The Topeka state journal., 1909-03-03
BANK BILL PASSES
Kansas Will Have Bank Guar
anty Law After All.
Both House and Senate Agree
to Conference Report.
FEW CHANGES MADE.
Trust Companies Not Included
in Law.
Savings Deposits Up to $1OO
Are Included.
Not a Ripple in Either House
Attends Passage.

Another platform pledge has been re-
deemed by the state legislature. in the
passage by both house and senate this
morning of the bank depositors' guar
anty law.
This bill was finally passed by both
houses upon adoption of the report of
the conference committee relative to
the bill.
just prior to the presentation of the
conference report in the senate this
morning the favorable action of the
house on the report was messaged over
to the senate.
The report was submitted to the SEN
ate by Senators Price and Quincy, the
senate conferees, and it was adopted
forthwith without any debate or dis
cuSsiOn whatever, all the forty senators
voting for the adoption of the confer
ence report and the final passage of
the bill upon roll call.
This Is the Second Report.
The report submitted this morning
was the second conference report on
the bank guaranty bill The only
agreement were allowing per cent in
terest instead of 8 per cent, on certifi-
Gates issued to depositors in insolvent
banks on checking accounts; also IN
removing the limit of $4,000 on interest
bearing certificates of deposit that may
be guaranteed under the act, and In
changing the date when the act be-
comes operative from May 30 TO June
30, 1909.
AS passed the bill permits the guaranty
of savings reposits, not subject to check,
up to $10 and the guaranty OF time
certificates of deposit bearing not more
than per cent interest, without reS@5Lu @ u i
to the amount of the certificate The
provision permitting new banks to come
in under the law, in towns where the
established banks refuse to accept the
privileges after six months, Is retained,
and depoSitorS in insolvent banks VIII
receiYe certificates bearinF per cent
interest on open accounts AID not more
than 5 per cent Interest on time de-
posits bearing interest.
Senator Quincy, who had led the op-
position to the guaranty bill on the floor
of the senate, voted in favor of the Dill,
but in doing so filed the following pro-
test:
''I vote for the conference report on
senate bill No. $40 for the reason that
81 recognizes the principle of mutual
guaranty of bank deposits for which
] have long stood, but l cannot en-
dorse many of its provisions and en-
phatically protest against the guaranty
of any of the interest bearing invest
ments of depositors, which IS not in
cluded in my party's platform, and
which is the rock that might easily
wreck not only the guarantee fund,
but the entire banking system of the
state, this is the only bill that We have
that future legislatures will rectify some
of it's imperfections."
Senator Robertson. in explaining his
affirmative vote. said that While he is
not entirely satisfied with the bill, yet
he voted for it because he felt it is the
best bill that can be obtained at this
session.
After the vote had been announced,
Senator Cambern, chairman of the
banking committee, arose and thanked
Senator Quincy for waiving his person
a and private opinions concerning a
guaranty law and voting for the DILL
Continuing he said: when a former
conference report on this bill was pre-
Sented here the other day, the senator
from Saline expressed the opinion that
the senate conferees had 'swapped a
bunch of ponies for string of beads
] am of the opinion that in this second
conference the senator from Saline has
swapped a bunch of fine big Percheron
horses for a string of beads.
" Senator Quincy retorted that he be-
Jieved the second conference committee
had given the bunch of Percherons to
the depositors if such had been the
case,
In the first conference the conferees
agreed to limit the interest bearing
time certificates of deposit to $4,000
for any one person. But this second
conference took off that limit entirely.
lust prior to the noon adjournment
the senate went into executive session
TO elect a new Sergeant-at-armS for
the senate to succeed Guy A. SwaI-
low. who resigned. Fred Lewis. of
Marion. Kan, was elected to the posi-
tion. Mr. Swallow has gone to Fort
I,eavenw orth to take up his duties is
postmaster at that place. This is the
first executive session of the senate
since the opening of the present ses-
sion.
ON motion of Senator Chapman
the senate advanced and passed the
bill making an appropriation of $1,000
for caring for the grounds upon which
the historic Pawnee Rock is located.
The report of the conference COM
mittec on the bank guaranty bill
recommends that the provision re
a wear before coming in under the
guaranty law, be amended so that
The limitation of one year shall not
nreyent such participation by a new
hank at any time in any city or town
in which all banks shall have
neglected or failed TO become
Guaranteed banks under the provision
of the act for period of SIX months
fter the taking effect of the act.
nositor in an insolvent bank will be
given certificate upon proof of claim
hearing per cent interest per annum
,,non which dividends shall be entered
when paid. except where a contract
rate exists on a deposit, in which case
the contract rate shall prevail in the
certificate.
THE conference committee struck
out original section and substituted
posits which do not bear interest and
tue following deposits only shall be