The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1914-05-07
CONVENTION AT vIcKsBURo
SHOWS PRACTICALLY ALL
WILL ENTER SYSTEM.
DISCUSS MAKING LOANS
On LIVE STOCK SECURITY
Bankers Say State Legislators Should
Enact Law Which Would Penalize
Selling Mortsased Cattle - Then
Banks viii Be sufficie ntly Protected.
Special to The Neaos.

Special to The Neios.
Vicksburg, Miss, May 7.-Practical. 4,
ly all the state banks in Mississippi
will comply with the new state bank J
ing law. This was made evident at -,
the annual convention of the Mississip- ,
pi Bankers Association in Vicksburg
yesterday. Only in few instances
did members intimate that it is their
charters.
The new bank inspection statute was
very freely criticized by members dur
ing an open discussion that occupied
nearly two hours. The three state
bank examiners were present, and
Chairman Anderson was slated for an
address, but his remarks were perfume
tory, and gave no intimation as to the
plan of procedure that has been adopt
ed by the board.
President Oscar Newton of the Jack
son National Bank, opened the discus
sion, and his criticism of the new bank
ing act met with the cordial approval
of large majority Of the members.
Mr.. Newton first criticized the elective
feature for examiners, saying that the
members will hardly get their work
well under way until compelled to run
for reelection. He declared that these
offices should have been made appoint
i've, and thus removed, so far as pos
sible, from political influence.
Endorses Liability Clause.
The double liability clause for stock.
holders is one of the most commend
able features Of the statute, said Mr.
Newton. The capital stock of bank
ought to be in the hands of men who
realize their responsibility. This is
equally true of the new duties imposed
on directors, who are required to take
oath that they will properly discharge
, their duties, instead of being mere
fgureheads.
, Mr.. Newton spoke at some length in
approval of the clause requiring thai
loans made to officers and employees
be endorsed by the majority of the
board of directors, or the loan commit
tee appointed by the board, suggest
> ing that the latter clause ought to have
been eliminated and require approva
from a majority of the board. Nearly
all of the bank failures in Mississippi
in recent years, he said, have been du,
to excessive loans to their own officer,
clause prohibiting loans on the capita
stock of the bank, permitting deposits
u in the names Of two persons, and pre-
Il viding for the liquidation Of banks b.
Z the board Of examiners. There ha
been, he said, several recent instance
q of excessive fees paid to attorneys an,
q receivers for the work of liquidation.
u Opposes Guaranty Clause.
The sections regarding interlockin
T. directorates and voting trusts, sal
l. Mr.. Newton, are ridiculous, as the
le cannot apply to conditions in Missis
O. sippi. These sections were copie
't from the recommendations of tn
t. Pujo committee, which has applicatio
10 to banks in the large financial ceI
ters.
Mr.. Newton closed with vigorou
opposition to the guarantee of depos
clause, saying that he is opposed
=, it on principle.
Ns "T don't want any man to guarante
my debts, and don't want to guaral
tee the debts of any other man." h
Is. declared, amid much applause. f
re discussed this clause at some lengt
nt saying that the banks cannot avoi
~. this clause by attempting to furnis
IT. suretysbonds for their deposits as thi
ty in the opinion of able attorneys, won
Ct violate the spirit, If not the actu
letter, of the law.
he To Loan Money on Cattle.
al During the closing session Of Il
i'll convention the subject Of Ioaning mo
is ey on cattle was given general d.
,e, cussion, and the opinion generally G
le- pressed that those engaged In the IL
or stock industry will be handicapped
CONTINUED on Page Eight.)