The Topeka state journal., 1909-03-27
GO WELL ARMED,
Stubbs, DOlley and Jackson
Leave for Washington.
Attorney General Has a Well
Prepared Brief.
STATES THE POSITION.
Shows 1t Doesn't Conflict With
National Bank Law.
Not Fair to Those Institutions
to Deny Participation.

The Kansas official triumvirate, con-
sisting of Governor Stubbs. Bank
Commissioner Dolley and Attorney
General Jackson, left Topeka this af-
ternoon over the Santa Fe for Wash
ington, d. c., to present arguments to
President Taft and the attorney gem
eral of the United States in favor of
allowing the national banks of the
state of Kansas to participate in the
Kansas bank guaranty law.
The official trio left the city in light
marching order unaccompanied by
any staff of colonies or executive at
tendants-
William Allen White will join the
party at Chicago and go on to Wash
ington.
Attorney General Jackson carried
with him the brief in the case which
will be presented to the president and
attorney general setting forth the rea-
sons why the comptroller's recent rul-
ing, refusing national banks permis-
sion to participate in the state guar
anty law, should be reversed.
In this brief Attorney General
Jackson compares the provisions of
the Oklahoma and Kansas guaranty
laws and points out their differences.
He cites opinions of the United States
supreme court to the effect that all
general operations and dealings of ma
tional banks, including contracts, are
controlled by the state laws when
such laws are not in conflict with fed
eral laws Mr.. Jackson calls atten-
tion to the fact that insurance against
insolvency is one of the Oldest kinds
of insurance known to the common
law. National banks now are per-
mitted to pay burglary insurance and
insurance for the fidelity of employees
and he declares he can perceive no
reason in law or business policy why
national banks should not be allowed
to take out insurance against pos
sibility of loss to its depositors.
Mr.. Jackson mentions that the attor-
ney general of the United States in his
opinion on the Oklahoma law objected
to the requirement compelling national
banks to pledge their assets to guaran-
ty the debt of a third party. The Kan
sas law, so the brief declares, is not a
guaranty. Under the Kansas law the
contract is one OF Insurance rather than
of guaranty.
ITO deny the national banks the right
to enter into any mutual association
for the purpose of accomplishing the
things necessary to its local business,
argues Mr.. jackson. would be to
abridge the power and efficiency of such
association and eventually destroy them
as federal agencies.
Attorney General Jackson further ar
CUES that to deny the national banks the
right to participate in the necessary To-
cal practices of the banking business of
the community in which they are loca-
ted, is fraught with more danger to the
government and business generally than
would be incurred by allowing them to
participate in a system of business
founded on sound principles.
In conclusion Mr.. Jackson points out
that there is no law forbidding national
banks to participate in such a privilege
as that proposed by the Kansas law; the
question being one of business policy.
He explained the application of the
Kansas law and mentioned that in the
case of a bank having 100000 deposits,
it's liability under the Kansas law would
amount to only 81 900 in four years.