ful corps of drainage engineers, and proposes to do for these highly productive lands more than Nature would have done had her efforts been left unchecked during another thousand years. Meanwhile, the soil deposits continue beyond the great river's outlets to the sea and Louisiana, every year, is slowly extended nearer and nearer to the Central American coast.

The new bonds are issued by authority of the State for the account of the drainage district asking for improvement funds. The drainage district is created by the Governor, through the appointment of a District Drainage Commission of taxpayers, following an election at which a majority of the acreage had been polled in favor of it. and after the State Board of Engineers had approved the plan, both as to its practicability and as to its economy. Then the bonds are sold, the disbursement of the returns safeguarded, and the work commenced.

Huge dredges are used to dig a wide navigable canal around the drainage unit, usually 5,000 or 10,000 acres in extent, to

of the Constitution exempts such bonds from all municipal, county and State taxation. Article 281 provides that the maximum tax in any one year must not exceed $3.50 per acre, which leaves an ample margin, and also provides that such tax shall be co-ordinate and on equal footing with State, municipal, school, parochial, levee and all other taxes. no one of which shall be collected unless all are collected; that a taxpayer who becomes delinquent becomes delinquent for all taxes jointly. In this way the drainage bonds become part and parcel of the State's general mortgage on all property in the district, except that the tax specifically levied for drainage purposes must be disbursed by the State Treasurer for the liquidation of the bond principal and interest. An annual tax of one or two, or even of three dollars and a half an acre will not prove burdensome on land that nets the cultivator anywhere from $50 to $500 an acre, according to the crop planted.

lake or bayou, to dig another wide canal through the center of the unit, the ends of which are closed, and to throw all the earth taken from these excavations into a levee or embankment around the unit along the inner bank of the outer canal. A drainage pump is installed, a power propelled ditch digging machine is put to work opening up lateral drainage canals, and the whole is ready for the farmer.

Thereafter the water level in the soil is regulated by the pump, which lowers or raises the water level in the reservoir canal, to the end that the farmer may have moisture when it does not rain and quick drainage when it does.

Until recently all the artificial drainage that has been done in Louisiana except the drainage of New Orleans, has been done with private capital, and the very profitable yields of sugar cane, rice, corn and produce of all kinds grown in a series of crops each year has given handsome returns on such investments. The new plan is much simpler, and removes the burden by distributing the cost through several years in the shape of an acreage tax on cultivated land collected annually by the State Tax Collector and applied to the liquidation of the bonded indebtedness of the drainage district.

Article 281 of the Louisiana State Constitution authorizes the issuance of these bonds and specifies the conditions under which they may be issued. Another article

New Jersey

The Plainfield Trust Company of Plainfield, N. J., which recently completed its tenth year since organization, occupies a banking home which is a model in every respect. The success which the Plainfield Trust Company has encountered, not only reflects the excellent and conservative management, but testifies to the appreciation of patrons for the conveniences offered. The Plainfield Trust Company building was erected in 1905. Its equipment includes a ladies' room, coupon rooms for the safety of safe deposit box holders, consultation rooms and up-to-date safe deposit and storage vault facilities. The building is fireproof in every respect, and is constructed to meet the requirements of expanding business.

The Plainfield Trust Commpany began business with a capital of $100,000, surplus and profits of $10,000 and deposits of $124,636. Four years later in 1908 the surplus and undivided profits had been increased to $165,184, and deposits $1,991.719. On June 4, 1912, the accumulated surplus and profits were $269.838 and the deposits $4,021,865. The Plainfield Trust Company has also issued a very attractive and handsomely printed booklet, descriptive of the history of the Plainfield Trust Company, and presenting a comparison of deposits showing rapid growth. The booklet also contains illustrations of the building, interior views and equipment.

A subject of paramount importance and interest to bankers throughout the United States which has been the basis of special committee action and wide-spread discussion at State conventions, is the extension of more scientific facilities to develop agricultural resources. The American Bankers' Association has delegated a special committee to examine at first hand into the systems employed by land credit and mortgage banks in Europe. Both the Republican and Democratic party platforms contain specific pledges requiring the application of more up-todate methods in financing the requirements of the farmer, in the extension of loans on farm lands and negotiations of mortgages secured by land. Frequent attention has been directed to the systems used in France by the Credit Foncier and the Mortgage Land Credit Banks Gesellschafts of Germany to emphasize the fact that our banking system is primitive in affording proper accommodation to agricultural interests.

The bankers' associations

of Illinois, Minnesota and other States have appointed special committees to urge upon Congress the adoption of measures to provide appropriations for farming education on a scientific basis. A Congress was recently held in Minnesota, attended by delegates from various State banking associations, to discuss ways and means to develop cooperation between the farmer and the banker.

