The evening world. [volume] (New York, N.Y.) 1887-1931, 1912-06-06
the courts. h Mr. shsr.r SAID that was

the courts, Mr. shsrsr said that was
true. r,i "rg~uA a.w
Then" said Mr.. Untermysr. "the as
ISOLATION really could prevent any group
ofsnsn from going into the banking bus.
insss In New York II II wished tor
Mr.. Shsrer's attention was called to
the rule OF the Clearing House Asso-
citation requiring members to chargs
at least one-seventh Of J per cent for
collection Of out Of town checks under
penalty OF u $1,000 fns for the first
offsnse and expulsion for the second.
"Don't you know" said n. On.
tsrmysf. shat this - unlawful snA
n restraint Of oompstition-tAat u
seriously intsrfsrss with interstate
oommsrcsf"
u do not consider Il unlawful"
replied Ar. 0hsrsr. "No bank has
70 remain IN the Association"
Q. But no hank could remain In ,busi-
ness without that membership. could II?
A. doubt II; but II I were president of
. bank and considered . clearing house
rule unjust. I would withdraw and 10
announce to the public.
6G0ScNS
BANK COMPETITION.
Q. DO you admit that competition
among the banks has been lessened by
the rule regarding collection charges.
A. Yes; but this is a voluntary ortan-
ization. like q club. and the rule was
simply to prevent tho banks losing
money, as they found they were doing
ma tpy 81
deposited and drawn against without the
bank making any charge.
Mr.. Sherer also expressed his belief
In tho legality Of the Clearing House
certificates In circulation during the 1907
panic.
They were not circulating mediums
they were merely I o U.s." he said.
.. Do you accept the book Of Joseph
q. Cannon on clearing houses a. an au-
thority? A. Yes.
Q. Then. II there Is a statement in
that book that the collection charges on
out OF town checks amount to a tax o..
kSo.Wo,0oo year paid to the banks of
New York City by the business interests
Of this country. will you accept that
statement a. trueT A. The amount IL
30 large ! would want to figure on II.
"xou say" returned lgr. Uutsr.
mysr, shat the out OF town chsoks
are about one-fourth the businsss-
that - approximately 800, 100000
day. The collection charges uu-
Do rths clearing house rule ere one
seventh Of one per cent. Figuring
800 days In the year myself com.
puts the total Of such charges un-
der your testimony ct about $780, f.
100000"
II was announced that the big fnan-
ciai institutions would not be probed
| until fall.
mo testimony will be taken at this
time or until the autumn upon the
main branch Of the inquiry" II wa.
said In statement issued by the
chairman. Congressman Arsene p.
Pujo. when the committee met at the
Custom House at II o'clock. I'm view
or the insistence by certain Of the
leading financial institutions whose az
fairs II may become necessary TO In.
vestiSate. that the committee liz with.
out power to enforce Its demands for
information. the committee adhere IN
the conclusion heretofore announced
that II 10 not advisable to take up the
main Inquiry on the lines that II be
lisves to be necessary until this handi.
cap has been removed by the passage
OF the pending bill to amend Section
b.2tl Of the Banking Law. which has
pssssd the House and is now before
the Finance Committee Of the Senate.
"1hs committee o0nsidsrs II IN
advisable, in any event, to con.
duct that important ana fsr.rssoh.
iAs. economic inquiry during heat
ana ssoasemsut OF political oasn-
paagu, ana has not contemplated
such . course.
1T now has been recognized a.
imperative that the public oonn-
dsncs In the judicial altitude OF
the committee shall b tsyona sus.
piolea aad for that rsason the
! eennSt>ss ~ not eessalsssA Pr.