Pittsburgh

Special Correspondence

Capital and Banking Resources of Pittsburgh

The plaintiff statement has been often made that since the large industrial and manufacturing corporations have established their headquarters in New York City and transact all their financial negotiations with banks and trust companies of that city that Pittsburgh has suffered a consequent decline in importance as a banking and financial center. This viewpoint is hardly supported by facts. In 1896 the National banks of this city had not more than $42,000,000 deposits. At the present time they report approximately $200,000,000 deposits of which $122,000,000 consists of individual accounts and the remainder in balances carried for outof-town banks and as reserves. Deposits of other banks with Pittsburgh National banks during this period increased from $7,000,000 to $72,000,000. This influx of outside money into Pittsburgh has resulted directly in creating easier money rates for business and manufacturing borrowers. These totals, of course, do not embrace the marked gains during this period made by trust companies and State banks.

While considerable corporation financing has been transferred from this city to New York it is a fact that Pittsburgh has not only held its own but has enhanced its position as a banking center. The corporations which have their main offices in New York are obliged to maintain large balances with the banks and trust companies here for purchases and extensions and for payment of wages. It is also true that local institutions are becoming more important factors in arranging the financing of industrial enterprises in this section. In this respect the trust companies exert the most influence. The large increase in deposits and out-of-town balances has broadened the financial market and renders it possible to negotiate financing at home which would otherwise go to New York.

Influence of Politics on Business

The attitude of the various political parties on the subject of tariff revision looms up large here as the most important issue influencing business and industrial conditions. The prevailing sentiment is that tariff problems should be taken out of the

maelstrom of politics and that changes should be rationally considered by a nonpartisan tariff commission which may, from time to time, suggest changes. It is generally feared, however, that in the event of a Democratic victory the whole tariff question will be brought up and uncertainty will prevail until the question is decided as to whether tariff shall be revenue only or whether protective measures shall continue.

General industrial conditions in this section are truly flourishing. The United States Steel Corporation report, showing $25,102,000 earnings for the quarter ended June 30, as compared with $17,826,000 the previous quarter, fulfilled expectations. It is also assured that the earnings for the third quarter will show further improvement. For the year there is every indication that pig iron production records will be eclipsed. It is estimated that the output will amount to over 29,000,000 tons.

Pittsburgh Brevities

At a recent meeting of the directors of the Fidelity Title and Trust Company. the following changes were made in the official staff: John M. Irwin was elected first assistant treasurer, and Edward F. Stratman, second assistant treasurer: W. A. Royston, Jr., was elected first assistant secretary, and Frank T. Power. second assistant secretary.

The coal production of Pennsylvania for 1911 amounted to 235,185.370 short tons, valued at $321,264,345. This output comprised 144,721,303 tons of bituminous, and 90,464,067 tons of anthracite. The respective values $146.311.930 and $174,952,415.

were

At a recent meeting of the directors of the Homestead Savings & Trust Company. John Holmes, of the Bessemer Trust Company, of Braddock, was elected treasurer, succeeding H. B. Heylmun, resigned.

July exchanges at the Pittsburgh Clearing House were the largest for that month in the history of local banking. The aggregate clearings were $247,000,000.

The People's Bank & Trust Company is organizing at Las Vegas, N. M. The capital will be $200,000; and the stock has been over-subscribed in and adjacent to Las Vegas. John W. Harris, an old-time banker of Kansas, will be the president. George H. Hunker and John W. Harris will be the active officers of the bank.

Baltimore

Special Correspondence

The Clearing House Rules and Trust
Companies

A resolution is before the Baltimore Clearing House Association, the purpose of which is to obligate member banks to cease extending clearing facilities to trust companies or other State institutions which do not comply with the rules of the association. The resolution is aimed particularly at the trust companies because of the policy of handling exchanges of patrons without collection charges. Where accounts date previous to 1897, this prohibition does not apply. It is stated that the trust companies are enabled because of this extension of free collection privileges to handle profitable accounts which would otherwise go to National banks. In other words, the Clearing House banks intend to meet the competition of trust companies by denying them clearing privileges through member banks.

It might be accepted as fair that the Clearing House has the right to curtail clearing connections which its members may establish with banks or trust companies which have no membership. But this view is hardly justified because of the uncompromising attitude of the Clearing House in not granting trust companies the right to become direct members under conditions which are recognized as equitable. The representative trust companies would be willing to join the Clearing House as members and abide by its rules, providing the basis of admission is satisfactory. But the attitude of the Clearing House, whenever this subject has been under discussion, has been arbitrary, and trust companies have naturally pursued the policies which they deemed best.

Baltimore banks have been under a severe disadvantage owing to excessive taxation and large accounts have been transferred to Pittsburgh, Philadelphia and other cities where more satisfactory facilities in regard to collections have been offered. This transfer of valuable deposits has seriously impaired Baltimore's banking and financial prestige. Nor can it be denied that if the Clearing House takes such drastic action toward the trust companies as contemplated by the pending resolution, that the injury will be still greater. Baltimore is ideally located to handle out-of-town business and to extend its financial dominion throughout the South.

