New-York tribune., 1909-07-17
COGSWELL, PRESIDENT
CONSERV1TTVE BANKERS
ELECT HIN.
CLARK H7dIiams, Superintendent of
Banks, Again Urges That In
8 terest Rate Be Kept Dozen.
rBy Telegraph TO The Tribune ]

tional Bank. Of Albany, was elected president Of
the New York State Bankers Association to-
cay. receiving 50 votes 20 IS cast for T. f Ly
ford. Of waverly.
Unusual interest attached TO this contest as
the division in the nominating committee, noted
in these dispatches yesterday. was due not to
any unfriendly feeling toward Mr.. Lyford per-
sonally on the part Of the three members Of the
committee who submitted the minority report
parning Mr. Cogswell. but solely 10 the fact that
he had at one time advocated the guaranteeing
Of bank deposits
Both the report placing Mr.. Lyford in nomi-
nation which was signed by five Of the eight
members Of the committee. and the report nam
ing Mr Cogswell were submitted 10 the Conven-
tion by Charles Elliot Warren. of New York. the
chairman Of the minority report.
The signers. ex- President Elliot c. MCDougaI
of Group !; Mr.. Curley Of Group : and Mr.
Warren. Of Group 8 said that, although they
recognized Mr. Lyford's many valuable services
70 the association, they would be disoyal TO the
bankers Of their respective groups if they did
not voice the sentiments Of those bankers. which
were absolute and positive in condemnation OF
any plan having in any way a semblance OF ap-
provaI by this association OF the scheme Of
guaranteeing bank deposits" adding We be-
lieve that the election OF Mr Lyford, taking INTO
consideration his utterances on this subject
would be construed by the country at large as
a quasi approval by this association of banking
principles that are fundamentally wrong
When Mr. Warren had taken his seat one Of
Che supporters of Mr.. I.yford the nominating
committee. Afr Carpenter. arose TO question
Of privilege and demanded that the records
should show whether not the names Of MessrS-
Warren. AIcDougaI and Curley were signed 10
the ma lority report Mr.. Warren, he declared
had told him that they would be so signed if
and brpa C6
had been committed Mr. McDougal said that
NJ Carrenter's recollection Of the proceedings
in committee was in error
Hiram r smith said that the controversy was
one which should he settled by the committee
itself and his objection 10 further consideration
OF il by the convention was sustained.
MUCH ELECTIoNEERING
D N. Pratt. Of EInlira made an unavailing
plea for Nj Lyfords election saying that as II
was the custom for the vice president TO be ad-
xanced 10 the presidency. Mr. Lyford's nomina-
ton for the higher office had really been made a
year ago and that the nominating committee
Of last year upon the selection of which he was
elected vioe-president. should have known that
M Iyford had two years ago written an article
in favor Of guaranteeing deposits.
The banoting was then begun. with the re-
suit already noted Of Mr.. Cogswells election,
which. on motion Of Nr. Lyford, was made
unanimous
Both reports from the nominating committee
had named Bradford Rhodes. OF Mamaroneck,
for vioe-president. William j Henry. Of New
York. for secretary and J. A Kloepfer of Ham
burg. chairman Of Group !. for treasurer.
Following the election Of president, Luther
" Mott. Of Oswego. who was Superintendent
q Banks for a brief period immediately pre-
ce6inE the panic Of 1897. and Samuel r. Smith.
of Jamaica. were placed in nomination for the
,-ice-nresidency in competition with Mr.. Rhodes
and the result Of the ballot Mr. Mott 81
votes; MI Rhodes and Mr.. Smith, % each ON
motion Of Mr Rhodes Mr.. Motifs election was
made unanimous. M Henry and Mr. hloepfer
had no opposition. Before the election was taken
NJ, the convention had listened with enjoyment
and approval TO two addresses. one by Nllhan
N Kingsley, vice-president Of the United states
Trust Cornpany New York. and the other by
Clark Williams State Superintendent OF Banks
EXCESSIVE INTEREST AGAIN.
NJ. Williams devoted the larger part Of his ad-
dress 10 discussion Of the evils Of excessive in
terest on deposits. subject that has been the
,,,an,e Of many OF his public utterances within
-, las, fa,y months No question, he said, so
vitality affected sound banking AT present as this
of tbe interest rate not only in this state but
throughout the country as well
While there was ample evidence Of change
of rotic, in that regard, il was coming too slow
IL in certain quarters. and from expressions OF
,v,,e-,,ortl7v oriniou the speaker feared that in
Some cases it might not CONG At all. The prac-
,ioa he cont ir7lled was due in great measure tc
sr,rrorer competition and desire for large hg-
,,ree in disregard Of conservative, sound paying
banking.
Honesty. he declared, permitted only one
answer 10 the question whether or not it was
,,,esfbla for a banking institution doing con
ser,-s,i,e loan and investment business TO earn
q rasnectable dividend. set aside reasonanie
,r7,l,ls nay expenses maintain the legal reserve
and IN addition pay interest AZ per cent on de-
posits
The State Banking Department, MI. W Nli-idihs
went on. DID not presume TO dictate polcI ID
the conduct Of the banking institutions under
SIS super-ision. but when a policy becomes 50
extended and Of such a character as 10 leopard d
tze the soundness of some OF our banks it l. OBJ
xionslv our duty to make every effort for It's
correction"
Proceeding. Mr.. Williams said that with due
regard 10 soundness and surplus most Of the
savings banks should pay not over "a. per cent,
although some might properly pay and few
AZ rer cent. The greatest offenders were among
tla national and state banks Of deposit and dis
count. which paid these rates on daily OF
,,onthly balances - open account The trust
,or,nanies were offenders equally with the
banks if these rates were paid ON such ac-
counts. The device commonly employed 20 an
rounce the character Of this business Was The
Interest department
There might be justification for the existence
Of such interest departments in institutions
serving communities without savings bank ia
fee raEyzr y