New-York tribune., 1912-06-11
BANKERS NOT BAND|TTl,
Mr.. VANDERBILT WRITES
Continued from first page.

from the collection of country checks, the
work actually entails upon them ios2
OF from 2W0.T0 to $30OO,W0 per anhuin. -,
reach this conclusion from the experieuoI1
Of the National City Bank, with wnlch ,
am familiar; other bankers tell me tuae
their experience is similar to that OF ,, tne
National City Bank. To quote exactiy
from the figures Of the National Sity h banS cne,
,he excess amount received from tne III III
lection CT country checks last year va"
$69. 900.
That is to say. the amount we received
from the depositors OF the checks, less tMIls M
amount charged us by country tanks for
the service OF collection, left an dppdIens
total of s69.S0O, but during the Wnoie .ii,,y ~,
we were on an average out the tne avera &c
amount Of country checks affoat In pr3ceSs
of collection, credit for which had peen ,,
given to the depositors: Counting o,ra. s,ra.
sent a loss of s2S0,oJo, against which W., We
had the income of $685. 800; or. roundiy' VIC
business OF collecting country chechS 'o''
this bank $4,000
Collections Cost 100000.
That being the case. / think 1t is fair 10
saw that the business of country coiiec-
sions has cost the banks OF New 1Urh n,f
civ ut least 100000 to s3,O0oVN annuaiiS'
such profit as has been made In the posi-
ness of country collections has been niaos
by the country banks. They nave s receivea
q large gross total. That total. OF course:
Is not by any means all proht 10 tnen,; ss ps,s
whatever profit there IS IN me DuSa,i nrotit
goes to the country bank, and II is prol,s
which, under existing conditions: II @ seen,e ,he
10 me they are clearly entitled 70 uor
those checks and forwarding the proceeos
so that ii becomes available 10 the p"nM dnN
which has already credited the orig'hai Ut
positor. IA .,,. uhen the
Nav York Clearing House adopted tne
practice I'm vogue in many OF the cleartns
houses of the country OF liking tne raco o,cv- cv
collection OF country checks II was I'io- caiGa
lated thst the rate provided by It's resuia
lions would only partially reimburse r tme
hank for the loss in doing tne 't,st as
and the results have oItne UI, Uh,ch N" makes
sumption. / know OF no bank wniGn i,nSe iiinnye
a net profit on this business. peiaIIr
every bank in the Clearing House sus'a'''
a loss. ..o,,,,ts NJ the
raaant bea ring that the statement is made
In some of the newspapers that your coII,
sci brought out the statement tna. Uouse
formation obtained by the Clearihs hnoi.s
hank examiner I'm respect 10 tne H pooH'
loans collateral etc, OF the various pann'
examined places the Clearing Houss coh nch
mIttee I'm possession of the status OF .his
bank banker and dep3sibtor, .b ;,,nos. amu value in
certain conditions of the stock market'
such statements as this. leaving the nn :, ,
ayoidabe inference in the reaner s,,inn Hi,n
that a witness testified to such con -
of ,fYairs illustrates the bad ehect p1o
duced bv innuondOes. No such staleiien, ~,
was made bv any witness. II any such
s,afement had been made II would not
have been true. The Clearing House coli.-
mitloe has no more knowledge of tne al Al =
g,irs of a hank after the Clearing house
esamIncr las completed an examination
then has your counsels office boy. FtrtneI
than that ii has the assurance IRON nv tIr
hank examiner that tho bank mas pteh
fr,,f,d I'm solvent condition. The rules un-
der which the Clearing House exam;ness
works specially provide that such shouo
be tho case.