Casper Daily Tribune Newspaper, January 14, 1925, Page 8

J Palin T sn See ae SP Sree deas0Kneoe PAGE EIGHT The Casper Daily Cribune t Casper (V coming) postcffice as second 1916. une issued every evening ® every Sunday, at s: Tribune Bulld- 15 and 16 cting All By J. E. HANWAY AND E. E. HANWAY 30K THE ASSOCIATED PRESS uted Press is ex iy entitled to the ws pub! all y ed in this paper erein. Member of Audit Bureau of ¢ culation (A. B. ©.) dyertising Tepresenta Prudden, 1 Bidg., e., + Gobe Ite 404 Sharon Bidg., 55 New Francisco, Cal. Copies of the le in the New York, Chicago, Francisco offices and visitors are York | SUBSCRIPTION RATES Carrier and Outside State and Sunday By By Mail Inside State One Year, Daily an Year, Sunda: Mon KICK, IF YOU DON'T on’t tind RK TRIBUNE er lookimg care livered to you ints before § oD 1 Some Bitter Experiences That something must be done in Wyoming to. ward protect 0 in State banks is ed to on all s What it shall be, is an ner question. That it is altogether likely to ome a subject for ligislation is not doubted. But certainly, if our people will profit by the es ence of other states the route is not through a nty of deposits law. Such laws have been and for that matter are at present upon the statute books of several states, includi Kan Nebraska, North Dakota and South Dakota. homa had a bitter experience and repealed her guaranty law. Here is an authentic statement of the exper ence of our neighboring state of Nebraska: Nebraska has 924 state banks with tota posits on last call of ¢ 500,000.00. Its anty Law was passed in 1909 and became oper- ative in 1911. It provided for an annual as- sessinent against state banks of 110 of 1 per cent of their average deposits, with a maximum assessment of 1 per cent in any one year. Such assessments “were to continue until the amount in the Guaranty Fund reached a sum equivalent to 114 per cent of average annual deposits. By 1920, approximately $2,250,000.00 had been accumulated in the fund, In 1914 there occured small failure, and two years later in 1916, these were easily taken care of from the funds on b In 19 however, 5 banks failed. In 1 and 3, SL banks closed, and difficulties began. The total deposits in these closed banks aggregated approximately $20,000,000.00. There was almost a stampede anot started by state banks to surrended their char- ters and to enter the national s stem. It was the Bankers Association and by appeals to their loyalty to the state that bankers were induced to abandon the idea. It was feared that loss of confidence in the success of the Guaranty Law thus clearly manifested, would cause a complete loss of public confidence in state banks and pre- cipitate runs on a large scale. At the time failures began, there was as above stated, approximately 0,000.00 in the Guar- anty fund, which had been accumulated from 1911 to 1920 from assessments of 1-10 of 1 per cent per annum on the average annual deposits of the banks. ‘Yo pay the claims of depositors of the 85 banks, the state banks of Neb ka have been required to cantribute the vast sum of £12,000,000.00, while only $8,000,000.00 were rea lized from the assets of the failed institutions. This sum represents almost exactly half of the capital stock of all the state banks of Nebraska doing business on October 7th, 19 In one year, 1924, the assessments against one bank amounted to 18 per cent of its capital stock and in the same year another bank paid into the fund 23 per cent of its capital. From Janua Ist, 1928 tc only 354 of the 924 bank debts aggregating 339,295.00, while have assessed stockholders the sum of $1,0' 00 to ist in making ribution to the fund and absorb their own los as far as it was possible to do so. ‘The deposits in these last 64 banks who found it n to call upon their stock holder roxin $18,000,000,00. August Ist 1924, s have charged off bad 9,295 O4 c alone ha ributed to $172,000.00. uer large bank has made contribution of over $100,000.00 during the same period. In this latter bank the control of stock is held by one man, who hus, therefore, con- tributed $50,000.00 from his own funds to assist in paying the depositors of banks incompetently managed or looted by er (| officials. Now turn to Oklahoma for a more unfavor- r les legislatio: failed banks under the able record and « great ing bank gu on to those favor The assets of Oklahoma law had a face In the judgment the t ind officials probably be realized from these cattered badly and the if prohibitive value of best informed 00,000 gros sets, but they ar collection is of this total sidered a fair ¢ In 1914 the 1! of Oklak provide for a of 1 per num to be paid on the ave for a period of three ye thereafter. From 1907 law, 266 state banks natior 88 consolidated with othe 9 state banks to assume law, with unpaid guarant 5 000,00,then outstanding The last assessment of 1-5 of 1 per cent yield ed the sum of $133,000.00. The same amount still due from those who could not, or would not pay. So far no legal action to enforce payment has been taken, but such action is being contem plated and will undoubtedly be attempted. After applying on the payment of deposits the sum of $3,729,937.00 collected from assessments, the fund collapsed and the law was repealed, leaving ap proximutely $12,000,000.00 of ald A& high as 30 per cent r pitul coutributed by several bauks tu ou: of as tremer Out net 50,000 i timate amended to per miximum cent ar warrants of 1 de-| $ Che Casper Oaily Cribune CROSS-WORD PUZZLE When the collapse of the fund became: immi- nent the newspapers of the state gaye the bank- ers’ troubles wide publicity under seare -head lines and, a result, many good banks were closed by runs made by trightened depositors. the percentage of the banks closed by such un- favorable puvtlicity was very large, even as high us 9) per cent. it is eyiuent that the law in vkluhoma caus ter that could have been avoided bad no such law been passed. Much | liugation is now in progr in the state, brougpt by the United States Government, surety com- panies, and others who are imterested im tie | proper determunation of their legal rights in | connection with the closed bankS and wwe ad | ministration of the guaranty fund. | Werhups no state in the Unton has experienced such disastrous results of the operation of a guaranty law Wald cat banking of the worst order was ensively indulged in.. Oil wells galore were drilled \ith depositors’ money, much of which come from other states, attracted by high interest rates offered for that purpose. ear of losing « large portion of their de- posits prompted a few bankers in Kansas and Vexas, close to the Oklahoma border to propose | similar legislation in these two states. While the law of Oklahoma provided that war- rants issued to depositors agamst the guaranty fund were to be paid in order in which issued, | this has not been done, , There is now in the fund between $260,000.00 and $275,000.00 to be distributed. This cannot go far toward paying $12,000,000.00 of claims. The guaranty law of Oklahoma has been re- pealed. The legislature referred to the people | the matter of issuing bonds of the state to make good depositors’ losses, but the people rejected | | the idea by an overwhelming majority, Many | residents of the state feel that injustice has been | done and that there is a moral obligation on the part of the state to assume responsibility be- cause of the wide-spread belief that the state was always the guarantor. | The bank commissioner of Oklahoma has stat- ed that the experiences of the state have firmly | convinced him of the impossibility of conducting la safe state banking system under a guaranty | law, whether optional or compulsory. Here is some illuminating banking experience. It is unthinkable in the face of the facts present ed, that there is anyone so blinded to the opera- tion of financial affairs as to insist very long that a guaranty law to protect depositors is the cure either of bad or crooked banking. There must be some other means found to protect the people’s money. For the most part Wyoming has shown a real it in legislation, but if she should anty law, she would be adopting nd discarded scheme. Lucas’ Advice | In his address to the members of the house of representatives at its organization Secretary of State Frank EB. Lucas certainly spoke words of wisdom to the members, which, if heeded will result in benefit to the state. Mr. Lucas has n exceptionally efficient executive officer himself and he is for that reason qualified to advise those who come to take part in the legis- lative branch of the state government. ‘The sal- ient points in Mr. Lucas’ address follow: “While this is supposedly a law making body, the successful legislator is the man who scarcely | ever introduces a bill, but sits on the side lines | ready to protect the interests of the people of the entire state against freak legislation. We already have more laws than ure necessary for the government of a free American people, and if about half of them were repealed we would be much better off. True, changing conditions make necessary some new laws, and undoubtedly some of the old ones should be revamped and amended to meet these changed conditions. I have no idea of the legislative program for this session, but I am of the opinion that if the en- tire time of this body was taken up with the passage of a very few important laws to meet the present crisis in the life of the State, and a few others brodght down to date, you could go home with the feeling that the Eighteenth Leg- islature should go down in history as the most business like ever held in this State or any other. I have seen members introduce as many as_ten Willy the first day for the introduction of bills. If this was general among the sixty two membe of this body, the first day would see the intro- duction of me than 600 bills—more than could possibly be given intelligent consideration in forty weeks, much less forty days. “In every campaign we hear of people going over the state talking reduction of taxation—yet when the time comes when such reduction could be mude everybody seems to be very busily en- gaged in thinking up new ways to spend more money. The only way to save money is to save it I do not mean to say that any department should be crippled so as to be unable