The true northerner., 1909-01-08
investigation of 1905. These laws are

accomplishing he iesui IS "A. by
their fiame.s, and it is a matter 81
coneTatulatiop L.. .lichigan Lad an
important part in their preparation.
Thus far no change. Gside from one or
two Of purely technical nature and
of minor importance have been found
desirable.
IAN important branch OF Insurance.
that is now receiving careful attention
is that transacted by the fraternal ben.
eficiary societies OF the country Mil
lions Of the common people depend
solely upon these societies for the
funds which are to sustain and protect
their loved ones after they have been
summoned from earth II is essential
that the societies be speedily piaced
upon "A basis that will insure their
perpetuity and save from bitter disap-
pointment countless thousands of wild.
ows and orphans throughout our state
and nation II goes without saying
that societies which fail to make ade-
quate provision for the fulfillment OF
their contract obligations cannot long
survive, and ii is therefore the duty
OF the state to insist. through legisla-
tion. that these organizations deal
faithfully with the public and adopt
rates that will fairly insure their per-
petuity. Some Of the laws of Michigan
governing the investments Of insurance
companies were enacted nearly a half
century ago These laws need amend
ing in order that they may conform
to existing conditions.
State Banks.
"During the year 1908 the cash ani
legal reserves required of state banks
by the banking law have, as a whole.
been we'll maintained Five reports
have been called for and received dur
ing the year by the state banking de-
partment. which has made G9N exam
nations Of state banks and trust COM
panies under its supervision. IN addi-
tion to these examinations the direct
ors Of each state bank have made two
examinations of their respective banks
during the year and reported the same
to the department In several cases
special reports have been called for.
and twice during the year reports of
bank and trust company have been
eXacted
These various reports and eXami-
nations have been the subject Of COM
munication along the line Of special
comment and criticism, and the COM
missioner Of banking reports that in
but few instances has it been neces-
IN IN hn Of
any of the drastic provisions Of the
law where disregard Of the law was
manifested. The constant effort Of the
department has been to increase its
efficiency and the effectiveness of its
examinations and thereby strengthen
the institutions under its supervision.
Regulation of Private Banks.
During the legislative session Of
1905 and again in 1907 | urged TIE
amendment of law providing for the
regulation of private banks
"The need for the enactment of
law for better informing the public as
to the nature Of private banks if not
for better protection Of depositors in
these so-called banks is imperative
These concerns hold themselves out to
the public as banks and there can be
no doubt that a large portion Of the
general public labors under the misap-
prehension that they are regulated and
supervised by state authority In pre-
vious legislatures most OF the oppoSi-
tion to legislation designed to give the
public needed protection came from
persons who were financially interested
in private banks The hostile attitude
of these proprietors constitutes the
most potent reason for supplying the
legislation in question"
On this subject the governor con-
cludes by saying that while private
banks may be a necessity in the small
communities. the public should be in
formed Of the nature Of such institu-
tions by requiring the word Private
to be prefixed to the title.
Regulation of Stock Brokers.
"Your attention is directed to the
desirability of enacting a law for the
regulation of the business Of stock bro
kers. During the past year we have
witnessed the failure of a concern
which transacted a large brokerage
business within this state, Men of all
professions and callings. men of large
means and men of small means and,
as the record discloses, working wom-
en-, paid money into this concern up to
the very last day Of it's existence in
full reliance upon its supposed pecu
mary responsibility and in the belief
that 1t was conducting it's business
according to the methods usually en-
ployed by reliable firms conducting
that class Of business Developments
showed the concern to which reference
Is here made to have liabilities run
ming into the millions with few assets
save those pledged to few creditors.
and further that 1t was insolvent for
a long time before its business was in
terrupted by the appointment Of re-
ceiver.
"The business of stock broking Is in
some respects similar to that of
bank. The business affords opportu-
nifty for indulgence in practices which
are reprehensible and should be reg