The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-08-18
Wanted to Find Out if They Are
Really Directing.
FEW OF THEM ACTIVE
Only % Per Cent Take Interest
in Banking Affairs.
Finds Large Number Have Never
Even Read the Law.

time ago Comptroller of the Currency
Murray startled the $4,000 directors
in the United States national banks by
asking them what they knew about
the loans and discounts their cashiers
were making, the signatures and col
lateral OF borrowers. and the general
habits of the employees of their banks.
Mr.. Murray wanted to find out what
bank directors were really directing.
1t was the first time questions of this
character had ever been asked, and
the bank directors were puzzled to
know what it all meant.
Some of them were inclined to be
tions as '-impudent." What were they
supposed to know about such prac-
teal questions as the kinds of loans
that were being made and the habits
of the men who were handling the
cash of depositors? Others, however,
took the pointed questions in the prop
er spirit. Replies to the questions
there were twenty-nine of them
have been received by the comptrol-
Ter. classified and tabu1ated. The re-
suits are interesting, and in many
cases surprising.
There are 1000 national banks, with
about $4,000 directors. Sixty-two per
cent of these officials were actually
present at the examination at which
the bank examiners propounded the
list OF twenty-nine questions.
1t turns out from the classification
of the replies that only about % per
cent of the national bank directors
are familiar with the conditions of
their banks in all details Four per.
cent practically admitted that they
knew nothing of the state of the
banks to which they belonged
Loans were approved by the direc-
tors in only about 81 per cent of all
cases. The officials had full control
and used their own Judgment as to
loans in nearly one-half all the in
situations. Eighty per cent of the
directors could not certify to the gen.
uineness of signatures on notes dis
counted by the banks. Sixty per cent
tacitly allowed officers to permit over
drafts
Great laxness evidently is the rule
with many banks in the examination
of loans and collaterals by directors.
In 500 cases this process was gone
through with only once year. In
condition of the reserve regularly in
quired into by the directors. The
cash, however. was counted period
ically by committee of directors in
a substantial majority of the institu-
tionc.
Some light was turned on the ques-
ton why banks violated the law by the
replies received by the comptroller.
Hardly more than one-half of the to-
tai directors have read the national
bank act. Its requirements imposing
obligations upon directors have not
even been read by more than so per
cent. Many of the directors who adj
mitted they did not know what the
natie nal bank act looked like said they
had read letters of criticism sent out
by the comptroller and had taken steps
to correct the state of affairs COM
planned Of
Comptroller Murray is of the opin-
ion that the shake-uD administered to
bank directors was needed. He finds
an MI
'impudent" questions in the amazing
ignorance on the part of many bank
directors concerning the vital features
of their work as brought out by the
Iieves that many directors have failed
to realize that they are responsible for
the proper protection of the money of
the depoSitors.
After sorting out the replies of the
directors the comptroller has made a
list of good banks and a list of mis- |
managed" banks. All those in the lat
ter classical ton are now subject to
four examinations year. at which the
attendance of all directors is compul- |
sorry. The good" banks are examined
soon as conditions in a bad bank
have been corrected to satisfy the
comptroller the bank is taken from
this list and put with the good
banks.
Nine. Paderewiski has carried off all |
the first prizes in the Russian poultry
shows with her Kansas exhibits and it |
is conceded by the best judges that
she owns the finest strains of the crys-
tai white OrpingtonS in Europe. She |
bought the first of her Orpfngtons in
Kansas about two years ago, paying
Her husband protested against the
price. but she had her woman's way,
and now finds she made a wise in
vestment- She took the pick of the
several settings of eggs.
Two men care for the Orpingtons on
the Paderewski estate in Poland, and
when Nine. Paderewski is not on tour-
with her husband she directs them in
the work. She intends to exhibit in
Berlin, Paris and London, and already
has sold enough birds for breeding pur-
poses to show a profit on the whole |
experiment.
The army is to be represented at the
National Horse Show, which is to be |
held in the Madison Square Garden
New York. in November. Department |
commanders will be informed by the |
var department that they may send in |
the names Of the officers who wish to |
take part in the riding and it is ex- |
pected that there will be a representa- |
ton from the mounted service school
at Fort Riley Foreign governments /
will also be invited, through the state
department, to send representatives.
According to official information re-
ceived in this city. there were fourteen |
Kansans successful in drawing farms !
in the Occur d'AIene Indian reserva a |
ton last week The list, according to |
the number of allotment drawn. fol- |
lows:
46-Eliza B. Linds, of Sterling
73-Hur1ey J. Thomas, of Fredonia.
11EStanley Farmer, of Fall River.
115-William Al. Hasty. of Easton.
117-Frank M. Bloomhuff, of EN- |
poria-