The Bridgeport evening farmer., 1911-05-04
BUILDING AND LOAN OFFICIAL
 IS IMPORTANT
Opposition to AbOlishing of This Office-He Should
 Get Busy

| the investigation of state commissions and the inter-relation of the func- ! tiOnS of the same of which Senator
 Frank Woodruff is chairman, held its | first hearing yesterday. These matters were assigned;
 l. On recommendation of his excellen- l cy the governor, regarding the aboli- | tion of the office of building and loan commissioner; making the commits | sioner of domestic animals bureau | of the board of control of the Con- necticut Agricultural Experiment sta | tion: making the commissioner Of do- | mestic animals a bureau of the state board of agriculture.
 No one spoke for the abOliShment of the office of building and loan conn., missioner.
 JUDGE HAYNES AGAINST IT. Frank D. Haynes, states attorney
 of Middlesex county, spoke against the abolishment of the office or its consol- idation with the savings bank com- mission. MT. Haynes said the ques- tion of economy does not come into the matter as the cost of the exam1na- tion comes from the companies ex-
 amined. Meigs Whaples of the Con-
 necticut Trust and Safe Deposit Con- pany had told him that when the mat
 ter was up before all the banks of
 the state were canvaSsed and ninety
 seven out of 117 responded to queries
 and 012nIy-HVG were OppOS00 lO dbOA-
 ishment of the office.
 Mr. Haynes saif he represented the Middlesex Banking Company, DOT
 tion of whose business comes under the building and loan commissioner. He asserted that the savings banks commissioners and examiners have all they want to do now and that is why the savings banks are opposed toe aboIishment. The mortgage invest ment examiners are busy also. These examiners should not only examine the books but should look into every phase of the banks, mortgage in- Vestment companies and building and loan companies Merely to certify that the books are all right does not do any good. They should examine the securities.
 THE GREATEST MENACE.
 (Which is the greatest menace to the investors of the state? asked MT. Haynes, 'the savings banks, which are uniformly managed and which are hedged in by laws, or the invest ment companies who write inviting advertisements and send out smooth tongued solicitors who promise ad lib?' 'The latter, by long odds," de- clared MT. Haynes.
 To consolidate any of these offices will mean still more superficial ex- animation. COMMISSIONER WEBSTER KNEW
 HIS JOB.
 In the time of Governor Mclean Morris c. Webster, then building and state and made an examination of the conditions of a mortgage investment company that was worth something. The methods pursued by savings banks and the mortgage investment com- panies are widely at variance and an examiner who is familiar with the books of one would be at sea on the books of others. MT. Haynes argued for the extension of the duties of the examiners so that they would probe | into securities and the methods of doing business. It makes little diff ference to the public that the ledgers are correct There is a plenty to do for the commissioners in these three l fields without any one conflicting.
 To Senator Woodruff Mr. Haynes declared that the examinations are | now more or less perfunctory, dealing l almost wholly with the books He | said the banking companies and the loan companies would be glad to pay | the extra expense of a complete ex- animation that would get to the root of things.
 Judge Haynes urged that restriction be placed upon the foreign investment | companies which come into this state. |
 WHAPLES EXPOSES SCHEME.
 President Meigs Whaples of the 1 Connecticut Safe Deposit company of | Hartford, and chairman of the 1egis- | lative committee of the State Bankers | association, opposed the abolition of | the office. The bankers, he said, had | thrashed out the matter thoroughly. l He doubted that the governor was | thoroughly posted in the matter. The | building and loan associations lure hnt inv ncyfn I@xr l. and easy terms. This does | not include the Middlesex Banking company. which has deposits of s6,- 6O0,0oO, and has capital stock.
 MT. Whaples said so far as he knew Morris c. Webster was the only building and loan commissioner that he knew who made any attempt to earn his salary.
 The banker told about the dangers of those irresponsible loan associa- tions and he recalled the history of the unfortunate Cooperative Savings society. Despite the splendid man. agement of Judge Holcomb as receiv- CT the loss to people of moderate means was $265,000. This was a lot of money among class of people who could i'll afford to lose it. Mr. Wha- ples described the perfunctory man ner in which bank examiners now perform their duties He said the -oISiSh NOiiRoAiCo oIC WdIlluS CuC- l side the state for the chance to come in. The examiners should be made to examine into the liabilities, and the law provides for the extra payment of the examiners.
 MT. Whaples said there is bound to be deficit from the Cooperative Savings and Loan society which No- ole E.. Pierce is handling now. Instead ,f abolishing the office of building ind loan examiner the law should make him perform his duties. He is paid $3,000 per year, which is a good salary. He said the original inten- ion was to have the office an adjunct Q the bank commissioners and at that .ime the latter declared they did not lave time to attend to it. Certainly ( hey are buster now than they were hen. (
 Mir. Whaples said this legislation is ( ! part of a scheme to have a super 7isor of banking who will sit in his [ office and send out a lot of cheap and ' inefficient deDuties to make the exam- | nations. The Robin investigation in { esults of this system, when the exam ners were bribed to make false re- ports. :,
 MAKE HIM EXAMINE.
 Tn conclusion MT. Whaples declared here should not only be a building nd loan commissioner, but he should 'e made to do his duty, and make an examination of the securities. He as- cd O thic iS haip |