Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-05
BY I. A. FLEMING.

banks. given the right to act as execu-
tors and administrators by the McFao-
den amendment to the Federal Reserve
act, have spent much money IN the
wisest kind Of publicity on the benefits
OF wise administration, on the longevity
of the institutions empowered TO al
ministrate versus the disadvantages OF
the close friend, the near relative or the
wife or children, lacking an intimacy
with investments, with stocks, bonds anc
mortgages, In the handling OF money
itself and liable to take chances that a
tried executor would not consider.
A widow. as 1t has been proven over
and over again, being entirely unfa-
miliar with business methods, having
been especially guarded. in most cases
against the worry and care of admins
tration, his often been aided, and this
is also true of other female relatives.
often Prey Of Sharks.
The latter are the especial prey OF
the door -to-door canvaSSerS. for sellers
of questionable securities and like ad-
vertisers fake securities, fake bonds
and mortgages, in the financial columns
OF the lilly press, not members OF any
exchange.
The Living Trust.
OF late years the Giving trust" has
come into being and more millions are
being transferred to the care oil IN;
authorized corr orations, while yet tnt
owner thereof Is able to care for his
or her own affairs, but having a def
mite plan to use a certain stipulated
amount of money for one or more pur'
poses, turns over that part of the estate
and has the privilege Of seeing how j
works.
1t stands to reason. the Simplest com
mon sense, that an institution whose
officials are daily handling large
amounts of cash, who are, in the con
duct of their business, called on x
lend thousands and tens of thousands
of dollars on securities, to Ray taxes
on scores of pieces OF property, to esti'
mate the values of real estate upor
which they have been requested u
make loans and who have the *
perience, before courts. and in all thu
phases OF administration. are more
competent than friend or relatives.
Trustecing Life Insurance.
Life insurance policies, save in thu
case of annuitieS and maturing latter
a-certain- time, do not reach the bene'
ficiAries until after the death CT tn
insured. who has, of course, provided
l. their payment, but the recipient
OF this bounty are Just as readily VIC
tins of sharpers when trying to nnS
employment for their funds at attrac
tive rates. Life insurance companis
have sensed this and of late hHvI
given hearty support to the trusteeinl
OF life insurance, that the proper cor
porations may guard the results o
thrift in this direction, as well as tn
earnings through business efforts.
A recent meeting between Chicag
banks holding trust company right
and trust companies with life tnsuranc
underwriters was held with 10 OF tn
20 members present. the committe
being composed of equal numbers 9
bankers and underwriters.
A liaison between the interests
maintained with the aid of a month";
magazine. Life Values.
The bankers in attendance at TIL
recent meeting we're chiefly vice presi
dents and trust oficers They entere'
enthusiastically into the work ant
promised to give the underwriters com
plete cooperation In promoting tn
life Insurance trust.
Large or Small.
II matters not whether an estat'
is large or of only relatively small
amount It represents the savings o
the man or woman or relative who hai
gone, and 1t needs protection.
So, too. In the matter of will
EVERYBODY should make will whethe
he has property or not. Every on
should add q codicil when one of the
beneficiaries dies, unless all contin
gencies are provided for in the docu
ment.
1t Is Just as important that admins
traitors be employed with experience
and familiarity with the laws Of one:
state, and In washington, Of the Dis
trict OF Columbia, having In their EN-
ploy the best of counsel and familiai
with every duty and method OF liqui
dation, and reinvestment of the asset'
of an estate.
1t seems apropos at this time Il
drive home another attack on the home
made will. one of the dissipators OF thu
estates OF men and women, naming
executors who may mean well, but WHIT
are without the experience to make wis.,
movements all Of the time,
Handling Estates.
It must be decidedly strenuous wors
to look after the care of estates havlns
an aggregate asset value Of sio00oo,oOC
or more.
It is a dificult and decidedly COM
pleX problem of carrying out the pfoVl'
sions of Q will, OF watching maturing
securities. of keeping track OF the mar
ket to see that this or that hond OF Sc
curity is sold after a satisfactory al
vance and reinvestment made III Soo'
securities. .,,
II is constant. daily and nightly
problem with the trust oflicial charged
with the task. -,
Bonds mature, bonds are called, divi'
dends are paid and not inirequehuS
they are passed -. l..
wills carry provisions that must %
faithfully carried out--some estates run
for many years and present numerous
intricate propositions.
Some Of the Difficulties.
A trust officiai Is responsible for thf
THE problem of investment by trust
company holding large amount OF
trust funds is a very dinicult and com
nlex subject, one which Is governed oS
many different considerations
LIT Is lmDOELhut WkiNti hiHSN
.,,,es Intn the hands OF a trustee that
a careful examination should be made
NJ the securities In trust TO see that they
are suitable, II a fund is once starteo
right. It Is apt To be fairly plain sailing.
and on the other hand, II careful
scrutiny Is not made OF the securities In
the trust Al the beginning. difncultieS
will probably continually arise -,
"The securities In each trust should
be examined periodically and In add
ton there should be . card or other IN
dex showing the amount of holdings In
all the estates Of each particular Sc
curity. so that the officer who has
charge OF the investments when he has
reason 70 believe that some investment
may go wrong, can at once turn TO his
card Index to see how much Of such Sc
curity Is held by the company as trus.
tee and the names OF the estates OF
which they form q part,
I'm determining which securities
should he sold and which purchased,
ttamrm asa ,fAatsv fumttNfa IA hA nouaid~