The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1913-04-24
Chance for Passage of Law
Protecting Depositors at
this Session is Remote
DEMOCRATS FAVOR STATUTE
Republicans in the Legislature Seem to
Think Matter Amply Cared For IN
der Plan for Organization. of Mutual
Company to Insure Bankers.

The probability Of legislation by this
legislature on the subject of the state
guaranty of bank deposits is becoming
slim. In the first place, it begins to
look as if the bankers themselves were
really In earnest in their intention to
do something on the subject without
the aid of the state so far as any d.
rect legislation is concerned on the sub
ject. There has been quietly creeping
through the legislature bill which is
said to have a great deal of bearing
bank deposits in that it limits the in
sarance by mutual companies insuring
bank deposits of far larger hazard
than is permitted for insurance in
other lines. Other mutual insurance
companies are only permitted to write
insurance amounting to three times
! the average hazard taken by the COM
pany. In other words, if the average
fire risk of mutual company
is $4,000, the company can write no
risk OF over 100000.
The bill in regard to companies
formed for the purpose Of insuring
bank deposits, however, provides that
any mutual company organized for the
purpose of insuring bank deposits shall
not be limited as to the amount of its
single risks, or in other words that it
can insure a risk in any sum. 1t Is
said that this bill was necessary be-
fore the plan which Wisconsin bank
ers are evolving for the mutual insur-
ance of bank deposits could become
effective
When the bankers came to form
their mutual insurance company for
the insurance of bank deposits they
discovered they were blocked by the
average hazard law. AS an illustral
ton, under the present statutes if the
average hazard taken by the mutual
company was $150,000 which is about
the average deposit liability of the
banks of the state, the company would
not be able to insure the deposits of
any bank where they exceed $450,000.
AS the deposits of practically all of
the banks of the larger cities Of the
state exceed $450,000, it can easily
be seen that a mutual company would
be impossible under the terms Of the
present average hazard law because
any bank with deposit liability of
over $3.50, 900 would not be able to in
sure in the company.
It is said that just as soon as the
amendment to the average hazard law
exempting bank deposit insurance from
its terms is secured, steps will be
mutual company for the insurance of
Wisconsin bank deposits and that this
organization will be far enough along
before this legislature adjourns SO that
the legislature can be amply assured
that the state insurance of bank de-
posits has resulted in effect even
though no statute has been enacted on
the subject by the Wisconsin legisla-
ture. 7
Although the democratic leaders in
the legislature do not seem to doubt
that the Wisconsin bankers are plan
ming to take steps for the organiza-
tion of mutual insurance company
for the protection of bank deposits,
there are many of them who believe
that the fact that this bill is to be
passed which will permit the organiza-
tion Of a Wisconsin company for the
insurance of the deposits in Wisconsin
banks should not be used as an excuse
to prevent the passage of a law pro-
viding for the state guaranty of bank
deposits, and they declare that they
will make a stand for the state bank
deposit bill even though their move
is not favored by the majority of the
republican members.
They claim that a state guaranty of
bank deposits bill has long been one of
the demands Of the progressive demo
Gratis of the state and that they can
not see their way clear to desert the
pledge they have made to the people
for state law even though without
the state statute a guaranty of bank
deposits is to be assured the state of
Wisconsin by the action of the Wis
consin bankers themselves in the for
nation of mutual company for the
insurance of the bank deposits of the
state. Whether the support of the
democratic leaders to state guaranty
of bank deposits law will go much
farther than a register of their votes
in favor Of the measure when the roll
call is taken on the bill, is how
ever question. A
The majority of the republican mem
bers of the legislature seem to think
that the issue of state guaranty of
bank deposits is amply cared for under
the plan for the organization of mu-