The Washington times., 1914-10-20
DISTRICT BANKERS
NAME NEW OFFICERS
Association Holds Annual Meet
ing and Discusses important
Questions of Finance.

George z. Fleming, vice president O.
the Union Trust Company, was elected
president of the District Bankers AS
ISOLATION to succeed B. F. Saul, presi'
dent OF the Home Savings Bank. at the
annual meeting Of the organization held
last night at the New Willard
Other officers selected for the year
were W. T. Galliher, president of the
American National, first vice president
John Poole, president OF the Fedora
National. second vice president; e. S
Wolfe, cashier of the District National
secretary, and A. S. Galley, cashier Of
the Lincoln National treasurer.
To complete the council of administra-
ticn Of the association. of which the
president and first and second vice presi-
dents are exofficia members. the fol
lowing were elected: Charles J. Bell
president of the American Security and
Trust; Robert n. Harper, president OF
the Dis-1ict National; Cuno II. Rudolph
president Of the Second National, and
Maurice d. Rosenberg, president of the
Bank Of Commerce and Savings.
Audit Committee Named.
John NJ. Riordan. cashier Of the Bank
OF Commerce and Savings, chairman
James Evans, jr., of the Riggs National,
and W. w. Spaid, of w. B. Hibbs & Co.,
were selected to constitute an audit COM
mittee. President Fleming was dele
protective, and an examining commit
tee.
On the recommendation of the special
committee on standard bank forms the
association adopted, in lieu of counter
checks, a form of non-negotiable re-
ceipt, distinctly marked and limited to
counter use, to which the banks will
give recognition only when II is in the
hands of the individual on whose ac-
count il is drawn.
torney used in connection with COL
lateral loans, where the security does
not stand in the name of the borrower
was adopted. The new form specifically
authorizes the hypothecation Of the
security. Feeling that the form Of col
lateral note submitted by the commit
tee was too rigid and drastic, the as
ISOLATION, at the committees request
deferred aouaon until each member bank
shall have secured from its counsel an
expression of legal opinion.
Modification of Discounts.
w T. GalIiher, as chairman Of the
special committee to consider modifica-
ton of discount and interest collecting
methods, requested that his committees
report be received and filed without
adoption or rejection. The association
had been requested by the Washington
Clearing House Association to recon-
mend:
"Q That the banks and trust COM
panies in the District Of Columbia dis
count commercial paper, E., take out
and set aside for their use at the time
the transaction is made the fee which
they charge for the accommodation. 90
That notes bearing interest be dis
counted by adding the interest 20 the
principal thus forming new principal
which shall be discounted as stated
above; 90 that collateral loans to in
dividuals be made payable at specified
time instead of on demand; a. that
interest on such demand notes as II
may be necessary to make be collected
monthly"
To add the interest to the principal,
thus forming a new principal, in an in
terest-beartng note, the committee said,
might raise a question of usury, and for
all of the banks as an association to
enter into binding agreement on the
question referred to his committee. Mr..
Galliher added. might be construed as
q violation of the Sherman antitrust
law. Consequently, until the Depart
ment of Justice shall have been con-
suited, Mr.. Galliher said. he preferred
TO make simply the following two
recommendations:
ID When money is loaned directly
to customers, without security and for
commercial purposes. notes accepted by
us for such loans shall not bear interest
and the fee required for the accommo-
dalton shall be deducted from the face
OF the note at the time the transaction
is made In accordance with the accepted
practice OF discounting which prevails
in other cities.
90 Ali loans, secured or unsecured.
made to individuals, firms and corpo-
rauons that are not engaged in a bank
ing or brokerage business shall be pay
able at specified time and not on
demand"
Mr.. Fleming, not being present to
take the chair at his election Mr.
Galliher presided and made a brief ad-
dress, complimenting the association on
IT'S past achievements and pointing out
the opportunities for practical work
The meeting was concluded with u
buffet supper.