Waterbury evening Democrat., 1903-05-27
1t Repudiates Charges Made By
 Senator Ayling.
WHY BANKS ARE ADMITTED

Through Negligence New Brit
 ain Consoli idation Bill Was Passed
 Bill Making Cities Responsible for
 Damage Done by Mobs Passed ln
 Concurrence.
 Hartford May 27.-The attack made last week by the savings banks asso- citation of the state and by Senator Ay- ling on the floor of the senate on the }committee on banks because of the ac- ] ton of that committee ill admitting three new railroad bonds at the in stance of certain New York bankers as new securities for savings banks in this state, was comprehenslvely ans wered in public statement issued by the committee this morning at the cap itoI.
 It was charged last week by Senator Ayling that the committee had been unduly influenced in reporting favor ably upon the new investments, and that the new bonds were unsafe se- curities for savings banks in this state to invest in.
 The committee repudiates all of the charges made by Senator Ayling, as we'll as the circular issued by the bank trustees against the bill.
 The answer of the committee in brief is as follows:
 "The field for investments in Con- necficut, notwithstanding increases, has been so limited that the income de rived from trust estates has been con- stantly declining, and an increasing number of savings banks each year n III upon deposits from four to three and one-half per cent, and even three per cent per annum. Trust companies and trust estates in Connecticut annually buy much larger amount of legal se- curities than savings banks do, and it appeared to the committee that the reasons for admitting additional bonds for legal investments for the state of Connecticut are stronger and moue convincing this year than in the ses- isions of 1901 and 1899, and previous { thereto
 It was also shown to the committee that two of the most active members of the executive committee of the sav- tngs banks association who appeared in opposition to the admission of any additional bonds at this session of the
 
 of the savings banks association, re garding this matter, had previous to the hearings, endorsed two of the bonds reported favorably by the com mittee and had agreed to support the admission of these bonds as legal in vestments in Connecticut, at the hear ings to be held before the committee, and no satisfactory reason has appear . 9xad fnTs Ina n1N fVN wards these bonds. The committee felt, therefore, that it was for the best interest of the state of Connecticut to admit bonds equal and superior in se- curity to the bonds already legal in- vestments for savings banks, especial sly as the admission of these bonds would prevent the virtual control and monopoly of all legal investments of savings banks by one firm.
 Moreover, situation had arisen through the action of the legislature at the two previous sessions, which seem ed to the committee to make it impera- tive to admit additional securities at this session. The legislature in 1899 admitted twelve railroad bonds, by name, as legal investments, and at the session of 1901, admitted fourteen ad-
  bonds, made legal at the last two ses sions, the floating supply of all but two are owned or controlled by one !. firm of New York bankers, who there by secured for themselves a practical monopoly of legal investments for savings banks in the state of Connecti- cut so that the prices of these invest ments were under the control of this 1TY7 e. the best interests of the state to admit other bonds, provided the security back of them was equal to the bonds which had been admitted in the two previous sessions of the legislature, and the bonds favored by the committee are all equal or superior to the fourteen bonds made legal last session.
 'The admission of these bonds has also been opposed by the New York firm of bankers, who now control 24 out of the 26 bonds named in the last two sessions, representative of this firm attending all the hearings given on the bonds during this session of the legislature. It is apparent that if is very advantageous to the firm having these bonds for sale to prevent any more bonds being admitted as legal in
  sion of additional securities would sub ject them to competition in the sale of the bonds now owned and controlled by them.''
 The statement then goes into detail as to each bond to be admitted. It is signed by all the members of the con- nittee, except Mir Blodgett of Canaan and NIT Bicknell of Meriden, house chairman. MT Blodgett would not sign because he did not believe the Worces- ter and Connecticut bonds should be admitted. The members signing are Senator Nash of Westport; MT Thomp- son of Orange; MT Hallock of Derby: Afr Mead of Greenwich, Mir Putnam of Killingly; Mir Staub of New Milford end Mir Jennings of Saybrook.
 Hartford, May 27.-The judiciary committee sent to the senate this morning a report changing the 5000 Tf1y7f% au daafh hv nnO1iUnna0 f0 o1Iail