The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-03
Supreme Court of United States
Upholds State Guaranty.
Ends Big Fight Waged by the
National Bankers.
OTHER STATES ALSO.
Oklahoma and Nebraska Meas
ures Also Sustained.
Commissioner DOlley Is Greatly
Pleased at Victory.

Washington, Jan. 3-The fight
against the policy of the state guaran-
teeing bank deposits met with re-
verses today when the supreme court
OF the United States held constitution
al the bank guaranty laws of Okla
homa, Nebraska and Kansas,
The three acts were passed by the
respective state legislatures as a result
OF the. financial stringency beginning
IN l9O1- They were similar except
that the Nebraska law made it obli-
gatory on all state banks to contribute
TO the guaranty fund to be placed in
the hands of state officials, while the
Oklahoma and Kansas legislatures left
the contributions with attendant du-
ties ana Dement'S to the discretion of
the banks themselves.
The supreme court of Oklahoma held
that the law was constitutional so did
Inc circuit court of the United States
FOR the district of Kansas in passing
On the Kansas law. The circuit court
OF the United States for the district
OF Nebraska, however, held that the
Nebraska law was unconstitutional
All three cases were argued at the
same time and the laws defended as
proper exercise of the police power
OF the state Justice Holmes today
announced the decision of the court
affirming the Oklahoma and Kansas
judgments and reversing the Nebraska
courts holding.
State Bank Commissioner ]. n. Dol
ley, who. more than any other one
guaranty law, and who was speaker of
the house of representatives when the
bill was drafted and passed by that
body two years ago, and who has had
a stormy time of it for two years past
in his administration of the law in this
state, was greatly elated today when
the Associated Press item was read to
him in the State Journal office today.
Mr.. Dolley was given a Christmas
present a year ago by Juo/e Pollock
of the federal court in the form of an
injunction annulling further operation
of the law. AT that time some four
hundred state banks had joined the
state association and were advertising
| public. Mr.. Dolley and the insurgent
| leaders of Kansas. through the attor-
ney generals office, appealed the case
to the circuit court of appeals. G. H.
Buckman and Alex. Mitchell were en-
| ployed as special counsel to assist the
attorney general The state won in
| the higher federal court, and then the
national bankers who had fought the
| law from the beginning, appealed to
| the United States supreme court.
| The decision handed down by that
body today makes the Kansas guaranty
law firm and solid for all time to come
1t has been through the fire Of all the
courts ever since it's passage, and now,
after two years, comes out tested and
| sound.
| Speaking today of the decision Bank
| Commissioner Dolley said:
| 81 am much gratified with the sweep
| ing decision of the United States SUI
prerne court regarding the guaranty OF
| bank deposits. We have made wonder
full progress with the law. In less thar
two years from the date of its passage
| it has been presented in three fedora
courts and our own supreme court. AL
the judges have upheld the law as
sound, sane and practical and in the
Interest of the masses of the people ex.