New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-15
TO STOP ENTGRTl0N
rhfreg II ants Personal Loan
associations Regulated.

,..sen- ~ the state Banking Department
mn, ranart submitted 10 the Leg
Is,sttre tonight. covering savings banks
go 0or1ranies. safe deposit companies
- -7,teceIlaneoeus corporations under the
,..-s.sicrf,n ~ the State Banking Depart
-, The Superintendent is preparing a
sr.fr Of a proposed amendment TO the
bsrkiug law which he viii submit TO the
flrfslstu1e at an early date. The report
says:
The purpose avowod IN the statute per
rlfifuc f.4e organization OF personal i oo :
associations. VIZ - aid persons dee1 ~
"a bs j., need ot rccuniarT assistance la9
b.~Slv been realized. The business Is NO
nj q r,artlc .lariy attractive charaC..e5I' b.,
expensive to conduit ana = st'e ~ more
excertiCnal risks. With proDaply ho' 80
han TWO or three exceptions, ING e 49,:
ratiols eueaEed in II are utter! "a 10 C ,..,
hi anv benevolent latent or enecl 81 troTs
~ ITEM base their charges TO boII Q" ~ >
TOT ugcn legal restrictions, pun LII -, =
,-s-riI.le az what the traffic VIII psdt,
Ehicff means the largest an38dit ~ ,,1,o1 ~, -
necessity of an applicant WIZ g.iarNo - i'r.ii
10 se-ee to nav Besides its reg uidA eAdllI-
irsrso.,e OF these associations ule uepdIt-
rIerf.yflgs recently conducted sPeclel IN
t-re-5~-f.0r Of their methods, pv winch
,,,t7 sr,7see were disclosed Similar IN
tr-+t-stigrs hv Independent pnllautnroplc
bodies. not only ~ this STATE pul a4So IN
Ohio PENNSYLVANIA ana Wary Idilq, ma Z
sbo-,.r iike evils and have emphasized the
1871 1890 81 ee;.+5,.,,it, Of curing them through
ioeielaftor Tvasions OF statutes in these
rsees ~ ingenious practices which make
ro9--cfion Doubtful appear TO be easy and
Ia he Of common occurrence
:, is estimated that ia New York City
sIoue there are about forty organlzalio nS
,r5 uu6er the supervision Of the Banking
rsnsrtmeut which are eDgaEed n this kind
ri business. Their actual charges for loans
srorese 100 Per cent and upward. Such
rorno-ations are, of course, usurious, sub
ierfirg tie offender upon conviction 10 a
me ara imprisonment, sEd also 10 the loss
~ both principal and interest NeVerthe-
issee COMPLAINTS and prosecutions are eX-
ire--ely rare. and. ~ The opinion Of attuT-
news who have given consideration 10 the
law ali he practiees q these or9aniza-
tons. conviction tor ofTences would be
matter Of grave difficulty and doubt
To personal loan associations under the
tsperIis IoD Of the Banking Department is
rs-mittaI a uniform charge Of per cent
month i1 addition 10 certain specined
reasonable fees Ter making and -ililnS
papers and for examining the security OF
te-e5 L IS doubtless true That the tusi-
tess :Frsnno- h. conducted with profit a
ierer rates than these unless the volume
n loans he large II e1eCtual legislation
rsr be devised ard enforced 10 prevent the
srtortior Of higher charges, efforts ought
RI 20 le spared To secure the enactment
n sprror--ate lars. TO that end the Su-
re-srfen6enI proposes - draft an amend
t-er,- 70 Article 10 Of the banking law,
erfr1 VIII be submitted 10 your honorable
to5v II a. early date for your Ccnsidera-
ton and action.
Superintendent Cheney renews the rec
r--re16stisn made I'm his annual report in
-srusrv last. that every hank banking as
so,iat55r and individual banker and trust
rcrrsuy ACCEPTING deposits Of the charac-
fe- IN question he required by statute 10
rre7+s and maintain q special department
for such accounts. and that al deposits
received in such department be carried
sersrstely from the other deposits OF the
institution and invested only IN such Sc
r.rfties as savings banks of this state are
permitted by Law 10 buy and hold. \ bin
adding provisions u the banking law TO
this effect is Al present in course Of prep
srstiou. and Superintendent Cheney strong
& u-ges IFS enactment.
After giving the reports II trust ccmps-
mrs which reported their condition 10 him
Oh January ] TINS year, superintendent
Clancy says
An examination Of the several items dis
ROSES q retirement for the wear in almost
81 particulars. It shows resources at the
CHEST point ever reported. cash reserve
NdT largely increased and considerably III
excess Of the statutory requirements,
gar o+ more than S=-0oe,eeo in surplus.
f0rwi' standing dividends were larger than
% 1905 hy uezrIE- $2.15Q, zoe, and gross earn
!-gs decreased hy more than Sio.oo0,on0
ana r-- earnings h-- nearly S4.0Qo.000.
These -cnorrs also show thai losses by de-
PROBATION fell. of $2,ee",eoo and that the
percentage of deposits en- which interest Is
PAD SO as fTaCUOnallT diminished
Cormenting on the savings banks Of the
Etare, The Superintendent says.
Tto greatest growth ever made by the
t-rirez banks Of his state IN any one
yer was III ao5. when the total resources
Increased Ss5.I55.11s and the total due
cspositors Increased IN almost equal