The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-02-20
Missouri Loan Associations
Make Kansas Laws.
Foreigners Work Directly
Through Senator Crossan.
KANSANS TURNED OUT
Without Being Given a Hear
ing in the Senate.
Charged With Trying to Kill
All Legislation
When They Really Want New
Laws Enacted.
HOW 1T is MANAGED.
Missouri Lobbyists Prompt
CrOssan to Defend the Bill.
Senate Shows Scant Courtesy
to Kansas Associations.

The senate this week will resume the
consideration of Senator Crossan's bill
placing loan associations doing bust
ness in Kansas under the supervision
of the state bank commissioner and one
which carries inestimable benefits to
nonresident corporations of this char
acter and, if passed, will work serious
hardships upon associations organized
in Kansas.
Paid lobbyists representing Missouri
corporations sat beside Mr.. Crossan
during the consideration of this bill last
week and worked in the amendments
and provisions which carry the burdens
for Kansas corporations. The bill pro-
posed by Crossan helps nonresident
associations and Injuries Kansas corpor-
atoms, but this is one of the freaks of
legislation which the people may some
time rise UP and hurl from the high
places.
The Kansas associations have an
nounced their willingness to abide by
any reasonable legislation, but have Ia
bored under the disadvantage of haV-
ing no active champion In the floor OF
the senate. Neither have they had an
opportunity to participate in the ar
rangement of the bill. The outsiders
have prepared the bill and Senator
Crossan. who introduced it, insists upon
its passage as it was given to him.
This condition has been responsible
for a turning down of the representa-
tives of the Kansas associations. When
they have made requests to be heard
and asked for the privilege of proposing
amendments to the bill they have been
met with the statement that their pur-
pose is to drive the foreign aSsOcfa-
tiOEs out of the state, even in the face
of the fact that the kanSanS nave
stated repeatedly that they desire to
have a law based upon reason passed.
But the friends of the outsiders, doubt
less Influenced by the lobby, have de-
clined to give the kansanS a nearing
upon any middle ground and seem de-
termined to pass a law which will bene-
fit the Missourians only.
The latter have been represented IN
the lobby by NJ. H. Wood. secretary of
the Mercantile Mutual of Kansas City,
H. T. Blair, general agent of the Co
Operative Building and Loan associa-
ton of Sioux Falls. S. d, and F. E.
Carringer of the Midland Building and
Loan association of Denver.
The controversy has really been sole
ly on the question of under what con-
ditions foreign associations should do
business in Kansas. The domestic as
sociations have rather insisted on the
same provisions that Missouri has, re-
quiring deposit of 100000 in cash or
bonds or in their own mortgages.
1t is probably not generally known
that Kansas associations can not do
any business whatever in Missouri, and
the Kansas associations have thought
that if Missouri desired to build a Chi
nese wall around the state Kansas
should treat them in the same manner.
Deposits are required. however, in such
states as Ohio, Illinois, New York and
Wisconsin.
The Crossan bill in the senate is re-
garded as the bill of foreign associa-
tions for the reason that it allows them
to come into the state upon a deposit
of $4,000 in bonds or mortgages, or in
lieu thereof to give a bond signed by
three competent persons, or to give a
guaranty bond.
The most radical change in the senate
bill has been to place building asso-
Citations under the usury laws, a thing
that no other state has ever done. As
sociations will also be subject to the
most rigid inspection by the bank COM
missioner; in fact, he has been given
almost autocratic power.
All the complaints against building
associations have been against those
not founded in Kansas, and vet do
mestic associations have had to bear the
odium
House bill No. $50, as reported by the
banks and banking committee has the
approval of the domestic associations |
this committee having given patient
hearing to all interests. It seemed to
be the idea of the committee to have a |
bill that would be practical. They also
treated the representative of the as
Sociations of the state in a business
like manner believing that the men
who have managed associations and |
not lost a dollar for their patrons are
not only entitled to consideration but
that their experience ought to be very
Valua BILE.
In all probability. if the Crossan bill |
passes the senate in it's present form.
1t will be killed in the house, and the
house bill, which does not seem to be a |
Missouri bill. substituted.
CRrTICISEs MR. HOLMES