Evening journal., 1911-03-15
BIG CLASH OVER
One LITTLE WORD
Bill WOuId Restrict the Use
Of the Word Trust in
Charters Of Corporations

Special 10 THE EVENING JOURNAL.
DOVER, Del. March i5-A hearing
was given By the Senate committee on
corporations yesterday on the bill in
trOduced by Senator Monaghan to pre-
vent the indiscriminate use of the
word trust" in titles of companies
chartered in Delaware.
John S. Rossell, secretary OF the Sc
curity Trust and Safe Deposit Com
pany of Wilmington. was present and
advocated the bill. He said that most
states Of the Union had law similar
to that being asked for Delaware, and
be called upon the committee to enact
the law for the credit and honor of the
state
Some lawyers representing COM
panies engaged in the charter business
opposed the bill on the ground that It
would cause every company having the
word trust" In its title chartered un-
der Delaware laws, that was not ac-
tually engaged In the trust business to
amend its charter
A suggestion was made that a conf
promise be agreed upon TO provide
that companies hereafter to be char
tered shall not be permitted to use the
tually engaged In the trust business
and required to report to the insur-
ance commissioner. This probably will
be done The substitute bill advocated
by Mr. Rossell in behalf OF the bank
ing and trust companies is as follows {:
Section !. That every corporation
now existing or hereafter created un-
der the Laws OF Delaware, using the
q . hsI
be under the supervision of the Insur-
ance Commissioner of the State and
shall make not less than two reports
during each year TO the said Insurance
Commissioner. according to the form
which shall be prescribed by him,
verified by the oaths or afiirmations of
the President or Nice-President, and
the Treasurer or Secretary of such
corporation, and attested by the sig
natures of at least three directors /;
provided that corporations now exist
ing shall not be required TO make such
reports until after the first day of
June, A. d., 1911.
Section 2 That no corporation now
existing or hereafter created under
the Laws of Delaware shall use the
word Trust" as part of its name. eN-
ttlb AOA lOidNbhH itlbi AIAlE " anu hll-
der the supervision of the Insurance
Commissioner OF the State; nor shall
the name Of any corporation now eN-
listing be amended so as TO include the
word Trust" unless such corporation
shall report to and be under the super
vision of the Insurance Commissioners
OF the State.
Section 3. That no person, firm, as
sociation of persons, or corporation
now existing or hereafter created uu-
der the Laws OF Delaware. except only
corporations reporting to and under
| the supervision Of the Insurance Com.
missioner Of the State, shall advertise
or put forth any sign as a Trust Com
pany, or in any way solicit or receive
deposits OF transact business as
Trust Company, or use the wor'
Trust" as a part Of his, their or IL
name; and any violation hereof shal
constitute a misdemeanOr and on con
viction thereof the offender shall bl
fined in a sum not exceeding five hun
! dred dollars for each offense; provid
ed, that nothing herein contained shal
be construed to prevent any individual
as such, from acting in any trust ca.
pacity, as now allowed by law
Section T. That all acts or parts OF
acts inconsistent herewith be and the
same are hereby repealed
Section 5. That this act shall take
effect from and after the date Of Us
passage