New York Brevities

A. Barton Hepburn, chairman of the board of the Chase National and president of the New York Chamber of Commerce, has been honored by the government of France by being decorated an officer of the Legion of Honor, in recognition of the part taken by the Chamber in the reception to the French Champlain delegation, which visited New York last May.

At a recent meeting of the board of directors of the Broadway Trust Company, William O. Jones, assistant cashier of the National Park Bank, Manhattan, was elected a director of the company. Mr. Jones is also a member of the local board of the Flatbush office of the Broadway Trust Company.

The Lawyers' Title Insurance & Trust Company is distributing a handsome calendar, the chief feature of which is a reproduction of P. H. Rothermel's painting representing Patrick Henry before the House of Burgesses, Virginia, 1765.

† New Stock.

Gen. Brayton Ives, who recently retired from the presidency of the Metropolitan Trust Company, has resigned as a director of the National Bank of Commerce.

William A. Nash, chairman of the board of the Corn Exchange Bank, has been elected vice-president of the New York Produce Exchange Safe Deposit & Storage Co., t succeed the late Gustav H. Schwab.

Directors of the Hudson Trust Company have added General Warren M. Healy and R. V. Lewis to their board of directors.

Directors of the Fidelity Trust Company have added Edward E. Moberly to then board.

The Union Exchange National Bank reports total resources of $13.787,409. including loans and discounts of $8,404,827 and cash and reserve $3,860,252. The deposits amount of $11,343,438.

The Coal and Iron National Bank reports total resources of $9,873,621 and deposits of $7,917,574, with capital stock of $1,000,000, surplus funds $200,000 and undivided profits $334,092.

Philadelphia

Special Correspondence

Marked Gains in Trust Funds

An interesting feature in connection with the latest official reports rendered by the trust companies of this city is the marked increase in trust funds. During the twelve months ending November 2 trust funds increased over $40,000,000 and now amount to $781,846,000. It is significant that a large proportion of this increase is made up of comparatively small estates and trusts. This is contrary to a general impression that trust companies are mainly interested in handling large estates and trusts as executor, trustee or administrator. As a matter of fact the same conscientious care and attention which is devoted to large trusts is accorded to all appointments, whether the corpus is $1,000,000 or $5,000.

The public is becoming more appreciative of the fact that the trust company offers not only a greater degree of safety in handling estates, either large or small, but that it is also a more economical agent than the individual trustee or executor. This is due to the fact that the trust department conducts its work in a systematic manner and secures a maximum of results at the minimum expenditure of time and expense. The clients of the trust companies likewise appreciate the fact that there is no attempt to burden the administration of estates or the execution of a will with legal fees but that it is to the advantage of the company to close up an estate as soon as possible. The legatees are also spared the expense of paying the cost of the bond which an individual trustee must furnish and which trust companies are not required under the law to give. Many other considerations induce the public to avail themselves of the services which trust companies render.

Twelve Months of Trust Company Growth

Earnings of Philadelphia trust companies during the past year compare favorably with previous records notwithstanding the low rates for money which prevailed during the early part of the year and during the summer. According to the compilation made by the State Banking Commissioner the 64 trust companies of this city had $41,487,928 capital on November 2, and had surplus and undivided profits of $65.943.690, which is an increase of $2,543,094, equal to 6.13 per cent. Total earnings amounted to $7.411,966, which

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, Presiden!.

is equal to 17.87 on the combined amount of capital employed and equal to 6.9 per cent. on aggregate capital, surplus and profits. In dividends the trust companies distributed $4,868,872, or 11.74 per cent. on total capital. The dividend rates ranged from 4 to 40 per cent, with 20 companies paying IO per cent. or over.

The largest companies, generally, made heavy earnings on capital alone, but not extremely large profits on combined capital, surplus and profits. For instance, the Fidelity earned 63.2 per cent on capital, and 9.1 per cent. on combined capital, surplus and profits. The earnings of the Girard Trust were respectively 41.7 per cent. and 8.3 per cent.; of the Provident, 44.8 per cent. and 7.1 per cent., and of the Philadelphia Trust 36.6 per cent. and 6.5 per cent. Some of the smaller or moderate sized companies made heavy earnings, the Frankford Trust showing 36.6 per cent. on capital and 11.8 on the combined capital, surplus and profits. The Northwestern Trust earned 28.9 per cent. and 11.2 per cent. The heaviest earnings on combined capital, surplus and profits was shown by the North Philadelphia Trust, namely, 12.0 per cent. Its earnings on capital alone were 24.6 per cent.

The average book value of the stock of all the companies is $259 per share and the average market value $228 and a fraction. Generally speaking, the stocks. of the larger companies, and those of the smaller companies which sell at very high prices and have attracted much attention in the market, are selling above book value. The less active stocks in most cases sell below book value.

Compared with a year ago, the leading items are as follows (000 omitted): Nov., 1911. Nov., 1912. .$377,901 $397,939 579,547 605,337 83,431 87,213 737,783 781,846 119,537 137,647 231,757 234,903

Deposits

Resources

Surplus

Trust funds

Loans on collateral.

Bonds, stocks, etc.

