Los Angeles herald., 1910-02-05
POSTAL SAVINGS
BILL DENOUNCED
WESTERN SENATORS CLASH
OVER BANK MEASURE
HEPBURN SAYS IF ENACTED
SCANDAL WILL RESULT
Carter, in Charge of Proposed Law,
Protests Against Arguments of
Opponent, but Makes No
Formal Reply
Associated Press1

WASHINGTON, Feb. 4.-Senator
Hepburn today completed his criticism
of the postal savings bank bill in the
senate, but aside from his speech little
progress was made in consideration OF
the measure.
1t will be before the senate again to-
morrow, and Senator Garter, who has
charge of the measure, expects vote
not later than next Thursday.
Mr. Hepburn declared the bill had
been drawn so loosely that if enacted it
must inevitably result in scandal. 1t
should, he said, be safeguarded more
carefully than some past legislation,
and he used as an illustration the cor
poration tax law, which, he said, al
ready had been proved unsatisfactory
Declaring his objections to the bill,
he said. there was no provision for Sc
curing deposits; that in providing for
secrecy the bill would prove a shield to
dishonesty, and that in the end it
would be found to be impossible to find
investment for the postal savings fund.
He contended that 1t was the duty of
the committee on postoffiees to bring in
a safe and proper bill, and said he
would not support the bill as long as
it placed the government in the bank
ing business, as he eontended the bill
did. He declared the bill to be mere
skeleton, and he advised the committee
to take it back and put some ''sinews
and flesh on it,
Mr.. Hepburn spoke at length regard
ing the possible abuses that might grow
out of the secret methods provided in
connection with deposits.
Carter Enters Protest
Mr.. Carter protested against this
line of reasoning, saying that no legis-
lation proceeded on the theory that the
average man was crook.
would the senator have the names
of all depositors publicly announced?'
he asked.
IT want an open and candid conduct
of the business Mr.. Hepburn re-
sponded.
would you advise the posting of the
names of depositors?' asked Mr.. Car
ter
The Idaho senator responded that he
had not reached that point, and Mr..
Carter said:
you soon will reach it If you keep
on"
Another interesting colloquy between
the western senators ran as follows:
Mr.. Hepburn: "Out of what fund
would the interest be paid?"
Mr.. Carter: THE bill contemplates
the turning over of all surplus earnings
for that purpose"
Mr.. Hepburn: Suppose there are
none?"
Mr.. Carter: "Then it will deyolye on
the board of trustees to devise means. -
Mr.. Hepburn: 1.-THE bill devolves too
many things on the uncertainties of
the future"
In conclusion Mr.. Hepburn pro-
Inounced the bill to be utterly vicious
| and predicted in the end it would be
| necessary to pay the depositors by ap-
preparation out of the national treas
ury.
In the discussion Mr.. Smith of Mich
igan made the prediction that If the
bill became a law politics would be-
come football, and the rate of interest
would become fruitful source for un-
scrupulous office seekers.
Mr.. Garter made no formal reply to
the criticisms, merely asking to have
the bill printed In "the Congressional
Record, which is the best possible refu-
tation of the representations made by
it's enemies