The evening world. [volume] (New York, N.Y.) 1887-1931, 1921-02-15
TO CONTROL EXPRESS AND
STEAMSHIP COMPANIES

TO CONTROL EXPRESS AND
STEAMSHIP COMPANIES,
The first measure to be introduced
by Senator Gothic calls for the repeal
OF section % of the General Corpora
ton Laws which removes from the
jurisdiction of the State Banking De-
partment express companies, steam
ship companies and telegraph COM
panies and also some other concerns
which are protected ambiguously.
That repeal bill is ready and will
probably be put before the Senate be-
fore the close of to-day's session. It
will be followed by measures with the
following purposes:
First-That persons engaged in the
transmission Of money without au-
thority Of law may be proceeded
against in the criminal courts. at
present the only penaltyNprovided Is
torfeiture-that is, ali the State De-
partmcnt OF Banks can do Is to close
them up.
Second-That the capital and sur
plus requirements Of private bankers
be made the same as those Of in.or-
porated banks.
Thiu-That savings banks, which
are now planning TO open branc hes in
the foreign quarters OF all New York
cities, be empowered 10 transmit money
to foreign countries.
Fourth-That all private banks be
gradually converted into Incorporated
banks under the provisions of a law
which has been adopted in Illinois with
highly beneficial effects.
Thin lppigla tinU outlined ohCN-n
not interfere with legitimate banking
business. IL will not endanScr the
standing or profits Of legitimate pri-
Vate banks because 1t allows them
an opportunity 10 incorporate as
great many have done within recent
years.
It is TIC consensus OF opinion OF
all agencies and individuals that have
Investigated the private banking sys-
TEN of this state in the past ten
years that 1t has OutgTown its use
fulnesg. There was a time when the
private bank, conducted by foreign
language banker, undoubtedly was a
convenience to immigrants.
The system led to abuses which
called for Il searching investigation
as long ago as 1909. A committee, of
which LOUIS Marshall was Chairman,
was appointed by Gov Hughes to
look into the matter Of immigrant
exploitation in many OF its branches.
The committee submitted a volu-
minous report which, apparently.
never reached the Legislature. At
any rate, nothing was ever done in
the way Of legislation along the lines
suggested by the report In 1914
laws were passed which, for the first
time, put private bankers under the
jurisdiction Of the Banking Depart
ment But the laws have been so
construed by the courts that they
are OF little value in reaching the
sort OF robbery which The Evening
World has exposed.
Agents Of express companies and
steamship companies have used and
are using the opportunities given by
such connections to transmit money
or offer to transmit money-on
their own account, Tho Evening
Worlds programme OF legislation,
Endorsed by authorities on the sub
ject, would not take away from the
express companies or the steamship
companies authority to transmit, but
Il would safeguard these institutions
as well as the public. Just why for
eign corporations should be empow
cred to operate in New York as
money tn nsmissiOn agents outside
the Jurisdiction of the State authori-
ties is not plain.
Other abuses in connection with
immigrant exploitation which have
been given widespread publicity by
The Evening World in the last two
months Will be taken care Of In order.
Methods are under consideration.
The chief object Of contemplated
legislation Is TO give the properly
constituted authorities OF the state
the power TO enforce the laws against
swindlers, who are now apparently
immune,