Show c. c BLAMED f fM FOFI M HANl f AllU I Statements of Witnesses Before Senate Judiciary C Committee Reveal Their Opinions on Situation LAME IE for the f of the B Merchants l ba was laid at atthe atthe the door of the st io l bank examiner ex cx today by Elias E i s A Smith of the Deseret Sa Sayings ings bank who appeared before the senate judiciary committee as spokesman s for forthe forthe the Utah Association of Bankers jn n opposition to the Dern bill proposing a depositors depositors' guaranty fund That the bankers of Salt Lake and Utah are not In sympathY with this measure V brought rou ht before Ifs Ifs- L an and and- k o l that all may have an tor to have their say a public hearing has been arranged to be held at the Hotel Utah Wednesday night night night-at at 8 Smith was the first member of the bankers bankers' committee to speak before I i ij i ii j j I II II I II j I I I I I I 1 I the legislative committee committee and s said ld I that If the pr present sent banking laws here I properly enforced by the bank banI comI commissioner com com- missioner and examiner the depositors ors I of Utah would have lion tion Utah he said had an excellent I set of banking laws and had had excellent experience In regard to banking following the panics panics' of of 1893 I I. I and 1907 RECENT HAPPENINGS Recent happenings in banking circles were the roots for the formation of the present bill according to Smith and he asserted that If the department department depart depart- ment of the state had done Its duty duly the Merchants bank would not have failed It It had been common knowledge around the city for the last five Ive or six years that the Merchants bank was In bad condition he said and anol I the fault was in fin the bank examiners examiner's office The attention of Smith was wasI I called to the fact that the present bank banI commission and examiner came Int into office but two years ago The principal objection raised by the bankers to the measure was that the depositors depositors' guaranty fund meant that strong banks would be taxed to protect the weak and wildcatting banks He I said that reckless would be beI I encouraged should the bill become a a- law and that it would drive state banks Into the national bank system Senator Sanford Interposed and said that this had not been the case In Texas where such a law had been in operation for the last twelve yearb Senator Olson expressed the opinion that it might not be a bad thing for forthe forthe the depositors if all the banks would gO under the national banking system ROTTEN BANK That he was a member of the clearIng clearing clear clear- Ing house committee which examined the Merchants bank five years ago and had come away convinced at that time that it was a rotten bank was the statement of Fr Ink B. B Cook of the Columbia Columbia Co- Co lumbia Trust company compan Had the state bans bani examiner done his dut duty at that time he said the bank would have been closed It t was th the governor and not Ih the clearing house that could force the examiner examiner ex- ex to his duty lie he said M. M II of McCornick Coo Co Cooj I cautioned the senators against hasty hasty- I action and said that the they shouts should look at the subject In n a broad way and I that the less the banks were interfered Interfered inter inter- with during the coming three Inter or Pour four years ears the better It t will be for a time of readjustment I |