Large Volume of Trust Property Administerea by Virginia Trust Company During the past five years the Virginia Trust Company of Richmond, Va., has been named as executor, co-trustee or trustee of estates and property representing an aggregate value of $40,000,000. One of the most notable appointments was that made several months ago when it was announced that the Virginia Trust Company was named as co-executor under the will of the late Mr. James N. Boyd, who died September 6, 1915, and who was president of the Planters National Bank of Richmond, a former president of the Virginia Trust Company and vice-president of the latter institution up to the time of his death. Mr. Boyd left an estate valued at over $2,000,000 and the Virginia Trust Company is named as co-executor with the son of the testator. At the present time the Virginia Trust Company holds investments in trust as executor, guardian, trustee, etc., kept separate from the company's own assets, aggregating over $8,000,000. The Virginia Trust Company is an institution which places considerations of service and safety above all others. A recent statement of financial condition shows total resources, aside from trust holdings, amounting to $3.757,812, including loans and discounts of $2,350,099; cash on hand and due from banks, $651,674; bonds, stocks and investments, $452,538 and guaranteed bonds, secured by first mortgage on real estate, $303,500. Deposits amount to $2,040,346 with capital stock of $1,000,000, surplus of $300,000 and undivided profits, $41,465. The officers of this ably conducted trust company are: Herbert W. Jackson president; T. C. Williams, Jr., vice-president; John M. Miller, Jr., vice-president; Lewis D. Aylett, secretary; John H. Southall, treasurer; Thomas C. Gordon, trust officer; P. B. Watt, asst. secretary; W. B. Jerman, asst. treasurer. Important Gains Reported by Los Angeles Trust During the past year the Los Angeles Trust & Savings Bank was able to report an increase of $3,652,000 in deposits and the opening of 9.335 new accounts. Officers and directors were re-elected for the ensuing year as follows: Officers: J. C. Drake, president; Motley H. Flint, William R. Hervey and H. W. O'Melveny, vice-presidents; Jay Spence, cashier and secretary. Directors-John P. Burke, George L. Cochran, John S. Cravens, J. C. Drake, J. M. Elliott, Motley H. Flint, W. M. Garland, W. E. Hampton, William Rhodes Hervey, Godfrey Holterhoff, Jr., Stoddard Jess, Gail B. Johnson, L. Lindsay, A. H. Naftzger, H. W. O'Melveny, E. S. Pauly, George S. Phillips, H. M. Robinson, Jay Spence, William R. Staats, W. L. Stewart. Trust Companies A MONTHLY MAGAZINE DEVOTED TO THE TRUST COMPANIES PUBLISHING ASSOCIATION Advertisements of trust companies, banks, financal institutions and advertisers who wish to use the advertising columns of TRUST COMPANIES will be inserted for publication at rates which will be sent on application. lasertions of meetings, dividends, statements, organizations, etc., at special rates for each insertion. Subscriptions: Entered at the New York Post Office as Second New York City Basic versus Sentimental Factors in Wall It There is a popular superstition west of the Hackensack that financial and stock market movements in Wall Street respond to the direction of men who are gifted with clairvoyant Vision. Like the prophets of old they are supposed to be able to discount future business and financial developments before they actually happen. Stock market bulges or declines appear as advance manifestations of periods of affluence or depression, as the case may be. seems hardly necessary to state, particularly in the light of more recent events, that such views are not entertained by those who are more familiar with the machinery of financial and market operations in Wall Street. At a time like this, when international affairs and the European war dominate all other considerations, even the most expert and dyed-in-the-wool financial astrologers must confess to ordinary human limitations so far as sensing the future of the stock market, money rates and the tide of business are concerned. The strength of bearish sentiment in the New York security markets since the first of the year affords a striking illustration that Wall Street judgment is not only fallible, but often led by purely sentimental influences or by artificially created speculative zeal. Last fall all "news" regarding fabulous war orders, revival of activity in leading lines of industry and business, was greedily accepted at face value in order to stimulate public imagination and en 197 courage activity in industrials. Today, the security market shows almost complete indifference to the reports of improvement and enlarged business at home, including recordbreaking railroad earnings, capacity production of steel, increased consumption of commodities and daily announcements of larger corporate dividends. Fundamental factors are evidently ignored so far as they relate to stock values and there is an almost morbid insistence upon what the future or the restoration of peace in