New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-09
BANK EXAMINERS PROTEST
Convention Thinks Fees in Coun-
try Are Too Small.
URGES AMENDMENT OF LAW
Frank L. Norris Says Hasty Elk
animation Is a Cause of
Dishonesty.

A unanimous demand for an increase In
the compensation granted by law to ma
tional bank examiners for their work In
country banks was voiced Yesterday at
the convention OF bank examiners which
was opened at the Brighton Beach Hotel.
The inadequacy of the fee allowed to the
national examiner outside OF the reserve
cities was declared to be one OF the chief
causes OF Inefficient examination. Having
to pay his own expenses, the examiner, II
was pointed out, bad to hurry through MS
work unless he was willing 10 have his
whole fee eaten I'D.
Frank l. Norris, national bank exam
liner and chairman OF the Philadelphia dis
trict. who presided ct the convention,
brought this topic before the assembly,
and his speech was heartily applauded By
the seventy-iye examiners present. George
c. Van Tuyl jr Superintendent Of Banks
Of the State OF New York, was among
those who expressed themselves most en-
phatlcally tor an increase I'm the fees.
The convention was attended by national
bank examiners Of the districts including
the states OF New York New Jersey.
PENNSYLVANIA. Delaware, Maryland and
Virginia and the District Of Columbia the
ment and the examiners OF the Clearing
iIouse
In his speech Mr. Norris said that. while
the national bank examiners in the reserve
cities received y very satisfactory COM
pensation, the examiners Of country banks
were badly underpaid. The fee system, he
said, had been established by the law OF
1915. and since that time conditions in
banking had changed. to make the work
Of the examiner more difficult. The scram-
BILE for deposits. he explained, caused
greater leniency to be shown To credits
requiring a closer scrutiny by the exam-
liner, in order to discover dangerous spec
ulative undertakings and that community
OF interests which is the parent OF con
soldated capital, from dummy notes,
which are quite likely TO be It's offspring.
and from bonds which are not founded on
intrinsic worth"
Mr. Norris then made plea for an
amendment 10 the national bank law 10
give more time and assistance TO the coun-
try examiner. whose route il long and
whose hours are arduous. In this way, he
said Il would be possible to achieve the
best results. and at the same time give the
examiner a chance TO earn compensa-
ton that was a little more than the amount
necessary TO cover his hotel bills and trav
elling expenses
Pay the country examiner on the same
satisfactory basis as tho examiners in re-
serve cities" Mr.. Norris said. that Is, an
arbitrary tax on capital and certain per-
centage OF gross assets. This would be
long step toward making failures and sue
cessful dishonesty a thing of the past"
The need for action to secure an In
creased compensation was urged by Nation
nj Examiners Colonel Ellis II. Pepper, OF
Long Island: Samuel VI. Ham, OF Baltl-
more; L. A SouthalI. OF Buffalo, and Edwin
F. Reorebeck, OF New York Superintend-
ent Van Tuyl and number OF state bank
examiners Joined in the support Of the
recommendation. II was decided TO appoint
a committee OF three which will draw up
resolutions on the matter and submit them
10 the Controller OF the Currency.
The country examiner receives a fee
scheduled according to the capitalization
OF the bank For bank with capital not
exceeding 10000 he receives $50 and from
that amount he has TO pay his assistant
and all his expenses. To net anything from
this fee the examiner would have to cx-
anime the bank in day, task practical
~ impossible.
The purpose Of the convention Is TO form
a national association which Will embrace
federal and state examiners. A committee
OF seven will be selected this morning TO
perfect the organization, and II Is eX-
pected that within three months the seven
hundred examiners OF the country will join
the association.
An exchange OF experiences In the exam
inatlon OF banks and a discussion or varf-
Gus topics in that connection filled the af-
ternoon session yesterday. The question OF
real estate loans received much attention
and was discussed with much zeal
Superintendent Van Tuyl created amrse-
ment by telling the examiners that many
Of the upstate savings banks had a great
liking for loans on real estate in this city.
There was a llttle graft I'm It, he said. be-
cause the trustees OF the bank would come
10 the city to look at the property and
after three days Of excitement at lunch
cong and dinners the loan would be ap-
nroyed But since a special department has
been created to appralse the property on
which savings banks granted mortgages
the trustees have grown less impressionaoie
IN tho excitement OF the city. he added,
The meeting Will be continued this morn
ing,