Although the Community Trust plan has been adopted and is now in operation in thirty-three cities in the United States with trust companies as trustees holding funds estimated at several hundred millions for charitable, educational and community welfare purposes through gifts, living trusts and testamentary pledges, the New York Community Trust represents a broadening of the principles of co-operation and administration underlying these projects. Whereas in most other cities the Community Trusts and Foundations have been initiated by individual trust companies as trustees the New York idea is to enlist all of the trust companies as well as National banks having trust powers. In respect to operation, custody and conservation of funds, distribution of income and requirements of administration, the New York plan follows in its essentials the provisions as originally embodied by Judge F. H. Goff, president of the Cleveland Trust Company, in establishing the Cleveland Foundation five years ago and which already has gifts, trusts and bequests to the credit of the fund amounting to over $100,000,000.

While it is hoped to eventually enlist the co-operation of all the trust companies of New York City the resolution and declaration creating the New York Community Trust has thus far been accepted by formal vote of respective boards of directors of the following trust companies: Equitable Trust Company, Columbia Trust Company, New York Trust Company, U. S. Mortgage & Trust Company; Irving Trust Company, Title Guarantee & Trust Company, Hudson Trust Company, Metropolitan Trust Company, Manufacturers Trust Company, Franklin Trust Company, Kings County Trust Company, Mercantile Trust Company, Fidelity Trust Company, American Trust Company, Hamilton Trust Co. and Commercial Trust Co.

Summary of Objects

As stated in the formal announcement of the creation of the New York Community Trust its objects may be summarized as follows:

(1) The preservation of the principal of charitable gifts.

(2) The prevention of obsolescence in charitable gifts by making possible without court action, delay or expenses the transfer of the income of a fund from a charity which has outlived its usefulness, to some active public benevolence whose scope shall be as nearly as possible within the original desires of the donor.

(3) The creation of a stronger and better community feeling and the attainment of broad community purposes through the use of the unrestricted income from gifts, both large and small.

(4) The securing for established charities and for investigation and research, of funds which might not otherwise be obtainable.

(5) The assurance to the donors, to the charity, and to the public, of the highest degree of care and responsibility in the investment and reinvestment of the principal of charitable gifts through the co-operation of the trust companies, adequately equipped and authorized to act under the law.

(6) Opportunity for men of small means with no direct descendants to make contributions to a common community fund.

(7) The opportunity for men of large means after having cared for their own, to provide that the residuum of their estates shall remain intact, the income to be used for public purposes.

Preamble to Resolution

The preamble of the resolution and dec.ae ration of the New York Community Trust further sets forth:

"WHEREAS: The histo of bequests for educational, charitable and benevolent purposes has monstrated that the welfare of mankind would have been promoted and greater good accomplished if the terms of such trusts had permitted of change in the particular objects originally chosen or in the channels selected for the application of the funds. for the reasons (1) that the passage of time, the progress, of civilization and the increasing concern of the State or govern

mental authorities in matters affecting public welfare are constantly rendering trusts created for specific objects superfluous and literal compliance with their terms unwise, impracticable or impossible; and (2) that while in some jurisdictions the courts are clothed with power to direct that such trusts shall be administered in a manner most effectual to accomplish their general purpose, without regard to and free from any specific restriction, limitation or direction contained therein, the necessary court proceedings always involve delay and expense and are frequently contested; and

"WHEREAS: Never in the history of modern times has the welfare of mankind more urgently demanded the encouragement and promotion of gifts for educational, charitable or benevolent uses in accordance with a plan which shall (1) meet the changing needs for such gifts with flexibility in the power of distribution, (2) afford an opportunity alike to persons of wealth and persons of moderate means to make their several gifts to different trustees of their own selection for such purposes more effective by providing for the distribution of the income and/or principal of all of them as if an aggregate fund, (3) provide for the selection of the beneficiaries of such gifts by an impartial and changing committee of persons chosen for their knowledge of the educational, charitable or benevolent needs of the time, and (4) safeguard and provide for the permanent security of the principal of such gifts; and

"WHEREAS: It is recognized that public confidence in such a plan and in the security and impartial administration of gifts made under it will be enhanced and assured by the concerted action of the trust companies in the city of New York hereinafter named and such other trust companies or financial institutions authorized by law to accept and execute such trusts, as the Trustees' Committee hereinafter provided for may approve in writing and from time to time permit to join with them by the adoption of the following resolution and declaration and by filing a certified copy thereof with the director appointed as hereinafter provided."

Administrative Provisions of Community Trust

Then follow the clauses of the resolution and declaration adopted by the various trust companies. These set forth the terms of acceptance of gifts; desires of donor respected; appropriation of net income to certain educational, charitable and benevolent purposes; illustrative purposes: appropriation of corpus; trustees to pay income as and

when ordered by a Distribution Committee; procedure in case of failure of Distribution Committee to appropriate; constitution appointment and classification of Distribution Committee; appointment of members of Distribution Committee and provisions respecting the duties of trustees and other safeguards of administration.

