The Washington herald., 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-wiII Organize Un-
der District Laws at Meeting of
Directors on June 81.

A large enterprise, with q number of
prominent Washington business men be-
hind it, was announced yesterday by
Edward S. Mumford. of this city. Mr..
Mumford is attending to the renting Of
temporary offices and the purchase Of a
permanent site for the erection OF the
business Offices Of the National Bank
Auditing Company. which is to have its
| headquarters In Washington.
This company, it is claimed, win have
an influence extending over the whole of
the United States. and viii do away with
that most feared forerunner Of financial
panics-the bank failure. The company
does not merely exist on paper; It is an
established fact. In the West and Mid
die West about 800 bankers have been
| interviewed and have accepted the prop
ositions OF the company, and in the East
and South are two combinations-one OF
loo and the other OF 100 bankers. who
have sign!hed 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 tho corporation
I will h. E1xuard NasrTzfrra aW-nrazideVf
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 viii eventu-
| ally be in a large Office building which
the company is endeavoring to purchase
FOR this purpose. If Il is found impossi-
BILE to effect the purchase Of this build
I ing, the company viii 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 100000 In
the rear future It IS expected the cap
/ italization VIII be increased 10 100000,
| with an equal amount Of surplus.
Will Organize June 81.
The first corporation meeting will be
/ held June z. and the Details of the bus
mess will be completed then. It IS also
| likely that the Office OF the treasurer
| secretary, which remains open at present
will be filed then. In all probability. Il
viii be given 10 another prominent bank
er OF Washington. thus giving this city
large majority IN the board OF officers.
The object OF the National Bank Aud
| iting Company may be stated in a sinsi.
sentence taken from their prospectus
I'VE shall allow none of our banks q
| fail" While at first sight this seems tc
/ be rather Utopian, those in charge OF
the business of the company claim thai
| 1t is literally true--and that no bank thai
takes advantages of the services Of this
organization will fail.
Approved by Attorney General.
In an opinion by Attorney Genera
wickershsm he approved Of the insur-
ance scheme advocated by this company
and authorized that II be taken up by
the Treasury Department In regard Il
the legality OF the company, and the cues
ton whether # Is In accordance with the
laws for a national bank TO insure itself
| IN this company, Mr.. W1ckersham de
livered an opinion on May 7, 1909. stating
/ that "a national bank can. OF course
insure its own property against loss Oh
] destruction; II may also insure itsel
against loss OF property through theft oil
| dishonesty"
The audit company VIII have complete
| information of the condition Of its client:
and will be in close communication with
them, besides having on hand large sums
Of money IN cash and securities which
VIII be quickly available. In case o.
any sudden run. caused by false reports
defalcation, or robbery. or for any 0,
the reasons which sometimes make seri
Gus trouble for banks. the audit company
will at once come TO the assistance OF 1t:
clients and protect them to any necessary
/ extent