The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1897-01-09

they are valueless III they do not extend
Ia, Iar enough to anord the legislature abso-
the correct deductions upon which the
regulation OF corporations IL based. The
ton, especially between transportation
lines, ~ passed and the day OF the trust
and the combine Is here. and tholegislature
pie OF the state and the encroachmenfs OF
the trusts and combines To hide success
fully Is TO swindle successfully. The poo
pie are entitled to all OF the facts i'm reia-
ton TO the creations OF their representa-
tives and all OF the facts relating thereto
should be gathered by the state and placed
In the hands OF each and every elector OF
the state free OF tcchnicalltieS. Informal
ton Is education and private publications.
IL IL Ia the duty OF the state TO educate
children. II is likewise the duty OF the state
10 inform the people.
IL. for example OF the Importance OF such
statistics, II Is required 20 know to-day
the earning capacity of any given railroad
In Michigan upon which TO base n maxi
mum rate OF fare II cannot be obtained
from the public reports OF the state sur
prNlng as Is. because the number OF
passengers other than employees hauled
on passes Is not shown I'm such reports Yea
passes are being regularly written by rail-
road attorneys for United States senators.
United States representatives 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 moi show
the amount or money expended by rail-
roads for the maintenance or lobbyists at
this capitol, Actual earnings OF roads do
means; and passes and the money main
tenance OF lobbyists are not all the lack
ing ngures OF the problem. the solution OF
which would show conclusively that bad
management. growing out OF the cx-
ploitntion or 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
or the companies either TO raise 20 cx-
brilliant figures for occasions OF specula-
tion in the stock market or to reduce TO
figures Intended TO ruin competitor or
favor the monopooilstic designs OF n ship
per. and the ordinary statistician must
fail I'm following the changes.
Coercion of Electors.
As n guard against coercion of voters:
provision for the safeguard OF the ballot.
an additional assurance OF the indepen-
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 a
public character exerting undue influence
In elections.
Fish Propagation.
| recommend that the legislature. ut 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
passed charging the mcSheS or tho nets
and imposing a severe penalty for the
taking OF small fish; a close season should
be made TO protect the spawning fish. and
license TO be laid on tho bonts and nets
similar 10 the one now In force IA Canada,
and income derived from such licenses
must not only maintain the fish commits
sion In their work or artificial propagation
as at present established, and itg ENLARGE
ment In the future TO its fullest possible
ties. but at the some time provide sub
Btantial revenue for the state.
banking Department.
While / 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 unhecded or forgotten. and l feel
that ] cannot too strongly urge attention
to this subject.
banking II appears that there are now up
wards OF 10 state banks and three trust
companies IN existence In our state with
liability to depositors OF s95,OO0,oO0.
This Is three times the number shown
by the first annual report and over twice
the liability to depositors
Tho severe strain OF the past three years
has increased the burden and responsible
ties OF those charged with the ndministrn-
weak points In our banking laws. During
the period mentioned number or banks
have failed. In The city of Lansing alone
three state banks failed, swallowing up
nearly 81 100000 OF depositors' money. The
cause of these. and In fact nearly all bank
may be distinctly traced 20 the ex-
cessiye loans made 20 the officers OF those
banks and TO the various business concerns
In which these officers are Interested. II
Is hardly necessary TO add that most or
these loans were made I'm violation OF the
law or by evading H.
IL seems to be fact that too few bank
directors understand banking and most OF
them find II easier. at least when times a-e
good. TO leave the management or the bank
With It's cashier or some other one officer.
certainly should be done that
will make bank directors moro familiar
with tho affairs OF the bank and thus pres
vent announcement for which they are
and should be legally, RESPONSE
BILE. The quarterly reports. which are now
required TO be made TO tho commissioner,
should be verified by the oath OF all those
Who are required 10 Sign the report and tho
oatn should contain n statement that they
have personally examined the books and
assets OF the bank and that from such OK
animation they personally know that tho
statement signed by them ~ true I'm sub
stance and In fact. IL should be made OBJ
gatory upon each bank TO require from its
cashier or treasurer such bond "a shall
be approved by the banking commissioner.
Whenever q cashier or treasurer shall,
n the bank, discount or cash any nego-
liable paper or security OF any kind &c
should be regarded and treated as an un-
awful use OF the money In the bank and
appropriately punished. A full and COM
,lete record Of the actions OF tho board OF
directors relative 20 loans and discounts
signed by all those present There ~ alto
gether too much rcd tape in the manner OF
In this country. where sudden fortunes
ire often made by some fortunate specu-
ative enterprise, the temptation 20 make
Unsafe and illcgltlmatc Investments with
lcpositors' money IL often too great 20 be
overcome. Severe punishment should be
neted ont 10 those officers and managers OF
,anks who are thus led 10 bctray their
rusts. business prosperity depends upon
ound banking. Without II we must AL
Ways expect 20 pay a higher rate OF inter-
at than our business Will warrant
What have said relative 20 banka APP
lies with equal force 20 building and loan
associations Savings BANKS, pure and
imple, with no capital stock-the de-
'ositOra standing IN the relation OF share
oders 60 the extent OF their deposits ana
lroht sharers pro rata-are not obliged TO
arm money for shareholders and depoa-
tors too. They are enabled 10 make very
Conservative Investments. AS there ~ no
Incentive TO make great profits. such iHsti-
utions are obviously In the interest Of de-
lositors 10 whom reasonable dividend
an be paid. recommend that our gem
raj banking laws be amended 10 admit
4 such societies for savings In Michigan.
Inheritance and Income Taxes.
I am in favor OF an inheritance tax and
a Ia Hr0.s