THE PRESIDENT: The motion is made, gentlemen, to gather the votes tomorrow morning. That will give the membership ample time for consideration. Those in favor make it known by saying "aye"; those opposed, "no." (The motion is carried.) The secretary will be here in the hall to gather those ballots in the morning at 9 o'clock.

MR. F. H. GOFF: Mr. President, in order that the program may be completed without too much pressure. I beg to suggest that when we adjourn we adjourn to convene at 9.30 tomorrow morning. We have topics for discussion that are likely to consume considerable time.

MR. WILLIAM C. POILLON: Second the motion.

THE PRESIDENT: The motion is made that when we adjourn today it will be until 9:30 tomorrow morning. Those in favor make it known by saying "aye"; those opposed, say "no." (The motion is carried.)

The Chairman then announced the following members of the Committee on Nomination: Mr. R. W. Cutler, president Hartford Trust Company, of Hartford, Conn.: Mr. W. C. Poillon, vice-president Bankers' Trust Company, New York City; Mr. Edwin Chamberlain, vice-president San Antonio Loan & Trust Company, San Antonio, Texas; Mr. John G. Reading, president Susquehanna Trust & Safe Deposit Company. Williamsport, Pa.; Mr. J. J. Sullivan, president Superior Savings & Trust Company, Cleveland, Ohio.

MR. HENRY G. AIRD, Vice-President The Guaranty Trust & Savings Bank, Jacksonville, Fla.: Mr. President. I notice that so many have left the hall and the reports now to be read are of such great and vital importance and certain interest to everyone, that they be leferred until tomorrow at 9:30.

FRANK W. BLAIR

THE PRESIDENT: Is that a motion?

MR. AIRD: Yes sir.

THE PRESIDENT: Gentlemen, you have heard the motion. What is your pleasure? (The motion was seconded.)

The

THE PRESIDENT: motion is made and seconded that we defer the reading of the reports until tomorrow morning at 9:30 o'clock. Those in favor of the motion will make it known by saying "aye"; opposed, "no." (The motion is carried.)

THE PRESIDENT: We will make these reports, then, the first order of business tomorrow morning. Is there anything else to come before this meeting?

MR. AIRD: I move we adjourn (Motion seconded.)

THE PRESIDENT: The motion is made and seconded that we adjourn until 9.30 tomorrow morning. Those in favor make it known by saying "aye"; opposed, "no." (The motion is carried.)

The convention was then adjourned until Thursday, Sept. 12, 1912, at 9.30 a. m.

SECOND DAY'S SESSION OF THE TRUST COMPANY SECTION

DISCUSSION ON "SEGREGATION OF SAVINGS DEPOSITS"

'The second session of the Trust Company Section was called to order September 12th at 9:30 A. M., with President Fries in the chair.

THE PRESIDENT: Gentlemen, I am requested to announce that the polls are still open, and will be open until 10 o'clock. The box is here for your votes for five members of the committee for the next three years.

The Section will please come to order, and the unfinished business of yesterday is the report of the Secretary and of the Committee on Legislation.

REPORT OF THE SECRETARY OF THE TRUST COMPANY SECTION

To the Members Trust Company Section, American Bankers Association:

Gentlemen: I beg to submit herewith my report for the year ending August 31, 1912.

The book of Forms for Trust Companies brought out in May, 1910, has met with very satisfactory sales. To date 425 copies at $15 each and 12 at $20 each have been sold; total receipts of $6,615 and total expenses of $5,519.23, leaving a net profit to the Section of $1,095.77. This sum is applicable to binding 500 copies of books not yet bound and which it will be necessary to have done within a few months.

Membership in the Section now numbers 1,251 companies, a net gain for the fiscal

year of 114 companies, the largest gain in any one year in the history of the Section. You will find in your seats a printed list of this membership by States. States having more than five members are entitled to a vice-president.

The report of the Executive Committee and the address of the president having entered fully into the work of the Section, it is unnecessary for me to make further report except to say that I have endeavored during the year to make the Section of continual benefit to its members by correspondence, by articles published each month in the journal of the Association, and by furnishing information to papers interested in trust company matters. Respectfully submitted, PHILIP S. BABCOCK, Secretary.

THE PRESIDENT: Your by-laws require that the president make the report of the Committee on Legislation and with your permission I will read it.

