C. J. BELL President, American Security & Trust Company an office in Alexandria and temporary quarters in Washington. After a few months the company was incorporated under the new law relative to trust companies passed by Congress in 1890. In addition to trust, safe deposit, loan and mortgage and banking powers the company was also authorized to conduct a storage business. This latter function was designed to meet the peculiar needs of Washington life with its fluctuating population, requiring storage and similar facilities. The company occupied its own new building at 1405 G street, N. W., and began with authorized capital of $1,250,000, of which $770,937 was paid up after the first. The growth of the company was steady, particularly in accumulation of deposits and building up trust business. In 1895 the sum of $22,070 was paid out in interest to checking depositors. By 1898 the surplus account had reached $300,000. After ten years of existence accounts totaled 2,230 with surplus and undivided profits of $497,913, equal to 40 per cent. of capital. In 1902 the dividend rate on stock was increased from 6 to 7 per cent. In 1904 capital was increased from $1,250,000 to $3,000,000 with surplus of $1,500,000. In the following year the company took possession of its present attractive bank building on the historic site opposite the Treasury. It was the site of the branch of the old United States Bank which was the subject of much political controversy during the administration of Andrew Jackson. Ꭺ feature of the present home of the company is its classical outline, the forty-foot Ionic columns being identical with those of the Treasury. In 1905 a corporation was organized under the name of the Security Storage Company to take over the company's warehouse property and business with capital of $500,000. Exceptional success was also experienced in connection with the rental and insurance branches of the real estate department conducted by the company. In 1907 the dividend rate was increased to 8 per cent. In 1909, with profits exceeding all previous records, the dividend was further increased to 10 per cent. In 1910 capital and surplus fund reached the combined total of $5,000,000. Continued growth made necessary the acquisition of additional quarters adjoining the banking home on Fifteenth street. In 1917 the American Security and Trust Company rendered valuable services to the Government in distribution of the various issues of Liberty bonds, selling approximately $32,000,000 worth. Twenty-six members of the staff served actively in the Great War. In 1918 a savings department was opened and safe deposit box capacity was increased. The company began the year 1919 with resources of $17,500,000. In that year also the Home Savings Bank was merged with the American Security giving combined capital and surplus of $5,400,000. The banking houses of the Home Savings Bank were continued as branches with the exception of the Fourteenth Street Branch, which transferred its business to the main office. In 1920 a new business department was established. In May of this year the fifth banking office was established at 1140 Fifteenth street. The present dividend rate is 12 per cent. with an additional 3 per cent. paid last year. Much of the success of the American Security and Trust Company is due to the high standard of administration and splendid policies carried out by its president, Mr. C. J. Bell, and the capable men who are associated with him in the executive management. Mr. Bell has always held firmly to conservative trust company policies the high sense of responsibility which attaches to fiduciary administration. H. H. POND ELECTED PRESIDENT PLAINFIELD TRUST COMPANY At a recent monthly meeting of the board of directors of The Plainfield Trust Company of Plainfield, N. J., Harry H. Pond was elected president to succeed Orville T. Waring, deceased. For the past thirteen years Mr. Pond has been a resident of Plainfield. He has been actively identified with civic and local projects tending to further the growth and welfare of the community. During the World War he served as chairman of one of the local Liberty Loan Committees. He is now the president of Muhlenberg Hospital's board of governors. Like many other men Mr. Pond owes his success to his ability and capacity for hard work. He began his career in a small way as office boy in the Vineland National Bank. His initiative, rare ability and energy won him advancement rapidly. While serving as cashier of the Vineland Bank he organized the Savings Bank of Cumberland County, which he afterward converted into the Vineland Trust Company, and for several years was the active head of both institutions. He became secretary and treasurer of The Plainfield Trust Company in 1910. In 1911 Mr. Pond was elected to the presidency of the New Jersey State Bankers Association. In 1913, although continuing as a member of the board of directors of the Plainfield Trust Company, ir. Pond resigned as secretarytreasurer to become vice-president of the Mechanics and Metals National Bank of New York, one of the largest financial institutions in that city, which position he still holds. Another important feature of the recent meeting was the election of Charles W. McCutchen, one of the organizers of the company, and a member of the board of