The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-03-31
Governor Stubs and Mr.. Jack.
son See Attorney General.
Kansas Delegation in Congress
Also Present.
OBJECTIONS URGED.
Most Serious Refers to the
Bank Receiverships.
Kansans Say That They Can
All Be Answered.

washington, d. c., March 31.-GOv-
ernor Stubbs, Bank Commissioners
Dolley and Attorney General Jackson
of Kansas had an audience with Presi-
dent Taft, discussing with him the
participation of national banks in
Kansas in the provisions of the
guaranty deposit law of that state.
After the interview, Governor Stubbs
said:
1--WE are more than pleased with the
results of our conference. The presi-
dent is friendly to our proposition and
I am satisfied that the disposition OF
the administration is to do the best
possible for us under the law"
Arrangements were made for
meeting this afternoon in the office
of Attorney General Wickershan, at
which the Kansas officials will present
their cases and endeavor to convince
the attorney general that there is no
reason in the federal law why the
comptroller of the currency may not
authorize national banks doing busi-
ness in Kansas to take advantage OF
the guaranty deposit laws of that
state The Kansas officials are very
sanguine as to the outcome of the
conference. Attorney General Jackson
saw CODY of the brief prepared in
the case by the department of jus
tice. He was pleased to find that the
departments analysis of the law in
the case corresponds closely to his
own. "Not a question is raised we
can not successfully meet" Governor
Stubbs said.
Mr.. Jackson's Brief.
Attorney General Jackson has
finished his brief. 1t consists of about
10000 words and is an exhaustive
argument in support of the contention
of the Kansas officials that national
banks legally can participate in the
Insurance plan. Mr.. jackson submit
ted it to Governor Stubbs, Mr.. Dolley.
Senator Curtis, Representative Miller
and Representative Murdock. They
agreed that he had made an excep-
tionally strong presentation in behalf
of the national banks.
The hearing this afternoon is attend
ed by all of the members of the KAN
sas delegation in congress. Mr.. Fow-
Ier.- an assistant attorney general. and
representative of the comptroller OF
the currency.
Treasury officials are deeply inter-
ested in the efforts of the Kansas Off
cials to extend the provisions of the
new law to national banks. They in
sist. however that after nearing the
arguments Attorney General Wicker
sham will hold that the opinion OF
Attorney General Bonaparte applies to
the Kansas law as we'll as to the Okla
homa law. Mr. Bonaparte held that
the national bank act prevents bank
from diverting any part of its capital.
surplus or profits for guaranty pur-
poses and treasury officials say there
is no difference between diverting
funds for guaranty purposes and for
insurance purposes.
Concedng that the opinion of Mr..
Bonaparte does not apply to the Kan
sas law. those officials assert there is
section of that law that would abso-
lutely preclude the possibility of an ex-
tension of the law to national banks
This is the section regarding the ap-
pointment of receivers. The national
bank act nrevides that when a bank is
unable to meet it's obligations the
comptroller of the currency shall ap-
point a receiver. who shall convert it's
assets into cash and in the form sf
dividends distribute the proceeds pro
rata among all of the depositors. Tn-
der that act there can be no such thing
as a preferred creditor
The Kansas law, as construed at The
treasury, directs the state bank cGmnis-
sioner to take charge of any bank, in
cluded in the insurance plan, that may
close it's doors. 1t is contendeds here
that if the Kansas law were extended
to national banks there would be q
conflict not only in the receiverships
but also in the laws governing the liqui-
dation of the bank, as. under the Kan
sas law, there would be preferred credi-
tors When told of these criticisms Mr..
Jackson said that he would answer all
| of them to the satisfaction of the at
torney general.