The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-02-11
OklahOman Men Here to Oppose
the Law.
ARE NOT SATISFIED.
Tell of Weakness of Law in That
State.
Governor Stubbs and Ex- Cover.
nor Bailey in Controversy.

Oue OF the most important meet
ings from the standpoint of public in
terest, that has been held at the
capitol since the beginning of the
present session of the legislature was
the hearing in the senate chamber
last night relative to the proposed
bank deposit guaranty law. The
hearing was before the joint COM
mittee of the senate and house on
banks and banking and the meeting
was distinctly notable for several
reasons.
For one thing there was represented
in the crowded senate chamber prob
ably the greater portion of the actual
money wealth of Kansas, prominent
bankers and men of large affairs from
all parts of the state being present.
Also at this meeting there was
crystallized and vigorously presented
all the opposition OF the banking in
terests of the state toward the pro-
posed guaranty deposit law. And in
addition it was at this meeting that
Governor Stubs publicly took his
place on the firing line" and siren
vocated the fulfllment of one of his
own and his party's principal pledges
made to the people of this thriving
commonwealth during the last cam
paign.
The pubIic's concern in the matter
under discussion was evidenced by
the attendance, for not only was the
floor of the chamber packed with
bankers, senators and representatives,
but also the galleries were we'll filled
with private citizens who as in
dividuals were interested in hearing
both sides of the question affecting an
affairs.
Opposition Is Concentrated.
| 1t developed at the meeting that
the opponents of the measure have
concentrated their opposition against
single feature of the proposed law
deposits. The sentiment was univer-
sally expressed even by the opposition
that the handwriting IS seen on the
wall;" that the present legislature is
bound to enact a guaranty law willy
nilly and there is no wisdom in the
opponents throwing themselves un-
der the wheels. SO with reluctant
/ acouiescence in the In evitable the
opposition interests have selected one
provision against which to direct their
attack in the hope that they may
gain one point.
On the other hand. Governor Stubbs
and the friends of the bill are en-
phatically' determined to make no
concessions, they want the whole bill
enacted; practically just as 1t has been
drafted by the joint committee and
the interest clause will not be given
up without hard fight.
Guthrie Banker Present.
The opponents of the bill imported
from Oklahoma. Mr.. ]. w. McNeal.
banker of Guthrie. and brother OF
State Printer T. A. McNeal. of this
city, and Mr. D. w. Hogan. also a
banker of Oklahoma City. Both gem
tlemen made speeches against the
guaranty law. basing their arguments
upon the effects of the law in their
own state.
Mr.. McNeal is president of the Ma
tional Bank of Commerce in Guthrie
He was formerly pioneer settler in
Kansas and conducted bank at Medi-
cine Lodge until 1889. Under the law
in his state he said 1876 state bank
charters were issued last year. of this
national banks reorganized as state in
stitutions and IA were reorganized
state banks. The average capital of
these banks is about $4,000. the nation
al banks reducing their capital on re-
organizing. The increase last year in
state bank deposits was S12,000,000, three
million of which would have been
counted as national bank deposits one
year ago. The national banks in the
state have not increased in deposits.
He declared that under the Okla
homa guaranty law men start banks
with no experience and little capital.
The new law mas not injured national
banks with old customers; but 1t puts
all institutions on a common level and
an old institution with its reputation
for honesty, stability and careful man
new bank that has only the guaranty
law to back it. Mr.. McNeal favored an
insurance proposition based on good
and bad risks instead OF a guaranty
law.
He argued that in case of losses in
one year amounting to $5000000 caused
by bank failures in the state. the guar
anty fund of few hundred thousand
dollars would not near meet the pur-
poses for which it was provided. He
thought it Is not fair to make good
banker stand good for the errors of
dishonest or incompetent banker. The
principle of the guaranty plan, he said.
is radically wrong and cannot be made
right; that principle one man may
be held for the debts of another.
Mr. Hogan proved an interesting talk
err He said he has been in the bank
ing business in Oklahoma City for some
time and he explained the law of his
state 1t provides. he said, a guaranty
fund but no one seems to know where
this fund amounting to more than
So52 900 is kept 1t is true, he said,
that not a bank in Oklahoma failed
during the panic nor have any failed
since. The fact is, he said, the law was
passed when it was not needed and II
isn't needed now. And he added. II
don't believe you need it in Kansas
now.
Old Bankers Quitting.
''Many old reliable bankers he said.
.'are dropping out of business and their
places are being filled by new men with
no record for honesty behind them. and
they appeal for business with big signs
on the windows. This Bank Guaranteed
by the state
the established bankers have endeavored