In considering the adoption of such methods as have been applied with such marked success in Europe it is a logical conclusion that the trust company as an organization will adapt itself most readily to the solution of this problem. While conventions are passing resolutions and the representatives of the American Bankers' Association are studying the situation in Europe, the initiative has been taken by trust companies in the Middle West and in certain farming States to inaugurate the land credit and farm mortgage banking system. The pioneer in

the field is the Woodruff Trust Company of Joliet, Illinois, which was organized last June and is closely affiliated with the First National Bank of the same city. The Woodruff Trust Company has been organized expressly to handle amortized farm mortgages on the plan used by the Credit Foncier of France. This is, therefore, the first strictly land credit bank organization in the country.

The new bank will loan money on farms through its various agencies scattered across the State of Illinois on a plan whereby the farmer will not be compelled to pay renewal commissions. At the present time it is necessary to renew loans frequently and upon each renewal a new commission is charged. These additional commissions, abstract charges, etc., will all be saved to the farmer and the plan also provides for amortisement, which means that the farmer will pay off a small amount of the principal every six months, and in this way be enabled to clear his farm of debt without ever being compelled to make a large payment at any one time.

It is expected that the amount of interest paid by the borrower will be considerably less than at present. The company will issue its collateral mortgage bonds, which will be sold to the investing public throughout the United States. These bonds will be the direct obligation of the company and in addition will be secured by collateral placed with another trust company and consisting of the farm mortgages which the company has taken from the farmers of Illinois. The safeguards thrown around these collateral mortgage bonds are said to be unique in the history of farm mortgage finance in this part of the world and will make of the securities an investment that is second only to government bonds. As a matter of fact, in some countries of Europe these farm mortgage collateral bonds sell at a better price than government bonds themselves.

The Woodruff Trust Company will be

under the supervision and examination of the State of Illinois and will make a deposit of first mortgage bonds with the State auditor as additional security for all of its obligations. The Comptroller of the Currency has approved this form of investment for National banks and, therefore, the bonds of the Woodruff Trust Company will be legal for National banks throughout the United States.

It is the purpose of the management of the Woodruff Trust Company to embody all the approved methods of land credit institutions which have been applied in France and Germany. The plans of organization and trust indentures have been submitted to leading banking authorities of Paris and Berlin. The State banking authorities of Illinois and the Comptroller of Currency, moreover, have signified their purpose to co-operate in sympathy with the laudable purpose of the new institution. Although there are many trust companies in middle west and western States and also in the South which make specialty of loans on farm mortgages, the methods employed are not along scientific lines. It is reasonable to assume, however, that the progress of the Woodruff Trust Company will be watched with keen interest by such trust company managements and that they will be quick to adopt similar plans. In other words, it is not improbable, that the trust company will be the legitimate agency in agricultural States to establish in this country the land credit systems which have worked to such good purpose in Europe.

Bumper Wheat Crop in Kansas

The Prudential Trust Company of Topeka, Kans., has issued an interesting leaflet descriptive of crop and general financial conditions in Kansas. It is stated that Kansas raised this year an estimated wheat crop of 100,000,000 bushels which is held by the farmers at 80 cents per bushel or more. There is also a promise of a 250,000,000 bushel corn crop worth 50 cents per bushel. To this Kansas will possibly add $400,000,000 in other farm products. Kansas now boasts of having the largest per capita wealth of any State in the Union.

The prosperous condition reported by the Prudential Trust Company is typical of conditions which prevail in that State. The combined resources amount to $1,264,428, with capital stock of $150,000, sur

plus and undivided profits of $76,176 and deposits of $1,038,252. The officers are as follows: W. W. Mills, president; F. D. Coburn, Thos. Page, and W. W. Bowman, vice-presidents; Scott Hopkins, trust officer and S. E. Cobb, treasurer.

Initial Dividend by the Fidelity and Columbia Trust Company of Louisville, Kentucky Directors of the Fidelity and Columbia Trust Company of Louisville, Ky., which represents a recent merger of the Columbia Trust Company and the Fidelity Trust Company, have declared the first quarterly dividend on $2,000,000 of 21⁄2 per cent., placing the stock on a 10 per cent. annual dividend basis.

The Fidelity and Columbia Trust Company is now the leading and largest trust company of Kentucky. It handles a vast amount of trust business and estates. The consolidated company will shortly move into the handsome modern bank building erected by the Columbia Trust Company. The following are the officers of the company: John W. Barr, Jr., president; L. W. Botts, vice-president; John T. Malone, manager; A. Y. Ford, cashier; L. M. Render. secretary; J. F. Speed, treasurer; J. D. Winston, assistant treasurer; Menefee Wirgman and J. G. McPherson, assistant secretaries; Arthur Peter, trust counsel and Geo. W. Lewis, auditor.

