New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-30
SCARE IN WALL STREET.
DUE TO BRACKETT BILL.
Governor Denies 1t VIII CurtdiL
Business of Foreign Com pdnies.

It was learned in Wall Street yesterday after
noon that Governor Odell had signed earlier in
the day Senator Brackets trust companies bill.
and 1t was announced from sources opposed to
the measure that the bill signed would cur
tail greatly the operations of a large number OF
foreign corporations having their Offices in this
city.
The striking out Of the words "other than
national bank or a moneyed corporation" which
originally appeared in the bill. 1t was contended.
meant that no foreign corporation whateves
could hereafter Gas the act is to take effect i'm
mediately) transact any business lender Of
money or a transfer fiscal agent. a large
law firm, IL was said, sent a message to the
Governor on Thursday night. asking for hear
ing on the bill, and number Of corporations
Yesterday conferred and decided 10 do the same
thing but when they telegraphed TO Albany to
ask the Governor for the hearing they were In
formed that the bill had been signed
A statement issued from the source referred
TO said in part:
affected by the bil various trust companies
which have branch Offices in this state FOR the the
great English and Canadian and other foreign
life Insurance companies formed under tho laws
OF other States which loan money through thetr
loan money on bond and mortgage; the title COM
ponies which guarantee titles and mortgages. an9
fo5eiRn corpcratons Of any kind which send money
to New-York to be loaned security Of stocks
and bonds pledged.
Representatives Of English Canadian and
other foreign banks. life insurance realty and
title guarantee companies having branch offices
in this city entertaiEed, apparently, little ap-
prehension Of any adverse effect on the business
from the new law. While II was agreed that no
adequate estimate Of the bills effect would be
forthcoming until Monday. 1t seemed generally
to be conceded that the bill aimed at and would
affect only certain trust companies which have
no charter in this State.
while I have not followed the bill closely"
said Charles r. Henderson. director Of the In
ternational Banking Corporation. Il do not be-
lieve for an instant that it will affect the status
of the international Banking Corporation. Had
such an effect been contemplated. I am confident
that Governor Odell would never have signed
the bill. He is far too sensible. 1 do not ex-
pect however. that what effect the bill may
have will be realized until Monday
The vice-president of downtown trust COM
pany said yesterday afternoon:
The attention of the officers Of company was
called to this amendment some time ago, and II
tions under the Banking law, which Is a separate
act, the Insurance law. which Is scparaie
act. nor title companies nor any other institutions
not under the Trust Company act. The law ~ IN ~.
New-York as to trust companies provides that ~ they
must have certain amount OF capital GSVlto IN
them. Within the last two OF three years there
have been organized In other States small trust
companies capitalized 100000 or less which have
opeyed branches in New-York State ostensi5ly Tor
transacting q registration business, but also Tor
taking deposits Their checks were made payable
In New-Jersey or at some New-Eork bank. with
this alternative feature the companies were thus
virtually doing a New York business. The Clearing
House some time ago refused 20 clear such checks,
and | understand that the Clearing House ohlcerS
favored the passage OF the bin which has just be-
law.
The New-York law, it now reads. 1t was
said yesterday by another banker is practically
identical with the acts in New-Jersey Massa-
chusetts Pennsylvania, Ohio and Rhode Island.
Its object is 10 compel foreign corporations
which come within the scope of the Trust Com
pany law to comply with the New-Nork law,
and il means simply that ne foreign trust COM
pany can do the acts prohibited by It's various
clauses.
Governor Odell signed also two other impor-
tant bills Of Senator Bracket affecting the busl-
ness of fduciary corporations. These bills are
aimed to curtail the business of corporations the
titles of which are misleading owing to the pres
ence therein of the words Trust Ranking
Guarantee" Investment" and the like.