The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1903-02-21
TRUST COMPANIES PROSPER
Total Resources $2o4, ,l27. .2o3
Statistics for the
Year 1902
Especial to .sThe Jersey city News.''j

Especial to ssEhs Jersey City Nsws-"5
TRENTON, Feb. p, 1oo8.--In re-
port submitted to Governor Murphy yes
terday concerning the operations of the
financial institutions of the State. the
Department Of Banking and Insurance
makes answer to the recent attack of
Vice Chancellor Pitney upon trust COM
palies, and incidentally upon the depart
ment itself. The department takes the
ground that savings banks and trust COM
panies have each a distinct sphere and
that they do not interfere with one an
other. Discussing the relations of these
two classes of institutions the Banking
and Insurance Commissioner says:
As indicated By their reports, our
savings banks, trust companies and banks
Of discount and deposit, with hardly
single exception, have prospered during
the~past year. The very large increase
in the deposits. resources and numbers
of trust companies. which far exceeds
the growth Of any previous year, is, how
ever, the NEST striking feature of the
data herein presented. Yet, notwith-
standing the great gains made by these
companies and the many new ones in the
held. the returns Of the savings banks
show the same large proportionate in
crease in number and amount Of deposits
as in preceding years, which seems to
negative the assertion that their business
is being hampered or taken away by the
trust companies.
Every trust company IS expressly au-
thorizec by law to receive deposits on in
terest, and II Is doubtless true that a
considerable proportion of their deposits
Is composed Of what substantially are
savings bank accounts. but it is also
true tnat the greater portion are bust
ness accounts which savings banks could
not get or, in any event, are not organ
lied to hold. Both GLASSES Of institutions
are recognized by the law. and it is
neither the desire nor the province Of this
department to laud or disparnsa- either
as a class While endowed with saw
ngs bank powers, trust company Is
nevertheless not savings bank, which,
without capital and governed by more
stringent regulations as to investments
and loans.
"On the other hand. the trust company
has the security afforded BY Its capital
stock. Some Of the trust companies, par
ticularly the newer ones, acting aDpar-
emily within what they believe to be their
lawful powers. and not with the intsn-
ton of violating the law, have adyer-
tised in q manner calculated to create
the impression that they we're savings
banks, contrary to the provisions of the
general savings bank act, prohibiting
other kinds Of institutions. except banks
and deposit companies when authorized
BY law to receive deposits at interest,
from advertising. soliciting or receiving
deposits as a savings hank.
Upon being admonished tp that ef-
feet the companies generally have signi-
ned their willingness to abandon the prac-
tice. In individual cases. however, it
would be unwises as well as unfair, to
the savings banks, which have long been
recognized as Of great yalue and usetal-
ness, and as rule. have served the pur-
pose Of their organization, TO do away
with the prohibition above mentioned.
so long as we are to have this sep
arate and distinct class Of institutions
I and continue the restrictive statutes en-
acted for the security of their funds, it
is but right that the law should protect
them at least TO the extent of not per-
mitting Institutions Of q different class
from holding out to the public that they
are savings banks; nor is It essential to
the success Of a genuine trust company
commercial bank that It should resort
nethods.1
sVort covers the calendar year
dr.