The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-02-11


omitted from the law
Gov Bailey admitted the fairness of
senator Quincy's proposition that the
! deposltor who wanted interest on his
| money should be given interest, but II
he wanted it guaranteed no interest
would be paid, but the deposit would
| be guaranteed
Stubs Replies to Critics.
At the request of Chairman Cam
perm, Governor Stubs took the floor
In beginning he said:
Human nature is about the same
the world over. The bankers don't
| intend to give the depositors anything
they don't have to. They do have to
| give something to the state and nation,
| but not to the individual
Ex-Governor Bailey interrupted the
governor with question relative to
forcing banks to give up something
and the governor replied with some
asperity:
mo. sir; this act does not force any
Dank to come under its provisions 1t
is an enabling act comforting benefits
get in under it, for I have heard you
over in the committee room asking
that it be extended so as to take in
trust companies.
II am a banker and I believe my
banks are as good as gold and the
banks of the entire state are on a
substantial basis. But the depositors
are entitled to have a guarantee that
they will get it back. You bankers
want two names on a note for the
same reason. If the banker uses the
depositor's money for six months he
is entitled to have interest on his de-
post for such use.
II have heard, in the several weeks
this matter has been under discussion.
no substantial rea son why there should
terest bearing deposits and open &C
counts. You might just as we'll
knock the enacting clause out of this
Dill If you are going to make that dis
elimination. We hear argumen of
disaster, of dangerous risks and bank
Wrecking if the interest clause is re-
tanned in the bill. Such argument is
all humbug.
1.-The legislators here were all elect
ed on their personal we'll as party
pledges to pass guaranty law and
guaranty law is going to be passed.
declared the governor with emphasis
and determination in his tone and ex-
preston.
ct don't think the Oklahoma law is
to be compared with this bill" he con-
tinued. 1.-THE Oklahoma law, I think,
is a monstrosity. 1 would not sign
such law as a governor of Kansas
Governor Stubs declared that if any
banker offers higher rates of interest
than provided in the law he can be ex-
PEELED from participation in the guar
anty privilege and dishonesty. Specula-
ton and "wildcat"@methods can be
punished under a guaranty law the
same as now.
you say" he went on. that there
will be no difference in banks under
the guaranty act, that all will be alike.
You know that is not so. Banks do
not all have the same capital, the
same kind of officers. or men of the
same financial and personal standing
behind them.
Insofar as have anything to say
about it we are going to have sound
and serviceable guaranty law in this
state and no humbug about it. This
bill has been framed after consulta-
lions with the largest and smallest
bankers in Kansas, and I would rather
see the enacting clause knocked out of
the bill than to see the interest bear
ing deposit clause knocked out"
Governor Stubs said he knew the
bill is not perfection and he expected
the succeeding legislatures can make it
better
Senator Lower asked why not stop at
the interest clause and try the other
features of the bill as a start and see
sidered the interest clause absolutely
essential to a sound bill
II will admit" he said that as a
banker I was not very anxious to get
under this law, but I saw it coming. I
saw What was written on the wall and
so 1 wanted to make the law as good
and as strong as I could"
Governor Stubs answered a number
the act on banking. after which Sena-
tor Stewart suggested that some depos-
tor state his views.
Topeka Men Talk
Mr.. c. P. Bolmer, of Topeka. was the
man of the moment. He thought depos-
tors should be protected and mentioned
he had experienced as a depositor the
grinding of three bank failures him
self. He, however, opposed guarantee
ng interest-bearing deposits, and he
win orfi fol
Of deposit bearing per cent interest
until paid.
Mr.. John r. Mulvane, of the Bank of
Topeka. declared that he is going to
stand hitched." and he believed there
s nothing in the bill to hurt the bank
ers.
Other bankers who opposed the inter
est clause were A. c. Jobe, of Kansas
Pratt county and E. r. Moses Of Great
Bend. e-1-fr Z
peter w Goebel of Kansas City,
Kan, while he did not believe the state
guaranty plan right in principle yet
favored the bill as drafted with the in
clusion OF trust companies. IF we
must have a guaranty law he exclaim-
ID, let US have this bill"
1t was after midnight when the
speakers. auditors and committee be-
came too tired to continue longer and
the hearing was brought to a close.
Include Trust Companies.
At the close of the hearing granted !
20 representatives of trust companies |
Wednesday forenoon, a majority of
he members of both the senate and |
house committees indicated that they |
are in favor of including in the bill, |
rust companies which do not have the |
insurance feature in their charters |
Senator Cambern directed Mr.. Scott |
hopkins, of the Prudential Trust COM |
oany of Topeka, to prepare the amend |
ment to the bill as now drafted, which |
will permit all trust companies in the |
state which do not write surety bonds |
Or guarantee real estate titles, to come |
IN under the guaranty deposit law, the |