Maryland Banks and Trust Companies

J. Duke Downes, Bank Commissioner for the State of Maryland, has compiled an exhaustive report of the State banks and trust companies, taking as a basis for computation the condition of the several institutions at the close of business June 14, 1912. As shown by the report there are 106 trust companies and State banks and 10 branches, having total resources of $107,795,547, consisting of loans and discounts $43.396,488, stocks and bonds $35,211,671, banking house, furniture and fixtures and other real estate $5,318,870; mortgages and judgments $7,072,264; cash, due from banks and reserves $16,796,246. Capital stock paid in $12,539,840; surplus and undivided profits $15,976,641; due banks and reserve agents $3.328,018; total deposits $74,303,899, bills payable with other liabilities $1,647,145. The total aggregate of 20 savings institutions at the close of business June 29, 1912, was $101,930,098, making the grand total of the 126 institutions, operating under a State charter, $209,725,645.

Sale of the Central Trust Company

The charter and business of the Central Trust Company, which was purchased by the Baltimore Trust Company in 1905, has been transferred to new interests. The charter is a valuable one, having been originally issued for the Old Line Real Estate & Trust . Company. It is stated that the charter will serve as the basis for a newly organized company.

Baltimore Brevities

The Title Guarantee & Trust Company to which George W. Morrison, former first vice-president of the Baltimore Trust Company, has been elected president, will establish a banking department.

Directors of the Maryland Trust Company have declared the regular semi-annual dividend of 3 per cent. on the preferred stock of the company.

Former Governor of Utah, Heber M. Wells, manager of the Utah Savings & Trust Company, has been promoted to vice-president of the company. As vicepresident of the company, Mr. Wells will continue as active manager of all departments of the business of the bank. H. D. Curtis of Hailey, Ia.. as been appointed cashier of the bank by the directors.

OF

CAPITAL

SURPLUS

DEPOSITS

A. H. 8. POST, President

WILTON SNOWDEN, Vice-President

J. R. WALKER, 2nd Vice-President

Cleveland

Special Correspondence

Cleveland as an Investment Center

If volume and ratio of savings deposits to population may be regarded as a fair index Cleveland is one of the most prosperous cities in the United States. No other agency has contributed so much to building up the spirit of economy and the habit of savings among all classes of people in this city as the energetic campaigns pursued by the trust companies. Their arguments and attractive literature have penetrated into every home. The good work has been carried on among wage earners, school children, professional men, school teachers and fraternities. The result has been the accumulation of huge savings deposits in the banks and trust companies from which patrons draw liberal rates of interest and assurance of provision for the future. Added to thi are deposits attracted by means of "banking by mail" campaigns. Such institutions as the Cleveland Trust Company and the Citizens Savings & Trust Company have savings deposits from all parts of the world.

Naturally, this increment of savings makes Cleveland an important center in the absorption of high-grade investments. Of late the investment market here has evidenced marked improvement and broad demand. These savings are also utilized to absorb new investment issues based on Ohio enterprises and to finance worthy properties at home. Deposits of all kinds in local banks now exceed all previous high records. During the first half of the year there was a gain of $10,000,000. At the beginning of the year the aggre

JOHN MCHENRY, Treasurer

T. H. FITCH ETT, Sec'y and Asst. Treas. C. I. REYNOLDS, Asst. Secretary

gate of National bank, State bank and trust company deposits was over $300,000,000. The National banks report deposits of $78,816,000. The trust companies and State banks contribute the largest volume of deposits, amounting to $205,000,000. The Society for Savings has deposits of $65,000,000, the Citizens' Savings & Trust Company over $45,000,000, the Cleveland Trust Company $28,500,000.

Cleveland Brevities

In 1909 the State of Ohio had 15,138 manufacturing establishments, which gave employment to an average of 523,004 persons during the year and paid out $317,597,000 in salaries and wages. Of the persons employed, 446,934 were wage earners. These establishments turned out products to the value of $1,437,936,000, to produce which materials costing $824,202,000 were utilized.

Creditors of the failed Euclid Trust & Savings Bank will receive dividends to the full value of their claims, according to the recent report of Receiver Glinn.

A wide circle of friends and business associates mourn the recent death of Luden Wulsin, vice-president of the Central Trust & Safe Deposit Company of Cincinnati, who was a contributor to the pages of TRUST COMPANIES Magazine.

John Armstrong Chaloner has conveyed his entire property, estimated to be worth $1,500,000, in trust to the Virginia Trust Company of Richmond, Va., naming the University of Virginia and the University of North Carolina as residuary legatees, while nine other educational institutions in several States will receive $10,000 each.