How and When Wills Should be Prepared An unusually interesting and suggestive booklet, entitled "Concerning Wills" has been issued by the trust department of the Mercantile Trust Company of St. Louis. The writer of this booklet is Mr. Virgil M. Harris, trust officer of the Mercantile Trust Company and author of the volume "Quaint and Curious Wills." Mr. Harris states that all the property in a community passes through probate on an average of about once in twenty-five years and although the greater part of it passes by will, it is a strange phase of testamentary matters in the United States that out of every hundred persons dying, 65 per cent. leave no estates at all, and less than 10 per cent. leave estates exceeding in value five thousand dollars. After describing the great importance which attaches to the proper preparation of a will, and tracing the history of testamentary disposition of property from the legendary wills of Adam, Noah and Job to the present time, Mr. Harris offers some excellent advice as to essentials which every man should keep in view in considering the preservation or the distribution of his estate. Mr. Harris says in part: "A will should be made when the testator is sound and vigorous, mentally and physically. A sick man or a very aged man, as a rule, is not in a condition to judge fairly of the affairs of human life. He may be unconsciously influenced or misled or even coerced. He may be diverted from the natural channels of affection, right and justice. Frequently, the result is disastrous litigation, the breaking of domestic ties. and the exposure of family skeletons. Wills are chiefly broken from without, and not from within; that is to say, wills are set aside not so much from faulty construction as from niental incapacity, family differences and prefcrences, resulting in partiality in distribution. Not one will in five hundred filed is contested. Poorly constructed wills may stand, yet cause inconvenience, doubts, unsafe titles and costly litigation. THE GUARDIAN TRUST AND MEMBER FEDERAL RESERVE BANK OFFICERS ... EDWARD H. CADY, President R.B.CRANE.Vice President WALTER L.Ross.Vice President EDWARD G. KIRBY, Secretary HARRY P. CAVES. Treasurer J. BRENTON TAYLOR Asst Secy and Treas Correspondence Invited on all Trust Matters "Death-bed wills are not to be recommended; such instruments are generally unsatisfactory and rarely reflect the exact intentions of the testators; or, as Lord Coke said several hundred years ago, 'Few men, pinched with the messengers of death, have a disposing memory.' 'Such a will,' he adds, 'is sometimes in haste and commonly by slender advice and is subject to so many questions in this eagleeyed world. And it is some blemish or touch to a man well esteemed for his wisdom and discretion all his life, to leave a troubled estate behind him, among his wife, children or kindred, after his death.' "A majority of testators find difficulty in a satisfactory disposition of their estates. In the State of New York, the subject of Wills leads in the volume of litigation, and that of execu tors and administrators comes next. The conclusion has been reached by the ablest lawyers of the New York bar, that to insure a safe and sound will, it should be tested before death by submission to several competent persons. There should be specialists in law as in medicine, and this particularly applies to the writing of wills. A man with an injured eye does not, as a rule, seek his family physician for relief One may work out his religion from within. and for himself, but when it comes to his last will and, testament, sound advice cannot be overestimated." LATEST STATEMENTS OF ST. LOUIS TRUST COMPANIES ‡All quotations as of June 5, 1916. Statements as of May 1, 1916, except marked.* Corrected by A. G. Edwards & Sons, 410-412 Olive St., St. Louis, and 38 Wall St., New York. Pittsburgh Special Correspondence Uniform Rate of Interest on Deposits As a result of the frank discussion of the difficulties confronting banks and trust companies in the payment of interest on deposits at the recent annual meeting of the Pennsylvania Bankers' Association definite steps are being taken to bring about more uniform and wise practice in the different localities. The association recognized the fact that the subject of readjustment of rates must be taken up separately in each locality by adopting the Reading resolution, which provided: "Resolved, That this association go on record favoring a material reduction in the rate of interest on deposits and recommend that the matter be referred to the groups for such action as may commend itself to the several groups." The remarkable feature of the discussion on the adjustment of interest rates was the unanimity expressed by the speakers and by all the delegates who took part in the debate, that existing methods must be revised. The need of lower rates for time and checking accounts was made clear by the prevailing condition of the money market and the low return on loans as well as acceptable grades of commercial paper. The discussion brought out that progress has already been made in a number of localities to eliminate unwise competition. Members of Group 8 in the western part of the State appointed a committee some time ago to establish as a fair return a 3 per cent. rate on savings and time deposits and 21⁄2 per cent. on checking accounts. This committee was empowered to take up the matter of mutual action with Clearing House associations. In Beaver county the banks and trust companies have established a fairly uniform rate of 3 per cent. on savings accounts. It was also the sense of the association to approve the formation of organizations similar to the Central Pennsylvania Bankers' Association which is primarily created to discourage unwise and costly competition. A similar association has been organized in Butler county. It was brought out in the debate, likewise, that in a number of cities, including Lebanon, an understanding has been generally reached not to pay interest on checking balances while a uniform rate of 3 per cent. on time deposits is maintained. As regards Pittsburgh it was pointed out that earnings have been impaired because of the policy of paying 4 