The San Francisco call., 1908-03-06
WOULD RAISE BANK
COMMISSIONS PAY
Financiers Suggest $4,000 q
Year as Lowest Price for
Competent Examiners
Divorce State Board From Pol.
itics PrOviso Insisted Upon
for Greater Safety

Have for bank commissioners the
same character of men as are bank
directors; pay them $4,000 a year sal
ary The banks, which now pay the ex-
penses of the bank commission, would
be glad to meet the increased cost,
owing to the guarantee of increased
protection" was the recommendation
cashier of the Mercantile trust com
pany, made to the legislative investi-
cation committee yesterday
Have a competent examiner as the
head of the commission, l. w. He'll
man Jr., vice president and general
manager of the Union trust company
added. Let the salary of the head of
the commission be $4,000 a year or
more Divide the state into districts
paying the head man in each district
say. $4,000 a year. Have the district
heads familiar with their districts con-
dition. Take the appointments out of
politics, though still leaving it in the
hands of the governor"
Senator's Leavitt and Wolfe and other
members of the committee assented to
portions of the recommendations of Nc
Kee and Hellman, and it is probable
that the committee will incorporate
regulations for the change of the bank
commission system in the report it will
submit to the Legislature.
Leavitt introduced a lengthy Discus
sion of the radical sections of the bank
ing laws of Oklahoma, whereby banks
are assessed / per cent of their daily
average deposits for the purpose of
creating depositors' guaranty fund.
In case a bank fails the state takes
control of it's assets. reimburses depos-
itors out of those assets and meets any
| deficiency by drawing on the guaranty
| fund which, in turn, is reimbursed by
| levying on the stock holders of the con-
cern. But that suggestion did not find
favor with the bankers present.
The Legislators had invited represent
atives of trust companies to confer
ence yesterday morning. With Hellman
| and Mckee there were present William
G. Irwin. president of the Mercantile
trust company, and B. C. Tognazzi
manager of the Central trust company.
In outlining the scope of trust
company's activities, Mckee said that
there was not enough business of a
purely trust nature in California for
such a concern to thrive on, so they
had to do a general banking business
Hellman agreed with that view, and
recommended that laws be passed pro-
hibiting trust companies from mingling g
their trust and their banking busi-
nesses. He said that to properly ex-
anime a trust company should take SO
days, instead of the one or two days
the bank commissioners are able to
devote to each institution. He spoke
of the danger of trust company max
ing insecure investments, and spoke
favorably of the system in eastern
states whereby securities are classified
by the bank commissioners.
In discussing the tOklahoma laws.
Senator Curtin thought that they would
tend to give the public confidence In
the hanks and prevent boarding. He'll
man feared that by insuring deposit
ors the state would tempt them to de-
post their funds in the banks making
the most alluring inducements. Leavitt
pointed out that the Oklahoma laws
made misuse of bank funds by bank
officer a serious offense, and declared
that the drastic laws would guard the
state from the evils of wildcat bank
ing, which Hellman feared.
A post mortem will be held this
morning over the California bank OF
Oakland, James Edoff, the receiver
having been invited to describe the
failure of that institution, so that the
LEGISLATORS, by a study of bad methods,
may obtain ideas for remedial laws.