The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-01-30
Legislative Proceedings
Continued From Page One.


interests as does the bill introduced
Saturday afternoon in the upper house
by Sen. Wesley C. Mcdowell of La
Moure county, president Of the North
Dakota Banking association. The pro-
posed measure creates a separate state
banking department and places all the
state banks, as well as other financial
corporations, under the control and
jurisdiction of the same. Senator Nc
Dowell in preparing the BILL has had
the assistance of a number of promi-
nent members OF the assembly and a
very complete measure has been the
result of the effort put forth.
Under the provisions of the first
chapter of the proposed bill, a de-
partment of banking is created to have
charge of the execution of all laws
relating to state banks, savings banks,
trust companies, building and loan as
sociations, mutual investment corpora
tions, mutual saving corporations and
other corporations of financial nature
organized or doing business under the
laws Of the state and engaged wholly
or in part in the receiving of deposits
or the selling of their certificates of
Indebtedness or other obligations to
the public. The department is to be
known as the department of banking"
and is to be under the management
of the state banking board and a chief
officer to be known as the bank COM
missioner"
The state banking board consists Of
the governor, secretary Of state, attor-
ney general, and ex-officio, the presi-
dent and secretary of the North Da-
kota Bankers association. No COM
pensation is allowed any member, while
the last two named members have no
vote in the affairs of the board. The
governor is made the chairman, the at
torney general is made the boards at
torney, while tie bank commission is to
be the secretary. A majority of the
first three members named shall con-
stitute quorum, and regular meetings
are prescribed for the first Wednesday
of January, April, July and October of
each year at the office of the depart
ment at the state capitol.
Powers are vested in the board to
make such rules and regulations for
the government Of the corporations un-
der it's control as it may deem wise and
expedient but such rules must not be
in conflict with any Of the laws of the
state or the United States. 1t is made
the duty of the board to examine all
reports made by banks, and all re-
ports of regular or special eXamina-
tions made by the bank commissioner
and examiners from his department.
Such orders as may be, in the judg-
ment of the board, necessary to pro-
tect the public, and particularly the
depositors and creditors Of the several
Institutions, shall be issued. The
board is given authority to subpoena
witnesses and perform such other acts
as may be necessary from time to
time.
At the first meeting following the
enactment of the measure the board is
charged with the election of the bank
commissioner, whose term shall be for
a period of three years. such officer
shall reside at Bismarck during the
term of his Office, he shall be a prac-
tical accountant and judge of credits
of not less than five years active ex-
perience in bank work in the state. .
are qualifications that must be lived
up to by the bank commissioner. He
is not to be interested in any financial
institution under the Jurisdiction Of
the board during his term in office and
is requested to furnish a bond of $780,
600. His salary is fixed at $4,000 pei
aanum
The bank commissioner assumes al
of the authority now vested in the
state bank examiner so far as they
relate to the control of financial in
situations and shall take over all rec
ords and files relating to work pre-
yiousIy done Constant supervision
shall be exercised by the commission
er over the corporations coming within
his jurisdiction, and he shall, person.
ally or through examiners provided il
the bill. inspect and verify assets ant
liabilities OF each corporation by
visiting such institutions at least twic,
q wear. Methods of accounting are
also to be investigated for the purpos,
OF determining whether they are il
accordance with the law and sounC
banking usage and principles.
Not more than seven bank exam
liners may be appointed by the com
missioner. subject to the approval o
the board. Such examiner shall giv'
a bond Of $4,000. One Of these ex-
aminers is to be designated as ex
oficio deputy bank commissioner an'
is to act during the absence or dis