TELEPHONES. The constant tendency is for the largest telephone company to absorb the smaller ones in our State, and this makes it important that the power to regulate the rates and supervise the service of this important class of quasi public corporations be made full and clear. Our statute is now very meagre. We respectfully recommend that the attention of the General Assembly be called to this matter. BANKS. The great progress going on in the industrial development in our State is reflected in the increase in number and resources in our banks. The number of State, private and savings banks in our State on the date of our last annual report was 192; now we have 236. The total resources of these banks, according to report of November 10, 1904, was $31,604,183; the total resources of these banks, according to report of November 9, 1905, was $41,095,539-an increase of $9,491,356. The capital stock November 10, 1904, was $4,935,504; November 9, 1905, $5,656,815-an increase of $721,311. Loans and discounts, November 10, 1904, $20,759,830; November 9, 1905, $25,278,000-an increase of $4,518,696. There were 50 National banks in North Carolina on October 30, 1905, with a capital stock of $3,975,000. Five of these banks were organized during the year October 31, 1905, with a combined capital stock of $475,000. On November 10, 1904, the total resources of these banks was $25,389,809, while on November 9, 1905, it amounted to $30,401,436. In view of the large amounts of funds entrusted to them, and the further fact that a number of them have small capital stock, the Commissioners appreciate the great responsibility resting upon them in the supervision of State banks. By careful examination and report upon the condition of each bank, and criticism thereupon directed to the board of directors or other officers of the bank, we believe that much has been done to promote good banking in the State. We are pleased to say that in most instances the criticisms of the Commission were accepted and acted upon in good spirit. Upon examination it was found that the business of the Bank of Benson had not been properly conducted, and time was given the bank to correct the irregularities; but, failing to put the bank in proper condition, the Commission ordered it closed, and Mr. J. F. Lee, Benson, N. C., was appointed receiver by order of the Superior Court of Johnston County, and the same is now in process of liquidation. The Bank Examiner discovered irregularities in the business of the Bank of Fayetteville in shortages which involved the cashier and teller, which were called to the attention of the board of directors, and time was allowed them to put the bank in proper condition. The board of directors, fearing a run on the bank, declined to avail themselves of the time allowed, and requested the Commission to have the examiner take charge of its assets and apply for a receiver, and this was done. Mr. R. T. Gray was appointed temporary receiver by order of the Superior Court of Cumberland County, but during the temporary receivership the affairs of the bank were thoroughly examined and arrangements were made to pay all the creditors, and the case was thus adjusted and settled. The bank was reorganized and resumed business. John O. Ellington, Bank Examiner, resigned April 1, 1905, and John W. Aycock was elected to succeed him. He resigned on the 18th day of September, 1905, and F. J. Haywood, Jr., was elected to the position. TAXES. The total assessed value of all property assessed by the Corporation Commission for 1905 was $75,373,333. INCOME TAX. By the last Revenue and Machinery Act, incomes subject to taxation were required to be listed with the Corporation Commission. Notwithstanding the rather complicated machinery provided for it, the amount of incomes returned in 1905 was $2,798,895, against $2,454,504 for the year 1904-an increase of $344,391. Two thousand eight hundred and twenty-five persons listed incomes for taxation. No incomes were returned from the following twelve counties: Alexander, Ashe, Camden, Clay, Currituck, Dare, Graham, Haywood, Mitchell, Polk, Watauga and Yancey. Respectfully submitted, FRANKLIN MCNEILL, Chairman. E. C. BEDDINGFIELD, Commissioners. CORPORATION COMMISSION LAW. BEING CHAPTER 20, REVISAL OF 1905, INCLUDING AMENDMENTS OF THE LEGISLATURE OF 1905. ALSO MISCELLANEOUS ACTS IN RELATION TO THE 1054. COURT OF RECORD. There shall be a court of record, known as the "corporation commission." Such court shall adopt a seal, and shall have all of the powers and jurisdiction of a court of general jurisdiction as to all subjects embraced in this chapter. The members and clerk thereof may administer oaths. 1899, c. 164, ss. 1, 31. 1055. NUMBER OF COMMISSIONERS. The court shall consist of three commissioners, who shall be elected by the qualified voters of the state, in the same manner as other state officers are elected. The court shall organize by the election of one of the commissioners as chairman. 1899, c. 164, s. 1. 1056. TERM OF OFFICE. The term of office of the commissioners shall begin on the first day of January next after their election, and shall continue for six years and until their successors are elected and qualified. One member of the court shall be elected at each general election. 1899, c. 164. 1057. VACANCY. If for any cause there shall be a vacancy in the commission, the governor shall appoint to such vacancy. Such appointee shall hold until the election and qualification of his successor, who shall be elected at the next general election, after the vacancy occurred. The person so elected shall hold office for the unexpired term. 1899, c. 164; 1901, c. 194. 1058. QUALIFICATION OF COMMISSIONERS. It shall be unlawful for any member or official of said court to jointly, severally, or in any other way, either directly or indirectly, hold any stock or bond, or be the agent, attorney or employee, or have any interest in any way, in any steamboat, railroad, canal, navigation, express, telegraph, telephone, bank or building and loan company, or association. If any member or official of said court shall, during the term of his office as distributee or legatee, or in any other way, have or become entitled to any stock or bonds or interest therein of any such company he shall at once dispose of the same, and upon failure to do so shall forfeit his office, and may be suspended by the governor. 1899, c. 164. 