Country House for Members of the "Preparedness for the Summer" is just now the motto of the members of the official and clerical staff of the Guaranty Trust Company of New York. Not a single member of the Guaranty Club which embraces both the officers and clerks of this big trust company will be obliged to forego the benefits of outdoor exercise and a comfortable refuge during the sultry months. There will be no nerve-racking thumbing of time-tables or exodus to all points of the compass for week-ends or vacations. Indeed the whole problem has been solved in a manner which will further cement the fraternal feeling which characterizes the host of workers at the Guaranty Trust Company. It is just likely that the plan will also be adopted by a number of other important banks and trust companies. In short the Guaranty Club has settled the "summer vacation question" in the following simple way: The Guaranty Club has leased the commodious, rambling country resort overlooking the broad Atlantic and located at Huguenot Park, Staten Island, known as Terra Marine Inn. In past years it has been customary for the members of the Guaranty Club to hold their annual outings at this place. This summer the hotel with its eighty rooms, each opening upon a broad veranda swept by ocean breezes, will be reserved exclusively for the members of the Guaranty Club and the hotel will be conducted entirely for their benefit. There is a grill room and a billiard and pool room, while the large, semi-circular dining room overlooking the Atlantic Ocean is supplemented by a spacious porch pavilion. The attractions of the Country House will include boating, swimming, fishing, driving, tennis, baseball, dancing, billiards, pool, etc., which will make it a very attractive place at which to spend holidays, week-ends, vacations or the entire summer. It will be under the direction of a special comImittee who will have charge of the details of operation under the supervision of the Executive Committee of the Club. Not the least interesting feature of the project is that the Country House will be maintained by the club on the basis of cost of operation, which will make it possible for practically every employee of the company to avail himself of its advantages. The formal opening of the Guaranty Club Country House was celebrated on June 10th in connection with the Sixth Annual Outing of the Guaranty Club. N. W. Halsey Company announce that the issue of $4,000,000 Kansas City Railways Company first mortgage 5 per cent. bonds recently offered by that firm, have all been sold. The Columbia Trust Company has declared a quarterly dividend of 5 per cent. and an extra dividend of 2 per cent., payable June 30th to stock of record June 22. Stockholders of the Central Trust Company of New York, at a special meeting held June 2d, approved the plan for increase of capital stock from $3,000,000 to $5,000,000 in accordance with provisions previously announced. According to a tabulation issued by the Comptroller of the Currency there are fiftyfour National banks in the United States with deposits over $25,000,000 each. Of this number fifteen are located in New York. COUNTRY HOUSE AT HUGUENOT PARK, STATEN ISLAND, LEASED FOR THE GUARANTY CLUB, COMPOSED OF EMPLOYEES OF THE GUARANTY TRUST COMPANY OF NEW YORK CITY Special Service for Trust Companies Considering the great volume of new laws placed upon the statute books by the Federal Government and by the States, which directly or indirectly concern the business of banks and trust companies, it is almost impossible for executives to keep in constant touch with new interpretations, rulings and requirements. Trust companies are particularly interested in the interpretations of the Income Tax Law, and in common with banks wish to keep posted on rulings under the new Federal Reserve Act. The Corporation Trust Company of New York has developed a special service which is intended to meet these requirements and afford the busy banker and trust company officer a ready, digested schedule of statutory requirements as well as changes in regulations. facilities of this company embrace prompt and accurate reports on all subjects of legislation, National or State, prompt report of rulings and new regulations relating to the Income Tax, the War Tax, Federal Reserve Act, the Federal Trade Commission and digests of decisions handed down by State as well as Federal courts. The service is also graded according to the requirements of a bank or trust company and covers special subjects of legislation or law in which such clients may be interested. The New York Brevities J. Lucas Williams, who has for some years been an assistant cashier of the Irving National Bank, New York, has resigned to become a vice-president of the Bank of Italy, San Francisco, Cal. Mr. Williams, prior to his connection with the Irving National Bank, was cashier of the South Side Bank of WilkesBarre, Pa. A judgment for $4.354.330.83 was entered recently in the County Clerk's office against the Western Pacific Railroad Company in favor of the New York Trust Company, as trustee, under an adjustment mortgage of the Denver & Rio Grande Railroad Company. Mr. James I. Bush of the Second Ward Savings