New-York tribune., 1899-01-02
TO PROTECT THE POOR.
RECOMMENDATIONS OF THE STATE
BANK SUPERINTENDENT.
SAVINGS BANK DEposIrs-ABusEs OF LOAN

SAVINGS BANK DEPosITs-ABUsEs OF LOAN
AssocIAT1oNs-M MISLEADING OFFERS
TO INVESTORS.
Albany. Jan. l-Frederick Kilburn. State
Superintendent OF Banks. in his annual report
dwels at length on the taxation Of savings banks
and says
II will be my duty and pleasure to neglect no
opportunity 20 combat all measures .ooklns IL, 10
such policy arguing the.r improprlety ane nc d uI
fairness The managensnt o. the banks banks snogd oun
be jealous TO eliminate deposits exceeding @ lesa.
limit particularly the deposits OF those compe,enI
70 administer their own affairs The sssVinlg;s il;s
riass ,ha,s nm 'e and tRey also hold some
large trust accounts I recommend prohibitions
cess OF SOoo; against any ndiyidual navihs nav NOR ar
than account In any one bank against An. a. dso
and extending the same limit to society ana cor cor
pora on a counts az we'll 70 deposits by order
OF court or arising from judicial sales
Mr. Kllburn recommends that the directors or
every State bank he compelled make an exam
nation of It's assets and liabilities at least every
six months. and that all annual meetings OF state
banks shan be held the second Tuesday OF Janu-
ary IN each year.
He holds that Chapter 526 Of the Laws OF 1880
which Intended relieve the INDECENT from the
exactions CT persons ioanng money on personal
property has accomplished that purpose While
some Of the corporat organized under It's pro-
visions have endeago gorei TO do strictly legitimate
business many o, them appear 10 have been formed
by the class OF persons whose operations the
bill expected to curtaiL He says such institu-
ons should be under authoritative supervision. for
which they should pay the State. At least once a
year they should be examined. They should be re-
qaired 70 furnish security for the faithful observ-
OF law. and Il should also be made criminal!
offence for their agents TO exact from a borrower
d charge not authorized by law. The rate OF inter-
est allowed 20 be charged should be not more than
per cent a month. without regard to the time for
-. -L. -.
allowed for an examination Of the property and
drawing the necessary papers. The superintendent
of Banks should have authority 70 issue order
reducing the rate OF interest whenever an exam
inatOn shows that corporation Is making profits
In excess of 10 per sent year.
Relative to loan and accommodating fund associa-
tons known as Nationals. the report says:
Usually these associations have a large number
or oihcals az large salaries, 30 that the expenses
are In most cases entirely dsproportlorate 70 the
amount ot business done Anxiety 10 increase
membership ana 10 DO business naturaly @ i@etus
these associations into making Investments upon
inadequate security. resulting II the necessity OF
foreclosing mortgages and o.dding n the propsrly
upon which the loans were made More than one
which has either been decided 10 them I'm satisfac-
ton Of the mortgages held or bid in upon fore
extravagant and misleading advertising literature
Tor the purpose ot inducing investment Win mem ~,
fact. they run practically n loss
Many Of these associate IF are not only defeat
ing the benevolent objects contemplated by the
Legislature. but are actually deceiving and yirtu-
afiv rohbing the large and unsuspecting najori'y y
OF their membership. which IN the main IS corr
posed Of persons Of small means. VINO do not pos
-e-s experience in life % enable them 20 detect
the causes an conditions which can lead 20 notn-
ing but disaster. I think system Under whl,n
such things possible. and IN many Instances
exist ought 20 be entirely abrogated.
The statistical part OF tn report points out the
fact that not sir gle bank OF deposit and discount
Of the State system failed during the year.
The total resources Of institutions uncer the SUI
-a-,isior - this DeDartrneut as shown by the
last reports are as follows. Banks of deposit and
discount s3ei 5s Os6 savings banks. $3.50 So3l1
trust cornpa nies s2 0s4 53 safe-depOst companies
& gi5 sg6. foreign mortgage companies. Ss.-n l3s
building and loan associations s5l,5S+ 1l9. total
g s2i 1850 In comparison with the previous year
the gain IS Sl2s 2si.670