BROADWAY TRUST COMPANY 754 BROADWAY Corner Eighth Street NEW YORK CITY FLATBUSH OFFICE 839 Flatbush Avenue, Brooklyn NEW UTRECHT OFFICE CAPITAL AND SURPLUS, $1,500,000 Remarkable Growth of Fidelity Trust Company The condensed statement of condition of the Fidelity Trust Company of July I contains some interesting figures. On July 1, 1908, the deposits amounted to $4,306,817. During the past four years there has been a steady yearly increase in deposits until on July 1, 1912, they amounted to $9,424,314 The total resources of the company are $11,769,497. Under the careful management of Mr. Samuel S. Conover, the president, and his able assistant officers, this trust company has developed along the lines which should characterize the activity of the modern trust company in its relation to the public. The officers are as follows: Samuel S. Conover, president; William H. Barnard and John W. Nix, vice-presidents; Andrew H. Mars, secretary; Stephen L. Viele, assistant secretary and Arthur W. Mellen, assistant secretary and trust officer. Guaranty Trust Company Although there have been numerous consolidations among banks and trust companies, the Guaranty Trust Company of New York still maintains the lead as the largest trust company in the country. Its statement of business under date of June 29 shows aggregate deposits of $10,717,191 and total resources of $239,676,631. The capital of the company amounts to $5,000,coo and what is more significant, the surplus and undivided profits total $27,029,932. Trust Companies of New York State It is noteworthy that the trust companies of New York State have experienced exceptional growth in deposits and today report higher aggregates than at any time in their history. During the period from December 21, 1911, to March 21, 1913, deposits increased $117,386,005, making the total $1,459,656,934. Aggregate resources were $1,767,563,182, a gain of $11,180,521. There are eighty-one trust companies in the State of New York. Albany, Rochester, Buffalo and Syracuse trust companies all show marked gains during the past six months. CAPITAL, $1,000,000 Trust Officer. TRUSTEES HENRY M. POPHAM William Woodward. Frederic deP. Foster. Assistant James Gore King. SURPLUS (Earned), $7,900,000 ALLOWS INTEREST ON DEPOSITS Acts as Executor, Guardian, Trustee, &c. Administers "Institutional" and Other Fiduciary Trusts Receives Securities for Safe Keeping and Collection of Income Service of Trust Company to Bondholders The Central Trust Company of New York recently brought suit in the Federal Court to foreclose the mortgage of the Ohio Southern division of the Detroit, Toledo and Ironton railroad. The principal amounts to $4,500,000 and the interest to $89.900. The action is brought under the clause in the mortgage providing for foreclosure in the case of a failure to pay interest. The activity of the trust company in bringing action indicates the care which these companies exercise in protecting the interest of bondholders as against corporations which are unable to meet the interest or to live up to their obligations. The statement of condition of the Central Trust Company of New York under date of June 30, 1912, shows total resources of $123,102,784. The deposits have reached $102,725,103. This is a gain of $3,115,139 during the past three months. The Long Island Loan & Trust Company declared a quarterly dividend of 3 per cent., payably July 1, 1912, to stockholders of record at 12 o'clock noon, June, 22, 1912. Lawyers Title Insurance & Trust Company CAPITAL AND SURPLUS $9,500,000 188 Montague St., Brooklyn Member of The New York Clearing House Association 160 Broadway, New York The Transatlantic Trust Company has been appointed fiscal agent for the Royal Hungarian Postal Savings Bank of Budapest, Hungary, for United States and Canada. The city of Tulsa, Oklahoma, has just completed the sale of $1,000,000 of bonds to the Bankers' Trust Company of New York. The bonds bear interest at the rate of 5 per cent.. and are to run for twenty years. They will be used in the improvement of the Tulsa corporation. This sale is another evidence of the importance of the trust company in the development of a municipality. John M. Stoddard and William M. St. John have been elected assistant cashiers of the National Bank of Commerce. A mortgage deed of trust given by the Interstate Chemical Corporation to the Equitable Trust Company of New York has been recently recorded in Mecklenburg, N. C. The mortgage is given to secure an issue of $1,500,000 in 6 per cent. twenty year sinking fund gold bonds. It is one of the largest transactions known to Mecklenburg County and is insignificant of the increase in the industrial development of the South. The Irving-Mercantile National Bank of New York, under the new consolidation which has been effected by the stockholders, will have a capital of $4,000,000 and a surplus of $3.000.000. One of the principal speakers at the recent convention of the Ohio Bankers' Association was Fred I. Kent, vice-president of the Bankers' Trust Company of New York. He chose as his subject "Twentieth Century Commerce and Its Regulations." Mr. Kent delivered an exceedingly valuable address upon this timely and important subject. He touched upon the question of legislative investigation of business and after detailing the various conditions surrounding our commerce, made many valuable suggestions as to the problems and their possible solution. United States Mortgage and Trust The United States Mortgage & Trust Company continues to show marked gains in its deposits. In its statement of June 20 it has total resources of $76.775.268. The total deposits are $61,005.854 as against $59.-. 