The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1901-01-10
CONDITION OF BANKS
Continued from page

hundred dollars to be paid in and an ad-
ditoual two hundred and nfty dollars per |
month for ten morths.
n oueht = - rurther amended 80 that |
the capital stock to he paid IN in cities
Of more than 1900 population and less than
$500 population should he $4,000 on an
similar 20 the present Kansas
law restricting the aggregate loans to four
times the capital and surplus There are
now forty-hve banks with 5000 capital
8uG individual deposits ranging from
S25 OOQ &C. S1600OQ ia each, the Investment
by the stockholders with the legal LA
L-lity-which IN many instances is practi-
cally nothlng-is too small for the volume
OF business transacted and which has no
restriction at present
Section 10 should be amended so as TO
require the bond officers having the
care and handling Of banks funds 20 be
given by some bond indemnity company
the expense 20 be borne by the bank, and
have the bond filed with the bank COM
missioner. The trusted employe Is always
the one who embezz.es tho funds. Bank
directors object 20 requiring bonds be-
cause they employ only those In whom
they have explicit confidence, and where
this section Is complied with Il Is often
done in such a manner as renders the
laws provisions useless
It should 0e further amended so as to
designate the time at 1yhich a stockhold-
ers' meeting shall be held for the election
OF directors, and also the time at which
the semi-annual meetings Of the board OF
directors shall be had. with these p'ovis-
ions the commissioner could send out the
necessary blank forms FOR oath Of direc-
tors and for the reports indicated, ana
would then know that each bank had per-
formed these very important duties. AZ
prescott there Is no uniformity OF dates
large number OF the banks not complying
with these requirements IN any sense
No provision OF the law IS more psrsls-
tently Violated than section 49, and While
the bank commissioner may require a re-
duction OF an excess loan within sixty
days from notification by him, before his
order has been compiled with, In one In
stance new violation Is per0etrated and
which may possibly be done 70 remedy the
Grst
In one addition to the present legal la
hinty. the stockholders ought TO be made
personally liable for any loss occasioned
by an excess loan. This provision might
in a measure tend 10 remedy an evii that
the commission is powerless 20 control
Section 26 ought Go he amended permit
ting the commissioner 70 be reimbursed
for his travelling expenses incurred in
closing insolvent banks from the money
collected IN fees, he paying into the ter
rltorlM treasury any excess over and
above the amount actually expended as
shown by vouchers as now submitted II
Is unjust that one should be reimbursed
IN a territorial warrant paysb'e from two
to three years for cash actually paid out
/ for railroad fares ana hotel bills and he
required to pay into the treasury the cash
/ fees collected. Argument on this PROPOSE
tion is doubtless unnecessary.
Section So should require a personal ex-
animation Of the affairs Of receivers OF in
solvent banks periodically by the commits
sioner and a report 20 the court Of the
condition Of such affairs, with such recon-
mendations as may seem 20 Doe for the
best interests Of creditors
Authority should be given for the en-
Ip'oyment of a deputy by the commission
err AT the rate at which banks are being
increased and with the addition OF new
territory the business OF this office viii
be Increased beyond what any one per-
SON can property attend 70. Al the pres
ent time during the absence Of the COM
missioners on tours OF inspection the office
business Is without oversight or attention
longer than is consistent with a careful
administration of its affairs.
cannot close my report without AT
least referring 20 "a matter that. in my
opinion, should be- remeiled by legislative
enactment
Under our present system Of assessment
and taxation bank capital Is assessed In
many instances TO It's fun book value ae-
cording TO the caprice OF the assessor
while investments IN merchandise, stock
and other property, as Is well known, IL
not assessed at nearly IT'S value. BY re
cent decision OF our supreme court banks
are stopped frcm proceedings in court
10 adjust questions OF this character until
IL n shown that the property has beer
assessed IN excess OF its cash value. II
any case where a proper showing Is made
it is shown that the property has beer
assessed at more than the average value
OF property IN the county, Il ought 20 bs
made the duty Of the county commission
ers 20 reduce tho assessment 90 conform
10 the avorare assessed value.
w S. SEARCH.
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