Show fOR CHANGE IN N I BANK lAWS Secretary of State Ha MaRes MaKes sl Recommendations in His Biennial Rep Report ort J his biennial report to lo Governor Spry covering the period jerIod roni from November November Novem Novem- ber bar 30 w. w U 1908 08 to November 30 G. G 1010 1910 See See- tary tao of State C. C S. S makes some recommendations ions with regard to the tho banking laws of or the state prominent nent among which is tho tion that a banking bureau be bo created created cre cre- and a a. bank commissioner appointed Hero Is what Secretary sa says s 's upon tho subject With ono banks now in operation operation operation opera opera- tion and Wand the tho prospects of this number being Increased to one one hundred before the close of at the next biennial period ItIs it itIs itIs Is my opinion that th the legislature of at 1913 to afford adequate supervision and properly prop prop- orly erly ii to safeguard the money of the de depositors de- de will will- willbe be required to to- create a astute state stute banking department nt or bureau and provide for the he appointment of a bank commissioner nor The banking law under which we wc C ar are i ow 01 operating ra 1 ng was was enacted In 1888 and with one or two exceptions no changes have havo since been made to meet the tho rapid growth of banking Inter inter- ests In In view of ot the fact that the tIo business of this state Is growing rowing rapidly rapid I and assuming it will continue continuo to- to increase to and based upon the experience of ot this department and tho the bank examiner anlin in line Une with the tho most recent legislation of ot other states I r recommend the tho enactment enactment enact enact- ment b by this legislature of ot a new banking act Including provisions covering co the fol following fol- fol owIng lowing subjects Some Recommendations A material Increase in the tho fees for examinations based upon tho the gross as assets assets assets as- as sets of the bank bant That no bank be permitted permUted to organize organ organ- ize Izo with an authorized capital of less than 2 That the tho investments of savings banks be be- be limited as to the character of such Investments Limiting the borrowing borrowing- capacity of banks bank and prohibiting borrowing on certificates of deposits Making private or partnership banks subject to examination Keep seep Savings Separate fc Prohibiting the establishment or or- operation oper oper- atlon of branch banks either cither domestic or foreign The absolute segregation of savings from rom commercial desits sits In banks having having hayIng hav hay ing both departments and prohibiting the tho mingling of ot the cash and securities of the tho savings department with those ot the commercial department Defining more sp specifically and extending extending extend extend- ing the duties of ot directors and fixing a greater reater penalty for neglect at such of-such such ch du du- du ties Prohibiting unauthorized banking Repeal of the present loan trust and guaranty act and the enactment of at a la law providing for the or organization of trust companies and prohibiting such companies from acting as surety on bonds unless they thoy comply with the tho law governing go suret surety companies The receipts of the secretary's s office for the two embraced In the years report aggregated I S 1 TO 1 72 A e no rf rm t A d tol f fol I l- l aggregated I S 1 TO 1 72 A e no rf rm t A d tol f fol I l- l s segregated grega e as follows o ls lows Corporations Pay Gen General ral fees Annual corporation license tax Penalties and costs from delinquent delin delin- quent corporations Discharge of corporation license tax liens Hens s Registration of automobiles and chauffeurs 0 00 Salo aIo of cf compiled ed laws Jaws 1907 Total rota receipts 72 The rhe total receipts from all aU sour sources es for the two preceding years ears were anet increase for fOl the tho biennial just ended of of- Attention Is directed to 10 the fact that at the close of the tle year rear 1909 there were approximately c corporations of of- record Under the operation of the amended law Jaw the Ole charters charters' of dome domestic tic corporations corporations corpora corpora- were revoked evoked by th the governor and tho the authority of about foreign corporations corporations cor cor- to do business In the state were also canceled The new licence e re register reg- reg regj j Ister show that there are approximately soo live corporations In the stale state liable for the pa payment of the annual state stat license tax the maximum of or which is 50 In Jn this connection Secretary Tn IY recommends recommends recommends rec rec- that the law Jaw be amended so as to make mako the maximum Instead of Si 50 50 O. O Under the present law the revenue from this source is about per por annum No Bank Failures Sp Speaking again with reference to banks Secretary p says there have been no failures s within tho past pact two years and that while the banks have increased more mor than 2 25 per cent there also alo has bc n a decided Increase aSE In the volume of J busi- busi ness uess transacted by all aU th the tho brinks banks with 2 two or three exceptions and the general condition of solvency has been very satis- satis factory k With regard to the re registering of automobiles automobiles auto- auto mobiles and the Issuance of permission to chauffeurs to o operate rate motor vehicles vehicle each ach of which fee is S 2 2 it il Is reported that 1334 nave been registered ant and badges have been issued to chant chant- It Js is r recommended that the auto mobile f fee fc be increased ased to 5 5 and that a a. a maximum and anti minimum a age e limit be fixed for chauffeurs Durin During years ears 1274 corporations corporations' have nave been organized Including forty-five forty s and religious societies und nd foreign corporations have havo been admitted to the state During the same period 1795 land Jand patents pat- pat have havo been een Issued conveying acres of public lands |