The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-01-02
Governors Annual Message Is
an Able Document
BLOW AIMED At GAMBLING
Banks and Banking Laws Come In For
Recommendation and Governor
Lays Down Method of Pro-
cedure for Legislature.

CSuufe TOT Legislature.
Albany, January 1.-The 1S1st annual
session of the New York state legis-
lature began at noon today James w.
Wadsworth, Jr., was reelected speaker
of the assembly. The second annual mes
sage of Governor Hughes was the feature
of greatest interest and contains 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 the
matter to the attention of the legislature,
the governor urges them to adopt every
practicable means ito prevent repetition
of reprehensible practices and to as
sure the proper management of the fin
ancial institutions chartered and super
vised by the state, upon whose stability
| and prosperity the interests of our peo-
pie in every walk of life so largely de-
pend
Another important recommendation has
as it's object the complete suppression
of race track gambling throughout the
state.
Direct nominations at primaries and q
simplified form of ballot are urged in the
message and recommendations also are
made for better provision for the care
and protection of emgrants.
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 selfish schemes
opposed to sound banking. If suitable
restrictions are imposed in explicit form
and with appropriate penalties, ensuring
adequate knowledge and proper action
on the part of the board of directors with
regard to loans and other attractions
preventing the deposits of moneys of one
institution with another in order that the
officers, directors, or stockholders of
the former may obtain desired credits
from the latter limiting the amount which
may be loaned by any bank or trust COM
pany upon the stock of another financial
institution reducing the amount which
may be loaned on collateral to any one
interest and erecting proper safeguards
against loans and investments in aid of
schemes of promotion represented by
marketable securities, and if in addi-
ton suitable means are provided for the
for ,nnt Of ha nj q M of
banks with regard to improper or unsafe
practices, the security of our financial
institutions, and the confidence which
springs from just reliance upon their
proper management, will be greatly
strengthened.
'It 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-
panson of credits. With regard to trust
companies, however, the matter of
serves is phase of larger question. 1t
was not contemplated by the law relating
to trust companies that they should en-
gage in the same business as banks.
In practice, however, they have engaged
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
reference to demand deposits in the
case of bank should be equally OBJ
ligatory with reference to the same
sort of deposits in the case of trust
company"
The governor recommends that pro-
vision be made for liquidation of in
solvent banking institutions under the
supervision of the superintendent of
banks.
Caution Is Advised.
Extreme caution in making any
changes in the present insurance law
is urged by the governor. He suggests
the advisability of providing for the
liquida tion under the supervision of the
superintendent of insurance of insol-
vent 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
extension of the act to include tele-
graph and telephon companies in ad-
dition to the corporations already un-
der 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 obtains In the
case of corporations at present subject
to the law. The governor recommend
that the extension of jurisdiction shall
take effect on October l, 1908.
The question of bovine tuberculosis
is referred to as one which requires
serious attention. "The disease Is
spreading," says the message, and we
not only suffer from what may be
called it's natural increase, but the
measures that are taken In neighbor-
ing communities for their own pro-
lection have made our state the re-
cepient of a large scale of tubercu-
losis cattle which have been rejected
elsewhere. Inspection of meat to IN
sure local protection, particularly with
regard to the disposition of rejected
animals, is necessary supplement to
federal inspection in connection with
Interstate commerce..
Race Track Betting.
In discussing race track betting
Governor Hughes recites the constltu-
,,onal provision forbidding lotteries,
pool selling, bookmaking or any other
form of gambling within the state, and
rempowering the Legislature to nix pen
alties therefor and the amendment 10
the penal code which prescribed the
punishment for pool selling at race