Philadelphia

Special Correspondence

PRODUCTION

CONTINUES AT HIGH
RATE

Philadelphia banking judgment views the present and prospective business situation with confidence and assurance that after the customary midsummer lull, there will be renewal of activity along normal lines. Reduction in wholesale commodity prices, lessened production and demand in textiles and some other lines together with a less tense situation in regard to employment, are adjustments making for sound recovery later on. The banking and credit position is strong, so that ample accommodation is available for all legitimate expansion. Speculative activity in either stocks or commodities, at this stage, are frowned upon, however.

According to reports received by the Federal Reserve Bank of Philadelphia, industrial production continues at a high pace. To quote from the latest survey:

"With the exception of textile plants, many of which are operating on reduced schedules, production continues at a high rate, and the output of several basic commodities, such as pig iron, steel ingots, and petroleum, has made new records. Although the scarcity of labor is still great in certain industries, there is a somewhat easier condition in many lines. The decreased operating schedules in textile plants have reduced labor requirements to some extent, and the shortage in other industries is not so acute, although undoubtedly more men could be used, especially in the iron and steel plants. Advances in wages are still numerous, and our index of average weekly wages in this district has increased sharply. That unemployment is at a minimum is indicated by reports from five of the principal cities in this district estimating that only slightly over 7,000 persons are out of work. This is the lowest figure since employment records were started at the beginning of 1921. That consumption is still heavy is indicated by reports of wholesalers and retailers in this district."

GIRARD NATIONAL MAKES GOOD SHOWING

The June 30th financial statement of the Girard National Bank of Philadelphia shows an increase in surplus and net profits since April 3d, of from $7,791,485 to $7,925,908. The capital is $2,000,000. Aggregate resources on June 30th amounted to $77,701,892, em

bracing loans and investments of $47,318,275; United States Government securities, $7.757,500; due from banks, $15,295,232; cash and reserve, $4,424,687; exchanges for Clearing House, $1,920,529; acceptances, $746,004. Deposits total $59,212,724.

Mr. Joseph Wayne, Jr., president of the Girard National Bank, recently returned from a trip to Europe very much benefited in health. Associated with Mr. Wayne in the executive management of the bank are: Evan Randolph, vice-president; A. W. Pickford, vice-president; Charles M. Ashton, cashier; Alfred Barratt, asst. cashier; David J. Myers, asst. cashier; Walter G. Patterson, asst. cashier.

Harry R. Anderson and Carl Royer have been appointed assistant treasurers of the Fidelity Trust Company of Philadelphia.

C. Marvin Young, who has been connected with the Morrisville (Pa.) Trust Company since it opened three years ago, has been elected treasurer.

The directors of the Oil City Trust Company of Oil City, Pa., under date of July 2d, have added $100,000 to surplus, making the surplus of the company $1,800,000 in addition to the capitalization of $300,000.

INCREASE

"Recent developments have clearly indiIcated that the peak of the spring boom has been definitely passed. There has been a distinct slowing down in the tremendous pace of business activities. This recession has been partly seasonal and partly due to some overproduction in a few lines. However, ultimate consumption is enormous, and no large quantities of stocks are speculatively held. As a result, there is no basis for fear of a precipitate decline in general trade or in prices, as in 1920."

A special meeting of Franklin Trust Company stockholders has been called to act on a proposal to increase the capital stock from 10,000 to 23,000 shares. The par value of the stock is $100 and the increase in capital will amount to $1,300,000. If the increase is approved by the shareholders, those of record on August 1st will be entitled to subscribe to 5,000 shares of the new stock in proportion to their holdings, at the rate of $200 a share, this stock to be issued only at the discretion of the board of directors. The company recently purchased the 20-story building being erected at Fifteenth and Chestnut streets, the largest single real estate transaction in the history of the city.

PROMOTIONS AT FOURTH STREET NATIONAL BANK

George E. Stauffer was recently appointed a vice-president of the Fourth Street National Bank of Philadelphia. Mr. Stauffer, who has been an assistant cashier, was formerly a National bank examiner in this district. C. F. Weihman and C. R. Horton were appointed assistant cashiers. Mr. Horton has been with the baix for twenty-five years. H. C. Reifsnyder was appointed auditor. Mr. Reifsnyder has been connected with the institution for twenty-six years. The appointments become effective July 1, 1923.

The June 30th financial statement of the Fourth Street National Bank shows aggregate resources of $69,543,167 including loans and investments of $46,799,478; cash and reserve, $5,911,644; due from banks, $12,204,782; exchanges, $3,859,169; acceptances and letters of credit, $768,093. Deposits total $56,875,104. Capital is $3,000,000; surplus and profits, $8,788,097.

Considerable interest has been evidenced by trust officers and counsel in this city in the discussions in recent issues of TRUST COMPANIES Magazine relating to the articles by Mr. Frederick Vierling on "Amortization of Premiums and Accumulation of Discounts on Trust Investments." The general conclusion is that while Mr. Vierling's argument is well developed there are practical and legal considerations to be observed. For example, the Superior Court in the case of Boyer vs. Chauncey, decided in 1900, gave a flatfoot opinion forbidding the practice of charging any portion of the premium against, income from trust investments in bonds that the matter has been a settled question in Pennsylvania since that date.

