The Bridgeport evening farmer., 1913-02-28
To Stop Barter
 In Bank Charters
This Is the Purpose of a Pro- posed Law Which Has the Approval of the Leading
 Bankers of the State

for banking institutions and place the prerogative in the hands of the std bank commissioners, was offered be- fore the committee on banks at the capitol Wednesday afternoon. The bill had the backing of the bankers of the state and Meigs H. Whap1es president of the Connecticut Trust and Safe Deposit company, read a statement which was signed by him self, Frank P. Fur1ong vice-presi- dent of the Hartford National bank; A. Spencer, jr., president of the Act ma National bank; W. D. Daskam, treasurer of the Stamford Trust com pany, R. J. Walsh, president of the Greenwich Trust company, and H. c. Warren, president of the Merchants National bank of New Haven, all rep resenting the Connecticut State Bank CTS association.
 Bankers Statement.
 The statement of the bankers which explains the object of the bill is as follows:
 'tThe bill for the incorporation of the nature of general law, which shall govern, as far as possible, and also simplify, the method of forma- ton of new banking institutions in this state. It has been frequently asked by legislators why some gener-
 
 could be eliminated the nuisance of considering great mass of special charters which are requested at every session of he general assem- bly,. The bill before you is drawn for that pur- pose, and with that object in view is presented by the Connecticut Bankers association, through their committee. It is intended to embody the best feat ures of similar enactments by other states, principally Massachusetts and New York.
 At the outset it should be realized and understood that there are very few, we think only three, states in the Union which permit special charters to banking corporations. And cer- tainly in all the newer states it is d feature embodied in their constitution that all banking corporations naust organize under a general law, which places all banks and trust compan- .ies on an equal footing as regards privileges and pwers.
 <. This bill before you has had the careful consideration of several com nittees of tn State bankers associa- ton, and a thorough reconsideration by special convention of the members of the association, and after many amendments has met their approval by a unanimous vote.
 The provisions of the bill, while conferring perfectly adequate and Iib- eraI powers and privileges, such as are necessary to banking corpora ton, provide that all of the banking institutions hereafter incorp oratedf shall have no specific privilege over any other, neither those already estab- 1ished nor those petitioned for, and does not override or permit any aevas- ions of the state law in regard to banking, which is frequently, in fact quite usually, a feature in many of Toa aha daf od fn ha legislature.
 s'After serious and earnest consid- eration, and without any selfish thought of self-interest in the matter, the entire body of members of the Connecticut Bankers association, and which includes all but three of the banking corporations of the state, comprising all national banks, state banks and trust companies, but, of course, excluding swings banks, have approved of this bill and believe that it is in the interest of the general welfare, and especially of the financial welfare of he state of Connecticut that It should be enacted. It provided an orderly, systematic method of incor- poration within the law, and in har- mony with the banking laws of the state. It is perfectly adequate for all banking and trust company purposes and does not infiict any hardship nor
 
 lyl chartered. It is in direct line with the recommendation of the present governor and of two previous gover- nors. It will certainly minimize and relieve both the work of the bank of the legislature and of the legislature itself.
 With the firm belief that the en- actmenf of this bill will systematize banking privileges in this state and relieve future legislators from bur den long endured, and that it is for the best interests of the financial we'll being of banking interests, it is re- specdulIy submitted for your consid- eration and action.''
 Put a Stop to Graft.
 Senator Jarvis McA1pine Johnson, chairman of the committee on bank ing, said the proposed law would put a stop to brokerage business in bank charters. Senator Johnson said he had introduced the bill at the sugges- ton of a number of bankers and said that it was one of the intents of the bill to eliminte the granting of special charters which gave a wide range of powers, all the way from those of banking to building a street railway. The barter and sale of such charters ] had been one of the greatest sources of graft according to him. These char | ters in the past he said had been | sold as commercial commodity and 1 ne SpOk0 or one instance without T. ing the specific case, where there had | been sale of a charter for $1O,OOO. |
 Some objection to the bill was pre- sented by Secretary of State Phillips | and Judge N. c. Downs of Stamford. | Their objection was applied to a sin gle clause in the bill and it was point ed out that this could be satisfactor- fly modified. Judge Downs thought the clause in relation to the bank having the right to 1s- sue charters, eff they shall find that public convenience and necessity re- 1uires the esta blishment of a bank" vas too drastic and that it would tie he commissioners, which was evntra- " to the purpose of the bill Neces- ;ity was never a measurable unit he 'aid, and it was his opinion that if submitted to a court there might be m interpretation that there was not a !