The Providence news. (Providence [R.I.]) 1891-1906, 1902-02-25
with Trust Companies They
Show Remarkable Growth.
THE HOLDINGS OF OEPOSITORs.
Increase In New York Last Year Greater
Than Ia Any Prevlau; Year Wliha
Single Exception

Albany. y. y, Feb @o.-The annual re-
port OF Frederick D. Kilburn. superin-
tendent of banks, will be sent 20 the Leg
isiature this week. Its shows continual
tion OF the remarkable growth of saw
ings banks and trust companies which
has marked these institutions in recent
years.
Increase of resources of savings banks
during 1901 was ss5 5i5. .ios. and in the case
OF trust companies. sl7.at0,13i. In the last
six years the savings banks have gained
ssss 4s6.ol3 IN resources, and the trust
compa nies $576..b sos National and state
discount banks in New York have in
creased their resources about Oo.0o0ooO
in the same time showing that the growth
OF the CORNER Institutions has not been at
the expolse OF the latter
There we're isS active savings banks In
the state ON Jan l. with deposits Of s2s6,-
155, ,S26 received during 1901, AN increase
of nearly SIS. 100000 over 1909. The increase
for the war tl the amount due depositors
was ss7lAi21l which is, with one eXcep-
lion the largest ever reported in one
year
RESOURCES AND ACCOUNTS.
The total resources OF savings banks at
tbs end Of ehe year were s-lSl, ,56i,62i and
the number of open accounts was s2,lI4,-
Isl. Ehe entire administration cost of
the Institutions was s3.33t.Sis. or s60s.12l
more than I'm Zoo. The franchise tax, paid
by the ba vks hast year for tho first time.
was s1054V. 50 that the actual cost of
administration was less in 1901 than I'm
1900
Sixtv-two trust companies I'm the state
reported ON Jsn. "A total capital Of s49
sS 600. with surplus anil undivided profits
amounting to .voi,72s re2. Their total re-
sources were ssS,sss.esi.
Superintendent Kifburn recommends
that tho law relative TO investments OF
capital and deposits of trust companies
be so amended as TO make its meaning
plain, II being vague as to the investment
of surplus In stocks Of private corpo-
Jations.
The superintendent believes that the
character of business which foreign
trust company may tisansact within the
sta &c should be defined Try statute, and
that reasonable provisions should he en-
acted for ascertainng whether such cor
porati sns transgress the states laws.
Fo. vEIGN TRUST COMPANIES.
.erhere should be-" says the superin-
fendent. "a statutory requirement that no
foreign trL vt company shall transact any
business in New York without having
first obtaine from the superintendent OF
banks a lice use therefor, and that the
superintendent examine such companies
at least annus My. the cost of such ex-
aminat tons TO be charged against the
company or COZ upanies so examined"
In discussing the savings banks Su-
perintendent Kilb,vrn says:
sIn nv judgment. the two exigent prob
lens in the savings bank situation are
how TO regulate inve stments by the banks
80 that, without su vrender or n single
existing element OF sa tety. there may not
- vea In n nf
income which the banks derive from that |
soufce. and how 10 cor time these insti-
tutions yet more distin ctively than Is
now the case TO the serN ice and benefit
OF the wage Garner, the widow and or
phan.and those who are unframed in bus
mess. or the sum of whose savings IL
too small for independent Investment.
New York's system of saviLgs banks
Is the best In the world. and, II i'hould be
our pride and care TO SO NAH ,tain It,
But with deposits increasing at .thc rate
NJ 80 or 20 million dollars year, II the
feld for Investment were held unchanged.
there would follow of necessity an appre-
ciation In the price OF such securitiei' un-
I'll In time II became prohibitive."
ABUSE AND A REMEDY.
Mr. Kilburn holds shat at present the
only relief needed IL 10 legalize for In
vestment a slightly larger percentage on
also the bonds of a few additional sail-
roads OF standard character. "A bill
for this purpose now In the legisla tuSe
Is recommended by the superintendent.
Superintendent points out as an abuse 4
OF the savings bank system the advan-
tnge taken OF II by investors. who put
upon the banks the burden of caring for
their large deposits and the embarrass-
ment and injustice OF causing them TO
be more or less regarded as depositaries
for these classes and as agents TO aid
them 10 escape taxation" Mr. Kilburn's
suggested remedy Is:
Fix the limit which any one person may
have on deposit I'm a single bank. or the
aggregate he may carry I'm two OF ~
or all OF them, and then require that any
one offering at any bank deposit cx-
ceedng some sum to be specified in the
law shall subscribe an oath that the de-
posit so offered will not make HIS aggre-
gate OF deposits In all banks more than
this limit Prescribe that false swear
ing fn such cases shall constitute per-
jury"