Morning journal and courier., 1883-03-01
auurnal aIio Gonrisr.
Thursday, March I. 1888.
The General Assembly.

The General Assembly,
 The Townsend Bank Matter Ventilated
 Before the Committee on Banks-Re-
 eetvers DOOIittle and RedheId Relieve
 Their Mfnds-J. B. Sargent and the
 Forty yDaysExemptiOnBtIl New Way
 For Insurance Companies to Increase
 Their Capital stock-Other Matters of
 Interest.
 HARTFORD, Feb 2S, 1883. Special correspondence of the JOURNAL AND COURIER
 Both Senate and House came together promptly at 10:3O today, and considerable business was disposed of before adjourn ment. As will be seen, the matters disposed of were varied in their character, and there were no extended discussions on anything that came up for action.
 This afternoon the principal interest cen- tered in the room of the Committee on Banks, who had set apart this day for the hearing of the statements of the receivers of the Townsend Savings bank of New Haven. Hilton E. Doolittle was the first of the re- ceivers to be heard. He said if the public were as acute as they ought to be they would not wonder why the affairs of the Townsend bank had not been wound up. In 1873 the Legislature appointed special commission to examine all the savings banks in the State and report to the next General Assembly. MT Doolittle then read from the report of this committee to show how the funds of the Townsend bank were invested at that time. The commission said that many of the col lateraIs were absolutely worthless. He then read from the report of the Bank Comnnis- sioners made in 1875 and soon after the re- ceivers were appointed. The receivers came before the next Assembly and told them what there was, and MT. Sperry asked for @ scaling down of prices--when it was evident that they could not go on and pay fifty cents on a dollar. He said that many of the collaterals had no market value whatev- CT at that time. They have some market value now, and we have tried to make them have some market value. Now we paid 8 twenty per cent. dividend as quick as we could, and we have paid two since of ten cents each. We don't believe that anyone could have done better with the coElaterals we had to deal with. I can't stop to tell you all about this matter. We met men in New York who were interested iu some of the stocks, and they said they were worthless, but we went forward and obtained over S2OO, OOO He referred to communication that appeared in the JOURNAL AND COURIER, inquiring where the money went received from the Metropolitan Gas company and how much rent was received for the Town send Bank building. He said that communi- cation was written either by knave or fool and he asked the committee to summon the Al. I,o him tell who wrote it. He said that the Metropolitan Gas company's stock had been accounted for, and any business man in New Haven knew that the building did not belong to the bank, and never did Then he cooled of and brought up the Credit Mo- bilier stock, which was still in the courts, and depended entirely upon the decision of the Supreme court of the United States. It was believed that 100 cents on the dollar would finally be paid on this stock, and if so, they would receive about 1000 as their share. He said that they would not keep the bank open one second if it were not for these matters that were in litigation. They ask us to put this money that we have in some bank where it will draw interest Yes, said MT. D., you do that and first you know the money is gone. He said that books were coming in all the time, mostly of small amounts to be sure, and on which no divi- dend had ever been paid. In regard to the Continental bank he thought there was a
 case where they could recover. He said the
 Arkansas railroad property was not worth
 one cent when the bank went into the hands
 of the receivers. Finally they investigated, \ foreclosed the road and the bondholders took
 the road in charge. There is litigation in
 this case which will probably go to the Su- preme court of the United States, and we 4 believe that we have good case in these
 bonds, and we do not want to close the bank until the matter is decided. Then there are
 the Covington, Ky, railroad bonds. We
 thought few months ago that we would get 95 per cent of this amount, but they have started litigation and we have got to fight it out.
 Weget no pay for our work, and have not had one cent of salary for the last two or three years, and should not if we received and paid out $500, ,OOO Mir. Doolittle then read letter he had received in New Haven which threatened him with instant death if he did not pay ten per cent to depositors and that speedily. The writer also called him vile names.
 In reply to MT. Davis, of Haddam, MT. Doolittle said that none of the banks of de- posit that were responsible paid any interest on deposits He said that he had been to several first class banks and they had all re- fused to take the money and pay interest upon it.
 Mr. Redfield followed. He said that it would cost from $2 500 to $3, 900 to make dividend for clerical help. He said that since the Arkansas railroad had come into their and others possession it had been i'm proved and it's value very much increased. He said the interest of the bank in the lands near the road was about one fifth, and if they closed the bank these lands would have to be put up at auction and little would be realized. In such case he would like to resign his position as receiver and bid on the lands. In regard to the Adirondack mortgage he said that under the charter of the company they were not obliged to pay taxes and the amount in that interest should some day be worth all it cost.
 He referred to suit pending between par ties in New York in which they finally se- cured O,oOO, but suit was in return brought by the party who paid the amount, or in other words he factorized upon him self and the case is still pending, or has been tried and they are awaiting a decision He said if the receivers realized 50 cents per acre the banks proportion would amount to about SPA, ,0OO. He said there was not one iota of reason why he and Mir. Doolittle wished to keep the bank open. They felt sure if the banks affairs were closed up the depositors would be the sufferers. He said in reply to MT. Davis, in regard to putting the money where it would draw interest, that that was the way the Townsend bank first got into trouble. He said that the receivers were under $50, 900 bonds, and they did not propose to take the chances in any bank that paid interest unless they were sound. MT. Troup said to the committee that in New Haven there was a general desire to have the affairs of the bank closed up at once whether they received a cent or not. Mr. Redield said if the affairs of the bank had been closed up at once the depositors would not have received over 22 or 23 per