The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1905-02-11
OBSTACLES IN WAY
Of SAVINGS BANKS
Why They Do Not Ineor-
p0rate Under District Law.
BANK PRESIDENTS VIEWS
Might Do So and Become Subject to
Government Control if Law
Were Changed.
BANK PRESIDENTS VIEWS

S. j. Masters, president of the People
Bank, was asked today to give The
Times his views concerning the suggest
ed legislation of placing savings banks
In the District under governmental con-
troll.
In regard to the discussion of the
matter of subjecting the savings banks
of the District of Columbia to the super
vision of the Comptroller of the Treas
urS, appointing an examiner for such
institutions in the District of Columbia, -
said Mr., Masters, II find by referring to
the code that section COS, of subchapter
4, reads as follows:
Any three or more persons who de-
sire To form a company for the purpose
of carrying on an enterprise or business
which may be lawfully conducted by an
individual excepting banks OF circula-
ton or discount Corporations to Guy,
sell, deal with real property, rail-
roads, and such other enterprise or busi-
ness as may be otherwise specially
provided for in this code, may make,
sign, ard acknowledge before some Off
Ger competent to take the acknowledge
ment of deeds and file in the office OF the
Recorder ct Deeds, d certificate in writ
ing
clllation, It is not a bank of discount,
but granting that 1t be q bank of dis
count, the law further states, and such
other enterprise or business as may be
otherwise specially provided for in this
code.
Code OF Savings Banks.
1.-THE provisions in the code in regard
to savings banks are found in sub
chapter TO- sections 713 and ia, which
reads as follows;
Sec. 41S-A1l savings banks or savings
companies or institutions organized I'M
der authority Of any act of Congress to
do business in the District of Columbia
shall be and are hereby required to
make 10 the Comptroller of Currency
and publish all the reports which ma
tional banking associations are required
10 make and publish under the provi-
siens OF sections 5211 5212 5213, of the
Revised Statutes, and shall be subject
TO the same penalties for failure to
make or publish such reports as are
be collected by suit before the Supreme
Court OF the District of Columbia.
Sec. 1.-THE Comptroller of the Cur
Fency, IN addition To the powers now
conferred upon him by law for the
examination of national banks, is here
by further authorized whenever he may
deem il useful. to cause examination
10 be made into the condition of any
bank in the District of Columbia. or
ganized under act of Congress. The
Comptroller. at his discretion may re-
port to Congress the result of such
examination. The expenses necessarily
incurred in the execution Of this sec
ton shall be paid out of any appro-
priation made by Congress for special
bank examinati ton.
Can Incorporate Now.
any savings bank can, therefore. in
corporate under the general laws of the
District of Columbia for any amount Of
capital stock desired. After having pro-
cured such charter, such institutions are
subject to the laws pertaining to saw
ings banks as well as the general cor
poTation laws.
The general laws however, prohibit
corporations from buying stock in other
corporations. which privilege is granted
TO the trust companies and national
banks. and that is the only reason that
can sec why all of the savings banks
of the District of Columbia are incor-
porated elsewhere.
IF the code Is changed allowing saw
ings banks the privileges they now
enjoy. well IS to buy stocks Of other
corporations. they could then procure
their charters under the District laws
and in that way be under the superVi-
sion Of the Comptroller of the Treasury.
7 advocate such a change in our laws,
rather than appointing a special examin-
CT for savings banks Of the District oil
Columbia -