New-York tribune., 1912-06-11
Business Secrets Respected.

The Clearing House committee. when the
nlan NJ Clearing House bank examinations
was unanimously agreed 10 by the mem
hers took great palms To arrange 'ne
method of examination so thst tne ine,l-
hers az the committee would have no DE-
tailed knowledge whatever In regard TO the
affairs of solvent banks, and the regula-
tions under which the examiner WORKS pro,
vide. iu the strictest manner that that Snall
be thc case The Clearing House commit
tee tal<es the word OF the hank examiner
and relies on that solely, never having pe
for. Il the details Of the examination: Ana,
further all the facts Of the examination
and thu examiners report are sealed by the
examiner himself and returned TO the bank
that has been examined, so as 10 gusrd
against any improper use ot that lniorfna-
ton had Il remained In the files OF the ex-
aminer.
II n bank were found hy the examiner 20
ba insovent he would then properly brinS
It's condition TO the committee In detail,
but so long as the bank Is solvent, and In
the opinion Of the examiner properly man
aged. the committee has absolutely no
knowledge Of the details or It's arairs.
This method Of examination and report ~
on, that was originally established by the
chicago Clearing House Association AT tne
time OF the so-called Walsh bank trouoles
there. and met so completely the epproVa'
OF the Chicago banks that IL was adopten.
practically without change. by the Ne"
York Association, in order 10 avoid
repetition of somewhat similar troubles
here. ..
tho impression that the Clearing House
committee from Interior motives excludes
banks from membership in the Clearing
House or .Xpels them from such member
shin. There was nothing brought out from
any witness in the examination TO war
rant such inference, although II was
spread broadcast. and certainly notning eh
MELON So far as 7 have any knowledge
of the Clearing House. there never was ex.
cluded any bank applying for admission II
that bank showed n clean bill OF health
that Is. IL II was solvent. II II had the
minimum capitalization which the rules OF
the Clearing House prescribe and if It's
management was reputable.
Certainly no bank was ever expelled from
the Clearing House while Il complied with
these conditions The Clearing House IL
not "a group Of banditti. IL is, 7 believe.
composed OF the highest grade bankers In
,hIs country and It's history Is one OF help
f,ilness and conservation at all times. and
I'm times OF panic OF the most essential use'
fulness TO the whole nation.
T.. 4. VANDERBILT. .
New York June 10. 1912.
The Congress committee will resume It's
hearings at the Custom House to-day.
Morse May Be Witness.
National Bank OF North America. who was
convicted as a co-defendant with Charles
w. Morse In November, 1903. but received d
suspended sentence. had a long conference
with Mr.. Uniermyer at the lattcr's office
Yesterday Mr.. Untermyer would not say
whether he intended to call Curtis as q
W itness The failure Of Morse's banks was
touched upon at a previous hearing, and II
Is thought likely that the committee In
tends to go into the matter further. There
was some talk that Morse himself might be
called as n witness.
AS IN tho case OF the Oriental Bank,
counsel for the committee has intimnted
that testimony might be odduced tending
to show that the Morse banks and others
which closed their doors In the fall OF 1907
were hurried to their downfall by tho ar
bitrary rulings and power OF the Clearing
House committee.