The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1906-01-30
COLUMBUS LETTER

Columbus, o., Jan. 2s.--Two years
ago many Of the banking institu+-
tions of the state maintained a pow
erful lobby at Columbus and succeed
ed in defeating a bank inspection
bill. Representative Huey, OF Mahon-
ing county, stated that five Of the
banks we're represented in the lobby
two years ago, have since failed.
The bill that passed two years ago
provided simply for filing with the
state auditor semi-annual reports by
state and private banks, Only the
reports of the state banks have been
made public, for the reason that the
right of the stasa to impose conditions
upon private banks was attacked and
is now pending in one Of the southern
Ohio courts. Metzger's bill does not
seek the regulation or inspection OF
private banks.
There are now about $50 ch1rtered
and incorporated banks operating un-
der the Iaws of the state, representing
total capitalization of over S30,000,-
600, carrying total individual depos-
its estimated at about $225, 100000.
In commenting upon the need for
more rigid regulations and inspection
of banks several interesting sugges-
tions are made by some Of the mem
bers Of the general assembly.
Representative Bense, Democrat of
Ottawa county, is not in favor of
Metzger's proposal to create a new
state department for bank inspection.
He believes that the duties of the ex-
listing bureau of public accounting
and inspection could be enlarged and
extended SO as to provide for bank
| inspection. He is also In favor OF
provision, based on Governor Pat
| tison's recommendation, requiring
bank officials, directors and employees
to take an oath of Office not to en-
gage in any kind of speculation.
while there is not much chance
! Of getting such O law through now,
| said Bense, Il believe eventually a
law will be passed. providing for the
creation of a state guarantee fund for
! bank depositors. We could levy a
tax of about one-half of l per cent
ON all deposits until the state had a
fund of $4,000, 900 or$ 900 900, and the
state would then guarantee the safe
/ ty of all deposits. In case of a bank
| failure depositors would be fully re-
compensed OF course that plan would
practically result in putting national
banks out of business, for the reason
that if dcpositors knew that their de-
posits in state banks were absolutely
guaranteed by the state, they would
be willing to accept a slightly lower
rate OF interest on their money"
Senator Hypes. of Clark county, Re-
publican floor leader In the senate,
saiu:
THE Republicans will vote to en-
large the scope of bank legislation
as began by them in the last session.
! | take it that they will vote for any
measure that will thoroughly safe
guard the people, down to the hum
blest depositor."
dut III ldNOl VI any
tion law that will safeguard the in
terests Of depositors," said Independ-
ent Senator Lamb.
State Insurance Commissioner a. j
Vorys has returned from New York
where he attended a meeting of state
insurance commissioners at which the
life insurance question was consider
ed In relation to the forthcoming
report Of the Armstrong committee
"The session was executive" said
Mr.. Vorys "and 1t was agreed by all
participating that nothing Of the pro-
ceedings should be given out,
might say that nothing Is to be done
until that report is made. Perhaps
it will te such as to make 1t wholly
unnecessary to do anything"
! Mr.. Vorys said in answer to the
question as to whether 1t was his in
tention TO serd in message of ad-
general assembly. that all would de-
pend upon the character Of the re-
port.
Senator Rose thinks county audi
tors. by whom are made the valu'
atoms of railroad property for taz
ss's3ment, have not properly in
creased the valuation of this class oi
property. although in recent years
farm lands and other real property
has been made to belr a higher valu'
alton. He is considering the intro
duction OF q bill TO correct this dis
elimination.
School directors are given NOR
autocratic powers that the framer!
of the old federal plan of govern
lment ever dreamed of in a bill intro
dueed by Representative Corlett, O
lCuyahoga. If the directors veto an.
resolution or other act of the boar,