Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-05-31
MEETING A SUCCESS
BANKERS OF GROUP TEN ENJOY
Ed NOTABLE CONVENTION
YESTERDAY AFTERNOON
Session Held in Dining Room Of Rallln.
gall Hotel After Luncheon Had Been
served-Present Officers Reelected
The Delegates Present.

The annual meeting Of Group Ten
OF the Iowa Bankers association held
yesterday afternoon in the dining
room OF the Ballingall hotel was dis
t1nct success in every way. About
eighty delegates, visiting bankers from
outside of the group, and officers and
directors of the local banks were pres
ent at the luncheon and the meeting
that followed.
| The address of the afternoon was
splendidly delivered by Hon. B. r. Car
roll of Des Moines, auditor of state.
Mr.. Carroll dwelt principally upon
three topics. First, the banking legis-
lation acted upon by the last session
OF the state legislature; second, the
relations of the incorporated and the
private banks, and third, the bank
ing department of the state.
In speaking of the banking legisla-
ton Mr.. Carroll stated that twenty
bills had been introduced bearing on
banking business, ten in each house.
seven OF these were passed. An out
line OF these bills follows:
Banking Laws.
| One to permit savings banks to in.
vest in drainage district bonds;" one
to compel Loan and Trust companies
to pay an annual fee for the examina-
tlon by the state one to permit the
deduction of the value of stock In
building companies held by a bank
from the value of that banks stocks
before they are listed for assessment
This law covers cases where sepa.
rate company is formed to build the
building which the bank occupies, and
the bank holds certain amount of
stock in that company. One law pro.
vides for requiring bond from the
holder of lost instruments when re-
quest for payment is made. Another
provides method for extending the
corporate period of banks. The sixth
law requires two of the quarterly ex.
am1nations made by the committee of
the directors of bank to be filed with
rthe banking department of the state
The other law furnishes penalty for
the crime of embezzlement under the
provisions of section 1869. This sec.
ton provides that where loan is
made an officer or employee of a bank
without being authorized by the board
or directors, that it shall be consid.
cred embezzlement, but the section
Tails to provide any penalty for such
an offense. The new law provides a
penalty OF imprisonment not to exceed
ten years, or fine not to exceed the
amount embezzled, or both.
Continuing his address Mr.. Carroll
said in part: "The state of Iowa has
been injured by false reports circu.
lated as to the number of banks which
failed during the years Of 1903 and
1904 Not one half as many fallen as
was reported far and wide. 1t is graft
fylng to know that in the last year
and five months, following a period
IN which there was more than the
usual number Of failures, only about
five or six banks have failed and only
one OF these an incorporated hstitu-
ton.
Difference Of opinion.
There has been SO much difference
of opinion and quarreling between the
incorporated banks and the private
banks. They are not frank with one
another. Their interests are common
and instead of quarreling they ought
to reason things out. There is no law
compelling private banks to incorpo.
rate. There have been number of
attempts to pass such law, but they
nave failed. But the private banks are
incorporating of their own accord. A
very large number of these have done
SO during the time that have been
in office.
A private bank backed Dy enough
capital to make it solid institution
can hardly afford to do anything else
but incorporate, since in case Of fail
ure of an uninc9rporated Institution
stockholders are responsible for only
twice the amount of their stock, while
in private bank all of the property
back of the bank can be held
There are two classes of private
banks, one class is composed of solid,
substantial institutions, just as good
as there are in the state. The other
is composed of banks which we know
nothing about. If we could separate
these two, if we could get at the latter
banks without affecting those that we
know about, then would not even be
an advocate of this sort of b mixing
legislation"
In speaking of banking competition
the speaker said: Don't ever try ia
drive competing bank out of bust.
ness. If there isn't business enough
for both of you, buy the other one
out or sell out yourselves. If you force
the competitor to the wall it will only
hurt yourself"
Banking Department Better.
The banking department" the