New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-02-08
BANKS LACK CHARTERS
Bill to Revive DefunCt Corpora.
lions Reveals Their Existence.
SENATORS SUSPECT 'NIGGER'
Similar Measure Once Introduced
at Albany to Renew Life of
Paper" Railroad.
rrv Telegraph to Tn. Tribun. ]

.,banv. reb Through discussion Of
,,e hill OF Senator White permitting the
,.v,vsl Of defunct corporations with out
landing Indebtedness on application to the
e,nreno Court It was learned to-day that
.tere are at least six banks in the state
,bose charters have expired, but which
arc doing business just the same.
one Of these banks has been in this dead
.,l-sliyc condition since 1907. The Bank
,,c DEPARTMENT learned Of it last fall. 1t
. ,ossihle that there may be other cases
,.t undiscovered as the Banking Depart
,,snt did not obtain data regarding the
charters and Incorporation OF banks under
some Of the old laws.
According 10 lawyers here the question
,. the legality OF the acts performed by
.ro officers and directors of these banks
,r this period since their charters expired
a.. q nice one. The Superintendent of Banks
has allowed them TO continue operations
since he has known OF their condition on a
,bao-y that IL was in general for the public
good-that is. FOR the good of the banks
.tsrieelves and their depositors. on the
.,re grounds. and because of the delicacy
n "a hanks credit. every effort is being
made to prevent their names becoming
,.,,ic property although the names Of
..r,o are known I'm the committee rooms.
For these reasons. 1t IS said, IL was
couch. 90 revive their existence under
SIN amending the general corporation law
Ind making no specific reference TO banks
rather than 20 have them reincorporate
md begin a ucW existence under the eN-
i.tirc banking laws.
81 the Banking Department to-day no
.t,,-ment was forthcoming as to the de-
,..,t,naut's views on the matter or any ex-
,leuation as 90 why the condition had not
con discovered and remedied before. SUI
.rerintendcut cheney was not in the city.
There lis considerable doubt whether the
,o,affioa will loo remedied under this
measure. us its sweeping provisions have
.ro~sed much opposition in both houses
n the LEGISLATURE. In the Senate to-day
!. Was rc,omwitted to the Judiciary Com
,rittee after being criticised by Senators
rrs,kett. Grady and IIinmau. During the
g,hste 70 became known that Senator Grit
con I'm the committee had offered an
smanlrert to- IL 10 make II even more
sweeping
same of the opposition is based on the
,sct that though intended 20 apply TO
Tanks. ~ is broad enough in its terms 10
,ermit the revival Of any sort Of corpo-
ration organized pursuant 10 any law OF
this state" and having outstanding in
Gebtedness Of any character.
peruliar phase Of the situation -
that this bill is practically identical with
,ne introduced several wears ago by Sem
sior Wemple. Of Schenectady. which he
finally said was intended 20 revive tho
Neu York 4 Canadian Pacific Railroad
concern which never existed, save on pa
rer. but which its projectors hoped TO re-
,.iye and make marketable Senator White.
who is handling this bill comes from
Schenectady. hut says he never heard OF
the railroad scheme.
The Assembly Judiciary Committee to-
gsv decided 10 postpone consideration of
the Brace bill. Identical with senator
Whites. indefinitely. Chairman Levy said
10 didn't believe those behind tho measure
we're acting IN good faith.
This measure" said he would enable
any corporation with outstanding indebt-
odness TO revive It's charter. 1t places a
premium on defunct and insolvent corpo-
~ations. permitting them 20 go on incur
ing Indebtedness and then TO reorganize
There was o nearing on this bill recently
90 which officials Of "a certain bank APP
reared to favor &c. This banks charter
rad lapsed four years ago l asked them
II they considered this method Of doing
business entitled them 10 credit from the
-.Iblic and 10 relief. The reply was that
q was Il mere oversight. II was admitted
-egarding one Of the banks seeking this
relief that there had been grave irregu-
Iarities I'm its affairs
Mr. Levy said there were eight banks
N this dead-and-alive state II believe
these banks are now doing business with
out warrant Of law and that il Is the duty
% the Superintendent of Banks to close
.1ew." he declared