LOUIS T. MCFADDEN, Pennsylvania, Chairman GUY E. CAMPBELL, Pennsylvania. CONTENTS ACCOUNTING AND EXAMINATIONS UNDER THE FEDERAL FARM LOAN ACT HOUSE OF REPRESENTATIVES, COMMITTEE ON BANKING AND CURRENCY, Thursday, January 6, 1927. The committee met at 10.30 o'clock a. m., Hon. Louis T. McFadden (chairman) presiding. The CHAIRMAN. This is a hearing on H. R. 15540. Mr. Charles S. Dewey, Assistant Secretary of the Treasury, is here and is to make a statement in connection with this proposed legislation. We would be very glad to hear Mr. Dewey at this time. (The committee then proceeded to the consideration of H. R. 15540, which is as follows:) [H. R. 15540, Sixty-ninth Congress, second session] A BILL To amend the Federal farm loan act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the second paragraph of section 16 of the Federal farm loan act, as amended, is amended by adding at the end thereof two new sentences to read as follows: "The shareholders in any joint stock land bank who shall have transferred their shares or registered the transfer thereof within sixty days next before the date of the failure of such bank to meet its obligations, or with knowledge of such impending failure, shall be liable to the same extent as if they had made no such transfer, to the extent that the subsequent transferee fails to meet such liability; but this provision shall not be construed to affect in any way any recourse which such shareholders might otherwise have against those in whose names such shares are registered at the time of the failure of the bank. Persons holding stock as executors, administrators, guardians, or trustees, shall not be personally subject to any liabilities as stockholders; but the estates and funds in their hands shall be liable in like manner and to the same extent as the testator, intestate, ward, or person interested in such trust funds would be, if living and competent to act and hold the stock in his own name. SEC. 2. (a) The twelfth paragraph of section 16 of the Federal farm loan act, as amended, is amended by striking out the words “Federal Farm Loan Board" and inserting in lieu thereof the words "Secretary of the Treasury." (b) The thirteenth paragraph of section 16 of the Federal farm loan act, as amended, is amended by inserting after the words "Federal Farm Loan Board" the words "and of the Secretary of the Treasury." SEC. 3. (a) The first paragraph of section 23 of the Federal farm loan act, as amended, is amended by adding at the end thereof the following new sentence: "Amounts carried in such suspense account shall not be included in earnings, except under such regulations as the Secretary of the Treasury may prescribe.' (b) The second paragraph of section 23 of the Federal farm loan act, as amended, is amended so as to comprise two paragraphs to read as follows: "After deducting the 25 per centum or the 5 per centum hereinbefore directed to be deducted for credit to reserve account, any Federal land bank or joint stock land bank may declare a dividend to shareholders of the whole or any part of the balance of its net earnings. The Secretary of the Treasury is authorized, by regulations, to prescribe a uniform system of accounts for Federal land banks, for Federal intermediate credit banks, for joint stock land banks, and for national farm loan associations, prescribe the manner in which such accounts shall be kept and the forms of accounts, records, and memoranda to be kept, and prescribe rules for the determination of net carnings and for the investment of reserves. 1 |