The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-31
SUPT. KILBURN'S LAST REPORT
HE FAVORS BRANCH SAVINGS
BANKS IN THE CITIES.

Defends His Action I'm Connection With the
Failure OF the Merchants Trust Com
pany and the German Bank or Buffalo
Prosperous Year for the state Banks.
ALBANY, Dec. 30.-State Superintendent
Of Banks Frederick. Kilburn, who is to re-
tire from the Banking Department shortly,
has completed his last annual report, IN
which he goes at length into the circum-
stances attending his Official action in
connection with the failure OF the Mer-
chants Trust Company of New York city
and the German Bank of Buffalo. He points
out that every depositor Of the Merchants
Trust Company has been paid in full and
that any other course would have resulted
in seriou loss 10 them.
Mr.. Kilburn still insists that had the direc-
tors Of the German Bank Of Buffalo simply
loaned their credit to it when 1t was in
trouble the institution would have been
saved and all losses to depositors pre-
vented. Mr.. Kilburn, while admitting hat
his action in these matters was purely q
matter Of judgment. believes the cir
cumstanoes warranted the course he took
in regard TO each institution at the time
of its trouble, and he asserts that through
pursuing a similar course other nancia
institutions nave been saved and all losses
to depositors prevented by conservative
and considerable action on his part.
The appointment OF a commissioner to
work in conjunction with the new Super
intendent OF Banks for the purpose OF re-
vising the banking law and the enactment
of a new banking law by the coming Legls-
lature is recommended by Mr.. Kilburn.
He renews his suggestion that a law
similar to the one in force in Massachusetts,
be enacted governing private banking
and that they be compelled TO deposit
10000 security with the State Banking
Department. The superintendent points
out that the inexperienced and ignorant in
New York alone lose 81 ,OOO,O0 o annually
through fake private bankers and alleged
steamship ticket agents.
He says that there is a misconception in
the public mind regarding dormant ac-
counts in savings banks, which are accounts
which have not been added to for a period
of twenty-five years. The report shows
that the orman accounts DO not asgregaue
more than a million dollars, they having
been reduced by 100000 during the last
sig wears. The banks are using every
effort to locate owners OF dormant accounts
of which one bank alone holds a large pro-
portion Of the aggregate.
IL Is advised that the banking law be
amended 50 as to allow savings banks 20
open and operate branches, especially in
New York city and other cities OF the State.
Eventually Mr.. Kilburn believes savings
banks with established regulations should
be permitted to establish branches in any
of the thirty counties in the State in which
now there is no savings bank because of the
severe conditions exacted before a new
savings bank can be established. He recon-
mends that discretion be given the Super
intendent Of Banks regarding the approval
of the establishment Of branches OF trust
companies and State banks. 1t is also
recommended that instead OF requiring
savings banks TO publish annually a list
of dividends and interest exceeding $50
remaining unclaimed for over five years
the savings banks simply file these lists
with the Banking Department and thus
save the expense OF publication.
The national banks operating in this
State showed a loss Of resources for the
wear of $50, 600, 900, while the
Of the State banks increased sac ,OOO, 900.
The superintendent says that all Of the
financial institutions under his supervision
have enjoyed an unusually prosperous
year.
While the Withdrawals from savings banks
have exceeded the deposits recently Mr..
Kilburn finds that the reason is due TO the
demand for money through unprecedented
activity in business, and in New York city
especially TO real estate Investments. he
SAYS that three Newly ork city savings banks
alone had Withdrawals of 81 ,0O0, 900 each
TO be used in land purchases.
Mr.. Kilburn finds hat the condition OF
the building and loan associations con-
tinues generally TO improve.