The evening world., 1911-02-22
new BANKING BILLS
CHECK FRAUDS AND
PUNISH OFFICIALS
Recent CrookednesS in This
City Prompt Legislative
! Action at Albany.
LAWS ARE AMENDED.
Officers Hedged About With
Rules that Halt False Loans
and Queer DoingS.
LAWS ARE

ALBANY, Feb. 22~.-Several bills maxi
ing important amendments to the bank
ting law and carrying out the recon-
m~endations Of the state Banking De-
partment with u view to strengthening
the law as n result OF the recent dis
closures in New York were introduced
to-day by Senator Cronln n Assem-
blyman NJ. A. O'Neil, Chairman OF the
Committee on Banks.
, One bill amends the law relative TO
reports. According to n memorandum
issued by tie Banking Department 1t
makes no material change in the re-
qulrements of that section. but REM
edies certain antiquities OF expression
on account OF which the Distrlct-At-
torpey Of the County OF New York has
found considerable difficulty IN framing
indictments for perjury and conducting
prosecution OF officers verifying false
or deceptive reports. The amendments
were suggested by the indictment clerk
Of the Distrlct-Attorney's office.
To Safeguard Loans.
Another bill provides 81 an officer. d.
rector. o,crk or agent of any corporation
under chapter q OF the Laws or 1909.
shall own or control a majority stock OF
any other corporation. a loan to that
corporation shall be considered as q
loan to said Officer, director. clerk or
agent. The Banking Department says
It has been discovered that the law has
been evaded by not making loans direct
1y to officers. directors. clerks or agents
Of a bank. but to some small private
corporation. practically controlled BY
ouch officers or directors.
A third measure requires that re-
ports must he made to executive com
mittees OF banks OF overdrafts as we'll
A. loans and discounts. The Banking
Department says this has been sug.
gested by discoveries made IN connec.
ton with New York City banking In,
stitutions recently closed BY the state
where advances were made to cfiicer'
and individuals which could not h,
strictly defined as discounts or loans
and where. such officers and individuals
had been allowed to overdraw their a..
counts TO an amoun which would have
been necessarily reported TO the board
Of directors II tho liability had been In,
Cured In the form OF a loan or dis.
count.
Another bill requires every trustee o
. savings bank to take an oath eacl
year that during the preceding year h,
has diligently and honestly administers,
the aKalrs Of such banks and has no
knowingly violated or willingly permit
ted o be violated any OF the provision
Of law applicable 10 such corporation
Furnishes Officers.
The Banking Department says the ne
ceslty for this amendment Is rendere,
apparent by recent disclosures. \ fail
ure TO take the oath forfeits tho ono,
but the oficer may be reelected.
An amendment 10 the Penal Law I
also proposed. making 1t n misdemeano
Tor the Intentional concealment iron
directors and trustees OF a bank Of ad
vances including overdratts other tina
discounts or loan between the regula
meetings Of boards. This In "a max
the penal section conform TO the bank
ing section proposed to ne amended \,
additional amendment in this measur
10 from the National Banking Ac
n was found of great service In prose
cutting criminal offenders.
Another proposed amendment include
trustees under section 49, OF the Pens
Law. and owing. II II claimed by IN
Banking Department, to difficulties pr,
Niously experienced in proving that
director wilfully omitted the perform
ance OF Oils duty. the words cor ca.
pably ncglects" are added.