Among the institutions in the South which have played an important part in the development of that rapidly growing section, the Mercantile Trust & Deposit Company of Baltimore occupies a conspicuous place. Founded in 1884, with a capital of $500,000, it has steadily extended its activity until the capital now amounts to $1,500,000 and the surplus and undivided profits have grown to $3,139,782. Moreover, since the first dividend date, January 1, 1889, dividends have been paid regularly and with a gradual increase in rate until the annual dividend now amounts to fourteen per cent.

The Mercantile Trust & Deposit Company was the second to begin business in Baltimore, and it has continued to follow the spirit of the pioneer in its own proper realm by being interested in developing the street railways of Atlanta, Norfolk, Charlotte and Augusta. It has also been actively engaged in the financing of such standard railroads as the Seaboard & Roanoke, Raleigh & Augusta, Raleigh & Gaston, South Bound, Georgia Southern & Florida and other important roads which have opened

the South to modern business activities and to the opportunities which the South affords. The company still continues its progressiveness in the South, and is at present interested in aiding the growth of Baltimore public utilities.

The first president of the company was General John Gill who acted in that capacity until 1910, when he retired after twentysix years of effective service, to become chairman of the board of directors. General Gill was succeeded in the presidency by Mr. A. H. S. Post, who began his business career about twenty years ago with the trust company, and who by reason of his faithful and consistent attention to duty and to the welfare of the company, has been promoted from time to time until he is now its active head.

The Building of this old trust company was directly in the path of the great Baltimore fire which swept the city in 1904; but the building was of such substantial construction that it was not damaged to any great extent, and the company was able to open its vaults, and to give access to

its customers immediately after the fire lines had been withdrawn. This in itself is an illustration of the stability which has characterized the growth of this sound financial institution.

A substantial part of the business of the company is that transacted by its trust department which is absolutely separate and distinct from the banking department. The company has thus complied not only with the letter, but with the spirit of the law in keeping its trust identity separate and distinct from all other interests. At the same time it has offered its services in all of the capacities properly exercised by trust companies, and has given the benefit of its long experience and its most careful attention to all duties entrusted to its care. The statement from the trust department shows that the company has almost $20,000,000 in trust funds; that it is trustee under corporate nortgages aggregating over $146,000,000 and that it is subject to annual inspection by the State of Maryland as well as stated examinations by its stockholders, directors and certified accountants. These figures, together with the steady growth of the company, indicate the position which it holds in the development of southern industry.

The company's statement as of December 30, 1911, shows aggregate resources of $14,975,352, including time loans of $1,527,454; demand loans, $4,176,036 and cash on hand and in banks, $1,460,960. The capital is $1,500,000, surplus and undivided profits, $3,130,782 and total deposits $10,344.570. The officers are as follows: A. H. S. Post, president; Wilton Snowden, vice-president; J. R. Walker, second vice-president; John McHenry, treasurer; T. H. Fitchett, secretary and assistant treasurer, and C. I. Reynolds, assistant secretary.

The board of directors consists of the following: W. W. Spence, E. Austin Jenkins, Stewart Brown, Aubrey Pearre, H. A. Orrick, Blanchard Randall, Lawrason Riggs, John D. Howard, J. B. Ramsay, Decatur H. Miller, Simon Rosenburg, John K. Shaw, William B. Hurst, Howard E. Young. Edwin G. Baetjer, Theodore F. Krug, Jacob B. Cahn, Walter B. Brooks, Solomon Frank, John Black, William B. Oliver, Alexander C. Nelson, R. Brent Keyser, Charles A. Webb, Harry C. Black, W. W. Lanahan, Wilton Snowden, A. H. S. Post, Alonzo Potter, Robert J. Lowry and Hon. Henry G. Davis.

The Asbury Park Trust Company recently opened for business in its new and permanent home in the old post office building at the corner of Madison avenue and Emory street. This young trust company, having purchased its building, has every reason for a prosperous future. The offices have been fitted up with marble and bronze fixtures, and model provision has been made for the accommodation of patrons of the institution. The building is complete in equipment, with large burglar proof safes and storage vaults, and with the most improved safe deposit boxes of various sizes. Mr. William J. Couse is president of the company and Mr. Francis H. Schilling is treasurer.