to function, but I do mean that every expenditure should be investigated .and if it does not prove to be a good investment it should be chopped off—just as you would do in your own business if you could see proper returns for the expenditure of money. You have heard the criticism of pre- vious legislatures, so that you will have this ex perience for your guidance Wyoming has grown to its present prominence first through the livestock and ranching business | progressive spi }embrace a gu an unworkable Today this business is in bad straits, and only |the most careful management will ever get it back to normal, Only those improvements ab solutely essent today, and we 1 are being made on the ranches n only fairly ask those engaged in this line to their share for the essential improyements on State property. However, I know you gentlemen have come here with a full | determination to do your duty as you see it. You | are on trial before a jury of the entire popula- ion of the State—-not as a body, but as individ- ual members—and I know you are going to give the best there is in you. I have nothing to sug: gest in the way of legislation other than the} thoughts I have given you. My duties are en | tirely executive, and I expect to carry out—or at least help—the rules you give the next forty | days for the conduct of my office.” ! Secretary Hughes The retirement of Secrtary Hughes from the | United States Cabinet removes from it one of its jm prominent men and a figure which has ranked among the leaders of American legal, | political and governmental affairs for many years. Few men are better known in Ameri than Hughes and there is hardly any one who has been held in such high regard by the Ameri can people as he has. As candidate for presi dent he was defeated when Wilson became pres ident for the second term but in this defeat he did now lose any of the public’s esteem, During the time that he has been secretary of state he las conducted the affairs of that office in such as to escape the attacks even of. those re opposed to his political vorty, He re swith the best wishes of the American p “well tu lis efforts un it ple, who will say public matterg on SES! SUGGESTIONS FOR SOLVI 47 bite amie al NG CROSS-WORD PUZZLES Start out by filling in the words of which you feel reasonably sure. i and they in turn to still others. These will give you a clue to other words crossing them, A letter belongs in each white space, words starting at the numbered squares and running either horizontally or vertically or both. HORIZONTAL 1—A mark of punctuatio 6—Thus 7—Thin soup 11—Part of verb “to be” 12—-Sarcasm 15—Period 16—-Obtain ive 19—Metals In raw state 20—Julce of trees 23—Nothing but 24—Reimburse 26—Musical selection rendered by one 29—A large boat (abbr.) 30—Part of a suspension bridge 32—Land surrounded by water 34—To rush on or attack 36—Disabled 37—An undesirable person 38—Form of Ice cream (pl.) 39—Post Office (abbr.) 41—Gentle wild animal 42—Alcoholle beverage 43—The spikenard 45—Department of Street Cleaning (abbr.) 47—Ar alr 48—Unit of lineal measurement 61—Small cylinders of wood 53—By 65—Spawn of fish 56—Simall pill 57—Before 58—The present tims 59—A degree (abbr.) 60—Definite period of time (pl.) VERTICAL 1—Places for confining wild anima 2—Raw meta 3—Was Introduced to 4—Farm animal 6—Retail shops 6—Those who see that machinery Is lubricated 7—Place to sleep 8—Contraction of “over” 9—Prefix meaning three | 10—Joyful 13—Very small particle |14—Go up | 21—Attack 22—System to preserve order 24—-Separated 25—Makes mad 27—Crippied | 28—Units 380—Supplied with shoes 81—Head , 82—Contractlion for “I am” 83—A degree (abbr.) 84—One whom you owe (abbr.) 85—Suffix making comparative degree | 38—Pledge of honor > 40—A black and yellow wird 42—Active | 4s—Part of the neck | 44—Valley | 46—Worrles | 49—A card game | 50—Escorted | 51—Secret agent 52—Disease of the eys 53—A vegetable 54—Mistake PUZZLE SOLUTION Solution of Tuesday’s Puzzle. cide when !t 1s fair and reasonable for the long and short haul principle to be disregarded, how long will it be before congress will by direct les islation regulate rates in many other ways? “The real force behind the Good- ing bill is political influence which is being brought to bear by people and public men in the western inter- mountain states. But political influ- ence {s also being brought to bear to secure other legislation by which congress would directly regulate rates tn other ways. If political in- fluence is successful in getting con- Long and Short Haul Tho bill introduced by Senator Gooding of Idaho which would virtu- ally deprive the Interstate Com: merce commission of authority to permit a railway in any circum. stances to charge a lower rate for a longer than for a shorter haul ts at- tacked as @ menace to the business of the country in an editorial pub- lished in the current issue of the Ratlway Age. “To persons who have not studied the subject,” says the Railway Age, ‘it seems only fair and reasonable the railways should be prohibited from making any rate that is higher for a shorter than for a longer di tance. Nevertheless such legislation would