CHARGE.]

TRUST COMPANY ADVANTAGES

(The creator of a trust for his own benefit may not cancel the trust deed except in the manner provided for in the trust deed. The facts in this case disclose an excellent record of trust company management.)

Walter W. Downs is about 28 years of age and unmarried. His father and mother are dead. He has never engaged in any business. After his father's death he came into possession of 154 acres of valuable land. He was addicted to the use of intoxicating liquors to such an extent as to be unable to attend to his business, or to manage his affairs. On December 2, 1910, he was indebted to numerous persons to the amount of $3,000 or more and was in a sanitarium under treatment for intoxication. At the recommendation of his physician he asked the Security Trust Company of Lexington, Ky., to act as his trustee with respect to his entire property, the creator of the trust to be the sole beneficiary. The trust was accepted, the trust deed containing a provision requiring consent by the trust company to any changes. The trust company advanced sufficient money to pay off the indebtedness and leased the lands so as to produce an income. It took in charge all his affairs and after two years sold the land for $170 per acre, which says the court "was, to say the least, a very advantageous trade, because landowners living in and near this property testify that its value was approximately $125 to $140 per acre." The trust company judiciously invested the money in productive securities. Becoming tired of the arrangement that resulted so greatly to his benefit, Downs instituted an action to revoke the trust. He alleged that the purposes of the trust had been accomplished, his debts paid, and his health recovered to such an extent that he could now manage his own affairs. The trust company denied that he had recovered his health and averred that Downs was habitually in such an

intoxicated condition as to incapacitate him for business and that the estate would be endangered by revocation of the trust. The trust company offered to resign and settle its accounts, but recommended that the trust be continued until the trustor by sober conduct, had shown himself capable of managing his estate. Evidence was taken and it was decided by the Chancellor and affirmed by the Court of Appeals of Kentucky that the trust company was right, that the trust should be continued and the trust company should remain as trustee until the objects of the trust became actually fulfilled. The court of last resort says: "Looking to the purposes and intent of grantor, as well as trustee, in the making of the deed, we conclude that Downs was actuated by fear of danger more from within than from without, and he purposed to so fix his property and estate as to place it beyond his power to waste or dissipate it. He did not reserve to himself the right to revoke the trust absolutely, or to cancel the deed, but only to make such changes in the uses of the trust with the assent of the trustee as might from time to time appear proper to him. But in order that he might not act irrationally he wisely provided a check upon his own actions, requiring the assent of the trustee to such new appointments before it could become effective. *** When a deed of trust provides a particular mode of revocation, an effective revocation may be made only by pursuing that mode."-Downs vs. Security Trust Company (194 S. W. 1041).

COMPENSATION OF EXECUTORS

(Executor is bound by provision in will fixing amount of compensation.)

A will provided that the executor's and trustee's compensation should be such as a majority of the heirs should award him. It was contended by the executor-trustee that he was entitled to a reasonable compensation "regardless

Capital and Surplus

$2,500,000.00

of what the provisions of the will may be or what the heirs may do or say." The Supreme Judicial Court of Massachusetts, however, says: "It is common knowledge that testators frequently provide in their wills a mode or amount of compensation to executors for settling their estates. An executor who accepts the trust under a will containing such a provision is estopped from claiming any compensation other than that which he is entitled to under the provisions of the will. The executor was not bound to accept the trust, but having done so he is entitled to receive only the compensation named in the will, whether that sum be more or less than a reasonable sum. Under the statute compensation is not an absolute right but is one within the discretion of the court to a large extent and it may be wholly disallowed. We are of opinion the statute was not intended to restrict testators from fixing compensation to the exclusion of any statutory allowance."-Bailey vs. Crosby (116 N. E. 238).

REMOVAL OF EXECUTOR

(An executor may not be removed merely because he presents a claim against the estate, or claims that property ostensibly constituting part of the estate in reality belongs to him.)

It ap

An application was made by Helen M. Drummond, a legatee to whom the decedent bequeathed one-sixth of his estate, for the removal of Walter J. Drummond as executor. The application was opposed by legatees who are entitled to two-thirds of the estate. peared that the decedent and Walter J. Drummond entered into a partnership in 1900 and that the partnership continued until it was terminated by the death of the decedent on the 22d of January, 1916. It was alleged that the executor stated that the partnership was insolvent, that the decedent's estate was indebted to him as surviving member of the partnership and that among the creditors of the firm are cer

tain corporations that are owned or controlled by the executor. It was contended that the individual interests of the executor were adverse to and in conflict with his duties as executor and he should therefore be removed. Surrogate Fowler, however, holds to the contrary. He says: "I have carefully examined the authorities upon the question and fail to find an authoritative decision which holds that an executor may be removed merely because he presents a claim against the estate, or claims that property ostensibly constituting part of the estate in reality belongs to him. Such a cause for removal does not seem to have been in contemplation of the Legislature, for it is expressly provided in section 2679 that upon the judicial settlement of the account of an executor he may prove any debt owing to him by the decedent or any claim which he may have against the estate." In re Drummond's Estate (165 N. Y. Supp. 78).

ESCROWS

(Bank receiving title deeds, etc., in escrow with instructions as to their delivery to a purchaser on certain terms is liable in damages for violating instructions.)

