Omaha daily bee., 1909-02-05
CONCESSION TO FARMER BANKS
Stockholders Permitted to Borrow
Eighty Per Cent Of Deposits.
BILL FOR TAXING MORTGAGES
Opponents Make n Strenuous FiGht,
but IL Passes the House by
Substantial Majority just
the Same.
tFrom a staff Correspondentl

Whlch would guarantee to the people their
bank deposits as promised by Mr.. Bryan
and his fellow democratic candidates when
they were hustling for votes ins Nebraska,
the house this afternoon gave permission to
the banking committee to hire a lawyer to
do the work.
There was a proviso in the permission
which was that the lawyer should cost the
state not more than 500 for doing the work
of the legislature and Mr.. Bryan.
While many members believe II would
take a philadelphia lawyer" to work Mr.
Bryan's campaign promises into practical
shape, Judge Albert of Columbus will do
the work under the supervision of DR.. p.
l. Hall and others. The selection of Judge
Albert was made upon the suggestion OF
Governor Shallenberger. Judge Albert came
TO Lincoln tonight and held consultation
with the subcommittees OF the house and
senate and tomorrow they will hold another
meeting and get to work on the measure.
Kuhl OF Cedar county introduced the mo.
tion to provide for the employment of the
lawyer to do the work and the house voted
for it because there was no other way out
Of the tangle.
The house committee and the senate com-
mittee have both held meetings with Mr..
Bryan and the governor and have listened
To their suggestions, and have aven had MIR.
Bryan write out his ideas, but no one has
been satisfied with the results. So In order
to make good on their promises 1t has be-
come necessary to have the taxpayers paw
out 800 at the jumpoff to do the work of
the legislature.
The state has provided legal DEPART
ment to advise with the state officials
and the state legislature, but the demo-
cratic legislature did not request the at
| torney general TO help 1t out of the hole.
This would not have cost any additional
sum of money and neither would it have
| given democratic lawyer a job.
| Several of the members laughed when the
Kuhl motion was put and others looked
as though they felt humiliated that out OF
sixty mine democratic representatives there
was none found in the house who Is cana
BILE Of drafting their campaign talk into
a bill.
| Republicans Time to Laugh.
There are so many legal questions in
volved in the BILL" said Kuhl OF Cedar,
that it is our opinion it will save the
state money in the long run TO hire ooun-
sci to pass upon the bill. The subconn-
mittes will first draft It and then IL will
be given to the lawyer to look over from
legal standpoint. II would not do to
pass a bill and then have it knocked out
by the courts"
The republicans are enjoying the humilia-
tion of the majority party to the utmost.
And not pne democrat has been found
but who failed to mention any legal COM
plications in drafting the measure before
the election.
one of the provisions OF the law TO be
drafted will be in the interest OF the banks
in the western part of the state which are
owned by farmers, each OF whom has stock
from 500 up. Under the present law no
stockholder can draw out more than 80 per
cent of the amount of his stock This
works a hardship on farmer owners of
these banks which are supported by the
stockholders, so the bill will provide that
stockholders may draw out so per cent OF
the deposits of the stockholders.
This was concession on the part OF
the bank owners of the east. who had to
take 1t or they would have had the 80 per
cent provision cut out entirely and pre-
vented them from borrowing any money
from their own banks
At Merna and at Broken Bow and other
places there banks owned exclusively
by farmers and patronized to a great ex-
tent by their owners. all of whom are de-
positors. Should the capital stock be SIS 900
these stockholders and there may be 100
or more of them, could only borrow 81 500
under the present law. Under the section
which will be included in the proposed bill
! these stockholders will be permitted to
borrow an amount equal TO so per cent OF
their deposits.
Favor Taxation of MOrtRaRes.
; The house recommended for passage the
bill by Taylor OF York TO tax MORTGAGES
on real estate, after a hard fight against
the bill by Brown OF Lancaster. Clark OF
, Richardson and McCoIl OF Gage When
a Brown called for a roll call TO kill the
bill after It had been recommended for
y passage he scared up seventeen votes for
his motion to seventy-eight against Il.
Brown argued that to pass the bill would
be to cripple the insurance companies OF
Nebraska. raise their rate OF interest and
lower the value of real estate.
Taylor of York argued that II the In
terest rates were Increased, II should please
the money lenders, so all hands would be
e satisfied If the bill were recommended for
Z passage. Clark argued that It would drive
: out foreign money because the outside man
e would have to pay taxes on the note he
e held, the mortgage simply being a security
: where he lived and then have to pay or
. the mortgage in Nebraska. This also hs
a said would make double taxation on the
:, lender.
e StOecISer in the LimeIiEht.
Il The house had discussion over the bill
i to appropriate $4,000 for the support Of
It the state penitentiary for the remainder
d of the quarter. In this discussion stoeckel
+ of Douglas again blossomed out as 4
|. real article. Clark OF Richardsan ex
r planned the money was needed and tha
d the deficiency was due TO the fact tha
II the estimates OF the last biennium hat
been upon a population OF $40. when IN,
II institution has now over 400 inmates. Tay
Q. lor OF Custer said he did not object q
d the bill but he thought It unnecessary. a
e the warden could file his vouchers an,
the warrant could be issued and paid Jus