Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-09


day before the ss&a
American Institute .~.se
of Banking at Pitts Is
burgh according to
dispatches received "a ~
here. He said, in
part: Aubrey b. Carter.
The impressive
growth of trust service in the banking
field Is illustrated by considering the
expansion in recent years Of the fidu-
Ciary activities of banks in the national
banking system. The passage Of the
Federal Reserve act made possible the
further extension Of corporate trust IA
CilitieS to practically every section OF
the Nation.
Since February 25, 1915, when the
first permit under the Federal Reserve
act was issued TO a national bank, nun
dreds of these institutions throughout
the Nation have availed themselves of
this opportunity to render additional
service to their communities, until at
the close of the fiscal year. June 30,
1880, there were 2,472 national banks
with trust powers, whose banking re-
sources aggregated $23,529 09T ,073,
which represented "a per cent of the
number Of banks and 80 per cent of
the total banking resources of the 1882
national banks in operation On that
date Trust departments had been es
were administering 1922 individual
trusts with trust assets aggregating $4-
473,040,926 and. in addition, were ad-
ministering 1911 corporate trusts and
acting as trustees for outstanding note
and bond issues aggregatirg $ll ,803,
7l7,370.
Further Growth Pictured.
1.-THE rapid strides which these banks
in, fol
phasized by considering the activities
during 1880 with these Of 1925. Com
pared with that year, these figures
represent an increase during the four
wear period of 446 or % per cent in
the number Of national banks authorized
to exercise trust powers an increase
OF 1925, or &c per cent in the number
of banks actively administering trusts,
an increase of $3.50, or $50 per cent
in the number of trusts being ad-
ministered; an increase of $500 ,00O,-
900 or 385 per cent in the volume OF
I individual trust assets under admins
d. traticn; an increase Of S9340 900 900,
or 379 per cent in the volume of bond
issues outstanding for which these
institutions were acting as trustees
while the gross earnings for the same
period increased $14,5lo,000, or 176
per cent.
national bank trust departments IN
decade have acquired for administra-
ton a volume of individual and cor
porate business equal to one nall OF
the total resources developed by the
banking departments of all national
banks over period of 81 years since
the establishment of the system III
1863.
Banks Carefully Examined.
'While the responsibility for the
conduct OF the trust department rests
ultimately on the directors, the Con
troller of the currency Is charged Dy
law with the duty OF appointing nl;oa e ~,
aminers who shall make perlC olcaIiy
a thorough examination OF all the al
fairs of the bank and shall make
full and detailed report OF the conol,
ton of the bank to the comptrollei.
Briefly stated, Mr.. Carter added the
duty placed upon the national Dahk eA-
aiming force in determining the chat
acter of management OF uusC oepa az
r,ent involves the veriflcatlon OF tne
following items or aScertainlng that the
trust department is being operated In
such a manner that complete detained
checks are unnecessary. the Items. are
/ To see that all trust assets turned
over to the trust department are intact.
.. That they are held by the oanK
In a fiduciary capacity.
3. That the income has been COL
lected on income-produclng assets VI
the various trusts.
4. That 1t has been properly dlstrlo-
uted to the benef1ciaries, or otherwise
accounted for.
:. That any distribution OF principal
has been properly made.
s. That the income of the trust de-
partment has been properly accounted
for
Z. That the assets of the trust de-
rartment reflect lawful and efficient
management of the trusts committed
to it.
8. That constructive recommends
tionS for correction accompany all eX-
ceptions found by the examiner and
set up in his report in such a manner
that the banks supervisory authorities
may be enabled to correct the exception
complained Of.
Convention Reservations Speed Up.
Frederick H Cox. chairman Of the
Transportation Committee for the COM
ing convention of the District Bankers
Association at Hot Springs, Va, an
nounces that reservation requests have
been coming in very rapidly during the
past few days. Mondays morning mail
brought in a bunch OF requests and
many more arrived today. The attend
ance now promises to be much larger
than the committee had anticipated.
AS the Washington bankers leave here
one week from tomorrow night the time
for making reservations is getting some
what limited.
The final notice regarding the con-
Vention has been sent out by F.. P. H.
Siddons. general chairman, and con-
tainS details not included in other no
tees The heads of all committees were
highly elated today over the outlook.
Today's Trading on Exchange.
Washington Gas Light 4l2s sold at
10334 on the Washington Stock Ex-
change today and So 500 Washington
Gas A bonds changed hands at 1903
City and Suburban SIS changed hands
at 10 on 81 600 sale.
The first stock sale was in Potomac
Electric Power per cent preferred. at
1l3, while two small sales in the 5l2
per cent preferred were recorded at
110L.
Capital Traction appeared on the
board, three l0-Share lots changing
hands at 35l2.
Heard in Financ District.
First tenants are moving into the new
addition to the American Security IL
Trust Co, on Fifteenth street. While
many of the Offices on upper floors have
been completed it is not expected
that the banking rooms on the street
level will be ready until September J..
After that the present bank will be re-
arranged to harmonic with the new