The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-04-06
CAN'T TAKE PART.
National Banks Must Keep Hands
Off Guaranty Plan.
The Attorney General Decides
Against Kansas Contention.
NO SPECIAL SESSION.
Would Be Impossible to Meet
Government Objections.
Attorney General jackson Is
Greatly Disappointed.

The invasion of Washington by the
Kansas state officials in the interest
of the national banks joining the
guaranty association was repulsed at
every point and with severe losses to
the besiegers. The eastern idea pre-
walls while the western ism is recog-
nized only in the west. The nice re-
ception given the Kansans by the adj
ministration and the kind words of
brotherly love and promises of fair
play were only roses which turned to
ashes in their hands.
Governor Stubs, who remained in
Washington to learn the worst, learn
ed it last night and wired his private
secretary in Kansas as follows:
Attorney general has decided that
national banks cannot participate
without an act of congress"
A special session Of the legislature
to amend the law as outlined by the
smooth talking but hard hearted Mr..
Wickersham, attorney general for the
United States, is now out of the ques-
ton, and a ruling of the Kansas SUI
preme court to interpret the meaning
of the law is now a vain thing.
Mr.. Wickersham said all the nice
things he could think Of about the
Kansas law and then he hammered
that law On the head with a brickbat
until life was extinct. The Kansans
made a good fight but, in the light of
Understands ruling, they never had
chance at any stage of the game.
They were rank outsiders. Last weeks
reception at Washington was only the
sugar coating that hid the poison in
the pill prepared for them.
President Taft told his visitors that
they should have fair trial without
prejudice. Wickersham, the trial
judge, told them that they had made
a strong case and that only one little
point interfered with their winning
signal victory. But when the Kan
sans agreed to remedy the only de-
feet pointed out in their law the at
torney general ruled that their entire
law should go to the junk heap so far
as official Washington is concerned.
The only chance now for national
posits is by the organization of a de-
post insurance company, and it is
likely that this will be done.
While the Kansans were in Wash
ington they were told by the govern
ment officials that their law was o.
K. in every particular except that sec
ton which provided that the state
bank commissioner should take
charge of the affairs of failed national
banks. The government would not
stand for any one. but the comptroller
of the currency taking charge of the
affairs of a national bank. Governor
Stubs had agreed to call a special
session of the legislature to remedy
this defect in the law But the final
ruling Of the attorney general was not
in keeping with his assertions directly
after the conference. He was just
playing with the westerners.
Attorney General Jackson and Bank
Commissioner Dol1ey, who came back
from Washington, Sunday were very
confident Monday that they would get
a favorable verdict in the case basing
their hopes on the assertions of Presi-
dent Taft and Wickersham, his attor-
ney general. Mr.. Jackson was in
dignant over the matter and spoke
plainly as follows:
81 believe now as I have believed
all along that the adverse decision is
not based upon law, but upon pre-
judice against the guaranty idea. That
is all the ground there can be. The
east and the federal officials as a rule
are opposed to the guaranty idea and
that. I believe, is responsible for this
decision. I may have more to say
later. but not now"
Mr.. Dolley bowed to the storm,
speaking as follows regarding the ad-
verse ruling of the smooth talking of
Mr.. Wickersham:
ct must confess I am surprised. I
believed that the decision would be
whatever to be done now. I was
satisfied that if the federal officials
decided against us at all they would
decide in the manner they have; that
an act of congress would be neces-
sary. That precludes any possibility
Of remedying matters by the calling
of a special session, Of the legislature.
So far as I know there is nothing to
do but wait for congress to act"