New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-01
A SUPERVISORS DUTIES.
The superintendent report continues:

A SUPERVISORS DUTIES
The Superintendent report continues:
A supervising officer must Of necessity depend
upon the reports of his examiners. ana even wen
dubious condition 1t does not necessarily follow
th e' Controller Of the Currency can cite you to
many cases, can. where institutions have oeen
condition of which was somewhat ,precarious. /
believe it to be one of the highest duties OF SUI
Be reasonably possible to do To do otherwise
supervising officer into wrecker.
During my term of office which began a1od IN , Jan
the whole number of State banks when nave
eegea Q sRe oa f tha ox
New York This trust company has paid its de- d1
tRheir dspostors in full: one the Elmra city Bank;
or the of dssvn the
corporation and paying back t fn To of the
banks did not 60 into the hands Of receivers: but
were taken over by other RanH on Iao and
the NewYork State Banking Company OF syria
The Murray Hill Bank; of the city Of New y!
which was closed in AUGUST 1885,. paid Its de-
s RGa6 DPd sent @P cent the BANK
s nc i0Ssd fH the ne German are s Bank
1 am informed by the receivers of two OF tneSg
am told by those supposed to be in position to
know that the German Bank of Buffalo VIII pay
During the same period of nearly ten years. sev5
eral banks have been induced by me tba e their
eondo or that tSgg beG os
their ability to make money.
would certainly welcome any amendment to tho
better methods Of supervision or, examine ton I
believe the law which WAS Passeq v last reofs will
go far toward improving the banks ana trust com
panes Of our state IT mas 100 oacf and Certainly
It often the fact that directors know TOO NIUE
they ar ree connectsd This law which compes
nr their
the months OF April and October of each year, and
report thereof to be mace 10 5ne o. should
go far think 1t will toward acquainting dlreo-
situations.
CANNOT KNOW EVERYTHING.
In another part of the report Superintendent
Kilburn says:
strange and wholly unwarEantable theory Of super
modern critics assert as to the Banking Depart
ment Unregardful of the fact that an institution
strong and that it may nevertheless be wrecked
or by lts man 6 Of Banks
has no voice in choosing officers. or authority to
they Would yet charge him with the require
that he be informed constantly of every bank and
cience to know with certainty what loans and in
SAINTS With NH nfabilify Of judgment Whefher the
Of credtoPs and Of the RHb will 1 be IS S
difficulties, or by permitting It to continue business
indeed some deny to the Superintendent the right
to the exercise of any discretion whatever in such
diatey to take possession of any institution whose
doubtful its ability to meet fully all of its oblga
lions at the moment.
Mr. Kiburn especially defends his action in
the case of the Merchants Trust Company, of
New-York whose failure, he says, is the only
one of trust company in this State in more
than ten years and the second in the history Of
the system in this State He says:
wretchedly poor Judgment and Encouragement
had loaded UP this company in 1903 with guarantees
and poor loans and Investments to an assrga{fe
to the Superintendent Banks only the alternative
GeIeraI for institution Of proceedings in insolvency
of trying TO work 1t out of It's dificulties: II
the deposItors While negotiations which We're
once opened by me encouraged the hope that the
institution might be saved or at ieas{ tna5 n Gle
transaction these efforts brought release rel to the
e co a IRON o9 oven % on account Of an enter
prise which afterward became BANKRUPT Provision
iateraled loans though continually promised by
in NAV last the doors Of Institution closed.
It has since paid every depositor 100 cents the
cided in it's favor there is promised substantial
dyidsnG to b the So and 100000 more
were realized by the rreditors and stocahoders OF
sued with regard to It than could have been real
erai at once upon my discovery of the blunderng
and rnismana cement of it's officers. In a consider
able number of other cases. banks are to-day pros
porous and strong which could possibly have
paid out in full had they been closed summarily
and anxiety ascertained by this department.
THE GERMAN BANK CASE.
The failure of the German Bank of Buffalo,
another instance in connection with which
Superintendent Kilburns course has met with
adverse comment. is discussed. He says:
II took place in circumstances out of the ordinary
and affected something like eight thousand deposit
tors The disaster that came to II may be traced
primarily excessive payment of interest on
deposits practice which I regard IS the greatest
have my utmost to discourage and diminish:
TO large loans each of three four interests
on inadequate security, and TO careless manage
ment
A change of ownership of the German Bank oc
Cured in March. 1904 control having passed from
the locality and unidentified with its people and
affairs Between examinations they borrowed
largely from Distrust of the new management
developed, and caused run upon the bank Its oil
rectors declined support the institution with their
personal means and credit, and under these cordi-
lions the Clearing House refused assistance and
relief In consequence compelled to close
anfairs II was in due time referred by me to the
ATTORNEY General and receiver was appointed.
These two instances with the State Bank of
ovid and the State Bank OF Forestviue. make
a total of three State banks and ore trust COM
pany failed during the year