New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-28
THE CHECK TAX FIGHT.
OPPOSITION TO THE RULING INCREASES
DAILY.
-oDe OF SMALL OUT-OF-TOWN
ryrcKs MAY ESTABLISH \ COLLECT
ING BANK OF THEIR oWN-A
UNIFORM RULE FOR ALL
RESERVE" CITIES
SUGGESTED

.. ,no Clearing House banks are
- &C ovnressing surprise at many absurd
Q'''..r,s - disanecton among the customers
:, ..e hanks" regarding the threatened impos-
cbarges. in many cases extremely
,.-sor,e for the collection OF out-of-town
The regulations formulated by the
-, House Committee and approved by the
ton will SO into effect on April .. and
hereafter be altered or rescinded within
az months except by majority vote Of the
(.,a.r,ne House Association. The Tribune has
.'an fea,inr the pulse OF the deposlting public,
without whose funds the banks cannot do bust
oss and finds it TO be on the whole an angry
cd excited pulse so quickened as TO Indicate
,ba, the Associated Banks may find it to their
advantage TO rescind or materially TO modify
within three months their new regulations
For the present. however. the banks are put
,,nr bold front on the matter and are now
contemplating the initiation Of concerted action
ny the banks OF all the reserve cities" IN the
direction Of adopting schedules Of collection
rates on out-of-town checks which shall be
~ line with the rates soon TO be put in force
he-c one ~ the proposals to be considered,
which may lead TO a modification Of the local
scbe8u,e IS reported to be the adoption Of uni
work and all other reserve cities based on
1,s,aoco-so much charge on checks which must
he sent 100 miles for collection, so much for POO
miles, and so on
Prt whether or not this plan shall be carried
M. the business men % this city, especially
.,osa the nature Of whose dealings requires the
acceptance Of large numbers Of small checks-oh
which the banks are going to charge at least
10 cents each. no matter how small 'he
s-,ourt ~ the check-are more and more in
oi,red IN seek their remedy-their salvation 1t
might almost be said for the deduction Of a
hank charge of 10 cents on each 81 check
,r,,rd rlea, al least the wiping out Of profit
and on great many items positive Joss
IN the transferring Of their balances TO trust
COMPANIES which would pay per cent on
5a,Ie,-e this interest aiding the merchants TO
meet the expense ol the collection Oh 'he" Gu,
oe,ov-r checks the work of attending 70 when
o-lrcl+to, would continue 10 be intrustcd 10 the
CIoarlrc-Houso banks. 49,,
~ course no trust company making lis cleaI-
arces through the local clearing nous ",.t,o,,t
Permitted - collect country checks without
rh.~cr and Il might be that a clearing mouse
hank would decline a business houses acC9UH.
consisting almost solely Of country chechs u ~
knew THAT the firm had turned over us IesS
troublesome and promptly available palance ~
tr,is- conpany. Important mercantHe anu
rubI.shirr houses of this city are UNDERSTOOD 10
he considering favorably the question OF eohs
Aarond the INST proposal 70 throw their pusl-
moss 10 trust companies. and themselves esIao,
fishing a bank or trust company Whlch Woulu
handle without charge-and without Nlcuon-
-ba collection ~ checks drawn upon out-of- Town
banks and sent u this city in payment i2r
goods bought The substitution OF none! ORDERS
for small checks TO he sent here in payment ior
goods or publications has been suggested hut
r would be at best only an anevatlon' ior
money order for s. - or less carries three
cent Zee ana also a twO-Cent revenue siaml
charge If Eve cents on each order. as against
Twelve cents on q check Of which TWO cents dhS
revenue starsr) IvouId be paid by the maker ana
o-ber toT cents by the business firm receiving
The check here. And five cents charge on
dollar is an extremely onerous rate
The Clearing HoIs- yesterday issued clI-
c.la~ setting forth the fact Of the adoption or
,he country check c0lection-Charge regulation.
giving lists o. the States 10 which the several
rates are 20 apply quoting the resolution which
every roa-memher Institution clearing through
2 CLEARING House bank must adopt, binding
su-h institution 20 comply with the Clearing
House rules a. 70 out-of-town collections, ana
Prescribing to Dena,ucs- already printed In
The Tribune-to %. imposed. on conviction after
h@arin@. upon any bank FOUND guh'N OF NiO-
lafou o. the new regulation.