for five years prior to the time of making such investment by such bank, paid annually, dividends equal to not less than four per cent on its entire capital stock and has not during said period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by a mortgage or trust deed upon its property or any part thereof. or in the payment of any part of the matured principal or interest of any bonds guaranteed and assumed by it; lines. (e) In the first mortgage bonds of railroad companies Leased whose lines are leased or operated or controlled by any railroad company specified in paragraph (d) of this section, if said bonds be guaranteed both as to principal and interest by the railroad company to which said lines are leased or by which they are operated or controlled; (f) In the legally authorized mortgage bonds of any steam railroad corporation organized under the laws of any state of the United States, which shall have been issued for the purpose of retiring all prior mortgage indebtedness on so much of the property of such company as is covered by the mortgage securing such issue of bonds, and further providing for additions, extensions or improvements: Provided, That such com- Proviso. pany has for three years prior to the time of making such investment by said bank paid annually dividends equal to not less than four per cent on its entire capital stock, which capital stock shall equal or exceed in amount one-third of the par value of all its bonded indebtedness, and has not, during the same period, defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest upon a bond guaranteed or assumed by it: Provided, That said issues of bonds shall have been approved Proviso, by the securities commission hereinafter provided for; approval. bonds. (g) In the legally authorized first mortgage bonds of any Electric railelectric railroad, street railway, telephone, gas or electric road, etc., light or power company, organized under the laws of the state of Michigan: Provided, That such company has, for Proviso. five years prior to the time of making such investment by said bank, paid annually dividends equal to not less than four per cent on its entire capital stock, and has not during the same period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest of any bonds guaranteed or assumed by it; or in the first mortgage bonds of any such company which has been in operation less than five years: Provided, That the cost of Proviso, construction and equipment of the plant of such company shall exceed by at least fifty per cent the amount of the entire bonded indebtedness of such company, and the said plant and equipment shall be free from all other liens and encumbrances, and the said company shall have earned during Proviso. Steamship bonds. Proviso. Proviso. Further proviso. Further proviso. Further proviso. Further proviso. Further proviso. the period it has been in operation, more than enough to pay all interest accrued on all said bonds and not less than four per cent per annum dividends upon its entire capital stock outstanding: Provided, That said issues of bonds shall have been approved by the securities commission hereinafter provided for; (h) In the legally authorized first mortgage bonds of steamship companies: Provided, That such mortgages shall be upon steel steamship or steamships for the carriage upon the great lakes and connecting waters of package freight and passengers combined of at least five thousand tons carrying capacity each, and upon bulk freighters of at least seven thousand tons carrying capacity each: Provided, That such bonds are issued at the time of completion and enrollment of such steamship or steamships, or within one year thereafter: And provided further, That by the express terms of said mortgage, at least ten per cent of the total issue of said bonds shall be retired annually, beginning within two years from the date of said bonds, and that the mortgage liability against said property shall not exceed one-half of its actual cost: And provided further, That the trustees of such mortgage shall be required to protect the lien of said mortgage by attending to the recording thereof and by causing property covered by said mortgage to be insured against all risks on vessel property ordinarily covered by such insurance, including marine risks and disasters, general and particular average, collision liability, protection and indemnity insurance and insurance against liability for injuries to persons, in insurance companies and under forms of policies approved by the trustee, for an amount equal to the full insurable value of such steamship, such insurance to be made with loss payable to said trustee and the policies deposited with it: And provided further, That there shall be filed with the commissioner of the banking department of this state a schedule of the insurance upon such property, which schedule shall be signed by the trustee under said mortgage and shall be accompanied by the certificate of said trustee that the policies mentioned in said schedule are held by said trustee, and are payable to said trustee in case of loss for the benefit of the holders of the outstanding bonds issued under such mortgage: And provided further, That similar certificates be filed from time to time by said trustee with said commissioner of the banking department of this state, evidencing renewals of said insurance by proper policies or legal insurance binders: Provided further, That by the terms of such mortgage, the mortgagor shall not suffer such steamship to become indebted in an amount exceeding five per cent of the original amount of the principal of said mortgage at any time and that the failure of the mortgagor to forthwith procure the release of such steamship or steamships from mechanics', laborers', admiralty, statutory, or other liens, claims or charges against said steamship, shall constitute proviso, a default in the provisions of such mortgage: And provided Further further, That such bonds shall have been approved by the approval. securities commission hereinafter provided for; (i) Said banks may loan the same upon negotiable paper Negotiable or other evidence of indebtedness, secured by any of the above paper. mentioned classes of securities; or mortgage. (j) Upon notes or bonds secured by mortgage lien upon Notes, etc., unencumbered real estate worth at least double the amount secured by loaned except on improved farm property the amount loaned upon such notes or bonds secured by first mortgage lien shall not exceed sixty per cent of value of such property; or (k) In accepted drafts or bills of exchange having not Bills of exchange, etc. more than six months to run growing out of transactions involving the importation or exportation of goods; or growing out of transactions involving the domestic shipment of goods providing shipping documents conveying or securing title are attached at the time of acceptance; or which are secured at the time of acceptance by official warehouse receipt or other document conveying or securing title covering readily marketable