069,169 reported at the close of business on the 21st day of March, 1912. Trust Company Service This company, with ample capital, large resources, and an efficient Our various departments, including banking, foreign exchange, bond, trust, transfer, reorganization and collection, are well equipped with modern facilities for transacting business promptly and economically. For these reasons we feel justified in cordially inviting the New York accounts of banks and trust companies. Guaranty Trust Company of New York Capital and Surplus, $23,000,000 Deposits, $190,000,000 Protection Against Forgery and Bank The Comptroller of the Currency has inaugurated many important reforms during the past three years in rendering the supervision and examination of National banks more effective, in awakening directors to a higher conception of their duties and liabilities and, in general, protecting the managements against mis-administration. The latest and perhaps the most important reform introduced by the Comptroller is to call upon all National banks to amend their by-laws providing for the appointment of a special examination committee composed of members of the board of directors. This committee is charged with the duty of making at least two examinations every year, giving special attention to loans and discounts and character of collateral security. These examinations are intended especially to prevent or reveal defalcations or forgery. In due time the Comptroller will submit an amendment to the National Banking Act to Congress, framed along the lines of the New York law which makes it compulsory for banks and trust companies to create special examination committees. The first official statement of condition of the Columbia-Knickerbocker Trust Company, formed by the merging of the Columbia Trust Company and the Knickerbocker Trust Company, shows total resources of $69,543,817. The total deposits amount to $59,328,397. The capital stock of the company is $2,000,000 and the surplus including undivided profits amounts to $7,079,820. This makes the new trust company one of the largest in the country. New Vice-President for Guaranty Trust Company of New York Mr. William C. Potter, president of the Intercontinental Rubber Company, has resigned that position to accept a vice-presidency of the Guaranty Trust Company of New York. Mr. Potter is a Chicago product, having been born in that city in 1874, and is the son of Edwin A. Potter, formerly president of the American Trust & Savings Bank of Chicago. Philadelphia Special Correspondence Earnings of Philadelphia Trust Companies Notwithstanding the comparatively low money rates which have prevailed during the past twelve months, the earnings of Philadelphia trust companies for the period from April 29, 1911 to May 3, 1912, amounted to 19.12 per cent. on capital and 7.5 per cent. on combined capital, surplus and undivided profits. as compared with 17.3 per cent. on capital for the year previous and 7.3 per cent. on aggregate capital, surplus and undivided profits. The earnings during the twelve months ending May 3 were $8,091,749, of which $4,702,156, or 11.11 per cent. was disbursed in dividends on capital and the remaining $3,389,593, or 8.01 per cent. was transferred to surplus account, which now amounts to $64,866,847. The average book value of the shares of all the trust companies, based on May 3 statements, is computed at $253 per share; the average market price is $221 and income yield 5.03 per cent. These figures compare with book value of $238 a year ago and market price $209. The individual figures, as compiled, show some interesting results. The Fidelity Trust Company with $2,000,000 capital reports earning from April 29, 1911, to May 3, 1912, of 64.6 per cent. on capital alone and 9.5 per cent. on combined capital, surplus and undivided profits. The Girard Trust Company earned 49.9 per cent. on $2,500,000 capital and 10 per cent. on aggregate capital, surplus and undivided profits. The Philadelphia Trust, Safe Deposit & Insurance Company earned 44.3 per cent. on capital of $1,000,000 and 7.9 on combined capital, surplus and undivided profits. The Land Title & Trust Company earned 26.9 per cent. on $2,000,000 capital and 9.2 on combined capital, surplus and undivided profits. The Commercial Trust Company earned 19.8 per cent on $1,000,000 capital; Northern Trust Company 34.1 per cent. on $500,000 capital, and West End Trust Company 14.1 per cent. on $1,000,000 capital and 6.5 per cent. on combined capital, surplus and undivided profits. The Pennsylvania Company for Insurances on Lives and Granting Annuities earned 32.7 per cent. on $2,000,000 capital and 9.7 per cent. on aggregate capital, surplus and undivided profits. The earnings of trust comparies in this city have been steadily increasing from year to year which is reflected in the marked advances in the quoted values of shares which are largely held for investment. The trust business is the most profitable source of business and in most of the so-called "old line" companies contributes the largest proportion to earnings. The success of the Philadelphia trust companies, moreover, teaches that fiduciary business, when it begins to accumulate, is a reliable and ever increasing medium of earnings. During the past year deposits increased $12.696,000, making the total $231,041,517, which is exclusive of trust funds. Pennsylvania Railroad Company Equipment Certificates Kuhn, Loeb & Company have purchased the $7,000,000 four per cent. equipment certificates, serial notes, maturing in from one to ten years, issued by the Pennsylvania Railroad Company. The new equipment notes are bought out on a basis of 4% per cent., and this is the first sale of this class of securities by the Pennsylvania Railroad Company since 1910. The proceeds will be devoted to additional equipment of the lines, east and west of Pittsburgh, including 5,000 freight cars. Trust Company Reserves A development of general interest in the local trust company situation is the marked increase in reserves carried by trust companies. While this applies particularly to trust companies in the Philadelphia Clearing House Association, which requires 20 per cent against demand deposits, the same position is voluntarily held by the larger trust companies who are not in the Clearing House. This may be due in a large measure, just at this time, to the low money rates and surplus funds. But it has become a definite, fixed policy of sound trust company management to maintain a strong reserve position. The trust companies in the Clearing House recently reported total reserves of $20,427,000 which is $3,042,000 in excess of the 20 per cent. requirement. There are not many National banks, even in central reserve cities, which can make a stronger showing than the leading trust companies of this city in regard to reserve resources. The Frankford Trust Company has increased its semi-annual dividend from 6 to 7 per cent. |