Omaha daily bee., 1910-12-16
Nebraska
BANK LAW IS ASSERTED JUST
Charles 0. Whedon Takes Exceptions
10 Views of Burnham.
ILLUSTRATION Is INAPPROPRIATE
Banking Business Public Business and
Consequently Certain Restrictions
Are Necessary, says Nebraska
Attorney I'm His Reply.


LINCOLN, Dec. Especially Charles
o. Whedon one Of the counsel for the
state in the bank guaranty case recently
argued before the United States supreme
court. takes exceptions to the views ex-
pressed BY President Burnham Of the First
National bank.
Il read" said Mr.. whedon. "the inter
view with the president Of the First Ma
tional bank. Mr.. Burnham, in which he
characterized the bank guaranty law as
unjust and dishonest. He used as an illus
tration the case Of a Georgia newspaper
plant about to go into the hands OF a re-
ceiver. why he asks should not the
Nebraska newspapers be called upon to
make up the difference between its assets
and its liabilities? The principle is the
same as that Of bank guaranty
Mr.. Burnham's illustration is not apt
Publishing newspaper is private business;
banking business is public business.
Under the laws Of this state il a banker
receives deposits in his bank knowing
the bank 20 be involved. he is guilty Of
felony. There Is here no law which will
punish the publisher Of a newspaper who.
knowing his paper or himself to be in
solvent, receives pay in adavnce for
years subscription to the paper, although
nc may hAAoW ne cannot denver the paper.
The national banking law under which
Mr. Durham 8 bank does business provides
for taking the money Of one man to pay
the debt OF another.
Since national banks were organized
they have paid TO the government upwards
Of &l75.oOOOOO as Ia xon circulation, capital
and deposit During the same period cred
itors OF national banks have lost upwards
nf f4T 20 at he haufnufpr
Of the tax paid on circulation, capital and
deposits had been placed in fund for the
security Of depositors, kept invested in
government bonds. save as required to pay
depositors, andthe income reinvested, every
depositor in a failed bank would have been
paid in full and the fund would now be
so large that its interest would maintain
the fund.
Had that been done the banks would
have paid no more in taxes than they have
paid and depositor would have sus-
tanned the loss Of a dollar
And yet national bankers, or some Of
them, tell us that law which has for its
purpose the securing of deposits so that
the depositor may know that he will get
his money is both unjust and dishonest d"
Attorney Generals Opinion.
Attorney General Mullen in an opinion
given 10 the county attorney Of Keya Paha
county, says that the law and the court
decisions are not clear as 10 the majority
necessary TO carry bonds for internal i'm
provements, but that the safe way is to
have a majority Of two-thirds in favor OF
such bonds. Bridge building and judgments
against he county were questions in
volved from eKeya Paha county.
AffIrms Sentence.
The supreme court has filed an opinion
affirming the sentence Of two and one-half
years in the case Of Ebenezer w. Johns Of
Seward county, who was convicter Of steal
ing ten hides,
HaFtiGRh to he Quartermaster.
Adjutant General John c. Hartigan, who
is to retire from office January 3, decided
TO remain I'm the Nebraska National
guard. He has appointed himself quarter
master OF the Second regiment with the
rank of captain, to take effect January g.
He hopes to be promoted when war breaks
out with a foreign nation. Captain L. c.
Kesterson, quartermaster of the Second
regiment, has been transferred to the post
OF regimental Inspector of small arms prac-
tice IN the Second regiment Lincoln Riley
has been appointed inspector Of small arms
practice in the First regiment. with the
rank Of captain.