1059. OATH OF OFFICE. The members of the court, in addition to the oath to support the constitution and laws of the United States and the constitution and laws of the state of North Carolina, shall take, to be administered by one of the judges of the supreme court, the following oath of office, which oath shall be signed by such commissioners and attested by said judge and recorded in the office of the secretary of state: "I do solemnly swear (or affirm) that I am not the owner of any steamboat or of any stock or bond of any railroad, navigation or canal company, express, telegraph or telephone company, or of any bank or building and loan association, or the agent or attorney or employee of any such company or association; that I have no interest in any way in any such company or association, and that I will well and faithfully execute the duties of my office as a member of the corporation commission and as state tax commissioner to the best of my knowledge and ability, without fear, favor, malice, reward or the hope of reward. So help me, God." 1899, c. 164, s. 1; 1903, c. 251, s. 3. 1060. PLACE OF MEETING. The court shall be held in the city of Raleigh. Special sessions may be held at any place, in the state, when in the judgment of the court the convenience of all parties is best subserved and expense is thereby saved. 1899, c. 164, ss. 30, 31; 1901, c. 679, s. 4. 1061. OPEN AT ALL TIMES. The court shall be open at all times for the transaction of business, and each member shall devote his whole time to the discharge of the duties of his office, and it shall be his duty to remain in the office of the commission at least fifteen days in each month, unless detained therefrom on official business. 1899, c. 164, s. 30; 1903, c. 251, s. 3. 1062. QUORUM. Any two members of the court shall constitute a quorum for the transaction of business. The chairman is hereby authorized and empowered to perform the duties and exercise the powers conferred by law upon the corporation commission as to or over banks and building and loan associations, but this shall not prevent, as to banking and building and loan associations, the other members of the court from acting with the chairman in all of such matters. 1899, c. 164, s. 29. 1063. CLERK. The court shall appoint a clerk, who shall be an expert accountant, experienced in railroad statistics and transportation rates. His term of office shall be for two years. He shall take and subscribe to oaths of office similar to those prescribed for the commissioners. 1899, c. 164, ss. 9, 31. II. INVESTIGATIONS. 1064. EXAMINATIONS. The commissioners shall from time to time visit the places of business, and investigate the books and papers of all corporations, firms or individuals engaged in the transportation of freight or passengers, the transmission of messages either by telegraph or telephone, all public or private banks, loan and trust companies, and all building and loan associations, to ascertain if all the orders, rules and regulations of the corporation commission have been complied with, and shall have full power and authority to examine all officers, agents and employees of such companies, individuals, firms or corporations, and all other persons under oath or otherwise, and to compel the production of papers and the attendance of witnesses to obtain the information necessary for carrying into effect and otherwise enforcing the provisions of this chapter, and the chapter entitled "Banks" and "Building and Loan Associations." 1899, c. 164, s. 1. 1065. RAILROAD ACCIDENTS. The commission may investigate the causes of any accident on a railroad or steamboat which it may deem to require investigation, and any evidence taken upon such investigation shall be reduced to writing, filed in the office of the commission, and be subject to public inspection. 1899, c. 164, s. 24. III. POWERS. 1066. GENERAL POWERS. The corporation commission shall have such general control and supervision of all railroad, street railway, steamboat, canal, express and sleeping car companies or corporations and of all other companies or corporations engaged in the carrying of freight or passengers, of all telegraph and telephone companies, of all public and private banks and all loan and trust companies or corporations, and of all building and loan associations or companies, necessary to carry into effect the provisions of this chapter, and the laws regulating such companies. 1899, c. 164; 1901, c. 679. 1067. WITNESSES; PRODUCTION OF PAPERS; CONTEMPT. The corporation commission shall have the same power to compel the attendance of witnesses, require the examination of persons and parties, and compel the production of books and papers, and punish for contempt, as by law is conferred upon the superior courts. 1899, c. 164, ss. 1, 9, 10. 1068. RULES OF PRACTICE. The corporation commission shall prescribe rules of practice and procedure in all matters before it and in all examinations necessary to be made under this chapter. 1899, c. 164, s. 2, subsec. 24. 1069. RULES OF EVIDENCE. In all cases under the provisions of this chapter the rules of evidence shall be the same as in civil actions, except as provided by this chapter. 1899, c. 164, s. 26. 1070. SUBPOENAS, HOW ISSUED; SERVED. All subpoenas for witnesses to appear before the commission or before any one or more of the commissioners, and notice to persons or corporations, shall be issued by one of the commissioners or its clerk and be directed to any sheriff, constable or to the marshal of any city or town who shall execute the same and make due return thereof as directed therein under the penalties prescribed by law for a failure to execute and return the process of any court. 1899, c. 164, s. 10. 1071. SERVICE OF ORDERS. The clerk of the commission may serve any notice issued by it and his return thereof shall be evidence of said service; and it shall be the duty of the sheriffs and other officers to serve any process, subpoenas and notices issued by the commissioners, and they shall be entitled therefor to the same fees as are prescribed by law for serving similar papers issuing from the superior court. 1899, c. 164, s. 9. 1072. UNDERTAKINGS. All bonds or undertakings required to be given by any of the provisions of this chapter shall be payable to the state of North Carolina, and may be sued on as are other undertakings which are payable to the state. 1899, c. 164, s. 7. Whenever any 1073. CONTROVERSIES MAY BE SUBMITTED TO COMMISSION. company or corporation embraced in this chapter has a controversy with another corporation or person and all the parties to such controversy agree in writing to submit such controversy to the commission as arbitrators, the commission shall act as such, and after due notice to all parties interested shall proceed to hear the same, and their award shall be final. Such award in |