The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-12-26

one Of the notable features - mod
ern financial development is the es-
Ia olishment Of trust companies as BUS
mess orGa niZations to manage eXGlu-
slyeiy large estates or trusts In thu
city of Hohoken. y. J.. there is a mod
est little trust company, which trans
acts all the business In connection with
the colossal gifts of Andrew Carnegie
/ Tor educational and charitable pur-
passes, In connection with the great
Rockefeller donations a sn-caiied
foundation has been created and q
board of trustees appointed to admin
Z, lister The affairs growing out az
| these donations. This board Of trus-
tees is in principle and effect a trust
company 1t is an plification Of
| the enduring principles Of corporate
/ administration Of trusts as represent
ed by the modern trust company. In
various cities men Of great fortune es-
pecially where they had large holdings
of real estate, have formed so-ealleGi
personal trust companies These trust
companies are chartered dnder the
laws Of the respective States and nave
all the powers usually given 10 full
Pledged trust companies. The only
difference is that these trust COM
panies are exclusively engaged IN
handling the property or trusts Gre
dtSu AS some QN0 man VINO leaves Il
large fortune. The primary reason
for the creation of such personal trust
companies is that a practically per-
petual corporation is created to full
fill the provisions Of the trust which
may have q life extending over many
generations Instead OF having the
affairs of the estate handled through
the offices OF some attorney Or group
or private trustees, all the details are
centered in one corporation with u
skilled head and able assistants The
corporation is surrounded with statu-
tory safeguards and amenabie To the
same laws as the public trust COM
panies. Moreover. systems and bItSi-
ness methods are introduced. which
the personal trustee or attorney could
never obtain in connection with all
his other duties and personal inter
estS.
As new conditions and exigeucles
arise the modern trust company is
being hroadened in its work, All in
Trreaslng number OF large estates are
being trasferred to tn CUSTODY Of trust
companies because of the general APP
probation of the MANY advanta ges
which corporate trusieeShips offer,
The courts presents SO many -laring
instances OF betrayal of trusts by In
dividuals that there is no other alter
native left to the conscientious man
of affairs who wishes.tu make proper
provision for those dependent upon
him In the event OF his death. II may
be truly said that the trust company
as -fiduciary agent is still IN Its in
FAINT stage of growth. although II now
has custody of wealth which is es-
,inated i'll excess Of thirty-five billions
OF dollars. An excellent illustration
was afforded by the recent order Of
the United States Supreme Court in
ordering the dissolution of The Ameri-
can Tobacco Trust This corpora
I tion had outstanding stock and vari-
Gus classes OF bond issues. After care
ful study it was decided that the best
aaency 10 employ in carrying out tn.
, court order OF dissolution was the
trust company Consequently one OF
the leading trust com panies in New
York city established what might be
termed dissolution department. 7
and through that department all the
details Of this great dissolution Of =