The Topeka state journal., 1909-02-19
Interest Deposits Except Time
Certificates Eliminated.
LED BY MR.. QUINCY.
SaIina Senator Champion of the
Bankers.
Proposed Penalty of $1OO for
Violating Law Removed.


emerged from the dissecting room OF
the senate-the committee of the
whole-late Thursday afternoon, con-
siderably disfgured, but still recog-
nizable The body of the bill remains,
but some of the important portions
were either removed or changed.
Senator Fred H. Quincy, of Salina,
off1ciated as chief surgeon in the
operations performed upon the bill,
being ably assisted by Senators Lower.
Fowler and Hodges. Senator Cam
bern. of Neosho. as chairman of the
banking committee and the bill S
nearest friend. brought first aid to
the injured every time the knife was
applied while Senators Hamilton,
Gtannard and Stavely bore bandages
and argued with the surgeons for
merciful treatment for the subject
The operations, however, were not
performed with an axe, but rather
with keen, sharp knife, directed
with caution and skill.
AS reported to the senate the bill
does not guarantee any interest bear
ing deposits excepting time GER
one year. in an amount not exceeding
$4,000 for one person, and drawing
not more than per cent interest In
the case of bank failure the depOsitors
will receive certificates of deposit in
payment of losses, bearing 6 per cent
Interest on checking accounts and
per cent on time deposits The pen
atty of 800 for any bank that
violates the law is removed and any
bank having a paid-up and un-
impaired surplus equal to 10 per
cent of it's capital may come in un-
der the guaranty. Trust companies
are barred.
That all interest bearing deposits
of every description were not elimi-
mated was due to the fight made by
Senator Price. the sagacious senator
from Clark county. During the con-
sideration of the bill by sections the
interest bearing deposit clause was
adroitIy amputated. Senator Price.
however, bided his time and under the
head of general amendments he pre-
sented and secured the adoption of an
amendment permitting deposits up to
$4,000 to be guaranteed under the act
Even after this was accomplished and
the bill was reported back to the SEN
ate Senator Glenn attempted to have
this provision eliminated by a mo-
tion that the senate should not con-
cur in the Price amendment. This
motion was voted down and the
amendment stood.
The lobby which has been main
tained at the capitol to oppose the
guaranty law, was conspicuous for its
absence prior to the opening of the
session, but one or two bankers were
floor when President Pro Tenn Porter
called the senate to order at o'clock.
Bill Is Rushed.
After the call of the roll Senator
Stavely obtained a suspension of the
rules for the third reading of S. B. No.
521. creating an Inheritance tax. Sen
ator Stewart. who opposed the bill, got
busy among the senators during the
reading and when the vote was taken
the bill was passed by % to a.
The senators voting against the bill
were: Caldwell, Chapman, Denton, Fa-
gerberg, Hodges, Hunter, Lower. Por-
ter, Price, Smith, Stannard, Stewart,
StillingS and Travis.
When the time for the special order
arrived the senate resolved itself into
a committee of the whole on motion of
Senator Cambern to consider the bank
guaranty bill. Senator Chapman pre-
sided over the committee.
Senator Ganse offered an amendment
40 section 1, including established trust
companies, under the guaranty, but
coming under the guaranty, shall not
he permitted to do a security bond or
Eeal estate title guarantee business
Senator Quincy Immediately arose to
oppose the amendment. He declared
the enacting clase of the bill might as
well be stricken out of the bill as to
adopt Senator Ganse's amendment "It
would be the height of injustice to the
commercial banks of the state to al
low the trust companies with their pc
culiar privileges to participate in the
guaranty" declared Senator Quincy.
.'and I hope the amendment will not
receive even respectful consideration"
Senator Ganse in defending his pro-
position said that his amendment ex-
rluded such trust companies as exer-
else privileges that would be dangerous
under the guaranty law.
1t was explained by Senator Quincy |
that trust companies may reorganize as |
state banks if they desire and come in |
under the guaranty. Senator Lower |
stated that the Ganse amendment |
would permit trust companies to come |
in with smaller reserve than is re-
Quired of state banks.