RESOURCES $23,000,000.00

in excess of any previous record, aggregating $20,600,000. Exports were enormous, exceeding by more than $28,000,000 any previous figure and amounting to $135,000,000. Imports, however, showed a falling off of $18,000,000. Indeed, the year closed with a 'decided feeling of optimism which is reflected in banking and trust company circles, in business, manufacturing and trade generally.

Satisfactory Year for Philadelphia Banks and Trust Companies

Allowing for abnormally low money rates, which prevailed during most of the past year, the National banks and trust companies of Philadelphia may lay claim to a fairly remunerative year. Based on November 10th official returns the National banks earned on book value an average of 3.18 per cent. and on capital employed 9.79 per cent. Trust companies earned an average of 4.39 on book value and 11.43 on capital. The policy of writing off all doubtful values and allowing for depreciation in securities, which was generally observed at the close of 1914, explains the relatively small amount charged off during the year 1915 on the part of both National banks and trust companies. The marked improvement in the bond market and enhancement of security values during the last few months find reflection in the excellent annual reports rendered during January.

Despite the low average interest rate secured on collateral loans a number of trust companies are able to show larger profits and increases in surplus and undivided profits than made during the previous year. A comparison of the official reports of trust companies as of November 1, 1913 and November 11, 1915 shows only a small net increase in the combined surplus and undivided profits, after payment of regular dividends and other fixed charges. When it is considered that loan and money rates have been on such a low basis and that a certain amount of depreciation in security values during the

ORGANIZED 1807

early part of the year had to be allowed for, the surprising thing is that there should be any increase at all in surplus and undivided profit accounts. In the resources of trust companies the largest increase is shown in cash reserves and amounts due from banks which total $103,789,709 as compared with $72,225,000 on Nov. 2, 1914. Loans on collateral increased during this period from $131,255,000 to $136,279,000; loans on bonds and mortgages decreased from $10,202,000 to $8,875,247; bond and stock investments increased from $247,863,000 to $266,522,162; mortgages and judgments of record increased from $47,540,000 to $53,998,000 with aggregate resources standing at $701,046,000, an increase of over $61,000,000 for the year.

Trust companies of Philadelphia may particularly congratulate themselves upon the marked gains reported by the trust departments. At the rate of increase which is shown. during the past few years in the total volume of trust funds the aggregate promises to reach the billion figure during the current year. The actual holdings of trust funds is $948,375,563, a gain of $38,000,000 during the past year. Five years ago trust funds amounted to $657,191,000, thus showing an increase of nearly $300,000,000 for that period. It is interesting to note that the number of comparatively small estates and trusts confided to trust companies is steadily growing from year to year. The records of the orphan court further warrant the statement that comparatively few important wills involving large property interests, are filed wherein the names of trust companies fail to appear as trustee or executor. It is especially in connection with the economical handling of estates, in preserving the value of real estate and in increasing the income basis for beneficiaries that the trust companies of this city have established an enviable reputation.

Rollin C. Bortle, who has been associated with N. W. Halsey & Co. since 1905, has been appointed manager of the local office of that firm.

Federal Reserve System and Trust Companies Up to the present time no trust company in Pennsylvania has filed application for membership in the Federal Reserve system. This is due to the fact that such membership, at this time, would entail unnecessary hardships and restrictions. In Philadelphia, for example, the large trust companies do not purchase commercial paper and therefore have no means of availing themselves of the rediscounting facilities afforded by the Reserve banks. In fact, it is not regarded as desirable and consistent with true trust company development that they should invade the commercial banking field in order to avail themselves of benefits which might be obtained by membership in the Federal system. In no other city is the distinction so clearly drawn as in Philadelphia in regard to the respective fields of activities of commercial banks and trust companies. This has brought about a wholesome relationship which it would be unwise to disturb.