Bank of Milwaukee has been appointed Chicago representative of the Guaranty Trust Company of New York. Mr. Bush will assume his new duties on July first. The Union Trust Company has declared the regular quarterly dividend of 4 per cent., and the usual annual extra dividend of 1 per cent., payable July 1st to holders of record June 24 Deposits of the Union Trust Company aggregated on March 17th, $80,480,000, an increase of over $12,000,000 during the preceding twelve months. The capital is $3,000,000, surplus, $4,500,000 and undivided profits, $665,335. Philadelphia Special Correspondence Making the Federal Reserve System Attractive to State Institutions Members of the Federal Reserve Board have, on various occasions, professed their inability to account for the shyness of State banks and trust companies in failing to avail themselves of the privilege of becoming members of the Federal Reserve system. Some illumination was cast upon this dark subject at the last annual meeting of the Pennsylvania Bankers' Association held in this city. The explanation does not appear so very difficult when the subject is discussed from the standpoint of practical requirements instead of theory. Philadelphia and Pennsylvania are considered strongholds of trust company development and doubtless many of the reasons which actuate the trust companies of this State in refraining from membership in the Federal system may be applicable to trust companies generally. Here in Philadelphia the trust companies occupy perhaps a more distinctive position than in most other cities because of their great success in the performance of fiduciary duties. Among those who participated in the discussion at the recent convention on changes essential in the Federal Reserve which might tempt State institutions to become members were Vice-President A. A. Jackson of the Girard Trust Company of this city, John G. Reading, president of the Susquehanna Safe Deposit & Trust Company of Williamsport, B. M. Marlin, Montgomery Evans and Richard L. Austin, chairman of the Federal Reserve Bank of Philadelphia. The reasons for non-membership advanced by the representatives of trust companies might be placed in three divisions: (1) The problem which would arise from serving two masters, namely the Federal Reserve Board or the Comptroller of Currency and the State Banking Department, calling for costly examinations, conflicting authority as between Federal and State officers; (2) Objection to the present character of administration of the Federal Reserve system subjecting member banks to numerous unnecessary requirements and rulings promulgated by the Comptroller of Currency and the possibility that valuable franchise rights now exercised under special charters might be abrogated by restrictive rulings which would be imposed by the Federal Reserve Board acting under a wide latitude of discretionary power; (3) Constitutional obstacles in the laws of this State which at present render it practically impossible for trust companies to join without further amendments. Other objections were voiced including the in compatibility between the exercise of true trust company powers and Federal control; the fact that trust companies have little or no commercial paper in their portfolios which they could offer for rediscount at the Federal Reserve bank if they required such accommodation and the inevitable extinction of the line of demarcation which now exists between National banks and trust companies at the present time. It was suggested by one of the speakers that acceptance of examinations made by the State authorities by the Comptroller of the Currency, the protection of present charter rights and the right to rediscount to be extended to include notes with good and sufficient collateral security, might result in bringing more trust companies into the Federal Reserve system. The principal impression conveyed to those who listened to this discussion at the recent convention was, however, that objection is mainly based on an indisposition to serve two masters and lack of confidence in the administration of the office of the Comptroller of the Currency. Thirty-one trust companies have accepted the plan of the Philadelphia Clearing House Association for the local clearing of checks what has been in successful operation for five months. THE FARMERS' AND MECHANICS' NATIONAL BANK of PHILADELPHIA Solicits the accounts of Trust Companies, Banks and Bankers, and RESOURCES $23,000,000.00 ORGANIZED 1807 J. William Hardt, Cashier Franklin In electing Mr. J. William Hardt to the position of cashier of the Franklin National Bank of Philadelphia the board of directors of that bank observed the traditional and commendable policy of recognizing merit as well as faithful service. The promotion is a popular one not only among Mr. Hardt's associates J. WILLIAM HARDT RECENTLY ELECTED CASHIER FRANKLIN NATIONAL BANK OF PHILADELPHIA but the patrons of the bank. He has been associated with the Franklin National Bank since 1908 when he was made manager of the general ledger department and since that time has earned steady advancement. In 1910 he assumed the duties of assistant cashier which office he held until his recent election