The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-22
BANKERS STAND
BY LUND'S BILL
FIRST DISTRICT MEN SPEAK MIND
ON LEGISLATION.
Judge Wells of Preston Defends the
Private Banks and Declares the Pro-
posed Law Is Unconstitutional
Whitmore Of Wabasha Elected Presi-
dent-Next Meeting in Albert Lea.
Special to The Journal.

Special to The Journal.
Winona, Mimi, March 22.-The first district
here last evening with round-table discussion
and business meeting at which most of the
time was given over to discussion OF the report
presented by the committee on resolutions, the
resolution drawing forth the most debate being
one declaring the Lund bill, which has passed
the Minnesota house Of representatives by a
large majority, to be sound and reasonable
banking measure. This was approved by the
bankers, who also declared themselves unalter-
ably opposed to the substitute bill recommended
by the senate banking committee. as it's adoption
would lower the standard Of banking in Mime
sofa. The vote on the resolution was "a to II.
The negative was larger than had been ex-
pected, and was ascribed to the eloquent argu-
ment made by Judge II. R. Wells of Preston
against such action. Judge Wells declared that
the law would be unconstitutional. He said
the bankers Of the state had first organized in
1887 to fight the adoption by the legislature
of that year of law similar to that proposed
in the Lund bill to require the incorporation
of private banks in the state, and that while
the legislature had passed this law it had been
did not receive two-thirds majority in the
legislature, and it had never been enforced in
consequence.
He said the failure of private banks in Min
nesota in the past two years had. been largely
due to heavy land investment that had taken
funds beyond expectations. He said that in the
wave of bank failures in 1898 five to seven
organized banks had failed to one private bank.
vate bankers were an insult. For thirty
years he had had the sign Bank of Preston
over his place Of business in Preston, and he
did not think the legislature could legislate it
away from him now He considered it his
trademark Of which he should not be despoiled
unless he shown to be unworthy. The SEN
ate committee had killed the Eberhart bill, and
this agitation for similar requirements thru the
Lund bill should now be dropped or If such
measure passed it should be made applic-
able to banks to be established in the future
those existence
Joseph Chapman Jr., who was conducting the
round table, replied at some length to Mr.
Wells, reciting the resolutions adopted at the
state bankers convention at Lake Minnetonka
last summer declaring in favor of such legis-
lation. pointing out how such compulsory incor-
poration Of all banks in the state would be
safeguard to depositors.
Judge Wells denied that the agitation for this
law came from depositors.
o. II. Havill of st. Cloud, president of the
State Bankers association favored amending the
present banking law that the capital stock
Of state banks need not be more than S., 900,
as he declared there were private banks in
small localities where a bank with a capt.
tai Of $4,000 could not pay interest on its
Investment.
Several others spoke on the question, but ow-
Ing to the lateness of the hour and the fact
that the banquet was waiting, the debate was
cut short and the vote taken with the result
above noted.
Another resolution was adopted declaring in
favor Of sufficient appropriations to carry on the
work of the bank examiner.
The following officers were elected: Presi-
dent, L. Whitmore, Wabasha: vice president,
George Pfeherkorn. St. Charles; secretary treas
executive committee l.. l.. Bennett, Owatonna,
and o. M. Green, Winona; member state ex-
ecutfve council, A. W. Laird Winona. The next
meeting will be held at Albert Lea.