petence of the council. It is still more free when it acts as representative of the central authority, or when powers are delegated to it by the government, for here its mission absolutely escapes all supervision of the council. *** Apart from the one or the other body, the one who really governs the city is the ober-bürgermeister, so called in distinction from his assistant or representative, who holds the title of bürgermeister. The police excepted, he holds in his hands the reins of the whole administration. He is the superior in the hierarchy, above all officers and employees in the city, either elective or non-elective, and exercises over them discipline, enforcing his authority by the penalties which he may inflict. He presides over the magistrat, he names those who are to report (rapporteurs) on questions to be discussed, and the members of the commissions. He may, in case of need, substitute himself for the magistrat and use his own authority on urgent matters. With sanction from higher authorities, he may quash the decisions of the council or magistrat on ground of incompetence, when they violate law or equity or when they are contrary to the welfare of the state or the interests of the locality.

"This officer, so powerful, is chosen by the city council, but it should

be understood that the government reserves to itself the approval of the choice and this consent is by no means a vain formality.

"The second bürgermeister fulfils the functions of the ober-bürgermeister in case of disability of the latter. He enjoys the same rights and is held by the same obligations. In other respects he may be considered simply as a member of the magistrat; he assists in its services and has a voice in its deliberations."39

From a governmental point of view, the German municipal policy occupies a place midway between two other systems, those of France and England. The English city is controlled by one elected council, to which the council itself adds members known as aldermen. Each important branch of city government has at its head a standing committee, which selects a permanent expert chief for the department. The mayor, who in no way differs from his colleagues, is elected by the council. He serves but a single year, his only important function. being that of presiding officer and titular head of the corporation.40 He has power to control neither executive nor legislative business. Apart from certain supervisory authority vested in the home secretary and the local government board, the voters control the council and the council the committees that carry on the city government.

In France we see the opposite extreme. The maire, elected by the council, assigns to his adjoints their several tasks and constantly supervises their action. His is the controlling spirit in the administration; for, whereas the council meets only four times a year, the executive corps holds frequent sessions. Moreover, the French maire occupies a dual position, not known in England and for the most part not in Germany. Not only is he the head of all communal life, but in his locality he represents the central power of the state. In this position he stands below the prefect and sub-prefect in the national administrative hierarchy, and sees that the general laws are executed within his commune. He is elected for a four-year term, serves without salary, and in case of negligence is liable to suspension by the prefect.

39 Oscar Pyfferoen, Berlin et ses institutions administratives, 13.

40 Albert Shaw, Municipal Government in Continental Europe, 315. See also Shaw's Municipal Government in Great Britain, 59, and W. R. Anson's Law and Custom of the Constitution, ii, 233.

The German bürgermeister has no such autocratic power as this French maire, backed as he is by the central government; nor can he be compared in any way with his much less forceful counterpart, the English mayor. Occupying a position between these two extremes, he has a part to play in German municipal life, a more important part than that of any other local official; he serves for many years, often for life; and, as official salaries go in Germany, he is well paid, and well deserves to be. He is a level-headed, well-trained, administrative expert, and often a man of national reputation.

In studying the German municipal system, one can not help asking whether it would bear transplanting over sea. In the United States, so far as I am aware, the board system has had a fair trial in but two cities, Washington, D. C., and Galveston, Texas; and in both places it has proved satisfactory." In spite of these two apparently successful attempts, however, it is far from probable that the German system would prove generally successful in America. For at least three centuries the lives of the German bürger and bürgermeister have reacted upon each other, and have developed civic conceptions entirely at variance with those prevalent in the New World. To choose a German magistrat by manhood suffrage would be to alter greatly its conservative character, which is, indeed, its greatest merit; and where in America may be found that class of administrative experts from which the bürgermeisters of the Old World are chosen? In other words, to transfer the institution from German soil and environment would be to alter its very nature, to change it beyond recognition."

