The Washington herald., 1921-08-18
HATHER EXPLAINS
BANKS FUNCTIONS
TONAVY OFFICERS
Trust Company Intrica-
cies Get Overhauling
By Local Official.
DWELLS ON WILLS
Administering of Estate Is
Accentuated-D. c. Issues
Again Dull.
DWELLS ON WILLS

THE Functions Of a Trust Com
|pany' was the topic assigned Alfred
&c. Flather. head OF the new business
department OF the American Sc
>curity and Trust Company. to dis
cuss before the School of Applica-
tion, Supply Corps Officers, U. s. N.
yesterday.
d. In discussing the differsnce be-
tween national banks and trust
companies. Mr.. Flather said: Mod
ern Industrial society has developed
the bank as a means of exchange
while It has developed the trust
company as a means Of facilitating
the distribution and Investment OF
capital. The two services-that Of
attending credit and facilitating ex-
change, kon the one hand, and Of
lending to borrowers or facilitating
the growth OF industry, on the other
hand-are distinct and separate. The
tendency in the United States has
been to fuse the functions of bank
ing and investment rather than fos-
ter their separate development"
The many functions and the great
variety of ways in which a trust
company can render help to the in
dividual, firm and corporation, and
society Ia general is the most inter-
esting phase Of finance according to
Mr.. Flather.
Mr.. Flather, in continuing his
address. dwelt at length on the his
tory OF a will and how an. estate
Is administered by a trust company
In the District OF Columbia, declar-
fW - - l.
terest to all, materially affecting.
as IL does, all who have property
to leave.
Upon execution of a will. he said,
il is filed in the will valots of the
company and a record made against
which a daily check Is kept of the
death notices In the newspapers, and
in the event of the death of any
person for whom the company holds
a will II Is withdrawn from the
vault. Immediately IL is read and
copies made. the family Is assem-
bled and IL is read to them. The
original will in the meantime has
been filed with the Register OF
Wills. the petition for the probate
of tho will is prepared and sigma
lures of the witnesses are proven.
Assets Are Collected.
Upon admission of the will to pro-
bate and record. the executor pro-
ceeds to collect the assets, after
which is prepared q detailed state
ment of the assets and liabilities.
A card Is then filed under the name
of the estate eleven months ahead
with instructions to pay the lega-
cies eleven months after death.
while another card IL fled for the
Federal estate tax return ten
months after death and still another
to pay debts three months after
death After admission OF the will
to probate and the issuance of let
ters testamentary to the executor.
publication is made against the
creditors of the estate and a certi-
fed copy filed in court Court ap-
praisers appraise the assets, which
appraisement, after being sworn to,
Is filed in court.
within sixty days after the issu-
ance Of letters testamentary, an affi-
davit must be filed with the Treas
ury. showing the approximate value,
IL over $4,000.
Upon the expiration Of three
months after death. the debts are
Iiquidated and one year from the
date Of death the Federal estate tax
return Is filed and the taxes as de-
termined therein are paid. Twelve
months from the date Of death the
I1egacies are paid and at the end OF
the year an account is prepared and
Rendered to the court Of administra-
tion of the estate by the executor.
Upon approval and paSsing OF the
account by the court, the rest and
residue of the estate is distributed
Ito the beneficiaries in accordance
with the will, receipts being taken
therefor, which receipts are hled In
court as vouchers to the account.
Local Securities
Transactions on the Washington
Rtock Exchange yesterday repre-
sented practically no change over
In, previous session. The market
was featureless, with Capital Trac-
tion stock displaying the most ac-
ivity. Sales aggregating 101 shares
bf this security were recorded, az
6. Washington Railway and Elec-
ric preferred sold to the extent OF
30 shares at Sc. and 2 shares OF
Washington Gas Light stock
changed hands at 43H.
Railway per cent bonds were
huiet at 81 IL. $1,000. face value,
changing hands. Potomac Electric
eonsols were disposed of to the ex-
ksnt Of $1,000 at IS, and 10 shares
u Continental Trust Company stock
brought 1o14.
John B. Cochran. president of the
Franklin National Bank. together
With his family. Is spending some
ime at Bar Harbor, Ne.
c. H. Cohron. of Stuarts Draft,
a, a director of the franklin Ma
ional, spent few days in Wash
ngton this week.