Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-01-09
Comptroller Of Currency Be
Iieves There Should be Pro-
hibitIon Of Commissions Paid
to Directors and Officers,
PRESIDENT WILL NOT
ALLOW DISCLOSURES
Certain Matters Relating to
Management of Institutions
Regarded as Confidential by
Government

~, Morning Iournnl special l.sasrd Mlrc)
Nnfhlnstan Jan. N--Faults in the
national banking laws were discussed
today before the house money trust
committee by Comptroller of tho Cur-
fenrN Lawrence %. Murray MI.
Murray spent more than three hours
under examination hy samuel lntCr-
mNor counsel for the committee. AMI
nrrcod with many of the criticisms
of che national bank act advanced bN
Air luteImXcr Tie asserted that the
act. a. at present constituted wnt
ineffective and inadequate. MT
Murray furnished the committee such
data from his office as President Tart
had directed him 60 supply. which,
however. WAS hut a small part 0i The
Information which the committee
asked Mr. Murray condemned. with
out reservation. the practice. which
he said WIS growing evil. of dircc-
tors ar officers Of national banks ac-
ccptng personal compensation
from BORROWERS to whom the funds
of the bank nre loaned
Hc said that legislation should be
passed pfofidlns for criminal prose-
cutlon Of the practice. lie favored n
provision uf law which would prevent
the stockholders of banks transfer
ring their stock ON the verge OF COLI
lapse OF their bank, and he also en-
durspd IA sehrW, Co force banks TO
make public the list of securities held
as assets bs national hanks.
Questie ned hN Mn tntermyer Mr.
Murray outlined the method of the
examination of national banks hy his
office and asserted that under the
present system the inspection was "in-
effective
III Is merely superficial examlnn-
ton. Is it notY' asked Mr untrr-
myer
Yes, that IL about all. replied the
comptroller
The comptroller said that there are
about los bank examiners 10 sup-
crintend the affairs Of l.a00 banks.
In reply To question. he said that
Ia New York city these inspectors
worked with the hank examiners of
the clearing house association and Coz
operated with them In connection
with The appraisal of i0ans and see
curltes held by banks.
Mr. Murray said that his knowledge
Of the clearing house association
was merely Incidental aud that he
had answered complaints frem banks
which said certain clearing house
rules were detrimental 20 their husi-
ness by saving he had no jurisdiction
The comptroller said that bank eX-
uminers fixed the value Of securities
hy price on the New York stock eX-
change when the stocks were listed
there.
Then If the stock quotation Is for
q false or fictitious value the exumin-
or accepts IT, asked MI Untelmyer
Yes said the comptroller
in answer TO questions about the
granting Of national bank charters in
localities where banks already We're
operating. Mr. Murray said some few
charters had been refused because be-
believed the locality already was
over banked
DO ven think this committee can
ascertain whether there is cuncen.
iratun of money or credits without
knowing the details Of the manage
mrnt Of national banks" asked MT
Untermyer Mr. Murray said he
could SHY nothing on that point he
sintcd he had prepared a statement
of the loans Of banks which could
lean more than Sl.O00.u00 10 an in
diNlduW hut that he could NOT pre-
sent this statement unless directed by
the president. ne said there were
but thirteen national hdnks which
could loan $1,000 600 to an individual.
bu he could not say bow many could
loan $1,000. 900 60 the same interest
hy dividing the loan among those
representing that interest.