The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-07-12
BUT Mr.. LOOP DENIES IT
He Defends the Express Money Or
der System.
SAYS IT'S IN INTEREST OF THE PEOPLE
And Gives Them Cheap and Safe Method Of
Exchange Where They Have no Bank
ing Facilities. The PROPOSE
lion 10 Tax.

At the Bankers convention, held III
Greensboro about the middle of June,
Mr.. J: p. Sawyer president of the Bat
terry Park Bank, at Asheville, dellv-
cred an address in which he declared
that ''the province of the bank has
been invaded" and 1.-The express money
order is encroaching upon the terri
tory of the bank exchange"
In the course of his argument he
compared the privilege and other taxes
paid by banks and express companies
in this State, and added: IF this
company [Southern Expressl is 60
ing to carry on a portion OF the bank
ing business, they should pay PRIV
lege tax for so doing"
Mr.. Sawyer urges his fellow bank
ers not to ''sit quietly by and permit
this usurper TO quietly enjoy the pro1...
it's which legitimately belong to us. >
He counsels a fight against it, and
would carry the fight into the law
making body of our State.
This address has stirred up the ex-
press people, and yesterday Mr.. Chas.
IL. ID.
ern Express Company, sent to the Cor
poration Commission of North Caro-
lima the following reply to Mr. Saw
yer:
have read the address of President j.
p Sawyer, president of the Battery Park
bank of Asheville, at the recent meeting
OF the North Carolina Bankers Associa-
ton.
In the course of Mr.. Sawyer's address,
he remarks: Express companies are
trespassing on our ancient and usurping
our time honored prerogatives. The eX-
press money order is encroaching on the
territory of the bank exchange"
And then Mr. Sawyer attempts to state
the amount of taxes paid by the Southern
Express Company in the State of North
Carolina for the privilege of doing bust
ness within that State, and he only quotes
about one fourth of the amount that the
express company pays as q privilege tax.
Then he says every office of the express
company that issues money orders should
pay a license tax.
Now this question was submitted by the
bankers through very able counsel to the
law officers of the United States Treasury
Department, and after careful considera-
tion it was decided that the express money
orders were part of the express business
and did not constitute banking.
But where and when did Mr.. Sawyer find
out that he is injured, or that others
are injured by the express money order?
Let us take his town of Asheville,
from which you can send money through
four different agencies, viz: The two
banks, the postoffce, the express office.
Now, suppose, for illustration, that the
desire of Mr.. Sawyer is carried out, and
the express money order is taxed out of
existence what would be the effect on
Mr.. Sawyer's bank?
The Southern Express Company receives
an average revenue of 5000 per month
for the money orders issued at Ashe-
vile.
Disseminating the express business, per-
haps most of it would go to the postoffice
but assuming that it was equally divided
it would give Mr.. Sawyer's bank a
monthly revenue of $3.49 per month,
against which the expense of doing the
business must be charged.
Now for this amount should Mr.. Saw
yer fight us at his home or into the law
making body of the State?
But there are only GO places in the
State where there are banks, and there
are 314 agencies of the Southern Elk
press Company in the State, through
which money may be RENTED by the ex-
press money order system. Thus there
are GAG places in the State where you
cannot buy bank draft. but you can
send by express money order.
Would Mr.. Sawyer shut up all these GAG
express offices and deprive people Of the
convenience now afforded them?
What is the express money order sys-
TEN anyhow? 1t is simply a reduction
in the rates formerly charged for trans
porting small sums by express. 1t is a
means voluntarily provided by the EX-
press Company solely for the purpose OF
affording a great public convenience at
reduced expense, and it is expected
10 popuiarize the express service, and it
is popular except with a small minority OF
bankers who have been misled by reading
the literature promulgated by interested
persons into believing that he Is a suf-
ferer.
The gross revenue from express money
orders from North Carolina for one year
is $3,752.40, out of which must be paid
the expenses.
These money orders represent money
Sent 10 all parts or the United states, and
money mas to be RENTED and expenses
incurred.
But suppose there was not cent of eX-
pense incurred or any further trouble in
volyed than to take in the money, anC
If we divide the whole amount between
the 101 banks, they would get $97.l5 each
But if the express companies did no
furnish these facilities, there is no rea,
l. H.
ge to the banks.
The average amount of money orde
Is $1,000 ana the average revenue on
money order IS less than cents.
The discorfinuanee of this bushes
would be greater loss to the public thal
10 che express companies.
ysat IL the express company discontinue
This business. good deal of the n1one