New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-05

nywsW--
Wherein is described great banquet. about
while those who have prepared the feast and ere
called upon to foot the bills arc permitted only
guests pass into the banquet hall-A peep
through the crack OF the half-oP side door Or
banks and financial IT. IONS e0Orn,ous
fortunes for the few who handle it, but not tor
the many who own it-5anks that pay deposters
pc to 495 while earning 200 to 1900 for their
stockhoIders-How $500 was saved from
trust company that failed, and what the money
is earning now-SpeeIal Introductory Mareh
offer to investors that will prove interesting 70
all readers.
on the subject Of banking. | have been look
ing up statistics, and examining some rather
exclusive publications which are authorities on
the subject.
| wonder how many of my readers really I'M
derstand the dark and mysterious side OF banks
and banking? | wonder how many have actual
~ penetrated beneath the skin Of the colossal
system in order to ascertain how the money
of the people is handled by our eminent and
distinguished financiers? l wonder how many
have been privileged TO peep in at the side
door and discover how the money OF the people
deposited in banks and trust companies ana
for which depositors receive in many cases no
returns whatsoever, and at best only meagre
returns is really handled wonder how many
were ever granted the privilege of a look
through the crack Of a half-open side door long
enough to understand how this money IS made
to earn enormous fortunes for the few who
handle it, but not for the many who labored
for 1.-THE many who burned the midnight oil
for 1.-THE many who own it!
l have an idea that very few of my readers
at least, very few Of those whom L would like
to know personally and address by name-un-
derstand great deal about the subject. For
that reason, during the last two or three days
or, rather, nights, when all was quiet have
given sufficient time to turn over the pages
of books and examine reliable statistics on the
subject, and l make bold to say at the
beginning that what 1 shall write in this col
umn to-day will open wide the eyes of count
less thousands throughout the country, who
little dream that such a condition actually ex
lists
l am going to give some facts as to bank
ing profits obtainable only by those who have
access to expensive books and statistics not
easily to be had. am going TO show what
the peoples money is doing for somebody else.
l am going to show that by the labor and saw
ings of the people, great banquet has been
prepared, about the boards Of which gather
only the Captains of Industry, while the people
themselves. who have prepared the feast and
are called upon to foot the bills, are permitted
only to stand by and see these Captains Of in
dustry as they alight from their gilded chariots
and pass in.
shall begin by directing attention to the
banks of New York City, that enormous centre
of the financial system Of the United States
There. If anywhere, is the test properly made
In New York City are erected the thrones of
money kings and there also are to be found
the heaviest burdened slaves Of the power Of
gold
In the City of New York there are fourscore
national banks Taking those whose figures
are available in all details, find that the total
capital is $79, 800, TOO-Surely not a very large
sum TO be invested In national banks in the
second largest city of the world. The figures
before me show that the investment Of S79-
IN IN,
has proven a fortunte investment indeed for
the gentlemen who either bought or inherited
the shares In the various Institutions.
The figures before me show that these banks
have piled up the enormous surplus and undi-
vided profits of S103, 951 $780, and that the total
investment is yielding average dividends OF
ia per cent per year. And vet savings banks
allow per cent and per cent for money de-
posted, while national banks and trust cOmpa-
MES, as rule, favor" depositors by allowing
interest at the rate Of per cent on monthly
balances exceeding $1,000
have directed attention to the average rate
of dividends paid by the banking institutions
OF New York, because l want to be conServa-
tive, and yet | cannot resist the temptation to
point out few institutions that have proved
far more profitable than the average
The Astor National Bank of New York paws
TO It's stockholders each year 20 per cent. while
the New Amsterdam distributes among the
small coterle OF fortunate gentlemen holding its
shares n per cent annually. The New York
County Dirk, WIN an original and present in
YeStment In capital stock of 100000 paws TO
the gentlemen owning this stock rs per cent in
dividends each year, while the little Fifth Ave
nue. Bank with its absurdly small capitaliza-
ton of 100000, divides up profits of an even
100 per cent among its stockholders each wear
with an occasional extra plum of 100 Der cent
In order to keep its stockholders thoroughly
good-humOred. And then there is the Cbeui
cal National Bank of New York which com
menced business good many years ago with
us modest capital of 100000 The statistics
before me would indicate that the original
stockholders of this institution have no cause
20 complain, as they receive annual dividends
at the rate of 100 per cent.
The actual money invested i'm these hanks q
represented only by their capitaI stock-tba
capital paid i'm. The enormous profits which
they are able to distribute TO their stOckboId
ers is made from the peoples money left ~,
deposit at meagre rates of interest It is nor
made in any other way
Tor the information of any OF nv readers
VINO would like to make an investment in tho
STOCK or some of these institutions I bara,ritb
quote schedule of prices, which will M least
prove interesting: " ''''
STOCK OF the Aston National Bank may ba
purchased at $500 per share while tho Nov
t.nslclH ~ may De had ut an even $500 per
~ so 20 n'och Oh the fhth Avenue may he had
at S5'l'o While stock of the Chemical National
Bank IS lard to get ut Sizes per share
tanks and trust companies e R1ston phil
oeIphla. Chicago. Pittsburg and Cleveland ond
everywhere throughout the country ort milne
up nlg surplus accounts and distributing IN
sto'NhUiuerS enormous profits The dividend
Idle NdfieS--ln some instances il is not so r.
as IN others but the rate If iptarest H. -
uepoSitors Is, practically speaking eyeI.yIvl,,ra
the S;lile-the smallest and most mp1,,ro tha+
,uepoStcrS will be content with. II seems T., IT,
, tic lue;l oil bankers To make all they can for