The Colorado statesman., 1910-08-13

that the failure OF another bank must
be paid for out OF the fund TO which
IL contributes, Il can be readily seen
that the bank commissioner Will al
ways be informed OF the first indica-
tion OF failing conditions. All stock
holders and directors of banks VIII
readily put up more money when It's
capital IL 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
ward tendency, which finally results
In the banks failure. II IL only when
the capital is almost extinguished that
stocl<holders refuse to make good de-
ticits. Under the vigilance caused by
the interest of each bank 1t would be
very ease of mind caused by Bank
Guaranty fund to the bankers them
Tor the small amount which they are
compelled to contribute to the guar
anty fund. No condition is more hor-
rible than the fear. when money is
tight, that a run might be made upon
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 great profits made by them In
lending out the deposits. Everything
should be done to instill confidence
things which Will cause more confi-
dence in the banks than any other
thing yet suggested. That confidence
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 n 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
every dollar of deposits had been paid;
that in the same time three national
banks had failed and their depositors
had received not dollar.
GOntandpd such a
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
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 $2,5OO.0O, which may be to-
tally inadequate to his needs. while he
could borrow 100000 from. bank
with capital of 100000. This con-
dition almost compels the large dealer
to keep his account in the banks or
large capital.
Bank Guaranty Law is that it compels
the solvent to pay the losses of the in
solvent banks. This also is true of in.
surance companies. The premiums of
the healthy men go to pay the death
losses OF the sickly men, and no com
healthy man than to a man who is a
doubtful risk. But the Texas law
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 a bank, who control and manage
the moneys of its customers. are not
willing to guarantee its deposits, how
can they expect the depositors. who
make nothing out Of the bank. to as
ficer of the United States, of the va
rious states, counties and cities of this
posits. Why should not the ordinary
depositor have the same protection2
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 bank failure; As banks
fraction of that which they obtain from
the depositors, and are able by BOND
now is the time for the enactment OF
ssch legislation.
Public Service Commission.
On account of the growth Of the
business of so many public utility cor
ment, should be created which viii
with care and after full full investigation
The state of New York has adopted
such a public service commission law
and its operation has proven PSeth very h sue sue
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-.
evils arises from the over capltaliza-
tion of such corporations and the en-
dends upon such wetered stock. To
require such corporation. before II
can increase it's 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 most wholesome
corporations to do business in state
exists only by virtue of charter given
hat tS t the % interests f % Of H the public Should
be protected by a controlling power
being vested in commission.
Railroad Commission.
recent decision has been rendered
declaring the railroad commission act
of this state unconstitutional. II Is
be some power vested in somebody by
the legislature to control such cor
porations. 1t should be vested In the
cannot be accomplished. then there
should be created a Railroad Commis-
reasonable rates and charges, unjust
discrimination, inadequate railway
service. the giving or receiving of re-
bates. and all other unjust thlnEs Get
rfmental to the people. Every state in
the Union except Delaware, Wyoming
and Colorado has such Railroad Com
mission some of them are exceedingly
efficient and effective and there should
be such commission in this state.
AS long as railrocds 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
f,,er Of
from the various officers of state,
county and city governments. The in
fluence of railroad companies begins
with the holding of conventions of each
nf the nnlitical narties. At one of the