The Springfield herald., 1910-08-19

| mess, II Is at an enormous cost 10 the
| Individual insured Hundreds OF thou-
sands of dollars are paid to officers
and agents of such companies and
| lines, and yet people knowing this. are
! willing to take out policies OF ihsnr
ance In order to avoid disaster. The
| banks, by the guaranty law now IN
| force In several of the states. obtain
that insurance without II costing them
sustained. The salaries of the bank
commissioner and his entire force are
pad out S of the
| passage of bill which gives to them
such advantages.
AS banks all know when another
bank is embarrassed. or is In falling
condition. and as each bank knows
| be paid for out of the fund to which
| 1t contributes, 1t can be readily seen
that the bank commissioner Will a, al
tion of failing conditions. All stock.
holders and directors OF banks Will
| capital is first impaired. and notice to
| do so by the commissioner caused by
viii cause the putting up Of additional
capital and thus prevent the down
ward tendency. which finally results
the capital Is almost extinEuished that
| stockholders refuse to make good de-
much less. 1t seems to me that the
very ease of mind caused by Bank
selves would be ample remuneration
| for the small amount which they are
anty fund No condition is more hor-
| ribie than the fear. when money Is
often mFh by false aas
itors in banks is said to have been on
the average less than one-tenth Of one
per cent a year. This Is mere baga-
,eile for the banks to pay fomn Ins to
lnnoSltS
should be done to instill confidence
and the states guaranty is one OF the
dence in the banks than any other
thing yet suggested. That confidence
amount of hundreds of thousands of
dollars much to the benefit of the
BANKS and the acceleration OF business.
weeks ago relative to the operation Of
| the Oklahoma Bank Guaranty Law. 1t
informed me that since the adoption
| homa three state banks had failed. and
every dollar of deposits had been. paid ;
/ that in the same time three national
banks had failed and their depositors
had received not dollar.
1t is commended that as such law
| guarantees the deposits of both small
| and large banks. 1t will take depositors
from the large, to the small banks.
those states where the Bank Guaranty
Law exists. There are certain advan-
tages in dealing with a bank Of large
| dition Under the laws OF nearly every
state. no bank can lend to one person
| an amount more than ten per cent of
With fSp bank Of only ss5 900 capital cans
tally inadequate to his needs. while he
could borrow 100000 from a bank
with a capital OF 100000, This con-
to keep his account In the banks of
large capital.
The principal argum ,nt against the
I.aw "a "A q
the solvent to pay the losses of the in
solvent banks. This also is true of in
the healthy men go to pay the death
losses of the sickly men, and no COM
pany charges a less premium to. a
doubtful risk. But the Texas law
takes away even that argument from
the banks, for 1t provides that II any
bank does not care to pay into the
guaranty fund the amount assessed. 1t
| posts. II the directors and stockhold-
ers of a bank. who control and manage
the moneys of Its customers. are not
| can they expect the depositors. who
make nothing out OF the bank, to as
ficer OF the United states. OF the va
] rious states. counties and cities of this
country. require security for their de-
| depositor have the same protection?
Public Service Commission.
ON account of the growth OF the
business of so many public utility cor
poraticns. a commission. In my judg,,
| ment, should be created which Will
| with care and after full investigation.
regulate and control the same.
The state of New York has adopted
such a public service commission law
and Its operation has proven very sue
| cessful and beneficial to both the pub
| lie and the utility companies.
Corporations are to be treated fairly.
| but at the same time they should not
be permitted to extort from the pub
Ito ING md Il vii tao
by arbitrary action refuse to accom-
modate the public One of the greatest
tion OF such corporations and the en-
deavor to make the public pay. diyi-
dends upon such watered stock. To
can increase Its capital stock. to OBJ
tain the consent of a Public Service
Commission. which will consent to such
| is bound to produce most wholesome
effect. The right of every one of these
1 exists only by virtue of a charter given
to 1t by the state, and 1t Is proper
i that the interests of the public should
| be. protected by a controlling power
| being vested In commission.
Railroad Commission.
| A recent decision has been rendered
/ declaring the railroad commission act
| therefore essential that there should
be some power vested in somebody by
I porations. II should be vested in the
/ Public Service Commission. but If that
cannot be accomplished. then there
I should be created a Railroad Commits
/ sion to prevent the imposition of un-
! reasonable rates and charges. unjust
I discrimination, inadequate railway
= service, the giving receiving of re-
i bates, and all other unjust things det-
4 rlmental to the people. Every state in
4 the Union except Delaware, Wyoming
and Colorado has such a Railroad Com
il mission: some of them are exceedingly
i efficient and effective and there should
be such commission in this state.
4 All of the measures which you are
il requested to enact at this special ses-
sion of the General Assembly are those
il which are sound In principle and bene-
ficIal in administration. These laws
| Will have tendency to make govern
ment of the people. for the people and
/ by the people" reality which has al
i ways been the ideal of true republics
Il l respectfully ask your careful con
sideration of each of the measures
| mentioned.
Respectfully,
Il JOHN f. SHAFROTH.
Il Governor.
Il Denver. Colorado, August 9th. 1910.
Cpaca