New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-04
BANK ACTION THIS WEEK
Expected IN Senate-Returm of
Resolution to Assembly Feared.
rBy relerraph 10 The Tribune.l ]

IBy Telegraph 20 The Tribure-l
Albany Feb. 3.-Action will be taken by the
Senate Finance Committee next week, In all
probability. which will settle the fate of the
investigation of the State Banking Department
The committee will meet on Tuesday. and at
that meeting, according to the present plans. 1t
will take UP the resolution which passed the
Assembly, although Senator Malby has said
that he could see no reason for immediate action
on it.
The 1veliest speculation is aroused here as to
what report the committee will make. The res
olution will not be passed by 1t in its present
form, its supporters fear. They are on the look
out for some alteration which may cause long
delay or make necessary its going back to the
Assembly.
One scheme Of the opponents of the investiga-
ton is the introduction of a resolution on Mon
day night calling on Governor Higgins for the
charges which filed with him against Su-
perintendent Kilburn in the of the German
Bank of Buffalo and the Merchants Trust Com
pany of New-York. These would be submitted
to the Finance Committee. according to the
plan, and that body having gone over the Gov
ernor's action on the charges, would find that
there no basis for reopening the cases.
Then. taking as their reason that no charges
existed against the Banking Department or It's
superintendent. it would refuse 10 report the
resolution for the Inquiry favorably.
The attitude of those Senators who work
ing hard TO prevent investigation of the
department is curious. Beginning with much
censure OF the Governor because he was pro-
tecting one of his favorites," and critcising him
harshIy for playing politics." they finally
using his misrepresented utterances a shield
for themselves. The Governor recognizing the
strong demand that exists for an investigation
and feeling that public confidence is not likely
to be restored until there has been thorough.
impartial inquiry. is making plain his entire In
dependence of any effort to hold UP the resolu-
tion or prevent the inquiry.
Many communications have been received by
various legislators from banking concerns argu-
ing against the inquiry on the ground that the
public would lose faith in banking houses, no
matter how stable, and that il prominent banks
with wide connections were drawn into the
Investigation, a panic would be likely to result
which would engulf not only the smaller coun
try institutions, but might harm large city
banks. Certainly. the tenor of these communi-
cations is money would be tied up. and business
In great part come to a standstiu because of
the investigation" These arguments will be used
with all their force in the Finance Committee
to prevent the favorable reporting OF the reso-
luton.
The real reasons which would operate with
the Senators to make them shut off the tnvest-
CATION however, are not altruistic motives OF
this sort but fear lest certain conditions which
concern alike Albany and Wall Street should be
disclosed Stories OF stocks carried on margin
for members of the legislature by trust COM
panies ard of accounts maintained by banks
and trust companies similar to the Insurance
"vellow dog funds have been in circulation
here this week to the great disturbance of the
peace OF some of the Senators.
such disclosures however. would not occur as
the primary result of investigation. The
resolution calls for inquiry into the methods OF
the State Banking Department and the banking
laws and the disclosures If any come are more
likely TO be along the line of political misdeeds-
the use of political influence in affecting the
workings of the department or It's agents