The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-17
ALDRICH'S PLAN.
{ Continued from Page one,

ana local taxation, except in respect to
the taxes upon real estate owned by t.
Only national banks of the classes
herein provided for may subscribe to
the capital stock of the reserve associa-
ton A national bank having a mini
mum capital of at least $4,000 may
subscribe to an amount of capital stock
of the reserve association equal to %
per cent of the stock of the subScrib-
ing national bank, and not less, and
each of such subscribing banks shall
| become a member of 9 local association
as herein after provided for. Fifty per
cent of the subscriptions to the capital
stock of the reserve association shall be
4 called in cash: the balance of the sub
scriptions ill;remain liability of the
! stockholders, subject to call.
| Shares of capital stock of the reserve
association will not be transferable and
under no circumstances may they be
! owned by any. corporation other than
the subscribing national bank, nor by
any individual, nor may they be owned
by any national bank in any other
emo-'nt than in the proportion here
| provided.
Distribution of Earnings.
The earnings of the reserve associa-
ton shall be distributed in the follow
| ing manner:
After the payment of all expenses
| and taxes the stockholders shall re-
ceive per cent. Further earnings shall
be divided. one-half to go to the sur
plus of the reserve association until
| that surplus shall amount to 20 per cent
of the paidin capital; one fourth to go
! to the government of the United States
| and one-fourth to the stockholders; but
| when the stockholders dividends shall
| reach 5 per cent they shall receive no
additional dividend distribution. After
! the stockholders receive per cent the
| earnings shall be divided, one-half to-
| be added to the surplus of the reserve
association. and one-haf to go to the
| government. After the stockholders
| receive per cent per annum and the
surplus of the reserve association
| amounts to 20 per cent of the paid in
| capital. all excess earnings shall
| go to the government. The minimum
dividends to the stockholders shall be
| cumulative.
| All subscribing banks shall be form
| ed into associations of national banks
! to be designated as local associations.
| Every local association shall be COM
posed of not less than 10 banks, and
| the combined capital and surplus of
the members of each local association
shall aggregate not less than $5.000000.
Division of Territory.
| All the local associations shall be
grouped into Is divisions, to be called
| districts. The territory included in the
| local associations shall be so appor-
| toned that every national bank will be
| located within the boundaries of some
| local association. Every. subscribing
national bank shall become a member
| of the local association of the terri
| tory in which it is situated.
| Each local association shall elect an
nually a board of directors.
| AS heretofore provided. all the local
associations shall be grouped into Is
shall be designated a district. There
shall be located in each district a
branch of the reserve association. Each
of the Is branches of the reserve as
ISOLATION shall have board of direc-
| tors.
The board of the reserve association
shall consist of 40 directors, and it shall
/ be composed in the following manner:
First-Six ex-officio members, name
| ly. the governor of the reserve associ-
alton. who shall be chairmon of the
| board; two deputy governors of the re-
serve association, the secretary Of the
| treasury, the secretary Of commerce
and labor and the comptroller of the
| Second-Fifteen directors to be
elecSed, one by the board of directors
of each branch of the reserve associa-
ton. They shall be elected by ballot,
| each member of the branch board haV-
| ing one vote
Third-Twelve directors. who shall
| be elected by voting representatives,
| one representing the banks embraced
| in each district. Each voting repre-
| sentative shall cast number of votes
| equal to the number of shares in the
reserve association held by all the
banks in the district which he repre-
| sents.
| Fourth-The board thus constituted
| shall select twelve additional members
who shall fairly represent the indus
trial, commercial. agricultural and
| other interests of the country and who
| shall not be officers of banks. Direc-
| tors of banks shall not be considered
as officers.
| Legislators Are Barred.
No member of any national or state
| legislative body shall be a director of
| the reserve association nor of any of
| the branches, nor of any local associa
| ton.
| The executive officers of the reserve
association shall consist of a governor.
| two deputy governors, secretary and
such subordinate officers as may be
provided by the bylaws. The governor
and deputy governors shall be selected
| by the president of the United States
from list submitted by the board of
directors. The governor shall be sub
ject to removal by the president of the
| United States for cause. The term of
| office of the deputies shall be seven
years, but the two deputies first APP
pointed shall be for terms of four
| years and seven years, respectively.
Each branch shall have manager
| and a deputy manager. They shall be
| appointed by the governor of the re-
serve association. with the approval of
| the executive committee.
Anv member of a local association
may apply to that local association
for a guaranty of the commercial pa
| per which it desires to rediscount at
the branch of the reserve association
in its district. Any such bank receiv-
ing a guaranty from a local associa-
! ton shall pay a commission to the To-
| cal association, to be fixed from time
to time by the board of directors of
! that local association.
Guaranty Plan.
| The guaranty of the members. of the
| local association. in the event of loss,
shall be met by the members of the
! local association in the proportion to
] the ratio which their capital and sur
| plus bears to the aggregate capital
and srrnlns of the local association