The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1911-05-26

ers' section of the Oklahoma Bankers
association over adoption Of resolu-
tions offecting the state guaranty law,
forcasted Monday night, were dispellcd
yesterday, and the convention closed
last night without a ripple of dlscurd.
Governor Cruce and j. c. McCIelland
member of the state banking board,
made speeches and answered questions
and bankers declared they learncd
mere about the condition of the fund
and the laws workings than they hadl
during the last three years Accord
ing to N. T. Gilbert of Lawton, inter-
ested in a bank which recently was
converted from a state to a national,
the forty or fifty banks converting
would not have done SO had the bank
ers been able to get a statement Of
the condition Of the guaranty fund
Every time we asked, said Mr. Gil
bert to the convention, I'VE have been
met with the statement that not a sin
gle depositor ever had lost a cent and
the law was the finest on earth.
In his paper, Mr.. McClelIand said
that the present board inherited from
the former board $36,292.27 subject 10
immediate check, and 100000 deposit
ed, the checking of which would have
resulted in the closing of two banks.
In view of this condition, the board de-
termined upon the 1 per cent assess
ment, amounting to about 100000
Liquidation of the Merchants and
Planters bank of Oklahoma City.
which has been completed, drew on the
fund for s250,000 and the board hopes
to collect $150,000 out of the assets and
double liabilities of stockholders. Three
other banks have been liquidated since
the board took charge, the last one
being a few days ago, all drawing on
the fund for between $4,000 and $780,
600.
You bankers who nave contributed
to the fund have a right to know what
has been done with your money" said
Governor Cruce in his address, which
the bankers applauded, "and I will ex-
tend the class to include every depos
| itor in your banks If state bankers
are tired of the guaranty law, and
want to go to the national bank fold
go, and God bless you, and the quicker
you determine the matter the better
off will be both the state bankers and
yourselves, The guaranty idea is well
grounded in the hearts of the people
and is just as perfect here today as
life or fire insurance was when il
started. 1t should be so that when a
man takes stock in a state bank he be
able to show the board that he has
sufficient property to meet the losses
his stock calls for in case there is a
failure. If you state bankers are to
have a lighter load you will have to
get rid of the dishonest state bank srs.
Five bankers have been arrested dur
ing the last few months"
Addressing himself to national bank
ers, the governor said: "Oklahoma
wants no conflict between the state
and national banks, but if the national
bankers draw their swords with the
view of decapitating the state guaranty
law that gives protection to the peo-
pie, you will find Oklahoma not run
ming from the contest. To those who
have not paid their assessments / want
to say there will be no favorites. You
will have to obey the law or get out
from under it. / have heard it said
there was not enough money in tho
fund to protect failure, but | win
tell you that since January we have
liquidated four state banks and have
had to make but one emergency assess
ment"
II. M Spalding asked the governor
about employment of special attor-
neys for the banking board, when the
state has an attorney general. He said
that the public understood $4,000 has
been paid for legal services The gov.
ernor answered that the banking board
had made tentative arrangement to
pay $4,000 a year fot attorneys, that if
the attorney general looked after it he
could attend to nothing else, since the
board has filed forty suits and pos
sesses bank assets worth $500.000
The Davis resolution, offered yester
day was adopted in virtually the same
form, only softened with reference tc
what the state banking board should
do about those banks failing TO pay
their assessments. The resolutions
call for prosecution of bankers whc
violate the law, and recommend the
designation of one state banker from