largely revolutionize present schedules of freight rates and cause business changes and disturbances of serious kind and magnitude.” In support of this view the Rail- way Age quotes a long letter sent last spring to the senate committee on interstate commerce by the Inter state Commerce commission in which the commission declared adoption of the Gooding bill would be highly injurfous to business and cited numerous conditions which it is necessary to the movement of commerce that the long and short haul principle be dis- regarded. ‘The real purpose of the Gooding says the Railway Age, “is to Jer it impossible for the rail I ways to make lower rates from mld dle wes fic tern points of origin to the aciflc coast than they make to in: ermediate communities. Its actual effect would be to amend the Interstate Commerce act as largely to deprive the Interstate Commerce ion of {ts present authority to determine and fix reasonable and non-discriminatory rates through: out the United States. Tt would in- yolye something to which it long has been feared government regula tion would lead, the direct regula. tion of rates by congress. “Present laws recognize that con- gress is not a fit body directly to regulate rates. Therefore congress 80 creatod the Interstate Commerce commission to deal with this sub- If congress deprives, the commis. gress directly to regulate rates in one way it may be successful in get- ting congress directly to do this in other ways.” When that time comes the present machinery and policy of regulation will be destroyed. Men of ability and self-respect will not serve on the commission if its is to be re- duced to an atftomaton for register- ing political decrees of congress. “One charge which has been made against the western ra! lways is thet they are trying to get permission to make lower rates from middle west- ern points to the Pacific coast than to intermediate points to destroy competition by the Panama Canal route. What they are actually try- ing to do is to prevent their own destruction by the competition of the Panama Canal route. From 1920 to 1923 the westbound tonnase Passing through the Panama canal LEAVE YOUR Steaks, Ib- Shoulder Roast, Ib Short Ribs, 1b. ‘638 East Second St. WE D authority to de Mn of ity prosent ON SALE SATURDAY Rib Roast, Ib.______- EVERY POUND GUARANTEED TO BE TENDER JOHNSON BROS. GROCERY CO. te Pacific coast points increased over 400 per cent. Meantime west- bound etrictly transcontinental bus: ness of the western railways declin- yea almost one-half. ‘Tho western railways are suffering severely from this loss of business. The in- ter-mountain communities of the west say that ff the railways should reduce thelr rates to the Pacific coast and {n consequence begin -to compete more successfully with the steamship lines the water carriers would reduce their rates to the coast and thus increase the already great discrimination in rates against the intermediate communities. Is the remedy then to pass the Gooding bill and demoralize rallway rates and business throughout the United States? That would not solve the problem of the intermediate com- munities because steamship rates to the coast would still be lower than rail rates to the intermediate points. “The real solution is to pass legis- lation putting the rates of the water carriers through the Panama canal under the same regulation and con- trol of. the Interstate Commerce commission to which raflway rates are now subject. “Never since thelr return to pri- vate operation have the western rail- ways earned anywhere near a fair return. They could increase the net return earned by them if rates were 80 regulated that they could get more transcontinental freight busi- ness. If they are not to be allow- | ed to get added net return in this | Way they ought to be allowed to| make a general advance of all their rates except those to the Pac coast. ‘They are entitled to earn a fair return and sooner or later must be allowed to earn it even if this involves an advance in all that are not directly affected water competition.” The Perspective “Conditions are developing In the mining industry which {ndicate that an era of prosperity {s approach ing," says Mining Congress Jour nal. “This $s evidenced by the healthy evolution of conditions that usually presage prosperity in an in- dustry. Even in the gold and silver mining industries, the depression is less acute, and ultimate recovery of theso essential industries seems as-| sured. “Capital {1s coming out of the hid ing places into which {t was forced by oppressive taxation and radical tendencies in government. Interest rates are low. Taxes a) coming jless burdensome. Frélght rates are being gradual: Ijusted so as to permit the free movement of. the basic raw materials, and transport tion agencies generally are enjoy- ing ‘healthy conditions. Labor and supplies do not command a pro- hibitiye premium. And markets, both at home and abroad, ate be- coring stabilized. “The attitude of the state and national governments toward the mining industry {s sympathetic, and government interference with legiti mate private enterprise is a less potent danger. And the