The Columbus journal., 1909-05-05
WILL TEST bAMKLAW
FRIENDLY SUIT TO az
BROUGHT ~ COURTS.
4 STATEMENT IS GWEN OUT

OSnJlWIINS " USvlW w
No Convict Labor In Psnitentiar
Tailor Shop 0seauss- Competition
b Unfair to Free Labor.
! That the bankers Of Omaha and Ne
braska are determined in their pun
pose to test the validity Of the banl
deposit guaranty law passed by the re
cent legislature was shown at q meet
ing held in Omaha which was attende,
by q number Of the representative
state and national bankers of tn
state.
Since the meeting held some week.
ago to consider the question the pro
position has been thoroughly can
vassed and a committee has beer
formed to arrange what is termed j.;
friendly suit to carry the matter
through the courts. The following
statement was given out at the close
of the meeting:
The banking act passed by the re
cent session of the legislature pro
vided in a manner for the guaranty O,
bank deposits by the collecting of 9
tax from solvent banks in proportion
to their deposits. to be applied as fal
as possible toward the payment of de
positOrs in tailed hanks after all as
sets and shareholders liabilities had
been exhausted. This is such a rad.
ical change in all established systems
OF banking that it necessarily be-
hOoves much good or much harm to
all interested in banking, whether as
shareholders or depositors
The time for the discussion of the
question as a desirable public measure
from political standpoint has passed
and it would seem that those who
favored the enactment of such a law,
as well as those who opposed it,
should unite in having the question
finally settled by the highest court as
to whether or not a tax for the pur-
pose named can be collected from
banks or bankers without their con-
sent. 1t is the general opinion among
bankers that the question should be
finally settled at as early date as
possible. as to leave the question in
doubt or to have the law declared in
effective at time of financial unrest
would mean most serious disturb
ance of all banking and commercial
interests.
A committee has been formed of
leading state and national bankers
for the purpose of arranging for
friendly suit to test the validity of the
law, and it is hoped. owing to the i'm.
pOrtance of the case. that it will be
rapidly advanced on the docket. so
that decision may. be reached at the
possible date.
Opposes Convict Labor.
The state will not contract with the
st. Louis garment making firm which
made bid for the use of the convicts.
The firms desired to install a tailor
shop in the state penitentiary and use
the cOnvicts for the manufacture of
for laborers. The Board of
Public Lands and Buildings thought
of the tailor shop idea. be-
|ieving the state could get much more
money for the use of the cOnvfcts than
It could be letting them out to the
broom factory. The clothing firm had
already signed the contract agreeing
tn TO In~ IL,
he prisoners and the matter was re-
erred to Governor Shallenberger, who
Ices not favor the plan, because of his
belief that 1t is unfair for free labor
o be put in competition with convict
abor
The irrigation Congress.
The governor has appointed a COM
nittee of five to consider the best
means of making the national irriga-
ion congress. which is to be held at
spokane from August 9 to IA. OF the
,reatest benefit to Nebraska. The
governor also appointed delegates to
he American Prison association con-
-ention to be held at Seattle, August
4 to 10.
Test Of ElectiSn Laws.
The republican state committee. in
ession here, authorized Chairman J.
Y. keifer to appoint a committee to
onsult with attorneys regarding the
lection laws enacted by the late legis-
ature, and il found advisable to take
teps to test the validity of the meas
re in the courts.
Taxes Of Life Companies.
Attorney General Thompson has
iven it as his opinion that domestic |
fe insurance companies, organized on |!
Re old line plan. may be assessed for
lxation not only on their gross prem
inns, but also on other property. such
8 capital stock. the latter to be listed
) its actual value. In Lancaster coun-
: this is said to have been the plan
1opted by the county assessor. but 1t
reported that an insurance COM
my in Douglas county has been taxed
My on its gross premiums. The at
'rney general believes the tax ON
ross premiums is not in lieu of all
her taxes.
Wants Interpretation Of Law.
Browning. King & Co. of Omaha
ave written to Secretary of State
lnkin for an opinion on the law en-
:ted by the late legislature regarding
le fiat tax on the capital stock of cor
The firm informed the
,cretary of state that 1t did business
many states and had an immense
lpital stock if it were all totaled, but