Omaha daily bee., 1907-02-19

conducted trust company in his community.
Some of the commercial banks complain
that It deprives them of some profitable
depositors because trust company can
can afford to pay a higher rate of interest
to a certain class of depositors than a COM
mercial bank can afford to pay. This last
fact is, in my opinion, the only valid rea-
son for certain bankers in Nebraska OBJ
jecting to a trust company law.
do not mean to cast reflections on the
management of any savings banks doing
business in the state of Nebraska today,
but I assert without fear of contradiction
that II these savings banks in Nebraska
do not meet with the same disaster that
befell their predecessors between 1893 and
1896 1t will be because of the personnel OF
the management and not in the slightest
degree because of added restrictions placed
upon those institutions by existing statutes.
1t Is the hope of those Interested In the
trust company bill that by throwing ad-
ditional safeguards about deposits and de-
positors, confidence may be reinspired and
our people induced TO again deposit, and
thus get into legitimate channels of COM
merce the millions of dollars that are at
present hid away in safety deposit vaults,
etc, by Nehraska people, or put into
doubtful Investments wholly outside of the
state.
Is 1t not a significant fact that while the
savings bank deposits in Minnesota are
equal to s12.OO per capita. and in Iowa
1886 per capita, the savings bank deposits
OF Nebraska are less than 500 per capita ?
VIII anyone believe that the financial
condition OF the people of this state Is so
much worse than that OF our neighboring
states? II true, we may expect an exodus
from Nebraska before long. But no one
believes that II is true. The only reason
for this unfortunate showing, on the part
of Nebraska people, Is. in my opinion.
simply because no law has ever been
passed sufficiently governing and control
ling the organization and management Of
institutions receiving savings deposits.
In the Legislature of 1891 a strenuous ef-
fort was made to put proper restrictions
upon the management OF savings banks
and the investment of their funds At the
request of the committee on banking, 1
assisted in preparing such a bill Had the
bill 30 prepared then been enacted into
law one-half the savings bank failures
which have since occurred would have
been averted; but when the bill was COM
pleted delegations from Omaha and other
parts of the state appeared. / think that
nearly every savings bank that afterward
failed was there to protest against the
provisions of the proposed law They were
aided by a class OF bankers who are now
Directing to a trust company law. The
savings bank managers insisted upon a
wide open law for their business The
other bankers referred TO seemed to have
no interest in the proposed law further
than 1t should be so framed as TO obstruct
and so far as possible prevent competition
with their business.
Is it not about time that those who are
shouting Stand up for Nebraska" and all
other good citizens should get together
and work for the common good instead Of
combating every movement for the better
ment OF the community. II It might in the
remotest degree interfere with personal
business? Had the wholesale merchants
of Omaha been actuated by this narrow
spirit and fearing competition, combated
1t instead of inviting new houses to come,
Omaha's jobbing trade would be exceed
ingly small and most Of our best whole
sale merchants would have gone elsewhere
to conduct their business.
The trust company has become a rec
ognized and benehcent factor in all the
pertinent. There is large volume of bust
ness that cannot be conducted by either
the national or state banks For example,
the idea of personal executors, admins
traitors. etc, has become almost obsolete
In all the older states It having been
found that properly organized and con-
Quoted trust company will perform those
duties much better than any individual
possibly. can.
Because of the absence OF trust COM
panies in Nebraska some of our wealth.
lest citizens have already arranged to
have their estates settled outside of Ne
braska. l know Of several more who are
awaiting the result of bills now before
the legislature and IL some of these are
not enacted into law arrangements will
Immediately be made for these estates TO
be handled by trust companies elsewhere.
This means, in most cases, permanent
withdrawal Of a large portion of those
funds from Nebraska
have not thus far heard a single reason
put forth in opposition to a trust com
pany law except that II may interfere
with somebody's or some banks present
business. think those making such OBJ
jections are short-sighted. My observation
has been that through New York ana
New England in every community where
a trust company has been established n
has not only been great beneht TO the
community, but has been rather help
than hindrance to the commercial banks.
IL may have taken from them some OF the
small deposits because the trust COM
pany could AFFORD to handle these trust