Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-04
REGULATING LOCAL BANKS
REQUIREMENTS FOR INCOR-
PoRATIoN PROPOSED.
Bill to Be Introduced in the Senate
Monday, With the Approval of
District Commissioners.

A bill to provide for the Incorporation
Of banks In the District Of Columbia will
be introduced by Senator Gallinger Mon
day for consideration and report by the
District committee. The bill has the ap-
prevail of the District Commissioners.
It provides that associations for carry
ing on the business of banking in the Dis
trict may be formed by any number Of
persons, not less in any case than five. by
entering into articles of association and
executing an organization certificate in
the same manner and to the same extent
as prescribed by sections 5133, 5134 and
5135 of the Revised Statutes of the United
States relating to national banks. Upon
duly making and fling these articles and
an organization certificate with the con-
troller of the Treasury the association
shall become, as from the date of the exc
cution of the certificate, body corporate
and as such have power to do savings
and general banking business in the Dis
trict with the authority Of the controller
In the manner provided by section J1S
of the Revised Statutes, but no association
shall be organized under the act with d
capital of less than 100000 divided into
shares of 500 each. to be paid in cash In
the manner already prescribed by law.
held individually responsible equally and
ratably, and not for one another, for all
contracts. debts and engagements of such
associations to the extent of the amount
of their stock therein, at the par value
thereof in addition to the amount invest
ed in such shares, and such liability may
be enforced by the controller of the Treas.
ury in the manner provided for national
banks.
Conversion of Savings Banks.
1t Is further provided that any savings
bank, or savings or trust company. or
any other banking institution, organized
under the District code. or under the
laws of any state, and having an office
for the receipt Of deposits in the Dis
trict, may become a banking association
under this act, and in such case an or
ganiZation certificate may be executed by
majority of the directors, and the cert-
ficate shall declare that two-thirdS of the
owners Of the capital stock have requested
the change. The shares of such a bank
may continue to be for the same amount
each, and directors may continue in office
until their places are filled in the ordinary
manner. and any such company that is a
stakeholder in any other bank, by the
authority of the law under which it was
organized, may continue to hold such
stock. No such savings company, or
other banking institution, shall have less
capital than SlUO,OOo nor maintain dh
office outside of the District.
Requirements After Jan. l, 1909.
1t is written in the bill that after Jan
uary /, 1909. no company or corporation
shall transact a banking business in the
District except when organized under the
national banking act or the act ap-
proved October l. 1890 relating to trust
loan and mortgage companies in the Dis
trict with the exception of branches of
foreign banks doing an International bust
ness building associations receiving pay
ments from their own members, corpora
tons organized under this act and any
person or firm engaged in a private bank
ing business provided that every person
or firm engaged in q private banking BUSH
ness shall pay an annual license fee of
$500 and shall not put out a sign con-
tanning the words bank trust COM
pany'' or savings bank or any word
Indicating the same, or any artificial or
corporate name.
Violation of the act by any person. or
agent or officer of any institution, is made
a misdemeanor and punishable by fine
of not more than $1,000. or imprisonment
for not longer than two years, or both
Senator Gallinger will also introduce
Monday the Commi ssioners' bill to make
drunkenness a misdemeanor in the Dis
trict and to provide for hospital for
inebriateS.