The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-01-07
Conference of Square Deal
Leaders Is Held.
BANK GUARANTY LAW
Plan Is to Repeal the Old
Measure.
Then Re-Enact a New One to
Conform to Decision.
Also Regulate Bankers Guar
anty Insurance Company.

1t is practically certain that Governor
Stubbs will call a special session of the
legislature inside of the next few days
as a result of the Judge Pollock decis-
ion granting an Injunction against the
enforcement of the guaranty law. The
plan is to have bills introduced at the
special session annulling the present
guaranty law altogether, enacting
brand new state guaranty law, and
amending the law controlling insurance
companies in such fashion that the new
insurance company recently organized
by the national bankers can be restrict
ed by state officials to conform to the
same regulations of the new state guar
anty law.
A conference was called this morn
ing in the governors Office at which
were present besides Governor Stubbs,
Bank Commissioner ]. N. Dolley, At
torney General Jackson. Richard ].
Hopkins of Garden City and other
square deal leaders. While those pres
ent at the conference are reticent about
the matters discussed and the decision
arrived at. it is a fact that the special
session was seriously considered at the
conference and it is not only possible.
but extremely likely, that if there is
rot some great change in present con-
ditions and the state of mind of the
conferees that the governor will send
out his call for the special session the
first part of next week.
+ The friends of the guaranty law, con-
fident of the backing of the people OF
the state in the matter. are determined
to make an aggressive fight for the
principle of bank guaranty. They are
in honor bound to .-otect the state
banks from the present deplorable con-
dition of being held up by. the Pollock
injunction while the national banks en-
joy the advantage of guaranty of de
rosits from their own private surety
organization ~.
/ The square deal leaders now realize
that the shoe is on the other foot. With
the state administration committed to
the guaranty plan and the state hanks
tied up in the law as result of the
Pollock Injunction: with the federal
authorities opposed to guaranty and
the federal banks enjoying the ad-
vantages of guaranty, state of affairs
exists that they believe calls for ag-
gressive and determined measures.
AnnuI Present Law.
Their plan is to introduce a bill at the
special session annulling the present
guaranty law. Then they will draw up
q new guaranty measure that will be
proof against injunction by any court
on an allegation of discrimination
Last, but not least, they would prepare
a bill to amend the insurance company
laws which will give the state power
to regulate the national banks guar
anty company along exactly the Same
| lines that the state banks would be
controlled by the new guaranty law.
Regarding this last measure, it will
be remembered that the supreme court,
| in decision handed down a few weeks
ago. ordered the superintendent of in
surance to issue permit to the ma
tional bankers company to do business
| in this state. In this decision the court
| held that the state law gave the super
| intendent no authority to withhold this
permission or exact any unusual condi-
tions Of such surety company. The plan
| is to amend this law so that the state
will have power to regulate surety COM
panies.
These three measures Incorporated
| into laws the state and national banks
| would be on the same footing until the
United States supreme court could pass
on the constitutionaIty of the law a
year hence. Then again the Pollock de-
cision and injunction would apply only
to the present guaranty law. With the
old law annulled and new guaranty
| law on the statute books the guaranty
proposition would have q fresh start
! untrammelled by court decision. and
what is more the new law would be
| drawn with a view to avoiding all the
alleged shortcomings of the present
| law.
stubbs Is Silent:
l. When asked about the probabilities
of his calling q special session of the
legislature at once Gov. Stubbs today
declined to commit himself. He did
not deny that the question was consid-
cred nor did he deny that he intended
to call special session. Neither
would he confirm the report.
| Another member of this mornings s
conference: when asked about the
special session proba bilities, gave it
as his opinion that there was an even
chance for the call to be sent out 1t
is believed at the state house today
that unless there is decided opposi-
ton against the plan from over the
state that the call will he sent out the
first of next week. The governor will
/ likely first sound members of the leg
islature on the matter.
It is admitted that there is a much
greater need of a special session now
tthan there was when the matter was
iconsidered seriously last summer and
the governor sent messages to the
members of the legislature for their
opinion on the matter. Then the
tguaranty, question was up in. the air
and the national banks were trying to
Il get in. Now the lines have been
drawn and the advantage lies all with
the nationals while the state banks
: are tied up and Will continue to re-
main in that condition until the court
of last resort passes on the guaranty
law.
While it has not yet been positively
decided to call a special session the
chances are two to one that 1t will be
II called at once. Only a decided oppoSi-
ton to the plan from the members OF
the legislature themselves or from
the people and press of the state will