Freeland tribune. (Freeland, Pa.) 1888-1921, 1898-11-03

But in 1885 another act was passed,
| creating a bank department that had
already been created and in operation
for four years. and giving to 1t the su-
pervision of banks and banking COM
| panies, cooperative banking associa-
! tions, trust, safe deposit. real estate,
mortgage, title insurance, guarantee,
| surety and indemnity companies, and
! all other companies of a similar char
acter, savings institutions, savings
! banks, provident institutions and every
| other corporation having power and re-
| ceiving money on deposit, and mutual
savings funds, building and loan asso-
Citations and bond and investment cGm-
panies." BY tEis act the salary of the
superintendent was fixed at $4,000 per
| year, and he was empowered to appoint,
in addition to his three clerks, a dep
uty at S2,5O0 per year. Also, from time
to time, to appoint examiners 'in such
numbers as may be necessary for the
conduct of the business of the depart
ment, not to exceed ten in number"
at a compensation of not more than
$40 per day.
In the same year GG05) the general
appropriation act was made to give
to the banking department (for
two years., which three years before
had cost the state the modest sum of
81 coo, the following amounts:
Salary of chief (two years.. $4,000
Salary of deputy (two years).... 5000
Salary of clerks Ctwo years)... S,i00
Salary of examiners (two years.. 80, COO
Salary of stenographer and type
writer (two years. ............. 1900
Salary of messenger (two years.. 1,SOO
Contingent expenses ......... 5000
| Total NEUTRALITY-SUSPICIOUS.. ..$l24, 600
At the previous election one b. F.
Gilkeson, an attorney and professional
| politician of Bucks county, had been
| chairman of the Republican state COM
mittee. In that position he had shown
himself a master Of Doodle methods in
politics, and as a reward for such SER
vices it was decreed that the salary of
the bank commissioner should be raised
SO per cent and Mr.. Gilileson given the
place. Accordingly, on the 1fth day of
February, when the legislative session
was as yet but Il few days more than a
month old. the necessary act, having
been rushed through both houses, was
signed by Governor Hastings, who obe-
| diently and Immediately proceeded to
| fulfill the decree of the machine, and
| Gill1eson became the commissioner.
III 1901 liiC eiDpipBl idblpli W tie Ddnk-
| ing department was again fixed at
| $124OO0 and the commissioner and his
deputy and his three clerks and his
ten examiners continue to luxuriate on
the fat of the land, while the banks
go on collapsing in greater number and
with greater loss to the taxpayers than
ever before.
In addition to being a gross fraud
upon the taxpayers, the banking de-
partment exists in violation of the ex-
press mandate of the constitution.
which requires that all such matters
as come under its supervision shall be
subject to direction by the secretary
of internal effairs. When the miners
of the state sought to have q mine de-
partment created as a thing separate
and distinct by itself, which the miners
themselves should have some voice in
controlling, the law officers of the com
monwealth We're quick to find that such
a project would infract the fundamen-
tai law, though how that instrument
can be construed to permit a separate
bank department and disallow a sepa-
rate mine. department, only a conni-
5ing attorney. in the pay of the MA
chine can explain.
The 1896 report of the commissioner
of banking, which is the last printed
volume we have from his hand, shows
that 1914 institutions, banks, savings
banks and trust companies made re-
port to him. In the state of Pennsyl-
vania there are 450 national banks. The
United States are a great power, with
apparently unlimited means, and yet
they managed, in the interest of a
proper economy though each bank is
required by law to be actually exam
n G tn ftc
at least twice in each year. to do this
work without any expense to the gov
ernment, the regulations exacting from
the banks sum that in the total ball
anced the cost of the department. An
ither somewhat significant fact is that
only five examiners We're required to
look after the $50 national banks, while
MIR. Gilkeson has ten $10-a-day assist
ants making believe to watch and cor
rect such fraudulent and dangerous
practices as the 1874 state banks, saw
ings banks and trust companies may
venture.
While on this branch of this most
interesting subject let us again go
back to Mr.. Krumbhaar, who organ
lied the department under Governor
Pattison, and who seems to have some
conception of the seriousness of the
business in which he was engaged. In
that report Mr.. Krumbhaar said: while
recognize the efficacy of periodical re-
ports and the publication of a suffi-
cient portion of the same to acquaint
the public with the condition O. our
several institutions, and the mar of
those responsible for the management,
experience has shown that no depart
ment can be safely run by depend
ence upon reports. Many matters of
management and Objectionable prac-
tees may be readily omitted therefrom,
which would be most apparent upon a
personal visit of an efficient and trust
worthy examiner" This was six years
ago, and yet to-day the banking depart
ment of Pennsylvania depends exclu-
sively upon reports, makes no examina-
tions until after the newspapers have
told that the banks are failures, and the
time for examination has gone by, and
Mr. Gilkeson and his fourteen assist