other instances Of high
salaries in savings banks2'
The President Of the bank that trusted the
combination to ianitor uhe Manhattanl got
over $4,000 year for several years-part In
salary and part In percentage. The Presidents
OF the Bowery Savings Bank and the Seaman's
Savings Bank. two OF the largest banks. get
5000 each yet the Actuary OF the Broadway
Savings Bank gets $1,000. and the Cashier Of
the Williamsburgh Savings Bank IS 900. while
the Secretaries Of the Citizens Savings Bank Of
New York and q the Erie County Savings Bank
OF Buffalo get 1880 each The aggregate sal
aries OF the largest salaried officers in at least
yes exesod-ths salaries Of the three high
est paid officers Of the State Government In any
department except the Executive. The Comp
troller OF the Brooklyn Savings Bank gets 81. 900
per year He was formerly trustee. became
6snkrnp. IN m hs gHshsSs IesSned mn ms s-
him. Our examiners cannot lind any evidence
that he performs service Tor the money.
. A har INV pth IA Wall-naid
tives OF savings bank ofiicersW
co. Yes; there was son-in-law Of a late Presl-
dent o. the Union Dime Savings Bank getting
a salary OF $1,000. Our examination led 10 his
being put out OF Office. and he has not been able
e. secure any salary in any business SINCE that
know or Tint seems 10 me to show that he
was not worth the salary OF $4,000 that was paid
him out OF the interest earned by the money OF
How about the soundness Of the Brooklyn
Savings Bank and the Broadway Savings Bank.
OF which you have spoken as paying high
We regard them as sound That is pecu-
liar part Of the matter. In former times we
generally found that high salaries were oilenest
paid by unsound banks. but now many banks
these high salaries. Some Of the discrepancies
are very remarkable. The National Savings
Bank Of Albany paid only 5000 in salaries ior
mne6' or ,is 22e. The Rochester Savings Bank
paid slS452 having on deposit N4l6OQO;
whi.o the Erie County. with $S.6ls,00 OF de.
poslis, paid the enormous sum q s26 5i9, and
pDsit & paid ss6s9o In other eases there lie
widely different ratio OF expenses to the
How are these excessive salaries to be cor
rectel"
the Bank Department it must be done By legis-
laiion. ! cal II outrageous"
DO you think the savings banks are doing
more or less business this year than usualf'
They are doing much more business than
nSun'-more than for I've or six years previous.
There is strong movement 10 reduce the rate
OF interest. so great is the amount OF money
ofl"red for deposit. Savings bank officers,
many Of them. think that plenty oil money can
be lgl at four per cent"
How do you account for this ?"
The people do not know what to do with
their money to invest 1t safely. Suppose they
SAVINGS banks and ask 10 have their bonds kept
a. special deposits Unless they pay the safe
deposit companies they have no safe place 10
keep their bonds. ! have heard Of even some
savings banks for safe keeping"
How about the unclaimed deposits in saw
ever include the unclaimed deposits? 2"
No. But what is an unclaimed depositr 4
few years ago the Legislature required the Bank
Department to get reports from the sayings
banks OF the accounts which had remained un-
oasos,. after those reports were made. We got
news from the bank officers that there never
MAS such stir IN the mater OF OLD accounts IN
man claimed $1,000 that h9 had deposited
twenty-three years before. He was q seaman nan
and had been sailing round the world all thai
time / heard Of other cases whore depos;
itors had left their accounts undisturbed
Tor many yea!7 and at their death ,iatt
heirs appeared, and obtained sums amounting
with the Interest to two or thrts times the prin'
cipal My opinion is that the value OF up'
claimed deposits is very much exaggerated
heard Of one case where the original deposit
remained unclaimed for forty-nlne years. and
was then paid by the bank. Ii would be very
hazardous thing for the State to connscate a
bank account merely because II had lain un,
called for for term q years. The baak would
Sill be liable 10 be called upon for the money
ALBANY, June 7.-Throe bills relative to
savings banks have been signed by the Cover
nor and Superintendent Lamb says they repre-
sent the best legislation which has been made
IN the interest of depOsitors for years; Chapter
Az gives authority TO the Superintendent 10 do
mund Of the Attorney General certain proceed
ings for the removal Of trustees OF a bank foI
any abuse Of trust Heretofore there hns been nc
means oi removing trustee. The bill further
provides that when n corporation is certainly
insoyent. the Superintendent OF the Banking
Department may take possession OF all the
property Of a bank until the further order OF
tho court. This particular provision Is required
by the fact that the trustees make way with
larg part Of tho assets after the court has de-
c.nrnd their bank insOvcnt and ordered lta
suspension. Every receiver Of bank by the