per cent, on time deposits and 3 per cent. on reserve accounts. Philadelphia delegates maintained that the situation in that city has been rendered FIDELITY TITLE AND TRUST COMPANY 341-343 Fourth Avenue PITTSBURGH, PA. Capital, Surplus and Undivided Profits $7,750,000.00 Interest paid on deposits Safe Deposit Boxes for Rent less difficult because few institutions pay more than 2 per cent. on checking accounts and 3 or 32 per cent. on savings or time deposits. Although the conditions call for varying rates according to locality the impression was general that excellent results will be forthcoming because of the exchange of sentiment on the subject at the recent convention. Pittsburgh Brevities John O. Miller, treasurer of the Safe. Deposit and Trust Company recently attended a meeting at Chicago of the directors of the Iroquois Iron Company at which the sale of the property was completed. Mr. Miller has been a director of the Iroquois Company, in which Pittsburgh individuals have held a substantial interest. The sale was completed at a handsome profit. Pittsburgh bank clearings for May were $274.750,473, a new high record for the month and an increase of $65,000,000 over May, 1915. The Union Trust company was awarded the $2,226,000 four per cent. Allegheny County bonds. The issue includes: $750,000 for the city-county building, $990,0co for road improvements, $106,coo for bridges, $80,000 for the Juvenile Home. 32nd YEAR OF SERVICE Mercantile Trust & Deposit Company OF BALTIMORE Capital, Surplus, and Undivided Profits, $4,695,402 Largest capital and surplus of any financial institution in Maryland, or any Southern State. We offer our services in any or all of the capacities properly exercised by Trust Companies, and will give the most careful attention and the benefit of our long experience to all matters entrusted to our care. FRED G. BOYCE, Jr., Vice-President A. H. S. POST, President Baltimore Special Correspondence Life Insurance Policies as Collateral for Notes In his annual address as president of the Maryland Bankers' Association an interesting suggestion was made by Mr. Harvey L. Cooper of Denton that individual borrowers, seeking extension of their notes, should create a sinking fund, in effect, as corporations are required to do in executing mortgages covering issues of bonds. He urged that banks should prevail upon customers to take out an insurance policy and that this be accepted by the bank as collateral for extensions on notes falling due. In explaining his plan Mr. Cooper said: "The point I seek to make, is that the requirement of a policy of life insurance first makes provision for the ultimate liquidation of the loan; second, when assigned to the bank as additional collateral, is practically certain to be continued by the borrower; third, protects the bank in case of premature death; fourth, successfully prevents the community which the bank serves from losing its habits of frugality and thrift, and thereby becoming so tied up with a volume of fixed indebtedness as to make it such an easy prey to the vicissitudes of those bad years and hard times which are certain to occur." Baltimore Brevities Mr. Fred G. Boyce, Jr., vice-president of the Mercantile Trust & Deposit Company has been nominated as vice-president for the State of Maryland of the Trust Company Section, American Bankers' Association. The Baltimore Trust Company has disposed of its holdings of 51 per cent. of the outstanding stock of the Baltimore Dry Docks and Shipbuilding Company to Mr. George P. Miller of Milwaukee, who represents important financial interests of that city. The price was $101 a share for the preferred and the common stock. IDAHO: BOISE.-Plans are in process of formation by prominent business men of Boise and the surrounding district for the organization of a trust company to have a capital of $100,000 and be known as the Wallace Bank and Trust Company. New Orleans Special Correspondence Increasing Banking Prestige of New Orleans Although New Orleans has not the dignity of being a Reserve bank center and must content itself with a branch office of the Atlanta Federal Reserve Bank it is increasing steadily in financial and business prestige. As the second largest port of the United States this city is paving the way for still greater achievements in completing elaborate plans for the construction of dock, terminal and warehouse facilities. Bank clearings in this city for the first quarter of 1916 aggregated $308,544,890 as against $234,471,992 for the corresponding period last year. For May the clearings total $103,556,195 as compared with $69,948,500 last year. Returns of the State banks and trust companies of Louisiana under date of March 7th showed total resources of $135,907,019, a gain of $4,803,767 since the first of the year. General business is reflecting marked improvement and real estate transactions are becoming more numerous than for several years past. Banks and trust companies are amply supplied with funds and in sound position to finance continued activity as well as to aid cotton interests, despite recent declines in price quotations of that staple. Crop Diversification in the South Need for diversification of crops has been a lesson from the European war which is quickly being learned. In many sections of the South, there has been a notable increase in the production of grain and other food products, and the conversion of these into bacon and beef. A greater variety of output, the most progressive farmers believe, will forestall a recurrence of the acute depression following the beginning of the war, when cotton fell below the cost of production. A Budget of Advertising Literature The Security Trust & Savings Bank of Los Angeles is issuing some very effective and timely advertising these days. A booklet entitled "A Hand-book of Security" describes how accounts may be opened and the facilities provided by various departments. The new business and publicity department has also issued an automobile road map of Southern California for which there has been a large demand. Louis W. Hill, who succeeded his father, the late James J. Hill, as president and chairman of the Great Northern Railroad system has been elected a director