Evening journal., 1909-10-09
MANAGEMENT OF
TRUST ACCOUNTS
Equitable Co. Official Writes
His Observations on the
Subject

Francis A. Cooch. assistant to the
trust officer OF the Equitable Guaran-
tee and Trust Company, contributes
an article on "Some Observations and
Comparisons Regarding Management Of
Trust Accounts by Individuals and
Corporations" to the current number
OF 'Trust Companies"
For over fifteen years past. the
writer Of this article has been in a po-
sition to observe the manner in which
accounts are kept by individuals and
corporations, having in charge the set
tlcnIent Of estates or trustoeships,
guardianships and tho like.
In such n case naturally. one would
be led to make comparisons and such
comparisons could not but be favor
able TO tho method Of keeping and
rendering accounts. both ia, the courts
and 20 the individual parties at in
ferest as practiccd by the well con-
Quoted trust company. IN quite num-
ber OF cases where an individual IS
appointed in a fiduciary capacity, the
appointee whilo nttod 10 conduct his
own business affairs more or less cap
ably. IS quite az sea when II comes to
the settlement of an account according
10 the legal requirements. and much
Oft tho appointee IS one OF abso-
lutely no business experience or ca
lpacity whatever. Unfortunately. how
ever, In such cases with tho confidence
born OF ignorance. he or sho continues
until the affairs OF the estate are al
lmost inextricably tangled. The average
executor. trustee. guardian or receiver,
not only does not have the
facilities for the care and
MANAGEMENT Of accounts, but also will
not ia nineteen cases out OF twenty
take the same care that corporation
would
THE trust company will render ac-
counts periodically with each transne-
fion accounted for in detail and to the
cent Not only are these accounts rem
dered 20 the courts IN accordance with
The laws or as required by the proper
oficlals. but the parties in interest re-
ceivo regular statements Of the con-
dition Of the accounts In which they
are Interested. The trust company
seeking the confidence OF its patrons
Keeps them as fully informed as possi-
Bile or the conduct OF their affairs. on
the other hand the average individual
resents any inquiry into the conduct
of trust as a personal reelection upon
himself and at the same time does not
deem IL necessary TO acquaint the bene-
ficiaries OF the trust with the condi-
tons that arise from timo 10 time.
If honest he feels that his knowledge
~ the fact Is sufficient: II dishonest
or Incompetent he has still greater
reasons Tor secrecy and the unfortu-
nate benehclarlos. either because OF
dindence on their part or because Of
rebuffs and continued procrastinations,
allow matters 20 drift until chaos en-
sues
In this state and presumably in
others tho executor or administrator "a
required TO present an account TO the
court once a year; as guardian or as
trustee by appointment Of the Court
OF Chancery not oftener than once n
two years II iE quite obvious that n
the space of one or moro years. con
Hioerablen 1Nnortunity may arise 10
carelcssnoss ofN dishonesty Win du
respect FOR some very. careful and con
scientious officials. it is none the Iesl
true that quite often the careless and
incompetent md their way into public
ofice and Furthermore, II an account
appears to be correct on the surface.
it is but natural ia tho absence OF
positive evidence 10 the contrary TO
assume that the accounting IS correct.
OF course. months or years after, the
beneficiary may discover that he or
she has been defrauded or the estate
wasted, hut that viii hardly compen-
safe where insufficient bond has been