The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-28

ton to tho amount invested In such
shares. The term 'stockholder,' when
used In this chapter, shall apply not
only to such persons as appear by the
books OF the corporation to be stock
holders but also to every owner OF
stock. legal or equitable. although the
Same may BIO on such books In tho
nano Of another person; but shall not
apply TO q person who may hold the
stock as collateral security for the
payment OF a debt"
There Is ono popular objection among
bank men to the new law. and that is
that It permits banks to organize with.
auence OF this dozens OF small banks
have sprung up all over the State.
Every village has It's bank. AS legiti-z
mate banking institutions these small
banks in small towns serve a good
purpose, but some OF them are run for
the benant OF a cotton mill company
or sonle other big enterprise. It is
said that bank with $4,000 stock
often loans to manufacturing con-
Germ from, 100000 to $4,000. In pros
porous times this is considered safe,
but II there were to come a financial
panic, and the big borrower were to
| fail. somebody would suffer.
/ Limit ms to Lonns.
! a State bank cannot loan money on
\
the national bank law. The State bank
can loan money on real estate, but a
national bank cannot, without evad-
ling tho law. which is done every day.
I. The last Congress passed bill max ].
Ing illegal to loan one person, or COM
}pany,. 10 per, cent. OF the capital plus
the surplus OF the bank. The State
banking law OF North Carolina pro-
lhib!ts the loan OF more than 10 per
lcent. Of the capital IL the capital stock
lis more than 100000.
i The form Of report used by banks
in making their reports to the Cor
slporation Commission is almost identi-
|cal With that required by the United
i Estates. Under the head OF resources
iIsecured and unsecured. United States
bonds on hand, North Carolina State
bonds, all other stocks. bonds and
mortgages premium on bonds. bank
ling houses. furniture and fixtures. all
lother real estate owned, demand loans
ldue from banks and bankers, cash
items, gold coin, silver coin, including
5lall minor coin currency, national bank
notes and other United States notes.
4 Liabilities: Capital stock. surplu.
{ fund. undivided profits less current
EIexpenses and taxes paid. dividends un.
paid, notes and bills rediscounted bills
payable. time certificates OF deposit
tIdue to banks and bankers, cashiers
checks outstanding, certified checks
and accrued interest due depositors.
Printing of Reports.
These reports are sworn 10 by the
cashier before notary public. The
& publisher OF the paper iii which the
statement Is printed must certify t.
the fact that the report has been pub
lished, and send copy OF the printed
report to the North Carolina Corpora
tion Commission at Raleigh. In 1t.
Instructions to the bank officials tn
Commission asks that the following re
). |quirements be observed.
Each bank report must be publishet
In a newspaper In the county in which
such bank is located.
ut must be published in the sam
! FORM and the same order OF items a
. in the sample form on the back OF thi
I certificate, including the full title an,
Z location OF bank. the AFFIDAVIT OF cash
Ter, the notary's certificate. and tn
: attestation OF at least two directors.
!. The North Carolina bankers. as
! rule, like the law OF 1908. 1t has sys
: tematized the business and put 1t o.
> basis with the national banks.
9 great number OF banking companie
J have been organized since the passag
I |of the law. There was no method 1
Q the banking laws Of the State l,efor
1909. 5