An opinion to the Pennsylvania State Banking Department holds that loans to directors of banks secured by bond and mortgage must be included in the amount of loans made to each director.

The Philadelphia National Bank reports under date of June 30th total resources of $131,754,000; deposits, $105,978,000; capital, $5,000,000; surplus and net profits, $11,533,071.

The new Community Trust Company opened for business on June 18th at 252 South Broad street, with capital of $200,000 and surplus of $40,000. Norman S. Sherwood is president.

The board of directors of the Colonial Trust Company of Philadelphia have elected Clyde P. Hamilton an assistant treasurer.

The Northern Central Trust Company of Philadelphia has transferred $100,000 to surplus. The American Bank & Trust Company transferred $69,000 to surplus.

The Empire Title & Trust Company of Philadelphia will open an additional office at 5944 Market street in September.

Directors of the West Philadelphia Title & Trust Company, elected Walter K. Hardt, - vice-president of the Fourth Street National Bank, a director.

At a recent meeting of the officers and executive committee of the Bedford County Trust Company of Bedford, Pa., Clarence A. Diehl was chosen treasurer of the institution.

At a meeting of the board of directors of the Market Street Title and Trust Company of Philadelphia, B. G. Moore, one of the directors, was elected second vice-president.

ANTEEING MORTGAGES

The Philadelphia Company for Guaranteeing Mortgages reports guarantees outstanding May 31, 1923, of $50,902,089, an increase of $11,839,967. In the last year the company issued $18,759,304 of guarantees. In the same period there were cancellations aggregating $6,919,338. It was the most successful year in the company's history, the surplus fund being increased from $700,000 to $1,000,000. Dividends paid totaled $180,000, surplus earnings for the year aggregat

have authorized an increase in the capital stock from $2,000,000 to $3,000,000.

The Fourth Street National Bank of Philadelphia is reproducing in printed form and distributing each month the survey of business and financial conditions in the third Federal Reserve, district compiled by the Philadelphia Federal Reserve Bank.

The Lycoming National Bank and the Northern Central Trust Company of Williamsport. l'a., have been consolidated.

Boston

Special Correspondence

FIDUCIARY WEALTH IN

MASSACHUSETTS

There is probably no other State, aside from New York, which offers greater opportunities for development of corporate fiduciary services than Massachusetts. The trust companies, although they have made notable gains in their trust department operations within the past few years, hold but a relatively small proportion of estates and trusts. Among the old families the habit of appointing individuals and counsel as executors and trustees has been observed from the earliest days. Tax laws also militated until within recent years against the appointment of trust companies. Likewise many of the directors of trust companies and banks have been entrusted with estates and trusts. Their record of administration has been excellent although there have been instances of the failings and drawbacks which attend individual trusteeship.

A recent article in the Boston Post by John Bantry throws some interesting light on the growth of a new aristocracy of wealth in Massachusetts. While the traditional conservatism of the old New Englanders has served to keep old estates intact and well guarded a new galaxy of men of wealth has made its appearance within the last two decades. Mr. Bantry gives a list of the 20 men in Massachusetts which have superseded such well known old names as the Lowells, Cabots, Lawrences, Sears, Thayers, Gardners, etc.

The richest man in Massachusetts, according to Mr. Bantry's compilation, is Frederick S. Mosely, senior member of the banking firm of F. S. Mosely & Co., whose wealth is estimated at 45 millions. Henry G. Lapham is rated second with 35 millions. Frederick H. Prince, whose wealth was acquired through investments in Chicago, and Charles Hayden of Hayden, Stone & Co., are each credited with being worth 30 millions. Edwin S. Webster of Stone & Webster is slated as possessing 20 millions, and Robert Winsor of Kidder, Peabody & Co., with 18 millions. A. C. Ratshesky, president of the United States Trust Company of this city, is put in the 15 million dollar class. Earl P. Charlton, a director of the First National Bank of Boston, is said to possess a fortune of 25 millions. Albert C. Burrage, a lawyer by profession, is credited with 30 millions, and Edwin F. Adkins, who has extensive in

AMERICAN

TRUST COMPANY

Member Federal Reserve System

50 STATE STREET BOSTON, MASSACHUSETTS

Chartered 1881

Transacting a General Banking Business

Capital, $1,500,000.00 Surplus, 2,000,000.00

vestments in Cuban sugar, are each slated in the 25 million class. Andrew W. Perkins, also a large investor in Cuban sugar, is said to possess about 20 millions. Andrew W. Preston, principal owner of the United Fruit Company; Charles F. Ayer and William W. Wood are each credited with 18 millions. Maurice J. Curran appears in the 25 million category.

OLD COLONY TRUST COMPANY

The June 30th financial statement of the Old Colony Trust Company of Boston shows combined resources of $151,334,744, including loans of $96,891,429; U. S. Government securities, $6,306,168; other investments, $14,548,652; cash and due from banks, $20,925,568; exchanges, $3,683,948; acceptances, $5,540,937, and banking offices, $3,438,039. Deposits total $127,073,023. Capital is $7,000,000; surplus and undivided earnings, $10,320,220.

Ernest B. Dane and Elmer E. Silver have been elected directors of the Boston Safe Deposit & Trust Company.

National Shawmut Bank has been awarded the City of Boston $2,000,000 temporary loan, due November 3, at 4.12 per cent. premium.