Omaha daily bee., 1911-01-18

Inc country snail De dlNiQeQ INTO AlAleen
districts and a branch Of the Reserve as
ISOLATION shall be located In each district
The reserve association and its branches
shah be exempt from state and local taxa
ton. except in respect to taxes upon real
estate owned by st.
Only national banks OF the classes here
matter provided for may subscribe TO the
capital stock Of the reserve association. A
national bank having a minimum capital
Of at least $4,000 may subscribe to an
amount OF capital stock OF the reserve as
ISOLATION equal to Is per cent Of the stock
Of the subscribing national bank. and not
less. and each OF such subscribing banks
shall become a member OF a local assOci-
alton as hereinafter provided for. Fifty
per cent OF the subscriptions to the CRpi-
tai stock OF the reserve association shall
be called in cash; the balance Of the sub
scription will remain a liability OF the
stockholders subject to call.
The earnings OF the association shall be
distributed in the following manner:
After paying all expenses and taxes
the stockholders shall receive 4 per cent.
further earnings shall be divided. one
half TO go to the surplus OF the reserve as
ISOLATION until that surplus shall amount
to 70 per cent Of the paid IN capital: one
fourth TO go to the government OF the
United States and One-fOurth to the stock
holders but when the stockholders divi-
dends shall reach per cent they shall
receive no additional dividend distribution.
After the stockholders receive per cent
the earnings shall be divided, one-haIf 10
be added TO the surplus Of the reserve
association and one-half to go to the gov
eminent. After the stockholders receive
s per cent annum and the surplus Of the
Of the paid In capital all excess earnings
shall go to the government. The minimum
dividends to the stockholders shall be
cumulative.
District Associations.
"All subscribing banks shall be formed
into associations of national banks to be
designated as local associations Every
local association shall be composed of not
less than ten banks, and the combined
capital and surplus of the members OF each
local association shall aggregate not less
than 100000
"All the local associations shall be
grouped into fifteen divisions to be called
districts. The territory incldued I'm the
local associations shall so be apportioned
that every national bank will be located
within the boundaries of some local assn
citation. Every subscribing national bank
shall become a member Of the local assoc
citation of the territory in which it is
, situated.
AS heretofore provided all the local
associations shall be grouped into fifteen
divisions and each Of these divisions shall
De designated as q district. There shall be
located In each district a branch OF the
reserve association. Each of the fifteen
branches Of the reserve association shall
/ have a hoard ~
Board of Association.
The board Of the reserve asso-
citation shall consist Of forty-five directors
and 1t shall be composed in the following
manner:
the governor of the reserve association,
VINO shall be chairman Of the board deputy
Governors Of the reserve association the
secretary OF the treasury, the secretary of
Commerce and Labor and the comptroller
| OF the currency.
Second Fifteen directors to be elected,
one by the board OF directors of each
branch of the reserve association They
shall be elected by ballot, each member VI
the branch board having one vote.
"Third-Twelve directors, who shall be
elected by voting representatives one rep
resenting the banks embraced in each dis
trict. Each voting representative shall cast
a number Of votes equal 70 the number OF
shares I'm the reserve association held by
an the banks in the district which het rep
,'Fourth-The board thus constituted shall
select twelve additional members who
merciaL agricultural and other interests
o. the country and who shall not be Of
nceTs OF the banks, Directors OF banks
snail not be considered as officers.
Executive Officers.
; The executive officers OF the reserve as
ISOLATION shall consist OF a governor. two
deputy governors, a secretary and such sub.
Is.r.fN
bylaws The governor and deputy govern.
ofs shall be selected from list submitted
by the board of directors. The governor
, shall be subject to removal by the president
OF the United States for cause The tern
Of office of the deputies shall be sever
years, but the two deputies shall be sever
shall be for terms Of four years and sever
, years respectively.
Each branch shall have manager anI
deputy manager They shall be appointe,
by THE governor of the reserve association
with the approval of the executive commit
/ tee. The powers and duties OF the manage
; and deputy and variorN committees Of tn
, branches shall be prescribed by the bylaw
of the reserve association
ANY member of a local association ma,
apply to that local association for a guar
) anty Of the commercial paper which IL de
4 sires to rediseount at the branch OF tn
[ reserve association in its district Any suel
, bank receiving a guaranty from a Ioca
s association shall pay a commission to tn
local association, to be fixed from time L
y time by the board Of directors OF tina
local association.
3 IAN Of the privileges and advantages o
; the reserve association shall be equitabl
Z extended TO every national bank OF any o
q the classes herein defined who shall sub
S scribe TO its proportions of the stock O
70 the reserve association and shall othergis
n conform TO the requirements of this act
n The government OF the United States an
10 those national banks owning stock I'm IN
II reserve association shall be the sole de
postors in the reserve association. A
domestic transactions OF the reserve assn
=, ciAtoh shall be confined 70 the govern
. ment ana the subscribing banks with IN
I. exception OF the purchase or sale of govern
!. ment or state securities OF foreign eountris
or Of gold coin or bullion.
i Depository for Governments.
is The government Of the United state
ID shall deposit it's cash balance with the r,
. servo association and thpras ftc- an I'm,