Omaha daily bee., 1909-03-23
STEAM ROLLER
CATCHES TAYLOR
Custer County Man Tries to Have
Party Give the People What
it Promised.
BANK GUAANTY GOES THROUGH
Men Who Vote Him Down Admit His
Structures Are Just
PYRAMID BANKING Is POSSIBLE
Also Charges National Bankers Die
tated Terms of Bill.
OMAHA CHARTER BILL SIGNED
Joint Committees Agree ON Tuesday,
March Thirty, ns Day for Ad-
tournament, hut Some Think
That Too Early.
BANK GUAANTY GOES THROUGH
Men Who Vote Him Down Admit His
Structures Are Just.
PYRAMID BANKING IS POSSIBLE
Also Charges National Bankers Die
tated Terms of Bill.
OMAHA CHARTER BILL SIGNED

That Too Early.
CFrom a staff Correspondent
LINCOLN, aMrch -(Speclal)-Ovor the
protests Of w. j. Taylor OF Custer county,
who denounced the measure having been
amended To suit the national bankers, and
as not being the law promised the people Of
Nebraska by the democratic party, the
house concurred in the senate amendments
to the banking bill late this afternoon. 1t
was a case of working the steam roller, and
1t went over Mr.. Taylor by a vote Of 50 to
43 on his motion not to concur in three of
the senate amendments.
Mr.. Taylor objected to the reduction made
by the senate in the initial levy against the
banks TO create the guaranty fund from
one-half of 1 per cent to une-fourth of 1
per cent. He ebojcted to the action of the
senate i'm striking from the bill the amend
ment adopted by the house providing that
stockholders i'm a bank must own other
property of equal value, and he objected to
the decrease In the reserve to be held In the
banks from 70 to 10 per cent
He was opposed by Graft of Cunning.
chairman of the banking committee which
reported the measure; Bowman of Nuckolls,
a member of the committees; Wilson of
Polk and Clark of Richardson, both bank
ers.
THE tearing down of the BILL" said Mr.
Toylar has been done in the interest of
the national banks. 1t has been trimmed
down so the state banks will not have any
edge over the national banks"
While Taylor was making his speech SEN
ator oVlpp. member of the senate banking
committee, was on the floor of the house
working with the members and other mem
bers of the house who held lever on the
steam roller left their places to such an ex-
tent that the speaker had to call them to
time and order them to remain in their
seats.
string of Banks.
In his statement Taylor told the members
that the house should have the speaker ap-
point conference committee so that the
bill could be put In shape that would square
with the pledges made to the people
Then he moved to the blackboard and
showed just what could be done under the
bill in theway of organizing string banks.
He started out with $4,000 bank at Grand
Island. Under the law fourteen men could
organize that bank with about 5000 each.
One-thrd of the capital could be used In
the erection OF banking building. That
would leave S333S3. Under the bill eight
Nus
| 100000. Under the law 80 per cent Of the
capital could be drawn out by the stock
holders to start another bank at Ravenna.
That would start a bank with a capital
| stock of $4,000. Spend one-third of that
for a building and 1t would leave Sl6,666
! Under the law 90 per cent of the capital
stock of the Ravenna bank could be used
| to start bank at Broken Bow. Take $1O,-
! 900 for the Broken Bow bank. Spend one
third of that capital for building and that
would leave 1866 in the Broken Bow bank
Then take 5000 from Broken Bow and bor-
row 5000 from a ''brother-in-law," and
the fourteen stockholders could establish "A
bank at Merna. Put up a building at Merna,
and that would leave, after paying back
the brotherin-aw, s1666.
This would leave in cash I'm all the banks.
said Mr.. Taylor, total OF sls,222. with
that much cash, when the banks began to
do business they could loan a total of
$76O,OOO
Wilson OF Polk inquired how the bankers
would be able to give security for the
money they borrowed from the banks
Under this law this money may he
loaned to the stockholders, with their per-
mission" replied Taylor.
Wilson interrupted to say that could be
done under the present law.
But we promised the people a better
banking law" replied Taylor.
Showing up the weakness of the guar
anty provision, Mr.. Taylor showed that a
bank with deposits of 10000 would pay into
the guaranty fund, under the first assess
ment only $3.50.
| Let us leave the matter 10 a conference
committee" concluded Taylor. 80 we can
give to the people real guaranty law,
not law framed according to the IDEAS Of
the national bankers. This law is the ef-
feet Of the lobbying Of the national bankers.
1t was our promise to the people to enact
law which would relieve from the minds
OF the depositors every iota of fear regard
ing the safety of their money
IF have not given you evidence enough
TO show you this is not the law we should
enact then vote down my amendment but
do not do 1t because OF the cries OF traitor.
insurgent and sue hthe like and because
the World-Herald has become hysterical
over the matter"
Steam Roller at Work,
Graft OF Cunning moved that the senate
amendments be concurred In and he and
Wilson and Clark and Bowman admitted
In their talks the bill was not such as thew
could agree to its every provision, but they
argued II was the best that could be Sc
cured under the circumstances.
On Taylor's motion not to concur in the
senate amendments insofar as the three
points he raised the vote was as follows;
Hes-Armstrong. Baker. Barclay. Begole
Black Blystone, Bolts, Brown OF Ian.
caster Bushee. Butt, Bygland. Case, Chan
Cooperrider. Dolezal, Dostal. Eastman
, Ellis. Fannon, Fogarty, Fries, Griffin
Grueber Hadsell. Hospodsky, Howard
johnson OF Adams, Killen. MOore Nattlaton
} Noyes, O'Connell, Raper. Roberts. SabeT son
/ Scheele Smith, stedman. Stoecker, Taylor
of York, Taylor OF Custer-43
No-Allen, arrett Bates. b land. Bowman N
Boyd, BrOdrick, Brown OF Sherman, carr
, Clark, Connolly. Evans, Gates, Gerdes
Graft Groves. Harrington, Hector Feffer.
nan, Henry, Holmes, Humphrey, Johnsor
OF Burt, Kelley, Kotouc, Kraus Kuhl
, Lawrence, Leidigh, Lux, Marlatt, Miller
Murphy McVicker Pickens, Pilger, Ritchie
SchOettger, Shoemaker. Sink, Sksen Snyder
Swan Taleott. Taylor OF Hitchcock. Tales