Transfer of Trust Company Stock The Trust Company of North America holders of certificates of deposit of stock issued in connection with the transier of the business of the company to the Commercial Trust Company have received notices to surrender their certificates in exchange for stock of the Commercial Trust Company and certificates of interest in the premises at 503-7 Chestnut street. No fractions of stock of the Commercial Trust Company are to be issued but the fractions of stock called for by the certificates of deposit will be adjusted on the basis of $40 a share. Philadelphia Brevities The Commercial Trust Company has been appointed registrar for the Norfolk Railway & Light Company's certificates of stock, succeeding the Tradesmen's Trust Company which is now being liquidated. The Pennsylvania Railroad Company reports on August 1, that a total of 9,077,558 shares of stock are outstanding having a par value of $453,877,970. In all there are 74,240 shareholders and of that number 35,543 are women. There are 10,533 foreign shareholders, 23,250 resident in Pennsylvania and 12,811 in New York. Charles V. Thackara, manager of the branch office of the Philadelphia Trust, Safe Deposit & Insurance Company, located at 1415 Chestnut street, has been elected an assistant treasurer of the company. Mr. Thackara was formerly assistant cashier of the Franklin National Bank. A Little Ready Money The publicity department of the Northern Trust Company of Chicago has issued an interesting little leaflet with the title "A Little Ready Money." The plain facts presented therein bring home to the man with a small income the advantages of setting aside a part of his earnings in the form of a bank account. For example, the man or woman who places $10 in a bank every month will have accumulated $1,399.38 in ten years. A monthly savings deposit of $25 will amount to $3,498.72 in ten years and the interest alone will be about $500. Emphasis is also placed upon the high degree of safety offered by a trust company which is conducted along such conservative lines as the Northern Trust Company. Philadelphia Pennsylvania The Colonial Market at Thirteenth Centrally located and thoroughly equipped to handle all business pertaining to estate and corporate matters. Accounts of banks and bankers received upon favorable terms. HARVEY L. ELKINS, President. Clearing House, Section, A. B. A. The Clearing House Section of the American Bankers' Association devoted its sessions at Detroit, Sept. 11-12, very largely to matters relating to the extension of clearing house facilities. Charles H. Ruggles, manager of the Boston Clearing House, presided. Walter H. Bennett, vicepresident of the American Exchange National Bank, New York, responded to the address of welcome. Following the address of President Ruggles and the presentation of various reports there was a discussion of the Numerical System, recently introduced by the American Bankers' Association, led by C. R. McKay. The first session was brought to a close with an address by Sol Wexler, vice-president of the Whitney Central National Bank of New Orleans, on "Functions of the Modern Clearing House." The second business session on Thursday, Sept. 12, was opened with a discussion on "Collection of Country Checks Through the Clearing House," led by Jerome Thralls, manager of the Kansas City Clearing House. Keen interest was manifested in the able address by Frank Greene, managing editor of the Bradstreet Company, New York, who spoke on "Uniform Clearing House Reports and Bank Transactions." Boston Special Correspondence The Payment of Interest on Deposits There is perhaps no subject which appeals with greater interest not only to bank and trust company managements of this city but to bankers throughout New England than that of payment of interest on deposits. It is a general consensus of opinion that the public has been educated to demand too high a return for their deposits. The majority of bankers and trust company officials of this city would willingly adhere to a conservative rate but the rigorous competition from institutions which offer excessive rates, renders it necessary to depart from ultra-conservative practice. In a number of cities in New England the question has become acute and much bitterness exists. Efforts to bring about some rational agreement among banks and trust companies in certain communities have proven fruitless. This is the experience of practically all efforts which have been made to enforce iron-clad rules regulating the basis of interest for various classes of deposits. It is usually found that as soon as one institution violates the compact by allowing a higher rate than agreed upon there is a general falling from grace and a scramble to meet competition. In Boston a rate of interest has prevailed which cannot be justified on the basis of the prevailing money market. The National banks have not been backward in bidding for accounts and almost every institution follows its own policy of self-preservation. There are a number of banks and trust companies which persist in following conservative ideals and maintain proper rates. The impression is also gaining among bank and trust company clients that the maintenance of a fair rate of interest is an evidence of sound management. It is suggested that no better use could be made of the machinery of the American Bankers' Association and of the various State bankers' associations than to define a clear and proper policy and to publish rules which would declare any banking institution a violater of approved banking practice which pursues unduly aggressive policies in endeavoring to build up deposits. To a considerable extent the excessive payment of interest accounts for the decrease