The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-02
Law That Was Passed I'm 1898 Legal
lied Their Incorporation and
Operation.
COMBINED CAPITAL s2,s5o, 900
THEY ADMINISTER ESTATES, FLOAT
BOND ISSUES, ETC.
Not Allowed to Do n Regular Bank
ing Business, but Are Closely
Affiliated with Banks.

From a comparatively small beginning
ten years ago the era of trust companies
in Indianapolis has broadened until there
are now six trust and loan institutions here
with a total capitalization of s2.95OOOO.
These institutions do an aggregate business
of many millions of dollars a year. and
their Importance in the financial affairs of
Indianapolis and Indiana has grown to
enormous proportions.
Trust companies could not exist in In
diana until 1895. when the General Assem-
bly, adopted an act legalizing their incor,
poration and operation. The first trust
company in this city was the Indiana,
which was organized and Incorporated not
many months after the trust company act
went into effect. few months later the
Union Trust Company was launched. Then
three years passed before another institu-
tion of this kind was organized in Indian
apolis. so the trust company era in this
city. on a very large scale. really dates
back but seven years.
The Indianapolis trust companies are:
The Indiana, Incorporated in 1893. l.000eo
capital stock; the Union. Incorporated in
1855. 100000 capital stock: the Marion. in
corporated in 1896, 100000 capital stock.
The Central, Incorporated in 1900 500. 900
capital stock: the Security, incorporated in
1901. 100000 capital stock. and the Com
mercial. Incorporated in January, 1903, $780,
900 capital stock.
HAVE BEEN SUCCESSFUL.
With not a single exception the Indian
apolis trust companies have done a large
and profitable business. which is shown con-
clusively by their statements. Some of the
companies make statements but once a
year. while other of the companies make
two statements a year. All OF the compa-
MES show substantial surplus and profit
items. The surplus and profit showings of
the five companies Incorporated previously
10 this year. according TO their last state
ments are as follows: Central SIS 900: In
diana. SOS. 400; Marion. $S2 200; Security. no
showing I'm surplus and profits by last state
ment; Union. s2sl.ooo.
The question that has been bothering the
New York and general Eastern financial
community for the last several months in
regard to the safety of the collateral Sc
curities accepted by the New York trust
companies for loans amounting to millions
of dollars. and whether 1t is safe for those
companies to continue to carry on business
without a regular reserve. has not troubled
the Indianapolis financial community in re-
gard TO the indianapolis trust companies
The five local trust companies organized be-
fore 1903. according to their statements of
March and July. have cash reserves ranging
from 1914 to 80 Is per cent. OF their cash
means The average reserve OF the five
companies Is ISIS per cent The Central.
Indiana and Marion made reports this
month and the Security and Union in
March. Following were the deposits and
cash means OF the five companies according
TO their last statements:
Cash
Deposits. Means.
Central ...................... $436.32S sl02,07S
Indiana ...................... 4s77.66s ls6l. 795