The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1913-05-08
SUMMARY OF WORK OF
THE RECENT LEGISLATURE
Credit or Blame Of Session of 1918 Must be Shared by All Three
of The Political Parties. Much Work was Done by SOOns
and Most of il is Satisfactory to the Governor


gubernatorial candidates to 81, 500. Al
ready there is a federal law requiring
candidate for congressman and United
States senator to file their expense
accounts at Washington. The Copley
law is intended to purify elections and
give the poor man a chance to as
pire to the highest Offices in the state.
Future elections in this state will
probably be conducted on a different
basis from the ones held in the past.
Banking Commissioner Doyle is we'll
pleased with the work of the legisla-
ture as far as his department is con-
cerned and he believes that the bank
ing laws Of the state have been
greatly strengthened as a result of the
new legislation.
concerned in the handling of money,
accounts, securities, etc, of a bank
will be required to furnish either per-
sonal or surety bonds. If the latter is
furnished the premium must be furn-
ished by the bank.
The expense of making examinations
of state banks upon their organization
shall be paid by the banks. The ex-
animation fee, however, shall not ex-
ced $40 per day for the service of
each examiner, together with the
travelling and hotel expenses incurred.
There is another new law which pro-
vides that by a two-thirds vote of the
capital stock of any bank the stock
holders shall have the power to fix
the value of and the price at which
the increase OF capital stock shall be
subscribed and paid for by the stock
holders. This section also authorizes
the directors of the bank TO sell any
part of such increase not subscribed
by the stockholders, at a price fixed,
after they have had q reasonable OPP
portunity to make subscription OF their
proportionate shares thereof. Here
after, as the result OF another new
law added to the statute books by pres
ent legislature, any officer who has ac-
tive management Of the bank is pro-
hibited from participating in directors
examination, or to be a member of the
directors examining committee.
Provision was made whereby bulk
freighters must have a carrying capac-
ity Of at least 1000 tons, in order that
bonds thereof may be legal invest
ments for savings deposits. This sec
ton was further amended in such a
manner as to provide that notes, bills
or other evidences of debts secured by
property or securities deposited in
Michigan Trust company, would be
legal investments for what is known as
the "a per cent OF savings deposits.
This law formerly required that secur-
tiles should be deposited in a deposit
collateral company.
Another important change in the law
banks to pledge bonds in the CONNER
cial department in order TO become de-
positors for postal savings funds and
surplus funds of the state of Michigan.
Under this amendment an exclusive
savings bank would be required TO
pledge bonds representing portion of
its capital stock and surplus. This sec
ton also makes it unlawful for a di-
rector, officer or clerk TO knowingly,
wilfully or persistently overdraw his
account.
The banking department succeeded
in bringing about the passage of a
bill to increase the maximum salary
OF banking examiner to $4,000. An
examiner will hereafter be started at
5000 per annum with an increase of
$500 per year until the maximum is
reached
Section 81 of the banking laws was
changed so as to permit loans not 10
exceed 10 per cent of the capital and
surplus to officers or directors, or to
any partnership in which such officer
or director Is a partner, or to any cor
poration, in which such offcer or d.
rector owns a majority of the capital
stock, without collateral or endorse
ment.
II such loan or loans exceed 10 per
cent OF capital and surplus, then such
officer, director, or partnership, or cor
poration in which the officer or direct
or Is interested, must be secured by
collateral, endorsement or a sworn
statement must be filed in the bank
showing sufficient net worth emitting
them to such mortgage; the loan Limit
to be to any person, firm or corpora
ton remains at 20 per cent Of the cap
ital and surplus.
Another amendment also requires
two-thirds vote of capital and surplus
to authorize liquidation. Proceedings
had by stockholders or directors in
Connection with liquidation must be
filed with the commissioner OF the
banking department. The banking de-
partment will be required to make An
examination OF the bank before con-
senting to liquidation, and the bank
while in liquidation shall make
monthly reports which shall contain
list OF assets wholly or partially real