New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-03
LETS IN TRUST COMPANIES
Clearing House Committee Re-
port To Be Voted On Tuesday.
SOME SHOW OF OPPOSITION
Ten Per Cent Deposit Provlso
May Act as Bar-S1, 00O,00O
CAPITAL Requisite.

The admission Of trust companies having
M, less than 81. 100000 capital TO fun mem
bership in the New York Clearing House
Association. provided they maintain cash
,e.erye Of % per cent Of their legal net de-
,osits Of which Is per cent is 10 be kept
=. ,b.,r own vaults and 10 per cent kept
IN 6enosit with Clearing House banks. was
,.,on,uended in a report submitted AT the
soa,ia1 meeting OF the association yester-
dav ~. the subcommittee on trust company
relations which was appointed by the
c,,oar;,q House committee several weeks
60 - consider the feasibility of admitting
rms. companies 10 membership
co,oral changes ana amendments to the
,,,sti,ution Of the Clearing House Associa-
ton so as TO make possible the admission
Of trust companies we're recommended D.!
,bs committee. The most important, Of
course. was that relating 10 tne reserve 'he
trust companies must MAINTAIN. Announcer
VAS that nc new member should ne aomit-
ted whose unimpaired capital was less than
8 600 GOO. and the section Of the constltu-
tor. reading that all members OF this as
ISOLATION shall keep and maintain IN their
o.,, vai,l,s a cash reserve Of . per cent Of
their net deposits" was amended by adding
the word bank after the word all"
Every trust company that becomes
.s,ober II the Clearing House Association
ciu he required TO furnish 10 the manager
e,r publication a weekly report of its aver
"a daily condition. also its actual condi-
ion AZ the close Of business on each Friday,
,b,ch report shall comprise the same arti-
c,as contained in the Clearing House state
msnt.
The subcommittee on Clearing House OK
ordinations also submitted a report AZ the
r,Aa-inz recommending that a system OF
examination Of the members Of the New
Work Clearing House should he instituted
;,nder the authority of the Clearing House
committee. which is composed Of William
> Nash chairman Francis l. Hine, Will
lam y Perkins. Frank A Vanderlip. James
o. Cannon and a. Barton Hepburn.
- Vote on Amendments Tuesday.
Neither report was acted on Yesterday.
Sc. under The rules OF the association. the
r.nbers have week in which to consider
changes in the constitution before voting
On hem. but another meeting was called
for next Tuesday. AZ which they Will be
voted on.
While - Is REGARDED as foregone con-
o'usion that tire recommendation 70 admit
IT. trust companies 10 membership in the
Clearing House Association will be adopted
e. Is thought almost equally certain that a
number Of the trust compa MES will con-
unle 70 oppose any plan Of admission
that requires them 70 maintain az large a
reserve az the banks.
As On officer Of one large trust company
put f.. You VIII not find many OF the trust
companies falling over one another 70 be-
come members OF the Clearing House un-
5a- the terms proposed"
Re added that there would have 20 he
some modification Of the reservA require
msnt before the trust companies would con-
sds- ". offer Why" he asked. should
- p4J II 10 per cent % our reserve with
Clearing House Institutions t. help them
cg''' He sad. however. that he believed
some compromise would he arrived a. that
Would overcome this difficult. and that the
;.Vst companies would then be glad 20
c---= n
n ifs report the sub-cor1nitteA on trust
ccapanv relations said that thirteen our az
seventeen prominent trust company presi-
--it'se expressed themselves IN favor of the
reserve reQIi-en,ents reconnncndAd by the
rorni-teA while ~ thA same time they did
TO- commit thenaE - any plan : can
v2ss II several of the leading trus, COM
rao.ss. however. BY = Tribune reporter YES.
arCav vas successful in finding only one
conpary that was N favor az entering the
Clearing House Association under the
tsEns proposed This "a. the GUaran'v
Trlsf companv which. being Morgan IN
s'i'u'ion, naturally would be IN favor ~ the
plan
The Bankers Trust Companv. another
compznv IN which the Morgan interests ara
Dominant l. also understood 20 be ready 70
lo.1 the Clearing House as soon as the
suggested amendments permitting The trust
c0aa7sr,es 70 become members ara adopted
Among The trust companies that are IN
ts-stood 70 Re strongiy opposed 70 beoon,
ing members under the conditions proposed
srs the United states. the Farmers Loan
snt Trust. The Central, the New York Life