directors since its inception, as chairman of the board. This is the first time such a position has been filled and it comes to Mr. McCutchen in recognition of his services. DeWitt Hubbell was unanimously elected vice-president in addition to the office of secretary and treasurer, which he has held since 1913. Mr. Hubbell was formerly connected with the Mutual Alliance Trust Company. and the First National Bank of New York before coming to The Plainfield Trust. His keen sense of fairness and his generous attitude as the active executive head of the bank have won the loyalty and co-operation of the junior officers and employees. Mr. Hubbell's unfailing courtesy and ability to render the best in banking service and to maintain the standards characteristic of this institution, have won for him public confidence. Since June 4, 1902, when the Plainfield Trust Company was founded, its development has been remarkable. Beginning with deposits of $124,000 the deposits of the bank now amount to over $9,300,000. The past year has been an auspicious one for the bank. It marked the second increase in capital stock since the organization of the company. Last December a 66 2/3 per cent. stock dividend was declared, which increased the capital stock from $300,000 to $500,000, giving the company a combined capital, surplus and undivided profits of over one million dollars, with total resources of over $10,000,000. The men associated with the management of this institution as members of the board of directors, insure a prosperous future. The directorate is composed of the following: Charles W. McCutchen, chairman of the board; Henry M. Cleaver, Frederick Geller, Arthur M. Harris, Augustus V. Heely, DeWitt Hubbell, Edward H. Ladd, Jr., Harry H. Pond, Charles A. Reed, Frank H. Smith, John P. Stevens, Samuel Townsend, Cornelius B. Tyler and Lewis E. Waring. The executive management of the bank is in charge of: Harry H. Pond, president; Augustus V. Heely, vice-president; DeWitt Hubbell, vice-president, secretary and treasurer; F. Irving Walsh, assistant secretarytreasurer; H. Douglas Davis, assistant secretary and trust officer; Russell C. Doeringer, assistant treasurer. ORAL WILL ADMITTED TO PROBATE The oral will of Ernest Charlton Mason, a soldier in the Twenty-seventh Division in France, who disappeared after being made a prisoner by the Germans, was admitted to probate in Kings County, New York, recently by Surrogate George A. Wingate, who was himself an officer in the A. E. F. Mason's will consisted of a conversation with two of his comrades as he lay sick within the German lines. This is the second nuncupative will that was ever admitted to probate in Kings County. The first one was during the days just after the Civil War. Under the law this type of will can only be made by sailors on a vessel in danger or by soldiers on the battlefield. DURANT'S NATIONAL BANK The Liberty National Bank is to be the name of the institution being organized in New York by W. C. Durant, which is to be owned, according to the prospectus by 300,000 shareholders with individual holdings limited to one share. The chairman of the board, the president and directors are to serve without salary or compensation. No commissions are to be accepted in negotiation of loans and no loans will be made to any officers or directors of the projected bank. It is stated that A. F. Cronhardt is to be president and Wallace Zwiener, cashier. The venture will be watched with interest if it should materialize. B. A. Tompkins, vice-president of the Bankers Trust Company of New York, has been elected a director of the Great Western Sugar Company of Denver. William Lane Gillespie, vice-president and assistant to the president of the National Commercial Bank & Trust Company, Albany, N. Y., has been elected a trustee of the Home Savings Bank. Legal Decisions and Discussion RELATING TO BANKS AND TRUST COMPANIES Edited by JOHN H. SEARS, member of the New York Bar and author of "Trust Company Law.' [LEGAL DECISIONS OF SPECIAL INTEREST TO OFFICERS OF TRUST COMPANIES WILL BE REVIEWED AND DISCUSSED IN THIS DEPARTMENT. CAREFUL ATTENTION WILL BE GIVEN TO QUERIES OF A LEGAL NATURE, ARISING OUT OF THE CONDUCT OF THE VARIOUS DEPARTMENTS OF TRUST COMPANIES. SUBSCRIBERS ARE INVITED TO AVAIL THEMSELVES OF THESE FACILITIES WHICH ARE OFFERED FREE OF CHARGE.] TAXATION (States are authorized to tax only the capital stock and real property of National banks.) The Chase National Bank of New York purchased drafts attached to bills of lading for auto trucks at Spokane, Wash. Spokane levied taxes against the bank as the owner of the trucks. The Supreme Court of Washington refers to the rule that the States are entirely without power to levy any taxes directly or indirectly upon National banks or any of their property except such as Congress has authorized. Section 5219, Rev. Stats. U. S., being a part of the National banking act, authorized the various States to tax the capital stock of National banks and their real estate. However, the purchase of drafts does not give the bank absolute title but only something in the nature of a pledge, otherwise the bank would be dealing in personal property in a manner not authorized by law. Since the title to the trucks is not vested absolutely in the National bank the trucks are properly subject to State taxes.