Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-11-23
Nebraska
ALBERT HAS BRIEF ON LAW
Original Drafter Of Guaranty Act De.
tends II in Court.
CHANGED OVER HIS PROTEST
state, he Holds, Has same Right TO
BenisIats Against Impairment OF
Agencies w. Has Government
State House News.
lion . ~ Corresnondenil

CTrom STAIR Correspondent
LINCOLN. Nov. 22-(speclal)-L l.
Albert OF Columbus, who drafter the bank
ing bin which provided for the guaranty Of
deposits and which was held unconstitu-
tlonal by the federal district court and
which 10 now pending on appeal in the
United States supreme court. has prepared
brief in defense OF the law.
Judge Albert drafted the bin at the re-
guest Of the democratic legislature and
after its Introduction wise democratic legis-
iators made several changes in II over the
protest Of the judge who insisted that
many changes would render the measure
unconstitutional.
In his brief Judge Albert discussed the
question that a bank or a banking system
g. an appropriate governmental agency
which the state may CRATE and employ 70
serve It's legitimate ends. In referring to
the case OF Mccullough against Maryland.
Z Wheat. l24. which in the main has been
adopted by court, the brief says;
The conclusion Of the court on that
branch Of the case was stated by Chief
Justice Marshall In these words.
=, After the most deliberate consideE,ation;;
this court that the act to incorporate the
bank OF the United States is a law made
IN pursuance OF the constitution, and Is
part OF the supreme law OF the land"
II the federal government operating
under delegated P2wer7 may sy law[ pgey
reasons. a state, IN the exercise Of its
general powers. may create them, and all
the reasons for holding that banking
Institution or system is useful and ap-
propriate agency for the attainment OF the
ends Of the federal government apply with
stitution or system OF banking is a useful
and appropriate means to serve the ends
The histoTfc case iust cited the creation
Of q corporation for banking purposes is
merely inoidentRl--a mere choice OF means.
The government, whether federal or state,
hEs the power to create banking system
90 serve the ends Of the government IL
may operate sncn SYSTEM olrectIy, or py
4, but whether the one or the other, the
hystem would still be governmental
might see fit to bestow upon it, and sub
Sect to such conditions and limitations as
L might see TT to impose.
Right OF state.
Judge Albert argues that II the govern
ment may legislate to prevent It's agencies
being destroyed the same right is held by
the state to prevent the impairment or
the effectiveness Of its agencies. Thus he
holds the state has the right to limit the
banking business to corporations and pro-
hibit individuals from engaging in the
business.
In the discussion Of this phase of the
question he said:
Competition implies a contest wherein
the prize is supremacy Private banking
in competition with a system OF banks OPP
Grating as governmental agencies would
necessarily obstruct and impede the opera
tons OF the latter. and render them less
effective So that IL the reasoning Of Chief
Justice Marshall was eOund--and who
doubts it?-it IS competent for a state to
create such agencies and operate them d.
rectly or by means OF artificial bodies Gre
ated by Il, and make them exclusive within
the field OF their operations.
In conclusion the brief said:
The act IN question IS more than a sys-
tenn or regulations for the banking busl-
pess; re purpose - the creation and regu-
lation OF banking system, a governmental
agency. The end is legitimate, on the au-
thority OF McCuiloch against Maryland,
supra On the same authority the means
adapted TO that end, The exclusion from
banking OF all persons save such as have
complied with the provisions Of the act Is
q proper exercise OF the Inherent right OF
q sovereign state to protect Itself and its
mstrumentaliues from the hostile influ-
advantages Of such a system to the public
Ct large.
Dra. Graham File Claim.
A deficiency claim amounting 70 $3.50 on
Che insurance department has been filed
with the state auditor by Drs. r. A. and
A. w. Graham. The bill Is for an exam
tnation Of go applications to membership
kn the Clanamen OF America, an Omaha
traternal organization. When the insur.
anoe company applied 60 Auditor Barton
Tor q charter 70 do business the auditor
found on an examination OF the papers
that Of the go members necessary to star
business there forty to fifty physical ex.
animation papers bearing foreign names
These indicated that the society's physi
dan. haA ~ CIV he
ough physical examination and that mos
OF the persons having foreign names hat
the same chest measurement. the sam,
temperature. the same iaart action, III,
same inspiration and expiration and wer,
identical in other particulars.
State Auditor Barton employed DIR. era
ham 70 examine these papers, so that h,
would be qualified to testify in court &
neceasary as q witness. The INSURANCE,
company ro-examined the applicants ant
etruck off many names from the LIST and
obtRlned new applications sufficient I,
make q legal number to organize. II wal
then licensed by the auditor. The CLAIM
Of the physician was not presented TO tn,
Insurance department until all the fund
ot that department had been exhausted.
&c. n. Gaddis Named.
Considering that the leaders OF his part,
opposed hts election and that the stat
committee devoted it's time and efforts t,
mr.. mtchcocks election, Mr., McNeny sail
pahlman made a wonderful race
Nitrw ndfGA efwcfou. -i&hl htgaas Up
Earl 81 Gaddes OF Holdrege. has beel
appointed q deputy oil Inspector 20 TAX
the place OF John II. Moody. recently ap
pointed. but who declined.
Looks Like Riehmond.
"a 80 ~.
chief clerk Of The house OF representatives
Waa IN Lincoln today looking up som
members who were here to line them ri
Cor him. Richmond now has enougl
pledges 90 insure his election n they al