Convention Dates

American Institute of Banking-Salt Lake City, Utah, August 21, 22 and 23: Secretary, A. C. Dorris, Nashville, Tenn.

Montana-Kalispel, August 23 and 24;
Secretary, Mark Skinner, Great Falls.
Nebraska-Omaha, August 26 and 27:
Secretary, Wm. B. Hughes, Omaha.
American Bankers' Association-Detroit,
week of September 9-14; Secretary,
Fred E. Farnsworth, II Pine street,
New York City.

Illinois-Peoria, September 25 and 26;
Secretary, R. L. Crampton, Chicago.
Kentucky Louisville, October 2 and 3;
Secretary, A. B. Davis, Louisville.
Indiana-Indianapolis, October 16 and
17; Secretary, Andrew Smith, Indian-
apolis.
Arizona-Tucson, October 18 and 19;
Secretary, Morris Goldwater, Prescott.

Fifty years of continued service and steady progress by a banking institution implies conservative management and adherence to successful policies. The record achieved by the Savings Union Bank and Trust Company at the completion of fifty years of operation in San Francisco is one which emphasizes the wisdom of careful and cautious administration. In its history we may trace the development of those principles in banking which are enduring and spell advancement. Panics, strikes, earthquakes and other factors in the life of the community are passed by as mere incidents, leaving the institution untouched and hastening instead of interfering with its development.

The Savings Union Bank and Trust Company is entitled to the distinction of being the oldest established bank in the State of California. The first act framed in the State, relating particularly to banking, was passed in 1862 and became a law through the efforts of certain gentlemen

who contemplated the organization of the San Francisco Savings Union under which name the Savings Union Bank & Trust Company was originally incorporated. Up to that time banking was conducted in California exclusively by foreign agencies, private individuals or co-partnerships. The Savings Union was incorporated in June, 1862, and was the first institution chartered under the banking law. The Savings & Loan Society, which was chartered in 1857 under the general corporate law, was consolidated with the Savings Union in 1910 so that the consolidated bank retains rank as the oldest bank. When the new bank act of 1909 became effective the Savings Union secured amendments to its charter to conduct a department for savings, a safe deposit department and a trust department. Coincident with this extension of functions the title was changed to read Savings Union Bank & Trust Company.

During the fifty years of its existence the Savings Union opened accounts with

over 151,000 depositors, disbursed $36,500,000 in dividends and handled $612,000,000 of deposits. In 1863 there were deposits of $84,977; in 1880 deposits of $9,958,343; in 1890 deposits of $19,824,544 and depositors numbered 16,436. From 1900 to January 1, 1912, deposits continued to increase despite the earthquake disaster and the visit of a panic. The one hundredth half-yearly report of June 29, 1912, shows aggregate assets of $36.329,472, due depositors $32,574,000, paid-up capital of $1,500,000 and reserve of $2,120,000. During the fifty years of its existence the Savings Union paid an average of 7.4 per cent. per annum on saving deposits, taking into consideration the high. rates paid in early days of banking in California when money commanded high premium. It is also of interest to note that long continuity of service has marked the executive management. The first president, James de Fremery, served twenty-one years. For forty-eight years the bank conducted its business in the block of California street lying between Kearny and Montgomery streets.

The Savings Union Bank and Trust Company now occupies one of the most elegant and monumental bank buildings erected in San Francisco. The building which the bank occupied prior to the earthquake was completely razed and a building erected in its place of absolute

steel and fireproof construction. The design is of an Ionic order, surmounted with an attic story and with a dome, after the type of the Pantheon in Rome. The pediment is supported by six massive Ionic columns. The bronze doors contain panels designed by Arthur Mathews. The atmosphere of the interior carries one back three centuries to a time when the Medicis and other historical families, located in trade centers of Europe, conducted the banking business of the world. The artistic effect of walls, ceilings and panellings renders the building one of the architectural features of the city.

Of special interest are the superior equipment and highly organized methods of the trust department of the Savings Union Bank & Trust Company.

The board of directors of the company is one of the strongest in the country and what is more to the point is that it is a board which co-operates zealously with the executive officers. The officers are as follows: John S. Drum, president; G. D. Greenwood, vice-president; C. O. G. Miller, vice-president; R. M. Welch, vice-president and secretary: R. B. Burmister, cashier; A. M. Whittle, assistant cashier; C. F. Hamsher, assistant cashier; Wm. A. Day, assistant cashier; D. L. Clarke, assistant secretary.