Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1889-01-02
DEclsIoNIN ILLINOIS BANKING LAW.

OEClSiON I'm llCfNOlS BANNiNG LAW.
! SPRINGFIELD Jan. 1.-The last session
| of the Illinois legislature passed and sub
mitted to a vote of the people an act known
as the general banking law, and at the
| election in November last it was adopted
| by the people by a majority Of nearly 2O0,
| 600, Immediately thereafter several per-
sons in Chicago appealed to the state
! auditor for permission to organize bank
| ing institutions under the act, and that
! officer declined to issue the preliminary
papers upon the ground that the act does
not provide for their organization
| in cities or places whose
| population exceeds 10000. av, Two
or three other important flaws were
pointed out in the law, all tending to
show possible serious imperfectiOns. The
auditor thereupon submitted to the attor-
act, apd solicited an official opinion there
on for the guidance of the auditors office
| IN administering the law. 70.
The attorney general completed his
opinion this evening and it will be deiy-
cred to the auditor in the morning. The
first question relates to the provi-
sionS of the act for the organization
population. 1t is understood the
attorney general holds that provision is
made i'll the act for the organization of
these banks in two classes of places only,
namely: Those OF not more than 5000 pop
ulation with capital stock of not less
than So, 900, and in those of not more than
10000 population with a capital stock of
not less than S50000, and that, rs no other
classes of cities are included in the act, it
was evidently the purpose of the legisla-
ture to exclude all over 10000 pop
ulation from the benefits of the act
The auditor himself originally be-
gan with this construction of
the act. and this led some applicants
from the larger cities to applyto him for
permission to organize in places of 5000 or
10000 and then remove to larger cities to
transact their business. 1t is understood
that the attorney general holds this to be a
means of accomplishing indirectly What
the act does not authorize directly and
therefore that the cities which are exclud-
ed by the fair Interpretation of the act and
can not obtalnthese banking associations by
original organization cannot obtain them
by removals from the smaller class of
cities distinctly specified in the terms of
ten law.
The third interrogatory has reference to
a clause in the act providing that ''all
corporations with banking powers exist
ing by virtue OF any special charter or gen.
eral law of this state shall be subject to
the provisions and requirements of this
act in every particular, rs if organized I'M
der this act" The question on this head
inquiries whether the auditor shall re-
Quire institutions with banking powers
now existing under special charters to
make the reports to him required by this
general banking law. The opinion Is I'M
derstood to indicate that where anything
in this act would conflict with the charter
powers of existing institutions with bank
ing powers they can not be considered as
operating under it unless they elect to
come in and reoganize according TO its
provisions,
The last question relates to the auditors
power to make examinations of existing
organizations with banking powers as re-
uuired to be made of banks hereafter Or
ganized under this new general law. No
Indication is made of what the attorney
general says on this point, but it is in
ferred that he follows the line indicated In
the last preceding question, and holds that
they are not under the law unless they
elect to come in. The text of the opinion
is awaiting with unusual anxiety.