The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-12-27
new MERIDEN BANK.
Charter Granted Today and Now
There's a Town Row.

That joker in the Kansas banking
law making it discretionary for the
charter board to grant or reject an
application for a bank even on the
prescribed showing, was the basis OF
contention in the secretary of state
office in application for a charter for
a second bank in Merioen. me new
bans received its charter. And now
the original bank in the town may
take the case to the supreme court.
In the legislative session of 1909,
someone slipped a provision into the
statute that enabled the charter
board on recommendation of the bank
commissioner. who is also a mem Der
of the board to deny new state
bank the right to open banking in
stitution in a town where there is al
ready one or more banks. Governor
Stubbs vetoed the bill.
But two years ago the state bank
ers came back strong and again that
strange provision found a place in the
busy days of the legislature. While
the constitution declares emphatically
that the charter privileges shall be
governed entirely by the general law
that no special act shall apply. YET
that provision in the Kansas law has
caused a world of contention in the
two years it has been on the books.
Shortly after the law was enacted,
some people wanted to start new
hank at Abilene. John s. Dawson, at
torney general and as a member Of
the charter board, voted for the bank
and wrote a separate opinion in the
case. But Bank Commissioner }. n
D0IIeV and Secretary of state ChaTleS
Sessions voted against the establish
rnent of a new bank in Abilene and
the case went to the supreme court.
Because of Dawson's opinion. the
main questions in the case were not ar
suod and the court held that on the
face of the facts submitted the char
ter board had the power given them
by the Legislative enactment. Then
came. more trouble in state banking
affairs
board had no discretionary powers in
the granting of charters to one or ~
hotel companies, printing establish
ments, wholesale houses or railroads to
do business in a certain community.
Yet when it came to the issuance of a
charter for a little state bank the
proposed banks chances for success
or failure rested entirely on the views
of the members of the charter board
And so when some of the business
men and farmers in the Meriden dis
trict wanted to establish the Farmers
state bank with a charter Of $4,000
the officers and stockholders of the
state Bank of Meriden objected. Re
fore the board they argued that the
present bank with a capital of 100000,
surplus of 8. GOO deposits of 1927 900;
ment, was amply able to handle the
business of the community. They con-
tended that a. new bank was really bad
public policy and that one bank was
sufficient in a town the size of the
Jefferson county village.
On the other hand the incorporators
of the new Farmers State bank in
sisted they were acting in good faith
and there was plenty of room in the
town for two banks; and that even if
there were not sufficient room, two
banks had as much right to enter
honest competition did two grocery
stores.
1t was because of the strength of
the present bank that Bank Commits
sfoner Dolley voted for the charter of
the new institution. Both Secretary OF
State Sessions and Attorney General
Dawson voted with him.
Much feeling has been aroused in the
little town because of the agitation
for a new bank and it may not sub
side since the new bank has received
it's charter.