The Hawaiian gazette., 1911-03-10
SCRAP ON OVER
BANKING BILL
FOUR TRUST COMPANIES TAKE A
COMBINED wHAoK AT
THE MEASURE.
(Fr0m Thuraday'a AdverLiser.l

the teudte cuAmDeI FetteEuhg alNtIHuOn
when the ways and means committee Of
the upper chamber held a public hear
ing on the Brown Banking Bill which
seeks to extend the business of bank
ing companies to some of the points
now monopolized by the trust com
panies.
The trust companies were there in
force to meet and beat the bin if pos
sible. Senator Cecil Brown, father of
the bill, and E. Tenney Peck, cham
pioned the cause of the measure against
the onslaughts of representatives Of all
the trust companies of the city.
Others present included W. A. Kin
ney and ]. r. Gait, representing the
Hawaiian Trust Company; Ex-Governor
George R. Carter, who, though an officer
Of the Hawaiian Trust, stated that he
was there as an individual; R. H. Trent,
of the Trent Trust Company, R. w.
Single and w. R. Castle, representing
the Henry Warehouse Trust Company,
and Robert R. Reidford, manager of
the Bishop Trust Company.
Brown made the first speech of the
afternoon in advocacy of his measure
and was answered by w. A Kinney
who compared the proposed law with
the existing law and other laws in other
States, principally the banking act Of
California.
He referred to what he termed the
loose construction of the new bill and
stated that he did not believe the bill
provided enough safeguards for the pub
llic. He mentioned recent incident
where he said the control of $250,000
had been taken away from Hawaiian
corporations and placed in the hands Of
2 Massachusetts, trust company.
The discussion narrowed down at
once without beating around the bush
to the point that the trust companies
: didn't want the banks business ex-
5 tended and the banks were Jealous of
their near relations, the trust COM
panies. The point was so evident, or
a at least appeared SO, that both parties
9 fastened to arise simultaneously and
e deny it.
G Kinney stated that he was not there
/ antagonizing that sort of legislation
= but he spoke only for a frmer and more
! strict banking law. Attention was also
called to the laxity OF. banking examina
If ton and the examination of trust com
o panies. Senator Fairchild, chairman OF
the committee, stated that he had been
= furnished with a list of the last
= examinations by Treasurer Conkling and
!. there seems to be some legislation in
y the air concerning this point also.
Carter arose and asked Brown as
i quickly as he could whether the First
! American Savings Bank, of which Sen
= ator Brown is an officer, would have
. amy objection to the Hawaiian Trust
Company doing banking business.
Certainly MOI" answered Brown
emphatically.
Tenuey Peck then took the floor and
Jumped ON the trust" force with both
feet He stated that Kinney's remarks
4 regarding the loose construction of the
Il bill applied with equal force to the
TRUST company law.
copy of the session laws which he
had been lingering impatiently for hall
e an hour. This law says that the
e trust companies shall not do genera
q banking business and then goes aheaC
and gives them specific rights to d.
g business confined everywhere else tx
It banks only.
"sThey can receive deposits and pa.
l. out deposits ON check, they can bu,
n real estate and personal property ant
&c hold it for speculation and sell it when
% ever they want out of the trust com
8. pany funds, they can buy stocks AM
!. bonds and sell with the market mp o
u down just as they want, they can pur
- chase and sell bills of exchange
= ooh, mol - came general chorus o
. denial from the trust corner.
= "Ehgo exclaimed the speaker, get
~ ting ready for more hot action, :"
bought a bill of exchange myself iron
a. trust company last week.
There was a unanimous chorus o
somewhat sheepish smiles in the trus
company corner.
: az guess / made mistake when
/ became party to that transaction sal
Mr.. Peek with a long face. How
ever,' he added, with increased vigOl
gentlemen TINS Is NOT a BIdhu jury
rWell, we want all of the evidenc
Sc we can get, /" suggested memoer 0
u, the committee, but Tenney Peck wen
As on with the list of the naughty thing
Al that trust companies could do Ehil
banks ought TO have a monopoly on.
n Single then retailed the history q
d. the trust company law.
be fMr. Gait there was the father an
y. was the mother Of this bill, f"
stated, with the geniel smile that
arranged for campaign purposes an
NJ which never came of, Gin 1908.
a. passed the senate committee with a
of amendment in the second paragrap
~ which related to a feature Of the bus
or ness.''
he explained further that It passe
e. the senate with another amendment an
ct also passed the house Much to the
he surprise, however. when they receive
fs, a copy OF the hnai bill signea BY Go
au arnor Carter, that second paragraph ha
been dropped aud the third read
IN the place Of the second, "a mistake