The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-02-01
BANKING BILL
Is DISCUSSED
w. S. Mccormick Fears Passage of
House Measure.
HOT FIGHT IN COMMITTEE
CHAIRMAN ANDERSON DEFENDS
PROPOSED LAW.
IT FIGHT IN COMMITTEE

The house committee OH banks and
banking held a special meeting at 9
clock yesterday morning to hear ar
guments pro and con on house bill No
O. introduced by Chairman J. A Ander-
s0i' providing for the inspection Of pri-
Nhte ar well as public banks by the
state bank examiner. Following A six
" minute session. the committee ad-
JcIrned TO an executive meeting set for
Ills morning.
w 5. Mccormick, alone. appeared to
urge the coWmittee to report unfavor-
ably on the bill. +. w Wilson, cashier
or the Commercial National bank.
spoke IN favor of the measure, as did
andrew GrundfOr. one of the heaviest
lCeers by the recent failure of the
Schettler private bank Former Bank
Examiner r. r. Anderson. at present
receiver for the defunct SChettler in
SttutiOn. was present and replied to
queries from the committee members in
regard to the present duties of the state
bank examiner.
Hinted at Discrimination.
Mr.. Mccormick set forth that the bill
was aimed directly at his private bank.
there being no other concern in the
state which an amended law would
affect He thought that the banks
statements should suffice without the
tormality of a state inspection.
His depositors. he claimed, and others
who had financial transactions with his
bank would resent such examination.
He thought they would be opposed to
anyone knowing all about their stand
ing. He doubted that state examina-
tons had really averted many failures.
IN various states where such a law was
IN force there had been failures despite
its exercise.
These were the principal points
Which Mr.. Mccormick asked the com
1nittee to consider, although he spoke
several times at intervals during the
hearing.
{. w. Wilson For Bill.
l.. W. Wilson emphasized the point
that in appearing before the committee
he did not do so to seek the passage of
bill which affected any one institution
or person He told of having worked
Tor similar legislation when in the leg
1slature eight years ago. The question
ne said, was one affecting the state and
the public al large. and as suCh he con-
sidered IL the right and duty of anyone
10 voice his opinion.
Mr.. Wilson stated that in permitting
any corporation. public or private. to
place over its door the sign bank" the
state was assuming a certain RESPONSE
biilty, guaranty, as it were to the
general public that such institution was
worthy one Mr. Wilson failed to see
Why, If bank statements contained the
III.
be any fear of state inspection
The findings of the state bank exam
1ner uld not become public property
i hey could not be made the means of
one Individual ascertaining the financial
transactions of another. He nOinted 10
i the fact that in states where examina-
non of private banks was in force fail
ufes had been notably Iessened. The
heIghborIng state of Wyoming had
passed such a law.
L. -
rennittee on banks and banking. as
FCred Mr. Mccormick that his bin was
NOT aimed al his bank He stated that
the Salt Lake institution had not beap
- ms mind at the time he drafted the
measure. The new provision aUthOriz-
Ing the state bank examiner TO examine
private banks was aimed as much at
cooperative concerns which paid in
NeSJorS dividends as at banking houses.
lie cited the failure of the cooperative
store at Morgan City recently a. an in
F,ance of where state inspection would
have saved many depOsitors
Andrew GrundfOr told of his and
DtnerS losses by reason of the SchettIer
bubble He thought no law could be
stringent enough unless il protected de-
positors Of private as wen as public
banks
Receiver r. r. Anderson did not
Speak on the merits OF the bill. appear
Ing merely TO enlighten the committee
go m iiliiiId1ioliS Wnlcn the present
law places upon state bank examiners.
Committee Is CanVassed.
The committee on banks and banking
IS composed OF J. A. Anderson. chair
man; \. V. Anderson, HawIey, Kinney
and Joseph.
or these it is known that at least
three in their present frame of MIND.
viii work 10 defeat the bill However
in case an unfavorable report is re-
turned with recommendation that the
bin be not passed, it is probable that a
vote VIII be forced and each member
d the house forced to show his attitude
toward the proposition To safeguard
private bank enterprises with a state
Inspection.
PLEADED MOL GULLY