The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-06-15
Committee Chairman Praises
Recent Law Authorizing
State Board to Exercise
Discretion in Granting Ad-
ditiOnal Charters-EncOur-
ages Consultations, !. He
Says

jamestown. N. d., June 15.-(P)
The twenty-fifth annual con-
yentiOn Of the North Dakota
Bankers association was called to
order here. By President II. I.
Graves at 10 o'clock this morn
ing. Ike sessions will continue
through Thursday afternoon. The.
invocation by DR.. B. H. krOze.
president of jamestown College.
followed Immediately after the
opening session was called to
order.
Early registrations indicate
that the present convention will
be the most largely attended
meeting in the associations his
tory, according to Secretary w.
e. MacF Fadden, who is completing
his gath term as secretary Of the
state organization.
In his annual address, Presi-
dent Graves reviewed briefly the
history Of the bankers Organiza-
ton and outlined the present day
problems of the bankers of the
!, state, both as individuals and as
an organization.
Jamestown, N. D., June 15.--(P,--
Many of the bank closings of recent
years could have been avoided If
there had been fewer banks in opera
tion, c. B. Mcmillan of Hannah,
chairman of the legislative commit
tee of the North Dakota Bankers As
sociation, told that body in report
today.
Commenting on this phase of the
situation. Mcmillan said he
believes that the law passed at tne
last session authorizing the state
board to refuse to grant ad-
ditional bank charters if such ac-
tion appears to it to be justified,
will result in much good to be the
various communities by preventing
over-banking. The effect of the law
already is being felt in that it has
numerous bank consoll-
dations, he said.
New Laws Beneficial
Other laws which Mr.. Mcmillan ex-
poets to have beneficial effect up
on the banking business were: That
requiring banks to set aside so per
cent of their earnings as surplus
until the surplus equals the capi-
tai. This, he said, should operate
to make banks safer and to strength
en- them generally. The provisions
exempting the surplus from taxation
is fair, he said, inasmuch as the
money would not be taxed anyway if
it were paid to the stockholders as
dividends, money and credits not
being taxable under the law.
The companion bill which provides
that as the surplus increases the
Of capital J. and surplus
which may be loaned to any firm or
individual shall decrease was ex-
plained BY the speaker. He pointed
out that it does not affect loans al
ready made or other, loans. which,
when made, were within the lawful
limitation.
The law permitting interest at no
higher rate than the lawful contract
rate, upon interest past due. if sc
provided for in the contracts. re.
turns the law on that subject to
where it was in 1929. he said.
Chattel Law Clears Records'
Another new laW permitting ths
tel mortgages Vas haiied BY thu
come in that i provides Tar clear
cnt-off by settine ~ time when such
Instruments viii Be eaneelled through
limitation. obsolet9 and trcubloul
mortgages will thus be stricken fron
the records he explained
] Another ehanee in the law is thai
which requires that hanks serving al
public depeelt L. ], y y - - !. 4!epispeted