The sun., 1918-09-29
BOND PROTECTION
PROBLEM GROWS
Safe Deposit Men Try TO De-
wise Plans for Keeping Of
More L. s. Securities.
FACILITIES ARE LACKING
Association Recommends That
Liberty Issues BE Accepted
Under Restrictions.

Following special meeting OF the
New York state Safe Deposit Associa-
ton. held Friday night at the Aldine
Club 10 determine what action should
M taken by tho association as to re-
Giving deposits OF bonds Of the fourth
Liberty Loan. II was announced yester-
dsy that n resolution had been passed
authorizing tho creation Of larger ia
enities throughout the Second Federal
Reserve District for the safekeeplng of
Liberty bonds.
The action Ia the direct result OF q
series OF articles published on the hnan-
c,al pages OF THE EvEEINu SUN pointing
ou. the shortage Of facilities In the dis
,ric, for the safekeepi OF Government
bonds As a result OF the large number
OF subscriptions 70 the three previous Is
sues there had developed a scarcity OF
safe deposit boxes all over the United
states, but more particularly In New
York, where tho largest number OF sub
scriptlons to tho various loans had been
received.
This shortage the safe deposit COM
paries would not be able to relieve ua-
der present conditions because safe man
'ufacturers were unable to deliver q suf-
hcient number OF safes to meet the in
creasinE demand from the army OF Lab
srty bond holders. The consequence OF
the whole matter was that there have
been many millions Of dollars lost by
bondholders through fire. theft and vari-
Gus other causes Hence the following
resolution by the New York State Safe
Deposit Association:
Whereas. the New York State Safe
Deposit Association recognizes that It II
a,,., IL 20 IN q
sst the small purchasers OF Liberty
Loan bonds in the protection Of theii
bonds: therefore be II
Resolved. That II Ia the sense OF this
association that Liberty Loan bonds bt
accepted under proper restrictions, re-
ceipts being given therefor. and that the
charge for this service shall not exceed
! por cent. per annum of the par value
OF the bond, and that bonds to the
amount OF 5000 be accepted from an,
one depositor for a period OF at leas
one year without charge"
In order to store bondholders' seouri
ties at such low charge safe deposi
compa MES will have to practically reor
sanize their business. Many ideas wer'
put forward at the meeting whereby
enough space could be saved to enable
the companies TO carry out their plans
but no positive action was taken. Tit
most practical suggestion offered in
wolves the reorganization of safe de
posit methods to the extent of abolish
ing individual boxes and substituting :
system of envelopes OF suitable size ant
shape for holding a few bonds
A person desiring to store bonds would
place the securities In n sealed envelope
and hand IL in TO the company. which
would make small annual char q
based on the declared valuation OF tn
package, which would be marked on tn
outside.
As a means of rapid and positive iden
tifcation the envelopes would be printed
with blank questions similar to thos
asked by savings banks, TO he filled II
BY the owner. His signature would ais
Be written thereon and the envelop
stamped with serial numbers 30 as to b
quickly located. Thousands of these en-
veopes would be placed in Ming cabi
nets similar to those in ordinary com
mercial use, and these cabinets placed o
built into the large vaults maintaine
by safe deposit companies,
This proposition was thoroughly dis
cussed and notice given that at the mex
regular meeting OF the association. whic
will be held on Thursday. October II
arguments would be presented in fave
Of the idea. and II Ia believed that a
that time definite action will be taker
The discussion indicated that should tn
suggested scheme be not finally adopte
some provision would be made whereof
the securities and papers OF the sma
depositor who desires safe deposit az
commodations would be properly SAFE
guarded.