The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-02-04
TO QUIT TODAY.
Legislature Will Surely Adjourn
This Evening.
No Hope of Compromise on Bank
Deposit Bill.
A LONG CONFERENCE.
Governor HOch Talks 1t over
With Senator's.
A LONG CONFERENCE.
Judges Must Resign ii Candl'
dates for Other Offices.

The special session OF tHe leSieiH
ture will meet this afternoon, ana
adjourn sine die. There will be no
effort made to prolong the agony:
The action of Governor Hoch yester-
day in refusing to withdraw his veto
of the bank deposit insurance Dill mas
blocked the plan of recalling the house
ana senate. All bank deposit leg1sla-
ton is dead.
1t was decided this morning, how
ever, by Senators Waggener, Fitz-
patrick and others, that they will go
ahead Immediately and organize a
bank deposit insurance company,
either under an act of congress, or by
a state of Kansas corporation to be
chartered with not less than $1,000
900 capital.
Attorney General Jackson has given
1t as his opinion that such corpora
ton can be organized under the surety
company act of the state.
There is a bank deposit insurance
company organized in Washington, d.
c., under an act of congress. 1t is not
known whether this is a special act,
or a general act under which other
similar companies can be organized.
If it is a general act, the proposed
Kansas company will take out 1ed-
eral charter, under which it is author
lied to transact business in any state
If the act is a special one, the COM
pany will ask for a state charter.
The Washington company now doing
business has s1.00O.0OO capital
Senator Waggener said this morn
ing: "A conference was held this
morning at the attorney generals Of
flee between Attorney General jack
son, Senator Fitzpatrick and myself,
and the attorney general gave an
opinion that under existing laws,
bankers guaranty ana trust company
may be organized, and the charter is
now being prepared. This will leave
Governor Hoch without an issue.
''The new company will have CAPT
tai of not less than one million dol
lars. I am unable to say who will be
officers or directors, but have had
fifty letters from bankers throughout
the state offering to take stock in such
a company. Now that we have ar
ranged to provide for the insurance
of bank deposits, it is no longer nee
essary to have the legislature brought
back here
Hoch Wants No Issue.
Governor Hcch this morning COM
mented as follows on the claim that he
vetoed the bank insurance bill to get
an tissue for his race for United
States senator.
'They say it is an issue that am
trying to make. Now it seems strange
that if it is an issue I am trying to get
that 1 should use the measures which
I did to bring about the enactment of
the guarantee deposit law. 1 called
the legislature in special session, 1
urged in my message the enactment
of such a law I wrote a special mes
sage urging that one law alone, and I
went before the Kansas Day club and
made some remarks which even
7-fT n n fn fry
to get the legislature to pass this law,
and take away what they now say [
wanted as an issue I want no is
sue. and it's pity that some of these
politicians can't appreciate the fact
that sometimes a man does things be-
cause he believes it is the best thing
for the people of his state.
LAS to this plan for organizing
private corporation for the purpose
of insuring banks, l will say that I
do not believe such a concern will fill
the place of a guaranty deposit law.
There are already companies Of this
kind in existence. The whole purpose
of this deposit insurance bill, which
vetoed, seems to me to have been to
exploit the bankers of the state for the
benefit of a corporation of individuals
1t is wrong in principle. I don't be-
lieve in depositors' insurance, and I
don't believe that confidence of de-
positors can be gained by such a cor
poration.'
Royce Says It's Unnecessary.
Bank Commissioner John Q. Royce
was highly indignant at what he
claimed was the attempt on the part
of certain senators to create distrust
and dissatisfaction with the banks.
for the purpose of hurting Governor
Hoch
Some of these people" says Mr..
Royce. seem to want to see a lot of
banks fail so that they can blame it
onto Ed Hoch. because he vetoed the
bank deposit insurance bill.
'I want to say that I don't believe
any such company as is proposed to
insure bank deposits is necessary. The
banks of Kansas are absolutely sound.
They never were in such splendid con-
dftfon. What is wanted is simply
something to make people confident.
and by such confidence to Justify the
bankers in opening up their vaults
and loaning out this boarded money,
which the business men need A
bank deposit insurance law won't do
that. 1t is impossible to restore CON
f1dence by that means
whether or not I think s11cb p
company can be chartered under tbe
laws of the State is another cues
ton. I may have to pass on that as
member or the state charter board,
and do not wish to anticipate nv
action.
Personally, I hope they will have
the legislature come back here and
enact the right kind of denosit
guaranty law. But if they won't do
that then I say let things go as they
are. The banks are safe, and don't
need protection, but confidence needs
to be restore
Some of the bankers are scared
because they say Governor Hoch has
threatened to inject this discussion
into the campaign. It is already in
the campaign. and no one can get if
out. 1t is in there because half a
dozen national bankers had influence