Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-09-09

, board will hereafter require a state.
ment from known and reputable citi.
zens of the state, certifying as to the
character and financial standing OF
applicants for bank charters;
"Now, Therefore, Be 1t Resolved,
That the Secretary Of State be and
hereby is instructed to submit appli-
cations received after this date for
charters for any banking corporations
ito this board for it's approval before
issuing such charter.
"And, Be 1t Further Resolved, That
lif this board is in doubt as to the pro-
priety of approving the application,
it will ask the state examiner or the
deputy state examiner of that parti-
cular district to go to the place and
make a personal investigation and he
shall make his report to this board;
"And, Be It Resolved, That a
charge of ten dollars per day and no.
tel and travelling expenses shall be
charged for such investigation, which
fee is to be paid by the applicants in
to the state treasury. This resolu-
ton shall also apply to all applica-
tons for bank charters in inland
towns along projected railroad lines.
Can Withhold Certificate.
The Federal banking regulations
authorize the comptroller to withhold
his certificate when it is ascertained
that the association has been organ
lied for purposes other than those
contemplated by the banking laws
and tc avoid the granting of charters
to associations organized for Interior
purposes or by persons lacking the
qualifications necessary to conduct a
successful banking business; or in
a place the population or business OF
which is deemed to be insufficient to
warrant the establishment of "a bank.
Authority is given to determine if
the directors or a majority Of them
are local men who will take an active
interest in the bank; to learn if they
will have the confidence of the peo-
pie of the community and if the new
bank will obtain entirely new bust
ness or draw it's business from banks
already established and thereby
weaken Or destroy them and also to
gather information as to the financial
standing Of the stockholders and
whether or not they would be able to
pay a double assessment on their
stock in case of trouble.
Many Applications Rejected.
During the past three years 246
APPLICATIONS for national bank charters
were rejected by the authorities for
the reason that banks were already
established in the places and ample
facilities for banking furnished or
where the population and business to
be offered were too limited to war
rant the success of the proposed bank
and because Of the unsatisfactory
character Of the applicants and 9TH
ers, interested in theesnew banks.
"The action taken by the state
banking board was based upon the
experience of the federal and our
state examiners and was done with a
view to protecting the depositors and
to maintain a more dependable sys-
TEN of bank supervision.
"The spirit of the foregoing reso-
luton has been followed as closely as
conditions would permit and in my
opinion has had a most wholesome eff.
feet and | heartily recommend the en-
actment of such laws as will give the
banking and other official boards
more extended and definite powers
supervising the organization and reg
ulation Of quasi public institutions
such as banks, grain elevators O
other public utilities"