REPORT OF THE COMMITTEE ON LEGISLATION

F. H. FRIES, Chairman

To the Members of the Trust Company Section:

Gentlemen: The resolution offered and passed at the last annual meeting which created the permanent committee entitled "Committee on Legislation of the Trust Company Section" read as follows:

RESOLVED, That the Executive Committee shall annually at its first meeting appoint a committee of five as a Committee on Legislation of the Trust Company Section. The president, the first vice-president and the chairman of the Executive Committee shall be ex-officio members of such committee; the other two members may or may not be members of the Executive Committee. Such committee shall serve until the appointment of their successors.

The general object of the appointment of this committee was primarily to take in hand all general legislation affecting the members of the Section, and to submit the same, as far as it was possible, to the meeting of the Section for consideration and approval. The special work entrusted to it was the proposed legislation on monetary reform, which was carefully considered and reported upon last year. In the bill proposed and finally submitted to Congress, trust companies were fairly treated, and until some adverse action is contemplated it would seem unwise to interfere. The Monetary Commission's Bill now rests with the Finance Committee of the House of Representatives, and nothing can be expected from it until after the general election. It is useless to anticipate what can or will be done, but to those best situated to judge the early passage of the measure seems doubtful.

Respectfully submitted,

F. H. FRIES, for the Committee.

THE PRESIDENT: The next report is the report of the Committee on Protective Laws by Mr. Lynn H. Dinkins, chairman of the committee.

REPORT OF COMMITTEE ON PROTECTIVE LAWS

New Orleans, Sept. 3, 1912.

To the Chairman and Members of the Trust Company Section:

During 1912, your committee has been active in its efforts to secure desired legislation in the twelve States whose General Assemblies were to hold sessions. In Arizona, Georgia, Mississippi and South Carolina no trust company legislation was secured. The causes which prevented action in these States are quite beyond the control of this committee. It is believed, however, that substantial advance has been made in the matter of educating the bankers and legislators in those States concerning the desirability of proper State Banking supervision.

Virginia has a law restricting the use of the word "trust" and this year passed the Association bill with regard to deposits in two names. The general counsel of the Association succeeded in having a number of other desirable bills favorably reported from committees, but they were not acted upon by the House.

In Kentucky a Department of Banking was created. The act provides for the inspection and supervision of banks, regular reports and other desirable restrictions in connection with the transaction of banking and trust company business. Additional interesting legislation was enacted providing, for the method to be followed in the consolidation of trust companies.

Rhode Island passed a law relative to penalties for false statement to obtain credit.

The only new legislation in New York in which trust companies are interested was an amendment to the law which provides of what money legal reserve must consist, an act to punish derogatory statements attacking banks, which will include trust companies, and a bill relating to false statement to obtain credit.

In New Jersey a bill to punish false statement to obtain credit was passed. Through the efforts of the publisher of TRUST COMPANIES and of Mr. U. H. McCarter of the Fidelity Trust Company of Newark, the committee has, it is believed, effectively broken up the practice of certain irresponsible parties in this State securing charters for so-called trust companies.

In Massachusetts an act was passed exempting from taxation shares in Massachusetts trust companies owned by savings banks, and trust companies are authorized to hold, for their own use, real estate owned by National banks which they may succeed. A trust company may invest in a bank building not exceeding 25 per cent. of its capital and surplus, but in no case to exceed $250,000.

Maryland enacted legislation placing additional restrictions in regard to reserve of trust companies.

In Louisiana, "The Uniform Bills of Lading Act," "The False Statement Act” and "The Act Limiting the Liability of a Bank to Its Depositors for Payment of Forged or Raised Checks for a Period of One Year" were all passed.

The 1911 Vermont legislature passed the act restricting the use of the word "trust."

The Illinois Bankers' Association during the year appointed a committee to make suggestions regarding a bill providing for supervision of all banks in the State of Illinois and to otherwise safeguard State banking.

At the suggestion of a distinguished member of the Trust Company Section, your committee this year has given some attention to the consideration of existing inheritance tax laws. It finds the laws are confusing and imperfectly administered. A majority of the evils in the present systems were indicated in an address by Mr. Jackson at last year's convention. The committee has taken up the matter of securing changes in these laws and will use its efforts to assist in bringing about just and equitable laws in the various States.