The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-02-24
BIG qRUSF COMPANIES.
Part They Plav in the Financial 0per-
ations of the Day.
Twenty-Five Years Ago Trust Company Was
a Rarity, but Now There are Over Two Hun
drea Of Them in the United states-Law-
renee S. Mott Writes About Them, and also
Gives an Inside Glimpse of Wall Street.

New YORK, Feb, 24.--rho trust companies
OF the United States contribute an interesting
page in the history of national finance. Their
growth has been truly phenomenal. They
came up like mushrooms, but their growth
was permanent. They long ago came to stay.
There is no stopping their success Even in
panics like the present, they keep arriving on
the scene. Like all permanent financial in
Stitutions, they camo because they were
needed. They fll long felt wants. They oc-
cupy niche in the business Of banking that
had long waited for an occupant. While like
everything else that is good, thoy have their
counterIeits and consequently their failures,
they are to-day the most reliable and salts
factory Of our financial concerns.
Twenty-Five years ago trust company was
a rarity To-day there are over two hundred
Of them between Mime and California and
their resources amount to over a billion Of
dollars On the continent Of Europe and in
England, the trust company made its appear
anca before it did in America. Some Of the
strongest banking establishments abroad are
conducted on tho trust plan. The Society
Gcnerle, Of Paris, is famous in all the iinan-
ciai circles Of the world. Brussels ard AM
syerdam each boasts Of IL vigorous orgauiza-
Jion Of this sort. There are scores OF them
IN England, and nearly all tho industrial
establishments in this country that were
purchased hy the English had the ncgoia-
tions carried ON by tus. coneernsi in London,
Liverpool, Manchester Edinburgh and Gias-
gov, Their standing soon reached the top in
the way Of popularity and credit. The
Trustees. Executors and Securities lLimitedl,
of London, attained record breaking popu-
l@.ty, Us original shares were El0, equal to
fifty dollars in our money B,.ora the Barring
failure, these shares sold as high as GG0l0.
In otac" words, % share for which the early
sockh9.der paid fifty dollars was sold for
53D0lJ. No bank i'm the world ever c1ua'ed
thatracord. We have no parallel case hear.
one OF the earliest of tlo trust companies
was the Farmers Loan and Trust Co.,, Of New
York. lis origin was humble, but no sturdy
lad ever grew Hst.ruor with mora ylgor. It
is typical q, all the original institutions Of
the kind. II had a liberal charter Tho
banks at once perceived the dangerous cha
metar Of its rival, but there was no checking
its progress. II was permitted to pay inter-
est on deposits subjected TO check All trust
companies nowhaye similar privileges, They
can act as trustees, buy and sell securities,
issue bonds and sharas OF stock Of corpora
tions and make money in scorc Of ways
from which the average State or National
bank is debaucI.
Look at the Farmers Loan and Trust com
pany OF to-day. 1t owns magnificent
building at the corner Of William and Beaver
streets. It's Offices arcaI thatcould bewishod
in the way of comfort. They could easily be
elegant, but for the palmer tastes Of the Of
fcias. Prosperity has followed the corpora
ton rightalons. It's capital stoc; is 81, 100000.
Its surplus is $i0O0,OOo and yet all the
stockholders get regular dividends that are
decidedly satisfactory. It reported to the
Secretary Of State, on January 1st, that its
resources were S3l0ioOGO. It would take
a bunch Of banks to show equal assets. RIG.
Ralston is tho president. He is a short,
rather stout man, with a plain face and the
koencst Of eyes. He is so years old, but as
lively as cricket and always ready for bust
ness. There are several thousand corpora
tions throughout the country and in nearly
every State, who have mortgaged their prop
critics to this company as trustees. The
total value Of the properties whose welfare is
entrusted to this one concern is said to be
over $1O,OOOOl0,OOO.
There are twenty-five trust companies Of
merit and high standing in New York. It
isn't necessary to cnumernte them all. Their
combined capitalization is about S2O.OOO, 900.
They have a surplus Of double that amount.
Ranking in the lead with the Farmers Loan