The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-09-29
BANKS
ACTIVE AS
TRUSTEE
BY HARRY GUSACK
Financial Editor

banks that at the end OF the 19zf
calendar year, 1924 banks were
authorized to exercise trust func-
tons and 1882 banks actually had
their trust departments in operation,
it was announced yesterday by the
Federal Reserve Board.
This is the first time the reserve
board has compiled complete in
formation as to the trust activities of
national banks, and the report
showed that these banks were ad-
ministering individual trust assets
aggregating $2,079, S5S,237. and were
handling corporate trusts and note
and bond issues aggregating $6,354,-
713,735 at the end of the year. The
report, in part. states:
Continuous Growth
Since the first tiduciary permit
was issued by the board on February
Is. 1915. there has been a continuous
growth in the number of applications
made for permission to engage in the
exercise of trust powers. and at the
end of 1927 there were 2.264 national
hanks. or 20 per cent of the total.
that had authority to administer
trusts. These banks had a combined
capital OF $914.619 900. representing
so per cent OF the total capital of all
national banks in operation.
National banks numbering 1857,
with a combined capital of $685.
100000, had established active trust
departments on December 81. 1927,
and, from the most recent reports
on file for 1927, were administering
1914 Individual trusts, with assets
OF 81, 079 ,S5S,237. OF these banks
544 were also. handling 6.409 cor
porate trusts and acting as trustees
for bond and note issues aggre-
eating 54.713.735.
This represents an increase of
2Ts, or IS per cent, in the number
Of national banks administering
trusts over June. 1926: an increase
of 1880. or 75 per cent. in the
total number of trusts being adj
n1inistered: and an increase in indi-
vidual trust assets of 81, 15I ,529 $50,
or 125 per cent, over the same
period The amount of bond. and
note issues for which national banks
were acting as trustees showed an
increase of 1851 leo, 419. or 15S
per cent. over 1925.
Earnings Large
The earnings from trust depart.
ment operations have kept pace
with the steady growth of this
activity and amounted to Sl0,S11 900
for the fiscal year ended June 80,
1927. against $8.255 900 for 1926,
1851 900 for 1925. and 5000 900 for
1924.
While nearly a third OF all ma
tionaI banks now hold permits to
exercise ffduciary powers $50 of the
number having such authority, with
a combined capital of $217 1873, 900
on December 81. 1927, had not
started to administer trusts, but
during the year 42S made provision
through the adoption by their
respective boards of directors of
resolutions providing for the or
ganization and operation of. trust
department and placed themselves in
position to administer trusts.
Bankers Attend Convention
Headed by Gov Roy o. Young. of
the Federal Reserve Board. and
Comptroller of the Currency J. w.
Mcintosh, a large delegation of
Washington bankers will leave the
city today and tomorrow to attend
the annual convention of the Amer
lean Bankers Association. which
opens in Philadelphia Monday.
Among the matters to be discussed
by the bankers, gathering from all
parts of the country, will be general
business conditions, the formation
of an international association of
banks. the farming situation and va
rious other bank problems.
Rnhorf " Flonofno Of he Pi0oS
National Bank and president of the
District of Columbia Bankers Asso-
citation will leave here tomorrow aft
ernoon. Others who have sgnified
their intention of attending the con-
vention will leave this afternoon and
tomorrow. They are:
Governor Young. Comptroller Nc
Intosh, Representative McFadden,
Mr.. F1emming, Col Robert y. Harper.
president of the District National
Bank; r. Golden Donaldson. Dresi-
dent of the Commercial National
Bank; Victor B. Deyber, president of
the Second National Bank: Harry
V. Haynes, president of the Farmers
and Mechanics National Bank; John
B. Larner, president OF the Wash
ington Loan and Trust Company;
Maurice Otterback, president OF the
Anacostia Bank; George o. Vass,
and William J. Father. vice presi-
dents of Riggs National Bank:
George w. White and G. f. Jacob
sen, of the National Metropolitan
Bank; Francis G. Addison. of the
Security Savings and Commercial
Bank; Wilmer j. Waller and Charles
p. Lyddane, of the Federal Amer
lean National Bank: Wade II.
Cooper. Miss Mary Jane Winfree
and Miss Marjorie l. Tucker. of
the Continental Trust Company; r.
J. McQuade and NJ. F. Calnan. of
the Liberty National Bank; f.. Z.
Mountjoy and +. G. Await.
Led by James A. Soper. Of the
Lincoln National Bank. president
of the Washington Chapter. Amer
lean Institute of Banking, a dele
cation of four officers of the local
chapter will go to Philadelphia Tues
day to attend the institutes annual
dinner. Accompanying Mr. Soper
viii be I. A. Roberts. of Riggs Ma
tional Bank; r. Hunton Leith. of
the Security Savings and CONNER
cial Bank, and Richard A. Norris,
of the Lincoln National Bank.
Bankers Meet October Is
The fall meeting of the District of
Columbia Bankers Association will
~ held October tx uhpp a buffet