11 A. R. Conkling, City Government in the United States, 22.

42

42 Yet the idea of municipal government by means of the board system is at present gaining ground in the United States. Agitation in Boston, Massachusetts, and in other eastern sections points in this direction, and recent legislation in Iowa seems to be an even stronger indication of the advance of the German system.

NOTES ON CURRENT LEGISLATION

MARGARET A. SCHAFFNER

Accidents. On February 25, 1908, a bill (H. R. 17979) relating to accidents on railways engaged in interstate and foreign commerce was introduced in congress.

The bill is a reënactment in substance of the law approved March 3, 1901, with new matter added which extends the scope of the reports on accidents at present required from common carriers, and also gives the interstate commerce commission authority to investigate for itself the causes of accidents resulting in serious injury to person or property. The commission is required to make public reports of such investigations, stating the cause of accident and the responsibility therefor, together with such recommendations as it deems proper. It is further provided that neither the reports of the company nor the investigations made by the commission are to be admitted as evidence or used for any purpose in any suit or action for damages.

Banking. The force of the panic of October, 1907, fell most heavily upon the banking institutions of New York State. Ten banks and trust companies, with twenty-one branches and a capital of $4,000,000, closed their doors; only three of which were able to resume business. These institutions were all under the regulation of State laws and the supervision of the banking department of the State, hence the immediate attempt was made to determine the weak parts of the State banking laws with the view to remedial legislation at the session of 1908. Shortly after the panic, Governor Hughes asked a number of prominent New York bankers to form a committee to report their views on banking reform. Their conclusions were laid before the legislature. The superintendent of banks, whose duties during the panic brought him into close touch with the evils in banking conditions, also gave most valuable advice in his annual report. These reports together with the recommendations of the governor form a good working basis for scientific amendment of the banking laws. The reasons for bank failures in this State are summarized by the superintendent as follows: lack of proper supervisory power, too great interdependence between corporations, a

lack of association for mutual assistance, and corporate abuses. Corporate abuses took four forms according to the superintendent, namely, a general disregard of law; lack of conservatism in management; inattention to, and disregard of, the duties of directors; and improper use of corporate credit for personal advantage.

To remedy the defects in the laws which permit these evils, is the purpose of the legislation which is being enacted at Albany.

SUPERINTENDENT'S POWERS. The superintendent of banks is given power by the proposed legislation to direct the discontinuance of unsafe practices, and may either publish the facts or assume charge of the bank on the ground that it is in an unsafe condition. At present he can only call the attention of the bank to the unsafe practices and may not take charge unless it shall appear that it is unsafe for the corporation to continue business. Power is also granted to investigate a corporation asking banking privileges and to grant a certificate of authority in his discretion if the corporation appears to be sound and public convenience or advantage would be promoted thereby. This power which is exercised to a certain extent at the present time, is extended and made to apply also to branches of banks or trust companies. Likewise the power of the superintendent to take charge of banks or the business of individual bankers, which he deems unsafe, is specifically extended to cover all institutions under his supervision. He is also made the statutory receiver for all failed banking institutions. Branch banks are not to be established except on his authority and the addition of $100,000 to the capital of the parent bank or trust company for each branch.

INTERDEPENDENCE OF CORPORATIONS. The report of the superintendent of banks attributes six of the ten bank failures to excessive interdependence of financial institutions, and moneyed corporations. The remedy proposed is a limitation upon the amount of loans which a banking institution may make to any other moneyed corporation. The limit of the amount of loans to a single interest is lowered from 40 per cent to 25 per cent, and limitations are placed upon underwritten loans to a single corporation. A time limit of one year is also placed upon underwritten loans. State banks are prohibited from loaning upon real estate mortgages more than 10 per cent to 25 per cent-varying according to locality-of their total assets. The use of second mortgages as security is prohibited.

CORPORATE ABUSES. The main corporate abuses which the proposed legislation seeks to remedy are the inattention to the business of the corporation on the part of directors or trustees, use of corporate funds for