New-York tribune., 1920-02-26
Banking Institutions to
Manage Property, Made
Up of Private Gifts.
for Civic Betterment
Worldwide Plan
gConsidered
Mayor and Officials to Be
On Committee Which
Will Allocate Income

New York is to have commu-
nifty fund, to be filled with private
contributions and used for civic bet
terment.
The property which will comprise
he fund or trust will be managed
by group Of leading trust compa-
nies Of the city, and the uses/ that
will be made of the income will be
determined by a special committee
Of citizens.
In general, the rganization will
he modelled after the trust estab-
lished in Cleveland in 1914 and man.
aged by the Cleveland Trust Com
pany. The idea of creating machin-
cry making it easy for men of
wealth to throw part Of their re-
sources into fund for the general
welfare has spread rapidly through
the country, and thirty-three cities
now have such funds. At present
the income Of the Boston fund is
said to be the largest.
Details Not Yet Published
The New York committee which is
to allocate the income for various
civic purposes will be chosen in part
by committee representing the
trust companies, and in part by the
Mayor aud public officials. Details
Of the trust agreement are not yet
available, but a formal announce
ment is expected next week.
Community trusts in other cities, on
which the New YORK nian is modelled,
have been used in various ways for The
civic good. Surveys OF the school
systems and needed reforms have been
made, philanthropic work consolidated
under central authority, and in every
way the work of the public authorities
has been supplemented through the
operation OF benevolent funds. In
Cleveland, particularly, - ucl, of the
money given to the fund ;6 j. .She form
of annuities during their lifetime to
the members of the family Of the
giver, with the provision that on the
death Of the beneticiaries the income
shall revert exclusively to the fund.
As a result Of this arrangement in
many instances, the income of the
fund will expand in later years.
Plans for the New York community
trust have been developing for more
than q year under the leadership of
F. J. Parsons, vice president of the
United States Mortgage and Trust
Company. When asked about the
project, Mr.. Parsons replied that lie
was not yet at liberty to discuss it.
Worldwide Plan Proposed
In order to stimulate the develop
ment Of such funds all over the coun-
Try, the trust companies section of the
American Bankers Association, it is
understood, is on the point of naming
t committee which shall be charged
the experience of all the cities which
already nave such funds. Although not
approving any specific plan, it is un-
cerstood that the trust companies sec
'.on is earnestly behind the movement.
4 proposal to widen the scope Of such
funds is being considered by lawyers,
trust company officials and philanthro-
pists. The so-called Remsen plan,
which has been suggested by Daniel A.
Hemsen, an attorney, of go Wall Street,
provides for the creation of funds for
world wide, instead of municipal, pur-
noses. Mr.. Remsen has worked out
rust plan which would enable wealthy
persons to pay their debt TO society"
as he expressed it, and leave the &C
tual spending of the money to experts.
Mr.. Remsen said yesterday that 81 per
cent of the errors made in wills were
asoidable and that his plan provided
or standard which givers could fol-
.oH with the assurance that their bene-
actions would go unchallenged III court
after their death.
Under State Attorney General
The lawyer has charted the most
common form Of bcnefactions and
would make the leaving Of funds for
social purposes al automatic process.
Inc plan would enable givers to con-
.ribute to religious work without
specifying precisely what organizations
We're to be benefited. The trust, pro-
posed By Mr.. Remsen, could include
community trust, but would also in
c.ude gifts for foreign missions and
other activities outside city.
Inc spending of the income from
such funds would be determined by
committees chosen by the institutions
mat We're to benefit and approved by
we trust company acting as trustee of
the fund.