Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-09-22
WORKING AT A LOSS
Grievances of National Bank
Examiners.
IRRlTATED AT CRITICISM
Fees Sometimes insufficient to Pay
Their Expenses.
BLAME THE REGULATIONS
Claim That Great Hardships Are
Suffered by Federal Officials En-
gagged in the Country.
BLAME THE REGULATIONS

There seems to be decided and general
feeling of irritation among national bank
examiners now attending the conference
here as a result of the severe criticisms
to which they were subjected yesterday
by Controller Murray Several exami-
ners with whom a Star reporter talked
today think that Mr.. Murray, instead of
reading the riot act to his subordinates,
should have placed at least a portion of
the blame on the existing laws and regu-
latons governing the inspection of banks.
|, To obtain a clear understanding of the
conditions to which Mr.. Murray referred
and which the examiners, in part. admit,
It is necessary to know that the examiners
receive compensation through the fee sys-
tenn and pay their own transportation and
expense. The fees themselves are based
on the capital stock of the banks ex-
amined and not on the volume of bust
ness-that is although two banks may
have identically the same capital stock.
the volume of business of one may be ten
times that of the other and one may be
examined in day while proper inspec-
ton of the other may take week yet
the fee to the examiner in both cases Is
the same.
Hardships on Examiners.
This, the examiners with whom Star
man talked today say, works a great
hardship on country bank examiners.
One of them cited the case OF bank with
a low capitalization but great volume of
business that required nearly week of
his time to properly inspect. He received
$25 for the job and had to pay his rail-
road fare to the town in which the bank
was located and back again to his sta
ton, his hotel bill and all other Incl
dentals. He lost money on the job. In
cidentally, he inquired why the bank did
not increase its capitalization to cores
pond with its volume of business. and
was told by its officials that they held
to the original figure In order to avoid the
payment of the increased taxes which
would result from raise in the capital1-
cation.
Now" said one Of the examiners, Il
do not wish to criticise my chief. Mr..
Murray, and l have no intention in that
direction. But l do think that it is ask
ing too much of man-of a mans pa
triotism. if you will-to expect him to do
his work with the greatest thorough
ness when thoroughness means that he
must pay out of his own pocket for the
privilege. The present system Is specially
hard on the country bank examiners.
They figure now that they must examine
one bank day in order to make their
positions sufficiently lucrative to keep
them in the service.
sometimes II is possible 10 60 tnlS
and sometimes it is not. for often we
strike a bank of exceedingly low capital
ization with volume of business as
great or greater than one of your most
active banks here in the city of Wash
ington.
When Fees Are Large.
''In the reserve cities the examination
fees are increased by n percentage all
lowance for the 'footings" on both sides
Of the ledger. and in the case of banks
with enormous capitalization. such as the
National City Bank of New York, the fee
for examination runs well w to $1,000
and the job requires the services of six
or seven men for about ten days. But
the country examiner gets the wrong
end of the deal all the time, and I be-
lieve there Is unanimity of sentiment to
the effect that Mr.. Murray might better
have devoted his remarks to the short
comings of the law rather than to the
shortcomings Of the examining force"
Examiners Resume Sessions.
The national bank examiners continued
their sessions today in the rooms of the
Washington Chapter of Bank Clerks on
F street. Controller Murray, who be-
lieves that much good ought to be ac-
complished by free interchange of opinion
among the examiners, submitted to the
examiners list of subjects to be taken
under Amusement.