New-York tribune., 1900-12-31
SHOULD NOT TAX SAVINGS.
STATE SUPERINTENDENT OF BANKING
SAYS SAVINGS BANKS DEPOSITS
SHOULD GO FREE
AsKs SUPERVISION OF BUILDING AND
LOAN ASSOCIATIONS PROSPEROUS
YEAR IN BANKING.

sn tunpoTtant feature Of the annual report 10 the
Legislature OF State Superintendent OF Banking
Frederick ID. Kilburn- He says;
II the Legislature is consider this question Of
taxing the deposss ih the savings banks ~ shoIlu @
fapI1msfton obtsinable and particularly in regard
10 the mistaken assumption that the moneys heio ~,
people Of means. A more searching examination
ane snsyss oi accounts than m aSs eus he geoIired
20 ascertain with precision the percentage OF ee
Ro5s Rs NV hieh fhoweSe Of The policy Which
the arrangements OF most savings hanks and from
such Inspection as ! have made Of individual ac-
counts which almost uniformly show deposits IN
small sums only, indicating that they are actuaIiy
savings and not investment funds l am entirely
satisfied that It is inconsderable; = Granted
to che % savings banks b5 5hy a9s Te5un diminish poVerty
The fact of a wage Garner being a depositor IN
them tends to interest him in public questions, ana
20 enroll him in the ranks OF those VINO stano 10, L9I
honest money and for preservation of the pubhc
fsitb nE1osIe II contributes d 20 nse eA better
cifizen. AS 10 the system a whole; who VIII
tax burdens. even though it does not actually pay
taxess But for The savings banks II may %eI ne
could fosf their bonds at the rates Of interest at
which they are now eagerly absorbed
n might he required that bank shall accept a
deposit exceeding some sum TO be hked by at sw gh
affidavit declaring that such deposit woa1o nor
MAKE the aggTega.e 9 @ 9i ms GISGis ,, IN az iif a A.
may be thought best 10 establish. thus preventing
the deposit Of large sums
Mr Kmburn again proclaims against the method
Loan Associations and asks for the passage OF a
bin giving him direct supervision over them He
alleges Of the existing abuses "the pay
ment Of free Withdrawals and excessive salaries.
the employment Of high priced agents the renting
OF luxdriousy appointed Offices. speculating in real
estate that system of administration which prac-
tically ignores the mutual feature which is sup
osed 10 underie all building and loan associations,
the second mortgage plan Of investment. and, IN
short ingenious schemes Of all sorts which the
-o-1fg- hlz-p
and which have grown up with, out Of the So
called National system" He continues:
contend that any financial undertaking which
involves annual expenses exceeding Per centum
of gross income. cannot long remain solvent1mneh @
sssS maze . tloa ~. ese S,hen there are added 10
the expense burden the inevitable losses which 10
greater or less degree all financial institutions ex-
rerience And the large and extensively managed
building and loan associations meet with greater
losses comparatively. a rule than eny other
financial institutions under the control OF this De-
psrtment
He then gives this startling list OF companies that
have assigned gone into a receivers hands IN
this State in the last few years
Empire Loan and Investment COMPANY New
York: Security Building Loan Mortgage Company
New-York: Lenox Building Loan Company New
Syracuse: Expressmens Permanent Savings and
1s3 Sa o@1 Association Mercan
tile Cooperative Bank. New-Nork; Atlantic savings
and loan Association. NeW-York; Wayne Building
Loan and Accommodating Fund Association, Pal
syrac;se: Angio-American Savings and Loan AS
socs.ion, New-York.
Mr.. Kburn says that the financial institutions
Of the State have been remarkably prosperous.
having gained in resources the last four years
than s7ooO0oOO He adds:
Nearly 81 5OG00 Of his gain has been made by
the safe deposit companies. about a6@000 by the
by the discount banks S200aOO by the savings
banks and sI00 003U0 by the trust companies. The
ne lgErff zeal sGsr yf1ldp her
-e0 though not quite in proportion with that for
least corresponded TO it in that whole it
shows betterment and progress. Disregarding de-
tails and dealing with each group Of institutions
a class I think il accurate statement of
fact thar The banks OF deposit and discount, the
savings hanks. the trust companies ana safe de-
posit companies and the savings and loan
Citations all improved in condition during the year.
The year lacked. Of course the extreme activity
end the uneXampled movements which had OBJ
its course was largely one of waiting and adjust
inent. Enforced liquidation. which characterized
ersl corporations which. through the extreme op-
organized upon a basis which sound judgment and
conservative business experience alike should have
curity values. as compared with the unprecedented
nno nnwarranted prices which some securities es-
peclaHy OF the class known as 'industrials,'' had
reached This was attended by the wanton cir
Sstation ana vicious attacks upon one or two large
financial institutions In the city Of NewYork. from
siby have been had had not the institutions sub
5ected TO the tension been inherently very strong
ana commanded public confidence As was,
some repression was unquestOnably felt and OPP
followed Presidential campaign, wherein. upon
the one hand. alarming policies threatened.
new en,erpTises nntil the result should be deter
mined That all of thtse tests were borne by the
p banks and trust companies Of the State. not only
Slthout single failure or the loss Of dollar by
otooh az Nhoie aclualy improved at fhe close
gof the year is exceedingly gratifying and certihes
sild safe management which they enjoy II is
fstiisdng sis9 10 he able 70 ADD that there has
az tar as ! have been able to ascertain, by de-
savings bank during the year
There continues 10 be manifested tendency
toward combination or Consolidation OF competing
banks especially in the more important financial
centres BESIDES actual merger or absorption az a
means thereio the method is employed OF unifying
interests by affecting controlling ownership by
lions, which are thus made aHxiliary or co-opcra-
tive in their transactions, occasion may arise.
are proceeding in a like direction by acquiring
eoneE banks oy the process Of merger and then
suits. The Corn Exchange Bank has taken over
hIanches which it has opened independently The
Anlon Bank OF Brooklyn. recently acquired the
u as branch The Bank OF New-Amsterdam the
Colonial Bank, the Hamilton Bank. in New York
nc 5NeIilh ward Bank the Brooklyn Bank and
the Bank OF Jamaica also have opened branches
had been opened n September 90 and they re-
n9riee deposits ayerasing nearly sl.oooo0O each
tuuons since they were opened aggregated 50 81 592
The system Of branch banks is permissible undel
the law only 10 State institutions. and 10 thes,
nowhere outside Of Greater New-York and onI,
-tor the receipt and payment OF deposits and 70
s nlaksing loans ano discounts 10 the customers o
sDch branch ofiices only,
The number Of savings banks in the State were de
creased by one during the year, bank hav
Bank having surrendered its charter after paymen
Sg q exeIg one % of ITS Seposors in full with an extr
increased sS7660 go SO from January 1900 to JuiS
accounts OF 546i5.
Mr. KiIburn recommends:
First-Compelling incorporated banks to file the