Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-01-02
HUGHES ASKS
BETTER LAWS
MESSAGE URGES PROTECTION
OF BANK PATRONS
Recommends Legislation That Would
Completely Suppress Race Track
Gambling in the State
of New York
BY Associated Press.

BY Associated Press.
AT,RANY. N. Y, Jan. 1.-The annual
message of Governor Hughes which was
sent to, the legislature today contains
many important Recommendations, ChleI
among these in the light OF certain CON
dftions disclosed by the recent nnanclal
upheaval is a recommendation regarding
the amendment of the law relating 10
banks and trust companies
In bringing this matter to the attentloll
NJ the financial institutions chartered and
them to adopt every possible means 10
prevent repetition of reprehensible prac-
tices and assure the proper management
of the financial institution chartered and
superyised by the state, on whose stabli-
itv and prosperity the interests or our
people in every walk of life, so largely
depends
Another important recommendation has
for it's object the complete suppression OIL
race track gambling throughout the state
Direct nomination at primaries ana
simplifed form of ballot are urged in
the message and recommendations also
are made for better provision for the
care and protection of emigrants.
On Banking Laws
With reference to the banking laws the
message says:
Recent events have demonstrated the
necessity for using every means Tor pre-
venting the exploitation OF BANK ana
trust companies and the acquisition ana
use of a control of a number Of institu-
lions to facilitate selfish schemes opposed
to sound banking.
"If suitable restrictions are imposed
and with appropriate penalties assuring
adequate knowledge and proper legisla-
ton on the part of the board of directors
with regard to loans and. other transact
tions. preventing the deposits Of moneys
of one institution with another in order
that officers, directors and stockholders
of the former may obtain desired credits
from the latter, limiting the amount
which may be loaned by any bank or
trust company upon the stock of another
financial institution, reducing the amount
which may be loaned upon collateral to
any one interest, and erecting proper SAFE
guards against loans and investments IN
aid of schemes of promotion represented
by unmarketable securities; and if in adj
dition suitable means are provided for the
enforcement of the rulings of the superin-
tendent of banks with regard to improper
or unsafe practices. the security of our
financial institutions and the confidence
which springs from just reliance on their
proper management will greatly be
strengthened.
at is apparent that existence Of de-
mand obligations requires reserves to be |
maintained and that they have the salu-
tary tendency to prevent an undue ex-
pansion of receipts. With regard to the
trust companies, however, the matter of
reserves is a phase of larger question.
1t was not contemplated by the law re-
lating to trust companies that they should
engage in the same business as banks.
'Tn practice, however. they have en-
gagged in the banking business upon a
large scale, and the moneys deposited
with them are for the most part payable
on demand.
Whatever reserves or other restric-
tions may be deemed advisable with ref
erence to demand deposits in the case
of a bank should be equally obligatory
with reference to the same sort of de-
posits in the case of trust company"
To Safeguard Depositors
The governor recommends that pro-
visions be made for liquidation of insol-
vent banking institutions under the SUI
pervision of the superintendent of banks.
Extreme caution in maintaining any
changes in the present insurance law is |
urged by the governor. He says that
while any suggestions of additions should |
receive proper consideration no changes
should be made unless 1t clearly appears
that they are needed to conserve the in |
terests of the policy holders. He also
suggests that advisablity of providing |
for the liquidation under the supervision
Of the superintendent of insurance of the |
insolvent corporations in the same man
ner as it proposed the liquidation of |
banking institutions.
The enlargement Of the scope of the |
public service commission law proposed in
the message would provide for the extern
sion of the act to include telephones and |
telegraph companies in addition to the
corporations already under supervision |
Such extension Of the act would bring
the telegraph and telephone companies |
under regulation as to rates, service and
other matters similar to that which OBJ
tains in the case of corporations at pres
ent subject to the Law. The governor
recommends that extension of jurisdiction |
shall take effect on October l, 1908.
The question of bovine tuberculosis is
referred to as one which requires serious |