Evening journal., 1913-02-14
A New Development of Trust Company
Management in Handling Large Estates,
Foundations and Charitable Bequesfs

details of this great dissolution of a
giant corporation were carried on 10
a successful conclusion. Another
large trust company in New York city
introduced a new system Of register
ing the commercial paper and other
obligations of corporations. One Of
the leading industrial corporations
availed itself of these facilities and
its Paper is thereby rendered more
acceptable to banks and purchasers
Of this class OF investments. In time
IL may be stated, most of the large
corporations will have their CONNER
cial paper Systematically registered
by trust companies. Special depart-
ments for this kind of work have
been introduced by trust companies
in New York, Philadelphia. Boston
and other cities Another late de-
velopment of trust company service
is in the certification of municipal
bonds and public service issues. The
"certiication department" takes over
all the details and work when a
municipality votes new bond issue
IL examines carefully into the legal
ity Of the issue, the standing and
debt status Of the municipality. IA
Inc
genulneness of the issue and prevents
forgery or overissue. These certified
securities are specially preferred by
investors and command a premium
because OF such certifcation. In
various cities of the country the
courts are in the habit of turning
over to trust companies all receiver
snip cases. Trust companies not
only liquidate such insolvent con-
Germs but in many instances CON
tinue going establishments" and
place them back on a solvent basis.
In Chicago and other leading cities
the federal courts turn over practic-
ally all of the bankruptcy cases TO
trust companies for settlement in
favor of creditors.
These are but a few OF the many
variations of trust company utility
and its adaptability to new modern
requirements. Corporations find trust
companies indispensable to act as
trustees under mortgages, to secure
issues OF bonds. The stock exchanges
OF the country require of corpora
tons that they appoint registrar and
transfer agents to prevent overissue
or forgery. Trust companies are the
general medium for such work. The
trust companies act as agents or ar
torneys for the transaction of any
business requiring escrow indentures
they collect rents, interest, dividends
attend to mortgages. act as assignee
or liquidator, as tr-stee for bond
holders and to certify bonds; man
age and invest sinking funds fo,
municipalities and corporations. re-
ceive and hold for safe keeping any
personal property or securities.
II is not strange, therefore. that
when men of wealth stop to consider
the best manner in which to dispose
OF their fortunes or provide for their
heirs that they look to the trust com
pany as the natural and safest aeen.
cy In most states the laws have
been carefully framed to hold trust
companies to strict accounting anf
proper methods in all their transac.
tlons; they are required to keer
proper cash reserve in their vanIt.
ana on deposit obligations provid,
limits to loans which NAV be extend
ed to any one corporation or individ
ual ; hold directors responsible 70
their duties; and in general to SAFE
guard the Interests Of their clients II
every proper way.