The Providence news. (Providence [R.I.]) 1891-1906, 1905-05-02
FREEZE OUT FOR
SMALL TRUST CO. s
Continued from page one.

''It is one OF the most drastic measures
OF the kind ever attempted" said we'll
known financial man today and II
passed would have the money to loan
situation IN the hands OF just few big
trust companies.
Those trust companies are buying mp
savings banks and the first thing they
do is call in the mortgages and foreclose
all along the line. IL the money Is not
forthcoming. Very few banks are lend
ing money. and but for a few small loan
and trust companies and real estate con-
Germs the people would lose their prop
erty.
"If this bill passes with this drastic
rider tackled on the end, placed there
since the public hearing
CONCERNS ALL WHO OWE.
.'It is a matter that concerns every man
who has a mortgage or debt on his prop
erty," said Col. Isaac l.. Goff OF the cen
tral Trust company when a News re-
porter called 10 see what he thought OF
the measure, Substitute A for an act
in amendment OF and In addition 10 chap
ters It's and l79 OF the general laws and
providing for the appointment OF bank
examiner and his duties" !"
1.-The bank examiner part OF IL Is well
enough" he added, but the part which
puts the smaller trust companies that are
doing a legitimate business We are I'm
liquidation f. not right. That portion OF
the bill which was stuck I'm should nave
q public hearing held upon IL. II Is too
important 10 be pushed hurriedly through
the house In that manner.
II frankly say that the passage OF that
bill would drive this company out Of busi-
ness and occasion considerable loss 10
the gentlemen who are stockholders.
Until recently the Union Trust com
pany has done business on capital OF
$3.50. 900. and no one has questioned its
eolventcy or it's right 10 have the name
Of trust company. Just because 81 has
recently Increased its capital stock by
million or so does not imply that another
trust company could not do business as
legftimately and he as worthy of the title
with lesser capital than 100000.
FREEZE NEW ONES OUT.
"A number OF trust companies created
by this legislature or during its term
would be likewise killed by IL.
The Peoples Loan and Trust company
81 one OF the places that VIII be affected
by the bill, II II is passed, and the New
England Trust company. with $3.50, 900
capital is another where the trust COM
pany' In admittedly chiefly in the title.
The latter concern could not do busi-
ness under the law. II II passed, without
a change Of charter or an increase OF
capital stock"
Col. sam~ Pomeroy Colt was very
busy when The News man called. but the
reporter was referred TO Representative
Waldo NJ. Place, also an officer Of the
Industrial Trust company. who said that
the object OF the provision OF the bank
examiners bill defined trust company
and that IL further provided restrictions
on the use OF the name of trust company
for concerns not doing a strictly trust
business. that Is. the business OF holding
trust estates and managing them for the
benefit OF owners and heirs
MUST WIND UP AFFAIRS.
For a city OF Providence's size sb00.0
le none too large an amount TO limit IL
70 and the bill provides that companies
not having that amount OF capital must
Iiquidate before a year is up That Is the
intent OF the provision OF the bill now
pending"
BY inquiry amongst the bankers and
larger trust companies II developed there
Is an understanding among them upon the
bin and that they are agreed that 1t Is
O measure TO be supported.
At tho Manufacturers Trust company
Col Studley was reported TO be out OF
the city but one OF his representatives
said he believed the bill n good measure
and that IL was designed 10 safeguard de-
positors who might be deceived by the
name trust In connection with that OF
banking company. Right around here
there are a lot OF concerns having the
name "trust company that do no trust
business except that they trust borrowers
DO A LOAN BUSINESS.
They are simply loan offices. money
lenders or small banking institutions and
not deserving the name OF trust COM
panies.
AT the Union Trust company tne re-
porter was referred 10 Mr.. Marsden j.
Perry who absolutely declined 10 be In
terviewed He said that as he was presi-
dent OF the bank he had better not say
anything In regard to the bill at this time
Mr. Fitzgerald. representative from
Pawtucket. says the bill as recommended
s. far too sweeping and has some amend
ments ready TO offer.