The evening world., 1911-03-15
CHENEY PROMISES
DIVIDENDS FROM
BROKEN BANKS
Money Soon for Depositors of
Washington Savings and
the Carnegie Trust.
SURPLUS LOSS WANING.
Superintendent of Banks in Re-
port Discusses Steady In
veStment Decrease.
SURPLUS LOSS WANING.

ALBANY. March l5-supt. q II
Cheney OF the state Banking Depart.
ment in his annual report 20 the Legis-
Iature to-day on savings banks. trust
companies. safe deposit companies and
miscellaneous corporations says the
liquidation of the Washington Savings
Bank which the department closed be-
aus II became involved In the same
sertes OF operations which led TO the
failure OF the Northern Bank of New
Yrk IL progressing as rapidly as may
~ expected and II Is hoped a substan-
dal dividend may be paid dcpositors
sAortly after the expiration OF the three
months required by law.
The Carnegie Trust Company, which
the department took over On January, is
aho being liquidated, and a dividend Is
Wi permit.
Banking Conditions.
The superintendent points out that
although the total OF the
trust companies OF the state as OF Jan.
!. 1911. exceed those of Jan. !. 1903. by
So7.o0o.o 900, they were SIS. 900. 900 less than
for the first day OF 1910. nj which tim
the total was the greatest in the his
tory Of these Institutions.
Further comparison" says the SUI
pSrintendent. shows 1922. 0 GOO less
loans than were outstanding a year
ago. a condition which appears to re-
hect a conservative retrenchment OF
commercial enterprise. The inactivity
- the market for securities Is also
evidenced by a small s%hrinkage of the
surplus computed on market value.
However. the total capital Of the trust
companies of the State was increased
S,o00, 900. The total deposits reported
txcecd those OF two years ago.. though
. pei cent. less than on Jan. 1. 1910;
slight fluctuations are incidental and
are not OF particular import. Never
thsless the augmented surplus favor
ably Increase the ratio OF surplus 10
deposits"
The report makes certain recommended
lions covering proposed amendments &c
the banking law. made necessary by the
irregularities recently discovered by tie
Banking Department which resulted In
the closing OF certain financial institu-
UVuS III wow IOIh. biliS cItlDOuy III
these amendments have already been In
tseduced in'the Legislature.
Sounds a Warning.
eapt. Cheney calls attention 10 tn,
Aluit ct unoroKen decrease annually dur
NS the last twenty years In the per
centage OF surplus on the market valu,
OF investment to deposits In the savings
banks Of the State. such percentage 10
Aay being less than one-half of what 1
vas In 1890, and declares that TIE situa
ton deserves careful consideration.
while there may he no immediat
danger" he continues, the situation 1
such that 1t deserves and is receivin,
the full attention OF the mos, thought
~ and conservative men connected wit
he savings bank system OF the Stat
Various remedies have been suggested
In fact. II has been proposed to arb
tfsnly limit by statue the Interest Q
dividends paid depositors with saving
6anks to fixed rates proportionate I
surplus already accumulated.
1.-THE purpose. of course. is to bull
up . suficient surplus TO protect depo!
itors against loss. and this end migi
possibly be served by the enactment
. law requiring every savings bank
this State TO set aside to surplus befoI
the declaration OF dividends to deposi
ots Q certain percentage OF Its net proA
fer the period until such time AS |
surplus. based upon market values. sha
10 equal 20 at least 5 per contum
IL deposits, ana "A less percentage uni
~ surplus. based upon market value
shah be equal to at least 10 per centu
Of its deposits.
The problem. under existing cond
tiops. Is so complicated by various CO
eAderations. and so many OF the be
minds Of the State familiar with all
totr1eacies are engaged In Its solutio
eaat ] shall refrain at the present TIN
from making any express recommend
taon. but ] do bespeak FOR this plan
0oms modification of It your very SCI
uuS consideration"