The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1916-08-16
The Law and Mr.. Williams.

(kutland Herald.)
Friends of Senator Page, who were
astounded and shocked to the verv mar
row of their political bones by the dis
closures made by Bank Commissioner
Williams regarding the Senator's
banking methods, are taking refuge in
bitter criticism of the bank commits
sloner for allowing such a state of
things to continue without correction
ana without publicity until row.
In this regard, some information re-
gardlng the powers of the bank com
missioner might be Interesting: The
establishment of the office dates back
to 1904, when it was called ''inspector
OF hnance,' changed in 1906 to "banz
Commissioners. In neither of these
acts were any punitive powers con-
ferred. The commissioner was mere
examining and reporting officer.
The law was amended in 1908, but
| 1t was not until 1910 that we find \
law that puts teeth into the statute.
| This is No. 15S, entitled can Act to
Revise the Law Relating to Savings
Banks and Trust Companies. - In adj
dItlon to providing a penalty of 81 600.
TO be recovered by a civil action. if
provides for winding up the affairs of
lnsolvent banks and contains the fol
| lowing:
See. II Duties of commissioner in
case of bank s misconduct. Whenever
1t appears to said commissioner from
an examination made by him or from
any report made to him, that bank
has committed violation of it's charter
or of law, or is conducting it's business
and affairs in an unsafe ana unauthor.
lzed manner or that it or any of its
officers have failed to comply with all
the rules, restrictions and conditions
/ provided by law, including the rules
and requirements of the bank commits
s1oner made in conformity with law. he
shall, by written order delivered to
the treasurer of such corporation and
the offending officer or officers. direct
such corporations and such Offending
officer or officers to discontinue such il
legal, unsafe or unauthorized practices
/ or conduct, and to proceed in strict
conformity with the requirements of
law.
This, according to, Mr.. Williams
statement, he has done repeatedly, and
the only reason it took so long to ac-
complish it is the attitude of Senator
Page Also, it is we'll to note that Mr..
Williams and Senator Page now agree
that the practices have been discon-
tinued, with the possible exception of
cvading taxation by dummy transfers
of bank stock.
There is provision in the law of
1910 for further action in case the bank
should prove obdurate:
See. -. Proceedings if corporation
neglects to comply with orders of com
missioner. If such bank or any of its
officers refuses or neglects to comply
with such order, the bank commissioner
may apply to the court of chancerv for
such an injunction or order against
such bank and its officers as the cir
cumstances require.
The court is then given power to
permit the bank to proceed, (a) sub
ject to the orders of the court, or (b)
under the direction of a receiver.
What do the critics of Mr.. Williams
say-should he have applied for an in
junction or continued to hammer away
for six years, finally succeeding in com
polling obedience to law?
1t is just as much a bank commits
sioner S duty to protect the depositors
las to require the bank S officers to
obey the law. Would the depositors
in Senator Pages bank have welcomed
judicial proceedings against its presi-
dent?
As to publicity, what provision is
there in the statute for publishing
such conditions in the commissioner
report? And what warrant would
there have been for crushing into
print the first time that Mr.. Williams
found Senator Page persisting in i'm
proper methods?
1t seems to The Herald that Mr.. vii
liams, in the face of general criticism,
has merely published the facts in de-
fence of his Office and in vindication Of
the law of 1910.