The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1909-09-22
BAI kerr!
NEED ]
!NoTAaLE CONTEST uNEH Pro.
VISIONS or 6 liARAhTElEs
lin KANSAS ENDS.

+ CHICAGO. Sept. Tl1e last re- rel
qulrements put pom the state shan u.
|of Kansas byi the a eposits guarantee
law has been met BY proyi sions made 1ls
BY the banks for eua tee sbonds ~
cover deposits or State fund S sin over
400 institutions. i, 5;s
This was d disclosed by the announce:
ment here by ". lson; secretary
of the Kansas State Bankers 4AA $40 h
citation. that arrang ements had been cen \
concluded for bonds Of q 3tid eilty " md d
ling company. the Censoliia CaslIals'
ty$ Company OF Chicago OF which Rob
CERT $B. Armstrong T, formerly assistant asst nj
secretary in the treasury. Is president
In. doing this the Kansas ba an .
strucl, a blow for the upbuilding OF
insura funds in the West and \ for e
checking their flow to The Golfers Y of !
the East and OF Europe. SS Il
The announcement OF e Secretst-y
Wilson stated: "This decision was :,
made after considerable thought and md
Investigation OF the; many applicants
before the executive council .:f The
ConsolidatedS Casualty Compan Of
Chicago has been endorsed by the
executive K council of our associa lion
for, the purpose in writing depository
bonds sforEthe State banks of KANSAS
The announcement was conf at
the offlces OF the company II; this city.
This wholesale arrangement for
guaranty bonds for: over 400 State
banks scattered Sall over Kansas, one
Oh the most sweeping results of the
law recently enacted. is the outcome
Of ne gotIations begun some time ago
with bonding companies all over the
United States, all that arc doing busl-
ness in Kansas .Illstenl of competli J.
tion between the forty odd old line
companies or the Fast. however,
there was seen to be nm "A sreement
on rates to which the Consolidated
Casualty Company. 3 NJ new 50 900. 600
corporation that was gorEaniZed Us a
protest against eastern riominanceEe lin
the Insurance field, refused to become
q party. The contest at once became
notableEune in which The iindepend-
emit spirit of alls Kanshs became
aroused by the pressure that was
brought to bear in a hundred ways to
sustain the prestige Of Eastern 'nsnr-
ance interests. The western q COM
pany. after ia searching scrutiny OF
Its financial responsibility was decid-
ed upon. q: j
with this last step settled the Kan 4
sas bank guarantee law promises TO
be formidable example to the bank
ing Interests which are opposing Its
emulation by Other States. President
Armstrong OF the Consolidated Cas- as
ualty Company. himself . member OF
| the American Bankers Ass ochtions
AFTER an examination of the REQUIRE
ments of the Kansas law, said T41et
bank guarnntee law is a good one.t
some OF its enemies say That there Is
only small fund ION hand to protect
millions Of deposits. The strength Of
| the plan lies In the fact that It Is "a,
preventive, and not remedy that
seeks primarily to make everything
| all right after the bank has failed I
They may never have to use the fund
at all. 5TSIts success dependb on the 1t
men WON they make their commits
sioners OF banking and the way they.
enforce the rigid eFtnination laws =
The Kansas plan bas srtimina ted ell
the weakness OF the Oklahoma bank
guarantee law. ", 3s1ff
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RACES 5ATt5ALLENTOWN. x go 5s3i
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