Los Angeles herald., 1909-09-16
BANKERS HOLD
JOINT SESSION
TRUST AND CLEARING HOUSE
SECTIONS MEET
FINANCIAL PROBLEMS OPENLY
ARE DISCUSSED
Appointment of Examiners Urged.
"Postmortem Administration of
Wealth" Discussed by Law
yer from New York
1Rv Assoclated Prels. ]

CHICAGO, Sept 1.-two important
divisions of the American Bankers
association-the trust company section
and the clearing house sectlon-met
today in place of a session of the main
convention.
open discussion of the details Of the
financial problems to be met in the
trust companies and clearing houses
occupied much of the time.
In the trust company section, Daniel
S. Reason of the New York bar was
scheduled to speak on the 'Postmor-
tenn Administration of Wealth., ana
in the clearing house section different
systems of clearing house work In va
rious states were considered.
At the clearing house section meet
ing the report of the secretary OF this
branch, which is carrying on a Vtgor-
GUS campaign advocating the appoint
ment of clearing house examiners, was
read.
"The advantages of this plan," the
report ran, "have been clearly set
forth in various ways. 1t is conceded
the adoption of the plan would put
banking on a higher plane and would
be of lasting benefit to the public.
Clearing house cities, in which ex-
aminers are now in vogue, are as fol-
lows:
Chicago, Philadelphia, ST. Louis,
San Francisco. Minneapolis, st. Paul,
Kansas City and st. Joseph, Mo.
This section has now under consid-
Grafton the working out of a plan or
uniform method of reporting weekly
exchanges of all exchange cities of the
country, and feels confident some sys-
tenn of accounting may be evolved
which will be generally put into force.
Against Note Kiters
.z4sz. o1,o hoe Oh rta5 m do
all in its power to suppress the busl-
ness known as note kiting' by giving
publicity to this business carried on
by so-called brokers'
Trenchant paragraphs from the re-
port of Edward Perrin of New YORK
held the attention of the trust section
I'm all the figures which have been
summarized" said Mr.. Perrin, there is
none more satisfactory, none moro
convincing of the fact that panic con-
ditions have been superseded by an
era of prosperity, than to know that
with only a slight increase in the num-
ber of trust companies the total de-
posits for 1909 have reached the i'm
portant total of $3,567 100000, an In
crease of $654, 1000, 900 for the year, or ~
per cent, and an increase Of $1,2o6, 100000
for the five years. which is an increase
of 81 per cent"
The address was replete with statis-
tics showing the condition of the va
rious trust companies represented at
the section meeting.
President jackson of the trust COM
pany section said in his annual ad-
dress that In the thirteen years Of the
sections existence the wisdom of its
existence had amply been justified.
He said 1t had a membership of
nearly 1000 companies, representing re-
sources of $4,000 600, 900.
eve must remember" he continued,
"that every company bearing the word
trust in its name is not admitted to
membership; a scrutiny as careful as
may be had in such a large organiZa-
ton Is devoted to the standing of the
applicant and while an earnest effort
Is being made to bring us legitimate
institutions, no welcome is extended to
companies transaeting a business for
eign to our field"
The committee on protective laws re-
ported to the trust company section
that its efforts to protect the word
trust" to provide for efficient state
supervision and to place in the cate
CORY of crime the circulation of false
reports of a banks condition have been
particularly effective.
Seventeen states. Colorado, Connec-
ticut, Indiana, Iowa, Kansas, Maine,
Massachusetts, Minnesota, Montana,
N6W 1OIk, NEW JeTSeYy OT6SOIlS ILIlOuo
Island, Texas, Washington, West Vir-
ginia and Wyoming, have already en-
acted suitable legislation. Florida also
protects, more or less adequately, the
word bank"
California Cited
The report adds that California,
Wisconsin, Nevada and Pennsylvania
have enacted laws based on recommen-
dations of the trust company section.
Banks of Arkansas, North Carolina
and North Dakota reported that spe-
cial legislation at this time was not
advisable.
THE trust company interests in
Georgia, Michigan, New Mexico and
South Dakota" adds the report, "as-
sure the committee that action will be
taken on our measures at the next
session of their respective legislatures.
"The territory alone, of all the list,
rejected the bill prepared by the COM
mittee-Arizona.
Twenty three of forty states, the
general assemblies of which were held
in 1909, provide protection of some de-
gree or other; four more are about to
enact protective legislation Of satis-
factory sort and thirteen are left for
tie incoming committee"
The National Association of Super
visors of State banks elected Clark
Williams of New York president; j. M.
Appel, Illinois, first vice president; j.
4 l.. Mahumdro, Washington, second
vice president; H. M. Zimmerman.
Michigan, third vice president; j. M.
Jones, South Dakota, chairman of ex-
ecutive committee, and Giles l.. Wilson,
South Carolina secretary-tr
The clearing house section elected Of
| ficers as follows:
/ President, Sol Wexler. New Orleans;
vice president, e. r, Fancher Cleve-
land; members of executive committee,
James l.. Donald, New York, and c.
X. Mcintosh San Francisco.
In his annual address to the clearing
house section President r. C. Nc
Dougal declared emphatically in favor
of a gold reserve in all banks.