New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-02
FAVQRS BRANCH BANKS FOR BETTER STRIKE LAW
Van TuyI Suggests Changes in
SAVINGS Institutions Law.

Albany, Dec Proper solution Of the
question Of reserve funds to be main
tained by savings banks for the safety Of
the money of the millions OF depostors In
this state will be urged upon the incom-
ing Legislature by George {. Van Tuyl
IT.. Superintendent of the state Banking
Department. in a statement issued TO-
day he says.
The savings banks Of this state have
been so cOnservatvely managed anu HS'
had so cnviabic record tndt uHuu
recent period adequate attention mas no.
been paid TO certain problems Whlch II
may be necessary Tor them 70 NIT
While IL 8 generally known that our sdn
iDgs banks are strictly mutual corpora
tions. MANY do not realize that there y
no capital from which losses can De pau
that the sO-called interest pd!u ~
savings bank is only diNdend ueCldl "a a.
nv the trustees and that all that stahus
between the deposltOr with such an lnsti-
tuition and loss in case the savings Dd4lh
should be unable 10 realZe upon 10 ~
Vestments is such surplus or reserve luIu
as IL may have accumulated from cam
ings ,,-,. 49, tr,,s-
While the securities in which the uus-
tees of savings banks are authorized 70
invest deposits are very strictly nIliteu
| by law, human ingenuity has as YET peeh
! unable 10 devise any plan by Wnlch lOSsss
| upon investments may De emu tn eiS
! avoided 1t is quite generally DelleVed
/ that some OF the savings BANKS Oh the
/ state have accumulated large SURPRISES
at the expense OF depositors ana u. c ueio ~
cation OF their rights. As a matter Oh
| fact, while there is no law when com
pels a savings bank to accumulate amp
surplus or reserve fund whatever, nm, nm,
tatlon is placed by statute upon the totai
! surplus which any savings bank may
! acciIr,ulatet and some of the savings
! banks OF the state had paid 10 depoSltoiS
| in dividends so large q proportion OF thell
earnings that their position was seIlouS'S
endangered during panic days
| The enactment of a law compelling saw
iuQs banks to accumulate surplus or
reserve fund has been urged iot mum
Der Of years by this department anu tne
question has been having the serious
donsideratlon OF the Savings Bank Asso-
citation of the state All attempts 10 enact
such a requirement into law nave thus
far been fruitless, as result OF the Jedl,
ousy existing between the larger dn1
smaller savings banks and the lack OF
a general understanding on the suDJect
| II is hoped that a proper solution OF TINS
question may be reached during the coin-
| ing session Of the Legislature.
'' Sroo,o, Tho most important recommends
tions affecting savings banks 10 De SUD
mtted TO the Legislature rs that Tor new
| Law 10 empower the Superintendent 10 au-
| thorize branches OF savings banks. Inc
| authorization OF such branch INSTITUTIONS
! would Encourage thrift in districts not
| now served by existing savings Dahks'
! The Banking Department favors Ieslsid-
| ton which would enable II to create,
| upon application branch Offices 10 De
| maintained by the larger savings panhsi;
| Such branch offices would De assure1
| management by competent ofilclais anu
able boards of trustees, ana Woulu nav
| the backing of large SURPRISES. "IHch
| would afford the protection so much 10
he desired for savings bank deposltors;
| Another proposed amendment 10 me
| bankine law would be a provision 10
\ hermit savings banks TO consolidate OF,
| in other words. TO make IL possible ior
ono institution TO take over another, on
terms satisfactory To the superintendent
OF Banks
| Recommendation is renewed Dy ihe
SUPERINTENDENT for the passage OF a law
! 10 provide a method for the removal OF
| trustees OF savings banks and requiring
them TO take an annual oath OF once
I'm the case OF two savings banks whlch
| failed I'm recent years it was found I'M
nossible TO fix the responsibility or trus-
| te,s who asserted. without fear OF con-
tradiction, that they had resigned as sucil
trustees some time before the ua'e Vi
the closing of their institutions