Salt Lake Tribune | 1906-01-10 | Page 5 | Chicago Banks Lose Millions of Deposits

CHICAGO BANKS LOSE MILLIONS OF DEPOSITS Outside Hanks Take Advantage of Check Toll to Solicit Business. CHICAGO, Ian 9 The transfer of many millions f dollars of deposits from Chicago banks to the banks of Philadelphia, Pittsburg. Kansas t'lty, Milwaukee and other cities yesterday developed as a striking mode of retaliation re-taliation which is under consideration by Individual members of the Illinois Manufacturers' association to fight Ihe tax on the collection of out-of-town checks instituted by the Chlcag-j Clearing Clear-ing House association. It was ftated by members of the Manufacturers' organization that this kind of reproof valiant had not been devised by th; members themselves, but had originated with the banks of the other cities nam. d, which hud boon quick to Improve Ihe chance to Increase In-crease their deposits at the expense of Chicago Inst llutif)-.!: See Their Opportunity. InvoatiftMtioiiN .showed that for several sev-eral dr.ys past a number Of banks out- J Eld of Chicago had been In communication communi-cation with various local firms repre- I sented in the Manufacturers' association, associa-tion, both by correspondence anil through personal reprefentallves. with a view to securing a share of the banking bank-ing business of such firms handled at present bv Ohicano banks, The position taken by such outside banks In most cases Is said to be characterized char-acterized by u willingness In dear all checks sent them without toll, provided pro-vided they wen given a share Of the deposits at present held by Chicago Institutions In-stitutions Question of Legality. Attorney John J Herrlck for the Chicago Chi-cago Clearing-House association said he probtibly would presi nt his opinion as to the legality of the proposed toll on checks today or tomorrow, the Question Of legality having been raised by the Illinois Manufacturers association associa-tion last Thursday. in the event that the Clearing-Uouse association declines tq recede Cram its decision that all Its banks charge for the collection of out-of-town . hecks. Attorney Levy Mayer has been authorized au-thorized to take steps to combat the charge nnd to begin legal action if necessary.