The Montgomery advertiser., 1901-08-21

Hinson. Weatherly,
 Hodges, Whiteside.
 King, Wille.
 Kirk. Williams (Elmors).
 So the Article was adopted.
 The President-The Article will be referred to the Committee on Order, Consistency and Harmony of the Whole Constitution.
 Mr. Eyster-I desire to offer a peti- tion, to have it read and referred.
 The President-The gentleman from Morgan desires to offer a petition to have 1t read and referred. The Chair hears no objection.
 The Secretary read the petition as follows:
 To the Delegates to the Constitutional
 Convention from Morgan County,
 and to the Honorable Constitutional
 Convention, Montgomery, Ala:
 Dear Sirs-We respectfully represent that whereas, the Railroad Commission appointed by the Governor and paid by the railroads has not proven satisfac- tory to the people. and whereas, the shipper and consumer should have some representation in the naming of rates and making of rules by what is other wise alien and arbitrary powers. That whereas. the express, telephone, tele- graph and railroad franchises are giv- en by the State. the power of these franchises to tax should be limited by the State. We therefore request that your Honorable Body will give the State Commission, elected and paid by the people and place all franchises. which have power to tax. within their review.
 F. H. Pointer, Ferris and Pointer. grocers; s. J. Philipson, Roy A. Brown, John A. English. J. B. Mitchell, H. H. Skepp and Co.,. W. J. Nesbit and Co. J. 'H. Patyens, F. A. McGough, Wm. IA Ayeres, A. Spillinger, E. Lyons, John L. Brock, Brock and Spisht wholesale grocers; Samuel Tyler, M. E. Woodward, H. Cartwright, z. Lin able, Max J. Cohn. B. Spellberger and co. J. $. Patterson, J. Black, J. A. Nelson. J. Goodman and Co.,. w. "
 Littlejohn G. D. Williamson, vii. Hanson and Echols, H. w Garnett wholesale grocer; E. D. White, general merchandise.
 MT. deGraffenreid-If 1t is in order now-l believe that We have finished the calendar-I desire to make a mo- ton to recall from the Committee on Banks and Banking an ordinance No. i26' which was referred to that Com mittee on the 20th day of July. The ordinance is as follows: Amendments to the fourth section of the Article -A0A NNOPNCu Oll DdIlhS ana Bank ing: Strike out of Section the words. shall for such notes and depos- its and insert in lieu thereof the fol- lowing words: The purchasers of ex- change from the bank, and all persons | to whom the bank Is Indebted for the proceeds of notes, bills of exchange and other claims collected by it shall for such notes, deposits, exchange and col | lection
 l will state for the information of the Convention that Section 4, referred to here, is the identical section which is numbered 17 in the old Constitution which provides that the holders of bank notes and the depositors who have not stipulated for interest shall be en- titled, in cases of insolvency, to pref erenCe of payment over other creditors Now, that was the Constitution of 1875 and the section unchanged has been brought forward into the new Consti- tuition. After this section had been adopted by this Convention, attention was called to the fact that under Sec tion No. 17 of the old Constitution, un- der the Article of Banks and Banking, hardships in some instances occurred which skohld be corrected by this Con ventiOn. The reason why the old Con sttutiOn provided that notes and de- positOrs without interest in cases of insolvency should be preferred above all other creditors, was because of the peculiar trust character of the indebt- edness. Now it has been ascertained since the adoption of that Constitution that there are other debts which may be owing by a bank when it becomes insoIvent, of as high a trust character as the debts due depositors without in terest and those debts are undertaken to be provided for by this amendment which I offered to the section after the section had been adopted. For in- stance. a merchant in Louisville draws draft upon a customer in Montgom- cry. The draft comes to a bank here for collection. It is not intended for deposit, it is intended that that bank shall collect that money and remit it in due course of business to its cor respondent in Louisville for the benefit of the drawer. The money is collected and the bank goes into insolvency be- fore this money has been remitted. Under the law as 1t stands, under the old Constitution, and under the law as it stands now under the new Constitu- tion, that creditor, occupying as high a position so far as the trust is con cerned as a depositor without interest, is without a remedy. My attention was called to a fact by a gentleman from Dallas, where they recently had fail ure of bank, and where money was collected the day before the insolvency became known, and those collections went into the bank for the benefit of depositors without interest. The same is true with reference to those who trade with banks in the purchase of exchange. As an illustration, in the city of Mobile a woman walked into a bank one day and bought $1,50O of ex- change. The next day receiver was appointed. and that receiver telegraph ed to the New York correspondent not to pay that draft. What was the re- sult? The draft was not paid, the wo- maj. lost her money. and the money went to. the benefit of depositors with out interest. This is d matter in which have no interest, but it Is an evil which 1 think the Constitution should provide for, and for that reason I move that this amendment be recalled from the Committee on Banks and Banking.