The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-04-06
FOR reform IN BANKING
Recommendations in Report Of the
State Commissioner.
PLAN TO TAX FOREIGN SCHEMES
Commissioner Suggests That Fees
Should De Increased to Make the
Banking Department Seif.Sus.
taining-Other Suggestions

Harrisburg. Pa, April 5.-The first
annual report of the state banking
commissioner will be issued in a few
days. Itsgives the condition of the
various 6anking institutions through
out tue state and shows advantages
that have accrued to these and the
business world through the reorgani-
zation of the banking department a
year ago. The report states that there
is at this time $374.24l,7S4.S3 Of trust
funds In the hands Of corporations.
Only small percentage of the building
and loan associations have been ex-
amined and the second volume Of the
report will deal with these.
Over a thousand associations have
thus far reported to the department.
The Commissioner, Gilkeson, thinks the
foreign associations should be COM
PEELED to pay larger fees for the privi-
lege of doing business in the state and
he suggests that the next legislature
should take hold of the subject Of build
ing and loan associations vigorously.
The commissioner also recommends
that the fees should be increased so
as to make the banking department
self-sustaining. The associations con-
Quoted under the national system"
are escaping, in the judgment of the
commissioner a large share of the bur-
uenS OF taxatlOn.
THE RECOMMENDATIONS.
The following Is summary Of the
commissioners recommendations:
First-That applications for charter of
trust companies and ether financial insti-
tutioHs should be submitted to the COM
missioner Of banking for his approval.
Second-That no institution should be
permitted to make loans upon the secur-
ity Of its own capital stock, and that
legislation should as soon as possible be
had to correct this abuse.
Third-That the percentage Of loans TO
directors Of trust companies and other
financial institutions should, unless named
in the acts incorporating the same, BE
fixed by law. ....
Fourth-That fixed percentage of cash
in proportion to deposits should be re-
Quired by law to be kept in the vaults of
banks. trust companies. ETC.. and called
the reserve.
Fifth-That an act be passed making
the directors Of each of the financial instt-
tutions Of the state jointly and seyerally
liable in their Individual capacities for de-
claring any dividends which shall impair
the capital thereof.
Sixth-That the oaths Of directors in all
the financial institutions Of the state
should be required to be filed In this de-
seventh-That all corporations having
power to receive and administer trusts
should be required to set apart perma-
nently definite percentage Of each diyi-
dend declared as a reserve for the addt-
tional protection Of the trusts committed
to their custody.
Eighth-That, foreign corporations COM
ing under the supervision Of the banking
department and applying for authority to
transact business within the state should
be frat submitted to the commissioner
of banking for his approval.
Ninth-That no individual, firm or in
corporated company he permitted to use
in the conduct Of banking business any
name, sign or device resembling In any
respect that Of a bank or other financial
corporation.
Tenth--That a uniform rule for all in
stttutions be established fixing reason
able period beyond which no loan upon
which interest remains unpaid should be
permitted to be carried as an available as
set.
Eleventh--In addition to the examination
fees fixed by law for foreign corporation,
there should be a general license fee i'm
posed for the privilege Of doing business
within this state.
Twelfth--That all building and loan as
socations should be required to register
In this department, giving the name of the
association and the names and postof!ice
addresses of the officers thereof. and that
when such association expires. an affi-
davit should be filed in this department
stating that fact.