Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-04-17
NO BRANCH BANKS.
state Auditor says They Can Not
Opcrate Without capitalization.

state Auditor says sIsHeS SAH 49,
Operate Without capitalization.
Des Moines. April 17.--After severa. +
months of discussion. the state audlter5I
has decided that branch banks can not I
b. operated under the banking laws OF \
Iowa. The question was raised because
Of a bank fight i'll Davenport. The Scott
County SAVINGS Bank and the DaNen-
port Savings Bank We're running 4 footf
race il. the matter of deposits. The
Scott county bank conceived the bright
idea of starting branch down street.
right under the nose of its rival With
the idea OF getting a lot of the latter's,l
business ard deposits Accordingly a
room was reDted next door to the Dav-
enport Savings, and a branch bank
opened. 1t didn't have any separate
capitalization, and was NOT paid much
attention by the Davenport Savings.
I3ut after a time it began to gather in
deposits which the Davenport Savings
l5consideret. Nero in its right and then
the trouble began. TIL Davenport Saw
ings protested that the law didn't allow
1.-The right to open branch banks; the
Scott county Savings people smiled and
| kept on raking in the deposits. Then
| the Davenport Savings appealed to the
auditor of state, demanding that the.
ibranch bank be closed. The auditor.
1 like other state functionariss, was les-i
lurely about acting and the debate con-
ltinued ell fall and winter. The auditor
1 didn't want to close the bank il he could
avoid 1t, and the Davenport Savings
finally announced that il branch banks
iEwere in order9it would have one of it's
Town. 1t proposed to get even by open
Ting branch institution next door to the
i Scott County Savings. This brought
/ the question to position where a rul-
ling was made necessary, for other Dav-
5Ienport institutions We're getting inter-
Tested. The chief industry in that town,
\ as is we'll known, Is depositing money
in banks. The current conception of
Life in Davenport-and 1t is fully borne
out by the bank statements from there
lis that there are two classes of people,
bankers and bank depositors. Ore class
spends all its time receiving money and
writing certificates of deposit, while the
other is Familiarity pictured as doing
nothing in particular except to lug rolls
lof bills and sacks of coin around to the
y banks and receive time certificates. Oc-
OCCASIONALLY both classes vary the monot-
! ony by declaring orreceiying a big divi-
4 dent and going into a. saloon to drink a
few beers.
\ But the Scott County Savings bank
scheme, as explained. was worrying the
a financiers. Every bank was figuring on
a branch and kicking to the state au-
ditor for a ruling which would make
branches unnecessary and irregular
Both sides wanted to drag the matter
into the legislature and get legislation
either for or against branch institutions
But the legislature was worried over
Chris Millers music bill. the barber bill
and sundry other grave affairs Of state
and didn't have time to mix. So It final
] ly adjourned without action and the re.
sponsibility was thrown back on the au-
ditor. Yesterday q letter was sent to the
Scott County Savings bank. which set
ties the matter unless 1t shall be taker
into the courts. The bank Is informed
that it must either capitalize its branch