Omaha daily bee., 1899-05-28
Disagreement with South Omaha Banks Has
Been Satisfactorily Adjusted.
Ill ClEARNGS WILL GO THROUGH OMAHA
Agitation by The Bee Has Resulted in
Bringing About This Result,
HISTORY OF THE RECENT CONTROVERSY
President Willard of the Omaha Na-
tionni, After Much Time and Trou-
bic, Has Strnightcncd Out
the Middle.

The clearing house controversy. by which
Omaha has been listed in the weekly bank
clearance table as going backward in busi-
ness, instead Of as in fact, going forward,
has been ended
The next clearings statement will give
the correct figures for Omaha This result
has been brought about almost entirely by
the persistent agitation Of The Bee.
For two months Omaha has been mis-.
represented in the weekly statement of the
clearing house cities of the United States
and Canada, published in all the leading
daily papers and considered a thermometer
of the business of each city. During the
last eight or nine weeks Omaha has shown
steady decrease in its bank clearings. and
this showing has naturally caused much in
quiry from abroad as well as from at home
by parties who have the welfare OF the city
at heart.
The whole trouble has been caused by
misunderstanding between the Omaha Ma
tonal bank and its allied bank. the South
Omaha National, resulting in the latter with
drawing its clearngs from the clearing
house. This explains the decrease in the
weekly statement
But, as stated above the matter has at
last been satisfactorily adjusted and this
week Omaha will hereafter receive its proper
credit in the weekly clearing house state
ment The former and regular method OF
clearing through the Omaha clearing house
was resumed on Friday. The coming weeks
clearing house statement, however, will not
be as large as usual owing to there being
two holidays in New York City and one in
Omaha, but Omaha will be given its proper
percentage of increase or decrease, as the
case may be. Notwithstanding the holiday
Interruption Omaha, with its proper credit
from South Omaha, will make a much better
showing than at any time during the last
two months.
History of 6the Controversy.
The story OF this clearing house muddle,
which has given Omaha temporary black
pye, is somewhat interesting. Previous to
lie recent controversy the Omaha National,
which owns a controlling interest in the
South Omaha National had been sending ali
it's collections against the South Omaha
Stock Yards company to that company and
receiving in return the cashiers check, pay
able at the First National bank Of Omaha.
The South Omaha National has been sending
these checks to the Omaha National as items
of cash. and the Omaha National has been
presenting these checks to the clearing house
on the following day and they have been
paid by the First National.
1t was claimed that the South Omaha Ma
tional had the actual use OF the money for
one day and that the Omaha National
wanted the South Omaha National to pay
interest for that one day. This forced the
Stock Yards National to pursue the same
course with the First National of Omaha,
but there contention between the
First National and its South Omaha connec-
/ tion, the Stock Yards National but instead
of letting the checks go through the Omaha
clearing house heretofore they were
cleared at South Omaha. The result was
that the differences between the two sets
of banks amounted to from $1,000 to $500
a day whereas formerly there was about
100000 "A day going through the Omaha
clearing house
President j. II. Millard OF the Omaha Ma.
tional claims that the old methCd OF clear
ing made a difference of from $4,000 u
$4,000 a year to his bank-that Is the in
terest on daily balances which his bank has
had to carry. 1t has been through the ef-
forts of President Mllard that this dis.
agreement has been finally and permanently
adjusted. 1t has taken some little time and
! trouble on hiS part to bring about this much
desired result, and he says that no one
regrets more than he does that it ever arose.
1t has been a matter that has caused con-
siderable discussion and criticism and in
dgnation, but 1t was one of those things
that required time to straighten out Mr..
Millard admits that The Bees attitude in
this controversy has been correct.