Omaha daily bee., 1910-02-03
GOOD FAITH OF THE BANKERS
Attorney General Byers Rules on
Bond Matter.
AUDITOR AFTER TAX EvADERs
Seeking 20 Break Up Bond Investi
ments when Assessor Draws
Nieh-Fnrmers Hot Under
Collar.
From a sod correapondent.l

gram.)-AttorneyGenera Byers rendered
to the state auditor today an important
decision affecting a matter which has
caused trouble in the administration OF the
bank laws. II seems that a number OF
banks have been In the habit OF buying
government bonds in December, holding
them until after January !, then disposing
OF them and claiming exemption from
taxation to the extent OF face Of these
bonds The state auditor has saught a
way to prevent this, as in some cases it IL
merely a matter Of bookkeeping.
The attorney general decides that the
question is one Of the good faith OF the
purchases and genulness of the transaction,
and not the time Of the purchase. To
break up the system II will be necessary
to consider the evidence that 1t is merely
to escape taxatlon that the bonds have
been nomlnally bought. lie also holds
that there Is no way to forbid a state or
savings bank keeping its reserve in a Ma
tional bank, unless It is shown that the
bank is unsound. The state auditor finds
that where a National bank is reserve
agent, he has no way of knowing whether
the security is good.
Farmers Are Warm.
The Iowa Farmers Grain. Dealers as
ISOLATION today authorized the payment Of
d bill Of 500 expense incurred In a recent
suit in which the co-operatives won, in
volvIns their right to keep their affairs
secret. They found that a spy had secured
possession OF stock in one of their CO.
operative companies and they nullified the
stock. They announced that they would
invoke all the power OF the entire associ-
alton in fighting their enemies, the line
elevators.
TOwner VIII Run.
Judge H. M. Towner Of Corning, Ia, to-
day announced his candidacy for congress
on the republican ticket in the Eighth Iowa
district now represented by William Jami-
son. democrat, who defeated Colonel Pete
Hepburn at the last election,
state Wards Increase.
The Board Of Control reports that the
number Of wards in the state institutions
is steadily increasing, especially the in
sane. There was at the beginning Of the
year a total of s,O44 in the fifteen institu-
lions under the board. OF these 4,13S were
insane, s65 %convicts, 57s in the Industrial
schools and 1,l94 feeble-minded. The total
cost per month OF the institutions is about
100000. 1t is found that the support fund
at several institutions is not enough to
maintain the Institutions and the legisla-
tuTe Will De hSheu 10 increase same.
Look for Coal Troubles.
Secretary stamm of the State Mining
ing board declares his belief that there Will
be a coal shortage in Iowa in the spring
far worse than the recent one. Investiga-
ton has shown that stocks Of coal are all
exhausted and the mines are working hard
to keep pace with the steady demand. It'll
certain there will be cessation OF work, at
least for a short time, when the a%diustment
OF wages comes on in April. In antlcipa-
tion Of this the large consumers are already
buying coal. ~
Jnmison Against JamIeson.
There is possibility of the congressional
fight next fall In the Eighth district talk
ing the turn Of being a contest between
., M. Jamison of Oseeola, and w. d.
Jameson Of shenandoah. The latter is
the democratic congressman. The former
is being urged by his frlepds to become
q candidate for the republican nomina-
ton, as It is feared that Judge Towner
|, will not befin the race.
E Cattle Have TubercuIOsIs.
D Chairman CoWnie of the Board of Con-
troll went to Davenport today where he
will take charge of a shipment Of sixteen
= cattle from the state orphans home which
are suspected of tuberculosis. They re-
acted under the test by the state veter-
t marian and will be killed at Cedar Rapids.
D All the herds belonging to the state are
TO be tested for tuberculosis.
a sheriff Gets Nebraska Man.
a Sheriff IL. w. Kennedy of Broken Bow,
D Neb., arrived in the city today and will
take back with him Dock shute, who
i gave himself up to a policeman. ,Shute
now declares that he is innocent and
49, ukN~ - aIa - .A-.r
ing admits that a reward was offered for
him. The sheriff says the evidence against
Shute is strong.
Want Lower Rates on stone.
The railroad commission received today
an application for a reduction of the
freight rate on crushed stone to be used
for paving and road making in Iowa. This
comes from the Iowa association of quarry
men. They insist that they have an i'm
mense amount Of crushed stone on hand
which cannot be marketed because Of the
high rates.
New Bank at Dawson.
There was organized today the Dawson
Savings bank, to do business at Dawson,
Dallas county, with $15,O 900 capital; w. H.
McCammon, Perry, president. The Domes-
tic Building and Loan association of Akron
was organized also,- The Farmers Insti-
tute company of Cedar Rapids gave notice
Of an increase Of capital stock to 100000.
For Attorney General.
II became known today that Judge NJ,
A. Roberts of Ottumwa considers beoom-
ing a candidate for the republican nomi-
nation for attorney general. He recently
announced HIS retirement from the bench
after fifteen years Of service. He was at
one time a candidate for supreme Judge
and once again for congress.
Ames Leads Armour Scholarship.
AMES. Ia, Feb, 2-(SpsciaLl-In this
three years since the twenty $3.50 Armour
scholarships were offered to the agricul-
tural colleges OF the United States, Iowa
has won twenty-one. This is three times
as many as have been won by any other
school. Nebraska and Wisconsin stand
next In line, each having won seven
scholarships in the three years, These Ar,
mour scholarships are awarded to~the col
leges doing the best student judging and
showing the best stock at the Interna.
st-..r - Ghfna.r