The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-06-21
BANKERSARE SORE
Abilene Men Will Test the New
Charter Law.
Board Turned Down Application
for Charter.
RIVAL CONCERN WINS.
Commercial State Granted the
Necessary Paper.
Courts Will See If the Action
Is Justified.
WAL CONCERN WINS.

AS the result of the denial of the
application for a charter for a state
bank at Abilene by the state charter
board today, the constitutionality of
the law passed by the last legislature
regulating charters will likely be test
ed by the courts. The charter board
at it's meeting today presented the
phase of house divided against it
self. There were applications for two
new state banks at Abilene, the Com
mercial State bank and the Central
State Bank of Abilene. There
are already three banks at Abilene.
The Commercial State was granted a
charter today by the board. The Cen
trail States application was denied.
Bank Commissioner J. N Dolley
voted for the Commercial and against
the Central bank application.
Secretary of State Charles Sessions
voted against both applications
Attorney General John Dawson vot-
ed for both applications.
Both proposed banks were repre-
scented at the board meeting, and upon
their own evidence it was found that
there was no demand or room for an
other bank in Abilene.
The board, in refusing charter to
the Central State bank. took this &C
ten under the law passed by the last
legislature, giving the board discre-
tionary powers in granting charters to
banks. The law is desigreC to protect
a community from over production
or. rather, too much competition. The
law takes the ground that too many
banks is a bad thing fer a town, in
that it makes bank failures probable
This is the first test of the new law
All three of the members of the charter
board wanted to explain" their votes
Each sent for his stenographer and his
impassioned speech in defense of the
free institutions of the republic was
taken down for the benefit of the
masses of the common people.
Mr.. Dolley voted for one bank and
against the other in a spirit of COM
promise. He thought that one more
bank would not do any harm, while
two more WOulC4 be too many. He
voted for the Commercial he said, be-
cause its application had been filed
first.
Mr.. Dawson voted for both applica-
tions because the law granting dis
cretionary powers to the charter board,
in his opinion, could not override the
constitution.
Mr. Sessions voted no on both appli-
cations because the banks themselves
king application would not admit
that there was room or demand for
more banks in Abilene. Acting under
the 1911 law and its provisions for such
a case. he could do nothing less
The Commercial State bank is head
| eu Oy A W. Enrllcn- OF IOpeka ana A.
NJ. Winkler and J. L. Kruger of abb
| lehe. 1t is capitalized at $4,000.
The Central State bank of Abilene is
| headed by G. c. Ster1 and F. A. Wilcox
and is capitalized at $25, 600.
| The Central State hank, after having
been denied charter. proffered the
amount of it's charter fees which was
refused 1t is expected that this bank
will test the constitutionality of the
new discretionary law relating to
bank charters in the courts by asking
for mandamus to compel the charter
board to grant it the charter prayed
for.