The daily banner. (Cambridge, Md.) 1897-2008, 1913-01-09
SAYS BANKING
LAWS ARE LAX
u s. Comptroller Favors a
Stricter Examination
CONDEMNS PRESENT PRACTICE
Lawrence O. Murray Would Make Ac.
ceptance Of Personal Compensa-
ton" For Loans a Crime.

Lawrence ". murray "ouio "oNS ~
ceptance Of Personal compensa-
ton" For Loans a Crime.
Washington, Jan. 9.-Faults In the
national banking laws were discussed
before the house money trust commit
tee by Lawrence Q. Murray, comp
troller of the currency.
Mr.. Murray passed more than three
hours under examination by Samuel
Untermyer, counsel for the committee,
and agreed with many of the criticisms
Of the national bank act advanced by
Mr.. Untermyer. He asserted that the
act as at present constituted was "in-
elective and inadequate"
Mr. Murray furnished the commit
tsa such data from his Office as Presi-
dont Taft had directed him to supply,
which was only a small part of the In
formation which the committee asked
tire comptroller to furnish.
The committee will hear George F.
Baker, of the First National Bank Of
New York, who, Mr.. Untermyer says.
With James Stillman and ]. P. Morgan,
constitutes the. trio of most powerful
masters of finance in Wall street. The
connection between these three men,
the institutions in which they are in
terested and the funds controlled by
these institutions, will form the basis
of Mr.. Bakers examination.
Mr.. Murray condemned without
reservation the practice, which, he
said. was a growing evil, Of directors
or officers of national banks accepting
personal compensation" from borrow
ers to whom the funds of the bank are
loaned. He said that legislation should
be passed providing for criminal
prosecution" of the practice. He favor
ed provision of law which would pre-
vent the stockholders of banks trans
ferring their stock on the verge OF
collapse of their banks, and he also
Endorsed a scheme to force banks to
make public the list of securities held
as assets by national banks. Publicity
of lists of stockholders in national
banks, he said, would be beneficial.
Questioned by Mr.. Untermyer, Mr..
animation of national banks by his
Office. and asserted that under the
present system the inspection was ''in-
effective"
ut is merely superficial examina-
ton, is it not?" asked Mr.. Untermyer.
Eyes, that Is about ALL" replied the
comptroller.
The comptroller said that there are
about 105 bank examiners to superin-
tend the affairs of $500 banks.
In reply to questions, he said that in
New York city these inspectors work.
ed with the bank examiners of the
clearing house association and coop
Grated with. them in connection with
the appraisal of loans and securities
held by banks.
Mr.. Murray further said that his
knowledge of clearing house associa-
Hons Yas merely incidental. He con-
-fdnued
1--WE have received complaints from
time to tirae from banks, who said
that certain clearing house rules were
detrimental to their business, but we
have always told them we had no ju
risdiction."
The comptroller said that bank ex
aminers fixed the value of securities
by the price on the New York stock
exchange when the stocks were listed
there.
Then If the stock quotation is for
a false or fictitiou value the examiner
accepts it?" asked Mr.. Untermyer.
"Yes," said the comptroller.