New-York tribune., 1906-10-17
BANKERS AT ST. LOUIS.
Trust and SaTingS Bank Sections
Hold Meetings.

NJ
.,es section was called to order at the Olympic
7-,satre simultaneously with the gathering Of
-. savings banks section az Schuyler Memorial
z5s1l The meeting OF the association as q whole
,u not take place until Tomorrow
considerable opposition developed to-day at
she session Of the currency reform conference
held 81 the Jefferson Hotel. before the following
resolutions, in part. were adopted:
resolved That it is the sense Of the conference
,bat the present supply of currency is made
nat for The needs Of our growing country.
T-bst the said currency is not sufficiently hex-
ihle % iii the requirements of our agricultural
sections.
laws are necessary and expedent-
THAT Congress be requested TO pass laws look
ing II the correction Of these conditions.
Hundreds Of prominent bankers, representing
,,sry state and territory Well the United
States dependencies, are here as delegates. and
officers Of the association place the total attend
snre. including delegates and unaccredited Wis
iro-s al four thousand.
The principal meeting Of to-day was the elev-
sYrb annual assembly of the trust company sec
tjor. which was called TO order by Clark WILL
tsus yice-president OF the Columbia Trust Com
rsny of New York and president of the sec
ton The address Of welcome was made by Mr..
Festus J. Wade. president of the Mercantile
Trust Company. Of 81. Louis.
President Clark Williams replied 10 the ad-
dress Of welcome anG delivered his annual ad-
dress saying in part
From a small beginning ten years ago, the
trust companies section has become a great
power with its seen hundred members. whose
assets run into the billions of dollars. The enor-
nous growth of the trust company system
the result Of the demands Of existing business
conditions and the progressive spirit Of our
times. has required response from this organi-
cation and are under an ever increasing re-
spOnsibility 10 that the power which in US
lies is directed 10 the protection and safeguard
ing a our institution
some good may come from the catastrophe Of
the Real Estate Trust Company failure al thil-
sdelpha and the Stensland bank at Chicago, II
only in the practical lessons we may learn OF
lasting benefit Nothing could more clearly
5e,,,orsfrsra The wisdom ~ the policy in advo-
eating adequate state supervision. II seems 10
have been 50 lacking in this particular case that
the trust companies of Pennsylvania are con-
sids~fnc the adyfsa biIiry Of calling general con-
venton 70 demand relief from present unsatis-
factory conditions.
panv official. not only TO his institution, but 70
himself. TO adopt such means as are best calcu-
lated 10 keep the directors Of his company close
ly in touch with its affairs not only by formal
renorr bur by requiring their frequent personal
examination Of the cash, securities and loans
The annual report Of the secretary. James r.
Branch. Of New York showed a credit balance
for the fiscal year ended September 1, 1906, of
S59s 66. one hundred and thirteen trust COM
aCCeQ
| 1905. charging the present membership 70
rs the largest in the history Of the section.
Pierre JAY Bank Commissioner for the State
of Msssa chusetts. vas then introduced. He said,
in part:
The president Of large surety company re-
Gently told ne that his company had averaged
one bank embezzlement case month for the
zst twenty-five years. When you consider that
asre are eight or other surety companies
suing fidelity bonds 70 bank employees: ~hich
are probably having proportionately similar ex-
psrienCes, and when you consider tnat perhaps
fWo our Of three of the minor embeZZlements
never reach the surety companies. but are mace
good by relatives and frlends, or are chareeo 10
profit and loss. ! think l am safe in estimating
that new case of hank embezzlement is being
discovered in the United states on every DAY
in the year.
Let Us remember that no manscan embezzle
without the opportunity. and while II is impos-
sibe 10 devise a system which shall be embezzle-
rent proof IL IS nevertheless the duty OF tnoso
IN charge Of banking institutions. in justice not
only n their depositors and stockholders but
sso n their employees. TO attempt 10 reduce the
number Of opportunities for embezzlement TO
the minimum How can this best be accom-
First-By esta blishing a thorough system Of
Sero-5ETbe hest accounting system obtain
able having been installed. the entries made uI'-
der II should be audited frequently as pos
sibe While proper systems OF accounting ana
auditing will never altogether prevent oetalca-
tons, they viii al least act as powerful oeler-
rent on those who might otherwise take advan-
1sge Of loose systems, and they VIII, pehe'e
serve 10 detect most irregularities In thelr carry
stages
But however serious such defalcations OF
tslers. bookkeepers and clerks may be, they are
not 20 be conlps red in disastrous results. with
the making OF excessive or unsound loans ana
investments by trusted officers or banks. OF
which Chicago Philadelphia and Boston nave
each had such fagrant cases during the last rev
months. and which has caused the fa1lure or
nearly every hank which has gone down in
normal times.
The convention was then addressed by Con-
troIer Ridgely, who said. in part:
There should he the closest bond Of sympathy.
even Y there IS friendly rivalry, between the
national bank system. state banks and trust
companies There is q place Tor eacn kho OF
hank and each has field. II IS not so much
question Of quantity Of banking business zone
rs il Is the quality done. Whatever success the
achieved has not been especially because tley
we're ably managed as because they were non
estly aged, and they have made remark
able record.
The following resolution, introduced By Festus
J Wade. Of s.. Louis. first vice-president Of the
section, adopted:
Resolved That should a commission or COM
rittee be appointed by the American Bankers
Association 10 formulate plan TO be recon-
inended 10 Congress for the purpose or creauns
credit or emergency currency, IL is IIe
sense of this convention that such conlnnls-
fon or committee, II appointed. should have ae
some oS its members a sufficient number OF trust
company officials 20 represent the importance OF
The trust companies as financial institutions.
A. the afternoon session Of the trust company
section Festus J. wade was elected president
and Philip s Babcock yice-president of the
Colonial Trust Company Of New York. was
elected VICE president. Ralph W. Cutler OF
Hartford Conn was chosen member Of the
tkecutive committee The section convention