The Montgomery advertiser., 1909-09-20
BANKERS MEET LAW
KANSAN FINANCIERS COMPLY WITH
 GUARANTEE FEATURES.
Combination of Eastern Companies to Sustain Rates Brings About De- feat-Westerm COmpany'B
 RnmAm AhnufNd

feat-Western COmpany's
 Bonds Adopted.
 Chicago, Sept. 19.-(Special.)- 1.-The last requirements put upon the State banks of Kansas by the deposit guar antee law has been met by provisions made by the banks for guarantee bonds to cover deposits of State funds in over 400 institutions.
 This was disclosed by the announce ment here by W. E. Wilson. Secretary of the Kansas State Bankers Associa- tion. that arrangements had been con- clu(led for bonds of a fidelity bonding company, the Consolidated Casualty Company of Chicago, of which Robert B. Armstrong. formerly Assistant Sec retary in the Treasury, is President. In doing this, the Kansas bankers struck a blow for the upbuilding of insurance funds in the West and for checking their flow to the coffers of the East and of Europe.
 The announcement of Secretary Will son stated: This decision was made after considerable thought and investt- gation of the many applicants before the Executive Council. The Consoli- dated Casualty Company of Chicago has been endorsed by the Executive Council of our association for the pur- pose in writing depository bonds for the State banks of Kansas" This an- nouncement was confirmed at the office of the company in this city.
 This wholesale arrangement Tor guaranty bonds for over 400 State banks scattered all over Kansas, one of the most sweeping results of the law recently enacted, Is the outcome or negotiations begun some time ago with bonding companies all over the united States, all that are doing business in Kansas.
 Instead of competition between tho forty-odd old line companies of the East, however, there was seen to De an agreement on rates to which the Consolidated Casualty Company, a new S2, 900, 900 corporation that was organ | ized as d protest against Eastern dom- finance in the insurance field. refused to become a party. The contest at | once became a notable one in which the independent spirit of all Kansas became aroused by the pressure that was brought to bear in hundred ways to sustain the prestige of Eastern in- surance interests. The Western conn., pany, after a searching scrutiny of its financial responsibility, was decided upon.
 With this last step settled .the Kan sas bank guarantee law promises to be a formidable example to the bank
 
 emulation by other States. President Armstrong of the Consolidated Cas- ualty Company. himself member of the American Bankers Association, af- ter an examination of the requirements of the Kansas law. said: '"The bank guarantee law Is a good one. Some of its enemies say that there is only a small fund on hand to protect millions of deposits. The strength of the plan lies in the fact that 1t is preventive. and not a remedy that seeks primarily to make everything all right after the bank has failed. They may never have to use the fund at all. It's sue cess depends on the men whom they make their commissioners of banking and the way they enforce the rigid examination laws. The Kansas plan has eliminated the weakness of the Oklahoma bank guarantee law"