The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-02-16
BANK MEASURE
PASSES HDl||
'''es Through Practical,
Reported by Committee
on Banking.
MANY CHANGES MADE
IN THE PRESENT ii
Main Purpose in View l. !.
Better Protection Of
Depositors.

House bin No. 1913. subst,tu,.
bin NO. Ss, the banking m.a,,,. i
Anderson Of Morgan COUNTY A.. - p
most important measures ,b., IN,
mend the attention Of the ,ov,.,., Y
the present session. was pasass ~ 7
mouse Wednesday afternoon v,,s
one dissenting vote-tba, ~ ".
ol Summit county. The sallen, g..
OF the bill are as follows: = Il
Makes the secretary Of s,s,s A., "a, /,
bank commissioner and proyIds. -, :,
appointment OF ono or mora b,rr
aminers by the governor. !
Provides that when national and ~.
banks are closely affiliated. ,h,, J.
state bank examiner NAV disc,.x. !. 4
national examiner the true condItic,
The. state bank. provided tile nstiors'
afniner dlscloses TO the STATE eya-s,-
the true condition of the national h.as'
PROVIDES that no bank shall In,s
Its funds 10 any officer or direntcr -.
out the giving Of security Of Al iss.
double the value Of the loan. and 4,
then upon the approval Of a tVosi0I,;
'ptS oi inS Dparu OF directors or efc--
tive committee, - -
per year for which tho hanks shsI T.
from S25 To- $3.50. according Ia - y
ranging from 100000 10 $2y,oO0 .0oa r
Provision as to Capital.
Provides that no bank shall star, IA
capital Of less than $4,000. In eIii.
IN i,,l, J.
must be not less than $4,000 and h
capital Is Increased up TO not leDs d.
100000 for cities OF 10000 populatlo1 /
more.
Provides that no certificate of en
poretion shall issue until at lsah
per cent OF the capital stock has H.
paid in cash.
Provides that no person shall Be- AID
BILE for election as. director Of 4 ~
unless he is a stockholder and on,
shares to the actual market value q 4
least 5000. In cities of the first aud Il
ond class he must own shares Of 4.
market value of $500.
Provides that no bank shall! cram.
a branch institution. and gives bran>
banks, now I'm operation, one yrar
which to close up their busneN,
Other Provisions V
Eliminates that portion Of bouse N
No, 30 which provided the clIa
securities in which savings deposits o.
be invested. and which could ne acap4
as collateral on loans OF the szs11@
banks. and authorizes the board of q
rectors OF such banks to uss thelf @'
discretion I'm the class of sacurit5
collatcrals 10 be accepted.
Prohibits the establishing or nlI4
tenance OF private or partnership oarz
and gives banks OF that Kind non
operation five years In which 70 80
from business or 10 incorpoFats us1
tho provisions OF the new act.
Reduces the amount OF cash rsyerle
DC held by all banks from one .mh
such lawful reserve TO one-fourth,
Provides for quarterly examination
the affairs OF the bank by the dlreeloI
Instead of monthly examinations
Makes the penalty for accepting
posits when a hank is lnsoHent. ~
the intent TO cheat or defraud. feiH
Reduces the amount OF the reserve "
70 he carried bv banks In cilis
first and second classes from ~ per
of the capital stock TO 10 per cent
Permits banks to borrow money
certificates of deposit from pa1Es ouu.
Of the state, instead OF MAKING ~
transactions absolutely prohieltlve;
Provides that the secretary o.
shall not issue his certificate, o. lnS
poration TO any new bank until fhe -
cles Of agreement have been sgg9
by the bank commissioner. and ausaei ses =
the commissioner 30 withhold ns
proval if he finds the incorporal9sIuss, "a,
irresponsible. or that they sts gssf; gf
sional bank organizers. or II us =
In which It is proposed TO operse0 =
provided with banks