The Topeka state journal., 1908-01-21
Measure That May Be Adopted
as Compromise
Provides for the Insurance OF
Bank Deposits.
NOW BEFORE SENATE.
Was Drawn and introduced by
Bale Waggener.
Text of Bill as 1t Stands With
out Amendment.

That the present extraordinary ses-
sion of the Kansas legislature Will de-
vote a part of its time to neeoeo
banking legislation is foregone con-
clusion. That such legislation ranks
with the direct primary in impor-
tance is the opinion of many, though
it will meet with strong opposition
from certain quarters. what FORM
it will eventually take is at present
mere conjecture.
Senator Waggener is the author OF
a bill departing materially from the
generally accepted idea and which
appears in the senate records as SEN
ate bill No. ST. 1t is entitled An act
authorizing the creation of deposit
insurance companies, defining ther
powers and duties, and the duties OF
certain state officers in relation there
to, and providing that banks ana
trust companies may participate III
the benefits thereof, and providing
penalties for the violation of this act.
Be it enacted by the Legislature OF
the State Of Kansas:
Sec. 1-That in addition to the
purposes for which corporations may
be formed under existing laws or the
state of Kansas, there may be created
as herein provided corporations Tor
the insurance of deposits of state, pri-
of Kansas and the insurance OF de-
posits of trust companies in the state
of Kansas from any loss Whlcn may
accrue to their general creditors or
depositors from failure in whole or IN
part of such insured banks or trust
companies and consequent inability to
pay such general creditors or deposl-
tors in full, and thereby to indemnify
such creditors and depositors from
loss.
i,,cI mr.
company organized under this act
shall have a capital stock of not less
than one million dollars and no divi-
dend in excess of ten per cent per an
mum shall be declared until such com
pany shall have a surplus of one mil
lion dollars.
Sec. 3.-That not less than fifteen
persons, a majority of whom shall be
resident citizens of the state or Kan
sas, may form any such deposit 1nsur-
ance corporation, and at least twenty
per cent of the capital stock shall be
maid in. in cash, before such corpora
ton shall be authorized to transact
business.
Sec. f. That any bank or trust
company doing business in Kansas
may subscribe for stock in any such
deposit insurance company in any
sum not exceeding ten per cent of. the
stock of such bank or trust CONS
pany, provided that no bank or trust
company shall own stock in more than
one such deposit insurance company
at the same time.
Sec. s. That any deposit insurance
company shall have a president vice
president, secretary and treasurer, all
of whom shall be citizens of the state
of Kansas and shall have a board OF
directors of fifteen persons, and the
first board of directors shall be named
in it's charter. The officers of any
oI. chosen
the board of directors, and the duties
of the officers and Of the board of
directors shall be prescribed by BY
laws to be adopted at the first meet
ing of the stockholders of such COM
pany, and the power of the board of
directors to alter or amend the by
laws of any such company shall be
defined and limited any annual
meeting of the stockholders.
Sec. 6. That the charter of any
deposit insurance company shall be
in the usual form, reciting the pur-
poses of its organization, its duration
of corporate existence, and its place
of business, and shall be executed and
acknowledged by not less than fifteen
incorporators, and evidence shall be
furnished to the satisfaction of the
state charter board that twenty per
cent of it's capital stock has been paid
in in cash, whereupon the said char
ter board shall issue to such corpora
ton a certificate of authority to COM
mence the business aurnorized by this
act.
Sec. 7. That no such deposit insur-
ance company shall ever invest any of
its funds in investments outside of
the state of Kansas, OUT such COM
pany may take and hold temporarily
any property or securities. real. per
sonal, or mixed. beyond the state of
Kansas. to protect itself against losses,
but any such property shall be dis
posed of within one year unless fur
ther extension of time TO hold the
same is given by the state charter
board.
Sec 8. That any such deposit in
surance company shall deposit, keep
and maintain with the treasurer of the
state of Kansas one hundred thousand
dollars in cash or municipal securities
or real estate mortgages, which sum
or securities or mortgages shall be
subject to attachment or execution to
satisfy any claim of any bank, trust
company or depositor of any bank or
trust company that may be injured by
the default of such deposit insurance
company II promptly meet its cor