The Montgomery advertiser., 1908-01-02
HUGHES SENDS IN A MESSAGE.
 - 1 New York Gq fnor to
 Legisl sfe. DwElLs og FArE BANKS Executive Y Refsts to Insurance Rtfofms.
 s---- Says Laws Asainst Gansiiss at the Race Tracks Have Bsea De- aed-Refers ts Taser-
 cuIosis h CattIe.

Albany, N. Y., Jan. 1.-The f3fst an- nual session of the New York State Legislature began at noon today. James w. Wadsworth, Jr., was re- elected Speaker of the Assembly. The second annual message of Governor Hughes was the feature of chief in- terest.
 The annual message of Governor Hughes contains many important rec concentrations. Chief among these, in the light of certain conditions disclosed
 by the recent financial upheaval, is a recommendation regarding the arnend-
 ment of the law relating to banks and trust companies.
 In bringing the matter to the at-
 tention of the legislators. the Cover
 nor urges them to adopt every practi- cable means ito prevent repetition of
 reprehensible practices and to assure
 the proper management of tho financial
 institutions chartered and supervised
 by the State, upon whose stability and prosperity the interests of our people
 in every walk of life so largely de-
 pended"
 Another important recommendation has as it's object the complete suppres- sion of race track gambling Through : out the State.
 Direct nominations at primaries and a simplified form of ballot are urged in lHS message dHu TeCOulfuShudttuto diSo are made for better provision for the care and protection of emigrants.
 Reference to Banking.
 With reference to the banking laws the message says: &
 Recent events have demonstrated the necessity for providing effective means for preventing the exploitation of banks and trust companies and the acquisition and use of a control of a number of institutions to facilitate sell fish schemes opposed to sound bank ing. If suitable restrictions are i'm posed in explicit form. assuring ade- quate knowledge and proper action on the part of the board of directors with regard to loans and other transactions; preventing the deposits of moneys Of one institution with another itz arfiFr that tile officers, directors. os et0hk-' holders of the former may obtain de- sired 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 on collateral to any one inter- est and erecting proper safeguards against loans and investments in aid of schemes of promotion represented by marketable securities. and if in ad- dition suitable means are provided for the enforcement of the superintendence of banks with regard to improper or unsafe practices. the security of our financial institutions, and the conf dence which springs from just reliance upon their proper management. will be greatly strengthened
 Tt is apparent that existence Of de- mand obligations requires reserves 10 be maintained and that they have the salutary tendency to prevent lan undue expansion of credits. With regard to trust companies. however. the matter of reserves is a phase of larger ques- ton. It was not contemplated by the law relating to trust companies that they houId engage in the same busi- ness as banks. In practice. however, they have engaged in the banking bust- ness upon a large scale. and the mon- eys deposited with them are for the most part payable on demand.
 "whatever reserves. or other re- strictions. may be deemed advisable N with reference to demand deposits in the case of bank should be equally with reference to the same sort of deposits in the case of a trust 
 The Governor recommends that pro- vision be made for liduidation of in- solvent banking institutions under the supervision of the superintendent of banks.
 As to Insurance Laws.
 Extreme caution in making any changes in the present insurance law Is urged bv the Governor He sug- gests the advisability of providing for the liquidation under the supervision of the superintendent of insurance in insolvent insurance corporations in the | same manner as is proposed for the liquidation of banking institutions.
 The enlargement of scope of the pub lie service commissions law published | In the message would provide for the | extensions act to include telegraph ] and teiephone companies in addition to | the corporations already under super vision. Such extension of the act would | bring the telegraph and telephone com | Danies under regulation as to rates. | service and other matters similar to | that which obtains in the case of cor porations at present subject to the law. | The Governor recommends that the ex- l tension of jurisdiction shall take ef- | feet on October 1 1908.
 The question of bovine tuberculosis | Is referred to as one which requires | serious attention.
 "The disease is spreading" says