Europe may bring forth. At no time have sentiment and conjecture figured so largely in the attitude of security market traders. New Financing and Increased Earnings Enhanced corporation and industrial earnings are reflected in the distribution of $131,234,153 in the form of dividends and interest disbursements for the month of February as compared with $120,934.567 for the correponding month last year. The tendency to finance corporations and railroads on long-term bonds instead of short-term notes is apparent in the decrease of maturing bond and note issues, the maturities for March aggregating $53.935,000 as against $71,903,105 for March, 1915, the February maturities amounting to $36.826,400 as compared with $57.008.783 for the same month last year. One of the chief incidents in the financial district was the recent announcement of the acquisition of the Cambria Steel Company by the Midvale Steel & Ordnance Company. The purchase involves an outlay of $72,900,000 to accomplish which the Midvale Company negotiated a sale to the Guaranty Trust Company and Lee, Higginson & Co. of $50,000,000 twenty-year 5 per cent. collateral trust sinking fund bonds, convertible into stock at any time at $100 a share. American Exchange National to Enter Mr. Louis S. Tiemann, late of the firm of Carleton & Moffat, importers and exporters, recently retired from that firm to associate himself with the American Exchange National Bank, in the development of the foreign field. The recent change in the banking law opens a new field of endeavor for the National banks and it will be the policy of the American Exchange National Bank to pursue a conservative policy in developing both the sterling and dollar credits in accordance with the provisions of the Federal Reserve Bank Act. William F. H. Koelsch was toastmaster at the recent banquet of the New York Credit Men's Ass'n, at which Paul M. Warburg of the Federal Reserve Board delivered an able address. THE SEABOARD National Bank of the City of New York cordially and earnestly solicits accounts, active or dormant, from trust companies throughout the Und States. Interest allowed. Its solicitation is based upon conservatism, service in all banking lipes, excellent facilities, and the fact that its officers give their personal attention to all accounts. SÚRPLUS AND PROFITS, $2,865,000 The Decline in Stock Market Prices Despite the many proofs of prosperous conditions in the domestic situation the New York stock market prices have experienced declines from which only temporary and slight reactions were recorded. It was quite natural to expect that when the United States Steel Corporation placed its common stock upon a 5 per cent. dividend basis and announced the heaviest earnings for any quarter in its history, that the trend toward higher prices in the general list of active and standard securities would continue upward. It is a fact, however, that the decline became even more pronounced following this announcement and that the most notable recession was in U. S. Steel common. Bearish influence gained a stronger hold than before and the public manifested a studied aloofness. In fact, it may be said, that "war stock" speculation is now a matter of the past and that the market is undergoing the reaction which is the logical result of a false technical position, heavy over-buying and over-extension of commission house loans. Besides technical factors the security market was largely influenced by the international diplomatic situation and the large volume of liquidation of American securities held in Europe. The British "mobilization" of American securities contributed very heavily to the estimated absorption of $100,000,000 of bonds and stocks sold here for foreign account during January. The general feeling is, however, that the available supply of American securities held by European investors which are still capable of dislodgment, is nearing the point where such liquidation will cease to be a serious market factor. On the other hand there is the prospect of further diplomatic complications owing to the re-opening of the whole Lusitania controversy because of the German attitude toward armed merchant vessels. The threat of railway men and coal miners to declare strikes unless their demands for higher wages are met DEPOSITS, $45,000,000 is also looming up very large in Wall Street calculations. Although railroads are reporting larger gross and net earnings than at any time in the past the demands of railroad employees can hardly be met without seriously crippling the systems unless the Interstate Commerce Commission shows a more lenient attitude in allowing increased freight rates. In view of the increase of wages granted to steel workers it is expected that coal mine operators will be compelled to make substantial concessions to both anthracite and bituminous workers. These and other factors, including the uncertainty and agitation of an approaching Presidential campaign, make for conservatism in the Wall Street point of view and doubtless influenced the unloading of "long