New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-04-10
MAY CHANGE RULES
Clearing House Considers Re-
vision of Check Charges.
COMMITTEE OF FIVE NAMED
Methods of Collections on Inland
Exchange Have Stood for
Thirteen Years.

The executive committee of the New
~ Clearing House Association has
..ren the first step toward a possible re-
,i.jon of the Clearing House rules re-
..-d,ne check collection charges. This
ss,Ion interests not only the banks and
s.nst companies which clear through that
,.,tjtution. but their correspondents as
we'll.
,coording to an official statement given
- last evening at the Clearing House.
,bo Clearing House committee, on motion
- 4 Barton Hepburn, has adopted the
following resolutions:
Whereas, There were, adopted on April
. 1909 rules and regulations Of this as
Collation. regarding collections outside or
~ citv of New York which, with the eX-
ssntion of special interpretations put upon
cSrtain clauses Of the same by the Clear
10 House committee, have never been al
Rod or amended. In view of the fact
tSat the volume of collections during the
iaSt thirteen years has increased very
largely. and also the fact that since these
niles and regulations were estaollshed
,Sere have been various methods pur-
sned in the handling of collections by
the different Clearing House associations
throughout the country. II would seem as
n the time has arrived when a careful
ioyestigation should again be made or
'- therefore ei' be it resolved, That special
committee Of FIVE be appointed by Frank
A Vanderlip, chairman Of this committee,
n, ;he purpose Of making a thorough in
yest.gation Of the subject Of inland eX-
change and collections. and the methods
nurs,ied by other clearing house aSSocia-
tions and 10 report 10 this committee sucn
changes IN the rules or regulations OF the
New York Clearing House Association as
In their judgment may be deemed best, and
Be- il further resolved, That this commit
zee be authorized to invite 10 appear before
them managers OF other associations and
members Of this association, for the pur-
ton Ten
NJ Vanderlit appointed as such COM
mittee the following: James G. Cannon,
president Of the Fourth National Bank;
Walter E. Frew, president Of the Corn EX
change Bank; Joseph T. Talbert, vice
president Of the National City Bnak; Ed
ward Townsend. president Of the Importers
end Traders National Bank. and J. w.
Plstten. president Of the United States
Mortgage and Trust Company.
When a Country check" is deposited IN
a New York bank the customer is at once
credited with the amount: but the bank
Itself must lose the interest on the sum
for the number Of days IL takes TO forward
the check to the out-of-town bank and coll
lect the cash-sometimes as long as two
weeks There is a further minor expense
10 the Clearing House hanks in clerical Ia
Dor and in postage. and the total expense
70 them arising from loss OF interest and
the other items was estimated In 1899 when
The new collection rule was adopted, to be
as great as S15O00O0 a veal
y was 10 reimburse themselves for this
heavy expense that the local Clearing
House banks decided upon the policy Of
making charges for collection OF out-of-
town checks. a policy which aroused for a
time widespread opposition among their
customers and has never been fully ac-
ouescsd in by banks outside Of New York
Overtures have several times in the last
fsw years been made by organizations Of
banks in other states. especially in New
England. for the adoption OF a reciprocal
arrangement through which the rule would
70 sbrogatAd as TO the banks Of those
states
j. Che resolution adopted b. the Clearing
House Association in the spring Of 1899,
Boston. Albany. Jersey City, Hoboken.
Rayonne. Philadelphia Providence, Troy.
Newark and Baltimore we're named as
discretionary points" the New York
hanks not being obliged to charge for col
lection Of checks on those cities,
On ali points in list Of twenty states.
With the District Of Columbia, a minimum
rsts Of one-tenth Of | per cent was i'm
pcs4d for collection. no check TO pay less
than 10 cents and minimum charge OF
ons-quarter Of per cent. with at least 10
cents charge on any check. however small.
YES to be paid on all checks drawn on
hanks in the remaining states and the terri
tories and in the Dominion OF Canada and
turned in TO New York City Clearing House
Institutions for collection.