New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-07
CHANGE THEIR BILLS.
YIELD TO CRITICISM.
Introducers Modify DueU Measures,
Including One on Insurance.
rBy Telegraph TO The Tribune


Albany. Feb. 6,-Yielding to criticism Of the
srope Of the bills from members Of the Assembly
committee on Banks the introducers of the
DueI measures. permitting savings banks and
trust companies TO take personal or corporate
bonds secured by real estate mortgages,
amended their bills to-day. An amendment also
was made to the insurance bill in the same series
which was criticised permitting investment in
debenture bonds. prohibited by the Hughes
form laws, designed to remove this feature
The orig1natoTs of this legislation came into
che light to-day when Charles H. Young filed
with the Secretary of State his designation as
legislative counsel for the Westchester and
Bronx Title and Mortgage Guaranty Company to
uress the four bills introduced by Assemblyman
DUEL. Mr.. Young declared that all the measures
we're IN the interests Of the title companies. and
we're framed jointly by himself and Walter
1indner, Of counsel for the Title Guarantee and
Trust Company. It was Mr.. Lindner who or
tginated the insurance bill. This fact did not
lessen the doubts of some Of the legislators re-
garding the wisdom Of any such infraction Of
the Hughes laws as the one proposed by this
bill.
Since the disclosure by The Tribune of the scope
Of the DuelI bills they have been scrutinized
closely by many legislators here and are regarded
somewhat with suspicion. This was manifest to-
day when the bill affecting savings banks and
+he other affecting trust companies came up for
hearing before the Assembly Banks Committee.
Messrs. Young and Lindner explained thu bene-
III which the title guarantee companies would
derive in the extension Of their business, but
several members Of the committee pressed for
further explanation of measures. and after OBJ
tections had been raised that the bills wouH
open the way for transactions in debenture
bonds. Nj Young said he would amend the bills
49, 1G,s y
plaining his measure later. he said that his
amendment had prohibited the investment in de-
benture bonds. Its exact text was not obtainabe.
Assernblyman Wainwright. chairman of the
Committee on Banks, said that his understand
ing Of the amendment was that It would compel
the institutions to take all the bond issues Sc
cured by a mortgage or none OF them; that Is.
compel bank or trust company 10 purchase all
the debentures instead of only part Of the issue
or none or them. This same amendment Mr..
Young said. he had proposed TO the DUEL Insur
snce bill. which a hearing VIII be held next
Wednesday night
More interest has attached TO the DUEL in
surance bill than TO any Of the others, because
81 represented the first attempt to amend seri-
ously the reform laws passed by the insurance
Investigating committee. While e contained the
same principle applied to insurance companies
IS the other measures of the series applied to
savings banks and trust companies, II sought TO
take out Of the law a safeguard inserted there
with much care by Governor Hughes and his
fellow workers. Since its Introduction It has
been viewed with constantly increasing disap-
prevail by members Of the investigating commit
tes and other legislators who sought TO con-
meet 1t in some way with the big insurance
companies.
When to-day they heard that the Title Guar
sntee and Trust Company was interested in the
measure they believed that the connection was
established. They recalled that the insurance
investigation showed the close business rela-
tons existing between insurance companies and
The title company, including common directors,
and the holding OF five thousand shares Of title
company stock by the insurance companies. In
vestigation showed that relations were close in
turn between the Title Guarantee company and
the Westchester Title company, which directly
stood sponsor for the measure. Individual
directors of the Title Guarantee hold some two
thousand shares Of stock in the Westchester
company which is an offshoot Of the Title Guar
antee. Clarence II. Kelsey, president: Frank
Bailey, vice-president; Charles s. Brown and
Frederick Potter, directors Of the Title Guar
antee. are directors in the Westchester
AR. Young indignant when told that this
bill was suspected Of coming from the insurance
companies, or at least having their approval He
said that nobody but the two little companies
were Interested IN any Of the DUEL bills. This
might Indirectly benefit some insurance COM
pany, he said. He wasn't sure that IL would,
but II was being introduced and supported be-
cause IL would directly benefit his clients and
the public. Any improper latitude in the direc-
ton Of debentures or collateral bonds would be
removed by the amendment he had presented to
the banking bills and suggested for this insur-
ance bill. He realized fully the meaning and
extent OF the measure, he said, having gone over
i with Mr.. Lindner, and he didn't think any
lemon" had been concealed in the measure by
EuDterranean methods.
Senator Carpenter is president Of the West
chester title concern. He said to-day that Mr.
Young, who general counsel for the COM
pany, was acting for IL in pressing the bills af-
fecting banks, but not TO the best Of his knowl-
edge IL urging the insurance bill.