New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-03-30
TIE COST nor WHAT is cHARGEp.
WILL BE BENEFITED BY THEIR AcTro


WILL BE BENEFITED BY THEIR ACTION.
To the Editor Of The Tribune
Sir: In addition to our retail business we also
do large jobbing business covering a number
Of States in tho West and the settlements to us
Invariably arc made by local checks. and we are
obliged 10 pay collection fees in Rochester on
these checks. which IS quite large Item OF
pensc. Three-fourths Of our remittances arc made
to New-York and we have heretofore paid tho
same with Rochester checks hut II theso checks
Will not he taken in Ncw-York except upon the
payment OF one-tenth Of per cent II will be an
other large item Of expense and shall there
fore be taxed double
While We are not bankers yet We know that II
does not cost tho banker what he charges for the
collection Of checks. there is always a recipro-
cal account; for instance bank in Rochester will
collect for New-York bank and the New-York
hank' In return. will collect for tho Rochester
nank. 50 that the difference between what they re-
celVe ana what they pay out is ordinarily not a
large expense TO the bank
The action Of the New-York Clearing House will
have demoralizng effect on the present system
OF banking and will tend largely to prohibit the
or checks. particularly small ones. and II is ques-
tona5le from 4 business standpoint whether the
New-lork banks will he benefited by the action
they have taken. as they will undoubtedly lose the
large balances that their customers have left with
mem heretofore If they have to pay for collection
Tho large commission houses however are send
ing circulars all over tho country TO their custom
efs' demanding that remittances be made in funds
nankaole In NewYork City. and endea vorng
IN THIS way TO evade the tax imposed upon them
ny the NewYork banks Just whether the mer-
chants throughout the country will acccde To their
wishes Is question which at this time cannot
answer. N seems to US. however. that as II Is an
action taken by their local banks the merchants
OF New York should stand the tax imposed upon
them. but. as before stated. they endea vOrng
10 throw the expens" upon the merchants all over
the country and arc endea voring in every way 10
uphold tho action of the Clearing House in this
spect, from the fact. We believe. that a great num-
her OF them interested I'm the banks directors
and stockholders.
This phase Of the question. however refers more
particularly 10 the large commission merchants
and mill agents and not to your general obber and
importer
II we are not mistaken. there is law the
statute books which prohibits the organization or
banding together Of any company OF men or insti-
tutions 10 maintain prices. or. in other words TO
quench the spirit OF competition. and think that
If the matter is carefully looked into by the At
torney-General or ny the District Attorney Of New
York CITY he will find the action Of the Clearing
House n direct violation Of that law.
In conclusion would that this action OF
the New-Iork Clearing House is step backward.
and from the present outlook VIII do more upset
the rapid advancement Of business than any action
OF the banks which has taken place within our
memory. X
Rochester, y. Y. %