New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-26

of saSa aSa to snf5Bs 81
Solvent institution can rave no actual surplus,
and therefore the preference is yaueess excepr as
dered in a case in point is to stand; 1t seems to
me plain that the law should be changed to exj *
tend the pref renee to Is per cent OF me rePOaI9
surplus or alternativey, a savings oanK sP hE
or trust company an amount exceeding ohe-4uAr'er
of the depositary's capital. 40. ..o ~,
era law be amended to title of
Under iiId - the Banking law law imam
PROPOSED TAX ON SAVINGS BANKS.
1t should require no argument or special appeal
which, in the opinion of those who have made a
life study OF the needs OF the savings banks, would
the policy Of the State to exempt savings banks
of these institutions is committed cannot contem-
plate departure from that policy except with
erly entitled to such forbearance are represented
in the deposits these institutions the just remedy
is to drive them out-not to Cypress the who
deserve exemption for the sake of reaching the few
who have no claim TO special consideration in this
In my judgment, a measure should be enacted
accounts by any one, individual, and prevent the
which any one person may have on deposit in
or twenty or all Of them and then require that
one offering at any bank deposit exceeding some
oath that the deposit so offered will not make his
limit Prescribe that false swearing in such case
shall constitute perjury, and think this problem
| be- as l view it, wisdom in taxing these institu-
TONS directly or indirectly
EXTENT OF THE BURDEN
wish OR bs a0 to hf
on Taxation except IN so far as II strikes ce
n gon 9 3he savnss You'd place burden
about annually b9a aRS @ T6e SAVINGS banks
have over s4O6OO0O0O invested IN real estate mort
| cages and a large amount in railroad mortgage
! hon or al One-half of the whole amount que
| depositors. The proposed MORTGAGE tax won fto
quarter of per cent on the amount to his creoi;
fn o @ u in real estate mortgages within
! this State Interest rates tend downward, while
tinuaiiT appreciating Already most of the savings
banks which had been paving dividends at the Pse
dividends to 81 per cent Oblige them TO pay the
SpaTter of per cent would probably follow with
further cuts necessitated as interest rates % ny
those who seek 1t might inquire whether II Is moi
whether the fact that according to the pSst sta
stics attanabe. only about per cent OF the per.
likely to convince all who give the subject thought iBd
that taXa atjig OF swings s 9an bst
Similar considerations plead for the e1emPlon t OF
from the proposed tax The members OF these
associations are mainly wage workerS 10 tions
offer t6r changing their condition from rent payers
to home owners appeal strongly
AFFAIRS OF TRUST COMPANIES.
change Trust Company In December ana me COIL a.
plant made against the State Trust Company, IN
January, the causes OF concentrating puplIc
attention upon this class of institutions in degree
peculiarly searching and trying. That II did not
occa serious disaster Is in no degree Que 70 any
prudence, discrimination OF forbearance exhtbtsd
by those responsible for it. In the case OF the
State Trust Company the methods employed were
Of q character which. whatever the motives IN.
spring them. might have jeopardZed the SAFETY or
the institution, with further consequences !mpos-
sible to estimate Had the State Trust company
gone down. there is no estimating where the effect
of the crash would have StOppepd or how great a
disaster might have followed. The publicity re
garding It's affairs for which Government official
was responsible. was not required 70 correct any
The course pursued by the management Of the
Produce Exchange Trust Company in tying up
millions of its resources in highly speculative and
long time ventures and the violation OF law by the
State Trust Company In makns excessive loans.
of which to some Of its directors. are
neither defended excused by me- The one was
a reckless procedure, and the other plain viola
ton of law which no company ought ever TO per
nit.
In the course of the annual report transmitted by
to the Legislature in January l. was suggested
that the limit where trust company organization in
New-York City should halt might best be left TO
capital determine rather than be set by the
arbitrary dCtum of the Superintendent of Banks.
think that events are lustifying that view The
fact that certificate Of organization of any new
company of this class has been filed with me since
December. and the further fact that arrangements
are in progress for the merger of some Of the com
paneS already established. In course of orgaui-
Zation would appear indicate that capital Is not
present at least, and that the movement has cul-
minated. FREDERICK d. kILBtR N,
Superintendent of Banks.