Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-09
TRUST BUSINESS
GROWS IN SOUTH
Atlanta Conference Told of
Many Obstacles Hurting
Rapid Development.

Discussions at the recent Second
Southern Trust Conference, held at
Atlanta, again served to give emphasis
to what is the greatest problem or OBJ
stacle to the development of trust bust
ness in the South. Most of the States
below the Mason and Dixon line are
still operating under taxing laws which
have not been changed in over 40 years
Property is taxed under general pro-
perty tax laws, with personal property
paying the same tax as real estate. The
same lack Of modernization applies in
most OF the States to investment of
trust funds, with some States arbi-
trarily restrictive and others providing
little or no statutory or judicial guidance
for trust investments The consequence,
says Trust Companies Magazine, is that
intangible personal property is subjected
to such heavy burdens as to Discourage
the creation Of trust estates and in
many instances, forcing millions of
wealth to other jurisdictions.
Legislative Action Sought.
Fortunately the Southern Trust Con-
ferences have brought about a general
recognition OF this problem, and at the
recent sessions in Atlanta a committee
was appointed to investigate the subject
and submit recommendations for legis-
lative redress. In several States bills
have already been presented providing
for constitutional amendments and the
adoption of up-to-date tax laws similar
to those enacted in Kentucky and where
the result has been a very marked in
crease in trust estates.
Freedom from onerous taxation Of
estates and Intangible personal prop
erty is bound to give big stimulus to
trust business in the South. Wealth
has increased by leaps and bounds in
that section Of the country, as illumin-
atingly described by Gov. Black of the
Federal Reserve Bank of Atlanta in his
opening address at the recent confer
ence. The need for trust protection
and conservation is clearly indicated by
cross-section statistics showing that in
North Carolina, for example, that IA
people with estates out of every 100
who die do not leave wills and that s5
per cent Of those who do make wills
do not name banks or trust companies
as executors.
Richmond District Trusts.
There are some fine old trust COM
strated that, despite handicaps, the ap-
plication Of proper principles, quality
Of service and equipment will yield sue
cessful trust department results. The
fact remains that there are too many
trust companies in the South which
do not live UP to their titles and fail
to give to trust department operations
the attention and acknowledgment of
which such service de-
mands.
1t would appear from the attendance
and the proceedings at the Atlanta
the magazine concludes,
that national banks are going ahead
with perhaps even more enthusiasm
than many of the trust companies. In
the comparatively few years that ma
tional banks in the South have ac-
lively assumed trust functions they
have already built up quite volume
of trust business, the Federal Reserve
reports showing 1872 national banks in
the Richmond Federal Reserve district
$140 900, 900 individual trusts
assets. and la national banks in the
Atlanta district showing Sill, 100000
assets.