St. Lovis

Special Correspondence

The Bumper Crops and Business

The favorable weather conditions which have prevailed during August in the agricultural States dispel all doubts as to the promises of bountiful crops. The reports received here by banks and trust companies from their country correspondents all show that the Government's August estimate of 290,000,000 bushels of spring wheat will have to be revised upward. It is estimated that the eight large agricultural States between the upper lakes and the Pacific Coast will yield 1,125,000,000 bushels of grain and potatoes as compared with 720,000,000 bushels last year. One leading bank figures that the new wealth to be created by the crops this year will aggregate $9,033,000,000, an increase of $600,000,000 over last year. The - estimates of the respective yields are given as follows: Winter wheat, 300 million bushels; spring wheat, 300 million bushels; corn, 3 billion bushels; cotton, 13,095,000 bales; oats, 1,150 million bushels; rye, 40 million bushels; barley, 194 million bushels; potatoes, 350 million bushels; rice, 23 million bushels; tobacco, 1 billion pounds; hay, 65 to 70 million tons; flaxseed, 28 million bushels.

The splendid reports of crop yields are responsible in the main for the very general activity which is apparent in all lines of business. St. Louis is enjoying a genuine boom and the demand for funds is creating more profitable rates for money. Railroad earnings are increasing and the fears which prevailed as to the ability of the traffic officials to negotiate the big demands for the movement of crops, have been largely dispelled. The railroads are likewise coming forward in making additions to rolling stock, improvements and extensions. Labor has never enjoyed such a high premium as at present and the demand almost exceeds the supply. Real estate and building operations also reflect the advance. New enterprises are bidding for accommodation and there is an unusual demand for new capital. In many instances mercantile and business houses report more liberal purchases than at any time within the past five years. The indications are also that higher rates for money will prevail from now on. Banks and trust companies here are in strong position to meet these requirements.

Missouri's Bank and Trust Company Resources

The report of State Bank Examiner Swanger of Missouri, just issued, shows that the individual, savings, time and demand deposits in State and National banks and trust companies amounts to $449,593,973. The different classes of deposits as shown by the commissioner's report are: Individual deposits, $309,265,892.88; time certificates of deposit, $93,705.773.87; demand certificates of deposit, $9,533,016.66; savings deposits, $37,089,291.01. Comparing this statement with that of September, 1911, it is found that the banks hold $3.721,677.02 more deposits this year. The most notable showing is in the increase in savings deposits over September, 1911, which was over 16 2-3 per cent., or an aggregate of $5,517.500. There are 1,364 financial institutions in the State, of which 1,147 are incorporated banks, 134 National banks, 52 trust companies and 31 private banks. The resources of these institutions amount to $831,137,492.71. An estimate shows that if the total deposits were divided among the population of Missouri they would give to every man, woman and child in the State $136.51.

Commissioner Swanger states: "The most notable showing that is made by the last statement is the increase in savings deposits over September, 1911, of $5,517,500, or an increase of over 16 2-3 per cent. This indicates very clearly that the habit of saving among our people is constantly growing; and as these savings deposits are largely made by the laboring class, it is one of the best indications of general thrift and prosperity among our people.

"The reserve held by the banks in June, 1912, was about 40 per cent., while the reserve held by the banks in September, 1911, was but 39 per cent. This is also a most favorable showing considering the season of the year."

Mortgage to Secure Bond Issue

A mortgage for $1,500,000 has been filed in St. Louis and St. Louis County by the Hydraulic Press Brick Company, as security for an issue of bonds aggregating that amount. The bonds were authorized by the board of directors at a recent meeting and the proceeds are to go to retire a former issue. A deed of trust on property in St. Louis and St. Louis County valued at approximately $1,850,000, is given by this brick company to secure the mortgage to the Mercantile Trust Company of St. Louis.

Railroad Mortgage Filed

The $200,000,000 mortgage of the St. Louis, Iron Mountain & Southern Railroad, recently authorized, has been filed and made of record in St. Louis. It is to the Union Trust Company of New York, and B. F. Edwards, president of the National Bank of Commerce in St. Louis, as trustees for the bondholders. The bonds are forty-fiveyear gold issues and bear interest at not more than 6 per cent. The filing fee in St. Louis was more than $100. This mortgage is also being filed for record in all the States and counties in which the railroad company owns property. Coincidentally a $25,000,000 improvement mortgage held by the Guaranty Trust Company of New York has been released.

St Louis Brevities

Charles H. Howard, president of the Commonwealth Steel Co. and a director of the St. Louis Union Trust Co., has been elected a director of the Boatmen's Bank to succeed Robert McKittrick Jones, resigned.

