Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-05-10
COMPANY
SAFEGUARDOF
n / MONEY

Confined from page seyenteen
this figure the increase during 1912
! was s1S1, s79,7s, or a gain of 81 per
cent
Thirty-five Billions
1t will stagger the Imagination to
state the fact, that the trust COM
panies of the United States have in
their control, wealth to the value of
thirty-five billion dollars, which is
more than ne-fourth the total wealth
of the nation, and fourteen billions of
dollars more than the combined bank.
ing power of. all the national banks
and state banks reporting to the
comptroller" of the currency.
Banking Laws.
The banking laws of most states
have been framed with the single
purpose in view of making the banks
and trust companies the safest depos-1
itaries of the funds and property of
the people. In many states, a trust
company may hold both, but the idea
of separating the bushes of caring
for funds from that of property is
growing.
A Sacred Duty.
Many of the leading citizens recog-
nlZe the Importance of providing for
their familis or heirs when they pass
away. The civil, criminal and pro-
bate records of Hawaii, before the es-
Enlistment of trust companies and
in some instances since, offer elo-
quent testimony as to the careless
manner in which wills are sometimes
RI
use of trust funds, particularly where
the management has been placed in
the hands of incompetent or careless
individuals.
Widows and orphans are often
helpless in financial matters, and the
temptation is, therefore, great where
an unscrupulous person is placed in
sole charge of an estate as trustee,
executor or administrators, to misuse
funds or property in his care. In
Philadelphia recently prominent
citizen committed suicide after an ex-
posture of property and money left in
his sole care. In fact, the court rec
ords on the mainland contain great
many proofs to warrant the state
ment that every year there are milli-
ons of dollars worth of estate, funds
and property wasted or diverted, be-
cause OF the irresponsible steward
ship The officials of our own courts
testify to the fact, that there is CON
slant necessity of urging individual
trustees executors or administrators
to make and file their accounts,
which does not exist TO so great an
extent in the case of trust companies.
Providing Safeguards
IT. is in avoiding Just such losses
and in providing greater safeguards
than any one individual can give, thai
the trust company fills its greater mis-
sion. Instead of an estate being in
the hands of only one person who may
abscond, speculate or even faIsify thc|
'accolints, when the property is con
ycyed 10 a truSt company as trustee,
executor or administrator, there is a
Y hole staff of experienced men takin.
part and checking each other; and AZ
board OF eminent business men wl5i'
serve as directors; besides many otii-
or features Of protection which are
provided The trust company caunc
commit suicide, it lives from genera /
ton to generation. When an indi-t
yidual trustee dies. the court is. apt tot
appoint someone to manage the estat
ana succeed him who was utterly UNI
known TO the testator. The trust com
pany cannot run away ~ith funds in
its keeping II cannot Cd on a yaca-
ton, become the victim Of bad habits, +
or be taken i'll II has both capital
and surplus which is a protection !
fund for men, women and children
whose property is held IN trust
FirsS Dollar Vet 20 be Lest II
II is most interesting in this con |