The Washington herald., 1914-05-14

CAPITAL BANKERS
VISIT RICHMOND.
Representatives Of Sixteen
Local Institutions to Attend
Conference Monday.
ELECTION OF DIRECTORS
Preliminaries to Be Arranged for Bal
lotins for Reserve Principals -Ru-
dolph and Sands Mentioned.
ELECTION OF DIRECTORS

| A recent meeting of the Washington
J Clearing House Association suggested
Cuno II. Rudolph. The meeting. how
ever. was not attended by all the local
institutions which participate in the new
system. 1t Is said to be probable that
Tucker X. Sands. cashier of the Com
mercial National. also will be nominated.
Not being a commercial city. Washing
ton can hardly expect to gain one If
the three directors places which so to
business men, hence the city is con-
fined to the strictly bankers class of
three.
Washington banks yesterday received
letter from the eight national banks OF
Richmond inviting them to attend the
preliminary needing at the Jefferson in
Richmond Monday morning.
Discu<sion Of Groups.
At this conference the representatives
of each group and of each State in a
group can discuss freely in separate con-
vention their own nominees, and COM
mittees representing each State and
group can. in joint committee. evolve
some mutually satisfactory method of
procedure In order to insure the de-
sired representation from among the
nominees finally agreed upon.
Such nominees would have to be re-
ported by each representative to his
bank In order that they might be ap-
proved by the board of directors as the
nominees Of said bank, as required in
the act
Since it is clearly the desire and pur-
pose of the organization committee to
call without delay upon the member
banks to hold meetings Of directors to
elect district electors and at the same
time nominate directors, II In suggested
that all member banks arrange in ad-
vance for regular called meetings of
boards OF directors to be held Immediately
upon return Of their representatives from
the conference. not later than May -
Voting for directors will be done by
groups, and memb-- banks are grouped.
not with reference to locality, but ac-
cording to capital and surplus.
Each group will therefore consist of
members from the six different States or
divisions of the district. and each men,
ber bank can determine from the classi-
ication adopted in the circular the group
to which 1t will be assigned.
While voting for directors is to be done
by groups, nominations, as provided in
the act may be made by each member
bank separately and Independently.
II the member banks act thus inde-
pendently. and without interchange Of
views or intentions, il can readily hap
pen that members in different groups
may nominate the same man for director.
1t is also apparent that when 1t comes
to voting. the directors in classes A and
B in any group may easily be chosen
from the same State. and from the same
place in a State. and that the directors
in either or both of the two remaining
groups may also be chosen from that
same State.
Six DivisIon District.
In District No. there are six States
or divisions. There are only three di-
rectors directly representative of the
banks, and three representing commerce
and agriculture.
II the idea of distribution of directors
should be thought desirable. there is no
way of insuring IT except by some pre-
vious arrangement or understanding.
One of the purposes of group election |
is doubtless to select the most repre- !
and efficient directors regard |
less of locality. While directors of the |
greatest experience and executive abil- /
ity are of the first consequence to the
success of the reserve banks, il is Sc
ond only to this in Importance to have
men familiar with conditions In different
parts of the district.
II IL is desirable to have one or more
directors from the same locality. it
and not accident
Moreover. should nominations ne made
by each member bank. and the majority
Or any great number choose different
nominees, the number to be voted for
would be highly confusing. would greatly
the election, and make the
result matter of chance.
Therefore 1t is apparently desirable
that the nominees in any group should
be as few as can be agreed upon, and
hat some way CT selecting from among
hese nominees those clearly command
ng the largest number OF votes to be
inally voted upon for election should be
devised.
Should the members of the different
,roups meet in their respective States,
( would very probably result in at least
wo nominees from each State, or twelve
o the group. or thirty-six in all three
,roups. and II would still remain to find
md agree upon some method by which
he three groups together could insure
In election which will give the desired
to each part of the dis
rict.
Conference Is Necessary.
Other districts have encountered the
anne problem, and conferences have
'een held or suggested to settle II, since
he subject is so involved that II is diff
lcult to see how the nomination and
lection of directors in the first election
an be carried out with any but hap
azard results, without conference and
by the members among
themselves.
A large number of member banks from
'hich communications have been ~re-
eived have expressed the opinion that
is highly desirable II not essential that
uch a conference should be held.
The member banks of Richmond there
ore believe that II will promote the best
,terests of the entire district and ,
realty facilitate the early and satisfac-
Dry organization of the bank to have
conference of the representatives Of
II member banks of District No. 5.
tentative analysis showing probable
roups or divisions of member banks of I
district No. is as follows: II
Group No. lone hundred and sixty I
anks; aggregate capital and surplus Of
.