Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1915-12-04
Washington Gossip
Hdgar Q. snyder.



w HEN ex-senator Allen in Washington re-
w Gently TO argue the before the supreme
court Of Henry w. ONeiil and Cornelius X Het-
ferman plaintiffs in error. agsginst Jacob r.
Learner John T. Daley, Fred Bartels, David Glenn
Armour and Charles H. Maxwell. defendants In error
no said TO of the officials connected with tho
clerks office % tho court that he had some repu-
tatlon as long distance talker he would esteem II
a very great favor II the official in question would
pull his coat tails when the time allotted TO him FOR
his argument should expire.
Don't get worried about that" said the official,
"Chief Justice white will rap you down all right
when your time is up. never fear
And, sure enough. when the hour and half
given Senator Allen had been exhausted chief Jus
tice White indicated 10 the Madison statesman that
he taken up all the time the court could give tn
his side OF tho case but that he would be very glad
II Sepator Allen would take luncheon with him dur
ing the OF the court which the senator was
pleased 20 do, II gave him opportunity Ia
reninisce old times when he and Chief Justice
White colleagues In the senate way back in 1885,
Important legislation for the further control Of
the national banks Of the country will be proposed
at the coming session OF congress- with the backing
Of the comptroller OF the currency. One OF the bills
now being prepared seeks to put limitations on the
powers Of officers of national banks with the aim
to prohibit the practice OF bank officers lending de-
positors money to themselves. to business con-
Germs in which they Cthe officers) interested
In describing how Ohio bank came to grief
from this John SHELTON Williams. comptroller
Of the currency In announcement given out a
day two ago, says:
THE failure OF this bank was due to bad bank
ing. At the time OF It's suspension the bank
lending to its president and cashier and enterprises
directly or indirectly controlled by them TO
amount exceeding its total deposits.
This emphasizes the importance OF securing leg
slaon which will prevent bank officers from lending
to themselves for their personal benefit the funds
OF deposltors committed TO their care"
Also the subject Of branch national banks which
may serve the farmers will up for careful
sderation Both Comptroller Williams and Secretary
of Agriculture David #. Houston In favor of
branch national banks, though they differ widely
to details of branch bank plan. Secretary Houston
would put much strcter limitations the power
TO organize branch banks than Comptroller Williams
proposes
Secretary Houston insists that the establishment
Of branch national banks should be limited to local-
ties where there banks In existence. He also
would make It unlawful for national bank
organize branch anywhere except the congressional
district In which the parent bank Is situated His
fear is that unless the power establish branch banks
is strictly guarded the branches may operate as mere
feeders to suck up the money in the local COM
munites and carry It to the financial centers thus
leaving the farmers off than they are now
Secretary Houstons apprehensions not shared by
Comptroller Williams The latter would favor egsla
ton to enable national bank to establish branches
anywhere within the state in which II is situated
such branches be located regardless of whether or
not there are other banks in the communities to be
served
In this connection II Is interesting note that thu
recent decision OF Attorney General Gregory with
reference to the OF the Federal Reserve board
to change the location Of districts seriously interfered
with the determination OF the board to put Omaha
into the Chicago district. The board had about made
up Its mind to change the Richmond district to Bat
moro and the Cleveland district to Cincinnati but the
opinion OF the attorney knocked this scheme
into cooked hat The opinion OF the attorney gem
eral according to Senator Hitchcock Is entirely
erroneous the senator even going so far as TO say
that II was the expressed intention the trainers
OF the federal banking act to give the National Re.
serve board power to do anything thought best that
would tend TO increase the Efficiency OF the systen,
The prevention OF usury will come in for a Iarsc,
share OF attention. also the difficulty lies in the fac,
that the national banks, which are subject 10 con-
gressional control, only about one-third OF tho
totai number OF banks In the country other words
twohirds of the total number OF banks are not under
ieueai eharer and would not be subject any legs>
lation that congress might enact. Therefore wbtIa
IL Is within the range OF congressional action TO sion
usury when practiced by national banks II is not Dos
oie TOT congress entirely to eradicate the usury evil