Evening star., 1939-02-17
Hanes Cites Value
OF Trust Service
To Banks, Public
Official of A. B. A.
Urges Special Study
Of Operating Costs
BY EDWARD c. STONE.

BY EDWARD c. STONE.
Trust companies and trust depart
ments Of banks are organized for
just two purposes-"to serve and to
earn"-Robert M. Hanes, first vice
president of the American Bankers
Association, asserted at the final ses-
sion of the midwinter trust con-
ference in New York
The service must be in keeping
with the high standards of the in
stitution of which it is a part and
the profits bear direct relation to
the quality of service performed,
volume of business handled and re-
sponsibility assumed.
He urged that trust institutions
make careful and analytical studies
of their operating costs. II think
1t is essential" he said, that every
trust department set up yardsticks
or standards of measurement by
which it can determine the nature
and amount of services required in
each type of fiduciary work, deter
mine the cost of handling different
types of problems and then fix and
adhere to uniform schedule of fees
that will cover the cost and provide
q reasonable profit. Business that
cannot be handled at a profit under
the uniform schedule must be de-
clined.
Mr.. Hanes asserted that trust COM
panies must never forget that the
performance of fiduciary services in
wolves a tremendous responsibility.
Too many in the past have regarded
the business as an easily operated
gold mine" he observed. That
policy and hope have been COM
pletely exploded. The institution
that considers entering the fiduciary
field or hopes to continue in it must
recognize and understand all that is
involved and must be willing to
equip itself to do a creditable job
for modest remuneration"
The Washington bankers were
back at their desks today. among
those attending being Robert V.
Fleming, Erskine Gordon. Earl G.
Jonscher, Leonard Marbury. John
A. Reilly, William " Simmons. Sid
ney F. Taliaferro, Stanley D. Willis,
also Leo H. Paulger of the Federal
Reserve Board and Frank j. Hogan,
president of the American Bar As
sociation, who was the banquet
speaker last night.
Louis M. Denit, trust officer and
general counsel of the National
Bank of Washington, attended the
final session and the banquet, and
Ralph G. Wilson, assistant cashier
and assistant trust officer, attended
all the sessions.
Mcdonald Favors Title III.
Testifying before the House Bank
ing and Currency Committee, Stew
art Mcdonald, Federal housing ad-
mipistrator, said he favored the re-
newal and expansion of the pro-
visions of Title II and the dropping
of Title I. Title I loans are for
modernization and Title II loans for
new construction.
Mr.. Mcdonald urged the commit
tee to approve legislation raising
the amount of mortgage insurance
the F. H. A. may have outstanding
at any time from S3,0O0,OO 900 to
Sc 5000 100000.
He also asked the committee to
favor making permanent the tenn
porary authority Congress granted
the administrator to insure mort
cages up to S5400, amortized over
25 years. if the mortgage is approved
for insurance prior to construction
and if the owner is to occupy the
dwelling.
New Checking Plan Adopted.
The State-Planters Bank & Trust
Co. at Richmond has just announced
a special nominimum balance type
of checking service, in which books
of checks will be sold to patrons at
the price of 81 for 20 checks. There
will be no service charge on de-
posits. The bank hopes to serve
more customers and sees advantages
in having checking accounts at five
cents per check. The 20 checks do
not have to be drawn within any
given time. The plan is similar to
that adopted by many other banks
all over the country, including one
bank in the Capital.
Washington bankers were inter-
ested today in report from the
Pacific Coast that A. l.. Lathrop, vice
president of the Union Bank &
Trust Co., Los Angeles, will seek
election next fall as second vice pres
ident of the American Bankers As
sociation. Members of the A. B. A.
IN the Far West say they have had
no important Offices for 20 years.
Holders of American Telephone
stock on March IS will receive the
regular s225 quarterly dividend on
April Is. 1t has just been declared.
d. c. Man on Diaries Board.
George L. Smith of Washington,
general sales manager of Southern
Diaries, has been elected a member
OF the Board of Directors, it was
announced today. He takes the
place of Thomas H. McInnerney of
New York, who resigned.
Mr.. Smith joined the organization
6S IIlelIlUeI Ol lIle advertising Qe-
partment II years ago. He later
became advertising manager, then
assistant general sales manager, fol-
lowed by an appointment as general
sales manager in charge of ice cream
sales. In 1888 Mr.. Smith was given
charge of the sales of the milk
division as we'll as the frosted foods
division. He is a graduate of the
University of Pennsylvania and lives
at Chevy Chase.
Exchange Trading Heavy.
Trading on the Washington Stock
Exchange today was by far the
heaviest of any session this year.
Washington Gas preferred figured
in six sales at 1852, unchanged.
Ten shares of Liberty National Bank
stock sold at 178.
Mergenthaler Linotype recorded
10 consecutive sales of 10-share lots
at 20ls and Capital Transit jumped