The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-01
ENDORSES BANK BILL
Housed Committee Recommends
Senator Eberhart's Measure

The house committee on banks and
banking yesterday agreed to the provi-
sions of the Eberhart bill, to compel
private banks to submit themselves to
the supervision of the state bank ex-
aminer
The action taken was not unanimous,
and 1t is said that a minority report
will be made TO the house by several
members of the committee who do not
approve of the provisions of the Eber-
hart bill.
The bill considered by the committee
was the Lund house bill. which is ident-
ical with the Eberhart bill, pending in
the senate. Several public hearings
have been held on the Eberhart bill,
and private bankers have protested that
its provisions would force them out of
business before they had the oppor-
tunity of winding up their banking af-
fairs preparatory to reorganizing their
banks as state or national banking in
situations.
The Eberhart bill prohibits the use of
the words bank or banker" by any
business man other than a duly in
corporated state or national bank. It's
immediate effect would be to cause the
incorporation of private banks.
l.. c. Simons, chairman Of the COM
mittee, presented a draft of q substi-
tute bill, drawn at the suggestion of a
committee of the private bankers who
have been arrayed against the Eber-
hart bill. II fixed the minimum limit
OF the capital stock on private banks
at $4,000. and placed them under the
supervision of the state bank examiner.
Ii required private banks to submit TO
public statements at intervals as to
their finances, but omitted certain pro-
visions of the state banking law re-
lating to the percentage of their capital
stock and deposits that they should
have on hand, and the proportion that
they are allowed to loan on real estate
security. No prohibition was included
as to the amount of loans that may be
made to any one man.
There was q sharp discussion of the
substitute, its opponents pointing out
that If 1t were enacted into law the
result would be two classes of state
banks. P NJ. Kerst, state bank examin-
er, was quoted as opposed to any dis
tinction in state banks. and the substi-
tute was defeated and the original Eb-
erhart bill recommended for passage.
When the report is made today, it is
expected that a minority report, favor
ing the substitute, will also be made.
In consideration of the bill, said to be
backed by the state treasurer's office,
Of state repositories, ]. G. Lund of
Hennepin offered an amendment that
state money-be deposited only in ma
tional and state banks. He supple
mented his amendment by declaring
that the recent statement of the state
treasurer had shown large amounts of
state funds deposited in private bank
ing institutions, and he characterized
the plan as wrong in practice.
Marcus Lauritsen of Lincoln opposed
the amendment, saying that class legis-
lation would result from the acceptance
of the Lund amendment. He moved to
amend that national banks be exclud-
ed as state repositories. and said that
some of the private banks in Mime
sofa are the strongest in the state. Mr..
Lund withdrew his motion before a
vote was taken. The original bill was
recommended for passage. 1t gives a
preference to surety bonds over per-
sonal bonds in the matter of state de-