The Washington herald., 1906-10-20

With respect to the action of the Camp
trolIer's Office. Mr. Kane issued the fol-
lowing statement.
Until the passage Of the act of Con-
gress Of June =. 1856. any sort OF "a
wildcat banking venture could he started
in the District of Columbia under char
ters obtained from the States Banks Of
this character were under 80 supervision
whatever and Washington was promis-
ing field and safe harbor for them.
Since June p last all savings banks.
trust companies. or other banking fnstitu-
tions organized by virtue OF the laws OF
any Of the States. and having an office or
banking house located within the Dis
trict OF Columbia where deposits OF saw
ngs arc received. were placed under the
supervision of the Comptroller Of the Cur
rency. and are required TO make sworn
reports 70 the Comptroller and be ex-
aminod the same as national banks.
The closing of this concern was the
result of the first examination made of
its affairs by the national bank examiner.
It's principal business seemed 10 be the
guaranteeing OF bonds and stocks OF IN
known or questionable value. and it's
principal assets consist Of securities Of
This character.
wildcat or speculative banking viii
not be tolerated in the District Of Co
lumbia SO far as il lies in the power Of
the Comptroller Of the Currency TO pre-
vent such banking
Founded by HeInze-
The Aetna Banking and Trust Company.
Of Butte. Mont. was founded by F. Au-
gustus Heinze the well-known operator
in copper. of Montana. About "a year ago
he sold his interest in the institution TO
Fred &. Sweet, of New Haven. Conn.
and the control of the institution was
sold again last August to G. W. Dodson
OF Boston. John T. Hoag had charge Of
the Washington branch OF the institution
under the title Of assistant cashier II
L BagIey and F. T. Garside were others
connected with the company
Little could be learned yesterday about
the bank. its resources or depositors.
other than the information given out
by Deputy Comptroller Kane One man
appeared at the Treasury yesterday 10
inquire about the stability of the inSti-
tuition, saying that he had $4,000 on de-
post. lie said it had been there Tor
three years drawing 3 per cent interest.
Local banks had few transactions with
the concern. their dealings being limited
TO cashing an occasional check drawn on
the institution. Several bankers were
much astonished yesterday when told that
Il carried so long list Of depositors
Cashier Talks.
Assistant Cashier HOag was seen at the
banking house yesterday afternoon and
talked briefly about the suspension. He ]
said the parent institution in Butte is
solvent. and he felt certain depositors
would be paid in fun. He said the hooks
carried many small depOsitors, and that
1t would take some days to straighten /
out matters so as to determine Just what
the branch could pay if It was called /
upon TO settle with its patrons. Mr. Hong
stated that he had telegraphed the ac- 1
ton of the Treasury officials to the home 4
Office in Butte. and up to the time
Of the interview had not heard from 4
his superior officers.
Deputy Comptroller Kane said his Office /
was clear on the duty 20 close the doors
Of the concern under District law bur
he could not say yesterday whether the
in Butte could be held re-
5ponsible for the liabilities of the branch
here. He said that was a question for
the lawyers Of the department to de-
iefmine.