in earnings reported by both the National banks and trust companies of this city during the past year. Administration of Estates by Trust Companies It is well known that the bulk of trust estates and trust funds in Massachusetts is administered by individuals and that the trust companies obtain but a small share of this class of business. There have been numerous instances of defalcation and of losses through bad management on the part of individual trustees but on the whole the record has been a fair one. But the newspapers have recently contained accounts of an unusually large number of defalcations and waste due to appointment of individual trustees, executors and administrators. It may also be safely assumed that for every one exposure there are ten instances of dishonest or negligent management which are compromised out of court and the public is none the wiser. Until the laws of taxation and the opportunities for eluding the appraisers' investigation are corrected the trust companies will continue at a disadvantage in bidding for fiduciary business. The legislature has been hardly fair to trust company demands for redress. But sentiment is increasing in favor of giving trust companies a "square deal" and new legislation will be proposed to remedy existing conditions. What is most important at this time is that the trust company interests should present a united and courageous front in demanding corrective tax legislation and laws which shall prevent immunity from taxation to taxable trust funds or property when administered by individuals. Real Estate Valuations Increased Boston's tax rate will remain another year at $16.40 per $1,000, according to announcement made by Mayor Fitzgerald. The Mayor and the assessors expected that the rate would advance 10 cents over that of the last two years, in view of the increased State and metropolitan taxes. The gain in assessed valuation this year over the $1,428,344,814 of the last year is about $38,000,000, or an increase of 21⁄2 per cent. The gain in real estate valuation is about $28,000,000, and in personal property $10,000,000. The annexation of Hyde Park, with its $15,000,000, was a great help in raising the valuation of the city. The Bay State Trust Company on July 15 issued a statement of condition showing total deposits of $7.723,659. Postal Savings Deposits Statistics regarding the operation of the postal savings system in the Boston Post Office and stations during July have been compiled by Postmaster Mansfield. During the month 943 accounts were opened; the amount deposited to the credit of old and new accounts was $83.953. and the amount of payments was $47.320. Since the estab)lishment of the first Postal Savings Depository in Boston, Aug. 1. 1911, 11,859 accounts have been opened. The amount of deposits has been $731,043, and the amount of payments $307.944- During the year savings cards and stamps have been sold to the amount of $10.337. Boston Brevities Stockholders of the Atlantic National Bank and of the Fourth National Bank met on August 27 and approved the plans for the merger of the banks. The business of the consolidated bank is to be transacted in the new quarters of the Fourth National Bank. The Paul Revere Trust Company, which has experienced marked growth during the past year, is preparing to move into new and enlarged banking quarters. The First National Bank of Chicago Excellent statements are rendered as of September 4th and 5th respectively by the First National Bank of Chicago and the allied First Trust & Savings Bank. The combined deposits of both the National bank and trust company amount to $177.545.503. Both banks are owned by the same stockholders, and together with the National Safe Deposit Company, are governed by the same board of directors. re The First National Bank shows at the close of business September 4th, aggregate assets of $146.130,337, including cash sources of $49.265.243 and $87.963 loans and discounts. The capital stock is $10,000,000. surplus fund $10.000.000, undivided profits $1.723.926 and total deposits $121.965.208. The First Trust & Savings Bank reports at the commencement of business September 5th total assets of $62.878,704. including bonds of $23.467.508, time loans on collateral $20.011.717. demand loans on collateral $0.124.116 and cash and due from banks $10.275.362. The capital is $5.000.000, surplus and undivided profits $2.177.116 and deposits $55.580.205. Chicago Special Correspondence Growth and Earnings of State Banks and Trust Companies Interesting compilations have been recently issued regarding the growth and earnings of the State banks and trust companies of Chicago. The Central Trust Company of Illinois has issued a compilation which emphasizes how rapid have been the strides of the State banks and trust companies. Within the past sixteen years the trust companies, including State banks, have shown an increase in deposits from $80,843,075 to $519.956,261, equal to 543 per cent. During the same period the National banks of this city increased their deposits from $120,187.765 to $487.757,762, equal to 305 per cent. This summary shows that the trust companies and State banks have made the greatest ratio of progress. In 1896 there were nineteen State banks, trust companies and private banking firms. Since then sixtythree new State banks and trust companies have been organized. Of the total twentysix have dropped out through merger, liquidation or change of name. During the past year twelve new State banks and trust companies have been organized. Sixteen years ago there were twenty-five National banks in this city. Owing to mergers and liquidations the number of National banks has decreased to fifteen. According to the State Auditor's recent report