New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-26

BANK FIGHT HAS MORAL
Conflict O0er Bills Legalising Bonds
to Cause Reform.

Nev-Haven. Dec % (SpeciaD.-The furry over
the legalizing of the Southern Indiana Railway
bonds for savings bank investment in this State
called general attention to the present system
of passing on such bonds by, Connecticut legis-
latures. The discussion the subject has been
general since the situation was made public. and
from number of sources have come definite plans
for a radical change for the future One of the
leaders in the last Assembly said this morning
When this bill and the bill egazing the bonds
of the Connecticut Railway and Lighting Company
made by friends of botn measures that action be
delayed until the legislature could look more care
was the usual courtesy to grant such q delay, the
In the while outside influences got to work
and produced decided change in the feelings of a
great many of the members by one argument or
another. When the matter finally came up there
not to hack p 6 BANK an the @no
refusing the bonds. The vote for the committee
Guided the committee. Those of US who voted for
the committees report did so because we thought
that that committee knew its business
One of the definite suggestions that have been
made to make impossible future situation of the
kind that has just stirred up the State is that the
Committee on Banks should be more carefully
of most important business to handle; but ii has
not aTays 6en made up Of n vino are f6 s
leading members of the committee were bankers.
sentative Thompson. OF the remaining seven mem
bers from the House. two Were manufacturers in
small towns. one was a cigarmaker, one carpen-
ter. one contractor another merchant ana an n
other farmer. 1t is stated that when the matter
of the disputed bonds UP of the mex
perenced members of the Bank. Committee said
that he did not know how to vote from personal
knowledge. but that he intended vote out
slider who knew about bank matters had suggested
to him The information is to the effect that this
outsider member of the lobby who was in
terested in seeing the bonds put through. 1t is
proposed to raise the standard of this committee in
the future if the present system of deciding on
bills of the kind should be continued.
There will be, however, strong effort made at
the next Assembly 1t is reported among bank men
TO day. to change the present system. 1t is felt
that the present arrangement is entirely and
indefensble, inasnuch committee reports are
shelved and bills passed simply in the interest of
bond houses. There may be movement started
to remove the decision such matters from the
Assembly altogether and place il with the bank
and the Bank Commission.
A local brokerage manager said this morning that
while the particular bonds under discussion were
proba bly, good investment and would not en-
barrass purchasers there such assurance at
the time the bonds up for discussion in Hart
ford. He stated that at least one Connecticut
banker had made personal inquiry into the bonds
in question and had decided not to purchase them
himself the time when the State Legislature was
making them legal investment for State savings
banks The agitation over this matter however,
itself little with the actual value Of the
securities in question.