With assets under administration amounting to nearly $89,000,000 the National Trust Company of Toronto, Canada, occupies a position as one of the strongest and most efficient financial and fiduciary organizations in Canada. The fact that the past year was the most successful in the history of the company, both from the standpoint of increase in volume of business and earning capacity is a special tribute to its management, considering that Canada, like nearly all other countries engaged in the war faces unusual problems of economic adjustment.

The National Trust Company, as its title indicates, is truly national in the scope of its facilities and activities. To American corporations or individuals requiring financial agencies or representation in any part of Canada the National Trust Company offers a service which is unexcelled. Besides its main office in Toronto it has ably conducted branches in Montreal, Winnipeg, Edmonton, Saskatoon and Regina, besides maintaining direct connections with the mother country in London, England. The scope of the company's business is also such as to afford the best kind of facilities in carrying out fiduciary instructions, in investment matters and other financial relationships.

The National Trust Company, Ltd., has a record of 22 years of constant growth and expansion of service. The strength of the company is reflected in the last annual report which shows aggregate assets of $88,941,252, representing an increase of $8.849,581 during 1919 and embracing $3,300,670 standing to capital account; $5,975,171 to guaranteed trust account and $79,665,410 to estates, trust and agency accounts. The capital stock is $1.500,000; reserve fund, $1,600,000 and special reserve for new branches, $50,000. Net earnings during the year 1919 amounted to $281,

140, equal to 18.74 per cent. upon capital, or 9.06 per cent. upon combined capital and reserve. These earnings together with $12.182 brought forward from the previous year into profit and loss account, enabled the company to pay $150,000 in dividends to shareholders at the rate of 10 per cent. per annum; to continue its policy of writing off the company's office premises to the further extent of $50,000; to subscribe $9,500 to repatriation and other charitable funds; provide $24,200 for Dominion Income War tax and to carry $59,623 into the profit and loss account fer the year 1920.

The annual meeting was presided over by the president, Sir Joseph Flavelle, Bart., who paid a warm tribute to the memory of the late Mr. Z. A. Lash, K. C., LL.D., who was identified with the National Trust Company from its inception and rendered invaluable services as director, vice-president and counsel. He also referred to the election of the Right Hon. Sir William Thomas White. P C., K. C. M. G., to a seat on the board of directors.

A more detailed review of the operations of the company during the past year was presented by the general manager, Mr. W. E. Rundle, who designated the past year as the best in the history of the company. Mr. Rundle also dwelt upon international aspects of the company's work and surveyed the situation in regard to Canada's sources of supply of money for mortgage loans. Announcement was also made of the proposed establishment of a Staff Pension Fund. Following the election of directors for the ensuing year the board elected Sir Joseph Flavelle, Bart., as president; Messrs. E. R. Wood and W. E. Rundle, vice-presidents, together with the appointment of members of the Advisory Board at Winnipeg.

The latest important and most interesting announcement in regard to the adoption of a profit-sharing system is that recently made to the 500 assembled employees of the First Wisconsin National Bank of Milwaukee by the president of that institution, Mr. Oliver C. Fuller. On frequent occasions in the past Mr. Fuller has not only sounded an advanced interpretation of the spirit of modern co-operation, but he has also put his ideals to the practical and successful tests, formerly as president of the Wisconsin Trust Company and more recently as president of both the First Wisconsin National Bank and the First Wisconsin Trust Company, representing the consolidation of the largest banking and trust company interests in Milwaukee, effected last year.

The profit-sharing plan adopted by the First Wisconsin National Bank is one of the most liberal in its operation that has yet been established in this country by either banking or industrial corporations. It is the result of comprehensive study of such plans which have been in operation not only in this country but also abroad. The salient provisions are described by Mr. Fuller in commenting upon the plan as follows:

"We believe that this is one of the most striking plans in the country," said President O. C. Fuller. "We are not asking employees to make additional savings and giving them a share of the money so saved, but we are giving them a liberal share of all our profits, no less than 25 per cent. of earnings after taking out only 8 per cent. on the capital employed. We believe that merely allowing 8 per cent. on the capital in the business and giving one-fourth of all that there is left to our workers is an example which may be followed by many of the largest concerns in the city.

