The Washington times., 1912-04-21

take advantage OF new stock issues
d,n, lime ear. and again, OF Increasing dividend
to shareholders in public utilities.
Bank shares have value in the
market far above the book value; on
utilities, and they carry with tittu
obligations that are not attached 10
utilities--that Is, in the event OF suspen-
A million deposits Of oPd a Seventh street
bank would not be as valuable to a
fourteenth street institution, provided
Ihe seventh street bank was to be
bank.
1t is a complex problem, but IL there
are any millions Of deposits offered in
and iio5,Ooo per million there will i''ie be
buyers.
,,i,, a man In washington with a cool
million could do most anything in
w ashlngton II he had the nerve to use
1t In the local market occasionally.
Operating expenses of trust COM
panies presumably near a par with the
cost Of running the larger national
banks and savings institutions average
| from about 32SS to 40 per cent.
, These figures are based on the earn
ings OF the trust companies last year.
| The minimum expense record of 1911
In the trust companies of this city was
made by the National Savings and
] Trust Company-one of the best organ
| lied as to system in the country 1t
has million capital and earned on this
amount 21.8 per cent; gross earnings.
337,
The American Security and Trust
Company, on it's $S.000,ooo capital, earned
| 1913 per cent: gross earnings, $55S, sos;
ings. s369,2T3.
Union Trust, on It's s2,0OoOo capital,
earned ear led 7S3 per cent; gross earnings,
L
Washington Loan and Trust on its
million capital earned IA per cent; gross
1881; net earnings, sl46,6l1. The COM
I pany made large improvements, which
unquestionably increased expenses.
=, The United States Trust Company.
then the baby trust company, earned
6.2s per cent on capital; gross, s123, ,552;
expenses s6o,5sS; net earnings. ss2, ,964.
The National Savings and Trust Com
amsrcan 1ns aa sesSpty IsSS!sed sprpas Prpis
| Union Trust, s273, $685. and the Washing
ton Loan and Trust, $1,oO0,000. Counting
the capital and surplus the returns
| from the business was much less than
the ratio shown.
The big earnings were made on the
big surplus backing up the capital. Ma
counts its million above capital as ''un-
divided profits" not surplus. The Unit
ed States Trust Company also has a
modest undivided profit.
The shadow of the great disaster was
over the local security market just as
lit was over the entire city of WASH
ingtOn and the world itself Financial
Washington lost in the death of Mr..
Clarence Moore, man of honor and of
Importance, member of the we'll
& Co. The senior of the firm is one
OF the busiest operators and one of the
most important on the local exchange.
He was absent from the city during the
traders generally felt the depression.
the result being a narrow movement in
stocks.
Gas and Railway stocks were the onIy
ones In which there was any activity
Both were strong and closed on a high
er basis than week ago-much higher.
Bonds were In good demand. The
demand light. and banks are in the
market for good issues as employment
for their surplus funds. All issues were
!. decidedly strong, with more than aver
I age activity:
Rumors of another national bank are
, in the air. 1t is to be hoped that it
| Will prove like many in the past-either
: premature or impossible of to float it,
| beyond the air.
What is the value of the metal bank
business? This Is an interesting prob
lem.
, The banks cost a dollar. The maker
of the banks agrees to distribute a GER
tain number of them among the peo-
) pie, securing the first dollar which
goes to the bank, and pays for the
= safes, but he also demands in addition
payment for each account secured.
t varying from 81 to ST.
5 1t would be a cheap way Of securing
= accounts If they averaged anything
} like the ordinary accounts in savings
in many instances, and in others they
have been failures. In one instance 81
, was paid for accounts of this character
) by prominent concern, and the value
9 OF these accounts at the end of the
: year did not average over 81 This con-
; Germ has block OF metal banks
t for sale at so cents each.
! Courage Of the kind exhibited during
the recent great disaster " scores of
men is that of the highest manhood.
No man who has not heen tested knows
s TO a certainty Just what he would do
$ under like circumstances. Self-preser-
vaton is one of the first laws.
S 1t is, therefore, wise to Judge not,
T least ye be judged"
l.. IT is stated that B. II. warner has
e associated with him in his new trust
o. company venture some very strong
D New York men.