The Montgomery advertiser., 1908-01-05
DEAD LETTER LAWS
BANKING REGULATIONS OF COUN-
 TRY ARE DIsREGARDED.
Interesting Testimony Of Former Dep- uty Comptroller of the Currency Coffin fin fhc Walsh Trial.
 W0rdy Testimony.

Chicago, Jan. 4.-That certain sec tions of the National Banking laws are dead letters. so far as banking practice is concerned and that these violations meet with only formal crit icism from the comptroller of the cur renok was the testimony today of George M. Coffin, of New York, for mer deputy comptroller oftthe curren- cy, in the trial of John R. Walsh on charges of misappiying the funds of the defunct Chicago National Bank. MT. Cofflh was for eight years vice pres ident of the Phoenix National Bank of New York, and until recently president of the Beaver National Bank of New York. Mr. Coffin said that he had been connected with the office of the comp troller of the currency from 1888 to 1889. and that he still held 8 com mission as bank examiner.
 Coffin was asked by Attorney John S. Miller for the defense if 1t was a prevailing practice of national banks to make accommodation and memor- andum notes and loans in excess of the limit provided for by the banking laws. Before the witness could answer an objection by attorneys for the govern ment brought on a long argument dur ing which Judge Anderson declared that the question was neither material competent nor revelant so far as Walsh's intent in similar transactions was concerned, but he allowed 1t to be given in order that the defense might lay a foundation for an attempt to prove that such practices are gen. eral all over the country.
 The question was then repeated and Mir. Coffin answered in the affirmative Then the examination broadened.
 aNVaa sIIch caaAS a fhta 0na In which Mir. Walsh Is involved. frequently re- ported to the comptroller by the bank examinersT
 Yes, sir"
 Were they criticized by the comp troller?"
 NO. there was no special objec- tion."
 What took place in the comptrol- ier's officer
 'rhe reports were gone over and printed letters calling attention of the banks statutes were sent to the banks"
 Did the practice of making exces- sive loans prevail?"
 Yes. There were always about one- third of the banks making such loans. This prevailed in reserve districts and in about thirty cities of the country, including New York and Chicago"
 Mir. Coffin then testified that the printed l6IL6rS sent 10 tne DaukS were perfunctory, signed with autograph stamps and containing no directions re- gardiug the reduction of excessive loans.
 These letters were not followed up and replies even were not necessary. The witness asserted that all loans from banks by their officers executive or within the limit provided by law are generally considered matters of Judgment. Memorandum notes are customary. he asserted. in all banks with which he is familiar. E Under cross-examination by Fletcher Dobyns, Assistant District Attorney, Mir Coffin admitted that he had never seen any memorandum notes like those in the Chicago National Bank to which officers of the bank signed another per sons name without authority from or knowledge of that person. Later Mir, Dobyns asked:
 Was there any limit on excessive loans that depended on the amount of the banks capital?"
 That depended more on the amount of the deposits than the capital"
 When asked for a case where exces- sive loans had been made by bank officer to enterprises in which he was interested. the witness cited the Ches- ter Street bank of Philadelphia and then asserted that this institution has failed and Is now in the hands of a receiver.