Omaha daily bee., 1909-02-13
HELPING TIE RAILROADS OUT
Terminal Tax Bill to Be Repealed and
All Values to Be Distributed.
SHOPS TO BE INCLUDED IN THIS
Bank Guaranty Bill Continues TO BE
n Bone of Contention and Many
Conferences Are Being
Held.
From a sad correspondentl


LINCOLN. Feb. 12.-CSPecial)-In addi-
ton to the bill providing for the repeal Of
the terminal tax law, which was enacted by
tine last legislature after years of opposition
on the part of the railroads, the democrats
of the legislature intend to dip into the as
sessment of this class of property little
further.
A bill is now in course Of construction
which will provide that railroad property
shall be assessed and distributed under the
unit system. That is, the State Board of
Assessment will be required TO find the
value of each railroad system. Then this
valuation will he divided by the number of
miles in the system in Nebraska. and to
each county there will be certified a valu-
alton based on the mileage. This will mean
a mile of railroad in one community is
worth Just as much as a mile in another
on the same road. Under the provisions of
the proposed law the immense railroad
terminals in Omaha and the terminals in
other cities will be Jumped in on the mile
age basis. II they do not escape taxation
altogether.
II is the intention of those who are pre-
pairing the measure to so fix it that the
local assessor will have nothing TO do with
the valuation of railroad property. but every
building. every shop and all other railroad
nropeTtsu shall be Jumped in together and
valued by the state board. and then as
tributed over TIE system.
When the bill providing for the repeal
Of the terminal tax law was talked about.
/ its object was TO force the Omaha senators
to get busy on the measure. but lately
these same men have begun to wonder
whether the Omaha senator's will exert
themselves to kill IT, II they do not the
bill in all probability will pass.
Conferences on Banking Bill.
Members of the subcommittee on bank
ing. which. with Judge Albert. drafted the
new banking bill. held several more con-
ferences with Governor shallenberger this
morning. while Graft and Donohoe both
went to their homes.
So much opposition TO the bill as drafted
has developed that even members of the
committee are becoming dissatisfied with
their work and insist on holding out the
bill until a majority Of the democrats agree
! upon IL.
Since the subcommittee completed the bill
its members have gone over the bill again
very carefully and It remains practically
in the same shape as originally drawn and
published in The Bee. II Judge Albert
dictated the measure as the subcommittee
instructed him TO do and in accordance with
memorandums filed with him. the bill will
/ go to the joint committee with the sanction
of every member OF the subcommittee.
Judge Albert was sent for today and upon
his arrival at the state house he was imme-
diately brought upon the carpet by the
members of the subcommittee to give testi-
mony that the bill he prepared was in strict
accordance with the copy o. KID by the
subcommittee in every detail. including all
interlineations.
Qualifications of Directors.
The bill provides that the board of direct
ors Of any banking institution transaeting
business under the provisions Of this act
must be residents OF the county wherein
such hank is located, or OF the counties
adjacent thereto and every director OF a
bank having a capital OF less than 5000
must be the owner and holder Of at least
one-twentieth Of the paid up capital stock
/ IN his own name and right and in bank
with a capital OF more than $4,000 said
director must own and hold in his own
name and right not less than $500 OF the
paid up capital stock.
| Following are some Of the other impor-
tant sections Of the bill. meRtiOn Of which
has previously been made in The Bee;
Section a4-No officer OF employe of any
Il
In this state shall be permitted TO borrow
any OF the funds OF the bank upon his own
note OF obligation. OF upon any note or
Obligation made TO him for accommodation,
and DO director OF a bank shall be permitted
to borrow any OF the funds OF the bank
without first having secured the approval
Z OF a majOrity OF the board Of directors in
active session. the record OF which shall
be made and kept as part Of the records OF
ploye OF a corporation who shall violate
| the provisions Of this section shall be
deemed guilty OF felony and on conviction
thereof shall be punished by a fine not ex-
ceeding 81 600 or Imprisonment IN the peni-
tentiary not 70 exceed five years, or both,
at the discretion of the court.
Limitation on Loans.
Section 2s-No corporation transacting a
banking business in this state shall loan to
any single corporation. firm or Individual
including in such loan all loans made 10
the several members or shareholders OF
such firm OF corporation. for the use ana
benefit Of such firm, corporation OF tndi-
Yidual. more than 20 per cent OF the paid
up capital cf such bank, but the dlscounting
OF bills of exchange drawn in good faith
against actually existing values and the dis
count Of commercial paper actually owned
not be considered as money borrowed Any
officer. director or employe OF any cor
poration transacting q @anking business
under the laws OF this state who shall vio-
late or knowingly permit violation OF the
provisions OF this section shall be deemed
guilty of a felony and upon conviction
thereof shall Be punished BY a fine not
exceeding 800 or b. Imprisonment not TO
exceed three years IN the state peniten-
ffa 18Th TIE Tfa.-raffost ~ fllr r.or1rf