as cashier. Mr. Hardt was born at Frederick, Md., in 1884, and, like many another successful bank officer, obtained his first training as a member of the corps of National bank examiners. Although a native of Maryland, Mr. Hardt is really a product of Philadelphia, for he was educated at its Central High School, passing from there to the University of Pennsylvania, from which he was graduated in the class of 1906. For one year thereafter, he served as assistant to the National bank examiner for the Philadelphia district. He then became connected with the Western National Bank, and later joined the staff of the Franklin National Bank. Officers of Philadelphia Chapter A. I. B. The following officers of Philadelphia Chapter of the American Institute of Banking were elected at the recent annual meeting: President, Norman T. Hayes, Philadelphia National Bank; vice-president, Anthony G. Felix, Peoples Bank; secretary, Wm. A. McCamy, Fourth Street National Bank; treasurer, Howard E Deily, Tradesmens National Bank; assistant secretary, Paul D. Cressman, Franklin National Bank. The following were elected to the board of governors to serve for three years: Paul D. Cressman, Franklin National Bank; Anthony G. Felix, Peoples Bank; Norman T. Hayes, Philadelphia National Bank; Wm. A. Nickert, Eighth National Bank; Thos. W. Smith, First National Bank. T. H. Atherton, assistant secretary of the Fidelity Trust Company, will have charge of the new uptown branch office to be opened by that company. MARYLAND TRUST COMPANY BALTIMORE Invites you to call or write regarding reciprocal business FAVORABLE TERMS WILL BE MADE FOR ACTIVE AND RESERVE ACCOUNTS Considerate Treatment Your Collections Desired Excellent Service Responsibility of Directors for Unsound In an opinion submitted by Deputy Attorney General Horace W. Davis to Commissioner of Banking William H. Smith, relating particularly to building and loan associations, the following rule of conduct is laid down: "Where directors of a corporation under the supervision of your department decline to acknowledge communications from you or appcar before your department or the Attorney-General's department in reference to matters which appear to you to require correction, this department will consider such action as warranting the institution of proper proceedings for the removal of such officers or the appointment of a receiver, or both." According to the ruling of the Deputy Attorney-General the Commissioner of Banking has the legal right to summon either before his own department or the AttorneyGeneral's department, the directors of any corporation subject to the supervision of the banking commissioner's department whenever it appears to be conducting business on an unsound and unsafe basis. Section 7 of the Act of February 11, 1895, creating the banking department, authorizes such action in relation to corporations not having capital stock and doing business exclusively for the benefit of depositors. Section 9 of the same Act pertains to corporations with and without capital stock which provides that the Commissioner of Banking may communicate with the AttorneyGeneral in order to summon accountable directors unless the immediate appointment of a receiver is deemed necessary. The opinion recites that every reasonable means should be taken to correct abuses by other than court proceedings. On July 17th the Logan Trust Company will Occupy temporary quarters southwest corner of 15th and Chestnut streets during the erection of its new building, 1431-1433 Chestnut street. Quo Warranto Proceedings to Revoke Attorney-General Francis S. Brown of the Commonwealth of Pennsylvania has brought quo warranto proceedings against a number of banks and trust companies which have failed to exercise their charter rights for a period of two years. The proceedings apply to institutions which have failed to pay in the amount of capital required by law or have not in any manner exercised the powers conferred by letters patent and have not made use of corporate privileges for two years after having been liquidated. A number of the banks and trust companies named in the proceedings belong to the type organized by professional promoters who abandoned the enterprises after obtaining the initial fees for promotion or deducting their commissions from the first instalment of subscription payments. The opportunity is accorded representatives of the institutions named in the action to appear before the Court of Common Pleas to show by what authority charter rights or privileges are claimed and to show reason why such franchises shall not be declared null and void. Philadelphia Trust Co.'s Employes The Philadelphia Trust Company's Employees Association has been exceptionally successful in attaining the object for which it was organized, namely to promote cordial relations between the officers and members of the association. Officers of the association are: Albert J. Southall, president; Edgar L. Smith, vicepresident; M. A. Foderer, secretary and treasurer. The committee receives suggestions from the members pertaining to greater efficiency of the service and these in turn are submitted to officers of the company for their consideration. |