The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-10-06
CHAS. n. HuTTiG, or ST. LOUIS,
SEEMS CERTAIN or THE
PRESIDENCY.
TRUST COMPANY CLASS
Held Business Session Yesterday
Oliver Fuller Elected President
Several Speeches De
livered Yesterday.

Los Angeles, Oct. 5.--The selection
Of Chas. H. Huttig, president Of the
Third National Bank, Of st, Louis, as
next chairman Of the executive coun
ell OF the American Bankers Associa
| tion made almost certainty today by
the withdrawal of William George, OF
Aurora, Ill,
Interest in the work Of the visiting
bankers centered today in the busi
ness of the trust company class, and
the annual meeting of the secretaries
of the State Bankers Associations.
Oliver G. Fuller. of Milwaukee, was
elected president Of the trust com
pany division Members of the eXecu'
tive committees were selected as fol
lows: j. C. Drake, of Los Angeles
NV. c. Piollon, OF New York; Randall
Taylor, OF Philadelphia; Isaac II, Orr
of ST. Louis; f. e. Boy, of Boston.
In the state secretaries meeting
w. r. Keyser, of SeGalla, Mo, was
chosen president to succeed Fred Il
Farnsworth
"Should the ownership Of shares In
banks continue to be represented by
certificates commercially negotiable
was'the subject of a paper in the trust
company section, read by Col f. Fl
Fries, of New York, IN the absence OF
IStuyvesant Fish.
Other addresses were made by VII
liam c. Poillon, of New York; VIM
NJ. Baldwin. aof Cleveland; Edgal
isstarRe Of csneinnatis isaae IA 0rr
| OF ST, Iouis; r. J. Parsons, of New
York Edward 0. Stanley, Of New
Yok, and others.
An Auditing Department.
The advantages to be derived by :
trust company in maintaining an
auditing department rather than hav
ing periodical audits from the outside
wore set forth in an address by w
I'M. Baldwin, Assistant Treasurer OF
the Citizens Savings and Trust Com
pany Of Cleveland, 0. Mr.. Baldwin
said in part:
Nowadays we hear much about
the advantages derived by bank
Ithat has periodical audits by expert
accountants made Of its accounts and
business transactions. in addition tC
the examinations conducted by the
national or state examiners. We ar;
told that these Independent examina
tons inspire the confidence of tins
public IN the financial institution hav
ling them made. 1t Is my purpose In
this paper. however. to demonstrate
to you the superior advantages of al
Auditing Department maintained by
a trust company over periodica
audit made BY an Independent audi
company. @r%Eiy
THE primary function of an audi
is to check over the bookkeeping ac
counts and securities, not only of the
bank having the audit made, but also
of every trust Of which the bank Il
custodian OF secondary Importance i:
the ascertaining that the methods
used by the trust company are mod
ern and that all purchases and ex
penditures made are made upon TN,
most economical basis possible. With
these premises | am sure that yo,
will all agree, no matter how you may
differ with me from the conclusions
drawn.
Nov, | ask you, Is 1t not better
that this checking should be done b,
a man who can watch such transac
lions, and perform such work dali,
rather than at stated periods?
True If there have been mistake,
made, the periodical audit will dis
close them, but it will only show tha
hey have been going On for some
length of time and enable the vast,
or loss to be stopped Ia the future
Had the institution in which sucl
errors We're discovered maintaired al
auditing department OF It's owa, thes,
mistakes would have been found ou
on the veV day they occurred. ant
the bank would have saved just 81
much.
1T has been oftentimes objectei
that the maintaining Of an Auditins
Department is nothing more or hes
than the establishment of system
OF espionage upon the employees am
officials Of the bank. No employe
however who is worthy of the name
ever places opposition In the way o.
the auditor He realizes that 1t is {
check upon his own work and fol
mat very reason welcomes II. More
over 1t mast be remembered that M
individual has yet been found wht
Is infallible. and II errors are dIscov
| cred by the auditor they can be rem,