Although counsel for the Philadelphia Federal Reserve Bank holds that the laws of Pennsylvania do not authorize National banks to engage in trust business the Federal Reserve Board has granted permission to a number of National banks in the smaller communities of the State to exercise the functions of trustee, executor, administrator and registrar of bonds or stocks. There is no evidence that these banks have thus far actively endeavored to avail themselves of these privileges and the belief is that they will not do so because of the extremely doubtful character of the authority assumed by Congress in delegating authority to the Federal Reserve Board to permit the exercise of these fiduciary functions. A test case is to be brought in the courts of this State to determine if the exercise of trust powers by National banks is not in contravention to the laws of the commonwealth similar to the suit already decided in favor of trust company contentions in Illinois and the suit now pending in Michigan.

E. Lawrence Fell Rowland Comly William Bradway

JOHN H. WOOD Secretary

George M. Bunting
Walter Clothier
Alfred H. Lippincott

Pennsylvania Company for Insurance on Lives, etc., Increases Dividend Rate Unaffected by cross-currents in general business and financial conditions the century old Pennsylvania Company for Insurances on Lives and Granting Annuities continues its remarkable record of uninterrupted progress. In fact the past year has been one of the most prosperous in the history of this "old line" trust company which was incorporated 103 years ago when this Republic was still in its infancy. Recent progress has justified a further increase in the dividend rate from 24 to 28 per cent. per annum, as announced recently by the board of directors. At the same time the substantial sum of $500,000 was added to surplus, making that fund $4,500,000 with capital of $2,000,000.

Mr. C. S. W. Packard has been president of this great trust company since 1889 and during his sixteen years of administration the surplus has been increased from $2,000,000 to $4,500,000, all of which has been earned and the dividend rates advanced from 18 per cent. per annum to 28 per cent. per annum. Deposits have increased from $16,400,000 to over $31,000,000 and individual trusts, from $141,000,000 to over $207,000,000, the largest of any company in this State.

Caspar W. Norris has been elected a director of the Commercial Trust Company filling the vacancy caused by the death of Robert C. Drayton.

George Albert Lewis, retired banker and merchant died recently at his home in this city. Mr. Lewis was cashier of the Farmers and Mechanics National Bank in 1857 and became cashier of the City National Bank in 1863, a position he held for 37 years, resigning in 1900.

O. Howard Wolfe, assistant cashier of the Philadelphia National Bank, addressed the Philadelphia Chapter, American Institute of Banking, recently on the subject of: "The Theory and Practice of Routing Checks."

Total liabilities..

3,244,000 70,329,000

2,465,000

76,231,000

4,156,000 79,668,000

7,593,000 82,097,000

3,389,345

84,588,628

Total Trust Funds.....

Land Title & Trust Company Following a substantial expansion in the business of the Land Title & Trust Company during the past year the directors have authorized an increase in the annual dividend rate from 14 to 16 per cent. by declaring a quarterly dividend of 4 per cent. at the last meeting. The official statement of the Land Title &. Trust Company as of November 11, 1915, shows aggregate resources of $18,435,074 with capital stock of $2,000,000, surplus fund of $4,500,000 and undivided profits of $225,754. Trust funds amount to $39,838,050 and face value or corporate trusts $94,612,000. The officers are: President, William R. Nicholson; vice-president, Richard M. Hartley; second vice-president, Edward H. Bonsall; third vice-president, Albert A. Outerbridge; treasurer, Lewis P. Geiger, Jr.; secretary, Louis A. Davis; trust officer, Claude A. Simpler; real estate officer, J. Willison Smith.

Levi L. Rue Elected Head of Philadelphia Clearing House

Mr. Levi L. Rue, president of the Philadelphia National Bank and member of the Federal Advisory Council of the Federal Reserve Board, who rendered such valuable services in helping to restore equilibrium in banking and exchange conditions following the outbreak of the European war, has been elected president of the Philadelphia Clearing House Association. Mr. Rue is also a director of the Pennsylvania Railroad and of the Provident Life & Trust Company of Philadelphia.

