Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-05-14
STATE HOUSE.
Law Relating to Investments
for Saving Banks.
Change Was Made by Legislature
Regarding Street Railway Bonds.
General Farnhann Issues New Uniform
Regulations for National Guard.

The law relating to the investment
of funds for savings banks so far as
the purchase of bonds of street rail-
roads of this and other states was con-
cerned. The law now reads as follows:
Savings banks and institutions of
savings may invest Tin the bonds of
street railroads constructed in this
State prior to April twenty-seven,
eighteen hundred ninety-five, and in
the bonds of street railroads in this
State constructed after said date and in
the first mortgage bonds Of any COM
pleted street railroad in the states of
New Hampshire, Vermont, Massachu-
( sets. Rhode Island, Connecticut, New
York. New Jersey, Pennsylvania, Mary
land. Ohio. Indiana, Kentucky, Michi-
gan, Wisconsin, Minnesota Iowa. Hi
nois, Missouri, Kansas and Nebraska;
provided that in the case of street rail-
roads constructed in this State after
April twenty-seven, eighteen hundred
and ninety-five, and in the case OF
street railroads in the states above
| named, an amount of capital stock
equal to thirty-three and one-third per
cent. of the mortgage debt shall have
been so paid i'm and expended in addition
upon the road evidenced by a certificate
of the railroad commissioners of the
State where the road is located, filed in
the office of the Secretary of State of
this State, tina said percentage has been
so paid in and expended in addition
to the amount of the bonded debt; pro-
yided, that IN such of the above states
as have no railroad commissioners hav-
ing supervision of street railroads the
bank examiner of this State may ascer-
tain the facts and if they meet the fore
going requirement may file certificate
thereof with the secretary of State,
and all the expenses and compensation
of the bank examiner for such service
shall be paid by the railroad company
seeking to make its bonds a legal in
vestment under this section, whether
the same are admitted or not.
The last clause was inserted because
in some states the street railways are
not under the supervision of railroad
commissioners, and hence there is nc
authority having power to certify to
their value for investment. This is true
of Ohio and Indiana and some other
states.
In compliance with this provision,
Bank Examiner Timberlake has been
requested to inquire into the value of
six different street railway companies,
some of them located in the state of
Ohio and some in Indiana and will soon
| begin his Investigations. The first re-
ouirement is that the railroad COM
panies must certify that at least 80 lis
per cent. of the mortgage debt has been
raid in in cash, and expended upon
the road in addition to the amount of
the bonded debt. After this statement
is received Mr. Timberlake will not
certify that the bonds of said road are
safe investments for the Maine savings
banks until after he has made Jan eX-
animation of the property and books
of the company This work will be
done by Mr. Timberlake, who will be
assisted by Hon. George F.. Macomber
of Augusta, a well-knoWn expert in
street railway values.