New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-01
WILLIAMS EXPLAINS LAW
Controller Tells of Plans TO
License Private Bankers.
TO PROTECT IMMIGRANTS
nesion of Act to Prevent IRE
sponsible Men from Engas
inr in Business.

~. q,-State Controller CiarF
1.r;,1i.,og 4, Il statement to-day On plan
..,+ ,;s denartment purposes to 90 III N'
-. +be law passed by the last L@sio
- ,,ro,,;dinr for the licensing Oh pi /
waite bankers who do not oP' ri.
IN. provisions of the banking law
new law. which goes into erect ol' ~ -.
her / is designed to protect the
of immigrants, who, it has pee'i
have lost millions of dollars III
wears through the failure ana
of so-called private bankers 49,.
Controller Williams statement III fN
is as follows:
Although the statute embraces ali lt,oot
private bankers who through the ON conn.,
of a legitimate business are PEI Iaseas
q most helpful function to CERTAIN 10 ~,
of our population it was the eViueht -
tent of this legislation to prevent ~ h,,ei-
sibIe bankers from engaging III tIla nd
ness. through proper test of hnahclai CO.
moral responsibility by requiring 0I -,
ing evidence of such respohSlDlIi'J de-
exacting assurance in the form OF u ;,
post of cash OF marketable securltie9 III Z" ~
amount commensurate with the EoluiiiS vi
the business transacted by EACH <,-,
The statute undertakes 10 exempt run
the licensing provisions OF the dct ~
vate bankers and others not enSaSeu l"
the class OF business it is designed 10 sate
guard In each such case the puroeh y,
proving the right 10 exemption IL plaC.u
on the banker An individual or partner
ship receiving money on deposit 1oT SAFE
keeping or for transmission to Others vi
for any other purpose, when the aVetdse VI
each sum SO received during the preceding
year shall not be less than 500, may upon
proper proof receive exemption 1t also
exempts hotal keepers when receiving
money from guest for safekeeplng; aiso
express and telegraph companies RECEIVING
money for transmission. Exemption may
be had from all the provisions of the act
by filing bond with the Controller IN Ne"
York City in the sum of slG,VOO ano IN
Rochester and Buffalo in the sum OF SoO,oU,
the law applying only to cities of the first
class
With these exceptions, it prohibits an in
dividual or partnership from hereafter en-
gaging directly or indirectly in the business
of receiving deposits of money for safe
keeping or for the purpose of transmission
to another, or for any other purpose, with
out having first obtained q license from the
Controller
Provisions of the Law.
The applicant must have been resident
of the United States for five years and
must make a written statement under oath
showing his assets and liabilities and Civ
ing such other information as the Con-
trnler may require. The names of appli-
cants are required to he posted on the OFF,
ciaI bulletin in the Controllers office for
period of two weeks prior to the Issuing
OF the license. SO as to give ample oppor-
tunity to the public to object thereto. The
applicant IS required to pay license fee
OF $50 and TO deposit with the Controller
$4,000 in money or securities, which shall
consist of bonds of the United States, Of
this state. or any municipality thereof, or
other bonds approved by the Controller. A
surety bond for the safekeeping or trans
mission of moneys is also required to be
executed to the people of the State of New
a sum fixed by the Controller, which shall
not he more than $50 zoe nor less than
$4,000. The money and securities deposit
ed with the Controller and such funds as
result from the collection Of surety bonds
in each case constitute a trust fund for
the benefit Of depoSitors and those deliver
titled to an absolute preference over all
general creditors. These funds in the
event Of insolvency or bankruptcy, are to
be disposed o. by the Controller on the or
der OF the court.
The law provides for the revocation OF
licenses for cause shown
Licensees are required to keep books Of
account showing full and complete records
Of all business transactions. and on the call
Of the Controller shall, four times a year.
file in his office a written statement under
oath as TO assets and liabilities, which re-
ports are open to the inspection of the pub
lie. By this provision il is designed to give
the public access u all records regarding
the business OF each icensFe, which are
filed with the Controller under the opera
ton of this law. Any person conducting
such q business without a license or using
the work banking" or banker or any
equivalent term in any language on any
sign, letUerhead. advertisement or pubiica-
ton shall be guilty of p miSdemeanor
Il is important that the public should ap-
preCiate the nature OF the relation of the
state TO the private banker under the pro
visions of this act As previously stated, the
atute seeks to limit the responsibility of
he state solely to Issuance of a license IN
Ter proper restrictions. To that end the
aw specifically states that nothing therein
shall be construed 70 require the
Controller to make any inquiry or examt-
IA ton to the responsibility or solvenCy
IF any applicant for a license or any hcen-
see hereunder and also makes it a misde-
nea1Cr for any person OF partnership TO
advertise in anV manner what SoeVer. either
orally or in writing. any statement intend
ID 10 convey. or actually conveying, the
my way under the supervision of the state
II of any officer thereof. that the state
n anv officer thereof has passed in anv way
whatsoever UpOn the responsibility. solVencY
IT qualifications of said liceusee to engage
n such business. or that this state any
officer thereof has examined anv ac~0''ntS
II said liCenSee or has in any way certified
hat such HcenSee is liz any way fit person
O carry such business.
The law further provides that any person
Who in an application for a license or in
ocular shall he guilty of perjury, and that
hose not reporting when required to do so
hall forfeit to the people of the state the
um of 500 fer each day such report Is de
aged or withheld,