Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-20
COMMUNITY TRUST
PLAN COMMENDED
Yale Professor Talks on
Management of Estates.
RapS dead Hand"
BY JOHN F. SINCLAIR.

Irving Fisher of Yale University tolC
the trust company division of the
American Bankers Association last
night that a first-class trust company
should take more pride in serving its
public than in serving its stockholders
Calling attention to the fact that
100000 estates, valued at more thar
SIS 500 900 900, now are probated an
nually by trust companies. this Yale
economist spoke against the futility OF
leaving large requests lin perpetuity
for some definite object. The Middle
Ages called such grants the dead
hand"
The recent endowment made by
Hershey, the chocolate king, of $40
100000 to his pet orphanage,' said
Prof. Fisher. lis one of the more re-
cent and fragrant examples of the dead
hand reaching out and directing the
affairs of living creatures over an in
definite future"
Model Institutions.
The professor suggested giving great
er discretion to trustees, and commend
ed the Carnegie Foundation, the Rookie
Teller Foundation, the Russell Sage
Foundation and the Commonwealth
Fund as model endowed institutions.
"PhilanthropistS should learn that it
is preposterous for them to presume to
tell the men of the future what they
shall enjoy. what they shall think and
wherewithal they shall be educated.
The men of the future should be per-
mitted to have some voice in determin-
ing for themselves what is best for
them"
DR.. Fisher strongly praised the COM
munity trust, which substitutes cur
rent judgment of the best minds in the
community for the attempt of an in
diVidual teStatOr to fOreSee community
needs far in the future"
Probably his most interesting state
ment had to do with the problem of
safeguarding the real value of invested
funds against imitation, def1ation, boomS
and depressions.
Prof. Fisher urged trust company Off
Gals to study, watch and act upon the
trends of the index numbers, and said
these officials should have the power to
buy not only bonds, but preferred and
common stocks.
New German Loan.
1.-The most important event since the
signing of the Versailles treaty."
That's the way one observer viewed
the announcement that the french
government had decided to participate
in the new German government loan
of $50 900, 900.
1t is not much. but it is vastly i'm
portant since it is the first time that
the French government has officially
co-operated with the German govern
ment to meet its obligations.
"A complete revision of reparations,
and of German obligations generally will
be essential before long" says the New
York Journal of Commerce.
When that time comes-and it may
come some time this year-France will
be seen leading in the necessary nego-
tiations No one knows better than the
French do just what a breakdown of
German obligations means to Europe.
When history is written, this event
which has passed almost unnoticed will
be considered the most important of
1881. for it is II years since the French
government has turned finger to aid
her ancient rival.
Cuban Currency Plain.
For 80 years Cuba has used Ameri-
can money in her trade and COM
merce. Her business life has been
tied UP closely and effectively with
the United States because of this.
But now Cuba wants her own system
of money. DR. Mario Mesa, the Cuban
secretary of the treasury. says 50.
The plan is to establish a Bank of |
the Republic of Cuba and give it
power for 20 years to issue currency,
backed up by minimum of so per |
cent in gold and silver. All expect !
S500000 900 of this paper money will
have back of it 100 per cent in COM
mercial paper and 100 per cent in
government bonds.
The government expects to float a
special issue Of bonds to start things,
following the methods of the Bank
of France and the Bank Of Spain.
1t is a mistake! Books could be
w-4f f17o crVkT nd Felr-
ments could be advanced to show that
Cuba needs financial independence and
can secure it only by this method. But
every one knows Cuba is hard up
very hard up. She needs credit badly.
She cannot sell any more bonds, so
she is resorting to the last method of
raising funds-namely, by using the
currency as a basis for imitation. 9th
erwise she would never favor any such
policy at this time.
American money has been, since 1914,
the most substantial in the world. 1t
has fluctuated less than that OF any
other country. Cuban trade is built
on it. The new policy is fraught with
danger
What Cuba needs right now is not
new currency but thorough house
cleaning-politically and financially"
said New York business man, return
ing this week from a study of conditions
in that country.
Muscle Shoals.
Senator George Norris of Nebraska
practically has won his l0-year night for
Government operation of the Sl45 ,000,-
900 Muscle Shoals power plant That
much can be said, for the Senate and
House conferees have at last got to-
gether.
The fertilizer plants are to be leased
to private interests within year. II
not then the nitrate department too
goes over to Government operation.
Never was a bill harder fought on
both sides. The power interests were
dead against Government operation So
was the President.
But Senator Norris never quit. He
fought in season and out of season for
Government operation. 1t is we'll known
that he intended to retire from the
Senate at the close of the present ses-
sion. but with this legislation unfn-
lshed he decided 10 hold on another
six years.
Now every advocate of public owner
ship, as well as every champion OF pri-
vate ownership of public utilities, will
watch its development with very great
interest. for Muscle Shoals will be made
the testing laboratory of the Nation.
Sugar Prices.
Painful steps must be taken before
thinking Of good sugar prices says
Thomas L. Chadbourne American
sugar dictator. whose efforts for the
world organization of sugar producing
interests so far have been crowned
with success. He has succeeded in get
ting the representatives of countries,
which produce annually 10 900 900 tons.
TO reduce their output by 100000
tons. and also TO take cut of the mar
ket 5000 900 tons.
The Job of effecting a world sugar
organization is a colo sal one and has