The times. (Owosso, Mich.) 1882-1897, 1897-01-08

thew are valIeless il they do not extend
far enough to afford the legislature a th
lutely safe material from which 20 gamer
the correct deductions upon which the
regulation of corporations is paseu. Inc
day of absolute reliance upon compeu-
tion especially between transportation
lines, is passed and the day OF the trust
and the combine is here. and the legislature
ns must the
fully is to swindie successfully. The peo-
P on at re the erea Il Of their
tives and all Of the facts relating thereto
should be gathered by the state an ia piaced
the state free of technicalities. informa-
ton is education and private publications,
II it is the duty of the state to educate
children, Ii is likewise the duty OF the state
to inform the people.
statistics, 1t Is required to know to-day
the earning capacity OF any given railroad
Mum rafs Of P9re ~ Cannot be obtained
from the public reports of the state, sur
prising as 1t Is. because the number OF
passengers other than employees hauled
on passes is not shown in such reports. Yet
passes are being regularly written by rail-
United states Observation-Disclosures and for 9th,
er public servants whose good will is VAL
liable to the roads. Certain classes of
called influential people, inclusive of GER
tain newspaper publishers, obtain passes.
So, too, the public statistics do not show
the amount of money expended by rail-
roads for the maintenance OF lobbyists at
this capitol Actual earnings Of roads do
not show their earning capacity by any
means and passes and the money main
tenance of lobbyists are not all the lack
ing figures of the problem, the solution of
management. growing out or the ex-
ploitation of watered stocks and bonds, Is
running the railroads and checking the de-
velopment of the earning capacity of the
state OF Michigan. Actual value of roads
and rolling stock and actual cost or opera
AS for freight rates, they are at the option
of the companies either to raise TO ex-
brilliant figures for occasions or speeuia,
figures intended to ruin a competitor or
favor the monop99istic designs, Of ship, ship,
fail in following the changes.
Coercion OF Electors.
AS guard against coercion of voters; a
provision for the safeguard of the ballot:
dence of the voter and the purity of cleo
tions, / would recommend that a penalty
be provided by an act Of the Legislature
severe enough 10 prevent corporations OF
in elections.
Fish Propagation.
recommend that the legislature, at its
coming session, pass such laws as may be
needed to increase the productiveness of
the fisheries and maintain their benefits
for future generations. An act should be
and imposing a severe penalty for the
taking of small fish; a close season should
license to be laid on the boats and nets
similar to the one now in force in Canada,
and income derived from such licenses
must not only maintain the fish commits
sion in their work of artificial propagation
as at present established, and its enlarge
ment in the future to It's fullest possibiIi-
ties, but at the some time provide sub
stantial revenue for the state.
Banking Department..
While 1 believe that most of our state
banks are well managed, and in good con-
dition, still the lessons taught by the fall
ures during the past two years should
not be unheeded or forgotten, and 1 feel
that | cannot too strongly urge attention
to this subject.
From the report of the commissioner on
banking, it appears that there are now up
wards of 40 state banks and three trust
companies in existence in our state with a
liability to depositors of $95,000,0oO.
This Is three times the number shown
by the first annual report and over twice
the liability to depositors.
The severe strain of the past three years
ties of those charged with the administra-
ton of banks, and has developed some
weak points in our banking laws. During
have failed. In the city of Lansing alone
three state banks failed, swallowing up
nearly 100000 of depositors' money. The
cause of these, and in fact nearly all bank
failures, may be distinctly traced to the ex-
cessive loans made to the officers of those
in which these officers are interested. 1t
is hardly necessary to add that most of
these loans were made in violation Of the
law or by evading 1t.
1t seems to be fact that too few bank
directors understand banking and most Of
them find il easier, at least when times are
good, to leave the management of the bank
with its cashier or some other one officer.
Something certainly should be done that
with the affairs of the bank and thus pre-
vent mismanagement for which they are
morally, and should be legally. RESPONSE
BILE. The quarterly reports, which are now
required to be made to the commissioner,
should be verified by the oath of all those
who are required to sign the report and the
oath should contain a statement that they
have personally examined the books and
assets of the bank and that from such ex-
statement. signed by them is true in SUBJ
stance and In fact. 1t should be made OBJ
ligatory upon each bank to require from its /,
cashier or treasurer such bond as shall
be approved by the banking commissioner.
Whenever a cashier or treasurer shall,
without authority shown upon the records
of the bank, discount or cash any nego-
table paper or security of any kind, 1t
should be regarded and treated as an un-
appropriately punished. A full and com
plete record Of the actions of the board Of
directors direct, relative to loans and DISCOUNTS
signed by all those present. There is alto
gether too much red tape in the manner Of
In this country where sudden fortunes
are often made by some fortunate specu-
lative enterprise, the temptation to make
unsafe and illegitimate investments with
overcome. Severe punishment should be
melted out to those officers and managers of
banks who are thus led to betray their
trusts. Business prosperity depends upon
sound banking. Without 1t we must al
ways expect to pay a higher rate of inter-
est than our business will warrant
What have said relative to banks ap-
plies with equal force to building and loan
associations. Savings banks, pure and
simple, with no capital stock-the de-
positors standing in the relation of share
holders to the extent of their deposits and
earn money for shareholders and depos- :,
itors, too. They are enabled to make very
Investments. AS there is no
incentive to make great profits, such insti-
tutions are obviously in the interest of de-
positors, to whom reasonable dividend
can be paid. ] recommend that our gen.
eral banking laws be amended to admit
Of such societies for savings in Michigan.
Inheritance and Income Taxes.
I am in favor Of an inheritance tax and
an income tax. earnestly hope you may
see your way clear to provide for them.
Point in state Finances.
At H.