Frank Keith delivered an assignment of contract held by him for the purchase of the southwest quarter of section 23, township 135 north of range 97, and also a warranty deed to the same premises to the First National Bank of New England, N. D., and a certain written instruction with reference to delivery of the assignment of contract and warranty deed to W. T. Loomis on the payment of $1,924.59. It was claimed by Keith that the bank turned over the assignment and deed but did not turn over the money. Judgment in his favor is upheld by the Supreme Court of North Dakota. Such a contract by the bank was not ultra vires. It was a contract commonly assumed by banks. "The multitude of transactions which are con tinually being transacted in every community

oftentimes require the selection of a third person or party as a depositary, through which and by which transfer of papers and important documents may be made, and banks are most frequently used as depositaries on such occasions, and where the party or person assumes to and does act as the depositary, he is absolutely bound by their terms and conditions of the deposit and charged with a strict execution of the duties voluntarily assumed, and such party is liable for damages if he improperly part with the deposit, and this is true whether the depositary received any consideration or not for its services."

The Star Spangled Banner

"Old Glory" looms up these days with a new significance, inspiring every true American to renewed loyalty and reverence. It was, therefore, a happy thought when the Manufacturers Trust Company of Brooklyn decided to send to its depositors and friends an attractive, miniature sized booklet which might be conveniently carried in the vest-pocket, containing the words of our National anthem and a brief biography of the composer, Francis Scott Key, together with a set of rules of etiquette in displaying the Star Spangled Banner.

Notable Gains Shown by Syracuse Trust Company

Aggregate deposits of $13,317,501 and resources of $14,983,807 shown in the June 20th official statement of the Syracuse Trust Company of Syracuse, N. Y., indicates substantial increases during the past year. The resources embrace loans and discounts of $9,711,369; investment securities at market value $2,551,713; cash on hand and in banks, $1,932,257 with customers' liabilities on acceptances amounting to $300,000. The capital is $500,000; surplus fund $500,000 and undivided profits $182,668.

Million Deposit Gain by Fidelity Trust
Company of New York

During the past year the deposits of the Fidelity Trust Company of New York have increased from $11,686,539 to $12,673,973. Increase in undivided profits after payment of all fixed expenses and dividends also reflects excellent earning capacity. The capital is $1,000,000; surplus $1,000,000 and undivided profits, $310,984. Total assets are $15,198,710, including investments of $3,682,086; loans and bills purchased $7,422,255; cash on hand and in banks, $3,232 864.

Official Promotions at Hibernia Bank and Trust Company of New Orleans One of the prime reasons for the splendid growth of the Hibernia Bank and Trust Company of New Orleans is the efficiency and fine spirit of co-operation which animates the executive as well as clerical forces of that institution. Not the least factor in attaining such result is the policy of filling all vacancies on the principle of merit and faithful service. This was exemplified in the latest official promotions of P. H. Wilkinson from assistant bond officer to bond officer and L. V. DeGruy from assistant trust officer to trust officer. Mr. Wilkinson has

Mortgage Investments

been connected with the bond department of the Hibernia ever since that branch of service was established. Previously he had served as assistant cashier of the Delta Trust & Banking Company of Vicksburg. Mr. DeGruy, who has assumed his duties as trust officer has been with the Hibernia for the past 12 years.

Another important factor which has made the "Hibernia spirit," a valuable asset to the company is the generous manner in which the management has provided for the welfare of its employees. Only recently the company negotiated a blanket group life insurance policy for all employees.

Cox & Co. [France] Ltd.

place their branches in France at the disposal of the Military and Naval forces of the United States, in Europe, for the remittance of funds and general banking business.

This bank was formed as a subsidiary of Cox & Co., founded in 1758, 16 Charing Cross, London, the official British Army Agents, for the convenience of the British Army in France.

Branches have been established with a British Staff at all the chief military bases:

Paris, Rouen, Havre, Boulogne, Amiens, Marseilles and agencies at

Cox & Co., 16 Charing Cross, London

and

London & South-Western Bank, Ltd.

170 Fenchurch Street, London

who are the joint proprietors.

War-time conditions have no apparent effect upon the growth of the Plainfield Trust Company of Plainfield, N. J., which reported another notable increase in deposits under date of June 20th, the increase during the past year amounting to over a million and a half dollars, bringing the total to $8,074,273. Capital stock amounts to $300,000 with surplus and undivided profits of $334,646. Assets aggregate $8,781,314 with cash and reserve of $1,100,470; demand and time loans and bills purchased, $4,962,573; railroad and other bonds at market value, $1,381,925; bonds and mortgages, $1,203,834.

Security Trust Company of Detroit Gratifying gains are reflected in the June 20th statement of the Security Trust Company of Detroit which has capital of $500,000; surplus of $500,000; undivided profits of $420,832 and trust deposits of $4,809,000 with total resources of $6,286,135. The officers are: Charles C. Jenks, president; Lem. W. Bowen, vice-president; Albert E. Green, vice-president; Claude A. Guerin, assistant secretary; Lewis K. Walker, assistant secretary; Robert L. Nixon, assistant secretary; John C. Shaw, assistant treasurer.