The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-04-01

vi course continued MI. IOWel.
lit will be one of the easiest things in
the world for us to avoid the payment
of this tax on the New York end. We
can buy draft on a Boston bank, but
that would be going considerably out
of the way. We can send the money
by express and force them to pay ex
pense on the New York end. We can
send by express, although we should
have to pay on this end; but then we
would have this consolation, it would
keep the money at home. One thing
can be counted as certain; that several
small firms, that for good reasons have
transferred their buying to New York,
will begin to buy in Boston"
Thomas Hamilton, treasurer of the
E L. Smith Company, 401 Main street,
said that he considered the ruling an
outrage. He believed that to be the
general sentiment in the dry goods and
millinery trade In Worcester. 1t would
mean a good deal of expense to his
firm, IL complied with, and he believed
that the sentiment among the business
men of the state against the ruling was
50 strong that the New York Clearing
House Association would soon be forced
to rescind their action. If IL was con-
tinued, however, the merchants of
Worcester would use every possible
means Of evasion.
Leopold Strauss, of Gross, Strauss &
Co, denounced the ruling in q most
emphatic way. There was no right or
logic in it, and the only apparent pur-
pose on the part of the New York
Clearing House Association was to
make up for what they considered a
loss of interest on money that did not
belong to them, while the paper was
being sent to the different banks for
collection. There were several ways,
however, to get around the ruling. and
he was of the opinion that they would
all be utilized if it was kept in force.
As a matter of fact he believed New
York would suffer most. The one thing
that puzzled him, relative to the rul-
ing. was that Providence should be put
on a par point and Worcester on the
ope-tenth. If worst comes to worse, -
said he in a jocose vein. Il guess there
are enough of US up this way to open
up a bank in New York and provide
for our own accommodations"
Quite q number of other merchants
doing a lesser trade than the three cit
ed, were interviewed by The Spy man,
and all expressed themselves against
the ruling in most emphatic sort Of
way.
/ 1t has been the intention for some
( time of the Worcester Clearing House
Association to take up the matter for
! consideration. The president of one
of the most prominent national banks
4 in the city told a Spy man yesterday
+ that the reason it had not been done
Z up to this time was because Of the be-
! lief that the New York clearing house
would probably resCind their action
/ within a short time. He said that there
was general dissatisfaction with the
ruling
/ In all the national banks of Worces-
/ ter the New York plan is considered
inequitable in many ways. A deposit
or carrying a constant balance of from
! $40, 900 to S25 600, by which bank profits
may have less outside checks than d
idepositor whose balance is too small tc
| be of practical value to the bank. The
bank could afford to collect the first
for nothing, but not the second.
Yesterdays dispatches from New
York stated that merchants had re
/ ceived an important concession IRON
the New York clearing house commit
tee relative 10 the new rules for the on
of town collections.
A difference of opinion arose as to tht
proper Interpretation of the tern
place" in section of the rules anC
/ regulations. That section provides tina
| Sin case that charge upon any item a
| the rate specified Zone tenth and one
/ fourth of / per cent? does not equal Il
| cents, the collecting bank shall charge
not less than that sum: but all items
received from any one person at thu
same time and payable at the same
place may be added together and treat
| ed as one item for the purpose of fix
! ing the amount chargeable."
| In substance, all checks in the one
| tenth of / per cent territory, when de
posted ar one time by a single de-
positor win be punched and the charge
made on the sum total. The 10 per cent
minimum charge will apply only where
4 but one check OF small denomination Is
| deposited at a time.
Objections to the proposed charge are
continually coming in. New York mer.
! chants and business men are as loud ii
| their protests as ever and are deter.
mined to retaliate upon their banks By
| Withdrawing their balances when the
new charges are enforced. Protests ar'
reaching New York from various por-
lions Of the country, opposing the
| clearing house plan. New England
banks are strongly opposed to the plenl
| especially those in Hartford and New
| Haven. A representative from both tht
| Hartford and New Haven banks hal
visited the clearing house officials II
New York and endeavored to have th'
rules changed or rescinded.
| The following circular has been is
sued by a Providence bank regarding
/ country check collections:
| Providence, r. l.. April 8.
/ Checks upon this bank forwarded t,
US for collection will be RENTED for b.
return mail, without charge, in New
York. Boston or Philadelphia funds a!
| desired
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