Detroit

Special Correspondence

H. M. Campbell Elected Chairman of Union Trust Company Board

Owing to considerations of health Mr. Henry B. Ledyard has retired from the position of chairman of the board of directors and of the executive committee of the Union Trust Company. H. M. Campbell, who has been counsel for the Union Trust Company since it commenced business, and who is especially well versed and experienced in the affairs of the company, by unanimous vote of the directors was elected chairman of the board and of the executive committee in succession to Mr. Ledyard.

In his letter of resignation Mr. Ledyard tendered a tribute to the high position which the Union Trust Company occupies among the financial institutions of Detroit and also expressed appreciation for the earnest, loyal and successful work of the president, Mr. Blair, and of the directors. Mr. Ledyard's resignation was accepted with sincere regret, Henry Russel, J. C. Hutchins, F. T. Moran and Truman H. Newberry voiced the high regard and ad

HENRY M. CAMPBELL

TRUST COMPANY, DETROIT, MICH.

1907 and the early part of 1908. Those same qualities which characterized his successful management of the large interests of the Michigan Central Railroad have been reflected in his administration of the business of the trust company.

Security Trust Company of Detroit

An excellent statement of financial condition was rendered by the Security Trust Company of Detroit under date of May 1st which shows combined resources of $5,088,151. embracing collateral loans, $875.353; loans on real estate. $1,279.132; bonds, $1,039.595: cash and due from reserve agents. $1.623.995; mortgages with State Treasurer, $204.600 and advances to trusts. $65.474 Trust deposits amount to $3.666.216 with capital stock. $500,000, surplus $500,000 and undivided profits. $378.170. The official staff of the Security Trust Company consists of the following: Charles C. Jenks, president; Emory W. Clark, vice-president; Lem. W. Bowen, vice-president; Albert E. Green, vicepresident; Claude A. Guerin, assistant secretary; Lewis K. Walker, assistant secretary; John C. Shaw, assistant treasurer; Stevenson, Carpenter, Butzel & Backus, counsel.

Los Angeles

Special Correspondence

Steadily Rising Tide of Business

Los Angeles has little time for "war talk" these days and is devoted to manufacturing prosperity of the permanent, "home-made” brand. International affairs and the situation along the Rio Grande may blow hot and cold by turns but the course of business goes on with calm assurance. It is natural optimism, industry and thrift which carries the day. It is indeed surprising that in view of the great proportion of savings accounts to population new accounts in large numbers are opened from day to day in the banks and trust companies. Thousands of depositors and patrons file in and out of the corridors of the big banks and trust companies and so far as Los Angeles is concerned there is nothing to indicate that half the world is engaged in grim warfare.

Bank carnings during April reached the enormous total of $107,159,573 as compared with $87.983,243 for the same month last year. The April clearings were the largest for any month, except for March, since the early part of 1914. Total clearings for the first four months of this year exceeded $400,000,000 as compared with $338,000,000 for the corresponding period of last year. Healthful activity is also reflected in a compilation of cash movements and bank balances prepared by the manager of the Los Angeles Clearing House Association recently. This shows that balances with banks outside of California reached the high point of $33,600,000 on December 11, 1915 from which point there were various fluctuations so that on March 4th last these balances amounted to $27,500,000. There has been a marked gain in cash while trade indices exhibit a constantly increasing volume of business The May 1st official statements of the local National banks showed aggregate deposits of $80,989,650, an increase of $3,500,000 since the date of the previous statements on March 7, 1916.

Los Angeles Trust to Open a New
Branch Office

The Los Angeles Trust and Savings Bank has leased for a term of years the southeast corner of Seventh street and Central avenue in the new wholesale terminal for banking purposes, and will, according to an announcement made by Motley H. Flint, vice-president of the bank, open at this point one of the most commodious and complete banking

branches in the city. The new branch will occupy the Seventh street corner of the westerly 1,250-foot, two-story public market building, and will face on Central avenue. The bank will have an entrance also from the 1,200 by 180 feet court of the market and will be of easy access to all of the business of the terminal.

The Los Angeles Trust and Savings Bank interests expect, as soon as the buildings are ready for occupancy, to install a complete banking force for the handling of commercial, savings and trust business. It also is intended, according to Vice-President Flint that this branch pay exchanges to the business firms within this terminal and also take care of the accounts of the produce men, not only of the market itself, but of the growers who bring their goods to the public market.

