Norwich bulletin., 1913-06-28
STATE BANKING LAW
 IS NOT DEAD.
Discovery Made That Commissioners
 Can Still Grant Charters.

l ings on applications for charters for l new banks and trust companies and believe they have the power either to grant or deny the applications will
 come as surprise to bank men and l politicians who followed the bill through it's stormy career in the gen. eral assembly, says Hartford des- patch. It has been generally believed that the bill. though enacted and sign ed by the governor. was hung up on
 reef by an amendment of Representa- tive Frank F. Healy of Windsor Locks.
 who took all discretionary powers
 from the commission and provided | that charters should be issued. if the
 the act. Lo, when the engrossed bill comes to light there is found an
 amendment attached. made by Senator i E. L. Isbell, which had been lost sight 1 of in the scuffie, and which re-enacts
 the clause stricken out by House Lead
 CT Healy. The law. although somewhat | mutilated, seems to give the banking
 commission the powers in the first place intended-that of hearing appli- 1 cants for the chartering of new banks | and trust companies or refusing to grant them, if in it's opinion public | convenience and advantage did not de- | mand the new bank. The right Of ap- 1 peal to the superior court is included 1 in Senator Isbells statement. and is i the purpose of its being.
 1 Wanted to Eliminate Politics.
 The original bill was among the | earliest reported by the committee on
 banks, of which Representative w. H. | Hall was house chairman. It is un- derstood that the bill originated with | the Connecticut Bankers association, | which desired to take the chartering | of banks outside of politics, and the | main argument on the bill was that | this state was one of three which had
 no general banking law. When 1t was
 reported in the senate it was made l the order of the day twice before final | action, but eventually came up for ac- 1 tion. Senator E. w. Hooker intro duced an amendment identical with 1 that which MT. Healy later put through | the house, but the Hooker amendment ! was defeated. Senator Quinn intro l duced an amendment which cut the amount of capital required to start 8 bank squarely in half. This amend
 ment was adopted. Senator Isbell, mo- ticing that the bill carried no provision
 for an appeal from the decision of the
 bank commissioners, introduced such an amendment, which was adopted. It added Sections 12. 13, IA and Is to
 the bill. which as printed in the files stopped with Section 12: This act shall take effect from its passage l The amendment was also printed in
 the files as No. APP. Other amendments
 
 senate finally passed the bill on April l 29, and the house received 1t with other ! senate business on May 1. After 8 pre- l carious stay on the calendar for half a month the bill went to the foot of the i calendar on May Is. The proponents 1 succeeded in making it the order of | the day for May 28, and that noon it | was discussed at length.
 Representative HeaIys Reasons.
 
 his reasons for objecting to the bill,
 which in the main were that to put the power of granting charters for banks into the hands of a commits sion composed of the bank examiners and the state treasurer was to court the danger of banking monopoly. He said that if the commission was to have the power of granting char ters, rather than the general assem- ply, it should be instructed to grant | charters to all persons who had the
 necessary capital paid in, and to that
 purpose amended out of the bill the words which provided that the com | mission would grant the charter pro- viding public convenience and advan- tage demanded 1t. His purpose, of
 course, was to kill the bill, but when | the amendment was adopted the bill
 was passed. The senate amendments
 had been adopted without discussion, | W
 what they contained. , The senate promptly concurred with l the house in the Healy amendment,
 and the ernasculated bill went to Gov ernor Baldwin, every one confidently | expecting that he would withhold his
 signature from a bill which provided 1 for the wholesale chartering of banks. | Someone whispered in the governor S rear of the Isbell amendment, and the bill was signed. becoming a law with l
 the convention of the Connecticut 1 Bankers association at New London 1 Wednesday. it became known that the 1 bill is apparently as good as before 1t l had been altered.
 Its Provisions.
 1 The bill provides that nine or more | persons may organize bank or trust 1 company. The capital stock to be | issued in towns of less than 15O0O in habitants shall be at least 5000 in l cities of between 15,O0O and 5o,0OO in
 ,habitants not less than S50,00O and 1 in cities of more than 5o.000 not less | than $10o,00o. After various instruc- l tions regarding the application for a | charter, the publication of intention l to organize in certain newspapers the l ratification of existing banks. and the l hearing by the bank commissioners, ] the law says: Said banking commits | sion shall hear all persons who appear
 
 | ing commission here is where | the public convenience and advantage came out-"shall issue certificate of | authority to the persons provided for | in this act.' Continuing to Section 8, When such certificate of authoriza- = | ton shall be filed, the persons named | therein and their successors shall 1 thereby be authorized to commence 1 business as a corporation in such town or city"
 l The lsbell Amendment.
 l And coming to the IsbeH amend 'ment of which no glimmering of l knowledge seemed to exist in the
 house. which intended to defeat the bill by the adoption of Leader Healy s amendment, one reads:
 If majority of said banking com I mission shall find that public conven- | fence and advantage will. not be pro- noted by establishing bank, or trust l company. in such town or city said
 banking commission shall. in writing, notify the persons interested in the organization of such bank or trust 1 company of such decision.
 "18. Any person interested in the | organization of a bank or trust com ] pany, as provided in Section 1 hereof
 and any haNr @c trust company to