Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-17
CHANGES
HIS BANK BILL
Amends Measure So That II
Doesn't Affect Mutual
Institutions.
IFrOm a stan oOrrespondent.I

WASHINGTON Jan. 17.-Congress-
man Mccoy will act upon the pro-
tests made to him by Newark bank
ers and will amend his bill to regu-
late the holding of bank directorships
SO that 1t will not affect stockholders
of banks or organizations which are
not operated for profit. He said to-
day that he would do this at once In
compliance with letters he has re-
ceived from bankers in and near
Newark. He will probably hold a
conference with them when he has
his new bill ready for introduction
in the House. ut was not my inten-
tion." he explained to the Star repre-
sentative, ito interfere in any way
with banking as it Is carried on in
Newark. As one of my correspond
ents SO justly said, the banks of
Newark have always conducted their
business on such high plane that
the abuses complained of elsewhere
do not exist there. I have no desire
to impede the operation of these ad-
mirably conducted institutions or do
ANYTHING which will in the slightest
degree interfere with the present
operation
Here is a copy of the protest filed
by o. H. Pitney in Congressman Nc
Coy's office:
Financial circles here have been
thrown into a panic by a possible APP
plication of your bill regulating inter-
locking directorates. We have here
none of the evils OF scandals at which
your bill is aimed. We have nine or
ten national banks that are entirely
independent and competing
think none of them have d.
rectors In common. Some of
the national bank directors are
directors in trust companies. and
tho prevention of this would probably
work no inconvenience; but we have
four mutual savings banks that are
purely philanthropic institutions. Ono
of them, the Howard, of which I
have been counsel for twenty years,
is the largest in the State and has a
board of governors embracing some
of the best men in Newark. Many
of them, however, are directors in ma
tional banks. This association has
never been used to the disadvantage
of the savings institution in any way.
1t is very important for the welfare
of these philanthropic institutions
that they should have men of high
character and experience. If national
bank directors are ineligible the quail
ity of the directors whose services
could be commanded for savings IN
situations would be very seriously
dictatorship in a savings institu-
ton is rather thank1ess task, I'm
posing great responsibility. I doubt
not that many of their best directors,
If obliged to choose, would give up
their positions in savings institutions
rather than in the national banks
The result would be calamitous.
These institutions would be denied the
benefit of the devoted services or men
skilled and experienced in FINANCIAL
and the whole philanthropy
be imperiled.
IF you agree with me 1 suggest
that your proposed bill be amended
SO as to exempt mutual savings in
situations from the group of f1nan-
cial institutions designated as ANY
other bank, banking association or
trust company, or of any association
engaged in the business of banking
W. NJ. Van Deusen, of the National
Banking Company, sent a
protest along the same general lines
as that of Mr.. Pitney. In his letter
Mr.. Van Deusen writes: This bill
would affect us seriously and in a way
n which we do not believe that-it Is
your intention to have 1t work"