Architect John Parkinson is preparing detail plans for this bank. It is announced that the building will be along the same simple concrete lines as the remainder of the wholesale terminal, while the interior decorations will follow closely those in the Los Angeles Trust and Savings Bank at Sixth and Spring streets.

Value of Institute Training

The election of W. N. Bucklin, Jr., as assistant trust officer and assistant secretary of the Los Angeles Trust & Savings Bank, Los Angeles, Cal., again demonstrates the value of institute training. Mr. Bucklin is the present secretary of Los Angeles Chapter, A. I. B., and has been a faithful student and hard worker for the success of the Institute for several years.

The Los Angeles Chapter of the American Institute of Banking has launched a campaign to urge thriftiness, and to that end has been making arrangements for a series of meetings to be held in the schools and other educational institutions.

Alfred I. du Pont Acquires Control of
Delaware Trust Company

Alfred I. du Pont, the well-known powder manufacturer of Wilmington, Del., has acquired a controlling interest in the Delaware Trust Company of that city. It is understood that the transaction involved the sum of close to $1,000,000 and that the capitalization of the Delaware Trust Company will be considerably increased. Mr. du Pont and associates have also obtained a valuable site in the heart of the business district of Wilmington upon which a combination bank and office building will be erected as the home of the trust company.

Kansas City, Mo.

Special Correspondence

Preparing for the Next A. B. A. Convention Plans are being matured for the comfort and entertainment of the delegates and guests who will attend the forty-second annual convention of the American Bankers' Association in this city September 25th to 30th. R. C. Menefee, vice-president of the Commerce Trust Company, who is chairman of the Hotel Committee has issued a chart showing the location of downtown hotels which are being reserved for the convention. The chart also shows that the hotel headquarters and convention hall are within easy distance. All the banks and trust companies in the downtown district will keep "open house" and the representative local clubs as well as the country clubs will extend courtesies to the visitors.

The Kansas City Clearing House Committee is the Executive Committee for the convention and consists of the following members, as newly elected at the recent annual meeting of the Association: J. W. Perry, president Southwest National Bank of Commerce, president; W. T. Kemper, president Commerce Trust Company, vice-president; P. W. Goebel, president Commercial National Bank, Kansas City, Kan.; George S. Hovey, president Inter-State National Bank; H. T. Abernathy, vice-president First National Bank.

The following Publicity Committee has been appointed: J. F. Downing, president New England National Bank, chairman; E. F. Swinney, president First National Bank; J. W. Perry, president Southwest National Bank of Com

merce.

Marked Progress of the Commerce Trust Company

The Commerce Trust Company of Kansas City is experiencing exceptional growth. During the past year deposits increased nearly five million dollars from $13,582,479 reported on May 1, 1915 to $18,236,038 on May 1, 1916. During the same period surplus and undivded profits increased from $827,786 to $979,404, indicating splendid earning power. The aggregate resources of the company are $23,260,591, embracing loans and discounts of $7,645,689; bonds and stocks, $2,376,093; demand loans, $2,265,182; cash and sight exchange, $10,973,625. The capital is $1,000,000, surplus and undivided profits, $979,404.

William S. Kies, vice-president of the National City Bank of New York, has been elected a vice-president of the American International Corporation.

New Orleans

Special Correspondence

Louisiana Bankers' Convention

Topics of particular interest to Southern banking and financial circles were discussed at the recent annual convention of the Louisiana State Bankers' Association held at Alexandria. The convention was called to order and presided over by L. M. Pool, vice-presiIdent of the Hibernia Bank & Trust Company of New Orleans, as president of the Association. In delivering his annual address Mr. Pool directed attention to a number of amendments to the general banking law to be brought to the attention of the Legislature.

Among those who addressed the convention were the following: Levering Moore of New Orleans, on "The Banker and Rural Credits"; Fred W. Ellsworth, manager of publicity department of the Guaranty Trust Company of New York on "Why Banks Should Advertise," and John Dane of the New Orleans Chapter of the American Institute of Banking who devoted attention to the thrift campaign. The newly elected officers of the association are: James W. Bolton, Alexandria, president; L. O. Broussard, Abbeville, vice-president; Eugene Cazedessus, Baton Rouge, secretary; A. T. Kahn, Shreveport, treasurer.

