The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-06
BANK OFFICERS
TO REPAY LOSS
ON U.S.DEMAND
Comptroller Forces Refund
inc in National Bank Of
Commerce Case.
NAY TAKE ACTION
AGAINST OTHERS

ANAlNN1 VI IL Ems
NAsHiSGroN, Feb. 5.--John SHELTON
Williams Comptroller Of the Currency.
has called on the directors OF the Ma
.'onal Rank of Commerce OF New York
,sty personally to make good certain
Losses sustained by the bank through
took transactions. The directors OF the
hank. or az least part OF them. have
Welded 20 -he ComptrDllcr's demand.
Tho exact amount involved could not
Be learned here tonight but Washington
was not 80 much Interested in that as
m the new policy which this action seems
TO Indicate on the part Of the Comptrol-
Ter g office.
The losses which the Bank OF Com
mcoco's directors were called on TO
make good resulted from transactions
or Investments which Comptroller Will
Jams contendcd were without authority
In law They did not constitute viola
ions of the law. but there was nothing
.n the national banking act which au-
thorized them.
ola transactions.
The transactions which have been re-
viewed by Comptroller Williams. and on
which ne based his demand, covered a
period OF several years. II is said All
~ them occurred when Valentine +.
snyder was pres dent OF the bank. James
: Alexander, the present head of the
bank, succeeded MIR. Snyder in 1911.
II is understood that some OF the losses
3on
acre on transactions dating back ten
wears.
Il is tho action OF Comptroller will
ans in reviewing the official record OF
his predecessors In office and taking eN-
option TO their acts that caused COM
mont in Washington tonight among
bankers and others who had heard OF
ne Comptrollp RS proceedings
MANY seemed 10 doubt the Comp
rollers power to make such review
md 20 hold tho directors OF a bank
pcrsoually Liable for acts done long be-
ore his administration. Tho directors
- tho Bank of Commerce apparently
ia rot care TO make an Issue OF the
matter and Welded to tho Comptroller :
demand rather than b aasjcc'ea :" ;ne
9Nnoyanccs that would follow upon MS
rtrsat TO enforce refundins or me
losses.
Comptroller williams declined to dis
,uss the case tonight or to acknowledge
that it had been settled, hut 1t is known
that all the transactions to which ne
objected involved losses sustained
through the ownership OF corporate
,tocl,s, Mr.. Williams's complaint being
that under the national banking act no
member bank is authorized to buy or
ovn securities of this character
Not the Only Bank.
Information obtained here to-day in
dicated that the National Bank Of Com
merce is not the only New York city
Institution whose records of the last
ten wears or go are being subjected 10
Tho scrutiny Of Comptroller Williams
agents with view to uncovering losses
Of this character and calling upon tins
directors 10 refund them. Reports were
In circulation that action might be taken
against directors OF some other banks.
Previous Comptrollers of the Cur
-ercy. when losses of this kind came 10
their attention. contented themselves
with demands upon the bank directors
10 make up the losses. There was, how
over nothing in the national banking
act giving the Comptroller the power q
enforce such a demand. The result was
that IN many cases these orders never
we're oheyed In addition to searching
for new evidence Comptroller Williams
rs said TO be following up -Aese Ola
orders.
Az understood here. however. he Is
going much further than any other
COMPTROLLER Of the Currency and Is
nolding out the possibility OF stock
holders suits to recover unless tine
% ses on SUCH transactions are re-
funded.
In the case of the National Bank OF
Commerce Comptroller Williams was
able 20 make use also of the fact that
very close to a majority. II not clea1
majority, Of the present directors were
members of the board when some OF
the losses complained OF were sustained
The Old Board.
The board OF directors ten years ago
consisted Of Valentine y. snyder. James
". Alexander. George +. Baker. Charles
T. Barney, r. J. Berwind, q. Ledysrd
Blair, John Clatlin, Frederick Cromwell
Henry G. Deming, Chauncey VI. Depew
John f. Dryden. James b. Duke, Mar
shall Field, George j. Could, Daniel
'iuggenheim, George G. Haven, Adrian
lscNn, Jr, Brayton Ives, James y
jarvie, \. y. Julliard. otto II. Kahn
Luther kountze, Alvin w. Krech, Wood
bury Langdon, Charles Lanier, Richard
A MCCurdy. William H. Mcintyre
w Mellon. D. Ogden Mills, David
Noffat, j. =, Morgan, Levi p. Morton
Walter G. Oakman. Frederick =, Olcott
hcNander f. Orr, James II. Parker
'nIries A. Peabody, Elihu Root, Charles
81 Russell. Thomas r. Ryan, Jacob ii
Soh.ff, Frederick Sturses, II, Mex
Iw1mhly, r. H. Nreeland. Harry Payne
Whitney and George w Young.
or the directors who were serving ter
wears ago the following are still on the
board
T. j Berwind, c. Ledyard Blair
James h Duke, George ], Gould, DAME
tuggenheim Adrian Iselln, Jr.. james
y, Jtrvie, \. D. Juilliard, Alvin W
kr'rh, Charles Lanier, A. w, Mellon
James II. Parker, Charles A. Peabody
.1arlcs H. Russell. Valentine =. Snyder
r"d'rtrk Sturges and Harry Payn'
Whtuey
According to comments in bank cir
,.'a here the Bank OF Commerce il
February, 1905 became subscriber Il
the Chicago city Railways syndlcat