Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-07
MORE TRUST FUNDS
TERMED BEST WAY
TO PROTECT HOMES
Gilbert Stephenson Urges
Closer Unity Between Insur-
ance Leaders and Bankers.
A. B. A. OFFICIAL REVEALS
NEW FIDUCIARY IDEAS
Prominent Guests Present at Joint
Forum Meeting at Willard
Hotel Last Evening.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
Closer cooperation between the trust
company and the life insurance COM
pany will do wonders in the better
perfection Of the family and the home,
In the opinion of Gilbert T. Stephenson,
president Of the trust company divi-
sion Of the American Bankers Associa-
ton, who addressed the fduciary section
Of the District Bankers Association
and the District Life Underwriters
Association at the willard last night
The speaker, who is also vice president
Of the Equitable Trust Co. Of Whining
ton, DEL, enthused $50 Of the leading
bankers and insurance men of the city,
the joint meeting being arranged by
B. L. Cotton and John H. Snyder, chair
men, respectively, of the fiduciary and
insurance organizations.
1T must be quite apparent" Mr..
Stephenson asserted, that the head Of
the house, the life insurance company,
and the trust company has an
essential and unique part to play in
the protection Of the family. The head
Of the house must, after all, provide
the grtSt for the mill. He must pay the
price Of the insurance contract whether
that be one year or SO. He must
establish the trust before a trust COM
pany can administer it and create the
1t. The head Of the house can never
shift onto other shoulders his own
responsibilities with respect to the pro-
lection Of his family.
Main Factors In Protection.
cit must be equally apparent that In
protecting his faSlily he must have the
help Of both the life insurance company
and the trust company. The life in
ho1Ne f1fVra az 80
provide for the financial protection of
his family in case he should not be able
to create an estate through labor, saw
ing and accumulation. The trust COM
pany, through its living trust and
agency services, helps him to create his
estate and, upon his death or in
capacity, conserves and administers for
he has accumulated. The head Of q
house, who has not inherited or ac-
Quired an estate, cannot adequately
protect his family without the help Of
q life insurance company and can Ill
afford to attempt to do so without the
help Of trust companies.
But what is not 50 apparent Is that
the life insurance company and the
trust company need the aid Of each
other in helping the head Of the
house adequately to protect his family.
It Is not q question merely Of the head
of the house clasping hands with the
Life insurance company on his right
and trust company on his left. It Is
also q question Of the two companies
clasping each others hands IN mutual
helpfulness, else the circuit Of protec-
ton viii be broken or impaired"
Unified Administration Vital
Mr.. Stephenson stated that life in
Surance company might administer the
0~ax - R,,k to-
instances the holder has several
policies in different companies, pre-
venting unified administration of an
estate unless some one person Is desig-
mated to receive and administer the
funds furnished by the different COM
panies. That person is the trust COM
pany as trustee, he said. After the
sum, or In installments, personal ad-
vice Is needed in the way Of invest
nnent guidance, as well as conservation
Of the estate, this becoming the re-
Sponsibility of the trust oficer.
In the reciprocal relations between
the insurance company and the trust
company. the insurance company can
protect business against loss, help to
provide funds against shrinkage In
estates and provide funds for imme-
date needs Of families. The head Of
the family does not always realize that
the assets Of his general estate are
not available for distribution until the
end Of the executors year. Meanwhile,
living expenses continue and some
times increase. Trust officers are saved
embarrassment and families relieved
Of want when life insurance companies
sell insurance for the specific purpose
Of meeting immediate needs.
When the life insurance company
broadcasts its slogan, I'VE Protect the
fl1o kvTae law
claim to the same high function; when
the head Of the house interposes to
say, But, am I not the protector Of
my own family: an impartial Judge,
speaking Of the American family, may
render this judgment: "All three Of
YOU are protectors Of the family. The
family cannot be amply protected with
out the contribution Of each Of you.
: Furthermore. it cannot be protected
without the cooperation Of all Of you
with one another"
Several Distinguished Guests.
Mr.. Stephenson, who Is a lawyer as
well as banker, gave q host of illustra-
lions In order to make his talk prac-
teal. For several years local bankers
and insurance men have sought greater
unity and the A. B. A. ofncial's address
presented many new ideas as what can
be done In Washington to bring about
the transfer OF more insurance funds
TO the trust departments Of the local
banks for administration.
Mr.. Cotton presided at the Joint meet
ing and dinner was served before the
address. Mr.. Snyder brought greetings
from the organization of which he is
the head, and Edward J. McQuade, first
vice president Of the D. G.. Bankers
Association. also spoke briefly.
Among the prominent guests was Dr.
Albert Bushnell Hart, professor emeritus
of history at Harvard and a close friend
OF the guest speaker; z. Z. Mountjoy,
secretary Of the American Bankers
Association, and Aubrey B. Carter,
supervisor Of the trust function section
OF the Federal Reserve Board.
The committee Of arrangements In
Guided T. Stanley Holland, Joseph A.
Mari and John McElfresh.