The Elbert County tribune., 1910-08-19

that the bank commissioner will al
ways be informed OF ths first indica-
holders and directors of banks win
readily put up more money when its
ap,.ai a hS rs s' ths nmpissianar aro cawsed by
such information from the other banks;
Will cause the putting up OF additional
ward tendency, which finally results
in the banks failure. 1t is only when
the capital is almost extinguished that
stockholders refuse to make good de-
ficits. Under the vigilance caused py
much less. II seems to me that the
very ease Of mind caused by "a Bank
Guaranty fund to the bankers them
selves would be ample remuneration
for the small amount which they are
compelled to contribute to the guar
Ribs tnan the fear. when money is
tight. that run might be made upon
founded rumors. The losses TO depos-
itors in banks Is said to have been ON
per cent a year. This is q mere baga-
teile for the banks to pay compared to
the great profits made by them In
should be done to instill confidence
and the states guaranty is one OF the
things which Will cause more confi-
dence in the banks than any other
thing yet suggested. That eonfidence
amount of hundreds of thousands OF
dollars much to the benefit OF the
1 received communication few
weeks ago relative to the operation OF
the Oklahoma Bank Guaranty Law. 1t
of the Bank Guaranty Law In Okla
homa three state banks had failed. and
that in the same time three national
banks had failed and their depositors
had received not dollar.
1t is contended that as such law
guarantees the deposits of both small
and large banks. 1t will take depositors
That has not been the experience in
those states where the Bank Guaranty
Law exists. There are certain advan-
tages in dealing with a bank of large
capital. which prevents any such con-
state. no bank can lend 10 one person
an amount more than ten per cent OF
Its capital merchant who. deals
only borrow s2.5OO.0O, which may be to-
tally, inadequate TO his needs. while he
with capital OF 100000. This con-
dition almost compels the large dealer
to keep his. account In the banks OF
The principal argument against the
Bank Guaranty Law is that 1t compels
the solvent to pay the losses of the in
surance companies. The premiums OF
losses of the sickiy men. and no com
pany charges less premium to
doubtful risk. But the Texas law
takes away even that argument from
the banks. for 1t provides that If any
bank does not care to pay into the
guaranty fund the amount assessed. 1t
can by bond guarantee its own de-
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
snme s,nas that IT. risk Every financial Of
rious states, counties and cities of this
country. require security for their de-
posits. Why should not the ordinary
depositor have the same protection2
The Kansas State Bankers Associa-
/ tion. through It's president and secre-
tary. has recently published a strong
endorsement of the Bank Guaranty
Law of that state.
The conditions in the state of Colo
rado are exceedingly prosperous at the
| present time, but there must in some
future day be a bank failure. As banks
are now able to pay to a fund a small
fraction of that which they obtain from
the depositors, and are able by bond
now is the time for the enactment of
such legislation.
Public Service Commission.
on account Of the growth OF the
%enf. Should 'Ssa Se ersated N Which @ 'uS VIII
regulate and control the same.
The state of New York has adopted
such a public service commission law
cessful and beneficial to both the pub
lie and the utility companies.
| y,
| but at the same time they should not
/ be permitted to extort from the pub
lie unjust and discriminating rates. nor
by arbitrary action refuse to accom-
modate the public. One of the greatest
evils arises from the. over capitaiiza-
| tion of such corporations and the en-
deavor to make the public pay diyi-
dends upon such watered stock To
can n'ih Increase ease It's p capital % stock. TO to OBJ }.
/ tain the consent of Public Service
Commission, which will consent to such
! ipn nr,lx n clnxx Inc nf u1,t.
is bound to produce most wholesome
effect. The right o. every one of these
Z, exists only by virtue of charter given
TO 1t by the state. and 1t is proper
that the Interests of the public should
being vested In commission.
I Railroad CommissIon.
! A recent decision has been rendered
f'iii of this state ate unconstitntional' ~ 1t as Is
| therefore essential that there should
i be some, power vested in somebody by
porations. 1t should be vested in the
Public Service Commission. but II that
cannot be accomplished. then there
should be created, Railroad commis-
sion to prevent the imposition of un--
ama raMay
service. the giving or receiving of re-
bates. and all other unjust things det-
rimental to the people. Every state In
! the Union except Delaware, Wyoming
and Colorado has such Railroad Com
efficient and effective and there should
/ be such a commission In this state.
As long as railroads are permitted
! to issue passes TO the people, long
viii they have an undue influence in
the framing of laws and in the obtain
from the various officers OF state.
county and city governments. The in
fluence of railroad companies begins
with the holding of conventions of each
of the political parties. At one of the
political conventions held several years
q vii NJ n
ticket office at the Union depot wheth-
\ er,. on account of the state convention
/ held at certain place. they did not
/ have on sale round trip tickets at re-
| duced rates: the agent looked in his