The Washington times., 1911-01-22
TRUST COMP PAN|ES
AND THEIR PROFITS
Five Local Organizations
Did a Gross Business of
$1,53O,638 in 1910,
By I. A. FLEMING.

Washington trust companies during
1910 enjoyed the most prosperous year, 8
record of their career. That they were
able to accumulate gross earnings of
s1,530,e33 and to assimilate s943.3S5 net
earnings for the benefit of their share
holders and the institutions themselves
is an evidence Of their increasing popu-
larity together with the broadness of
their charters, which permit of loaning
on real estate, acting as trustee for
corporate and other mortgages and in
the matter of wills and various other
functions incident to the banking busi-
ness.
The gross earningS during 1910 We're
sl46,s 30 greater than in 1903, and the net
showed an increase Of S33,SO8
The American Security and Trust
Company by reason of its enormous
business as trustee Of corporate mort
cages and because OF the large number
of valuable estates committed to its
charge and other matters leads the list
with s5s0.2S3 gross and 1896, 7O7 net earn
ings. The National Savings and Trust
Company, with its enormous savings ac-
counts, is second with s2s6, $50 gross and
$4,000 net
After these come the Washington
Loan and Trust with S27S, rs gross
and S1H,169 net: the Union Trust with
s2o9.549 gross and S143,S55 net and the
United States Trust Company, organ
lied in 1907. with Sl1G61S gross and $685.
407 net.
Operating expenses in the conduct of
the trust companies are interesting. The
figures are as follows:
Name. Pct.
American Security and Trust 90
National Savings and Trust. "a
Union Trust .,.... -
Washington Loan and Trust Co... Al
The American Security and Trust
Company. because Of its greater bust
ness, the larger amounts of trusts, ETC.,
operates on a smaller percentage of its
gross receipts than any of the other
companies. The Washington Loan and
Trust has the largest percentage of
operating expenses. a fact probably due
to the comparatively large banking busi-
ness of the institution.
The figures of net earnings on capital
are interesting. showing the National
Savings and Trust Company in the lead
with 1874 per cent, followed by the
Washington Loan and Trust, American
Security, Union Trust, and United
States Trust Company in order named.
The increase in net earnings during
the year was very evenly distributed,
and in no case did 1t exceed / per cent
for any one trust company.
The table published above gives the
facts and figures in comparative form
and Is interesting as showing the prog
ress Of the five trust corporations.
The movement on the part of the
Washington Clearing House Association,
having In view the interchange of credit
Information, Is step In the right direc-
tlon-to the end that an overextension
of credit accommodations may be
stopped. 1t would necessitate, first of
all, the appointment of an official whose
duty II would be to receive these re-
ports from individual banks relating to
individual borrowers, tabulate the total
and report that So-and-so was a total
borrower to the aggregate amount, this
report to be made on application of any
member. But the official
would absolutely have to keep his in
formation in detail absolutely conf
Dental.
1t is not at all probable that the plan
WILL pass beyond the incipient stage
Banking conditions here are peculiar,
and the constant fight for deposits leads
the fraternity to make concessions and
to do much business free of charge that
would otherwise innure to the profits of
the stockholders. An interchange of
in the matter of credits
might lead to a further getting together,
for the elimination of check kiting; the
drawing of cash against checks that
may tie cash from four days to a week;
the establishment of a scale of collec-
tons and the elimination of costly
favors, small IN the individual amount
but large in the aggregate
Atlanta bankers have established this
method of interchange of credit in
to their collective and indi-
vidual advantage.