The herald., 1898-09-21
COUNTRY BANKERSMffT
|CoNFERENCE TO REACH AGREE.
MENT ON CHARGES
No Decided Action Taken After Long
Discussion and Variety of Opin-
ions Expressed

In response to n circular letter sent out
September by the clearing house of Los
| Angeles, signed by James +. Towle, man
ager, thrty-five country and city bankers
assembled in the assembly room of the
chamber of commerce last evening. Dr
w. l.. Graves of the Merchants National
bank of Los Angeles was elected chair
man and w. II. May of Pasadena secre-
tary.
The object of the circular letter was to
call a conference of country bankers for
the purpose of endeavorirg to reach an
agreement upon some uniform plan of ac-
ton in regard to charges by the banks OF
Los Angeles upon personal checks on coun-
try banks. This action was taken by the
city banks soon after the passage of the
revenue act. The agreement for rates of
exchange resulted in a sudden increase OF
"kted checks and occasioned great
deal of complaint, and accordingly the
meeting was called as stated. with thirty
of the banks In Southern California re-
spending. Those represented were: First
National. Pasadena, r. N May: Peoples
bank, Pomona, ]. H. Dole; First National,
Redlands, j. c. Wells; Orange Growers
Riverside II. f. Hays; Farmers Ex-
charge, San Bernardino, S. F. Zombro;
San Luis Obispo, proxy, ]. NJ. Elliott;
Commercial. Santa Ana, J. c. Galloway;
First National, Santa Barbara, II. F. Lin
coin; Santa Maria, ]. NJ. Elliott, proxy;
Arizona National. Tuscon, II. J. Fleish-
man, proxy; Tustin. e. d. Buss; Bank of
Central California, Fresor, H. J. Fleish-
man, proxy; Long Beach, p. E. Hatch;
Citizens. Anaheim. H. Cahen: Covina VAL
ley, +. NJ. Douglass; Exchange, Santa Ana,
a. j. Cruikshank; First National, Pomona.
j. II. Dole, proxy; Fruit Growers, Full
lerton. II. ] Fleishman, proxy: State. On
tario, G.. T. Stamm: National, Pasadena,
oh ITriOD ReillniS Il q
Wells; National, Pomona. j. A. Lathrop;
Citizens, Ontario, V. McQuegg; CONNER
cial, North Ontario. ]. l.. Paul; Azusa Val
ley, p. c. Daniels: Orange, j. r. Porter;
Whittier, A. Hadley; Santa Monica r. w.
Kenney, proxy: Alhambra, J. NJ. Elliott
proxy; First National, Santa Ana, j. A.
Turner.
The chairman called the roll of banks and
requested the representatives to state their
views of the question under discussion.
Pomona reported having made the charge
since August l. and found il quite satisfac-
tory to the bank and its customers. Mr..
Wells Of Redlands was dtsgusted with the
change. and if arrangements could be made
with the clearing house would have checks
accepted at par in Los Angeles. Mr.. Hall
Of Riverside had made charge Of one
and one-terth per cent ard thought ali
checks drawn on Redlands should be sub
ject to charge. Mr.. Zombro of San Ber-
nardino thought conditions differed in diff
ferent localities, and each bank should de-
eide its own course in the matter. San
Luis Obspo, through its proxy. expressed
itself favorable TO the change. Santa Ana
prefers the old method. Eastern banking
houses make no charges for collections
and Los Angeles, where larger balances are
kept by country banks, should do the same.
Mr.. Galloway of Santa Ana was in favor
of supporting the clearing house in its ef-
forts TO divert exchange into proper chan
nels, and similar views were expressed by
santa Maria. Tustin regretted the change
and would be glad if some plan could be
devised for country banks, as they are
obliged to maintain the same rates as San
ia Ana. Tucson, Fresno and Long Beach
are favorable to the change. The latter
has charged exchange ever since the bank
was established and considers it legitimate
banking business, which people do not OBJ
| ject to when educated to it. Covina. Whit
tier, Fullerton. San Diego and San Bernar-
dino are all in accord with the action of
the Los Angeles banks. Pasadena labors
under the disadvantage of being connected
with this city by two steam railroads. one
| electric line. another in prospect and a
| cycle way. and feels that an exception in
its case should be made. Azusa. Covina
and Santa Monica are under similar dis
advantages and ask for exceptions also, if
| such courtesy is accorded to banks else
| where.
letter from Major Bonebrake was read
| in which he expressed the opinion that
| each bank should decide the matter for
| itself.
| There being no probability of a unanim-
ity Of action, on motion the two parties
separated to embody their views in reso-
| lutions for future action.
Sixteen banks were represented in the
| following:
Resolved, That the Los Angeles clearing
| mouse charge ten cents on each item drawn
! on country banks under 500, and one-tenth
| of one per cent on each item over 500.
Fourteen gave expression to their yiVs
! as follows:
Resolved, That the clearing house banks
be requested to follow the Instructions of
their correspondents regarding discount
on checks drawn upon themselves