The Chanute times., 1908-02-07

gone home. A few VIII be present
Saturday to make final adjournment
OF the five special features mention:
ed in the governors message the leg
islature took favorable action on
three. The governor asks for direct
primary bill, a guaranty bank deposit
bill. amendment to tax law, two
cent fare law and amendments to the
prohibitory law A direct primary
bill was passed and the amendments
to the tax and prohibitory laws adopt.
ed. No two-cent fare nor guaranty
deposit law was passed. AS a sub
stitute for the latter, abandoned in
surance law was passed, giving the
insurance of deposits wholly at the
option of the bankers.
Topeka. Kan, Jan. 31.-Gov Hoch
may veto the law passed by the
special session authorizing the
amendment of the corporation laws
so that associations can be formed to
insure bank deposits. The governor
feels that the bank guaranty bill was
killed unfairly and further than that'
thinks that the insurance bill, which
did get through, is simply a subter-
fuge and dodge to avoid passing
what he believes the people actually
wanted.
81 do not feel that we have been
/ ;xl, ;,,
clared. There is a motive in this Dill
that | don't like. More than that, l
don't like the manner in which it was
passed at all We all understood
that the bank guaranty bill and this
insurance company bill were COM
panion measures and were to go manu-
in hand. The house, confidently be-
lieve, passed it with that idea IN
mind. But the senate simply hiled
deposit legislation. There are some
things in the law | don't like. Not
single limit of any kind is placed
upon the premiums which insured
banks must pay. In fact, the COM
panies can pay what they please
Little banks may be frozen out. I'm
going to consider it carefully and de-
eide what shall do in the matter.
The governor denied all rumors
that he will reconvena the legislature
to pass the kind of guaranty laws
which he wants. He said that the
regular session will do 1t next year.
The house and senate did nothing to-
day but hear bills reported signed
from the governor. The primary bill
has not yet received the governors
signature.
Senator Waggener stated today
that within a few days a meeting
will be held in Topeka of a number
of the most prominent bankers In
Kansas to organize an insurance
company under the provisions of the
measure.
I'VE will have such an insurance
company in Kansas" said Senator
Waggener today, within twenty
days"
A resume of the insurance law fol-
lows:
State private and national banks
are permitted to insure themselves.
The capital stock must be not less
than 100000 The form OF the
policy must be approved by the state
charter board. The amount of de-
posits insured must at no time ex-
ceed a sum equal to 100 times the
amount of capital stock and surplus
subscribed and fully paid up. Not
less than fifteen persons, two-thirds
of whom must be residents Of Kan
sas, may form such a company, and
at least 20 per cent Of the capital
stock must be paid in, in cash, before
it can be authorized to do business.
The remainder must be paid within
the next twelve months.
Banks and trust companies of Kan
sas may subscribe for stock, but for
not more than 10 per cent OF the
stock which the bank or trust COM
pany itself has. A board OF fifteen
directors is provided for. None of
the funds of the company can be in
vested anywhere without the consent
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of 100000 must be deposited with
the state treasurer in cash, municipal
securities, real estate mortgages or
government bonds, which will be
subject to attachment or execution to
satisfy the claim of any bank that
may be injured by default Of the in
surance company.
Whenever the company finds that
bank is not in good condition which
it has insured, upon ninety days no
tice. and upon notifying the bank
commissioner or comptroller, it may
withdraw its policy. Thirty days be-
fore the policy is withdrawn notice of
its withdrawal must be published in
newspaper of general circulation in
that community.
The state charter board is granted
full inquisitorial powers over all in
surance companies, and may revoke
their charters at any time that they
appear to be unsound. The insur-
ance companies are granted the
power to call for sworn statements
from banks insured and where per
/ Tho rAano1fu undcr