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Solicits the accounts of Trust Companies, Banks and Bankers, and
offers to them unexcelled facilities for handling general business.

RESOURCES $23,000,000.00

How Trust Companies Employ Surplus

A comparison of the statements rendered by trust companies of this city under dates of November 11, 1915 and January 12, 1916 shows an increase in loans upon collateral from $136,279,814 to $146,201,104; an increase in bond and stock holdings of from $266,522,162 to $271,477,720; an increase in cash reserve and due from banks of from $103,789,709 to $111,943,758. Aggregate resources increased during the period from November 11, 1915 to January 12, 1916 from $701,046,741 to $728,540,311. Indicative of the policy of investing surplus funds in securities is the increase in stock and bond holdings from $247,863,000 reported November 2, 1914 to $271,477,000 on the latest date of rendering official returns. During the past year the trust companies in common with National banks have pursued the policy of substituting as far as possible, short term securities for long maturities on the ground of rendering resources more liquid.

The combined trust fund holdings of Philadelphia trust companies will soon reach the billion mark at the present rate of increase. The returns made in response to the call of the State Banking Commission on January 12, 1916 showed total trust funds of $950,409,61г. Among the more important individual holdings of trust funds may be mentioned the following: the Pennsylvania Company for Insurances on Lives and Granting Annuities, $210,287,634; Fidelity Trust Company, $203.912,051; Girard Trust Company, $183.371,895; Philadelphia Trust Company, $109.865.922; Provident Life & Trust Company, $56,885.846; Land Title & Trust Company. $40,154.880; Real Estate Trust Company, $28,131,006; Guarantee Trust & Safe Deposit Company, $19.897.275; Real Estate Title Insurance & Trust Company, $14,213,069; Commercial Trust Company, $11.539.722 and Germantown Trust Company, $10,834,000.

The Farmers and Mechanics' National Bank has been approved as a reserve agent for the First National Bank of Lisle, N. Y.


E. P. Passmore Vice-President Franklin
National Bank

E P. Passmore, who has been vice-president and cashier of the Franklin National Bank, was relieved of the duties of cashier at the last meeting of the board in order to devote his entire time. to the executive duties of active vice-president, which position he retains. J. William Hardt, for several years assistant cashier, was appointed cashier. Mr. Passmore has been associated with the Franklin NationalBank since 1902, when he became its assistant cashier. He was made cashier in 1904, succeeding J. R. McAllister, who became president.

Mr. Passmore is one of the most widely known and popular bankers in Philadelphia. He has always taken an active interest in the affairs of the Pennsylvania- Bankers' Association, of which organization he is now president. Mr. Passmore is a graduate of Swarthmore College of the class of 1893 and a member of the Union League, the Art Club, the Huntingdon Valley Club, the Swarthmore Club and of the Phi Kappa Psi Fraternity.

Mr. Hardt, the new cashier, finished his education with a course at the Wharton School of Finance, after which he worked with his father, who was a National bank examiner, and later was a clerk in the Western National Bank. 1968 he went to the Franklin National Bank as manager of the general ledger department and two years later was made assistant cashier.


J. A. Harris, Jr., also continues as vice-president, and J. C. Frankland and E. E. Shields, as assistant cashiers.

Thomas De Witt Cuyler, president of the Commercial Trust Company, presided as toastmaster at the recent annual banquet of Group I of the Pennsylvania Bankers' Association at the Bellevue-Stratford which was attended by over 600 guests, including many leaders of finance and business of this city and State. A large delegation of bankers from New York City also attended the banquet.

The Johnstown Trust Company

Capital $200,000


Receives Deposits Subject to Check

Surplus $225,000

Issues Interest Bearing Time Certificates of Deposit. Acts as Executor,
Administrator, Guardian, and in All Fiduciary Capacities

WM. R. THOMAS, President
HON. A. V. BARKER, 1st Vice-President

WM. C. KRIEGER, Secretary and Treasurer JOHN D. ROBERTS, Vice-Pres't and Trust Officer

National Bank Mergers

Considerable interest attaches to the recent announcements of National bank mergers because of the fact that such consolidations have been rare within recent years in this city. Following closely upon the heels of the absorption of the Manufacturers National Bank, organized as a State, institution in 1827, by the Union National Bank, comes the announcement of the consolidation of the National Bank of Northern Liberties with the Bank of North America, under the name of the latter. The reason given for this merger is that Joseph Moore. Jr., president of the National Bank of Northern Liberties desires to retire, although he will continue as a director of the Bank of North America. E. S. Kromer, cashier of the National Bank of Northern Liberties, will be cashier of the Bank of North America, while S D. Jordan, the present cashier of the latter institution, will become a vice-president. C. A. Mcllhenny, assistant cashier of the National Bank of Northern Liberties, will hold the same position with the Bank of North America.

Guarantee Trust and Safe Deposit Company

At the annual meeting of the Guarantee Trust & Safe Deposit Company, the following were elected to serve as directors for one year: Richard Y. Cook, Harry J. Delany, Herbert M. Howe. M. D., Charles E. Pancoast. James F. Sullivan, Gustavus W. Cook, Marcellus E. McDowell. Lewis H. Parsons, Daniel A. Stewart, Jesse S. Shepard, Charles D. Joyce, being all of the members of the old board.

Net earnings for 12 months ending January 31, 1916, amounted to $130,281, out of which dividends, amounting to $100,000, were paid and $30,000 was marked off investments of the company bringing same to their current market value.

New Directors for Philadelphia National Bank

Four new directors have been elected to the board of the Philadelphia National Bank in addition to William S. Godfrey who succeeds Lincoln Godfrey, as follows: Alva C. Dinkey, president Midvale Steel & Ordnance Company; Eldridge R. Johnson, president Victor Talking Machine Co.; J. H. Pew, president the Sun Company, and J. K. Mitchell, president Philadelphia Rubber Works Company.

