New-York tribune., 1903-02-23
TRUST COMPANY SAFETY
No Cause for alarm IN Their Rapid
Gro1cth, K1burn Sans.

10 the Legislature savings banks trust com
panies safe deposit companies and miscellaneous
corporations Superintendent FSiIburn Of the stats
Banking Department says of ths savings bankz-
The deposits I'm 1902 exclusive of iuterazr crea-
tied agsregated s2SseZfs24 g. and the Withdrawals
s2b5, 5,99Q1l2 q. The deposits AMI withdrawals ex-
lively. the corresponding transactions IN 1901 so
that the net gain therefrom in 1892 fen short q
appears also that 81 z506o nors Of the irfereds
earned for deDositors drawn by them In casl
in 1902 than was taken in 1901 The net result
is that the amount due depositorss January last
the total Of year earlier.
or this amount S2sf45l2 . represents the ex-
S73 81 interest credited This Comparison iSel9S@s
ings Bank. which had deposits amoTnfine 10
s13OS.3oo go Dedueting this from last years total
Ss11s8 S.. which is s. 50s. % under the increase
SaSWn Sssa n n bSever 1891 and nAa4 o !, 90 m less than in
that for 1900. and si5-Gor1 more than was ever
Tb sy.er1ge inSraSe Xsar for fbe dsia aie1. 1
ed with 1900 S37 9ss.
81 si go SO 1s. Which amount is elassasd 1s
4s % dqe deposdt@,rI e., - So 20 G = q represent
calculated by placing securities at their market
value The whole number OF open accounts is
2.275,S5S. which Is an increase Of loo6Z IN year.
and is only a9 44s below the gain made in the
the surplus -, e9mPgtsd on market values , de-
naT has psnnage5tiv ibcreased in the same period
SO 260 94s 10. The loss in the former item is TO
be attributed almost IL not quite altogether 70 a
reduced estimated valuation OF the real estate OF
the banks and 20 depreciation in the market
value Of their stocks and bonds.
which any one depositor. may have to his credit
IN Inn any s sagnss VI rs osrsd or ad m 9 to Ss psop Of
ness experience and OF ample means who Use the
ryesfTnent or Il may be- for the purpose o.
escaping taxation VIII 5s excnoeo - II1 slJoS,h & ,hs
trustees of savings bank TO classify its aepos-
hA he several
IS the general practice or the banks TO pay the
IS to my mind worthy az least OF considefat9n
whether the banks would not 90 greater sooe
they should fix a higher rate Of interest, even NJ
to the formerly egstom9ry ga8 unsr & @ each and
reducing the rate on larger deposits by 50 Clucn
interest disbursements within the net earnings
Of the conditions Of the state trust companies
Mr. KiIburn says:
The increase IN the resources of trust rust co11panss
d drbs tbs fate 5ns Sff'a Sof ABOUT @ a. @ per cent From a
TO July in 1902 the growth Of these institIt'cns
RTGfseeeeq rf Tasr even ever ss Which Was at the
OF nearly 22 per cent a1nuay sI up upon opns 1 ion
But from july to January last the resources &C.
creased BY about sssO0000 if allowance re made
for the new capital brought in through the orsafs
zation OF companies, or oy thf llS.TtsT l.,es -
nv nearly Ss5 000Go0 The net increase for the year
was oe0 or hon only aPGg{ fSgd Of 'R that e aintaed in
1e1f Marvellous as has been the development tna.
these the fa lns5oTtonS s5oIt bv over 6o9 Of showing
large resources as the savings banks and ~ over
f92efoo Ss9Gs G tbe qf eena;iln statea ''S
RI1f if the trust companies have failed 70 sustain
the rate of growth which they enjoyed fof a t%Ihs %
there is certainly nothing IN the reports SuJIlLl
Dgrt2 Dg tRem TReir TG gross earnings last year @
10000 in excess of those for the year p{ =; ~
tsras. and taxes paid Of about s47500f0 Their me-
earnings as II thus bossi6@ osrewoud amount
over 40 rer cent upon the entire capitalization re-
ttbeir aegregate capital surplus and undivided
profits. The dividends paid amounted es SIons % 81
those dsbursed in 1901 The proportion Of depos1}S
on which interest is allowed remains pIa1''la-''
II is Of interest and importance to note that ths
capitai Is more than two to one while OF nationst
and State banks K is but naa {1aL ar ,hir enriTs
capital invested bonds and MORTGAGES on uIilI ~
numbered real estate worm or in At pubic SECURITIES
Which are as safe as the government itself. 49,
institutions. @ the naked prosperity which they
have enioyed ana the 1nJ o1e D minds with
forebodin lest their strength should not endure or
eoroe pnssibIe disaster originating in should
spread dstUlrbante VIII 80 VaS 6 rorrecIi2 ir
formed in the matter. and it is due also to the
companies themselves that unW4TIantgu f NI1se & M
failure Of trust company in this state with the
than that. with sir gle exception no o.uSs a. I'm irI
pany has sustained in recent years even 4- an l.n
natTnPQT
was a slow development, and not SpetI , -
rojss dvenfure These institutions are hedged anol
bv all of the legal safeguards that are IhLINu Je-
around State banks The restrictions reSdfuiihH
the loans to capital ana surplus JhaI
NAV be made are the for eact ana the CIstL
acter and frequency of exanlnatlohS are di!nr 49,
each And as a matter of fact the stock invest
uents of the trust companies are genera4ly OF =
class TO Justify confidence and assure saieIy an
the coIIateraIS held for loans, II IN some lIlsta,
such as prudent mana cement would not pGrcIlaS,5
outright are at least Immediately ConVertDte anu
the margin enforced beyond the ia ollItS S,. VIZ,
thew protect IS kept ample to prevent q poSSIul'
loss The question as regards the trUSf COM
panies Is much whether they are SdLe a.
whether they possess undue advantage over '"7
banks - g.
The question of requiring trust companies 20
carry a cash reserve equal 70 that imposed ~
banks is vested with new interest and lrlPor.s
bv the recent action of the Clearing House IN NeN
York City on the subject and by the preseIll
in the Assembly of bill dealing with IT, II -
been required by amendment of the CiearluS
House Associations constitution that every noi
member clearing through a member OF the ass"
citation shall make weekly statements OF us COZ
dition and beginning with the first of next Jul'-
shall keep in its vaults a cash reserve equdi 70
per cent of its deposits which percentage snal %
increased after eight months TO az. ana alleI l
wear 10 not less than 10 more than u as Shalt
be from time TO time fixed by the ClsaTlns Llot =
Committee But outside of the metropolis thsIe -
no such body. representing authority almost doS-
lutte and uniting within itself the best oalhIu5
Derience and most expert Judgment TO collllldIi
The enforcement of cash reserve m trust SUI u
panieS in upstate communities. ana am Vl ,s
opinion that as these IL should DC estaoHsiieA
by law
DIED AFTER BEING LOCKED UP.