Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1883-02-24
MAINE LEGISLATURE.
SENATE.
Confined from first page. }

for the taxation of telephone companies, was
taken from the table and amended. The bill
then passed to be engrossed-
House document No. II, resolve in aid of
repairing the bridge across the Ma.tawam-
keag River, in the town of Mattawamkeag,
was taken from the table. on motion of Mr..
Marble of Lincoln, wha moved its indefinite
postponment. He said that he thought the
town was abundantly able to support the
bridge, and that an appropriation was not
called for.
bridge is State bridge, and that the State
of Maine is under obligation, by its agree
ment with the United States, to keep it in
repair.
Mr.. Wentworth of Penobscot moved that
the bill lie on the table, for the purpose of
amendment.
Bill an act relating to the powers and du
ties of constables in the towns of Deer Isle
and Isle au Haut, in the county of Hancock,
was taken from the table, on motion of Mr..
Gushee of Knox. and was discussed by
Messrs. Gushee of Knox. Stubs of Franklin,
Bragdon of Hancock, and Kimball of Sagada-
hoe.
The bill was again tabled. on motion of
Mr.. Stubs of Franklin.
Senate document No. 81. the savings bank
bill, was taken from the table, on motion of
Mr.. Young of Cumberland.
Mr.. Young moved to amend bv striking out
the clause allowing savings banks to invest
in car trust securities, and supported his mo-
tion in a brief speech. Car trust securities
originate in this way: When a railroad
is not able to purchase what roll
ing stock it needs, it may obtain
the necessary cars from certain companies
which are formed for the purpose by paying
a small amount down and giving a mortgage
on its rolling stock for the remainder. A
company which has plenty of money never
wants to hire rolling stock; a railroad which
is in 6rst-class condition can usually obtain
all the money it needs to purchase cars.
There is another weak point about these car
trust securities; they are in the nature of a
chattel mortgage on very movable property.
These freight cars are sent all over the Uni
ted States. and there are very few rail-
roads which could find all their cars
if they should make the attempt These Sc
curities are very tempting investment, as
they generally pay high rate Of interest,"
anywhere from six to eight per cent High
interest means poor security, always. At
time when the State of Maine can borrow all
the money it wishes at three per cent. and
almost any man with collateral can borrow
suspicion on an investment which pays
double this rate. If the amendment is not
adopted, the State is giving its sanction to
an investment which at best is doubtful.
Mr.. Young said that he was utterly OPP
POSED to throwing open the door to indiscrim-
mate investments for savings banks.
Nj. Marble of Lincoln said the bill was
the result of convention of the officers of
the savings banks of Maine. The stringent
legislation of 1877 so restricted the field of
investment tor savings banks, that the Maine
banks have been obliged to refuse many
profitable investments. Every item of the
bill-this among others-was thoroughly dis
cussed at the convention of savings bank
officers, and it was the unanimous opinion of
every man present that it should go in. Some
of the bonds issued by car trust companies
sell as high as 20 per cent premium. Mr..
Marble denied the statement that only poor
railroads patronize these car trust companies.
The Pennsylvania Central, one of the richest
roads in the country, does not own its rolling
stock. He thought these securities were
suitable investment for savings banks. and
hoped the amendment would not prevail.
Mr.. Mclaughlin of Portland said that the
safest way, usually, was to leave the question
of investment to the discretion of the officers
of the bank.
Mr.. Maxwell of York said that these car
trust companies have been in existence some
ten years, and at no time have they failed to
paw dividends. This was a good argument, he
thought, for the solvency of these companies.
The officers of the savings banks of Maine
have proved themselves careful, conscien-
tious men, and we can safely trust to their
discretion to make no investments in Wild
cat securities.
Mr.. Young of Cumberland: "That is just
the point. The legislature undertakes to say
what securities savings banks may invest in;
it thereby endorses certain securities. | OBJ
iect to its endorsing these car trust securities"
Mr.. Weeks of Kennebec said that he had
talked with several gentlemen on the subject,
and the Senator from Cumberland Mr..
Youngl was the only man he had met who did
not think these securities were a good in
vestment.
Mr.. Wentw orth of Penobscet said that he
was opposed to any investment which periled
the savings of depositors. He should vote to
reduce the tax on savings banks one-fourth
of one per cent so that they can make safe
investments, and earn fair dividend without
investing in wildcat securities. He did not
think the legislature ought to give them any
discretion which would allow them to en-
danger any deposit of any woman or child in
the State.
The bill was further discussed by Messrs.
Heath of Kennebec. Marble of Lincoln, Lee
broke of Piscataquis. and Mclaughlin of
Cumberland.
On motion of Mr.. Marble of Lincoln, the
vote on the adoption of the amendment was
then taken by yeas and nays, resulting in the
negative as follows:
YEA -Messrs Bragdon, Kimball, Nutting,
Stubs, Taber. Wentworth, Wilson and Young.-s
NAY.-Messrs. Clark, Coffin, Common, Gushee,
Heath, Hume, Lebroke, Marble, Maxwell, McLaugh
The bill was then passed to be engrossed.
House document No. "a. resolve making
an appropriation Of $500 to build a bridge
across the Wytopitlock stream. county of
Aroostook, was taken from the table, on
motion of Mr.. Marble of Lincoln. who moved
that $500 be inserted in place of $500.
The bill was discussed by Messrs. Marble
of Lincoln, Wilson of Penobscot, Weeks of
Kennebec, Stubs of Franklin, Conner of
Somerset, Wentworth of Penobscot; and, on
motion of the last Senator. the bill was again
tabled for the purpose Of obtaining additional
information.
On motion of Mr.. Gushee OF Knox.
Adjourned.
PETITIONS, BILLS. ETC. PRESENTED AND
REFERRED.
By Mr. Bragdon Of Hancock-Petition of
members of the Baptist church at Winter
Harbor for an act to enable them to hold
property and to transact business; referred