Girard Trust Company's Year

The annual report of the Girard Trust Co., as read to the stockholders at the recent annual meeting by Président Effingham B. Morris, shows the profits for the year ended Nov. 30, 1912, to have been $1,110,612. Of this sum $900,000 was distributed in dividends and the balance, exclusive of $10,000, the usual contribution to the employees' pension fund, amounting to $200,,612, was added to undivided profits. This account now stands at $2,577,129, exclusive of the value of the banking house, vaults and fixtures, the cost of which was completely paid for from current profits in past years, and charged off the books. The capital and surplus remains unchanged at $2,500,000 and $7,500,000, respectively. The total amount of accounts in the trust department is 1,900, of an approximate aggregate value of $144,000,000, against $125,000,000 last year. Since the removal of the company into its present building four years ago the total of these accounts has increased 75 per cent. The number of deposit accounts subject to check is now 14.846 The company has been appointed trustee, registrar, and in other similar capacities in 42 additional corporate matters during the year, representing issues of $68,000,000 of securities, making the net total of such issues over $1,490,000,000,

At the last regular monthly meeting of the board of directors of the Fidelity Trust Company it was decided to increase the capital stock from $2,000,000 to $4,000,000. In connection with this increase it is proposed to issue the new stock at par, and stockholders will be given the right to subscribe in the proportion of share for 'share. The proposed increase will be submitted to the stockholders for ratification at the annual meeting February 11. President Rudulph Ellis stated that this increase is justified by the large surplus of the company and desirable by reason of the large amount of trust funds held.

According to the latest official report rendered by the Fidelity Trust Company, November 2, the aggregate resources amount to $46,266,318, including reserve fund of $4972,931, loans upon call with collateral $14575,475, time loans with collateral $6,332,086; bonds, stocks, etc., $16,136,104. The paid in capital stock is $2,000,000; surplus fund is $1,000,000, undivided profits $1,825,783. Deposits aggregate $32,387,423, as compared with $26,002,827 one year ago and $24,212,000 in 1910.

The Fidelity Trust Company has heretofore paid 40 per cent. dividend on its $2,000,000 capital, and by doubling its capital it is proposed that the dividend will be reduced to 25 per cent., which will place the earnings of the company on a more equitable footing. The officers are as follows: Rudulph Ellis, president; William P. Gest, vice-president; J. P. Richardson, treasurer, and Joseph McMorris, secretary.

G. Colesbury Purves, president of the Philadelphia Saving Fund Society, has been elected a director to succeed Clement A. Griscom, deceased

The Girard National Bank

The aggregate resources of the Girard National Bank, according to the official report of November 26, amounted to $49,641,935, including loans and investments of $32,187.944. due from banks $6.961,149 and cash and reserve $8,488,042. The capital is $2,000,000, surplus and undivided profits $4.850,455 and deposits amount to $41,741,777. The officers Francis B. Reeves, president; Richard L. Austin and T. E. Wiedersheim, vicepresidents; Joseph Wayne, Jr., vice-president and cashier; and Charles F. Wignall and Charles M. Ashton, assistant cashiers.

are:

Boston

Special Correspondence

Abolition of Charges for Collection of Checks

The recent decision of the New York Clearing House Association to abolish collection charges on checks originating in the States of Massachusetts, New York, Rhode Island, Connecticut and New Jersey, providing the banks and trust companies in these States reciprocate by remitting all checks on New York members at par upon day of receipt, is viewed with general approval by banking interests in this city. Special interest is manifested in this agreement because the action of the New York Clearing House is a concession to the scientific principle which has been employed for over a decade by the Boston Clearing House in accepting and clearing all checks at par in the New England zone. It is also a general belief that the action of the New York Clearing House is but the first step in the further extension of the free collection zone and the ultimate recognition of this system throughout the United States.

Although there is almost universal approval of the action taken in New York from an academic standpoint there exists some apprehension that local banks will lose balances which will be transferred to New York. This applies especially to banks of western Massachusetts, Connecticut and Rhode Island which may prefer to keep their balances henceforth with New York banks. So long as banks in this area could not obtain free collection of Connecticut, Rhode Island and Massachusetts checks through their New York correspondents, they had no other alternative than to make use of Boston or some other reserve center. Since New York banks will not perform such service for them without charge and it will be more to their advantage to maintain balances in the banks of that city, it is not unlikely that many balances will be concentrated in that city and drawn from Boston reserve agents.

Nevertheless Boston banks and trust companies, as a rule, express entire willingness to become parties to the agreement offered by the New York Clearing House Association. At a recent meeting of the National Bank Cashiers' Association of Massachusetts held at Worcester, a resolution was passed pledging the members to handle in the same manner all checks drawn upon themselves which may be sent to them direct or through Boston banks by members of the New York Clearing House Association. provided the

New Massachusetts Incorporations

Since the first of the year the Secretary of State of Massachusetts has issued charters to 26 corporations with an authorized capitalization of $1,000,000 or over, or a total capitalization of $134,660,000 for these new organizations. For past eleven months both numbers and capitalization of new companies have established a new record. November witnessed the incorporation of 116 new companies with an authorized capitalization of $27,350,000, making the total of all new companies for the eleven months 1,325 with $203.402,300 capitalization, comparing with 1,251 companies, during the corresponding period of 1911, with an authorized capitalization of $88,614,100.