Los Angeles herald., 1907-11-21
COMMITTEE
TO IMPROVE
BANK LA WS
RESOLUTION PASSES AFTER
WARN DEBATE
SENATOR cAMINETTI DENouNcEs
"MILLIoNAIREs' CLUB"
Says First Cause Of Financial Diff
cuIties Can Be Found in WASH
ington-Wants M otion
Referred

BY Associated Press.
SACRAMENTO, Nov. 2O.--After con-
yening i'm extra session for two days Ii
has developed that the proper financial
relief Legislation and the rehabilitation
of the courts special holidays cannot
be enacted by the legislature under the
present call of Governor GilIett and
that supplementary proclamation
must be ISSUED, according TO the con-
cIusions arrived at late tonight Dy N
subcommittee of the senate judiciary
committee.
By Associated Press.
SACRAMENTO, Nov. 20.-Financial
legislation to afford relief in the present
stringency ascribed largely to alleged
imperfections in the banking laws of
the state and the methods employed by
banking institutions in conducting their
business and special legislative inves-
tigation of tn banks and banking laws
of the state, occupied the time of the
two houses of the legislature today.
Senator Leavitt introduced a concur
rent resolution in the morning session of
the upper house providing for special
legislative committee to thoroughly in
vestigate the existing bank laws and the
conditions of the banks and their meth
ods of conducting business, and Assem-
blyman Held of Mendocino presented a
similar resolution in the lower house.
WITH an dIEeuuIuenC Dy STANTON OIL lOS
Angeles, making it a companion meas
ure to Senator Leavitt's resolution. The
committee is to consist of three members
of each house to be appointed by the
president of the senate and the speaker
of the assembly respectively, and to re-
port to the next regular Legislature.
Provokes Argument
When Senator Leavitt's resolution came
up as a special order of business in the
afternoon session of the senate it pro-
voked the first lively argument of this
| session.
| Senators Caminetti and Sanford, both
Democrats, strongly attacked the meas
ure on the ground that it would cause
! more unrest in the public mind" and
| create a still greater distrust in the
banks at time when the public was
already losing faith in the institutions
| if their methods of doing business were
| laid bare In all details. He wanted to
know If the financial stringency in the
east was due to the defective bank laws
in California.
THE financial stringency is DUE he
declared, Ito the machine laws inaugu-
rated by the Republican party in this
country and the millionaire senate in
Washington"
Caminetti moved that the resolution be
referred to the judiciary committee.
MOIion is LOST
This was strongly opposed by Leavitt,
who wanted it adopted at once.
A tie vote resulted, but the motion was
lost by Senator Lukens casting his vote
against it. The latter afterward said
he believed he had made a mistake. but
could not get reconsideration. Senator
Sanford then moved that the entire pre-
amble of the resolution be stricken out,
declaring that that part would create
great distrust in the state and perhaps
intensity the stringency. He defended
the banks and declared that the money
in them was safe.
Senator Willis of San Bernardino
charged Sanford and Caminetti with in
sincerity and declared that they had con
victed themselves of partisanship and
doing politics.
Every person in the state who has
money in the banks knows he can't get
it," said he. He maintained that this
condition was principally due to lax
banking methods and imperfection in the
banking laws.
Senator Caminetti wanted to know
what the banking commission is doing
on which you have taken good care never
to place a Democrat?' He contended
that the banking commission was par
ticularly qualified to make the invests
cation and better fitted than any legis-
lative commission.
Senator Wolfe, who was acting as pres
ident pro tenn, twice called Caminetti to
order and the latter charged Wolfe with
attempting TO prevent him from speak
ing on the subject.
Resolution Amended
Belshaw favored the resolved part
but wanted the preamble reciting the
present financial stringency stricken out.
This was accepted by Senator Leavitt.
and on motion of Senator Carter of Los
Angeles Leavitt finally agreed to let the
resolution go to the committee on bank
ing as amended.
The resolution is in part as follows:
''Vhereas, Within the past month a
condition of financial embarrassment has
prevailed among the banks and banking
houses doing business in the state of
California, Notwithstanding the fact that
the people of this state in every walk
of life have been particularly prosper
Gus; and
whereas. 1t is the opinion OF many
rassment of said banks and banking
houses has resulted in widespread dis
sension among all classes and further
resulted in a succession of holidays de-
clared by the governor, the result of
which has been great Inconvenience and
injury to many business interests otner
than banks; and has impeded the prog
ress of the courts in the disposition of
all business, civil. criminal and probate,
that was pending in said courts at the
time of and during such holidays: and
"Whereas, lit is the opinion of many
that the financial condition as now ex-
isting is attributable largely to the inn
perfection of the laws of the state of
California governing banks and banking
and trust companies and in the manner
of conducting said business; and
'sVhereas, 1t is apparent to all that our
banking and trust laws need to be amend
ed so as to AFFORD better protection to
Al. efr
Now, therefore be IL
Resolved. BY the senate OF the state
Of California, the assembly concurrlng.
fcontfnued ou pace T,vxoa