New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-21
CONN. BANKS Up IN ARMS
APPEAL TO LEGISLATURE.
Nezc- 7 ORR Brokers accused of 1T
tack on Bond Purchase Las.
fBr TELEGRAPH TO THE rR1BUNE.l


New Haven Conn May 20.-The Savings
Bank Association Of the State, made up of fifty
five of the ninety banks issued public state
ment to the legislature this afternoon charg-
ing that paid lobbyists from New-York bond
dealers had succeeded in passing through the
Committee Banks a bill legalizing the pur-
chase of the securities Of certain almost I'M
known corporations as to give these securi-
ties market value which they do not now pos
sess. Coming from such source as the Savings
Bank Association, the charge has been the SEN
sation in legislative circles of the year.
The law iegalzfng the purchase of bonds by
savings banks in this State is very conservative,
and permits on the list only the safest Of in
vestments- The stock of the New-Haven road,
for instance, is allowed because OF its fiuc-
tuatons. This year a bill was presented, which
the bank vigorously opposed, adding to the
list a number of bonds about which the bank
men had grave doubts The outcome Of the
three months fight over the adding Of these new
bonds to the Connecticut law came to-day,
when a statement issued by the Savings
Bank Association to the following effect:
At this session a combined attack Of foreign
bond dealers, attorneys and lobbyists has been
made upon our conservative law. Brokers in
New York. who are loaded down with bonds
which they cannot sell. very early in the session
secured the services OF the most noted lobbyists
in the State. have had representa- tiVeS of their
firms here at the Capitol for weeks, and have
succeeded by combining their forces in securing
a joint report several bills, with the expecta-
ton that while fearing each other, they may
when united secure favorable action by this
General Assembly. OF all measures submitted.
on only have the proponents dared to
stand alone and ask its passage on its own
merits or dement's. Under such circumstances
have failed to secure the defeat of the bills
in the committee before which they we're heard,
and by a majority report the passage of substi-
tute bills is recommended. We protest against
their passage. If these bills should pass there
wi he nTlE II GO iG
peal ali laws designating investments for saw
ings banks, for with the bonds now recommend
ed by the committee the statute will be but
deception and q fraud . snare to people who
hold trust funds in this State ard elsewhere. and
4 reproach to the State.
This statement is signed by F. J. Kingsbury.
president of the Savings Bank Association, and
by eight well known bankers. among them Pres
ident Hart, of the Society for Savings, of Hart
ford: President W E. Atwood. of the New
Britain Savings Bank. and President Robert A.
Brown. of the New-Haven Savings Bank
No names Of New-York dealers are mentioned
except that of Vernilye & Co. who, the state
1nent says, purchased S1000000O of a certain
bond and have never sold any of them
The securities tabooed by the bankers, but
reported upon favorably to the legislature by
the Committee on Banks, the general mort
gage refunding bonds of the Terminal Railroad
Association OF st Louis, the first mortgage
bonds Of the St. Louis, Iron Mountain anu
Southern Railroad Company. certain bonds OF
the Buffalo and Susquehanna Railroad Company
and bonds of the Louisville and Nashville Rall-
road Company.
Out of the nine members Of the committee only
one House Chairman Bicknel, of MerldeT. re
nor+ar against the rnea sure The bill was held
IN in the Senate to-day by Senator Tracy OF
Waterbury. and will come up as the special
order of the day tomorrow noon
with regard to the charge that Vern1ilye &
Co purchased 100000 worth of a certain
bond and have never sold any of them George
D. Mackay Of Nc. 20 West Sixty-ntnth-st-' d
mariner in the firm declared to a Tribune re-
porter late last night that he was IN entre
ignorance Of the whole affair
.cvernnilve & Co." he said. have never made