The Portland daily press., 1893-03-24
LOBBY TRIUMPHS.
Boomers Carry Their Subsidy Meas.
ure Through the Senate.
THE LISTING BILL HAS BEEN SENT
TO CONFERENCE.

Biennial Tinkering of the Liquor Law
Prohibiting the Peripatetic Bear-An
Unsuccessful Democratic Ruse-Insane
Hospital Compromise-Other Buciness.
Especial to the Press.]
AUGUSTA, March 23.-The Boomers
may hold another celebration tonight.
The Senate, like the House, has passed
the savings bank bill reported by the
majority OF the special committee on
taxation, or, in other words, the bill
which provides for discriminating tax
in favor of investments in Maine securi-
ties. This ends one of the most remark
able episodes of the winter. From the
time when four high priced lawyers ap-
peared before the committee ON taxation
and urged the passage of a bill embody-
ing this discriminating feature, until to-
day, the efforts of the lobby in it's behalf
have been unceasing. The active Boom
ers have lived here and should they now
depart for home the State House would
look lonesome. Many bond will have
to be sold before the board bills and ex-
penses of the Boomers are liquidated.
The matter came up by assignment in
the Senate today and Mr.. Peakes made
an argument in support of the bill. He
explained its provisions and quoted pre-
cedents to show that the method of taxa
ton it established was constitutional.
Continuing he said that what we needed
and what we desired in this state more
than any other one thing was policy ,of
development. We had more territory
than all the rest of the New England
states; we had water power which if
properly developed would turn every re-
volving shaft in the United States; we
had everything, if the states resources
were developed, to make us happy,
wealthy and wise. Mr.. Peakes thought
that something should be done to keep
the accumulations of the people at home.
He believed in savings banks. One in
his town was managed by some of the
most honorable of the citizens of the
town. But he did not believe that the
$56, ,0O0,O 900 held by the banks should be
sent out of the state. 1t ad been urged
that this bill would affect the banks inju-
riously. Mr.. Peakes did not think so.
He thought that the tax would make
little difference to the banks any way,
but the proposed law would have a ten
dency to induce the banks to invest more
| largely in Maine securities when the Sc
curities were good. AS he thought it
| over, Mr.. Peakes had come to be sur
prised that had ever objected to the dis
eliminating feature of the bill. He was
now heartily in favor of it, believing it
would benefit the state. He moved that
the rules be suspended and the bill take
it's several readings at this time.
Mr.. Swanton opposed the bill. He OBJ
jected to it because he did not believe in
the principle embodied in it. He thought
the banks were already subjected to
sufficient pressure to invest here now.
He did not believe that they should be
put under pressure to invest in securi-
ties which they did not want. Savings
banks were receiving large sums of
money all the time and were constantly
investing. They wanted of course to
get the interest on the money as soon as
possible. 1t was not fair to make them
wait until some particular kind of in
vestment could be secured, the banks
thus being obliged to lose interest. This
pressure on the banks. And for that
reason Mr.. Swanton thought it would
fail to accomplish the purpose of the
gentlemen who had advocated its pur-
pose.
Savings banks necessarily had to keep
on hand an amount of easily convertible
securities. Their depositors were likely
to make demands upon them at any
time and the banks must be in position
to command money to meet these calls.
Now. there we're very few Maine securi-
ties which in a stringency of the money
market could be quickly converted into
cash.
Mr.. Swanton emphasized the subsidy
feature of the bill making a strong point
against it. He pointed out that when
the difference in the tax was made in
favor of. Maine securities, there was
just so much less revenue flowing into
the state treasury. The state in other
words paid that much subsidy in favor
of the Maine securities in which the
banks invested. The minority of the
committee had reported bill which in
creased savings banks tax in the manner
now in use. This bill was simple, while
the bill reported by the majority was i'm
perfect, as was shown by the fact that
amendments were necessary to it. Mr..
Swanton advocated the passage of the
minority bill.
The Senate, however, by large vote,
passed the boomers's bill to be engrossed
the vote being as follows:
Yeas-Messrs. Allan, Clark. Coffin. Cook,
Deering, Grindle, Hersev, HerS0m Lyons, Ma
yo, Nickerson, Peakes, Seiders, Spofford, Water
house, Wiggin, WinslOw, Wood-18.
A Dn