crystalliza tion of public sentiment against dis criminatory legislation of any na ture {s seen in the defeat at the polls in the recent election of undesfrable tax legislation. Radical tendencies WEDNESDAY, JANUARY 14, 1925 everywhere are being curbed. It is fortunate for both the industry and the nation that the business of min- ing has not been encompassed by a multitude of artificial handicaps im- posed by legislative authority, “Foremost among the defenders and protagonists of the mining in- dustry, during the crucial period since the World war, has been the American Mining Congress. Through- out this period it has voiced optim- ism through the public press, through its officers, directors, and staff members, through its bulletin services, and through the columns of the Mining Congress Journal. ."Ita representatives have appeared before the committees of congress, the executive departments of the federal government, the Interstate Commerce commission, the Federal Trade commission, the meetings of bankers, manufacturers and railroad officials, and, in fact, before every agency and on every occasion where the cause of the mining industry could be advanced and its interests Promoted and protected. “In the matters of tariff protec- tion, income taxation, railroad rates and labor relations, the work of the organization has been most effec tive. And for the promotion of effi- clency and economy in mining operations, committees of the or- sanizatfon have labored for years on improved methods of mining practice, which have become stand- atds, in order that production costs might be lowered to a point where higher labor and freight costs, increased costs pplies equipment could absorbed operations maintained at a pre of s period from which the min- ing industry is just emerging hi been a period of convalescence. Many helpfu) lessons haye been learned from the mis the of P: Among othtr ngs, the min- ing industry has learned that its several branches have many inter- ests in common which cannot be protected less these branches of the industry work together for the benefit of the indu as a whole, and at same Ume enlist the moral sv of other industries. It has learned also that the general public must have a proper under- standing of its problems. The n Mining Congress has been a get-together medium as well as a medium through which the public could be informed of exact cond!- tions prevailing in the industry, “In order that the mining indus try may enjoy to the fullest extent the era of prosperity which seems imminent, there must be harmony and uni among {ts several branches; and the work of molding plans, methods, practic lation that will lower production costs, taxes, and freight rates, that will secure the mai: ‘enance of peaceful labor relations son+ tinue. To abandon any part of this work at this time woud! t ingly costly to the min.ng Its continuation under the tion of healthy busir@ss conditions and industrial prosperity will pro- duce lasting benefits.” Her Hour Nanette was mischievous, pretty and liked a good time —and she saw no harm in letting the handsome Ralph Bradley make love to her. She did not know the lo ness of men—nor that she was a mere incident in young Bradley’sadventurous career. She could not foresee that he would leave her to wed a girl of his own social station—nor the tragic train of events which were to grow outof her own grief, resentment and jealousy. Told under the title, “The Tell-Tale Tattoo,” there is a lesson and a warning here for every girl. one of the many featur ‘True Story Magazine for Feb- ruary. Don’t miss it. Sunshine Recreation Florida Slip away from January to Flor- ida, Cuba, Texas or the Gulf Coast, where June temperatures invite you to outdoor play be- Do you know you can obtain the NUS VY PENCIL with RUBBER END (from 4B to 9H) Famous for its smooth writing qualities—providing pencil luxury and pencil economy. 10 each $1.20 per doz. Ask for VENUS B= @ soft pencil for general use. Atyour dealer or write us direo American Lead Pencil Co. 220 Fifth Ave, NewYorb VENUS—The selling Quality Pencilin the world YOUNG—TENDER—JUICY on display now ORDERS NOW Phones 1251-1252 ELIVER neath the palms. Attractive Winter Fares Go one route and return another, stop- ping off where you wish along the way. Comfortable, January 17. For Sale on pavement; all rented, 116 E. Midwest Ave., C. 1 modern, LINGTON trains make convenient con- nections at Chicago, St. Lou's, Kansas City and Denver with best through trains via all routes South. Let me help you plan your winter trip. F. S. MacINTYRE Furnished Apartment House _ Close in, four blocks from main four 5-room, four 3-room and nine baths, laundry room, public Price $22,500, Terms—$8,000 Down Payment Balance $250 a month including interest, For more particulars see sper, Wyo., or Phone 483 or reliable BUR- Ticket Agent FOR SALE 800 coyote skins will be sold to the highest bidder . ealed bids will be opened at 10:00 A.M. on this date, at Cheyenne, Wyo. FRANK S. SMITH, State Game and Fish Comm. SRS J. BAYER, . Biological Survey. By whe a corners, One ~Troom apartments; 6 bath. Nice big garage, C. H. Whaley, Tailor, 92-J