New-York tribune., 1902-08-22
OUT OF TOWN CHECKS.
4 PROPOSITION FOR AGITATION AGAINST
THE CHARGES NOW IMPOSED
Upon THEM
To the Editor of The Tribune,

To the Editor of The Tribune.
Sir: In 1899 when uniform collection charges were
proposed by the associated banks Of New-forhr d
reduction of 80 per cent was secured by The IT'D
Ilne on the greater number of checks which II re-
ceived. II New-York merchants exerted them
selves as The Tribune did they could abolish most
if not ALL charges on out of town checks II VIII
be well to recall how The Tribune succeeded
At first the banks proposed to charge not less
than 10 cents for each out Of town check collected
with an exception here and there. The tribune hau
reason to demonstrate. The annual subscription 10
The Weekly Tribune was 81 From one hphdreo
thousand subscriptions paid by check the banks
proposed to rake of Sl0,ooo-a tax Of 10 per cent
The project was denounced in editorial, which
called out many letters the editor, particularly
from newspapers and other concerns receIV!hs
r1yriads Of small checks. The Tribune printed with
comments column after column OF these protests
against the scheme Affected by the public clalnor.
the banks lowered the charge on s. checks to a
mill, and in different proportions lowered 'he
charges on other small checks
No less instructive IS the way In which the banks
granted The Tribune relief. Under the proposed
rules when several checks the same point were
deoosted at the same tine. they could be added
together and their collection charged for at the
rate OF 10 cents per $1o0. with minimum chaIs se
OF 10 cents. The clearing house committee sud
denly decided that there were just two points in
the United States-one IN which the charge was
one-tenth OF per cent. and the other in which 1t
was one-fourIn OF per cent II The Tribune de-
posted hundred 81 checks drawn on huhdFed
different cities in the first section the charge was
not TO be 10 cents each. II they were drawn on
q hundred points but the same as for collecting
s1Oo drawn on q single point This reduced the
charge SO per cent. Thus The Tribune won, and
all depositors benefited somewhat by the victory
In January last the late Frederick D Tappen as
s,re5 me that f. as some OF them proposed, New
England banks would pay without deduction or
DELAY New-York banks would receive checks on
them without charge TO derostors. No banker was
In better position TO know what New-fork banks
would do Relying upon his opinion have OBJ
tained written agreements from 2I5 banks IN New
England New-York and New England banks would
have come to an understs nGlng SIX 5nGHsS az; or
lived all opposition would have vanished At pres
ent Il bank depositors who pay these chaFges On
and unitedlv there would be opposition. and
New-York banks would cheerfully receive New
The present proposition of New England banks
involves the collection of their checks through the
PRODUCTION of out OF town clearings in Newly York
The clearing Of OUT OF town checks creates free
zone OF collection around the clearing point and
will do so here. mere has been free zone around
London since 1858. and around Boston since 1883.
These practically the oily places that as yet
clear out of town checks New-England will be
only a part OF New York's free zone which will
Include at least the States Of New-York, Pennsyl-
vana. Delaware and New-Jersey
The ew-Engand banks have spoken In favor or
a free zone for New-York, and offered terms which
make it possible to them One Of the best
prevail of New-York banks. Shall the men who pay
the charges express no preference? Shall city de,
banks and probably four-ffths of the New York
City banks in favor Of no charges on New England
should demand that charges on New England
checks shall cease, and that he clearing OF out Of
town checks shall be ntr9dpced TgTs at the 4fW
Brooklyn. Aug. 10, 1892 Z.