The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1911-03-24
HAS
BANKING POLICY
SENATE 10 PASS or A nnrmffn
soHENm 70 REGULATE IT.
NAEOtAL oonroRA11ors.

one step was made IN che senate ycs
tefdsy towards cleaning up the impor.
taut work before that body. when the
ways and means committee recommend.
"a the tabling Of a number OF the pro.
miscuous bills Of great Importance
which IL ia considering and Offering Is
substitutes carefully drawn bills en-.
bodying ideas consistent with the I'M
dersiood policy OF the legislature.
The ways and moans committee dis.
posed Of Senator Q. Browns banking
bill, No. 90, by laying Il on tho table
and offering substitute bill which
viii reduce the present confused laws
reiating 10 banking and trust com
psnies into one law and do away with
number Of Inconsistencies that exist
at present.
The judiciary committee has intro
duced in the place Of the bill to repeal
the building permit chapter, several
bills which win lay down lines along
which tho supervisors are 60 act in
regulating building and buildings in the
city. The bills were carefully drawn
at the instance of the COMMITTEES and
will enlightened the city legislative
body II IL cares to read them.
The ways and means committee g
new banking bill provides that any
corporation incorporating under chap
ter 1853 of the Revised Laws has the
right to establish trust department.
This chapter is the one which has
hitherto governed the formation of
banking companies but has not extend
ed the trust rights, while the act pro-
viding for trust companies gives the
latter the right 10 do a lot of banking
business
Senator Cecil Browns bill was based
on the objection of the bankers in hav-
ing to submit TO more severe limita-
lions than tho trust companies, but his
bill was opposed by the combined trust
companies before committee.
The present bill, however, gets
around the objection advanced against
the Brown bill by the trust companies
by adding the clause that all companies
incorporating under Act 81 OF the SEES
sion Laws of 1905 Crust company act)
by granting them the right to conduct
commercial business. This bill seems
to knock out distinctions between the
two classes of companies.
The balance Of the bill regulates the
conduct of the companies on the new
status, providing, among other things
that the companies shall not exercise
any of the rights and privileges ex-
tended to them by this bill until n
regular petition, signed by the officers
and go. KID" by three-fourths of the
stockholders shall have been presented
to the treasurer to that effect.
The various departments must also be
kept separate and apart and a DIFF
ferent set of books must be kept for
each, accounting separately for the
profits, etc, of each.
The investments of the savings de-
partments must be kept entirely separ-
ate from the investments of the other
departments and the assets of each de-
partmcnt must be used solely for the
repayment Of depositors and creditors
Of that department.
The new bill is an important one in
establishing definite Hawaiian bank
ing policy with an individuality of its
own. 1t also provides penalties, maxi
| ing the violation of certain of its
clauses felony punishable with fine
of not less than $40 or more than $1,000
and not more than six months imprison.
ment