The Idaho Springs siftings-news., 1910-08-13

be paid for out OF the fund to which
4 contributes; it can be readily ;,,, seen 81,
ways be informed Of the first indica-
| ton OF failing conditions. All stock,
holders and directors OF banks Will
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;
capital and thus prevent the down
In the banks failure. 1t is only when
the eapital is almost extinguished that
fieiis rndsr ehe ysilanes aee caused By
the interest Of each bank it would be
much less. 1t seems to me that the
Guaranty fund te the bankers them
selves would be ample remuneration
compelled to contribute to the guar
anty fund. No condition is more hor-
rible than the fear. when money is
bank. often caused by false and un-
founded rumors. The losses to depos-
the average less than one-tenth of one
per cent a year. This is mere baga-
the the great e i'e ppofiss % made by them in
lending out the deposits everything
should be done to instili confidence
| things which Will cause more conf
dence in the banks than any other
| will bring forth boarded moneys to the
amount of hundreds OF thousands OF
dollars much to the benefit OF the
| banks and the acceleration Of business.
l received communication few
weeks ago relative to the operation Of
the Oklahoma Bank Guaranty Law. 1t
informed me that since the adoption
of the Bank Guaranty Law in Okla,
a9ma r three d state banks had ha faaed h aia anc
that in the same time three national
banks had failed and their depositors
had received not dollar.
| 1t is contended that as such a law
guarantees the deposits Of both small
from the large to the small banks
That has not been the experience In
those states where the Bank Guaranty
| tages in dealing with bank of large
capital. which prevents any such con-
state, no bank can lend to one person
| an amount more than ten per cent of
Its capital A , mercaanf .a5 ooo who deals
only borrow $2.5O0.00. 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 it compels
4 solvent banks. This also Is true of in
surance companies. The premiums Of
heath az e say 20 ae pay and the no eom
pany charges a less premium to a
healthy healthy, man than & to an man roa who Is 5
|
takes away even that argument from
the banks for 1t provides that II any
guaranty guar @ FUND nd the @ amount @ TIA assessed @ 1T it
can by bond guarantee its own de-
posits. II the directors and stockhold-
ers of bank. who control and manage
the moneys of Its customers. are not
willing to guarantee its deposits. how
make hs nothing out @ OF the bapR to ~o as
sumo that risk? Every financial Of
ficer of the United states. Of the va
ri etc nfna tin0 nd ri ina nj a
posits. why should not the ordinary
i depositor have the same protection?
The Kansas State Bankers Assocla-
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
future day be a bank failure. As banks
are now able to pay to a fund small
fraction of that which they obtain from
to guarantee their deposits. then surely
now is the time for the enactment Of
such legislation.
Public Service Commission.
II On account OF the growth of the
business Of SO many public utility cor
porations. a commission. in my judg.
Mth care and after fa1 invesfigatton esf
regulate and control the same.
The state of New York has adopted
! Sucn a pubic 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,
i 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-
deavor to make the public pay diyi-
dends upon such watered stock. To
require ,suc such a, corp1ration. en- before at 1t
tain the consent of a Public Service
Commission, which will consent to such
increase only upon a showing of value.
is bound to produce a most wholesome
effect. The right % every one of these
corporations to do business in state
exists only by virtue of charter given
to it by the state, and it is proper
that the interests of the public should
| being vested in commission.
| Railroad Commission.
| A recent decision has been rendered
! declaring the railroad commission act
| therefore essential that there should
tse some power vested in somebody by
the legislature to control such cor
| Public Service Commission. but II that
| cannot be accomplished. then there
| should be created a Railroad Commits
sion to prevent the imposition of un-
reasonable rates and charges, unjust
diserriminaation, rla inadeauat,e railway
| bates and all other unjust things det-
rimental to the people. Every state in
I 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 a commission In this state.
AS long as railroads are permitted
| to issue passes to the people. SO long
will they have an undue influence in
| the framing OF laws and in the obtain
ing of special favors and privileges
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. 1 asked at the window of the
ticket office at the Union depot wheth-