The daily morning journal and courier., 1907-11-15
Action Taken by Governor Hughes, of New York, May Extend to Other Parts
 of the Country.
CONSERVATIVE MEN
 COMPOSE COMMISSION
All of the Members Are Presi- dents of New York Banks and Trust Com
 panies.


 circles here to-day the view was freely expressed that the action of Governor Hughes in appointing commission to recommend changes in the New York banking laws may result in a similar movement extending to other sections of the country and in the en- actment of legislation which will place state banking institutions on a basis and under supervision more closely akin to that of the national banks.
 A Barton Hepburn, president of the Chase National bank, and former controller of currency, who, it is gen. erally conceded, will be the chairman of the Hughes commission, Is known as one of the strongest advocates of the national banking system in the f. .nancial world It Is believed that MT, Hepburn will personally recommend Ito his associates that the state laws should be made to conform as nearly as possible to the federal statutes. All of the members of the commission appointed by Governor Hughes are presidents of New York banks and trust companies.
 By reason of New Yorks dominat- ting position in finance many bankers were inclined to believe to-day that the report of the commission made to Governor Hughes may form the frame work for legislation in many other states Speaking of the commission MT. Hepburn said:
 Each man has in mind certain definite ideas as to where and in what manner the banking laws can be im- proved It will do us all go to think the matter over to ourselves for a few days before meeting for the exchange of views We can also improve the week in consulting informally with ouf friends and gaining the benefit of whatever suggestions they have to of fer.
 We will be in a position to comply with Governor Hughes request for report by December 15. It is to be expected that the views of the indi- vidual members of the commission will coincide In most matters and our work will consist largely in bringing out and emphasizing the more import ant points. Public hearings will not be necessary so far as we can see at this time. I have been in consultation with Governor Hughes for several weeks. He has taken deep interest in the subject and is convinced that changes in the banking, laws are need ed We hope to be able to meet his views and to convince the legislature and the public of the wisdom of the course we shall recommend" Trust companies, 1t is understood, will come in for large share of con- sideration from the committee, and 1t l is believed that the suggestion will be made that the laws governing them should conform to those relating to the regular banks. Some bankers are inclined to the belief that the cash re- serves of the trust companies should be raised to the 25 per cent. requirel ment imposed upon clearing house banks. At present the trust compan- les are required to have reserve of only 15 per cent, and of this amount l 5 per cent. may be in bonds and an- other per cent in balances with other institutions, leaving an actual cash balance of only per cent. in the institutions.
 All the members of the commission 1 by Governor Hughes to-day slgnified their acceptance of the trust imposed upon them. The personnel is as fol- lows: A. B. Hepburn, president of the Chase National bank; Edwin s. Marston president of the Farmers Loan and Trust company; Edward w. Sheldon president of the United Trust company; Algernon S. Frissell, president of tho Fifth Avenue bank; stephen Baker, president of the Manhattan Trust com pany and Andrew Mills. president of the Dry Dock Savings institution.
 Banking interests generally in this city approved the action of the gov ernor in appointing the commission and expressed qualification over its per sonnel.
 Thomas F. Ryan in commenting on the appointment of the commission said l to-day:
 governor in appointing a commission to revise the banking laws of New York state. The gentlemen he has named for the work stand for all that is con- servative, and they can be depended upon to recommend legisltion which 1 will not only strengthen the institu- ! tions created by the state to receive 1 the deposits of the people, but will en- sure public confidence, so necessary to these banks and trust companies. Peo- pie all over the country doing business with trust companies and banks creat- 1 ed under the laws of this state are to be congratulated that New York has an | avaout|va like GoVernor Huvhesn