Omaha daily bee., 1908-01-02
HUGHES FOR SAFE METHODS
Governor of New York Delivers His
Message to Legislature.
OPPOSES RACE TRACK GAMBLING
Calls on Lawmakers TO ReEuIae Cor,
pOrations and Prevent DishOn-
est Practices Among
Ffnanciers.

fInnnClerHs
ALBANY, N. Y, Jan. 1.-THE one hun
dred and thirty-frst annual 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 interest
The message Of Governor Hughes con-
tsines many important recommendations.
Chief among these. in the light Of certain
conditions disclosed by the recent financial
upheaval. is a recommendation regarding
the amendment of the law relating TO
banks and trust companies. In bringing
this matter to the attention of the legisla-
tors the governor urged them to adopt
every practicable means Ito prevent repeti-
tion OF reprehensible practices and to as
sure the proper management of the fnan-
cial institutions chartered and supervised
by the state, upon whose stability and
prosperity the interests of our people in
every walk of life so larg1y depend"
Another important recommendation has
its object the complete suppression of
race track gambling throughout the state.
Direct nomination at primaries and a
simplified form OF ballot are urged in the
message and recommendations also are
protection of emigrants.
Restrain Upon Bankers.
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 control of a number of institu-
tions to facilitate selfish schemes opposed
to sound banking. II suitable restrictions
are Imposed in pXnliCit form and with n
propriate penalties, insuring adequate
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 in order that the officers. di-
rectors, or stockholders of the former may
obtain desired credits from the latter limit
ing 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 erect
ing proper safeguards against loans and
investments I'm aid Of schemes of promotion
represented by unmarketable securities, and
II in addition suitable means are provided
Tor the enforcement of the rulings Of the
superintendent Of banks with regard to i'm
proper or unsafe practices, the security
or our financial institutions and the con-
tdence which springs from just reliance
upon their proper management will greatly
be strengthened.
Reserves of Trust Companies.
1t is apparent that existence of demand
obligations requires reserves to be main
tanned and that they have the salutary
of W n pnGue @ st
panles however, the matter of reserves is
a phase OF larger question: IL was not
companies that they should engage in the
same business as banks. In practlca.
ing 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 doomed advisable with ref
erence to demand deposits in the case of
reference to the same sort of deposits in
| the case of a trust company.
The governor recommends that pro-
! vision be made for liquidation of insolv-
| ent banking institutions under the super
vision of the superintendent of banks.
Extreme caution in making 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 IL clearly appears that
| they are needed to conserve the interests
! of the policy holders. He also suggests
the advsability of providing for the
! liquidation under the supervision of the
| superintendent of insurance of insolvent
! insurance corporations in the same man.
| ner as is proposed for the liquidation of
! banking institutions
More Power for Commission.
| The enlargement of scope of the pub
! lie service commissions law proposed in
! the message would provide for the ex-
/ tension of the act to include telephone
and telegraph companies in addition to
the corporations already under super
vision. Such extension of the act would
| bring the telegraph and telephone COM
ranies under regulation as to rates serv-
! ice and other matters similar to that
! In NJ he
| at present subject to the law. The gov
| ernor recommends that the extension of
| jurisdiction shall take effect on October
| /, 1908.
The question of bovine tuberculosis is re-
ferred to as one which requires serious at
tention. The disease is spreading" says
| the message. land we not only suffer from
what may be called its natural increase,
but the measures that are taken in neigh
boring communities for their own protec-
tion have made our state the recipient on
a large scale of tuberculous cattle which
have been rejected elsewhere. Inspection of
meat TO insure local protection. particu-
larly with regard to the disposition OF re-
Jected animals. Is a necessary supplement
to federal inspection in connection with
interstate commerce"
In discussing race track betting Governor
Hughes recites the constitutional provision
! forbidding lotteries, pool selling book max
ing or any other form of gambling within
the state and empowering the legislature
to fix penalties therefor, and the amendment
to the penal code which prescribed the pun
ishment for pool selling at race tracks for
feiture of the money paid by the bettor to
be recovered, The message continues:
The constitution makes no exception of
race tracks. I recommend that the legis-
lature carry out the clear direction Of the
people without discrimination. In connec-
tion with the repeal OF the existing exceo-
tiOn | recommend that the ofenses de-
scribed in the penal code should be pun
shed by Imprisonment and that the alter
native of fines should be abolished"
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