Stockholders in the Merchants-Laclede National have received checks for an extra

dividend of 3 per cent. The regular quarterly dividend of 3 per cent. will be paid by the bank the end of August. The capital stock of the bank is $1,700,000 and $51,000 was required to pay the extra dividend.

The Walton Trust Company of Butler, Mo., which was organized 40 years ago, recently increased its capital to $250,000, with surplus of $50,000.

Security Trust & Safe Deposit Company

of Wilmington, Del.

Evidence of steady growth and increasing patronage is shown in the statements of condition issued by the Security Trust & Safe Deposit Company of Wilmington, Del. A report of July 3 shows combined resources of $3,790,320, including $1,660,928 loans and discounts, $1,593.545 mortgages, bonds, stocks, etc., and $355,270 cash and reserve. Capital is $600,000, surplus and undivided profits, $729,966 and due depositors $2,436,929. The officers are: Benjamin Nields, president; John S. Rossell, vicepresident and secretary; L. Scott Townsend, vice-president and treasurer; Harry J. Ellison, assistant secretary, and Levi L. Maloney, assistant treasurer.

FELIX T. HUGHES

NEWLY ELECTED MANAGER BOND DEPARTMENT MISSISSIPPI VALLEY TRUST COMPANY, ST.

LOUIS, MO.

Growth of the Security Trust Company of Detroit, Mich.

The Security Trust Company of Detroit. Mich., which was organized and commenced business in 1906, has had exceptional progress and a successful career. This company has been especially successful in securing fiduciary business, and recently added to its operations a department especially devoted to receivership assignments. The statement of condition rendered as of September 4 shows aggregate resources of $4,133,361, trust deposits amounting to $2,810,823. capital of $500.000. surplus of $500,000 and undivided profits of $267.852. These aggregates, of course. do not include the trust holdings. The officers are as follows: Charles C. Jenks, president; Emory W. Clark, Lem W. Bowen, and Charles O. Patch, vice-presidents; Charles Moore, secretary and treasurer; Albert E. Green, assistant secretary and Gray & Gray, counsel.

Baltimore

Special Correspondence

Trust Company Denied Clearing House
Privileges

Considerable interest is manifested here

by the action of the Baltimore Clearing House Association in denying The. Equitable Mortgage & Trust Company, which was recently organized, the privilege of clearing its daily items as an associate member. At the present time the trust companies of this city transact their exchanges through member banks and the action of the Clearing House was somewhat of a surprise. The reason assigned is that trust companies do not abide by the Clearing House rules, especially in regard to making charges for the collection of out-of-town checks. The Clearing House management asserts that it would not sanction any new trust companies receiving clearing privileges unless they consent to abide by the rules.

It is a fact that a majority, if not all, the trust companies of this city would willingly abide by the Clearing House rules and adopt a uniform method of collection on out-oftown checks. The reason they object is that the Clearing House has an arbitrary rule which exempts from the collection charge rule all accounts in banks and trust companies opened prior to 1907. This works in favor of the National banks as the older institutions and as having a large propor▾ tion of accounts opened before 1897. Likewise this rule would place trust companies at a distinct disadvantage inasmuch as they have the largest volume of new accounts. If the Clearing House would abrogate this discriminatory ruling and place all accounts upon an equal basis, there is assurance that the trust companies would obey the rules of the Association. Under the circumstances it is easy to see that the trust companies are justified in assuming the position they take.

It is hardly likely that the Clearing House will seriously consider the pending resolution which requires all member banks to cease acting as clearing agents for associate trust companies which do not abide by the collection rule. Enlightened local financial and banking sentiment is clearly opposed to the policies pursued by the Clearing House management and holds its actions as responsible for the loss of many valuable accounts and the ridiculously small holdings of out-of-town bank balances. Out-of-town

bank accounts are attracted to Pittsburgh, Philadelphia and other cities where better facilities and greater inducements are offered. This applies to the accounts of many of the banking institutions which are within the Baltimore zone.

Success of an Atlanta (Ga.) Trust Company

Announcement was recently made of an increase in the capital stock of the Hillyer Trust Company of Atlanta, Ga., from $230,000 to $500,000, and an increase in surplus from $50,000 to $100,000. Co-incident with this increase, which become effective September 1, the title of the company was changed from the Hillyer Trust Company to the Atlanta Trust Company. The directors have also declared an extra dividend of 1 per cent. in connection with the semiannual dividend of 2 per cent.. which places the stock on a 5 per cent. basis.

