Carnegie Trust Company Dividends Superintendent of Banks George C. Van Tuyl, in charge of the liquidation of the Carnegie Trust Company, has applied for permission to the Supreme Court to distribute a second dividend of 10 per cent. upon all claims filed up to October 12, 1912; also for permission to distribute a supplemental first dividend of 25 per cent. upon all claims filed and allowed between February 21, 1912, and October 9, 1912, upon which no dividend has been paid. The status of the assets warrant the belief that all trust creditors will be paid in full although no definite information is available as to the probable amount which will be eventually paid on all allowed claims.

Unless licensed by the State Superintendent of Banks, a bank situated in another State may not make loans upon real estate located in this State, is the substance of an opinion rendered recently by Attorney General Carmody.

*Not including extra dividend.

† New Stock.

New York Brevities

Savings banks cannot prefer deposits of postal savings banks or of court funds through a pledge of collateral securities, nor can they guarantee a fixed interest on such funds, according to a recent opinion by Attorney General Carmody, given to the State Superintendent of Banking.

The Irving National Bank has been approved reserve agent for the National Bank of Commerce of Toledo, O., the Merchants' National Bank of Boston, Mass., the Conway National Bank of Conway, N. H., and the First National Bank of Moravia, N. Y.

In an opinion rendered by Attorney General Carmody it is held that a private banker, not subject to the supervision of the State Superintendent of Banks, nor required by law to report to that office, and organized after May 23, 1885, may not use the word "bank" in connection with his business.

Judge Lovett and Frank Trumbull have been elected directors of the National City Bank of New York, to fill vacancies.

Philadelphia

Special Correspondence

Codification of State Corporation Laws Owing largely to the general agitation which seems to be a necessity with Presidential campaigns there has been considerable attention directed to the wisdom of securing greater uniformity in the laws of the various States governing corporations. Pennsylvania is one of the States which has been fortunately immune from the criticism which has been directed against Delaware, Maine and New Jersey. Nevertheless there is a sentiment among banking and financial interests that a general codification of the corporation laws, together with the elimination of inconsistent provisions and some important amendments might be made in order to place corporations upon a still higher standard. It is in deference largely to this sentiment and because there are conflicting provisions in the general incorporation act of 1874, a legislative commission, including representatives of the Senate and House of Representatives of the State legislature, has drafted a general incorporation bill. The provisions are specifically aimed toward the prohibition of methods which lead to "watering" of stock, excessive inflation or security issue, and the functions of holding companies. Inasmuch as there are a number of important so-called "holding companies" in this State it would seem the part of wisdom to draft amendments which shall not stultify the industrial prestige of this State. Some sweeping changes are proposed in the draft which has been submitted to officers of banks and trust companies for review and criticisms. It is proposed that no corporation shall own more than 20 per cent. of the stock of any other corporation and that. no new stock may be issued by a corporation except with the approval of appraisers appointed by the State.

It is also understood that this legislative commission will take up at a later date a general codification and amendments to the laws of the State governing trust companies and banks. In no other State in the Union have trust companies contributed so much to the prosperity of a commonwealth as in Pennsylvania. There have been fewer trust company failures in Pennsylvania, in proportion to number of companies in existence, than in any other State. Their functions have been clearly defined by the laws. However, much good

Philadelphia Pennsylvania

The Colonial Trust Company

Market at Thirteenth

Philadelphia

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.

could be accomplished by codifying the laws, eliminating some inconsistent provisions and especially in amending the laws governing taxation. Most of the older trust cial charters granted by act of legislature companies conduct their business under spe niany years ago and these should not be interfered with by any half-baked or radical new amendments.

Girard National Bank Increases Its

Dividend Rate

By recent action of, the board of directors the dividend rate of the Girard National Bank has been increased from 14 to 16 per cent. annually, thus placing the bank among the group of five National banks of this city which pay the largest dividend on their stock. Four of these banks which pay 16 per cent. have smaller capital than the Girard. The Fourth Street National Bank has $3,000,000 and pays 14 per cent. According to the last official report the Girard has aggregate resources of $51,361,000, deposits of $43,388,000, capital of $2,000,000 and surplus and undivided profits of $4,900,369.

Land Title and Trust Company Establishes Higher Dividend Rate

The progress and successful expansion of the business of the Land Title & Trust Company is reflected in the recent action of the directors in placing the regular annual dividend rate upon a basis of 14 per cent. as compared with 12 per cent. last year. This increase was foreshadowed by the fact that last year the company paid an extra dividend of 2 per cent. in addition to the regular rate of 12 per cent. According to a recent report the assets of the company have increased to $17,888,200 as compared with $15,951,890 reported last May 3, 1912. According to the official report of last May the capital amounted to $2,000,000, surplus and undivided profits to $3,850,701, total trust fund holdings to $24,418,000 and the face value of corporate trusts to over $96,000,000.

Shareholders of the Land Title & Trust Company at their last annual meeting, voted to amend the constitution so as to abolish examinations of the institution by public accountants. This was done because since the company is a member of the Clearing House it is regularly examined by that body, besides being examined by the State Banking Department and the stockholders, so that additional examinations were deemed an unnecessary annoyance and expense. Directors were re-elected without change.

