The Washington times., 1915-03-26
Petitioners Claim Grant OF Fur
ther Power Would Invade
| Their Field.
ASK RE.0PENING OF CASE
In Protest to Reserve Board,
Bankers Emphasize Rights
of Act of 1890.

TIE six trust companies of the Dis
rrict today filed with the Federal Re-
serve Board Joint petition, asking
that they be given hearing to pro-
test against the granting OF licenses
by the board to national banks OF the
District which will! permit the latter
institutions to engage In trust com.
pany business, or 10 assume any or
the functions which have heretofore
been exercised by the trust compan-
les, ard denied to national banks.
The petition was made by the
American Security and Trust Com
rany. the Continental Trust Company;
the Munsey Trust Company. National
Savings and Trust Company, the
linton Trust Company, and Washlns-
ton Loan and Trust Company.
Not only do tho petitioners ask that
the board refrain from issuing such
licenses. but they request that II SUN
license has been issued to any bank
I'm the District tho board reopen the
case and reconsider its action. Recent,
" tho Federal Reserve Board granted
the National Metropolitan Bank one
Of the licenses in question.
Invades Their Field.
The trust companies contend that the
granting of trust company powers u
the national banks of the Distrist Is
not only an invasion of their field, but
that It is in contraventon of the act
of October /. 1890, providing for the IN
corporation of trust companies.
Under this law no corporation can eN'
ercisc the functions rights, and priv
ileges of a trust company whlch nas
a capita, of less than 81 looO.o 900. fourtl
OF which must be deposited as security
with the Treasury department. Fur
thcrmorc, the institution must DC IN
corporated under the act.
When the Federal Reserve act was pc
fore Congress, the paragrapn ,S as,ance ano sec @
licenses to national banks, stipulate'
that no license was to be issued in con
travention of a State law.
The heads of the trust companies u
the District. recognizing that they ma
no protection undcr this provision. !
that there we're no State laws applicao ol
in the District, busted themselves to Sc
cure an amendment. At the suggestio
companies the paragraph was amende
to read in contravention of any stat
or local law
1t Is on this express stipulation. an
the act of October |, 1890. which IN
signers of the petition maintain Is sti
in full force and effect that the case
the trust companies Is rested.
Recites Acts Power.
The petition recites the powers tina
are given to trust companies under tn
act of october. 1890. and calls attento
to the safeguards with which their busi
ness is hHdS"d about by the provision
of tie law. The section Of the reserV
act that enables the licensing of ma
tional banks, it is contcnded, does nc
stipulatc that such guarantees must b
given by the banks in their capacitic
as executors. trustees, etc.
The siSnrrS of the petition were: FC
the American Security and Trust Con
pany. 6. !. Fell, president, and, jaime
j. Hood, secretary; Continental Trus
G. ". Warden, vice preSid, mt. and NJ. .
WiufrcC. assistant secretary: Munsc
Trust, &. II. Pope, vice president. an
Wilton J. Lambert. secretary; Nationi
Savings and Trust, William D. Hoovc
president, and Charles G. Lamborn, Al
sistant secretary; Union Trust. +.
Stellwagen. president, and Edward
tGllyer. secretary; Washington Loa
and Trust. John Joy Edison, prcsiden
and Thomas Bradley, secretary.