The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1916-08-17
FRANK < HOWE. xdl,a, and PUB
Thursday August II, 1915.
The Law and Mr. Williams

ne Law ana idFs Williams
Friends OF Senator Page, who were
astounded and shocked to the very
narrow OF their political bones by the
disclosures made by Bank Commits
sioner Williams regarding the Sen
ator's banking methods are taking
refuge in bitter criticism Of the bank
commissioner for allowing such
state OF things to continue without
correction and without publicity until
now
In this regard, some information re-
garding the powers OF the bank com
missioner might ne interesting The
establishment Of the office dates back
to 1904, when it was called inspector
Of finance, changed in 1906 to bank
commissioner In neither of these
acts were any punitive powers con-
ferred. The commissioner was mere
examining and reporting officer
The law was amended in 1903, but
it was not until 1910 TINT we find
law that puts teeth into the statue.
This is No l5S. entitled IAN Act TO
Revise the Law Relating TO Savings
Banks and Trust companies In adj
dition to providing a penalty Of $1,000,
to be recovered by ciyil action, it
provides for winding up the affairs o.
insolyent banks and contains the fol
lowing:
Sec. Al Duties Of commissioner in
case of banks misconduct Whenever
it appears to said commissioner from
an examination made by him or from
any report made to him, that a bank
has committed a violation OF It's
charter or Of law, or is conducting its
business and affairs in an unsafe and
Unauthorized manner or that it or
/ any OF its officers have failed to COM
| ploy with all the rules restrictions and
J conditions provided BY law including
/ the rules and requirements Of the
| bank commissioner made in conform
/ lty with law, he shall, 10y written
order delivered to the treasurer of
| such corporation and the offending OF
fcer or officers. direct such corpora.
tions and such offending officer or OF
I flcers to discontinue such illegal, m
safe or unauthorized practices or con
duct, and to proceed in strict con.
formity with the requirements OF law
This. according to Mr. Williams
statement he has done repeatedly
and the only reason it took so long
to accomplish It is the attitude OF Sen
ator Page" Also. it is well to note
that Mr.. Williams and Senator Page
now agree that the practices have
been discontinued with the possible
exception Of eyadng taxation by dun
my transfers OF bank stock
There is provision In the law OF
1910 for further action in case thC
bank should prove obduratc
Sec AZ. Proceedings If corporation
noslects to comply with orders of com
missioner II such bank or any OF Ia
officers refuses or neglects to comply
with such order, the bank commits
sioner may apply to the court O
chancery for such an injunction or on
der against such bank and It's officer
as the circumstances require.
The court is then given power t.
permit the bank to proceed, (al sut
iect to the orders OF the court. or %
under the direction OF a receiver.
What do the critics of Mr.. WI
s. liams say-should he have applied 10
an injunction or continued to hamms
away for six years, finally succeedln
in compiling obedience to law?
lt is just as much a bank commi
sioner's duty to protect the deposi
ors as to require the banks officers {
obey the law Would the deposition
in Senator Pages bank have WELDON
ed judicial proceedings against Il
precedent
As to publicity, what provision
there in the statue for pu6lishr
1 such conditions in the commissioner
4 report? Aud what warrant won
4 there have boon for rushing IN
/ print" the first time that Mr. w
N llams found Senator Page pclsistii
ii ! in improper methods?
II Il seems 10 The Herald that N
3 Williams, in the face of general or
4 icism has merely published the FAC
J In defence oil his Office and In vim
\ cation Of the law OF lalo.-Rutia
4 Herald