The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-01-30
MCDOWELL BILL
FOR REGULATING
THE STATE BANKS
President Of Bankess' Associa-
tion Has Introduced Com
prehensive Measure
CAPITAL STOCK Of BANKS
.F|xEDBY TOWNS POPULATION

State Banking Department Created
and Placec Under Control Of Spe.
cfally Constructed Board-Methods
Of Examination Improved.
(H. d. PAULsON.)
Bismarck, N. D., Jan. 30.-No con-
templated legislation in this state for
number Of years has held so i'm
portant a bearing upon the banking
interests as does the bill introduced
Saturday afternoon in the upper
house by Senator Wesley c. Mcdowell
or LaMoure county, president Of the
North Dakota Banking association.
The proposed measure create q sep
arate state banking department. and
places all Of the state banks, as we'll
as other financial corporations, under
the control and jurisdiction of the
same. Senator Mcdowell, in prepar-
Ing the bill, has had the assistance of
number Of prominent members of
the assembly and very complete
measure has been the result Of the
effort put forth.
Under the provisions Of the first
chapter OF the proposed bill, a de-
partment Of banking is created to
have charge Of the execution of all
laws relating to state banks, savings
banks, trust companies, building and
loan associations, mutual investment
corporations. mutual saving corpora
tions and other corporations of q
financial nature organized or doing
business under the laws of the state
and engaged wholly or in part in the
receiving Of deposits or the selling
OF their certificates of Indebtedness or
other obligations to the public. The
department is to be known as the
Department of Banking" and It is to
be under the management Of the state
banking board and a chief officer to
be known as the bank commis-
sioner." =
The state banking board consists Of
the governor, secretary of state, at
torney general and ex-oficio, the
president and secretary Of the North
Dakota Bankers association. No
compensation 10 allowed any member.
The last two named members have no
vote in the affairs Of the board. The
governor is made the chairman, the
attorney general is made the boards
attorney, while the bank commission
er Is to ethe secretary. A majority of
the first three members named shall
constitute quorum, and regular
meetings are prescribed for the first
Wednesday of January, April, July
and October Of each year at the Of
fees of the department at the state
capitol.
Powers are vested in the board to
make such rules and regulations for
the government Of the corporations
under Its control as It may deem
wise and expedient, but such rules
must not be In conflict with any of
the laws Of the state or the United
states. 1t is made the duty Of the
board to examine all reports made by
banks, and all reports Of regular or
special examinations made by the
bank commissioner and examiners
from his department. Such orders as
may be. in the judgment Of the board,
necessary to protect the public, and
particularly the depositors and credi-
tors Of the several institutions, shall
be issued. The board is given au-
thority to subpeonae witnesses and
perform such other acts as may be
necessary from time to time.
Board Names Commissioner.
= At the first meeting following the
enactment Of the measure the board
Is charged with the election of the
bank commissioner whose term shall
be for a period of three. years. "Such
officer shall reside at Bismarck dur
Ing the term Of his office, he shall be
q practical accountant and Judge of
credits. of not less than five years.
active experience in bank work in the
state" are qualifications that must be
lived up to by the bank commission
er. He is not to be interested in any
financial institution under the juris-
diction Of the board during his term
In Office, and IL required to furnish a
bond Of 100000. His salary is fixed
at $4,000 per annum.
The bank commissioner assumes
all Of the authority now vested in the
state bank examiner 30 far as they
relate to the control of financial in
stitutions, and shall take over all rec
ords and files relating to work previ-
ously done. Constant supervision
shall be exercised by the commission
er over the corporations coming
within his Jurisdiction. and he shall,
personally or through examiners pro-
vided in the bill, inspect and verify
assets and liabilities of each corpora
tions by visiting such institutions at
least twice year. Methods of ac-
counting are also to be Investigated
for, the purpose Of determining
whether they are In accordance with
the law and sound hankin1 uaa ga and
principles.
Allows Seven Examiners.
Not more than seven bank examin-
ers may be appointed by the COM
missioner. subject to the approval of
the board. Each examiner shall give
q bond Of $4,000. One of these ex-
aminers Is to be designated as ex-
officio deputy bank commissioner and
= to act during the absence or dis