The Lamar register., 1910-08-17

coHdltlOn, ana as each bank knows
that the failure of another bank must
be pad Tor out OF the fund to wnicn
II contributes, it can be readily seen
that the bank commissioner will al
ways be Informed OF the first indica-
ton of failing conditions. All stock
holders and directors of banks viii
readily put up more money when its
capital Is first impaired, and notice to
do so by the commissioner caused by
such Information from the other banks,
VIII cause the putting up of additional
capital and thus prevent the down
ward tendency. which finally results
In the banks failure. 1t is only wnen
the capital Is almost extinguished tnat
stockholders refuse to make good de-
licits. Under the vigilance caused b.,
the Interest of each bank it would b.
much less. 1t seems to me that the
very ease of mind caused by Bank
selves would be ample remuneration
FOR the small amount which they ar.
s9y fae to 1s 1hs mar
tight. that run mi ght be made upon
a bank, often caused by false and I'M
founded rumors. The losses to .depos-
itors In banks is said to have been on
the average less than one-tenth OF one
telle 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 win cause more conf
thing yet suggested. That confidence
will bring forth boarded moneys to the
amount of hundreds of thousands of
banks and the acceleration of business.
l received communication few
the Oklahoma Bank Guaranty Law. 1t
Informed me that since the adoption
OF the Bank Guaranty Law in Okla;
homa three state banks had failed. and
every dollar of deposits had been paid;
that in the same time three national
banks had failed and their depositors
had received not dollar.
II is contended that as such a law
guarantees the deposits of both small
and large banks, 1t will take depositors
from the large to the small banks.
That has not been the experience In
Law exists. There are certain advan
tages in dealing with a bank OF large
capital. which prevents any such con-
dition. Under the laws of nearly every
state. no bank can lend to one person
an amount more than ten per cent of
its capital, a merchant who deals
only borrow s2.5o0.0o, which may be to-
tally inadequate to his needs. while he
with capital OF 100000. This con-
dillon almost compels the large dealer
to keep his account in the banks Of
large capital.
The principal argument against the
Bank Guaranty Law is that it compels
the solvent to pay the losses Of the in
surance companies. The premiums Of
the healthy men go to pay the death
pany charges n less premium to
healthy man than to a man who is a
doubtful risk; But the Texas law
the banks. for IL provides that IL any
bank does not care to pay into the
guaranty fund the amount assessed. 1t
can by a bond guarantee Its own de-
posits. II the directors and stockhold-
eers OF a bank, who control and manage
willing to guarantee Its deposits. how
can they expect the depositors, who
sumo that Risk? Every financial Of
ficer of the United states, OF the va
rious states. counties and cities OF this
country. require security for their de-
posits. Why should not the ordinary
depositor have the same protection?
The Kansas State Bankers Associa-
tary. has recently published a strong
endorsement OF the Bank Guaranty
Law of that state.
The conditions In the state OF Colo
RADIO are exceedingly prosperous at the
present time. but there must in some
future day be bank failure. As banks
fraction of that which they obtain from
the dopositors, and are able by bond
now is the time for the enactment Of
such legislation.
Public Service Commission.
on account OF the growth % the
porations. a commission. In my judg-
ment. should be created which Will
with care and after full Investigation.
regulate and control the same
The state OF New York has adopted
such a public service commission law
and Its operation has proven very sue
cessful and beneficial TO both the pub
lie and the utility companies.
Corporations are to be treated fairly.
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
aris h. n nil al NTa
tion OF such corporations and the en-
deavor to make the public pay divi-
dends upon such watered stock TO
can Increase its capital stock. TO OBJ
tain the consent OF a Public Service
Commission, which will consent TO such
increase only upon showing OF value.
Is bound to produce a most wholesome
effect The right o every one OF these
exists only by virtue OF a charter given
to IL by the state. and II Is proper
that the Interests Of the public should
be protected by controlling power
being vested In a commission.
Railroad Commission.
a recent decision has been rendered
declaring the railroad commission act
therefore essential that there should
be some power vested in somebodr by
the legislature to control such cor
porations. II should be vested in the
Public Service Commission. but II that
cannot be accomplished. then there
sion to prevent the imposition OF I'M
reasonable rates and charges. unjust
discrimination, Inadequate railway
service. the giving or receiving OF re-
bates. and all other unjust things dct-
rimentai to the people. Every state In
the Union except Delaware. wyoming
and Colorado has such a Railroad Com
mission; some Of them are exceedingly
efficient and effective and there should
be such n commission in this state.
As long as railroads are permitted
to issue passes to the people. long
Will they have an undue Influence In
the framing Of laws and in the obtain
ing OF special favors and privileges
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
ago. I asked at the window of the
ticket office at the Union depot wheth-
er. on account OF the state convention
held at a certain place. they did not
have on sale round trip tickets at re-
duced rates: the agent looked In his
order book and said that no such order
had been issued. but he knew that
nearly every delegate had been pro-
vided with transportation. and for that
reason no doubt. no request for spe-
cial rates had been made. Under such
conditions. 1t is difficult indeed for the
Influence of the railroads to be elm
mated from party conventions. When
ever n public service corporation. such
as a railroad company. gives transpor-