The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-04-09
FIND A WAY OUT.
National Bankers of Kansas
Formulate Insurance Plan.
By This Means Will Guarantee
Their Deposits.
COMMITTEE is NAMED.
Will Perfect Details for Organi'
ZatiOn of Company.
Next Meeting Will Be Held at
Topeka.

The national bankers of Kansas,
through their special committee OF
twenty-five which met in Kansas city,
Kan, Thursday evening, took the first
steps in launching an insurance COM
pany which shall insure bank deposits
This company will be organized under
the regular insurance laws of the state
and will be called the Depositors' Guar
anty company. In this manner the ma
tional bankers can have their depos-
itors insured against loss and still be
within the law as laid down by Attor-
ney General Wickersham early this
week which forbid national banks from
taking part in the Kansas guaranty law
or from in any manner guaranteeing
deposits BY this plan the bankers DO
not guarantee their deposits at aI-the
Insurance company does this in much
the same manner that the banks them
selves are guaranteed from loss by
burglars or bandits.
The following dispatch outlines the
details of the meeting and the plan
agreed upon:
Kansas City. Mo. April 9.-The prob
lem of furnishing protection to depos-
itors in the national banks of Kansas
against failures was practically solved
last night at a meeting of bankers held
in the Mercantile club rooms. Kansas
City, Kan. The plan adopted provides
for the organization of an insurance
company to be known as the Depos-
itors' Guaranty company which shall
issue policies to any and all banks in
the state insuring depoSitors against
loss. The proposed insurance company
will be organized and financed by the
stockholders OF the various nauonaI
banks of the state.
After agreeing upon the plan of in
surance a committee consisting Of
Scott Hopkins, of Topeka; ]. f.
Pringle, of Usage City; ]. c. Morrow,
of Washington; Charles Lobdell, Of
I.arned and Charles Sawyer. of Norton,
was appointed to perfect plans for the
organization of the company. This
company is to get busy at once and just
as soon as it completes the preliminary
work it is to call meeting of the gen.
eral committee at which the company
is to be organized. headquarters de-
cided upon and arrangements for the
opening of business agreed upon.
The meeting of the bankers today was
of an extensive nature, no one but rep
resentatives of national banks of the state
participating The general committee was
composed of three national bankers from
each congressional district in the state
with the exception of Bale Waggener OF
Atchison. In the discussion no antagonism
was shown toward the bank guaranty
law passed by the last legislature; 1t was
conceded, however. that inasmuch as the
national banks could not come in under
this law il would be necessary for them
to devise some manner in which their de-
positors could be furnished insurance. The
plan to organize an insurance company
the sole object of which shall be to in
sure deposits was indorsed. The company
is to be formed under the insurance laws
of the state and will issue policies to
banks insuring the payment of all claims
of their depositors in case of a failure.
1t will not be compulsory for a bank to
take out policy In the company, but it
Is generally conceded that all national
banks especially will be forced to insure
in the company from a business stand
point. The business of the proposed COM
pany will not he confined exclusively to
the national banks but any state bank so
desiring will be eligible to obtain insur-
ance. The next meeting will likely be
held in Topeka.