Evening star., 1915-05-21
section 5240, think 1t is. the govern
ment has provided that in addition to


ment has provided that in addition to
these reports, general and special.
there shall not be less than two exam
only must there be two and there may
be twelve, but when the examiner goes
into the bank he Is authorized to in
vestigate not it's condition as section
5211 provides. but he is authorized to
investigate it's affairs. He is authorized
further to examine its officers and
agents under oath. He has authority
to go into the vaults of the bank and
count its cash. bill by bill and coin by
coin.
'He has the authority to compel the
bank to put upon its table the portfolio
containing every bill receivable which
it owns. and he had the full authority
to compel the officers Of that bank to
ton and the antecedents of every
debtor of the bank.
THE bank examiner does not gem
orally deem 1t necessary to do this, and
espe cially with respect to those loans
which are well secured by collate eral
but If the collateral does not satisfy
him he can demand the name or the
name appearing on the note) he can
demand the post office address. the oc-
cupation and can ask to be furnished
cial standing in the community where
he lives. He has every facility given
him by the law to inform himself
thoroughly about the condition of that
bank In all respects. He can ask
whether John Doe, who signs this note,
is a brother or a half brother Of Rich
ard Roe, who signs this note.
He can compel complete statement
to him of everything that reasonable
man would need to know in order to
Judge the value of the assets of that
bank, and when Mr.. Untermyer says
that you must give section 5211 the
strained construction upon which he
insists or leave the people who deal
with banks in this country without a
fair protection. he overlooks the most
important part Of the act.
Query by the Court.
The court here inquired: Now, you
pose of having a bank examiner was
to go into the bank for the purpose of
investigating Its affairs. for the pur-
was.''
Mr.. Bailey-Yes, sir.
The Court-How can anybody, even
the controller, find out what the con-
dition IL without inQuiring into its af-
fairs? And If, in order to find the con-
dition. you can inquire into its affairs.
then why cannot the controller do just
exactly what the bank examiner can
Mr.. Bailey-Because section 5211 is
one thing and section 524O is another
thing.
The Court am taking your own ar
eument. You say that the object of
the law in regard to the bank exam
iners Is to have somebody who can go
into the bank and inquire into Its al
fairs for the purpose OF ascertaining
its condition Section 5211 says that
q q
certaining its condition. Then why
should not the report show the affairs
of the bank?
Mr.. Bailey-Because section 6211
which shall exhibit the liabilities and
The court-No; 1t says ''the condition
Mr.. Bailey-1 am talking about the
general one now.
The Court am talking about the
special one-the one you are arguing
Mr.. Bailey am talking about the
whole section. and l think that the last
sentence of the section. as 1t relates to
the aame matter as the first sentence
must be construed under the rule of In
mari understanding to the same
thing. the same construction must be
nut upon it; and perhaps just at this
point 1T might be well enough for me
TO read the court from decision.
Section 521l Read.
The Court-Let US read the first part
| of Section 5211.
Justice Mccoy then read the section
and a controversy ensued as to its
meaning, whether the second portion
enlarged or curtailed the reports re-
ferred to in the beginning of the Sec
| ton. Mr.. Bailey maintained that the
court did not grasp the distinction he
was attempting to make. He concluded
the colloquy, saying:
| Your honor displays in that state
ment that you still do not understand
| exactly what l am saying. l say.
| there is no Limitation in the first on
| the character of the report. Now, they
shall make reports. and then it does
| not say what kind of reports. but it
does say that those reports shall ex-
hibit their resources and liabilities. but
1t does not say they shall not ex-
hibit everything else: and. as a mat
ter Of fact, they do exhibit many things
|