Evening star., 1960-11-04
Modification Urged
In Auto Credit Law
Bankers Won't
To Be Excused
From Licenses
By BERNARD GWERTZMAN
star stan Writer

star star Writer
A delegation of Washington
bankers meets with the District
Commissioners today in an ef.
fort to have the recently en-
acted automobile sales resu.
lationS amended.
The bankers are particularly
concerned over a section Of the
regulations which compels all
"sales finance companies" to be
licensed. AS interpreted, these
companies include banks, since
they are Sin the business Of
purchasing instruments Of se1(
curity from one or more acal-
ers."
The Commissioners-only two
will be present, since Robert E.
Mclaughlin is out Of the coun-
try-will be asked to amend the
rules so that banks will not
have to be licensed.
Oficials at the District Build
ing said yesterday that 1t Is Just
as important, in enforcing the
new regulations, for the banks
to be licensed as for finance
companies.
Meeting Informal
Commissioner Mark Sullivan.
jr., said today's meeting would
be an informal one. in which
the bankers would be given Q
chance to air their views. He
said he did not expect any ac-
ltion to be taken one way or the
other today.
The regulations. resulting
from legislation passed in Con-
gress last spring, state that mo
iperson shall engage in business
as a dealer, a saleman. or q
sales finance company unless he
holds a license so to do issued
to him pursuant to these reg
ulations."
The views Of the bankers, 1t
was learned, win follow closely
those expressed by Frank A.
Gunther. president Of the Secu-
rity Bank and chairman Of the
Law and Legislative Committee
Of the Bankers Association. at
an open Commissioners hear
ing on October r.
Mr.. Gunther, at that time,
outlined four main reasons why
the banks objected to being
classed as "sales finance COM
panies" and thus licensed.
These were:
/ /. Banks here are supervised
and examined by the Controller
of the Currency, as well as by
Federal and District 5egisla-
tion. They are effectively su-
lpervised and no useful
purpose would be served by IL
censing them for the purpose
of these regulations" he said.
2. THE banks object to and
submit that there is no justi-
fication for requiring them to
be licensed for one minor phase
of their normal operations, the
purchase of instruments Sc
cured by automobiles, from
dealers. The responsibility
for compliance with these regu-
lations properly belongs to the
originators Of the paper and
:. it can properly be assumed
that the banks Of the District
will not buy automobile notes
originated in the D. c. that on
their face do not comply with
the law and regulations"
Banks Not Accused
3. Banks should not be re-
quired to be licensed for per-
forming one. or more Of the
normal functions Of banking.
A private business, Mr.. Gunther
said, might be licensed for
cashing checks. would it not
be the height Of absurdity to
require the Washington banks
to submit to licensing in order
to continue in the cashing OF
checks? And yet the pro-
mitigation of the proposed
regulations without excepting
banks would set q precedent
for just such a future course y
! 4. Banks in the District
have never been even remotely
accused Of engaging in, or aid
ling and abetting any of the
practices" which the regula-
tions are meant to correct. 1T
is our opinion that the COM
missioners in the PRONUNCIATION
of regulations implementing
this law, have ample discretion
to affirmatively eliminate all
banks and trust companies in
the District from the proce-
dural requirements of the regu-