The Washington times., 1908-12-13
BANK EXAMINER
QUITS UNDER FIRE
c. c. Jones, of Chicago,
Said to Have Been Paid
by Institutions.
LETTERS ARE HELD
OVER HIS HEAD
Question If the Officials Actions
Constitute an Offense Is
Brought Up.

CHICAGO, Dec. -I3.-Cassius c Jones,
chief state bank examiner, assigned to
Cook county, has resigned as the result
of a threatened disclosure of letters
written to him by officials of the insti-
tutions which it was hts duty 10 inspect
These letters, it is said show a scan
dalous condition of the system OF bank
examination in Chicago. publicity of
which would produce dire results were
It not for the timely resignation of Mr..
Jones and the promise OF reform on the
part Of the banks and bankers involved.
The letters Indicate that Jones worked
in a private capacity as an examiner
for the banks while he was the ap-
pointee Of the State for the same pur-
pose. This is held by some State Of
fcers not 10 be improper. At the time
some of the letters were written Jones
was not in the state service, but at
other times while he was he conducted
examinations Of banks for the directors
and also examinations for the State.
The banking act says that no employe
Of a bank shall be appointed to inspect
the institution by which he is employed.
Statute Misleading.
The status of Mr.. Jones as a private
examiner and the construction OF the
statute might be subject to dispute-the
State officials say it was not only legal,
but in accordance with ethics for a
state examiner to work for the banks
rs a private eXaminer-but II is safe
prophecy that hereafter State bank ex-
aminers will not be employed by the
institution which they inspect officially.
The letters also show that he received
favors through bank officials. being the
recipient of railroad and Pullman
passes They show that the additional
expenses of maintaining an exclusive
Chicago examining Office were paid by
the banks. This was done with the
knowledge and approval Of the State
auditor.
The bank officials referred 10 the pay
ments-which were made directly to
Jones, by arrangement with Auditor
McCuTlough-as intended for his extra
salary"
It is shown that IN at least one case
Jones sold a copy of his report on Il
bank TO the bank officials apparently
before it was made public Mention is
made CT extra work done by Jones in
New York for which pay was forthcom-
ing.
The letters on their face would irdi-
cate that the bank officials informed the
bank examiner of the time when they
wished an examination of their institu-
tions made, but it IS explained that
some Of these requests were made Of
Jones acting in his private capacity as
examiner for the institutions. and not
OF Jones the State bank examiner.
The banking act forbids the appoint
ment of any employe of a bank in the
capacity Of State examiner and il is
the intention of the examination that Il
should be made at a time not expected
by the banks.
One of the letters shows that Jones
made a request OF Frank o. Lowden
for Pullman passes and the reply is in
teresting IN that it contains Mr.. Low
denis statement that he himself paid
hard cash when he wished to travel in
Pullman cars and that consequently he
obtained passes for no one
Many Of the letters undoubtedly were
written to Jones as private bank ex-
aminer. but there is no way Of separ-
atinE those OF one variety from those
addressed 10 Jones as the State ex-
smincr, except as may be done by The
assumption that those addressed TO
The Hon. G. c. Jones" reached the
State examiner, and those to MY Dear
Jones" and My Dear Mr.. Jones'
reached the private examiner