Putnam patriot., 1914-09-18
POWER OF BANKS
 IS DISPUTED
BankCommisSioners Hold Banks May Enter Federal Reserve
CHARTERED TO BUY STOCK
Win ccnstrue Powers Liberally # Used ConserVstively-Let Of Commissioner Holt
 Takes Issue.


 Special Hartford Correspondencel.
 Hartford.-The state bank eemmis- siOners are of the opinion that 1t s entirely within the powers of banks and trust companies in Connecticut 10 take stock in the federal reserve banks. and thus become members eff the association. This is iu opposi tiOn to the opinion given out by At torney General John H. Light last February. in which Judge Light in formed William G. MeAdoo. the chair man of the reserve bank organization. that in his opinion the banks of the state are prevented from entering the reserve under the present statutes The bank commissions al the time were of the opinion that Judge Light had construed the law under a false light. but refused to protest his deei- sion publicly. Several of the banks and trust companies, however, have written individually to the commis- sioners asking for advice on the mat ter, and in each case they have been informed that they seemed to have all power to act as they pleased. Presi- dent N D. Prince of the Connecticut State Bankers Association is the lat est of those to ask the advice of the commissioners, and Bank Commission CT Fred P. Holt wrote in reply to him: These charters grant power to buy and sell all kinds of property and the banks, as a rule. have exer- .cised this power conseryatlvely; Buying bonds and some few buying stocks with the knowledge and con sent of the banking department. It is the intention of this department to construe the powers of banks and trust companies organized under the Act at present in effect to be as liber- al and as conservative as those or ganized under special charter. Now, inasmuch as there is no statute law governing the purchases and sales that may be made by banks we hold that under their charters and because of common custom they may purchase stock in other banks and should con sider purchase of stock in federal reserve bank q proper one.
 Attorney General Light based his opinion to the contrary on the fact that no specified power has been giy- en, and held that no power can there fore be implied He wrote to Chair man McAdoo at the time as follows s1n reply to your inquiry, l have to say that our state banks have no ex- press power to subscribe for stock of the federal reserve bank. and 1t Is very doubtful whether they have the implied power to do so. Our su- preme court has said that no powers can be implied. except such as are necessary and proper to carry into ef- feet the powers expressly granted
 Bridge Lands Transferred.
 Title to all the land on the water front of Hartford held since the com pletion of the bridge across the Con nectieut River in 1906 by the Con necticut River Bridge and Highway District Commission. was transferred to the city Of Hartford. The amount paid for the land was s5000 900 in notes of S25,000 each. which. by order of the common council, are to bear 4 per cent. interest. The purchase price is to be payable to the commission, one of the notes to be payable one year after date and one note each succeed ing year for twenty years from the date of the transfer. Any or all of the notes will be payable at the op- ton of the city, upon two months notice. The deed, transferring the title to the city, contains an express right on the part of the owners 10 build a footbr1dge over the tracks of the New York, New Haven X Hart ford Railroad Company, north of Nor gan street, into Riverside Park, at any time This right and others per taining to the property were fully set forth in contract execnted be- tween the railroad and the bridge commission January 3, 1905. Presi- dent Morgan G. Bulkeiey represented the commission in the transfer and the city was represented by Corpora ton Counsel John w. Coogan and by Assistant Corporation Counsel Will jam J. Hamersley. The purchase by the city was authorized by the voters of Hartford at the spring election.