New-York tribune., 1899-04-21
THE TAX ON OUTOF-TOWN CHECKS
PROTEST FROM THE DRUG TRADE-coN-
VENTION OF BANKING INTERESTS TO
coNr1nrp TILE OIrEsrInN LIKELY


A special dispatch from Chicago reports 1t proba-
bic that a convention Of the banking interests OF
the prinripal cities OF ne United States Will soon
be called TO discuss the question Of making charges
for collection of checks OF out flown banks and
in the event of such charges being generally
favored. TO agree upon some pan for their regula-
ton A circular was recently sent by the Chicago
banks TO institutions in Detroit Cincinnati and
other Western cities suggesting the advisablity Of
holding such a convention; and II is understood
that the bankers addressed have urged the Chicago
men themselves TO take the lead in the matter.
The New-York City banks not likely TO be
represented at the convention.
It is said by local bankers that the Clearing
House check charge regulations now In force will
probably be modified in several particulars at the
expiration OF the three months during which they
must continues in force unless mean while changed
by a majority vote OF the Clearing House Asso-
ciation Another protest against the present regu-
lations made yesterday by the drug trade
section Of the New-York Board Of Trade and Trans
portaton, the following report Of tho Executive
Committee OF the section being adopted
To the New-York Board of Trade and Trsnsporta-
ton:
The drug trade section Of the Board Of Trade and
mittee TO present 10 you the protest OF the drug
trade section against the action Of the 2 Clearing ,r.
companies coming under the. rules and regulations
% ton Of Checks 'ns Excepting FOR items
collected for the accounts or or in dealings with
the governments OF the United States. the State
of New-York or the city Of NewYork, and for
items payable in the cities Of Boston. Mass; Provi
dence. R. l.; Albany. \: Y: Troy, n y; Jersey
City, n. j.: Newark, n. j.: Philadelphia. Penn,
and Baltimore. Nd, the charge shall In all cases
be discretionary with the collecting bank and the
same shall not be governed by the provisions Of
these rules and regulations
The drug trade section protests because we think
II a retrograde movement. and not in accord with
the spirit Of the times II will operate In favor OF
other large cities against NewYork. and II such
step is taken we think the rate much too high
It should not be than half the proposed
amount.
The clerical work involved by the peculiar ar
rangement Of this rue is an item of expense
that the banks will find considerable
II the new rules and regulations are enforced we
believe that accounts will be kept in other cities
and that various schemes will be devised. with
more or less success, to evade their effect
While we are aware that the collecting Of out-of-
town checks is in the aggregate a large item of
expense to the banks. believe that there are
compensating circumstances which warrant in
protesting against the imposition by the banks Of
these charges upon the merchants. The banks will
best thrive by promoting the general commercial
welfare OF the city upon whose trade they so
largely depend; and we do not think the present in
view OF our diminishing commerce, an opportune
time to impose new burdens or expense upon busi-
ress operations.
JAMES HARTFORD, Chairman.