At the annual election of the Philadelphia Clearing House Association the two governing committees were chosen as follows: Clearing House-J. R. McAllister, Effingham B. Morris, E. F. Shanbacker, Wm. T. Elliott, Charles S. Calwell, Joseph Wayne, Jr., and Wm. J. Montgomery. Committee on Arbitration-Wm. H. Carpenter, Harry G. Michener, Wm. R. Nicholson, H. W. Lewis, Edw. A. Schmidt, Thomas S. Gates, John B. Harper.

The results shown in the annual report submitted to stockholders of the Girard Trust Company at the last annual meeting affirms the fact that adherence to highest trust company ideals does not interfere with earning capacity. Although the average rate secured on collateral loans during the past year was only 4.43 as against 4.91 in 1914 the Girard Trust Company shows profits of $1,144,200 as compared with $1,076,793 for the preceding twelve months. Undivided profits increased $137,220 making the total of that fund $1,274,864. Out of the earnings for last year were paid $900,000 in dividends, $10,000 to employees' insurance fund and $89,104 for cost of completing during the year the new safety deposit vault, the balance being carried to profit and loss. Investment holdings were $16,322,183, compared with $15,312,401 the previous year. The following table shows net earnings of the Girard Trust Company for a series of years:

1915 .$1,144,200

1909

.$1,187,573 1,009,887 1,127,105 1,160,755 898,829

809,484

JAMES P. WINCHESTER President

D. C. ASPRIL Treasurer

The number of new accounts in the trust department was 310, making the total number 2,413, of the total approximate value of $181,000,000, as compared with $171,000,000 last year. The company was appointed trustee and in other fiduciary capacities in 13 additional corporate matters during the year, representing $42,000,000. Face value of trusts executed to the company as trustee to secure bond and equipment trust issues is $1,042,277,471; total securities deposited with company by corporations to secure collateral trust bonds aggregate $343,277,471; and registrations of corporation stock $530,061,691.

The company's balance sheet at close of business November 30th shows total assets of $56,699,671, in which is included $2,273,763 cash in vault, $11,281,570 due from banks and bankers, $22,269,788 collateral loans and $16,476,866 investment securities. The largest liabilities item is $43,371,674 deposits; capital stands at $2,500,000, and surplus at $7,500,000 and undivided profits, less expenses and taxes paid are $1,274,869.

At the annual meeting Thomas DeWitt Cuyler, C. Hartman Kuhn, Charles Edward Ingersoll, John S. Jenks, Jr., and Charles J. Rhoads were re-elected managers for four years.

William S. Godfrey has been elected a director of the Philadelphia National Bank.

Philadelphia National Bank Establishes
Another High Record

For the first time in the history of local banking the Philadelphia National Bank reported on October 4th last resources of over $100,000,000, the largest total for any bank in the State of Pennsylvania. A statement of condition issued under date of January 3, 1916, shows another marked gain in resources as well as in deposits. From $100,000,000 the resources have increased to $110,857,750. Deposits aggregate $95,919,667, embracing $63,684,460 individual deposits and $32,235,207 bank deposits. Resources include loans and discounts of $52,071,105; cash and reserve and exchanges for Clearing House, $33,198,809; due from banks, $17,884,979, and customers' liability under letters of credit and acceptances, $7,702,855. The capital of the Philadelphia National Bank is $1,500,000, surplus and net profits (earned) $5,005,576. The officers are as follows: Levi L. Rue, president; William S. Maddox, vicepresident; Horace Fortescue, vice-president and cashier; David W. Stewart, assistant cashier; Frank P. Stephens, assistant cashier; O. Howard Wolfe, assistant cashier.

Arthur Wollaston Sewall, president of the General Asphalt Company has been elected to the directorate of the Franklin National Bank to succeed the late Robert C. Drayton.