The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-11-30
No Legislation Concerning Ex-
animation of Banks.
ALL ACTS REPEALED IN 1918
No Legal Head of. Bank Depart
ment Since Then.
Discovery May Have Direct
Bearing on Custer Case.

There is no law for the appoints
ment of a state bank commissioner.
That was the sensational discovery in
the state house today. The legal status
of the state banking department was
made public following closing of the
states suit to oust Walter E. Wilson.
state bank commissioner.
The law providing for appointment
of a state bank commissioner was re-
pealed by the legislature of 1918.
Aitho there have been five regular
and special sessions of the legislature
since that time the old law of 1907 was
never re-enacted. The original act is
carried in the general statutes of 1915
with a footnote explanatory of the
repeal
Wiped From Statutes.
Not only is the law governing ap-
pointment of a bank commissioner ap-
parently wiped from the statutes, but
there is no law concerning the per-
sonal soma examination Of state banks.
This section of the old statutes seems
to have been wiped out by the same
act of the 1913 legislature. For a
period of almost eight years-accord-
ing to the act of the 1913 lawmakers
there has been neither the machinery
for appointment of a state bank COM
| missioner nor a law concerning ex-
animation of banks by the state COM
missioner and his deputies. Should the
courts hold that the legislature sue
ceeded in wiping out a general law I'm
an appropriation act, there has been
no legal bank commissioner since 1913.
nor is there a commissioner at this
time. Neither is there provision for
isuch appointment.
when r. E. Mcintosh OF Topeka
compiled the general statutes of 1915
he discovered that the legislature of
1913 had repealed the two sections
| of the state bank commissioner act in
| their appropriation bill of that year.
In consequence he placed the two sec
| tfons In the general statutes-nOw be-
! ing Sections 53S and 542--and incor-
| porated a footnote to the effect that
while the repeals were clear and posi-
i tive, they were Incorporated for the
+ I, reason that no laws had been e.ed
! to take their place. If the act O the
4 1913 legislature. tho, repealed the
i laws then lawyers declare that the
i work of Mcintosh was of no force and
/ effect.
Three Commissioners Since Then.
Since the two provisions were re-
! pealed the state has had three state
bank commissioners-two of them
confirmed by the senate. Charles M.
Sawyer of Norton was appointed by
Governor Hodges and confirmed dur
ing the session when the provisions
were repealed. Sawyer later re-
signed TO go to the Federal Reserve
bank in Kansas City and w. F. Ben
son of Eldorado was named.
In 1917 Governor Capper appointed
Senator Walter f. Wilson of Wash
ington as the state commissioner.
Wilson was appointed and confirmed
for the four year term ending March
1, 1921.
| Last June the attorney general
brought custer proceedings against
Commissioner Wilson for alleged neg
lect of duty and for commission of al
legged wrongful acts in conduct of the
state business This suit is being
heard before j. NJ. Chailis Of Atchi-
son, appointed by the supreme court
as commissioner in the case. The
state closed its case against Wilson
Monday and the defense expects to
begin introduction of testimony next
weke.
May Have Direct Bearing.
Whether the discovery of Irregular
tiles in the state bank commissioner
act will have a direct bearing on the
present hearing or the future status
of the department is uncertain. There
Is a belief among state officials that
courts would doubtless hold the law
of 907 was continued in force and ef-
feet Tor the protection of general pub
lie interest. However. IL the repeal
should be upheld by the courts the
lwork of the department might be tied
fup pending an emergency act by the
new legislatu- g. Such a decision
might also invalidate work of the de-
partment during the period since the
! repeal
1t is clearly apparent that the repeal
is an error by the legislature. 1t sc-
cidentally repealed the wrong sections
of the law when 1t passed the 1913
general appropriation bill.