Evening star., 1915-04-02
TEXT Of PROTEST FILED
BY TRUST COMPANIES
Reserve Board Replies in Matter of
Granting New Functions to
National Banks.
Markets Closed for the Day-Treas
ury Deficit Reduced-Emergency
Currency Showing.
BY 1. A. FLEMING.

The text of the protest of the six
trust companies doing business in
Washington against the granting OF
authority to national banks of the city
io act as administrators, executors and
rccistrars and of the reply thereto of
F. a. nelano. vice governor OF the
hoard, have been made public.
The trust companies cited the fact
that they were organized under the act
nf Congress entitled AN act to provide
for the Incorporation of trust. loan and
rfnrtgage ,Ofnpa nies and certain other
corporations within the District of Co
'umbia"
Under their respective charters
-r4nJeu in pursuance of the provi-
IONS of these local laws. they are
Iothed now. and have been continuous
~ for many years. and In all cases
prior to December %. 1913, with gen.
eral powers of trust companies" says
me protest
These charter rights and privilege
- so act are valuable, and could be.
md were. acquired by the protesting
,ompanies only through strict complf.
aure with all the provisions and re-
quirements of said local laws. which
imposed significant liability on their Of
1cers. double liability on their stock
holders. required a capitalization of not
tass than 81 900. 900 and provided that
All its property. together with the liza
rtiity of stockholders and officers I'm
posed under the laws above referred to,
-hould he security for the faithful per-
formance of it's duties as trustee. ex-
~cutor. administrator. etc. and should
he liza BILE in case of any default what
ever; and in case OF insolvency or dis
solution the debts due from the COM
nany as trustee. executor. admins
traitor. etc, shall have preference"
The protest then AYERS that IT is the
intent of the federal reserve board to
evtend these special privileges to ma
rional banks In the District. and voices
the belief OF the counsel and officers
Of the trust companies that no cor
roration possesses the right to per-
form these functions. unless organized
rsss than s1.0oo,Ooo capital: that said
ational banks were organized under
The provisions of the national banking
ct of 1864. as amended. and many
100000 and none complying with
the provisions of the local law on or
-anization OF trust companies.
They declare that the granting Of this
special permit would be In contraven-
ton TO the local law OF the District of
Columbia. as IT now exists and existed
prior to the passage of the federal re-
serve act. and that 'it was unaltered,
unaffected and unrepealed as to the
instant matter by any Of the provisions Of
ssid act"
The protestants ask that, IL any per-
u1it has been granted under the ruling
rf the board the question be reopened
and reconsidered by the federal reserve
hoard. They then asked the privilege
Of appearing before the board and ex-
pressing their views of the matter.
Vice Governor Delano's Reply.
Vice Gov. F.. A. Delano. in acknowl-
sdging receipt of the protest and re-
citing some Of the paragraphs Of the
protestants' declaration. says:
Your request has been submitted to
and considered by the board, and I am
authorised to say in reply:
.(l) That applications for permission