The San Francisco call., 1908-09-16
SUPERINTENDENT OF
BANKS is FAVORED
Prominent FinancierS Believe in
the One Man Authority
With Great Powers
Recommendations Will Be Made
to Modify Statute or Enact
New Law

Judging by the sentiments expressed
at the conclusion of yesterdays con-
ferenceton the proposed banking law
at which were present bankers, legis-
lators and bank commissioners, recon-
mendstions will be made to the next
legislature to either greatly modify the
present statute or enact an entirely
new law 1t seems certain that the
plan Of creating the Office of superin-
tendent Of banks and abolishing the
present board of bank commissioners
will be recommended.
At yesterdays session, held in the
harbor commissions room in the ferry
building, were present the members of
the legislative committee, all four of
the members of the state board of
bank commissioners and a number of
officers of financial institutions
throughout California who were men,
bers Of the committee which drafted
the proposed new law. The commits
sioners We're present on the invitation
OF State Senator Frank Leavitt, who
acted as Chairman
BELIEVES PLAN ECONOMICAL
The entire morning session was given
to discussion Of that section of the
proposed law which provides for the
creation Of the Office of superintendent
OF banks TO take the place of the pres
pointed out that not only would such
an arrangement be economical as COM
pared with the present system, but
would be much more effective, as 1t
would fix responsibility on one person,
while allowing him adequate power to
enforce the law in an efficient manner.
At the afternoon session the proposed
law drafted by the bankers committee
was taken section by section and dis
cussed in detail.
The chief aim of the bankers COM
mittee is 10 segregate the various de-
paTtments of banking, so that each de-
partment is responsible for its own
liabilities. and the faults of one are
not placed on another. II is the inten-
ton where an institution has com
mercial department, a savings bank de-
partment and a trust department. to
have the assets, investments and books
of each kept separate. so that should
the savings department fail the COM
mercial and trust departments would
not have 10 bear any % the losses, and
likewise if either Of the other depart
ments should'fail
Special attention has been paid to
the question of savings banks with the
intention Of safeguarding the patrons
Of these institutions.
EXAMINE NATIONAL BANKS
A suggestion which also met favor
was that all national banks in the
state desiring to act as depositaries for
savings banks must submit to examina-
tion by the state superintendent Of
banks.
The strictest provisions are made
concerning the making Of reports, to
the superintendent regarding the con-
dition of the various banking institu-
tions and penalties provided for the
o.
ter which came in for extended dis
cussion was that OF declaring dividends
on basis Of profits actually on hand.
1t is proposed to provide heavy pen
atty for using its accrued, but uncol-
lected, interest for this purpose The
next meeting will be held in this city
on October y.
Following are expressions of differ
ent officials present at the conference
regarding the new law:
Commissioner H. +. Shearer-"I think The
placing Of in absolute control is much
superior TO the present system. The proposed
law drafted by the bankers committee meets
2 great many Of the needed reforms in the
present statute.
Commissioner c H. Garroute-'T favor the
section OF the new law providing for the crea-
tion OF the office OF superintendent OF banks.
but believe that the present statute. win that
exception, is superior 10 the proposed law.
would favor amending the present banking law
in preference TO enacting the new one"
Senator Leavitt-'.I an in favor Of creating
the office Of superintendent of banks but can
not express opinion in regard to the rest
Of the proposed law. as I have not had sufh.
cient time to thoroughly consider its provisions
Senator ]. B. Curfin-''The plan OF having a
superintendent in absolute control is far SUI
lDerior 10 the present system. In regard 10 the
rems inder Of the law ! not express an
opinion at this time
Commissioners Nawter and Watson said they
were not ready 70 express opinion they
had not had sufficient time TO give the mat
Ter thorough consideration.
Judge g. A. Sturteyant OF the superior court
is preparing 2 new banking law at the request
that this draft will be ready for the printer
TODAY II viii be taken up for discussion wher
the committee reconvenes on October r.