Largest and Heaviest Bank Vault Equip

ment in the World

The Herring-Hall-Marvin Safe Company recently completed and shipped from its factory at Hamilton, Ohio, the largest and strongest bank vault equipment ever constructed, for installation in the new Bankers' Trust Company building in New York City. This building at the northwest corner of Wall and Nassau streets, is provided with three stories below the street level, the lowest of which is devoted to the power plant and the other two to storage purposes and the enormous vaults, which are the largest in the world. The inside of this great strong box measures 22 feet 71⁄2 inches in height, 27 feet 9 inches width and over 29 feet in depth. The walls, ceiling and bottom are four inches thick, consisting of four separate layers of drill-proof plates. Two feet of concrete surrounds the steel lining, embedding 85 pounds, per lineal yard, of railroad rails set on staggered centers, & inches apart.

The vault is divided into two floors, the lower being 13 feet in height and the upper 9 feet 71⁄2 inches. A stair connects both floors and space is allowed for the future installation of an electric lift. Separate safes to the number of 102 are provided for, with accommodations for 160 safes varying from 3 to 4 feet in width and 6 feet high. The vault is also equipped with one main and one emergency entrance. These doors are supplied with every modern safeguard. The thickness of the main door is 60 inches and it is equipped with the best combination locks. The mechanical and electrical features are of the most complete character. To insure against the possibility of locking clerks into the vault an electric system connecting with a six-inch vibrating gong is placed on the inside. Further safeguards include a telephone connection. The weight of this immense vault with its interior fittings is 1.550

tons.

POUGHKEEPSIE TRUST COMPANY BUILDING, POUGHKEEPSIE, N. Y.

The Continental & Commercial Trust & Savings Bank of Chicago in its statement of condition at the close of business June 14, 1912, shows total resources of $227,903.751. The surplus and undivided profits have reached $9,191,142, and the deposits, $188,443,911.

LIABILITY OF BANK DIRECTORS

We have discussed occasionally the extent of the liability of bank and trust company directors to depositors and investors, and have indicated the tendency of the courts to hold bank officials and directors to a strict account in their dealings with those who entrust money to their care. The point is again well illustrated in the recent case of Thomas vs. Taylor, decided by the Supreme Court of the United States.

It appeared that the Citizen's National Bank of Saratoga Springs, New York, was in financial difficulty. Prior to March 1, 1904, the Comptroller of the Currency informed the directors by letter that certain specified assets, amounting to $194,107.02, must be regarded as doubtful, and that immediate steps should be taken for their collection or removal from the bank. In April, the bank made a report of its condition to the Comptroller, verified by the cashier, and attested by the directors.

In this report

were included the doubtful assets as a part of the resources of the bank. The contents of this report were communicated to the plaintiff and upon the strength of the favorable showing he invested in stock of the bank. In June the bank received notice from the Comptroller that its capital had become totally impaired, and that the same must be supplied by an assessment upon the stockholders. The plaintiff was compelled to pay $3000 on account of the stock which he had recently purchased.

The Supreme Court decided that the directors were liable to the plaintiff for this extra assessment, for the reason that the plaintiff was compelled to pay it because of the false report which the directors had made. They knowingly made a false report and were therefore liable under the statute. The fact that the report was re

quired by the Comptroller did not relieve the defendant directors from responsibility to the plaintiff who bought stock.

SHARES OF STOCK HELD BY TRUST COMPANY AS SECURITY FOR BONDS-RECENT TRUST AGREEMENT CONSTRUED

The recent case of Missouri Pacific Railway vs. Mercantile Trust Company (75 Misc. 10), decided by the Supreme Court of New York, indicates the care which a trust company takes in preserving the rights of the parties in bond issues, and is also important as construing a deed of trust whereby shares of stock are pledged to secure various issues of bonds.

The action was brought by the railroad company to recover possession of 27,450 shares of stock of the par value of $2,745,000. The stock had been owned by the St. Louis, Iron Mountain and Southern Railway Company, the predecessor of the plaintiff company, and had been transferred to the trust company under a trust indenture to secure the issue of bonds. The important provisions of this indenture were as follows:

"Whereas the Railway Company has duly determined and resolved to secure the payment of the principal and interest of said bonds by executing this trust indenture and by depositing with the Mercantile Trust Company, as trustee, subject to the trusts and conditions hereof, ten (10) shares of the capital stock of St. Louis, Iron Mountain & Southern Railway Company for every $1,000 par value of said bonds issued hereunder;" and the following: "Article Second. The bonds authorized to be issued under and secured by this trust indenture shall immediately upon the execution and delivery hereof, or as soon thereafter as may from.