New-York tribune., 1903-05-22
NEW BONDS FOR BANKS.
CHARGES DISREGARDED.
Connecticut Senate Passes BIZ
Which Stirs Sa1ings Banks.
rpr TELEGRAPH TO THE TRrBUSE-l

New-fIayen Conn May 2l.-Charges were mace
m the Connecticut Senate to-day that pronnlei'
brokerage firms in New-York City mao IoI ~
pooi' TO pass through the legislature OF TINS 0'de
q nil admitting certain Western railroad secufi-
ties as savings bank investments ana nau ~
trtbuted $4,000 for legislative purposes i" O
90 get the bill passed. In an interview iater oe
tor Ayling reiterated this statement IN the mos
rorcfbie manner and named the members oa C
noon as J. p Morgan & Co. Redmond heTI " ~
and Vermilye & Co.. all Of New-forh- 0eiia'o. ,
svlng on the floor Of the Senate, lntlhla'eu uia'
II was common talk that the Committee on BANKS
hsd been Influenced" by this financial i1'eIes',
.,5 asked Senator Nash, of Westport. chairman ol
the committee. If this were so senator ->@si w
not answer the question The bill was pasSeo "
vote OF 16 TO G. o.
The incident was the most dramatic that mas 0c-
,,,rre5 IN the Connecticut Legislature in years
YESTERDAY afternoon the Savings Banks Association
Of the State issued a public circular nahihs' al
less explicit terms the same allegations FolCeu ~
dav by Senator Ayng. The Senate was IN d tuI
,oofl OF excitement half an hour. during Whlch
Senators Tracy OF Waterbury: WILCOX. OF beIlii
and Fuessenich. OF Torrineton. insisted on soIie
exnlictt statement Of the committees reasons ioi
favor.ng the bill Senator Smell was the only one
of the sixteen Senator's VINO Noleu iOi 'N' ~
ure that spoke for Il.
In attacking the committees report 0e1a'
ArIins said that the passage OF the OH sIIHpH f
-n,,ted a few corporations to use THIS state ds d
cumming ground for their securities. NO one hdu
,-z Gov these bonds 70 be admitted as savings
hant Investments but Wall Street brokers' VINO
have the securities and can neither sell IneIi Nol
get their own OF Western States TO stamp Iheh oS
good. -.
.x,irs ..+bat this bill has been put through mere
at the instance of pool that has been IoIle" ~ u
Eep-York stockholders, who have sent s'o'Oc' uP
here bv a paid representative 10 De useo AL 'iI4'
legislature 10 pass the measure nave TINS on one
authority of Mr. Redmond Of Redmond. Kerr d
Co OF New-Tork who has admitted this TO De
true" -, IT,. -.
The hill rrovides for the addition to the list or
investments in railroad bonds permitted 10 Co4'
nect,crt savings banks the following securluss: Inc
General Mortgage Refurdirg Bonds OF IerInlIai
Railroad Association. Of St LOUIS; certain ms
mortgage railroad bonds OF the 81 LOUIS tloIi
Mountain and Southern Railroad Company; certain
bonds Of the Buffalo and Susquehanna Railroad
C,on,pany: certain bonds Of the LoulsVlAe anu
Nashville Railroad Company
senator Ayling later stated that his allegations
could be substantlated, and named the members
~ the alleged pool as given above. adding that
7 p Morgan & Co. and Redmond Kerr & Co were
behind the bonds Of the ST Louis Terminal Com
many md the Louisville and Nashville, while FeF
1niIve &. Co were behind the St Louis Iron Noun
tain and Southern road. which is to run from
Kansas City TO New-Orleans.
A representatiye Of verTnilye & Co, who has been
connected with the negotiations. said this after
noon:
The whole situation Is this: Out Of the twenty
six railroad bonds permitted as investments to sav-
ings banks in this State twenty-four are
This year some other brokerage houses WlsIlso ~
enter competition with the banks ana oHeIeo If+
edged The Savings Banks Associat ton. tied down
20 Goldman. Sachs & Co. have raised pTosesa; ..
but were outweighed by the committee who oeneve
the field of investment for savings banks ougnt 20
be Increased. That is all there is TO IT There
Naturally was pool. but there has been no tam
pering with the committee
Clarence E. Thompson. New-Haven broker and
han
members of the committee. Goldman Sachs d
CO have had monopoly OF the business .i IN d 0I4s
holders out Every one of the bonds admitted to-
day BY the Senate is gilt edged
Senator Nash who was charged with having been
Influenced by New-Tork lobbyists, said:
deny strenuously that have been Influenced by
To- byfsts or by any otner lntereSt 10 Sole toL t
rnents after long and careful investigation
When the charges against his firm had been
brought TO the attention Of George ". Perkins, Of
] p Morgan & Co. by a Tribune reporter, last
night, Mr. Perkins said:
The Connecticut State legislature is always max
ing charges of this description. J. p Morgan &
Co have no interest in such concerns es you men
ZION, and therefore know nothing at all about the
matter.
Henry S. Redmond. Of Redmond. Kerr Co. said
last night at Tuxedo the report absolutely
false He had never been in Hartford. he declared.
and had never met. either indirectly directly,
any OF the persons mentioned In the dispatches.
He said the report might originated from op-
position by some persons to the listing Of new
7e through fear that they might depreciate bonds
already listed.
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