A recent report rendered by the Philadelphia National Bank shows deposits of $95,919,667, and resources $110,857,750. The enlarged and diversified scope of the institution's operations is evidenced by the report showing letters of credit of $6.102,629, and acceptances $1,680,879. The president is Levi L. Rue; vice-president, Wm. S. Maddox; vice-president and cashier, Horace Fortescue; assistant cashiers: David Stewart, F. P. Stevens and O. Howard Wolfe.

J. R. McAllister, president of the Franklin National Bank, has been elected chairman of the Philadelphia Clearing House Committee, to succeed Levi L. Rue, who was recently elected president of the association. Edward F. Shanhacker. president of the Fourth Street National Bank, was re-elected secretary of the committee.

The annual dividend rate of the Northern Trust Company has been increased from 16 to 20 per cent.

While attending a banquet in Wayne recently, General Theodore E. Wiedersheim, vice-president of the Girard National Bank and a veteran of the Civil War, suddenly succumbed to a fatal stroke of apoplexy. He was cashier of the Independence National Bank at the time it was absorbed by the Girard National Bank and was made vice-president of the latter institution.


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Special Correspondence

Separate Actions to Restrain National Banks


in the Supreme Trust Company

From Exercising Trust Powers Action has been commenced in the Supreme Court of Massachusetts on the relation of the Tax Commissioner regarding the exercise of trust powers by National banks which is based on the administration of the inheritance tax laws of this commonwealth. This information supplements the suit brought in the Supreme Court of this State by the State Department of Justice at the instance of William D. T. Trefry, Commissioner of Corporations, against the National Shawmut Bank of Boston to restrain this bank from exercising its franchise, received from the Federal Reserve Board, to act as trustee, executor, administrator and registrar of stocks and bonds. The latter suit has been instituted under the auspices of the Association of Massachusetts Trust Companies, which has retained the legal services of Hon. Albert E. Pillsbury.

The basis upon which the Attorney-General is proceeding with respect to the office of the Tax Commissioner relates solely to the administration of the State inheritance tax laws. In cases where a National bank has been appointed by an individual as a trustee, the estate to be managed and distributed under such terms and conditions as the declaration of trust prescribes, there is a good deal of doubt as to whether the Tax Commissioner will have any authority over a National bank under such circumstances. The Attorney-General has, therefore, brought a bill in equity to determine, if possible, the rights which the National banks have when acting under such declarations of trusts and the power of the Commonwealth with respect to such business in case trusts of this kind are created.

The Massachusetts law, chapter 116, section 3, provides that "no persons or association, and no bank or corporation, except trust companies, incorporated as such in this Commonwealth, shall use, in the name or title under which his or its business is conducted, the word 'trust company' even though such words may be separated in such name or title by one or more other words." The same section provides that such restriction also applies to the putting forth of signs or in any way soliciting or receiving deposits. The laws also call for a graduated capital stock provision for trust companies, and that no trust company may exercise trust powers until it has received authority in writing from the board of commissioners of savings banks and such board may grant or

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Unusual significance attaches to the growing movement among National banks in Massachusetts to give up their Federal charters and reorganize under the State laws as trust companies. The prime reason is that trust company charters are more liberal and permit establishment of branches as well as investment of funds in real estate mortgages. It is possible, however, that the unduly restrictive measures enforced by the Comptroller of Currency and the hardships upon country member banks under the Federal Reserve system are also influential factors. Following the recent announcement that the Melrose National Bank of Melrose has decided to reorganize under a trust company charter, comes the information that the First National Bank of Gardner, Mass., established in 1865, has taken steps for conversion into a trust company. An application for a trust company charter has been filed with the Bank Commissioner. The bank will operate under the title of Citizens Trust Company.



CAPITAL, $1,000,000










Proposed Bank and Trust Company
Legislative Bills

Officials of trust companies were recently granted a hearing on a number of amendments proposed for enactment at the present session of the legislature. A bill providing that reserves of trust companies may be deposited with New York trust companies which are members of the New York Clearing House Association and counted as legal reserve, was advocated by W. H. Rand, representing the Association of Massachusetts Trust Companies. Bank Commissioner Thorndike favored this bill with the suggestion, however, that it be amended so as to provide that the Bank Commissioner must approve the banks and trust companies which are made reserve depositaries.

Another proposed bill is to amend the law so as to permit trust companies to increase their capital stock without seeking special legislation to that effect as now required. The advisability of such legislation was demonstrated by the applications of Allan Forbes, president of the State Street Trust Company for permission to increase the capital of that company from $1,000,000 to $2,000,000 and by James G. Ferguson, president of the Fidelity Trust Company to inorease the capital of the latter company.

Some diversity of opinion has been expressed as to the bill recommended by the Banking Commissioner to provide that deposits in savings banks shall go on interest the first day of the month subsequent to the deposit, instead of every three months. A bill has also been presented which is intended to prohibit trust companies from paying interest on deposits of less than three months.

Under the leadership of Mr. Wilbur F. Beale, treasurer of the Dorchester Trust Company of Boston, who is also chairman of the Massachusetts legislative committee of the National Association of Credit Men, a strong effort is being made to secure the passage of bills which will punish those who give worthless checks, and for making use of false statements to obtain property or credit.

F. Winchester Denio of the Old Colony Trust Company has presented a petition that a trust company that is a member of the Federal Reserve system shall be empowered to accept for payment, at a future date drafts drawn upon it by its customers and to issue letters of credit authorizing the Holders to draw drafts upon it or its correspondents at sight or on time not exceeding a year. The proposition is regarded favorably with an amendment so as to apply to all trust companies whether members of the Federal Reserve system or not.

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