Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-01-31
PRIVATE BANKS
IN WARM DEBATE.
legislative Committee Discussed
Pending Measures With Much
EarnestneSS
Mr.. M'CORNICK'S OBJECTIONS.
Representative Joseph Talked Till
Chairman Grunlor Held Ills Head
And Walked Away Dizzy.

Representative Harry Joseph says,
There shalt be no change in the law
regarding bank examinations to close
the loop-hole by which private banks
may continue TO accept deposits from
people who believe them sound, when
as a matter of fact they have been for
ten years insolvent."
Representative Joseph said this SO
much and 80 often in the house meeting
OF the committee on banks and banking
this morning, that Chairman Grunfor
OF the Schettler bank creditors, who
was there to explain the need for such
law left the meeting feeling that he
had talked In vain. /?
My, but that man Joseph is a talk
En-" said Mr.. Grunfor, as he held his
head and left II Wish / could talk
as fast as him, and then maybe ] could
carry on conversation with him. AS
II was, don't think anybody there eX-
cept Mr., Mccormick, got his ideas well
before the committee"
The COMMITTEE meeting this morn
Ing was for the purpose OF talking over
with people interested bills now before
the committee on banking, especially
that including private banks and ali
persons taking money on deposit, In the
Jurisdiction OF the bank examiner.
There were present besides the COM
mlttee, w. $. Mccormick, II. w. Will
son, OF the Bank OF Commerce, Chair
man Grunfor and the Schettler credit
Ors, and II. II. Anderson. receiver of
the Schettler bank. The discussion was
not completed when the committee ad-
journed, and another session will be
held Thursday morning at 10 o'clock.
The members of the house committee
are j. a. Anderson, A. V. Anderson,
Kinney, Hawley, and Joseph.
In the discussion today the time not
occupied by Mr. Joseph was taken up
by Mr.. Wilson, Mr.. Mccormick, Mr.,
Grunfor and Mr., Anderson in explain
ing their Views upon the subject.
j, a. Anderson, who presented the
bill under discussion, explained that It
was not aimed at a certain bank In
Salt Lake but had been presented be-
cause Of an instance OF failure that
came under his notice at Morgan City.
Mr.. Wilson, of the Bank of Commerce,
spoke favorably of the measure, while
Mr. Mccormick was opposed to it, Me-
Cornick's bank is a private institution
doing business that runs up into large
lB uItS' me INV Allows MN 10
make loans that restrictions on
state and national banks do not adj
NIT A national bank can loan only
10 per cent Of its capital stock TO any
one concern, while a state bank can
loan Is per cent Of its stock similarly.
But IN the case OF private concern
like the Mccormick bank, its business
Is frequently with companies handling
and investing money that runs up into
the millions, and Is OF necessity forced
to have freer hand than a national
or state institution. Mr. Mccormick
Il is understood, would not feel himself
benefited necessarily by having to open
up his books for the Inspection OF an
examiner
When seen after the committee meet
ing Mr., Mccormick said
my attitude Is merely that nothing
ls to be gained by having state ex-
aminer. Banks that have been exam
med regularly have often failed. Did
you ever hear Of bank being kept
from falling by the efforts Of an ex-
aminer?"