New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-25
BRANCH SAYINGS BANKS.
FaUored by Keep Outside of County
Containing Main Office.

Albany Feb. 24.-An amendment to the bank
ing law which would permit the authorization OF
branch savings banks outside the county where
the main Office Is situated IS one Of the chief
recommendations OF Charles Halam Keep, the
new State Superintendent of Banks IN a report
on savings banks, trust companies, safe deposit
companies and miscellaneous corporations trans
mitted to the Legislature and made public to-
night. Superintendent Keep favors amend
ment 20 the banking law which would leave TO
his discretion the number OF branches of bank
ing institutions that should be established.
The report comments on the Interpretation OF
the law which allows the trust companies 70
open branches without limit as to number or
restriction as TO locality. provided such branches
are in the city where their principal office Is
situated. The opinion Of the Attorney General
on this point, that it requires the Superintend-
ent of Banks to approve" the opening Of branch
banks In New York City. providing the parent
bank is solvent is also referred 10 in the report,
as follows:
There is neither consistency nor prudence in
such condition. Substantially the same QueS-
lions Of public convenience and advantage and
or SAFETY, too. are involved in the matter Of
starting such branches obtain with regard
10 organizing new institutions, or, rather, they
may in some circumstances be even more deli
cate. For Illustration. a bank trust COM
pany which might be permitted with entire pro-
priety TO do business in certain quarters OF
Incur dangers, If II were 10 extend its opera
lions to other localities without increase of capt
tai or OF surplus, and without the intimate
knowledge or the methods OF business peculiar
to this new field. The banking law should, in
my opinion. be amended that the number OF
branches which a bank may have shall bear
some fixed relation to the capital and surplus
OF the institution. and that the Superiutend-
ent OF Banks shall have the same power TO
grant deny the application of either a bank or
trust company TO establish a branch Office that
he now possesses with regard 10 issuing his
certificate Of authorization TO a new institution.
Superintendent Keep refers to the fact that
there thirty counties in the state without
savings banks. He then speaks Of the benefits
to be derived by the people from the establish
ment Of a banking institution The report adds:
II then there be feasible method for extend
ing to the counties and towns which have no
savings banks the conveniences and advantages
they bring. there certainly should be failure
TO employ It, In my Judgment this might be
accomplished by the authorization Of branches Of
savings banks. This method should, however.
be used at first with great conservatism and
care. The same discretion should be vested in
the Superintendent of Banks TO approve or dis
approve the establishment of such branch that
ne now possesses In the matter OF charterinG q
new savings bank; and until the scheme shall
have been tried no branch should be permitted
To open at any considerable distance from the
principal Office of the parent institution. Sub
ject TO these conditions I recommend that the
law be amended 10 authorize branch savings
banks.
Superintendent Keep recommends that trust
companies be compelled to report unclaimed de-
posts and dividends
According to the report the savings banks
again lead the trust companies in the amount Of
resources. the excess being just under 500 O00,
OO0 The number OF savings banks which last
year paid per cent on all part of their de-
posits was seventy-six. Only two years ago the
number only forty-six Extraordinary ac-
uvity IN transactions and a very large increase
in Withdrawals are indicated, says the report
The taxes on surplus paid TO the stats IN 1906
by savings banks aggregated S796S02, which is
S9.11O 81 more than the amount paid in 1905 The
condition OF the savings banks remains al
together satisfactory, according 10 the report
The aggregate net increase in capital of the
100000. though some OF IL had not been paid in
az the time of the January reports, and two
report