Suggested Banking Law Amendments

State Bank Examiner Simms of Louisiana proposed a number of amendments to the State banking law in his law annual report which will be submitted to the Legislature. One amendment proposes to limit the amount which any bank may loan to any one borrower to 20 per cent. of its capital, surplus and unimpaired undivided profits. The only exception to this requirement would be in case of loans made against warehouse receipts for agricultural products or mercantile goods covering the full amount of such loans or bills of exchange, drawn in good faith, against actually existing values. The superintendent also calls for a clearer definition of the functions of banks of discount and savings banks, providing also that in smaller communities banks of discount, having a capital of $25,000 or more be permitted to conduct savings departments. Loans to an officer of a bank without security other than the endorsement of a debtor of a bank should be prohibited, according to the superintendent who makes further recommendations regarding listing of securities given for loans, duties of directors and revision of the present form of rendering financial statements of condition.

Cleveland

Special Correspondence

Value of Bank and Trust Company Auditing Departments

In conducting a campaign to secure uniform reports from corporations, firms and individuals seeking credit accommodation from banks and encouraging banks to install a system of auditing and accounting to aid customers in rendering suitable reports of financial condition the Cleveland Clearing House has encountered sharp criticism from certified public accountants. In the current issue of The Journal of Accountancy, published by the American Association of Public Accountants, the Cleveland Clearing House Association is taken to task for fathering a plan of auditing and accountancy which requires, in effect, that the borrower adjust his methods of rendering statements and analyzing profit and loss accounts to the conditions laid down by the banks' own auditor. The editorial in question also arraigns the system of maintaining independent auditing departments, as employed by trust companies. The Journal of Accountancy says in this connection:

"In another city it has been for many years a custom among some of the trust companies to maintain audit departments, and the method of procedure is somewhat as follows:

"John Doe calls at the bank and expresses the wish to establish a credit. He is informed that his affairs must be investigated and a certified statement of condition presented. John Doe asserts that he is solvent and that his credit is good but in order to carry conviction he offers to present a report of his own bookkeeper. In some cases he goes further and offers to present the reports of a certified public accountant. It is rumored, whether truly or not, that even these are not always accepted by trust companies. It is quite a simple matter for a trust company officer to say that he would prefer to have a statement certified by the audit department of the trust company and if the seeker for credit is unable to obtain what he wishes elsewhere he is thereupon forced to contribute to the upkeep of the trust company's audit department."

It is quite evident to those who are conversant with the system of conducting auditing departments as practiced by trust companies of this and other cities that the criticism made by the official organ of the accountancy profession is unfounded. These auditing departments are mainly employed to audit the affairs and accounts of the various departments of the trust company and no evidence is at hand that any company has rejected the reports of a certified

public accountant if such reports were satisfactory and in accordance with the requirements of sound banking. The experience of local banks which have installed departments of accounts and audit for the use of their clients has worked out successfully and given no ground for complaint on the part of clients who, indeed, prefer to have the aid of expert judgment of this kind in the preparation of their financial state

ments.

Real Estate Loans as Evidence of HomeMaking

The Cleveland Trust Company has issued an interesting leaflet describing the large number of real estate loans made by that institution and presenting a list of similar loans made by other banks and trust companies in this city. The Cleveland Trust Company points to these loans as signifying confidence in banks and trust companies on the part of the homemakers. In 1915 the Cleveland Trust Company made not less than 1,702 real estate or mortgage loans, average 33 a week or 5 a day. The fact is also emphasized that a first mortgage on real estate is the very highest form of security for the safe employment of funds on deposit.

Cleveland Brevities

Directors of the Central National Bank, of which Col. J. J. Sullivan is president, have increased the annual dividend rate from 8 to 10 per cent. For the six months ending April 30th, deposits increased $3,000,000 and after charging off $25,000 in the fixture account, the sum of $48,000 has been added to undivided profits, making that fund $420,000.

Formal organization of the Bankers' Club of Cleveland has been completed with the election of officers and an executive committee. J. J. Sullivan has been elected president.

The directors of the Citizens Savings and Trust Company have transferred $500,000 from undivided profits to surplus account, making the surplus $3,000,000. The capital stock of the institution is $4,000,000.

Plans are being formulated for the organization of the Transatlantic Trust Company in this city with capital of $200,000 to do foreign exchange and general banking business. Interests associated with the Transatlantic Trust Company of New York are identified with the enterprise.

The Guardian Savings & Trust Company reported on May 1st total resources of $35,473,476 with deposits of $31,206,641, capital stock $2,000,000, surplus fund $2,000,000 and undivided profits of $240,167.