The Distribution Committee will consist of eleven citizens and residents of the community as defined in the trust. This committee is appointed according to classification; one member by the president of the Chamber of Commerce of the State of New York; one by the mayor of New York City; one by the president of the New York Academy of Medicine; one by the president of the New York City Bar Association; one by the presiIdent of the board of trustees of the Brooklyn Institute of Arts and Sciences; one by the senior Circuit Judge of the U. S. Circuit Court of Appeals for the Second District and five members by the Trustees' Committee, none of whom shall be executive officers of the trustees. Appointments are made from one to six year terms. The Attorney General of the State is authorized to inspect the books, vouchers and records of the trustees and Distribution Committee.

Alvin W. Krech, president of the Equitable Trust Company, has been elected chairman of the Trustees' Committee, and Frank J. Parsons, vice-president of the United States Mortgage & Trust Company, acting director of the trust fund.

New System of Clearing Stock Transactions

One of the first steps in meeting the demand for reform of stock market settlements and securing greater stabilization of the call loan market in New York is the inauguration of the system of clearing stocks through the new Stock Clearing Corporation which is gradually beginning to funttion at the New York Stock Exchange. This plan is still far short of the method of periodical settlement which prevails in England and continental European countries, but it represents a real step in the direction of scientific clearance of stock transactions.

Demonstrations of the workings of the clearing system at the New York Stock Exchange are now in progress and it is expected that the system will be in full operation very shortly. The operation now is limited to clearing of security balances as shown by balance tickets of night clearing branch of the Stock Clearing Corporation.

An entirely new conception in projecting publicity along national lines is embodied in an advertising campaign which has been inaugurated by the Old Colony Trust Company of Boston. Most of the so-called "national advertising" conducted by some of the larger banks and trust companies has been predicated upon a direct appeal or special features of service. The Old Colony plan, however, is a departure in national advertising beyond anything which has heretofore been attempted or carried out by any one or a group of banks and trust companies. It is an elaboration of the idea that the prosperity of a banking or trust company institution is a reflection not alone of community but also of sectional prosperity.

Instead of advertising to business men in New England the Old Colony Trust Company is advertising for and on behalf of New England business and industry. The company takes the view that the greater the business of New England, the greater the business of the trust company. It means the advertising of New England to the rest of the country. The campaign is also well-timed in view of the approaching Tercentenary celebrations of the Pilgrims' Landing which will extend into 1921 and which will center attention upon New England.

Through selected magazines and newspapers the Old Colony campaign sends forth the message to every part of the United States as to New England's supremacy in textiles, in leather and machine shop products; her maritime advantages, civic forwardness, pioneership in education and superiority of skilled workmanship. An unusual feature of the series of Old Colony Trust Company advertisements in national magazines is the inclusion of color inserts to run for nearly half a year. The illustration on the opposite page shows a group of the advertisements in the Old Colony national series.

For the investor, the shipper, the manufacturer, New England holds great possibilities; and in addition there is the lure of her historic shrines. Of all this the Old Colony campaign is taking the greatest advantage.

Outstanding events in early New England history will be presented as well as the beginnings of New England industries. Hence the series of advertisements will present not only dramatic events in the early history of book-making and iron founding, but also better known incidents in early New England history, such as the signing of the Mayflower Compact and Governor Bradford's snakeskin retort-incidents which emphasize New England probity, New England fibre and New England love for law and order.

Besides newspapers the campaign will run monthly in Harper's, Scribner's, Century, National Geographic and Atlantic Monthly. Also the leading Review publications will carry the campaign regularly, including the Review of Reviews, World's Work, and North American Review among the monthlies, and Literary Digest and Outlook among the weeklies. This list together with the Saturday Evening Post is expected to cover thoroughly all substantial people of affairs and also to wield a powerful industrial influence.

In appearance there has been sustained effort to give simplicity and distinction. Historical accuracy has been assured by the taking of all possible pains in both illustration and text. The quality of the art work in this series is somewhat out of the ordinary and the design of the Saturday Evening Post double page advertisements in particular exhibits a rare combination of simplicity and originality. In placing the advertisements as well as in the preparation of "copy" the Old Colony avails itself of the exceptional facilities of the H. K. McCann Company.

The advertisements are carefully arranged and modified to suit the various classes of publications and nearly every advertisement contains an invitation to visit New England's historic spots during the coming twelve months. A well printed brochure is offered, illustrated in color and entitled, "New England Old and New"; and another booklet has also been advertised under the name, "The Spirit of America," containing twelve public documents which mark the course of our national life-the expression of the collective spirit of a people.