Employees to be Partners

"The First Wisconsin National Bank has no labor problems in the usual sense, but

this policy was adopted to give our employees a real share in the business. They will share the earnings of good and bad years, and in fact be real partners in the business. This was a voluntary offer intended to give our workers a simple plan which would appeal to all.

"We have spent six months in working out the scheme. More than 50 of the best known profit-sharing schemes have been carefully studied to get the best features of all. Our studies even went back to the first English profit-sharing plans tried three hundred years ago. Out of all this we have evolved a plan which we think may serve as a model for other industries and be of material help in solving the labor problems of the country.

"The plan provides that profits after taking 8 per cent. on the capital employed in this $100,000,000 bank, be divided as follows: 25 per cent. for the workers and 75 per cent. for the bank. The profit sharing does not go into effect after a long period. We begin to pay profits June 1, estimating as nearly as we can for the first six months and paying the remainder of the profits of the year on Dec. 1.

Means 20 Per Cent. Raise

"The profits will be paid in two large sums each year, so that a payment of several hundred dollars can be used for something permanent and worthwhile. Some will make payments on their homes with this money, we have found by inquiry; some will pay mortgages, others will make worthwhile investments. We believe that profits will permit of payments of 20 per cent. or more on salaries. This would mean $400 on a $2,000 salary, or $600 on a $3,000 sal

ary.

"Put in another way, an increase in salary of 20 per cent. by means of sharing profits, would mean more than two months' additional pay each year."

"Net profits" as defined for the purposes of the First Wisconsin National Bank plan

Competent Representation

In the Pacific Northwest

Affiliated with

THELOLD NATIONAL BANK of Spokane

COMBINED RESOURCES

$25.000.000

consists of the remainder of the earnings after deduction of operating expenses and adequate provision for accrued taxes, reserves for depreciation, accrued and possible losses and other necessary reserves. "Capital employed" means the average for the year of aggregate amount of capital stock, surplus and undivided profits accounts. After providing for stockholders, equal to 8 per cent. of capital employed the balance is divided 25 per cent. among employees and 75 per cent. retained by bank, after deducting annual contribution to the funds of the Progress Club, maintained in the interests of employees. To participate an employee must have been with the bank for a period of two consecutive months prior to semi-annual payments June 1st and Dec. Ist. Adoption of the plan contemplates that bonuses be discontinued, but is not intended to take the place of normal and proper increases in salary.

It is worth while culling the following remarks from an address made by Mr. Fuller to executives and employees of the First Wisconsin National Bank and the First Wisconsin Trust Company last fall.

"Solomon said: 'Seest thou a man diligent in his business, he shall stand before kings. The days when men must kneel in the presence of kings have passed away, but dili

gence and integrity are as requisite today to the development of that high character and the attainment of that high position which entitle a man to recognition as a leader of men, as they were requisite in the days of King Solomon to entitle a man to stand before kings.

"In this great free country of ours, where every man and woman may be king or queen of his or her own domain and need bow the knee to none except Almighty God, and bare the head only to the Stars and Stripes, symbol of our freedom and independence, the only limit to the height any man may attain is the limit of his own energy and ambition.

"Let me assure you here and now that in the First Wisconsin National Bank-and whatever I say of the bank applies with equal force to the trust company-diligence and integrity will be recognized and rewarded, and the employee who combines these qualities with initiative and intelligence, may class himself and, in due season, will be recognized, as part and parcel of the management."

H. B. Grimm has been promoted to vicepresident of the St. Joseph Valley Bank of Elkhart, Ind. His success in establishing the new business department of the bank has earned wide recognition.