New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-07
ST'EVEN,S BILL HERRING.
Representatives Of Banks and Trust
Companies at albany.
by Telegraph to The Tribune


Albany, Feb. 6.-The hearing before the joint
committees on banks of the Senate and AS
sembly this afternoon on the Stevens bill COM
polling trust companies to maintain Is per cent
reserve brought out the bitter opposition which
some Of the banks and trust companies felt
toward each other. Incdentally-and this was
rather the feature of the hearing because of the
present agitation for investigation of the
Banking Departmental furnished an unex-
pected Endorsement Of Superintendent Kilburn.
Defending the course of trust companies in their
investments I'm securities, ". ]. WEIGH, presi-
dent of the Binghamton Trust Company de-
clared that Superintendent Kilburn always knew
Of such investments.
The State Department of Banks knows what
these investments are" declared Mr.. Wech.
The Superintendent has abundance of abiI-
ity to find it out, and what he can't find out
about trust company isn't worth knowing"
The trust companies, which represented
by John E. Borne, of New York, president Of
the Trust Companies Association, maintained
that the reserve required was too high in
sideration Of the character of the deposits much
Of which Were dormant" All trust companies
kept reserves, it said. The banks argued
that it was unfair to them, and unsafe for de-
positors of the trust companies. that no legal
reserve be compelled.
The argument against the bill begun by
Trust companies are the savings banks of the
rich. the wealthy firms and corporations. Their
great development and growth in the last ten
years is because they have supplied a public
want. Ten years ago the trust companies In
this State numbered thirty eight, with a COM
bined capital OF s2s,060000 and deposits OF s307-
| 100000, To-day there are eighty-one trust COM
panies. with $64000,00) Of capital, over 81 OOO-
100000 in deposits and with 100000 depositors.
Banks permitted to use their CAPITAL in
! their business and to loan il, but by law the
| capital OF trust companies must be invested in
| either first mortgages of a certain character or
| in United States. New York State or municipal
bonds issued within the State. OF the $64 900 900
bonds is deposited with the Superintendent OF
| Banks. Is that not a reserve2 This bill pro-
poses to place in enforced ideness in the vaults
| or trust companies approximately S75000.000 in
! cash. Such procedure would curtail the powers
! 81 credit Of the commercial community Of the
| State by sS00O00.000
Alfred II. Curtis. president Of the New-York
State Bankers Association. led the argument
for the measure He said few trust companies
| declare dividends even exist If forced 10 con-
| fine themselves to the business OF a trust COM
| pRny. pure and simple. He read booklet OF
| the Lincoln Trust Company to show that IL
! differed little from bank He admitted that
| trust companies had put many banks out OF
! business.
! President Nash Of tire Corn Exchange Bank
| Of Ncw-York said trust companies had grown
! ana thrived without the hand OF the law to
/ curb them save in minor details. He told how
| all but two three Of the trust companies os
| Ncw-Hork had seeded from the New York
! Clearing House when the banks demanded that
! they carry cash reserve. IL was he said. ne
| lack Of proper guarantee on the part of trust
| companies that should he objected to.
| They not ballasted." he said. we want
| something to reassure in view OF the runous
rates Of interest that they ADVERTISE