New-York tribune., 1905-02-17
IMPORTANT BANKING BILL
Regulates Investments for State Saz,4
ings Institutions.
IBr TELEGRAPH TO THE TnrsUSz.I

Albany Feb done of the most important hanL.
ing measures Of recent years was introduced n
day by Senator Stevens. The measure IS designed
to regulate investments Of all savings banks IN TIA
State Senator Stevens said tonight that the bin
had been prepared 70 carry out the suggestions
made by Governor Higgins IN hts annual message
In regard to the passage OF general laws for the in
vestment OF savings banks deposits. rather than
special laws in regard TO the same
"The act begins" said Senator Stevens. ~
changing the law affecting investments IN bonds OF
cities outside OF the State of New-York. and sun
stituting for the present section. which names
thirty-three cities general provision which names
city. but contains very strict provisions as To
population. financial standing and geographical
locations OF the cities in the bonds OF which say
ings banks may in the future invest. The new act
legalizes the bonds OF all the cities which now
legal and legalizes the bonds Of the following
cities: Manchester. y. H; Lawrence. Lynn. New
Bedford and SomervilIe. Mass; Bridgeport and
Waterbury. Conn; Hoboken. y. j.; Erie. Harris
burg and WiIkesbarre, Penn. Wilmington. Del.
Dayton Ohio: Indianapolis and Fort Wayne. Ind;
Kansas City. Mo-; Omaha. Neb-. and Oakland ana
San Francisco. Cal.
.'The second part OF the bin relates 70 invest
ments In railroad mortgage bonds. subdivisoa
A of Section OF the present law relating 70 IN
substantially unchanged. except that the require
ments are made the same as InGse Ior -a4IiEoaes
done to NeW-York State corporations
Subdivisions b, c and d remain unchanged *
bonds are secured by mortgages which were msds
prior TO the present year. In this way al ral.
road securities that are now legal Viii contilus
legal; but any new mortgage bonds issued by such
railroads can only become legal investment pro-
vided the companies and the securities comply .
the general requirements for savings banks Ehiea
the act contains
Subdivisions z and F are new and contain ths
general requirements Of stability which a railroad
must have in order TO have its bonds a legal n
vestment for che savings banks. These require
ments are: First, that the railroad company must
own at least five hundred miles OF road situated in
the United States. IL IL does not own i've hun
dred miles the gross earnings per annurn must he
in excess of S10O00O00; second its gross earnings
must for five years have equalled at least hvs
times its fixed charges; third, its capital stock
must be at least Onethird Of all its authorized IN
debtedneSs deducting from such authorized f-
debtedness bonds reserved 10 retire prior ortgags
debts fourth, for five years It must have paid
in dividends amount equal 70 per cent is
entire capital stock. Nearly all the railroad com
panieS whose mortgage bonds now legal h.
estments comply with these conditions. and ths
only new road that would be added at once Is tha
Chicago. st. Paul Minneapolis and Omaha Railroad
Subdivisions @, H and apply TO underlying
first mortgage bonds or mortgage bonds OF leased
roads,.