Evening journal., 1913-02-14

One of the most notable features Of
modern financial development is the
establishment of trust companies as
business organizations 10 manage ex-
clusively large estates or trusts. In
the city of Hoboken, New Jersey,
there is a modest little trust COM
pany, which transacts all the busi-
ness in connection with the colossal
gifts Of Andrew Carnegie for educa-
tional and charitable purposes. In
connection with the great Rockefeller
donations a so-called foundation"
has been created and a board of trus-
tees appointed to administer the af-
fairs growing out of these donations.
This board of trustees is in princi-
pie and effect a trust company. It is
an exemplification of the enduring
principles of corporate administra-
tion of trusts as represented by the
modern trust company. In various
cities men Of great fortune, especial
ly where they had large holdings Of
real estate, have formed so-called
personal trust companies. These trust
Companies are chartered under the
law of the respective states and have
all the powers usually given to full
fedged trust companies. The only
difference is that these trust compan-
les are exclusively engaged in ham
ding the property or trusts created
by some one man who leaves a large
fortune. The primary reason for the
creation of such personal trust COM
panies is that a practically perpetual
corporation is a life extending over
many generations. Instead Of having
the affairs of the estate handled
through the offices Of some attorney
or group Of private trustees, all the
details are centered al one corpora
tion with a skilled head and able
assistants. The corporation is sur
rounded with statutory safeguards
and amenable to the same laws as
the public trust companies. Moreover,
systems and business methods are
introduced which the personal trustee
or attorney could never obtain in
connection with all his Other duties
and personal interests.
AS new conditions and exigencies
arise the modern trust company is
being broadened in its work. An In
creasing number of large estates are
being transferred to the custody of
trust companies because Of the gen.
eral appreciation OF the many advan-
tages which corporate truss seeships
offer The courts present so many
glaring instances of betrayal of
trusts by individuals that there is no
other alternative left to the conscien-
tious man of affairs who wishes to
make proper provision for those de-
pendent~upon him in the event of his
death. It may be truly sd that the
trust company as a fiduciary agent
is still In its infant stage of growth.
although 1t now has custody of a
wealth which his estimated in excess
of thirty-five billions of dollars. An
excellent illustration was afforded by
the recent order of the Uaited States
SuDreue Court in ordering the disso-
luton of the American Tobacco
Trust" This corporation had out
stanfing stock and various classes
of bond issues. After careful study
it was decided that the best agency
TO employ in carrying out the court
order of dissolution was the trust
company. Consequently one Of the
leading trust companies in New York
city established what might be
termed a dissolution department
and through that department all the