New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-06-07
FINE OF $4,000 FOR A BANK
CHARGED WITH VIOLATING CHECK
COLLECTING RULES.
ACTION TAKEN BY CLEARING HOUSE AS
ISOLATION AGAINST THE CEN
TRIAL NATIONAL.

AT fully attended meeting yesterday morn
ing Of the Clearing House Association. President
George F. Baker presiding. allegations against
the Central National Bank of violating the
Clearing House regulations making it obligatory
upon banks members of the association to i'm
pose certain charges for the collection of out OF
town checks. except checks payable at the So
called discretionary points" were presented.
and were unanimously approved, and the offend
ing institution fined in the sum of S5OoO
A second conviction for the same offence would
expulsion. This the first trial and
conviction since the regulations were adopted
in the spring of 1899, although more than one
other bank has been suspected of evasion of its
duty, under the constitution OF the Clearing
House Association, to charge for collection Of
items payable at out of town points, these
charges being placed at mot less than one-tenth
of 1 per cent of the amount of the items re-
spectively," and mot less than one-quarter Of
per cent" according to the respective districts
in which the checks may be payable.
The specific charge against the Central Ma
tional Bank was that of violation Of IAN amend
ment Of Article VIII of the constitution That
section is follows:
In case any member of the association shall learn
that these rules and regulations have been vio-
ey Iepo 91 the fae tn the Chairman Of the
Clearing House committee, in his absence, to the
formaon Il from ae any that there has been
violation of the same said chairman or, in his
COMMITTEES. The Committee Shall investigate the
facts and determine whether tor s conee
shall instruct the manager to formulate charges
charges together with written notice of the time
and place fixed for hearing regarding the same
with such violation, which shall have the right at
ahe s96g such 1e aus it may desire The
committee shall hear Whatever reeXant evloenGe
ments may be submitted. and shall determine
whether the CHARGES are sustained In nc case Sent
ittee shall call special meeting of the as, assosia
c ciG ms If the report Of the committee is ap
proved by the association, the collecting bank
ISOLATION the sum of $1,000. and in case Of second
violation Of these rules and regulations any col s
d from r using its
PEELED from the association.
The gathering of evidence necessary to make
a case against the Central National Bank has
been in progress for some time, it was said yes
terday and has been a slow and difficult task
This evidence laid before the Clearing
House committee, which had had the matter
under consideration for some time and had held
at least one hearing at which the Central Ma
tional Bank had been represented by It's ofhcers
and counsel.
The committee on Monday decided that the
rived at that conclusion. called a special meet
ing of the association, in accordance with the
regulation quoted, and presented at that meet
ing its report, the findings Of which were unanl
rnously approved. Edwin Langdon. president OF
the Central National Bank present at the
meeting. and made the following statement in
behalf of his institution:
To the Members Of the Network Clearing House
The Central National Bank. in it's reading of the
Clearing House rules, interpreted them as an at
tempt the part of the Associated ba1as 70 Pr
vent for the future the large losses ncdent 70 the
Collection of out-of-town checks in the past a
natural coroIIary its Interpretation would seem
to be that If such checks could be coIlecteo wtnO
snv loss to a member of the aSsocia ton the pur-
poses of the rule would be subserved Inc ousl s
believe, will convince you that the oank acteo I "a
entire good faith IN its Interpretation OF the RUE
mittee that the transactions were In VOCATION OF
the rule the bank at once discontinued the prac-
End courteous consideration given to this subject in
ali its aspects by the Clearing house
After consideration on our part Ine pank s mas
orr regret that any act of the bank should
he the subject Of lust criticism, and, representing
nanaIfv as YOU may see fit to impose, but, sug-
costing that the loyalty of the BANK IN the pasC
and the absence of any improPer Iint VIEW
present may warrant you III IdAllS 9" -0iiiO-A' w"
in the present case
The Central National Bank. which is at NO.
800 Broadway in the drygoods district is one
IF the conspicuous banks of the Clearing House
Association It's directors are William A.
WheeIock Edwin Langdon, Woodbury. Lang
don John A Mccall, Henry Tuck Henry Sanlp-
son Louis F. Dommerick, Jacob 5. Bernhe1ner,
Frank Jay Gould, William NJ. Woods and John
P. Mum.