The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-28

later went to STAFFORD as cashier OF a
bank there where he prospered for a
period of eight years. In 1913 he went
to the larger town of Hutchinson, and
in 1916 he became president of the
Kansas Reserve State bank ana citi-
zen of Topeka. A still larger banking
institution, the Bank of Topeka, called
him in 1920. making him vice presi-
dent and the Prudential Trust COM
pany it's treasurer two institutions
having \ a capitalization aggregating
three and one-half million dollars, and
now comes his most recent business
connection, that of president of the
Larabee Flour and Milling corporation,
a three million dollar business.
I'm nineteen years from a fifty-dol-
lar loan to a three and one-half mil
lion dollar backing" said Carruth, sis
no small job even for a Rotarian.''
Tells of Trust Compnies
1.-THE Functions of a Trust Com
pany' was the subject of Kaths' ad-
dress. After dealing with the early
history of trust companies in Kansas
their growth and the legislation that
has been passed regulating them, and
announcing that there are now sixteen
trust companies in Kansas he said, in
part. as follows:
The office of a trust company is
primarily to handle trusts. Trust
companies cannot carry on a COM
mercial banking business. They are
legally empowered to receive on de-
post for safekeeping personal prop
erty. They are allowed to own and
control safety deposit boxes. They
may act as assignees, receivers, trus-
tees or depositaries and may also be
appointed administrators, executors
and guardians. They may accept and
hold by order of court, personal prop
erty in trust They may act as agent
or attorney-in-fact. They may re-
ceive deposits of money from any
bank, trust company or from any pub
lie officer or board, subject to check
They may receive from any person.
corporation or association, money
upon certificates of deposit and may
allow interest on deposits. They must
keep on hand at all times. a sum
equal to twenty-five per cent of de-
posits, subject to check, and ten per
cent of time deposits.
Must Have 100000 Capital.
''The trust company law provides
that no trust company shall be
formed with less than 100000 capt.
tai, and there is no financial business
wherein greater guarantees should be
demanded or sounder supervision ex-
ercised than over these corporations
They are dealing with people. like in
fants, women, old and infirm people.
| They place their funds in these de-
positories relying entirely upon the
integrity of the managers and the as
surance that the law gives them full
and ample protection. In almost
every legislature an effort has been
made to reduce this capitalization.
Uniformly we have fought to make
the capitalization if anything larger,
rather than permit the security to be
decreased or the guarantee dimin-
ished.
"A survey of the field of trust COM
panies would show that it's surface
has hardly been scratched. The idea
of corporate trusteeship is taking hold
of the American people slowly, and
at the present rate at which the idea
is becoming popular, large proper
ton of the present generation will die
interstate, and the dissipation OF es-
tates will go on for years to come I'M
| less the public is educated to the
functions of trust companies
Kaths said that experience has
shown that the employment of the
corporate trustee is of exceedingly
great advantage in cases where the
condition of the testator's business de-
| mands frequent and large advances
of money in order to preserve it in
| it's integrity and practically requires
| for its management the same daily
| care and attention that he has been
| accustomed to give it, pointing out
| that scarcely ever can an individual
be found who is able to command suf-
| ffcient resources for that purpose. He
said that a trust company acts with
out prejudice to the end that the de-
sires of the testator are carried out
whereby an individual trustee is
sometimes influenced by beneficiaries
to deviate slightly.
A Confidential Adviser.
A trust company is the confidential
adviser of the community it serves, he
said, and the trust companies of the
west need to establish a point of con-
tact with the public which will fully
acquaint it with the various functions
performed.
Most people know that trust COM
panies can settle estates and are
equipped to perform various trust
functions" said Kaths, but there are
many other things in regard to these
creatures of the law of which they are
totally ignorant or concerning which
they have misconceptions. There are
still to be found those who look upor
them as species of holding com
panies for the purpose of permitting
big combinations of capital to control
under the guise of law, many separate
business interests in a manner much
after that of an old fashioned trust.
There are those who do not know
how important is the fact that trus