Increased Activity Creates Exceptional

Demand for Bank Accommodation During the first three weeks of October there was an unusually heavy demand from both the city customers and from interior banks for money with the result that call rates moved up to over 5 per cent. and to 6 per cent. for time money. It was found necessary to call loans both at home and in New York in order to satisfy the unusual demand. During the last week of October the flow of money to the banks and trust companies was greater than the shipments and there was comparative ease establishment in the money market. It is the general conviction, however, that high rates will continue during the remaining months of the year. The large demand for funds was due to requests for accommodation from banks of inland cities and the South, reflecting renewed industrial and business activity. There is also marked activity in iron and steel and manufacturing circles in this vicinity which necessitated large borrowings.

Pennsylvania Company Officers Promoted

Arthur V. Morton, treasurer of the Pennsylvania Company for Insurances on Lives and Granting Annuities, has been promoted by the board of directors to vice-president, to fill the vacancy caused by the resignation of Thomas S. Gates, who became president of the Philadelphia Trust Safe Deposit and Insurance Company. Jay Gates, trust offcer, has been made an additional vice-president, the number having been increased to two. C. S. Newhall, assistant treasurer, has been elected treasurer in Mr. Morton's place. Thomas Craven, who has been connected with the real estate department for many years, has been made real estate officer, a newly created office.

Colonial Trust Company Building Plan

The Colonial Trust Company has under consideration the erection of a bank and office building on the lot at the northeast corner of 13th and Market streets, occupied by its present bank building and by the store property, 1237 Market street, adjoining. The whole lot has a frontage on Market street of 40 feet, with a depth on Thirteenth street of 100 feet. It is assessed at $560,000, and it is reported that the company has recently refused an offer of $850,000 for the lot, which is at the rate of about $21,000 per front foot. The trust company bought the lot about eight years ago for about $540,000. No definite plans have yet been decided on for the building, which the company plans to erect except that the whole of the first floor will be given over to the company's use.

The Colonial Trust Company was organized in 1899 and according to the official report of last May has capital of $500.000, surplus and undivided profits of $280,701 and deposits of $1,101,562. Harvey L. Elkins is president.

Philadelphia Brevities

October interest payments in Philadelphia aggregate $6.225,800, being the third largest of any month this year to date, and exceeding April in which month these disbursements were $5,149,500.

At the annual meeting of the stockholders of the Germantown Trust Company, the retiring members of the board of directors were re-elected for a term of three years.

The reflection of the widespread increase in employment being given to labor in this section is being shown in an expansion in saving deposits. In the last three months the gain reached $600.000.

Boston

Special Correspondence

Significance of Banking and Trust Company Consolidations

The sweeping changes which have developed in the local banking and trust company situation during the past ten or twelve years reveal three distinct tendencies, namely, the remarkable decrease in the number of National banks due to absorption, the increase in number and volume of business commanded by the trust companies and the establishment of large bank and trust company units. These tendencies have been exhibited in contemporary banking affairs in most leading cities. But Boston, perhaps, illustrates the modern trend most forcibly. The recent announcement of the absorption of the Eliot National Bank by the big National Shawmut Bank, following closely upon the merger of the Merchants' National and State National and also the consolidation of the Fourth National and Atlantic National banks, directs general attention to the decrease in number of National banks. In 1881 Boston was a great center of National banking growth with 62 banks conducting business under Federal charters. Trust companies were few and comparatively uninfluential at that time. With the absorption of three National banks within recent months the number of such institutions in this city has been reduced since 1881 from 62 to 20, of which fourteen are members of the Clearing House Association, excluding the Eliot, which is to be liquidated and taken over by the National Shawmut Bank. In 1898 there were fourteen trust companies in Boston and today there are nineteen such companies.

But the decrease in National banking facilities appears on the surface only. The absorptions and liquidations have contributed toward greater National bank units and stability. Naturally there has been a reduction in National banking capital, the decrease since 1881 being from $53,850,000 to $32,000,000. In other words, there has been a decrease in number of National banks of 65 per cent. in thirty years and a decrease of 40 per cent. in capital. In 1898 there were 52 National banks with capital of $47,750,000, surplus and undivided profits of $21,252,000 and deposits of $204,804,000. In 1909 capital had decreased to $22,650,000, surplus and undivided profits had increased to $25,268,000 and deposits to $273,770,000. The 14 trust companies in existence in 1898

had total capital of $7,850,000, surplus and undivided profits of $6,935,000 and deposits of $81,865,000. In 1909 the 19 established trust companies had aggregate capital of $11,750,000, surplus and undivided profits of $23,920,000 and deposits of $184,643,000. During ten years the deposits of trust companies increased 125 per cent, while National bank deposits during the same period increased 44 per cent. A recent statement of the Boston Clearing House, including fifteen of the twenty-two National banks in the city, showed total deposits of $190,993,000, $78,987,000 due banks. The latest official reforts of the nineteen trust companies in this city shows total capital of $15,050,000, not including a recent increase of $1,000,000 in capital stock of the Old Colony Trust Company; surplus and undivided profits of $27,164,898 and deposits of $217,315,871. The combined deposits of trust companies, therefore, practically exceed those of the Associated National banks of the city when it is considered that the deposits of National banks, due other banks, etc., include the large balances which the trust companies maintain with National bank clearing agents.

It is not difficult to define the reasons which have contributed to the remarkable