The Atlanta Trust Company has made a record of success which has commanded the admiration of banking and trust company interests throughout the South. It handles important corporation trusts and agencies which formerly were centered in New York. The facilities of the company to handle trust company business of all kinds has brought in a large volume of trust assignments. The assets now exceed $1,000,000, exclusive of trust holdings. The company was organized in 1910 and is an outgrowth of the Hillyer Investment Company which commenced business in 1906 and made a specialty of municipal bonds. The company also conducts a bond department through which many high-class southern investments are handled. In fact the activities of the Atlanta Trust Company range over most of the Southern States and it is entitled to recognition as one of the best conducted trust companies in that section.

The officers are: Henry Hillyer. president; George S. Lowndes, vice-president, Wm. Hurd Hillyer, vice-president and treasurer, T. G. Trippe, trust officer and J. Scott Todd, Jr., secretary.

The Elizabeth Trust Company has completed organization at Elizabeth, N. J., with a capital of $100,000. George Schmidt, Jr., is president; Michael Bender and Julius Isaacs, vice-presidents; and Edward R. Rawlings. secretary and treasurer. Mr. Rawlings has resigned his position in the Trust Company of Georgia to accept this position.

It is of interest to note that thousands of banks are abandoning the balancing of passbooks once a month and are adopting the monthly statement system. Effective plans along this line have been worked out by the Department of System Service of the Burroughs Adding Machine Company. This department has made a study of the question, and as a result have been able to suggest systems for many prominent banks throughout the country, a study of the particular needs of each bank being made in each instance, and a system suggested to fit those needs without interfering with the other work of the bank in any way. In every instance very satisfactory results were obtained, and the officials of the banks are delighted with the system.

Because of the preference of most banks to fit the work to the bank system instead of adjusting the bank system to the work, many different plans of handling the work have been worked out. Probably the most effective plan in use is the one in use in a number of Southern banks, including the Fort Worth National. This plan is the idea of Mr. M. L. Stith of the Fort Worth office of the Burroughs Adding Machine Company. Here is the Fort Worth National plan:

Index cards of thin stock were made the regular size of a check and placed in an alphabetical file. The depositor's signature is pasted on the index tab, so that on all checks filed the signature can be identified instantly. All checks and deposit slips of each customer are filed back of the individual index cards. This card has a space for each month, covering a period of two years, for entering the current balance.

The work of making out the statement is evenly distributed throughout the month, and each depositor's statement is sent out on the same day each month. The statements are divided into groups, with index cards of different colors for each group. Depositors represented by red index cards receive statements the first of the month; blue cards mean that statements are to be sent between the fifth and the tenth; green between the tenth and the fifteenth, etc., for the whole month. On the sixth for instance, all checks filed behind blue cards are taken from the file. The adding machine operator then secures the previous day's balance from the bookkeeper, for all depositors represented.

The previous month's balance is now listed on the statement sheet from the index

of all deposit slips in order of date are listed under it. The total is printed near the bottom of the sheet, one space being left for printing in the credit balance, if there is one. On the debit side all checks are listed. The form used is wide enough to accommodate two columns of figures. When the checks are all listed, a sum total is taken. A few spaces below this, the previous day's balance as obtained from the bookkeeper is listed. The total in the machine should agree with the total on the credit side. Thus the statement man and the bookkeeper verify cach other's work. The total in the machine is now printed on the debit side. The balance is listed on the credit side, the eliminating key being used, so as to leave the machine clear for the next statement.

The new balance is then entered on the index card and the card re-filed. The tancelled checks and statements are sent to the customer and the deposit slips filed. The system has many advantages. Each customer receives a regular monthly statement, so that errors can be discovered and rectified at once. The customer retains continual possession of his pass-book, his only receipt for deposits.

The bank is never flooded with work of this kind at the busiest time, the first of the month. There is no overflow of work at any time. The files do not become overcrowded with cancelled checks that dare not be removed from the files till pass-books come in. The customer is better pleased after he becomes used to the system.

The Burroughs Adding Machine Entertains Bankers

Nearly 2,000 bankers and their wives, in attendance at the recent American Bankers' Association Convention at Detroit, were entertained at luncheon by the Burroughs Adding Machine Company at its general offices on Monday, September 9th. The luncheon was given in a big tent erected on the baseball grounds, and the Burroughs' own band furnished music. The attendance of bankers was so large that department heads, branch managers, executives and the whole office force were pressed into the situation to take care of the guests. After the luncheon, the delegates and their wives took a trip through the Burroughs model factory, and were unreserved in their expressions of praise for the wonderful machine tools and the army of skilled workmen engaged in making the Burroughs Adding Machines.