The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-04-01
Is What Merchants
Call the Check Tax.
Interviews With Some Lead
ing Business Men.

This merchants and business men of
Worcester are indignant over the action
Of the New York Clearing House As
sociation in charging 10 cents for every
check collected on Worcester banks,
and tenth of 1 per cent for every
check over 800,
They say it is one Of the most in
Famous extortions ever perpetrated
upon a business community, that it is
due to nothing more than the greed of
the New York banks that they are al
ready doing a more profitable business
than any other banks in the country,
and that they shall fight It and evade it
in every possible way.
1t is to go into effect next Monday.
Here is copy of section g Of the New
7 DIRK clearing house rules and regula-
tione. 1t applies to Worcester:
For all items from whomsoeyer re-
ceived Except on those points declared
discretionary in section p, payable at
points in Connecticut. Delaware Dis
tIdct of Columbia. Indiana, Illinois,
Kentucky, Maine. Maryland. Massachu-
Setts, Michigan. Missouri. New Hamp-
shire. New Jersey, New York. Ohio,
Pennsylvania, Rhode Island, Vermont.
Virginia, West Virginia and Wisconsin,
the collecting banks shall charge not
less than one-tenth of one per cent G-10
per cent? of the amount of the items re-
spectiYely."
Under the readings of section ?, Bos-
ton, Mass, and Providence, r. l., are
declared to be par points
One Of the interesting features Of the
new ruling is the following:
Any collecting bank charged with
violation shall nay to the association
the sum Of five thousand dollars, and in
case of a second violation Of these rules
and regulations, any collecting bank
may also in the discretion. of the asso-
citation be excluded from using its
privileges directly or indirectly, and, If
it is a member, expelled from the as
ISOLATION"
A. S. Lowell. head of the A. S. law
ell Company, one of the largest mil
linery Arms between Boston and New
y ork. is one of the most thoroughly
exercised men in Worcester over the
new ruling. The Spy man found him
Just as he had received a bill from New
York. with a special notice stamped in
red ink at the foot Payable only in
New York funds" II am not going to
pay it in New York funds. said he.
1t is the duty Of Worcester firms to
combine and refuse to be forced into
this thing 1t is not right that we
should be compelled to pay in New
York bankable funds, or else pay the
cost of collecting the checks on Wor-
cester banks. have received a circu-
lar letter from several of the New York
houses that [ trade with. saying that,
owing to the action of the New York
clearing house in charging a commits
sion on drafts drawn on points outside
of New York city. they would be great
~ obliged in future II I would kindly
send them draft payable in New York
city. Here is the answer that I sent
TO one of the most prominent houses:
In response to your circular letter
regarding exchange on New York
would say that we consider this action
on the part of the New York banks
neither more nor less than an imposi-
lion. and would say further, that we
Go not propose to pay it. On the other
hand, competition among the New York
dealers will compel the New York
banks finally TO pay for this exchange.
All through the so-called recent dull
times, the New York banks have made
large profits, as is evidenced by the
price of their stocks Now with the
advent Of good times, they are disposed
TO take still further advantage. and
charge for exchange which they can
we'll afford to pay as in the past
Checks from large cities and well
known firms could at least be collected
on the same basis as formerly
Now" said Mr.. Lowell, THAT is ex-
actly my attitude. ] do not propose to
be bled by the New York banks They
have made profit enough without going
TO this unjust and eXtortionate tax"
Mr.. Lowell's remarks relative TO the
earnings and value of New York
banks. by the way, are quite borne out
by the daily market reports. Direct
ors and stockholders in Worcester
banks have thought themselves quite
fortunate to have the market value OF
their stocks run from 1875 to TO with
an earning capacity OF to per cent
But In Fridays market reports of New
York bank values, but two fell below
par. and the remainder rsn from sl5l
10 $4,000. with an interest ranging from
u TO $50 per cent Here are a few:
Interest. Bid