The Washington herald., 1912-11-24

protection from sharp practice which
they can have. will come through their
dealing with members of this associa-
ton
As a result of actual satisfies re-
Gently obtained. from official sources
and through direct inquiry, it has been
ascertained that the. trust companies
of the United States are administering
the AFFAIRS and guarding interests of
estates valued at $1,000, 100000.
This vast treasure embraces real es-
tate. personal property, stocks and
bonds, mortgages, and cash, conveyed
to the safekeeping of trust companies
in accordance with instructions under
wills and instruments of trust, for the
benefit of heirs and legatees.
Among the estates managed by trust
companies are those of eminent jurists,
huanciers, bankers, capitalists, and
men who have left large fortunes
&. The same care and precautions with
which the great estates are looked
after is directed to the rapidly increas-
ing number of small estates which are
being turned over to these institutions.
The same reasons which induce the
man of large means to have a trust
company appointed as executor and ad-
ministrator of his estate to guard his
family against waste or mlsmanage-
ment after his death appeal with equal
If not greater force to the man who
has only a few thousands or the pro-
ceeds of life insurance to keep his
widow and children from poverty.
There have been important develop
ments of late to show that there is a
general awakening throughout the
country to the fact that the trust COM
pany is the only logcal and saftst
custodian of estates and trust funds.
This sentiment is largely due to the
many disclosures which appear from time
to time in public print describing the
looting of estates. mismanagement, in
competence, and application OF trust
funds to speculation. where such prop
erty and funds have been placed in the
sole custody of some individual who is
surrounded by and finally yields to temp
tation.
An examination of Probate Court rec
ords in several of the largest cities Of
the country revealed the melancholy fact
that many hundreds Of millions OF dol
lars worth OF property securities and
funds belonging to estates and which
have been placed in the hands of So
called "confidentiar' or family advisers
as executors and administrators have
been lost through needless litigation, in |
management. or defslcation.
In most instances the records Of such |
losses do not come to public notice. 1t is !
only when some tragic circumstances at !
tend a betrayal of trust that the news !
papers give an inkling OF the true con- !
1itions
An exhaustive investigation. covering |
trust companies in all the States during !
the past fifteen years, affords the re- |
result that there have been
Dnly three trust company failures where /
trust property and funds were involved.
In one of these cases the receivers have
paid OF all such trust claims in full. and
n the other two failures the liquidation
IF assets has not yet been completed. so
that 1t is not possible to state what the
Osses to preferred trust creditors will
lmount to, If there will be any.
The records in the District OF Columbia
show that there has been no sacrifice Of
my trust funds or estate property where
rust companies have had the manage
nent.
AS executor and administrator the
modern trust company represents sta
'ilitY ana permanence. Unlike the in
iVidual executor or administrator, the
rust company cannot abscOnd. cannot :
peCulate with trust funds. cannot go on
acations. or render false accounts. The
My assurance which an individual
ives is personal bond. which may or
nay not be all sufficient.
The trust Company. on the other hand.
'ners as protection its large paid-in
apital and surplus and double liability
T shareholders.
Instead of only one man or lawyer to :
dminister an estate, there is a staff
expert officers, a board of directors,
lcluding some of the most successful :
nd responsible business men in the COM :
lunity. and then there is a regular ex-
by the District banking au-
lorities.
The District trust companies are re-
uired to make heavy and satisfactory J
eposit of securities with the Comptrol-
r OF the Currency, as a direct pledge
Dr faithful performance of trust duties j
AS executor and administrator the
'ust company not only complies with :
lstrucion of the will. but it preserves
nd often increases the value of estates :
trough wise investments. through ]
mely sale of securities or real estate.
In fact, the trust company offers all
lie protection which only an institution
ith practically a perpetual existence
IN give and which is not surrounded ,
18th the dangers that beset human life. r
The Merchants National and the Ma r
onal Mechanics Banks, OF Baltimore, c
ave merged under the title of the Mer- 9
rants and Mechanics National Bank. q
he combined institut on will have az Ii
'egate resources of about 81, 00O, 900; the j.
Ipital. 100000; surplus, 100000, and X
eposits, SlS00O.O0O. L
1t will be pre-eminently the strongest n
INK in the South. D. H. Thomas, of =,
le Merchants National, will be the \
iecutive head of the combination, and n
'hn B. Ramsey, president of the Ma y
'nal Mechanics Bank, will be chair o
an of the board of directors. 81
The merged bank will occupy the for y
er Merchants Bank Building
Alexander Brown 4 Sons planned the
erger. Negotiations between the banks
ere carried on by b. II. GriswoId, or
at rirm, and u. n. thompson and Jonn
Ramsey
Primarily the directors Of both fnstitu- a
ms will, in large part, obligate them ~
Ives to provide funds for the syndi- r,
te. Every stockholder. however, will c,
entitled to participate in the syndicate Z
proportion to his holdings of stock y
he so elects. This is in accordance with IN
e purpose of those engaged in the ne Z,
tiations to place every stockholder on N
parity in the merger. N
The prices at which the syndicate will NJ
er to take stock of those stockholders NJ
10 do not elect to go into the merger "
2 so per share for National Mechan- ~
Bank stock, and S22667 per share ~ ~
: Merchants National Bank stock. the nj
r value Of National Mechanics Bank on
'ck being SO per share, and that of the Os
National Bank 800 per share o.
the same par value this would mean 81
D per share for Mechanics and SOS 81 90
Merchants. SH SE