-(Chase National Bank vs. Spokane County, 215 Pac. 374.) USURY (Notes discounted with an innocent bank are purged of usury.) Solomovitz was the owner of land on which he desired to construct an apartment house. He applied to a money lender named Stalker, who arranged to advance $16,000 in money and also building materials of the value of $4,000. Solomovitz gave four promissory notes of $5,000 each secured by a mortgage. In addition he made an agreement for the payment of interest at a rate in excess of the legal rate. This agreement made the loan usurious and illegal in the hands of Stalker, but Stalker sold $15,000 of the loan to a bank, without passing to the bank the contract for usurious interest. Renewal notes were subsequently made direct to the bank. This purged the notes and the mortgage of their taint of usury and made them enforceable in the hands of the bank.(Weaver Hardware Company vs. Solomovitz, 235 N. Y. 321, 139 N. E. 353.) BANKER AND IMPORTER (Banker financing importation is not liable to agent employed by the importer.) A custom broker suing the Shawmut Corporation for customs duties, expenses and commissions growing out of a transaction merely financed by the Shawmut Corporation is denied recovery by the Supreme Judicial Court of Massachusetts.-(Downing Company v8. Shawmut Corporation, 139 N. E. 525.) GIFTS (There may be a valid gift of a bank deposit by delivery of the pass book notwithstanding restrictive regulations of the bank.) The gift of a bank deposit may be consummated by delivery of the pass book, and its acceptance by the donee notwithstanding a regulation of the bank which requires that a third person withdrawing an account must present an order signed by the depositor or duly authenticated power of attorney. In the case of Goodson vs. Liles, 96 So. 262, it is held that such a gift is binding on the depositor's estate, hence his administrator is individually liable to the donee if he withdraws the deposit from the bank. SPECIAL DEPOSIT (A special deposit may not be diverted by the bank to another purpose.) A special deposit in a bank or money deposited for a specific purpose remains the property of the depositor or the beneficiary of the special deposit, until the terms of the deposit have been complied with. If the bank diverts the deposit to another use it is liable to the depositor.-(First National Bank of Ashland vs. Preckett, 95 So. 920.) CANADA A Good Customer of Uncle Sam Canada's trade with the United States in 1922 totalled $820,062,373, or an average of $93.00 per head of the population of the Dominion. The Toronto General Trusts Corporation offers unexcelled services as a corporate fiduciary to Trust Companies and individuals in the United States requiring representation in Canada. A progressive institution, this Corporation has behind it 41 years' experience as Executor, Trustee, Administrator, Financial Agent and Attorney, Registrar and Transfer Agent. The total assets under its administration exceeded (December 31, 1922) $129,000,000.00. We invite your business. THE TORONTO GENERAL TRUSTS CORPORATION Established 1882 HEAD OFFICE, TORONTO Branches: Ottawa, Winnipeg, Saskatoon and Vancouver ELECTED PRESIDENT TRUST COMPANY SECTION OF NEW YORK (Continued from page 62) responsible position in 1911 in the trust department of that institution. His work attracted attention and in September of that year he left the New York Trust Company to become trust officer of the Windsor Trust Company under Hon. Clark Williams who had formerly served as State Superintendent of Banks. In 1913 the Empire Trust Company took over the Windsor Trust Company by merger and Curts became the trust officer of the enlarged institution. In February 1918 the New York Trust Company sent for their former clerk and President Buckner offered Mr. Curts the position at the head of their trust department, which he promptly accepted. Mr. Curts is one of the most affable of the younger bankers and attracted favorable comment by his cleverness when in June 1921 he read a paper before the Trust Companies Section of the Bankers Convention on "Trust Company Service and How to Extend It." Francis H. Sisson, vice-president, of the Guaranty Trust Company was president of the Trust Companies Section that year and appointed the Nominating Committee which selected Curts for the position of secretary of the Section for the ensuing year. His work in materially assisting in the formulation of the excellent program enacted at the recent convention led to his choice as president of the Section. Mr. Curts is married and has one daughter; is a member of the Yale Club, of the Bankers Club, and for several years has been much interested in the work of the New York Chapter of the American Institute of Banking. FOREIGN ADMINISTRATOR The Supreme Court of Canada has recently affirmed the decision of the Manitoba Court of Appeal in the case of Prescott vs. Crosby. It was held that an executor or administrator appointed by a United States Court to administer the estate of a person domiciled there at the time of death, may sue in Manitoba on promissory notes made by a person living in that province in favor of such deceased person and which have come into his hands as such executor without first obtaining ancillary administration from the Manitoba Surrogate Court. |