The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-04-05
MAYCALLSESSION
Legislature Will Re Called To-
gether-Perhaps.
Purpose to Fix the Bank Guar
anty Law.
A POINT IN QUESTION
That Refers to Closing Affalrs
OF National Banks.
Commissioner Foley Thinks
Kansans Proved Contention.

If Attorney General Wickersham, IN
deciding the relation of national banks
to the Kansas guaranty law, VIII lay
down any rule by which national
bank can possibly enter the guaranty
association, or If he interprets the ma
tionaI banking law to the ERECT that
the national banks can join IN the
Kansas plan of guaranty if the Kansas
law is changed in that section relating
to the winding up of the affairs OF
failed national bank, why, then, and In
that event Governor Stubbs VIII call
special session of the legislature Tor
the purpose of having the law changed
to meet with the regulations of the at
torney general The governor so ex-
pressed himself in Washington after
the hearing before Attorney General
Wickersham.
Then there is another method of
meeting the objections of the govern
ment authorities to the national banks
guaranteeing deposits and that Is for
the state to brief the case and SEND II
to the supreme court for an interpreta-
tion of the law relating to winding up
the affairs of failed national banks.
Attorney General Jackson says that
this will be done if necessary. OF
course the whole matter and it's rem
edy hinges on whether or not the at
torney general of the nation shall rule
that national banks be allowed to
guarantee deposits under any circum-
stances. He has gone on record as de-
cfaring that the only barrier the Kan
sas law offered to national banks TAX
ing part in its provisions was that it
provided that the state bank commits
sioner should have control of the wind
ing up of the. affairs of failed national
banks. This the government will not
stand for. The comptroller of the cur
rency takes charge 70 the affairs of a
failed national bank in all cases.
Attorney General Jackson, in his
brief before the department of justice
last week, agreed that the state of
Kansas would take no part in the con-
troll of a failed national bank, beyond
paying off it's Indebtedness in what
ever sum the comptroller of the cur.
rencey should declare remained due
after all it's resources had been ex-
hausted by the receivership and de-
clared that this was the intention of
the law and the legislature that passed
that law. Bank Commissioner Dolley
also bore witness along the same line.
The whole question seems to hinge on
this issue. The change of a half dozen
lines in the new Kansas guaranty law
relating to the winding up of the af-
fairs of failed national banks in such
fashion as to make it clear that the
state shall not usurp any of the perog-
atives of the comptroller of the cur
rency. would have left the government
opposition to the national banks TAX
ing part in the law without a leg to
stand on.
Bank Commissioner Dolley held a
levee in his Office this morning for the
newspaper men and talked interesting
" and entertainingly of the trip and
the conference in the offices of the de-
partment of justice. Mr.. Dolley paid
high tribute to the mastery manner
in which Fred S. Jackson attorney
general for Kansas, handled the case
for his state before the best LAWYERS
in the nation.
His argument was sound and mas
terly," said Mr.. DolIey, "and 1 was
proud of him. When Mr.. Wicker
sham, who is one of the great lawyers
of the country, interrupted with many
questions, Mr.. Jackson answered
promptly and to the point He was
as cool and pleasant and masterful in
that assembly in the capitol building
as l ever saw him while arguing a case
here at home. Mr.. Wickersham paid
high compliment to the splendid
manner in which the case was pre-
sented. Mr.. Jackson spent all night in
the law library of the capitol before
arguing the case the next day and was
armed at all points.
There was one interesting thing
that Mr.. Jackson found in that library
In relation to the guaranty of bank
five years ago the state of Vermont
guaranteed bank deposits and only
did away with the system after the
national banking system was estab-
iished. Then again the guaranty of
bank deposits has been considered and
practiced to some extent in England
for the past one hundred years
There was case outlined in one of
the law books of the library in regard
to insurance companies insuring bank
deposits. 1t seems that there insur-
ance companies insured a depositor's
money in the bank from loss just as
they would insure his property from
loss by fire.
Kansas Proved Case.
Mr.. Doiley was emphatic in his
statement that the Kansans had
proved their case and that the only
objection Wickersham offered to the
law was the doubtful construction of
that section in regard to whether the
state or the nation should assume con-
troll of the affairs of a defunct nation
al bank. Also that Wickersham had
as being we'll within the legal term
of the national banking law. Indeed.
the attorney general at Washington
spoke in terms of praise of the Kansas
law and the practical and concise
manner in which it was drawn. find
ing no fault with single line or sec
tion except the one noted above
Speaking of the trip and the visit
in Washington, Mr.. Dolley said that
the Kansas delegation had a fine time
and were well treated by everybody.
especially by President Taft and his
political advisor. Mr.. Hitchcock.
Mr.. Dolley went at length into the
details of the interview with the presi-
dent. The Kansas delegation was
given an Interview at ? o'clock in the
afternoon in the cabinet room Thev
found two hundred visitors ahead of
them. but were ushered by a side door
into the presidents office by Secretary
Carpenter and Immediately introduced
to the big man from Ohio
Taft Was jolly.
Mr.. Dolley said that the president