Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1910-02-12
BANKING BILL.

Examination OF banks is emoodled IN
the Williams bill reported favorably on
Thursday by the joint committee on in-
surance and banking of the two houses oi
the'Iegislalure. Ait,r long dtliberstion by
the Joint committee and by The suScom'
NIT ,ee, the report OF the latter was
adopted on Thursday sit,rDoon subject
TO formal n 6cstion latt'r when some
incidental amendment, offered by Geo.
Bryan, sttorney for the State Bsnkers'
Ascocis ton, have been incorporated Int,
the present draft.
Among the new features OF the pro-
posed act are: No loan shall be made by
a bank or other financial inslIt ltion to
a st ckholder on bis stock as security,
unless bis shares have been fully paid
for 10 cssb. No dividends or pro6t'
of a higher rate than 6 per cett. per 81 =
mum on the capi al stock pad 10 shall be
declared uatil the bank shall have q tur.
D u, Or contingent fund arising from le
profits of at least 10 per cert. of its
cspitsl, nor shall sny dividend or prof
no made by which such iuad is reduced
below the said 10 per cent. This last
provision raises ,be per cent of the re-
auIred surplus to 10 instead OF 5 per
g nt.
Under the old law q financial Inst =
tu loo was given thirty dsJs in which
to make the report required by the
State Corporation O0mmiSSiOO. The new
las cas- the time down to fifteen
R,s.
A special examination OF auy 6nan-
cial iDstItu tloo may b. bad upon the
application OF stOckh defs represent
log twc-6rhs # the cspitsl stocks. Now
oily one-fith 10 r qnired.
The retula, examination is to be
ordered not less than ones in each and
very Yesr by the Ststs Corp nation
Commission. Examinations may be
ordered, however, whenever the com-
mission deems it nec' sssry. Foil &C
cess must be given to the examiner to
al the money, books, papers, notes,
,ilIs and other evidences Of indebted
ae.s due the institution. The officers
are required state truly all iofor
nation desired by the examiu'r, and
he may take evidence uader oath frOu
them.
No previcu, notice of the examination
IS to oe given to the lbs tlliOns or any
me connected ~ith them.
If the examination revesls q iailur
10 observe the bs king laws OF irrel-
alad,ies, or tbtt the capital has been
" is in danger OF being impaired, in
mediate notice is given to the inst tn ion.
Ii sfte tlIrty days from the time Of
nctice IN defects are not corrected the
coum sion may apply for receiver to
axe charge Of and wind up such in
slit ton.
L. case the commission fnds tlst any
inst Ilion designated ss STATE depos-
~ is insoIvent and unable to meet the
demands UPON 1t, The commission nu"
notify tho suditor and treasurer Of the
ommou wealth, who must discontil ue
deposit of sst3 Ulds, and take such
ton as may be necessary t pr 'cl the
st ,te deposits already made In such al
n.utut On.
Examiners and clerical assistance for
bis work are to be appointed by the
S! ts OOrporst on Commission. The
xsmintrs d be Ems OF the stat
''exp rienced aud TX He'd in the science
ot bookkeeping, and shall have had at
least t1ree years service 10 some bank"
They mu, give bond 10 penslty Of $5,-
600, the premium on the bond being
paid out OF the III ID raised from the
fees charged banks for their exam
int ou. The commission will fix the
salaries. All expenses are TO be paid
ut of the uld crested by the receipt OF
exami1st on fees iron the banks,
The tees t be paid by the inst tutions
mined are on the following scale:
FIR banks having q capital, 'urpIus
fund ,no uadiv dtd prof OF 800, 900
or less, $50; more tran 100000 sod
net over 5000, 600, s45; more than 5000
600 and not over 100000, 500; more
than $500, 900 and nor over $4OO, 600,
$50; more tnan t4OO. 900 and not more
{ 40 $500, 600, 500; over $500, 900
sl55. All fees so assessed shall be lien
on the asset OF the baos, and II not
paid 10 Thirty days after nttice, may be
recovered 10 q civil suit.
F.ilure t. furnish the commission q
stat smeut as required Or to comply With
the demands made By the Ststs OorpoTi
ton Commission under tie act subj 'et'
the institution violating to 8 fine OF nj
lees than 500 nor more than 900.
Any officer falling II give the lntorma
ton t tAe examiner is to be fined net
less than S25 nor more than 800. A
knowingly false statement OF the cOndl'
ton Of luch q financial institution by an
officer makes him g felon, and, upon
conviction, be is to be fued not less
than 100 nor more than IS, 900, and be
Imprisoned iu the penllentisry not less
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