The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-01-20
SENATOR cLAPP's NEW BILL
AIMS TO DISTRIBUTE THE
FUNDS OF STATE.
Prohibits Any Bank From Getting
More Than Amount Equal to -
q
Its Capital Stock.

state funds will be broken. Under the
provisions of the proposed bill, the
state treasurer would be forbidden to
deposit in any single bank any sum
larger than the total amount OF the
paid-up capital stock of such bank. A
refusal or failure to obey this act
would work a forfeiture Of the treas
urerss once. sssksE = *&Nf4tsE
The practical working of this bill
would be to distribute the state funds
among all the larger banks OF the
state. There might remain with the
lord combination. which controls the
new treasures ONCE. eas he has in
the past. some opportunity for obtain
ing concessions from the banks which
were given a portion of the state funds.
but~Lord's monopoly would be broken.
1t is claimed for Senator Clapp's
bill that the measure meets with the
general approval of the banking inte-
rests of the state. They are anxious
that the state funds should be distrib-
uted for much of the money lies for
some time without investment in the
banking houses.
The declaration Is made that during
the past year alone, Lord has made
$4,000 profit on the state funds en-
trusted to his bank. It is well known
to bankers that he has loaned out
the funds to other banking institu-
tons, charging them a small inte-
rest on the money given into his pos
session. Whatever he can use is
loaned through his own bank and the
funds granted other institutions is
subject to call without notice.
Lords sole fight during the last cam
paign was to control the state treas
urer's Office. To obtain the Thurston
county delegation he stood as a can
didate for governor, an ambition that
he put aside easily when the delega-
ton reached Tacoma. He turned his
delegation into the combine that
named the successful ticket, and was
awarded the treasurer. W.. .',4
Originally Madge had intended to
name J. OBJ. Scobey, but two news
paper publishers who issue republic
can papers declared before meeting
of the steering committees that they
would not support Scobey. George
Mills was then induced to take the Of
fee.
During the campaign the bankers
wanted to defeat Lords candidate, but
the effort involved too much political
strategy and uncertainty. They did
not go through with the fight as had
been projected. The introduction OF
the bill yesterday shows the bankers
methods Of circumventing Lord.
OF course this bill does not break
Lords control of the state treasurer's
Office. There is nothing in it to pre-
vent him as dictator of the Office tc
insist to other bankers that if they are
to get a share of state funds he must
be let in for a part Of the stock. Incl.
dentally he could increase the capita
/ Of his own bank to get larger share
M tot de- $50 .f-e,e4
A hard and fast organization Of out.
| side banks would succeed in keeping
Lord out of any outside institution.
and his treasurer would be compelle,
to make a distribution Of the funds
Lord has fought hard and he can b,
depended upon to resist this measur,
and it's enforcement.
Senator Clapp's Bill.
The bill introduced by Senator Clap
/ reads:
Section 1. Section los Of Hills gen
eral statutes and codes of the state o
Washington (being section 1856 of Ball
| anger dilIiOtdteU COUeS anu STATUTES
is hereby amended so as to read a
follows:
Section los >(section 1867. 1t sha
be the duty of the state treasurer:
Il. To receive and keep all money
of the state not expressly required
law to be received and kept by som
other person: Provided, that the stat
treasurer shall not keep moneys of tn
state. on deposit with any nationa
state or ether banking association,
an amount exceeding at any time, tt
total amount of the paid up capt.;
stock Of such bank or banking asse
CESSATION, and a violation of this pro
viso shall work forfeiture of IL
treasurer's office;
"2. To disburse the public none!
only upon warrants drawn upon Il
j treasurer by the state auditor. in Il
order of their number, date and Issue
20. To keep a just. true and con
prehensiye account Of all moneys r.