The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-04-06
TRUST COMPANIES
PROTECT FUNDS
Act as Agents for Fraternal
Societies, Lodges and Various
Other Institutions.
NEW FEATURE is POPULAR
Successful Methods OF Operation
Induce Other Organizations
to Utilize Services.

! Within recent years the number OF
| defalcationS by custodians OF the funds
/ OF fraternal societies. lodges. chart
/ table and educational institutions have
steadily decreased Tragic circum-
stances often followed the exposure OF
such betrayal Of trust. 1t was found
! that funds of suck societies and insti-
tutions had been used for speculation
and more often had been wasted
through bad Investments or incompe-
tent management. The old proverb
"everybodys business is nobody's bus
mess was illustrated in a lamentable
way by the manner in which fraternal
and charitable organizations have been
deprived of their funds
The fact that the courts record n
less number of such violations OF duty
il due almost entirely to the growing
custom OF having trust companies as
same all the obligations and burdens in
connection with the finances OF fratcr-
nal. educational and charitable organ.
iLations. The logic OF this policy has
also been appreciated by church and
religious organizations. III num-
her OF cities the funds OF religious or
Ganizations are deposited in trust com
panies. and all the duties Of receiving
moneys and eNpendins funds for the
separate church. social. hospital mis-
sionarN and educational institutions
are distributed through such agency.
MS " VI N - Il new
departure in trust company service.
large number of such companies have
established special departments and
equipments TO handle such duties. The
iaethod most frequently employed is 10
appoint the trust company as trca SUI
rer in effect. OF the lodge fraternai OF
cha ritable institution. Often the treas
urer appointed by the lodge oil insti-
tuition is 4 very busy man. and he Is
glad TO turn over the books and all
I Al tail l.,
trust company. This relieves him Of
the actual work. while At the same
time he may supervise the transactions
/ ihat call for more personal attention.
Where IL IS a lodge. there are initia-
ton fees, dues and assessments to he
collected. and payments are to be made
10 widows and children. in accordance
with death benefits. The trust com
pany attends to all these collections
and disbursements. An important fca
ture is that bond is required OF
trust companies while a personal
treasurer must give bond. ana the
cost Of II is usually met by the society
or institution for which he acts.
In the case of educational institu-
tons there may be indownments to
/ preserve including investments. II il
easily 10 be seen that q trust com
pany which has 80 largely Ia DO with
Investments is able to select better
and more profitable investments than
attends 20 all financial duties in CON
nection with operating expenses OF
educational and religious buildings.
collecting rents. attending 20 repairs.
etc.
The successful and safe manner in
which trust companies handle this
Kind OF work is inducing quasi public
and fraternal organizations TO utilize
their services more and more. Not
only is there the possibility OF mis-
appropriation OF funds by an indivi-
dual treasurer. but he may also be "a
man who, having his own important
affairs 10 look after therefore, has not
The time or the necessary facilities to
perform his work economically or with
accuracy Where trust companies have
established special departments under
the management OF an expert, the work
is done with expedition and with saw
ing 10 the society or institution FOR
which such services are performed.
Al one OF the recent ma tional as
semblies of the representatives and
ministers Of one of the most powerful
religious denominations a resolution
was passed to have all the general and
separate funds deposited with trust
companies Special attention was di-
rected AT the business meeting Of the
assembly to the excellent services
which trust companies offer in that
line. This action was also due, in
measure. TO number of defalcations
of church funds by trusted" custo-
dams Several weeks ago the an
nouncement was made in the publica-
ton devoted TO trust company inter
ests that leading trust company In
Ottawa, Ontario. had beef appointed
10 take charge Of the funds and finan-
cial transactions incident 10 the man
asement OF the Anglican Diocese OF OF
tawa. This was done. il was explained
in the interests of economy and eff
cheney
creasing reliance placed in trust COM
pany management recorded in
Baltimore. where woman left in
structions IN her will that her fortune
should be used for the benefit OF hu-
mainly and appointing a trust COM
pany in that city TO attend to the full
I iillment OF her wishes in conjunction
with the head OF the Catholic diocese