The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-14
GRAVE DEFECTS
IN BANKING LAWS
Statute Gives Officials Chance
to Dispose of Assets and
Hide Misdeeds.
MINERAL WORK A SUCCESS
Corporation Commission in An
nual Report Gives Summary
Of Business.

Failure to provide u custodian for
the assets of insolvent State banks is
the greatest defect In the law govern
ing official examinations of these insti-
tutions. in the opinion of the State
Corporation Commission. The subject
is treated at some length in the eighth
annual report of the commission, is
sued yesterday.
The law under which the bank cX-
aiming division was organized at the
direction of the Corporation Commits
sion has been in force only n little more
than u year. 1t has been variously
but the most serious objection is thus
raised by the commission.
Give Chance for Fraud.
Under the existing statute" says the
report, referring to the moment when
the examiner discovers Il state of in
solvency, "all that the examiner can
do is to report the facts TO the COM
mission, All that the commission can
do is TO notify the banks officers and
directors and, upon failure of such Of
ficers and directors TO correct the ir
reg ularities within thirty days, then
the commission may apply for
ceiver. In the meantime the assets and
books of the bank must remain In the
custody of It's own officials who have
Iuil opportunity 10 impair OF dispose
of the assets and possibly to destroy
the evidence of their own misdoings.
The statute should certainly be 80
amended as to empower the examin-
err, under such circumstances, to take
Immediate possession of the assets of
the bank for the purpose of preserving
the existing status until the irregulatI-
ties arc corrected. the impaired capital
is restored, or a receiver is appoint ID"
voluminous Report.
The annual report of the state Cor
poration Commission Is contained in Il
volume of 1.5l2 pages. not including
the appendix comprising the irginia
rate Qualification. which was issued sew
eral months ago.
The contents include tho letter of
the appendix, comprising the Virginia
commission. a record of matters dis
posed of by the body as court, lists
of charters and amendments, mergers.
revivals and foreign corporations.
roster of State banks, and taxation
transmittal to the Governor, the rules
statistics of all public service corpora
lions. including their earnings and tle
extent of their operations during the
last year.
Charters We're issued to 500 firms,
against 97l for the previous year. In
addition. there We're l79 amendments.
i've revivals of old charters, two mer-
gers and 205 voluntary dissolutions
Licenses to do business in Virginia
were issued to eighty-four foreign cor
porations and twenty-one amendments
to the char OF such concerns were
filed required by law.
Mr.. stones Work.
Commissioner Rhea." pursues the
report has continued during the past
year to give special attention to the
assessment OF mineral lands" Acting
under authority of a new law. the com
mission appointed James a. Stone. OF
Bristol. as the assistant assessor of
mineral lands. He has been most dill
gent and energetic in the performance
of the duties imposed upon him. 1t is
confidently believed that no better
selection could have been made"
Summarizing the results of Mr..
Stones work, 1t Is stated that the ac-
tual Increase in the mineral land as
sessments during the first year Of his
work was considerably more than So
100000.
Referring to the resignation of Col
| oncl Joseph E. Willard from the COM
mission. the report says: Colonel Will
lard regarded public Office as public
| trust and had served the State faith
fully, wisely and unselhshly for many
years as a member of the House of
Delegates, as acknowledgements of
the State. and as member of this COM
| mission. The Commonwealth has thus
| lost from the public service a man of
ability and force, of generous nature
| and high ideals, whose laudable and pa
| triotic ambition-that infirmity Of no
BILE minds'-was TO give the State more
than he received during some of the
best years of his life which he devoted
to her services"
Qualifications in Chancery.