accounts," particularly in the industrial class. Transactions in stocks on the New York Exchange during January aggregated 15,940,261, an increase of 2,263,940 shares over December and of 10,864,544 shares as compared with January last year. Dealings in bonds amounted to $115,547,500 a decrease of $4.941,000 as compared with December transactions. Superintendent of Banks Eugene Lamb Richards has issued in pamphlet form a list of securities considered legal investments for savings banks of New York on the first day of January, 1916. In a prefatory statement the superintendent advises that the list is only for the guidance of savings banks and that conditions may vary in regard to individual securities which subject the list to change. It was with genuine regret that the staff of the Guaranty Trust Company received the announcement recently of the resignation of Mr Hy. R. Wohlers, who was for several years secretary to Mr. Hemphill and through whose efforts the movement was started which resulted in the organization of the Guaranty Club, composed of the employees of that institution. Mr. Wohlers has formed a connection with C. J. Wrightsman of New York. Guaranty Service XVIII Registration of $500,000,000 of Bonds The accurate registration of a bond issue as huge as the recent AngloFrench issue, involving as it does the handling with speed and precision of several hundred thousand separate bonds, requires organization, system, and experience: Our registration Department possesses these qualities to an unusual degree, and this no doubt is the reason why the Anglo-French Commission selected the Guaranty Trust Company as Registrar of the largest external government loan ever issued. We invite correspondence from those contemplating the issue of registered bonds. Guaranty Trust Company of New York Capital and Surplus - $ 40,000,000 Resources, more than 400,000,000 · Various solutions are offered for the continued low level of money rates despite the conclusive evidences of greater business and industrial activity and exceptional earnings. Call money has shown some slight response with rates averaging at 1 to 2 per cent. The supply of high grade commercial paper continues small with rates at 3 per cent. In view of the many unusual economic factors created by the European war it is futile to predict what the future course of the money market will be. The most reasonable conclusion is that no upward movement can be expected for some months to come in view of the continued accumulation of idle money. Since the first of the year to February 11th net deposits of the New York Clearing House banks show a further increase of $110,000,000, making the aggregate $3.556.969,000. Loans expanded during that period $68,000,000, making the total $3,315.823.000 while aggregate cash increased $41,000,000, with the total at $753,634,000. The excess of cash over legal requirements amounts to $168,822,000. During the period from January 1st, to February 11, 1916, trust companies show an increase of $58,333,000 in deposits, making the total $1,976,067,700, an increase of $62,024,000 in loans and investments, making the total, $1.606,638,800 and an increase of $17.777,000 in cash with the total $165,074,700. It is interesting to note that on December 31st the National banks of New York City held $6,269,000 less deposits from other banks, banks and trust companies than on November 10th, 1915, while individual deposits increased during that period $101.857.700. The following figures show the principal weekly changes reported by Clearing House instiutitons and by trust companies: Feb. 11.. Feb. 5. TRUST COMPANIES Deposits Loans & Inv. Jan. 29. Cash $1,976,067,700 $1,606,638,800 $165,074,700 1,976,217,400 1,586,111,700 171,881,400 1,958,563,300 1,575,618,700 168,059,500 Jan. 22. Jan. 15. Jan. 8.. 1,947,854,800 1,574,216,600 163,288,900 1,932,427,500 1,560,524,300 170,353,000 1,935,956,900 1,548,866,300 148,311,900 CLEARING HOUSE BANKS (Daily Average) Edward Holbrook, who was recently elected vice-president of the Merchants National Bank of New York is a director of the Rhode Island Hospital Trust Company of Providence, R. I. Albert H. Wiggin, president of the Chase National Bank; Seward Prosser, president of the Bankers' Trust Company; Gates W. McGarrah, president of the Mechanics & Metals National Bank, and William H. Porter, of J. P. Morgan & Company, with their families, left New York recently for an extended vacation on the Pacific Coast and Honolulu. Mr. Wiggin and Mr. Prosser will continue to Honolulu where the latter's brother resides. The First National Bank of New York was the successful bidder for $25,000,000 in 4 per cent. State bonds sold recently by Controller Travis in Albany at 103.27, the highest price paid in several years for the bonds of New York or any other State. The interest basis is 3.85 per cent. The Albany Trust Company of Albany, N. Y., reports total resources of $9,037,346, with deposits of $8,301,337, capital $400,000, surplus $200,000 and undivided profits of $121,163. Charles H. Bissikummer is president. |