New-York tribune., 1908-03-02
NEEDED RECEfTERSHIP REFORMS.

The totally unexpected appointment OF recelV-
ers for the Oriental and the Mechanics ana
Traders banks emphasizes the need for reform
in the methods OF administering the affairs OF
suspended banks. The pending bill at Albany
nrovides that the State Superintendent of Banks
shall appoint one of his deputies TO act in every
such case. Just as in the national banking sys-
tefn the Controller Of the Currency names one
of his subordnates to take charge when 4 bank
closes It's doors. Under this plan salarled
public officer would wind up the institution
affairs or preside over its resumption as part
Of his official duties and at small cost, and no
political vultures would hover around banks
in distress and pounce upon them for the sake
of the fees. Attorney General Jackson does not
approye this measure which increases the SUI
perintendent-S powers. already IN his opinion TOO
great Indeed he regards the plan by which
the Duhlic's interest in the administration OF an
embarrassed institution would be intrusted to a
salaried public officer instead Of an extravagant-
ly feed politician as almost infamous IN IT'S
nature" Still, greatly as Mr.. jackson fears
the danger of concentrating powers now vested
partly in the Attorney General and partly III
the Banking Department, even he must realize
! that the present system is costly and liable 10
abuse.
ReceivershpS are nOtoriouSly the richest OIL
pickings so that political favorites make pro-
fession of safeguarding the interests of creditors
of embarrassed institutions as receivers and as
counsel to receivers. Mr. Jackson must know
this and he must know that the maintenance of
the system under which large share Of the
assets of failed concerns is regarded as the
legitimate spoil Of politicians is regarded by
many persons, especially creditors whose inter-
ests have been protected with such prodigious
care as almost infamous in its nature The
state is not always blessed with an Attorney
General of so rigid and unbending a character
as Mr. Jackson, one who is so Indifferent as 10
what the newspapers say about him and so IN
affected hy considerations concerning subSe-
Quent political career, and who is ambitious Of
nothing but the approval of his own con-
science
\ weak Attorney General might easily find
difficulty in resisting the opportunities of those
who hunger for receiverShips and who look with
greedy eyes upon important financial corpora
tons in trouble but having every prospect Of
adjusting their affairs either for resumption or
Ia the satisfaction Of all creditors without as
Sistance from the financial undertaken. An At
Iorney General who has the bestowal OF such
opportunities of immense fees must inevitably
be the subject of great pressure If he IS ambI-
tious for political promotion he may readily he
tempted 10 make his way easy by prOpitlating
the friends of the bosses with these golden per
guisiteS If he is associated with q faction,
! undermine his enemies than by bestOwing upon
the former these opportunities for easy and
honest enrichment? II he has political debts TO
pay. will not the ordinary Attorney General
settle them handsomely in Il strictly legal way
. out OF the pockets OF creditors: II he has per
Sonal or political friends or dependents whose
future gives him concern, viii he not put them
beyond the reach of anxiety for the rest of their
days bv receiyership?
If such an Attorney General as we are I'M
aGining saw bank under temporary suspen-
sion. but with bright prospects Of resumption n
the immediate future, he might be tempted 70
interfere with the arrangements being perfected
by the banks officers and stockholders and throw
IL into the hands of some political or personal
friend. some who had been or could be
useful 10 him. 50 that the friend might get his
fees out of the operation. Patronage in the
Attorney Generals office is scarce, and some Oc-
cupants OF it might insist upon their strictly
legal right to make every corporation in difi-
culties, however temporary, pay its toll 10
their political clients. Even If an institution so
situated had bright prospects of adjusting its
affairs. they might insist upon intervening for
{ the sake of that toll. In place of n system
fraught with these dangers the legislation which
Mr.. Jackson thinks infamous would substitute
an administration OF suspended banks without
rich possibilities for politicians. The chance Of
profit under it would be slight that there
would be little risk Of its abuse.