The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28
Col. F. H. Fries on
The Trust Company
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surfing and securing to the investor the
proper and correct amount. and in this
way most effectuaIy guarding against
an over issue of securities.
Remembering what the trust company
is and also what it does, two essential
qualifications viii become apparent. viz:
Responsibility and Fidelity.
The responsibility of the trust company,
upon which rests much of the confidence
that it enjoys, is its capital, for this rea-
son the paid up capital should be large;
the larger the better; it should always be
sufficient to protect any interest COM
mtted to it and to insure the prompt and
easy execution of any policy that might
be to the best interest of any estate or
any business entrusted to its care. A
large estate or large business, or for
that matter, any estate or any business
rcannot and does not find the comfort and
safety in small company that it can
and does in one of large and ample CAPT.
tai. and if this is true in the administra-
ton of private estates, it is doubly so with
| large corporate interests requiring the
aid and assistance OF trust companies
with these larger company is necessity
| in order to secure the necessary re
sponsibility
| Equally important is the absolute
| fidelity or faithfulness in the DISCHARGE
Of the many and complicated uuties of
trust positions This fidelity implies not
only the Willingness to do the right thing
necessary to be done under the circum-
stances but likewise implies the neces-
sary practical and legal knowledge OF
| hot ~ 10 L.
how and when to act efficiently in each
case. as conditions arise requiring de-
cision and action.
To say that trust company thus
equipped can perform these required du.
ties better than an individual requires
very little proof. As executor it insures a
complete and successful administration of
the estate and lives to compete it. while
the personal executor however competent
may pass away before the estate comes
into his hands or before he can complete
the work. IN which case the estate may
pass into unknown and perhaps objection
able hands. and he administration and
relation be most foreign to the idea, or
wishes of the testator: or the estate may
become involved In the private affairs
OF the executor and being thus involved
suffers material loss or rum; or partially
may be shown or political influences may
bias the feelings or judgment of the per-
sonal executor, while none of these things
are probable in the case of a wei man.
aged trust company. where success de
manGs most careful execution of the
trust in every particular, and where
future business depends upon the faith
fulness with which it discharges the du-
ties incident to every trust reposed in
1t. The trust company can always be
found and is always open for business in
business hours, and its affairs are trans
acted with the promptness and exactness
OF properly equipped and well regu-
lated bank
Having discussed what the trust com
pany is, what it does and the necessity
OF large capitalization and utmost fidelity
in the discharge of its duties, it only re-
mains to examine how it does its work
Dealing largely in money affairs and
the receipt and payment of many as wei
as large sums, the trust company must
have banking department, which is run
just as any other bank, and is usually
under the direct management Of the treas
urer OF the company. who looks after all
securities and investments, and who pays
the various claims only upon properly
approved and certified vouchers. that are
presented through the proper officers and
department. All the affairs connected
with trusts of any kind come through
the trust officer, who is charged specially
with what is known as the trust depart
ment. Very near and very indispensable
to the trust department is the legal de-
partment, where al. laws affecting the
company or any OF the various trusts it
represents are carefully studied and de-
cisions very carefully reached. this fea-
ture alone is an element CT much strength
in its favor. To these departments are
added those caring for special agencies
thus the insurance department looking
after various lines of insurance. real estate
department attending to the renting and
sale of real estate; the investment de-
partment organized for making loans or
the buying and selling of standard Sc
curltles and the savings fund depart
ment that cares for the deposits of those
customers who are specially interested in
savings; thus as the business grows the
different departments are organized under
the supervision of the president and board
OF directors. who manage the whole,
harmonizing the workings, directing the
policy and scrutinizing each detail, so
hat the properly organized and well
managed trust company is a most valuable
invention of modern civlnzation, with
which no recent development in bust
ness affairs or methods can be compared
in usefulness or value.