fifty-four State banks and trust companies of Chicago had gross earnings based. on capital of 771⁄2 per cent. the fiscal year ending June 30, compared with 734 per cent. the previous year, while their percentage of dividends on capital was 12.99 against 13.17. Their gross earnings on capital, surplus and undivided profits amounted to 39.90 per cent., against 39.13 in 1911, but their percentage of dividends on capital, surplus and undivided profits was 6.07, against 6.72. Gross earnings per total investments were 5.85 per cent. in 1912 and 5.78 in 1911. Expenses and interest paid on total gross earnings were 65.30 per cent., against 63.73 per cent. Net earnings per capita 22.87 per cent., against 22.71; per total investment 1.73 per cent., against 1.79 per cent.; per capita surplus and undivided profits 11.86 per cent., against 12.06 per cent. Time savings deposits were $219,311,571, a gain of $17,602,924. The number of time savings depositors increased to 678,969, being a gain of 56,665, and the average de posit was $323, a gain of $1.12. The gross earnings during the year were $27,882,498; the taxes, interest and expenses were $18,209.734, and the net earnings were $8,289,826. Money Market Reflects Excellent Business and Crop Returns Fluctuations in money rates are the most reliable indications of the varying changes in National prosperity and the signs now all point to a complete restoration of activity. The bountiful crops serve the purpose of injecting a spirit of typical Chicago "push" into banking and business proceedings which is most infectious. The demand for money is steadily increasing and the demand comes not only from interior institutions which serve as intermediaries for financing the crop movement but from business concerns, mercantile and manufacturing concerns. It is now a certainty that the crops of 1912 will be greater in quantity, in quality and in price than ever before. Political problems fade into abstract propositions before this tide of good news. The banks and trust companies of this city are bestirring themselves to meet the situation and incidentally to calculate larger earnings than for several years past. Money rates are now at the highest point attained this year. Five per cent. is quoted as the minimum rate for all classes of business. Cali loans outstanding at 41⁄2 per cent. are being marked up to 5 per cent. High grade commercial paper commands 51⁄2 per cent. During the month of August the National banks of this city shipped $2,200,000 in currency as compared with receipts of $1,500,000. Preparations are being made to call upon New York for larger sums than usual at this period of the year in order to satisfy the requirements of the interior. For the first seven months of this year the Chicago banks shipped $90.536.000 in currency as compared with receipts of $65.676,000. As a rule the banks in the agricultural regions are in excellent condition and report large deposit gains. Organization of the Market Trust and Savings Bank, located at 127 North Halsted street has been completed. The capitalization of the new institution is $200,000 and the officers are: President, William T. Bruckner, vice-president of the Continental and Commercial National Bank; vice-president, Frank Ransford, formerly with the Mercantile Bank; cashier, Fred S. Fulton. Illinois Trust & Savings Bank Since 1890 the Illinois Trust & Savings Bank of Chicago has paid $30,000,000 interest to its depositors. During the same period it has distributed over $11,000,000 to its stockholders and has paid $2,100,000 in taxes. In 1890 the capital was $1,000,000 and surplus $736,000. The latest report as of September 6 shows capital stock paid in of $5,000,000, surplus and undivided profits $9,626,940, all earned. The statement further shows aggregate resources of $108,764,486, demand deposits $30,975,168 and time deposits of $62,751,305. This steady and natural growth has been accomplished without the assistance of mergers or absorption of other banks. Mechanics and Traders State Bank Officers of the Mechanics and Traders State Bank of Chicago, the new bank recently formed by interests connected with the Central Trust Company, to cover the territory vacated by the Prairie State Bank upon its absorption by the Central Trust, have been chosen as follows: Calvin F. Craig, president; W. R. Dawes, vice-president, and Morton F. Stone, cashier. Mr. Craig formerly was cashier of the old Sts This bank acts as Registrar and Transfer Agent of Stock, Trustee under bond issues, Fiscal Agent, Executor, Administrator, and in other similar fiduciary capacities. FIRST TRUST AND The stock of this bank is owned Metropolitan Trust and Savings; Mr. Dawes is vice-president and cashier of the Central Trust. Continental & Commercial National Bank A folder issued by the Continental & Commercial National Bank of Chicago presents the statements of condition as of September 4th of that bank and for the allied Commercial Trust & Savings Bank and the Hibernian Banking Association. The total figures are very impressive. The Continental & Commercial National Bank reports aggregate resources of $225.747,207, including time loans of $93,571,644, demand loans, $24,948,661, bonds, securities, etc., $15,994,914, United States bonds to secure circulation $8,703,062, and cash and due from banks $82,518,434. The capital is $21,500,000, surplus, $8,000,000 and undivided profits $1,107,949. The allied Continental & Commercial Trust & Savings Bank, the capital stock of which is owned by the stockholders of the Continental & Commercial National Bank, reports at the commencement of business September 5 total resources of $29,636,878, total deposits of $24,951,523, capital $3,000,000, undivided profits $1,542,324. |