The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-06-17
WILL INSURE BANKS
New Enterprise Is Planned
for Washington.
IT WILL SECURE DEPOSITS
Corporation with Large Capital
Looking for offices in which to
start Business-WilI Organize I'm
der District Laws at Meeting of
Directors on June ~.

A large enterprise, with a number 0
prominent Washington business men be
hind il. was announced yesterday b,
Edward S. Mumford, OF this city. Mr.
Mumford is attending 10 the renting O
temporary Offices and the purchase Of
permanent site for the erection OF tn
business Offices Of the National Banl
Auditing Company, which is to have II.
headquarters in Washington.
This company. it is claimed, viii hav,
an influence extending over the whole o.
the United States. and will do away with
that most feared forerunner of fnancia.
panics-the bank failure. The company
does not merely exist on paper; II is an
established fact. In the West and Mid
die West about 900 bankers have been
interviewed and have accepted the prop
ositions Of the company. and in the East
and South are two combinations-one OF
80 and the other of 100 bankers who
have signlfed their intention of using the
services Of the National Bank Auditing
Company as soon as 1t commences active
work
Interest in the Project.
The interest that centers in the COM
pany in Washington is principally be-
cause Of the number Of prominent local
men who are intimately interested IN the
work, and because the permanent head
quarters of the company will be here
For president of the National Bank Au-
diting Company the directors have chosen
William Barrett Ridgely, formerly
Comptroller OF the Currency.
The vice president Of the corporation
will be Edward S. Mumford. ex-president
OF the National City Bank. The COM
pany is incorporated under the laws OF
the District, and is subject 10 the super
vision of the Comptroller OF the Cur
rency. The business Offices will eventu-
ally be in large ONCE building which
the company Is endeavoring to purchase
for this purpose. If it is found impossi-
bic TO effect the purchase Of this build
ing, the company will build one for it
self, in the meantime renting offices in
one OF the Office buildings.
The Organization is capitalized at
100000 and a surplus OF $500. 900. In
the near future it is expected the cap
viii be increased TO 100000,
VITA an equal amount OF surplus
VIII Organize june -.
The first corporation meeting viii be
held June q. and the details OF the bus
mess Will be completed then. It IS also
likely that the Office OF the treasurer
which remains open at present.
Will be filled then. In all probability it
viii be given TO another prominent bank
er OF Washington. thus giving this city
! large majority in the board OF officers.
The object OF the National Bank Aud
ting Company may be stated fl a single
taken from their prospectus
We shall allow none OF our banks TO
fail While at first sight this seems 70
be rather Utopian. those IN charge OF
he business OF the company claim that
{ is literally tTue-and that no bank that
axes advantages of the services OF this
VIII fail.
Approved by Attorney General.
In an opinion by Attorney General
he approved OF the insur-
.nce scheme advocated by this company
md authorized that It be taken up b. |
he Treasury Department IL regard to |
he legality Of the company, and the Dues |
ion whether Il Is In accordance with the |
avs for a national bank TO insure itself |
n this company, Mr.. Wickersham de- /
ivered an opinion on Nay Z. 1909 stating |
nat "A national bank can, OF course. /
insure its own property against loss or /
Instruction. II may also insure itself /
gainst loss Of property through theft or /
The audit company viii have complete
lformation Of the condition Of its clients
nd viii be in close communication with
hem. besides having on hand large sums
money in cash and securities which
iii be quickly available. In case OF
ny sudden run. caused by false reports.
eefalcation, or robbery. or for any of
he reasons which sometimes make seri-
us trouble for banks. the audit company
Ill at once come 10 the assistance OF its
tents and protect them TO any necessary
Utent