of the First National Bank of New York. Los Angeles Special Correspondence Practical Pension System for Bank and In an address delivered recently by W. D. Longyear, cashier of the Security Trust & Savings Bank of the this city, before California Bankers' Association, he discussed the various pension, savings, profit sharing and group insurance systems employed by banks and trust companies. He commented upon the marked change in recent years in the attitude of large financial and business corporations toward their employees which should go a long way toward disabusing the public mind that "corporations have no souls." Mr. Longyear described the various plans now in use, especially in banks and trust companies, which may be classified as follows: pension and insurance combined; pension and profit sharing; pensions contributed entirely by employer and pension funds sustained by both the employer and employee. Commenting upon the most practical system he said in part: "In the first instance, the insurance feature is highly commendable, and is entitled to receive serious consideration, especially by the management of the older banks. It makes a stronger appeal to the average employee, than any other beneficiary plan, for through it he realizes that, in the event of his death, those dependent upon him would receive immediate and substantial aid; but it is generally conceded that this contingency is best met through the medium of group insurance, the cost of which is usually covered by the bank. "Profit sharing combined with that of the pension has not in all cases proved successful or satisfactory. The question of stability enters too largely into this arrangement. In prosperous times it works admirably; but let periods of depression come, with consequent decrease of earnings, and dissatisfaction will follow. "In the speaker's judgment, the most admirable system to meet all the requirements of corporate paternalism is a combination of group insurance and a retirement pension or salary." Larger Quarters for Los Angeles Trust Following the recent announcement of the establishment of a new branch in the new wholesale terminal at Seventh street and Central avenue, the Los Angeles Trust & Savings Bank is making arrangements to enlarge the banking quarters of its home office. When the company first took possession of its present home at Sixth and Spring streets in 1911, the deposits were $9,947,598, while now they aggre-. gate $21,600,000. Central Trust Company of Camden, New Jersey, Celebrated 25th Anniversary Through an error appearing in the last issue of TRUST COMPANIES Magazine the Central Trust Company of Camden, N. J., was referred to as the "Camden Trust Company" in commenting upon the 25th anniversary of this institution. In making this correction, it is of interest to recall the excellent record made by the Central Trust Company during its twentyfive years of existence and the high place which it occupies among the members of the community which the management has served so loyally. The company has close to 10,000 individual depositors on its books with deposits on May 9th aggregating $2,281,291. A large number of patrons embraced the opportunity to pay their respects in person on May 8th, the day when the twenty-fifth milestone was reached, and also manifested their appreciation by bringing in new depositors. The Central Trust Company has capital of $100,000, undivided, profits of $302,544 and combined assets of $2,700,199. In the trust department separate trust funds of $1,127,119 is reported. In its executive management and through the board of directors the Central Trust Company has enlisted the active services of many of the foremost and responsible citizens and business men of Camden. The officers and directors are as follows: H. H. Grace, M. D., president; C. T. Sharpless, vice-president; John B. Clement, second vice-president, secretary-treasurer; Montreville Shinn, assist ant secretary-treasurer; C. Chester Craig, trust officer. Board of directors: Alpheus McCracken, chairman of board; Casper T. Sharpless, A. J. Fullmer, Fithian S. Simmons, Jesse W. Starr, 3d, W. Leonard Hurley, Killam E. Bennett, Eli Sharpless, H. H. Grace, M. D., H. N. Munger, John B. Clement, Andrew B. F. Smith, Philip Wilson, Richard C. Schwoerer. HOME OF THE CENTRAL TRUST COMPANY OF CAMDEN, NEW JERSEY Nevada-California Electric Corporation The bond department of the International Trust Company of Denver, Col., announces an attractive offering of the Nevada-California Electric Corporation six per cent. first lien gold bonds, series "A." The bonds are offered subject to prior sale and advance in price, at 981⁄2 and interest, at which rate the yield is about 6.10 per cent. A study of the circular description of the properties shows the strong financial standing and earning power of the Nevada-California Electric Corporation which serves the rich agricultural and industrial sections of Southern and Eastern California and also the great mining districts of Central Western and Southwestern Nevada with hydro-electric power having a present capacity of 47,000 h. p. This corporation is largely controlled by important Denver interests and during its twelve years of operation has experienced an unbroken record of success. Of the authorized total issue of series "A" 6 per cent. first lien gold bonds the present offering is $3.943,500. The total issue is secured by pledge of approximately $7,063,000 six per cent. of subsidiary companies and $14,311,800 (over 99 per cent,) of their capital stocks. Upon completion of the present financing and retirement of outstanding first mortgage bonds of subsidiary companies in the hands of the public, the new 6 per cent. first lien gold bonds will be secured by a direct collateral first lien upon all subsidiary properties. The earnings for the calendar year of 1915 available for bond interest, amounting to $1,017,831, is equal to about 1% times the annual interest on total bonded debt, including the last issue of 6 per cent. first lien bonds. Interest on the series "A" bonds is payable January and July at the office of the International Trust Company, Denver, Col., which is trustee, or at the Bankers Trust Company, New York. |