Gilpin observer., 1910-08-11

be paid for out. OF the fund 70 which
1t contributes, 1t 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 It's
capital Is first impaired. and notice TO
do so by the commissioner caused by
such Information from the other banks;
will cause the putting up of additional
capital and thus prevent the down
ward tendency. which finally results
the capital is almost extinEuished that
stockholders refuse to make good de-
iicits. Under the vigilance caused by
the interest Of each bank it would be
much less. 1t seems to me that the
very ease of mind caused by BANK
Guaranty fund to the bankers them EN-
Tor the small amount which they are
compelled to contribute to the guar
tight. that run might be made upon
a bank, often caused by false and un-
itors in banks Is said to have been on
the average less than one-tenth OF one
per cent a year. This is mere baga-
the great profits made by them In
lending out the deposits. Everything
and the states guaranty is one of the
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.
1 received communication a 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
homa three state banks had failed. and
that in the same time three national
banks had failed and their depositors
had received not a dollar.
1t is cOntended that such a law
guarantees the deposits of both small
and large banks. it will take depositors
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-
dition. Under the laws of nearly every
state. no bank can, lend to one person
an amount more than ten per cent of
it's capital; A merchant who deals
%fR UnR eank q Wbeb be tu
tally inadequate to his needs. while he
could borrow 100000 from bank
dition 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
solvent banks. This also is true of in
the healthy men go to pay the death
losses OF the sickly men. and no COM
d
healthy man than to a man who is
doubtful risk. But the Texas law
takes away even that argument from
the banks. for it provides that If any
bank does not care to pay into the
guaranty fund the amount assessed. 1t
can by a bond guarantee its own de-
posits. If the directors and stockhold
ers of 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 as
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-
depositor have the same protection?
The Kansas state Bankers Associa-
tion. through its 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
RADIO 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 fund a small
the depositors, and are able by bond
to guarantee their deposits, then surely
now is the time for the enactment of
such legislation.
Public Service Commission.
on account of tn. growth of the
business of so many public utility cor
porations. commission. In my judgI
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 sus-
cessful and beneficial to both the pub
lie and the utility companies.
Corporations are to be treated fairly,
but al the same time they should not
be permitted to eXtprt from the pub
lie unjust and discriminating rates, nor
modate the public. One of the greatest
evils arises from the over capitaliZa-
tion OF such corporations and the en-
deavor TO make the public pay dtvi-
dends upon such watered stock. To
require such corporation. before II
can increase its capital stock. to OBJ
tain the consent of Public Service
Commission, which will consent to such
Increase only upon showing OF value,
effect. The right o. every one of these
corporations to do business in a state
exists only by virtue OF a charter given
that the interests of the public Should
be protected by a controlling power
being vested in commission.
Railroad CommissIon.
A recent decision has been rendered
declaring the railroad commission act
of this state unconstitutional. 1t is
therefore essential that there should
the legislature to control such cor
, porations. II should be vested in the
Public Service Commission, but II that
cannot be accomplished. then there
should be created a Railroad Comm!s-
sion to prevent the imposition of un-
reasonable rates and charges. unjust
discrimination, Inadequate railway
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 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 so long
In NaAn Ia
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
I political conventions held spyerul wears