The Lewiston teller. (Lewiston, Idaho) 1900-1905, 1905-02-07
DRAFT OF A
BANKING ACT
Provisions of important Bill That
Financiers Have
Agreed on

the state bankers association. includ-
ing B. F.. O'Neil, G. w. Thompson.
Mentie B. Gwinn. +. +. Johnson and
Frank w. Kettenbach, Friday, held
conference with Governor Gooding on
the proposed bill to govern state banks.
A rough draft of the bill was gone over.
A copy OF this draft has been referred
to attorneys to be embodied in the
measure that will be presented to the
legislature.
After the conference Governor Good
ing was asked for an interview setting
forth his views of the proposed bill.
The governor said: Il have not yet had
time to go into the matter thoroughly,
but so far as I have considered the
draft read to me feel free to say that
1t gives evidence of having been pre-
pared With a desire to give the state
FIRST class banking law. Until I have
examined every phase of the draft I
would not feel justified in making any
further statement. I desire to add,
however, that the bankers who have
met here entered upon their labors and
conducted them In a most commendable
spirit, having in view the very best
legislation possible on the subject, and
our conferences have been Of most
pleasant nature"
Statement a. to the Bill
President O'Neil has given out a
statement covering the main points of
the bill as agreed on. He said there
were some details to be worked out by
the attorn VS. but the essential features
of the measure were embodied in his
statement. He said the bill would
cover every phase Of banking and that
every possible safeguard for all inter-
ests had been thrown about it. 1t pro-
vides that any number Of persons. not
less than five. may incorporate to en-
ter the banking business. The corpora
ton must own property in proportion
TO the population of their locations, all
the way from $4,000 in places of 1000
TO 5000 up to t100, 900 for a population
= Of $4,000 or over. Such property must
be in money. commercial paper, bank
xunencumbered lots on which they
stand. Banks already organized are
given a year in which to conform to
the provisions OF the bill.
At least SO per cent OF the capital
stock must be paid up on Incorporating
and 10 per cent Of the balance must be
paid monthly until the entire capital is
paid. The shares OF stock are classed
as personal property. Banks are pro-
shibited from purchasing their OWL
stock except where necessary to pre-
vent loss upon, debts previously con-
tracted in good faith. Books must be
kept showing the number OF shares held
by each stockhQlder and in. all suits
such books shall be deemed prims
aacie evidence. Each stakeholder is
held liable up to the par value of hi.
stock 1t is made felony for any banl
officer to accept deposits knowing thu
bank is insolvent.
Covering the Question Of Loans
One section OF the bill as agreed upoi
reads. 1.-THE total liability to any banl
of any person or persons or OF an.
company. corporation or firm for none
loaned, including in the liabilities O
the company or firm the liabilities o
the several members thereof. excep
special partners. shall at no time ex
coed SO per cent of the capital surplu
and undivided profits. of such bank: bu
the discount Of bills of exchange draw
in good faith against actual existin
values and the discount of commercis
the persons negotiating the same sha
not be considered as money borrowed
provided, however. that the foregoin
limitation shall not apply to loans upo
real estate brother collateral securitie
representing actual value or loans mad
on warehouse receipts and bills of lad
ing"
Careful provisions are made govern
ing savings banks. which are author
E.ed to be conducted in connection wit
state banks.
The bill contains a provision prohit
sting individual firms or trust compar
les from engaging in the banking bus
ness until the capital requirement Il
corporations organised under the bi
II met. but it is provided that the a.
shall not abridge or annul any of IL
special powers or privileges granted {
trust companies doing business und,
che existing trust company law. n
partnership or individual note or obi
cation Is permitted to form a part
the banks assets, and no bank onici,
IS permitted to loan to himself any
the banks funds without the approx,
OF a majority of the directors and IL
transaction must be made of recor
Directors are made liable for any CO
fusion in this connection to the detr
snent OF the bank.
Duties Of Banking Commissioner
The bill provides for the appointmei
by the governor OF a bank commits
sioner or examiner. who must have ha
at least three years. practical bankin
experience. No bank official or en-
picye or other interested party is ell
gible. He is to furnish a bond of $5e, OF