Evening star., 1937-04-24
AUDITORS STUDY
BANK RELATIONS
Chester Hoyt of Albany
Speaks on Subject at
Session Here.
BY EDWARD c. STONE.

BY EDWARD c. STONE,
Relations between the bank presi-
dent, the directors and the auditor
were taken up at the second days ses-
sion of the National Association Of
Bank Auditors and Controllers at the
Wardman Park Hotel this forenoon.
The speaker on this subject was
Chester w. Hoyt, controller, State
Bank of Albany, N Y, with Herman
L. Pritchard, Second National Bank,
Paterson, N. j., presiding.
L. R. Pennington, special agent
accountant, Federal Bureau of Investi-
CATION, Department of Justice, was the
second speaker, his subject being,
Bank Frauds and Defalcations'
Six subjects of deep concern to big
banks were discussed last night at a
forum led by Arthur K Schulz, Chase
National Bank. The subjects in
cluded the definition of control, how
can broader recognition of control be
obtained, rotation of clerical stats,
virtues and vices of instruction
manuals, distribution of expenses in
Cured by one department or office to
another and sources of greater income
and extended service
Other Problems Discussed.
Six other subjects of special concern
to the smaller banks we're fully con-
sidered at another group round table,
with w. T. Vandoren, vice president
and cashier, Liberty National Bank,
Washington, presiding. The topics
given particular attention covered the
value of an actuarial system In a small
bank, benefits derived from monthly
reports of operations, advisability of
rotating employees, maintaining of gen.
eral ledger for trust department, daily
collection Of interest in note depart
ments and some of the fields for
further extension of banking service.
Bankers at both forums heard many
constructive ideas presented. The
convention program was concluded
late this forenoon. Delegates and
guests were to spend the afternoon on
sightseeing tours. The two-day con-
ference will be concluded this evening
with an informal dinner, Strickland
Gillian acting as POSTMASTER. The
guest speaker will be Edward Stone,
an economist who is chief of the COM
munity organization and maintenance
section, management division of the
Resettlement Administration.
Nine special exhibits of Office equip
ment have been on display at the hotel
during the meetings and have drawn
much attention Members of the
auditors section, District Bankers
Association, received general acclaim
from visiting flnanciers for the sue
cess Of the program
Committee Heads Lauded.
Chairmen of the leading committees
included R. Earle Haycock, Riggs
National; William B. Mehler, jr City
Bank; H. Norman Glasco, Union
Trust; Harry L. Downey, Washington
Loan & Trust; Gerald E. Keene, Sec
ond National; Millard S. Yeatman,
Hamilton National; A. S. Offutt, City
Bank; William S. Harris, Lincoln
National; Arthur j. Hamilton, Ma
tional, and Raymond G. Marx, general
chairman.
The address yesterday afternoon by
John Driscoll of Philadelphia on
Comparative Costs and Operating
Efficiency" was read by Paul Williams.
Corn Exchange Bank & Trust Co.,
Philadelphia, the writer being de-
tanned at home on account of illness
The address of H H. Mckee, chair
man of the Washington Clearing
House Association, was considered one
Of the finest made during the con-
ference
A special committee was named to
consider the future of these confer
ences. The committee consisted of
Raymond G. Marx, chairman; Charles
l.. Brown, Baltimore; William E.
Westman, Boston; Millard S. Yeat-
man, Washington, and James H.
Lawrence, New York. The recommen-
dations will be forwarded to all the
cities in the Eastern region and be
acted upon later.
Commercial Loans Increase.
The volume of outstanding loans of
insured commercial banks in the Fed
eral Deposit Insurance Corp. as of
December 81, 1886, was 86 per cent
above that reported for the 1885 year
end, while holdings Of commercial
or "other securities" increased 10.4 per
cent, statistics compiled by the F. D.
I. c. of 1894 insured commercial
banks show.
Despite the increase in these assets
bf F. D. l. c. members, holdings of
United States Government obliga-
tions, direct and fully guaranteed, con-
tinued to increase at much faster
pace, rising lib per cent in the same
period.
Loans outstanding were $l,300,000,-
900 greater, totaling $4,000, 100000 on
December 81, 1895, compared with
tl4,700, 100000 year before and were
higher than they have been on any
previous F. D. I. C. "call date" Dur
ing 1885 loans increased by only
e94 100000.
Heard In Financial District.
Robert v. Fleming, Sidney F. Talia-
ferro, Wilmer J. Waller and E. E.
Mountioy have returned from the
Executive Council meeting of the
American Bankers Association at Hot
Springs, Ark. Mr.. Fleming left Wash
ington last night for White Sulphur
Springs, w. Va, to attend the annual
convention Of Reserve City Bankers.
The District Life Underwriters As
sociation has nominated six directors,
three OF whom will be elected at the
=. May meeting, the nominees being
John E. OBrien. Connecticut Mutual;
Richard w. Griswold, Guardian Life;
Graham E. Wilsin, Massachusetts Mu-
tual; Garland M. Terry, Equitable OF
New York; James A. De Force, Mu-
tual Benefit Life, and H. Gordon Ed
n1onds, State Mutual Life. Those
elected will serve three-year terms
The final session of the public
speaking class. Washington Chapter
American Institute OF Banking, was
held in the form Of dinner meeting
At Wesley Hall. Past and present
-.