staples. For the purposes of this section the acceptance of any one person, company, firm or corporation shall not exceed at any time more than twenty per cent of its paid up capital and unimpaired surplus. The aggregate of such accepted drafts or bills of exchange shall not exceed at any one time the amount of capital stock and unimpaired surplus of the bank; (1) The remainder of such deposit may be invested in Notes, etc. notes, bills, or other evidences of debt, the payment of which is secured by the deposit with the bank of collateral security consisting of personal property or securities of known marketable value worth ten per cent more than the amount so loaned and interest for the time of the loan; or may be invested in notes, bills or other evidences of debt, the payment of which is secured by such property or securities deposited in a trust company organized under the laws of this state; or may be deposited in any national bank, trust company, or bank in cities in this or any other state, approved by the commissioner of the banking department as reserve cities, and a portion of said remainder, not exceeding the capital and additional stockholders' liability, may be invested in negotiable paper approved by the board of directors, but the deposits in any one bank shall not exceed ten per cent of the total deposits, capital and surplus of the depositing bank. In case the actual reserve shall fall below the twelve per cent above provided, the bank shall promptly and in good faith take measures to restore and maintain its lawful reserve, in default of which the commissioner of the banking department shall require such restoration within thirty days after notice, and a failure to comply with such demands shall warrant proceedings to wind up the bank as provided in section six of this act. Approved April 26, 1923. Section amended. Taxation of foreign insur ance com panies. [No. 91.] AN ACT to amend section seventeen of chapter two of part two, act number two hundred fifty-six of the public acts of nineteen hundred seventeen, entitled "An act to revise, consolidate and classify the laws of the state of Michigan relating to the insurance and surety business; to regulate the incorporation of domestic insurance and surety companies and associations and the admission of foreign companies; and to provide for the departmental supervision and regulation of the insurance and surety business within this state," approved May ten, nineteen hundred seventeen. The People of the State of Michigan enact: SECTION 1. Section seventeen of chapter two of part two of act number two hundred fifty-six of the public acts of nineteen hundred seventeen, entitled "An act to revise, consolidate and classify the laws of the state of Michigan relating to the insurance and surety business; to regulate the incorporation of domestic insurance and surety companies and associations and the admission of foreign companies; and to provide for the departmental supervision and regula tion of the insurance and surety business within this state," approved May ten, nineteen hundred seventeen, is hereby amended to read as follows: SEC. 17. Taxation of foreign insurance companies. Every foreign insurance company, of the classes herein enumerated, admitted to do and doing any insurance business in this state, shall, as a condition precedent to the privilege of doing business, pay to the treasurer of the state of Michigan, on the first day of January, of each year, or within sixty days thereafter, (subject to the retaliatory provisions herein before provided) a tax upon its said business written in this state under the authority of the commissioner of insurance hereof, for the year ending December thirty-one, of the preceding year, computed as follows: First, Old line legal reserve life insurance companies, whether organized on the stock or mutual plan, a tax of two per centum on the gross premiums; Second, Mutual workmen's compensation companies, and casualty companies having a capital stock, a tax of two per centum on all premiums, deducting for premiums returned on cancelled policies, and reinsurance premiums received when the tax has been paid on the original premium; Third, Fire, marine and automobile insurance companies, whether stock or mutual, three per centum, on all premiums, deducting for returned premiums on cancelled policies and reinsurance when the tax has been paid on the original premiums; and in mutuals also deducting for dividends paid to members. of other Such specific taxes shall be in lieu of all other taxation, In lieu whether state or local, excepting for real estate owned by taxation. such companies within this state and securities deposited herein unless exempted under the general tax laws of the state. No certificate of authority shall be granted to any insurance company or to its agents as such, that is delinquent in the payment of the taxes or penalties prescribed in this act. It is hereby required that all such companies which are represented by agents in this state, shall pay to this state an agent's license fee of two dollars for each such agent, meaning thereby each person acting as an agent, and each individual of a corporation, partnership or firm, which shall be licensed agreeable to the provisions of chapter three. part two of this act. All such license fees are hereby appropriated to the general fund of the state. Approved April 26, 1923. [No. 92.] AN ACT to regulate the sale, disposition, distribution and possession of certain habit forming drugs; to provide a procedure for the discovery of evidence of the violation of this act and to provide for penalties for the violation hereof. The People of the State of Michigan enact: sell, etc. SECTION 1. It shall be unlawful for any person, natural or Opium, etc., artificial, or for the officers, agents, servants or employes of unlawful to any corporation, directly or indirectly, individually or by agent, servant or employe, to sell or offer for sale, give away or offer to give away, dispense or distribute or have in his possession for sale, giving away, dispensing or distribution, any opium or coca leaves, or any compound, manufacture, preparation or derivative, their salts, or any preparation of them, derivative or preparation thereof except as hereinafter provided. SEC. 2. Possession of any of the drugs, compounds or Possession derivatives mentioned in section one shall be prima facie prima facie evidence of the violation of this act. violation. certain per SEC. 3. The provisions of this act relating to possession Provisions not of any of the drugs, compounds or derivatives aforesaid shall applicable to not be deemed to apply to officers of the law obtaining and sons. retaining such possession for the purposes of prosecution of violations of this act, nor shall the prohibitory or penal provisions of this act apply to manufacturers, wholesale druggists, pharmacists, druggists, physicians, nurses and caretakers, patients and others possessing and using said drugs, compounds or derivatives in compliance with the provisions |