The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-01-20

on the deposit books q million dollars
and is now able to contemplate a price
for its stock as high as 1915 a share.
The general impression in banking cir
| cles in this city is that the proposed
merger cannot reasonably be criticised.
One very strong institution with total
deposits of 20 million dollars and with
| total resources of about 80 millions will
| have been created. so that the institu-
American banking institutions of that
kind.
| One of the most interesting features
| of the proposition as outlined by Presi-
dent Krech is the fact that. notwith-
standing this large merger, the capital
of the Equitable Trust company is not
to be increased. As the purchase of the
stock of the Trust Company of Amer
will entail an aggregate sum of
$500 600, and as the Equitable Trust
now possesses surplus and undivided
profits of a little over II million dollars
bankers say that it is probable that
the Equita BILE purposes to paw an extra
dividend out of this surplus with which
the stockholders of the Equitable will
be able to buy the stock of the Trust
Company Of America. The Trust Com
pany of America. however. has surplus
and undivided profits of a little over
6 millions of dollars. which. if the pur-
chase be made, will of course pass over
to the stockholders of the Equita BILE
Trust and then by their formal action
will pass into the possession of the
Equitabl Trust company
Fewer Trust Institutions.
The transaction. if completed, as it
probably will be in about two weeks
time, illustrates the recent tendency
which set strongly toward the devel-
opment of larger and more powerful
single trust institutions and against
the creation of little trust institutions
Some years ago. and especially at the
time of the great and almost unbridled
prom otiOn schemes and underwriting
propositions, a great number of new
but not very large trust institutions
was organized in New York city. Some
of them were presumably or evidently
organized for the special purpose of
financing special promotions. But it
became evident that in order to Sc
cure great business and to earn large,
but reasonable profits the little trust
institutions must give way to the larg-
er ones: as. for instance. the Trust
Company of America itself represents
a merger of seven small institutions. |
The prevalent opinion among bankers
is that not only in New York, but in |
other parts of the country. at least in |
other large financial centers, the trust |
institutions as a feature will be char |
acter1zed by large capital ample sur |
plus, adequate resources and a great |
deposit line. 1t has been observed that |
the banking department in New York l
state has not looked with disapproval |
but instead with favor. upon the con-
solidatiOn into strong banking institu- |
tions of smaller trust companies. One |
of the reasons given is that there |
seems to be greater assurance of fin |
anciaI responsibility in the case of a |
great trust institution than in that of a |
small one.
The RainbOH-Tinted Securities.
For some days now stockholders of |
the old American Tobacco company |
have been displaying as a matter of |
curious interest to their friends the |
various certificates which they have |
and which represent their in |
terest in the companies into which the !
American Tobacco company has been
dissolved If these certificates are ar
ranged SO that the borders of them
only are visible they present true pris-
matte coloringS, for the borders are
printed as whole in the colOrs of the !
rainbow, each one having its distinc-
tive fundamental color. Whether that
was due to an artistic desire or mat
ter of convenience is not known
The distribution of new stock began
early in December and the first stock
distributed represented holdings in the
United Cigars company. From early
December until January I O, these dis
tributiOns have been in progress. and
in the circular of January 10, describ-
ing certificates and warrants for a
of the common stock of
the American Tobacco company in five
Of what were formerly subsidiary
companies the announcement is made
that the distribution to the stockhold-
ers of the American Tobacco company
which began early in December, is
now finished. The impression pre-
walls here that the stockholders of the
American Tobacco company as it was
prior to December 8. are likely to re-
tain a like amount of stock in the new
American Tobacco company. Tt will
be long time, however, before the
are able to understand
the complicated mathematics which
the legal distribution of the American