Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1907-02-05

The Wisconsin Valley Trust company
a new financial institution for this city
has just been organized and licensed to
do business by the state of Wisconsin
There has been, all over the country, 8
growing demand for just such com
panies as this and they have been
organized in many of the different cit
les throughout the country which are
of sufficient size to warrant. They fill
a new place in financial affairs and the
history of their growth shows that they
have come to stay.
The object of this company, as its
name implies, is to receive money for
safe investment upon proper security
and to act as trustee generally, such as
executor, guardian or any other legal
trustee. 1t is therefore plain that be-
fore such company can or should be
authorized to do h1siness, the state
should throw around it certain safe
guards which will serve as sure pro-
lection TO those whose money it re-
ceives. Before such a corporation can
be authorized to do business in Wiscon-
sin it must have paid in cash its full
capital stock of at least $4,000. 1t
must deposit with the state treasurer, to
be held as security for its depositors, at
least S25, 900 GO in real estate mortgages
or bonds on unincumbered real estate
ko rA- - IS NICnnnCIn
double the amount of the loan, upon
which there has been no default, either
of interest or principal, for more than
thirty days, and in addition it must
have been examined by the State Bank
E aminer. All of these things
have been done and the State Bank
Examiner found this company had, in
all respects, com piled with the law, and
therefore issued his license to do bust
ness.
The organization of this company is
the result of a growth rather than a
launching OF strictly new business
The incorporators and stockholders
are the members of the law firm of
Kreutzer, Bird & Rosenberg, who have
been engaged in the business of loan
ing money for clients for the last fifteen
years. The firm was organized in 1900,
but before that the different members
had been engaged in the same business
under different partnerships. During
all of that time these parties have loaned
many thousands of dollars of money be-
longing to numerous clints upon real
estate loans in Marathon county, and
have never yet lost dollar of any of
the money so loaned 1t is therefore
evident that the knowledge and expert
ence which they have obtained during
all these years is sure criterion that
the business of the company will be
conducted in perfectly safe, conserv
alive and reliable manner
Anyone conversant with the business
of loaning money knows that it is al
most impossible to make the terms of
any particular mortgage, both as to
ohOuhu, blAiC, CbO., 81 bLdJ ~ Will OulU uuC
person who is borrowing the money,
and at the same time, one who has
money to loan. For instance, farmer
may desire to borrow $4,000 on five
years time. 1t will take good deal of
scurrying around to find particular in
dividual who has just $500 90 to put out
for just five years time. One man may
have Sl00 90 that he wants out for three
years; another $4,000 that he wants
out for two years, etc. This is always
one of the difficulties in the loaning
business and is solved by a trust COM
pany. The trust company issues its
certificates to its depositors for just
such time and amount as the depositor
desires. The trust company then loans
the money, which it has, to borrowers
for just such time and amount as each
particular borrower desires Thus,
each is accommodated and the whole
fund of the loans stands as security for
the whole amount of deposits Thus,
even if it should develop that any one
particular mortgage might turn out with
loss, yet no particular person is called
upon to stand that loss, and no de-
positor takes any such risk, and no de-
position can have any: loss unless the
whole fund of the mortgages turn out
to be poor investments, which has never
happened anywhere in investment mat
tiers, not even in the bankrupt days of
Kansas. But in addition to the security
of all these mortgages there is the full
capital stock paid in cash, so that the
members of the company have put in
their $50, 600 90, which stands as pledge
for the payment of the depositors,
money as it becomes due, should any of
the mortgages for any reason prove to
be poor. And further than that, there
is deposited at least S25, 200 90 of
mortgages with the state treasurer, the
State Bank Examiner has examined the
company, and its assets, just the same
as it examines bank, and the company
is required to make reports to the state
at least five times year of it's actual
financial condition and the shape of its
Investments. 1t is therefore plain that
under this method of organization, alb
solute security to depositors is obtained,
and also perfect convenience as to time
and amount of their investment, if such
a thing is possible to do by any human
ingenuity whatever.
The difference between the business
of trust company and bank is very
plain. The bank is not authorized to
make loans upon real estate, but must
loan its money at short time upon COM
mercial paper. On the contrary, the
trust company cannot loan upon COM
mercial paper, but must make its loans
practically upon real estate security.
The trust company does not receive
open deposits against which checks may
be drawn. Neither does it sell drafts
or exchanpe or do any af thaSa things