The Sentinel=record., 1913-01-09
coMPTRoLLER MURRAY IS oUES. TONED FOR THREE HOURS
 BY MIR. uNTERMYER
BANKING LAWS INADEQUATE
MT. Murray Condemned the Practice of Directors or Officers of Banks Accepting Personal Compen-
 sation From Borrowers.

Washington, Jan S.-Faults in the natlional banking laws were discuss ed today before the house money trust committee by Comptroller of the Cur rency Lawrence 0. Murray. M-. Mur- ay spent more than three lours un- der examination by Samuel Unter- myer, counsel for the committee. and agreed with many of the criticism of the national bank act advanced by Mir. Untermyer He asserted that the act as at present constituted was 1nef- tectiye and inadequate"
 Mir. Murray furnished the committee such data from his office as Presi- dent Taft dad directed him to supply, which however, was but small part of the information the committee ask ed the comptroller to furnish
 The committee tom.Yow will hear Geo, F. Baker, of the First National Bank Of Kew York, who Mir Unter. myer says, with James Stillmar and J P Morgan constitutes the trio of most powerful masters of finances in Wall street The connection between these three men. the institutions ib which they are interested and the funds controlled by these institutions will form the basis of MT. Baker $ examination. He arrived in Washing. ton today with his counsel. Fisher A, Baker, former Senator Jo..a Spooner and several other attorneys.
 Mr Murray condemned without reservation the practice, which he saIc was a growing evil, of directors or of- fcers of natiuni banks accepting per sonal compensation from borrowers to whom the funds of the bank are loaned He said that legislation should be passed providing for criminal prosecutions" of the practice He ia. yored a provision of law which would prevent stockholders transferring their stock in banks on the verge of col lapse and also indorsed a scheme to fierce banks to make public the list cf securities held as assets by ma tional banks Publicity of lists of stockholders in national banks, he said would be beneficial.
 Questioned by Mir. Untermyer, MT. Murray outlined the method Of the ex- animation of national banks by his office and asserted that under the present system the inspection was ineffective"
 'lt is merely superficial exami- nation. is it not asked Mir. Inter. myer e
 Yes, that is about all' replied the comptroller.
 The comptroller said there are about i05 bank examiners to suqeri- tend the affairs of 7,500 banks. In re ply 10 questions. he said that in New York city these inspectors worked wlth the bank examiners of the clear Ing house association and co-operat- ed with them.
 MT. Murray said his knowledge of clearing house associations was mere y incidental.
 We have received complaints from time 10 time from banks who said that certain clearing house rules were det rimental to their business he said but We have always told them we had no jurisdictions"
 The comptroller said that bank ex. aminers fixed the value of securities by 'he price on the New York stock exchange when the stocks were list ed there.
 Then if the stock quotation is for a iaise or ficticuious value. the examiieJ accepts it?'' asked Mir. Untermyer
 Yes, said the comptroller.
 MT Gntermyer asked about the re iations Of the First National Bank tC ene First Securities Company and ths Natlonal City bank to the National 1lsy company MT. Murray said hi: olllce had no record of the relation or these concerns.
 But you know that the presiden ana attorney general have had thes, cases under consideration? asked Mir untermyer.
 es, answered the witness.
 MT Untermyer further auestione, comptroller Murray as to the point considered in connection with grant