boxes in that department is submitted, and he makes a selection suitable to his requirements. Then, upon his signing a contract for the use of his box, the key thereof is delivered to him, and his bonds are deposited therein.

There is, we admit, little direct profit in the safe-deposit department when run on a small scale, but the indirect profit of keeping your customer in the house may be considerable. And while the box rent may be small, a fair profit will likely accrue from the sale of the bonds.

The fundamental principle in business is in keeping your customer-making him feel satisfied that you are doing the best that can be done for his interests under all the circumstances. When once he has favored you with his patronage, if you have the departments needed to accommodate his requirements, and in each of such departments his interests are carefully handled, he will remain with you, and the net results of his business, running through the various departments accommodating him, will likely be important.

These

There are many women customers in these times, and their number is constantly increasing. They especially prefer to have their safe-deposit boxes with the company that transacts their trust or banking business. They can deposit their coupons, notes, collaterals, or other securities in the banking department for collection, and thereby save time, risk, and the inconvenience that attends transacting business at several places. The guard of the safe-deposit department should be particular in his attention to the ladies, saving them as much trouble as possible. He should see that their boxes are carefully inserted in the proper space in the safe-deposit vault, and when removed, carry them to the coupon rooms. little attentions are gratefully received, and not only do much toward making the renters of boxes feel that their patronage is appreciated, but lead them to tell their friends, and so to become active agents. for the company in soliciting new business. The manager of one of the large trust companies in New York recently said that they had many renters, both men and women, having no one to assist them in their money matters, who would frequently have the guard in charge help them cut their coupons and arrange them in envelopes for deposit in the banking department of that company. The first safe-deposit company in the city of Pittsburg was or

ganized in the year 1867. Since that time there have been at least ten additional ones established, including banks which rent boxes.

As to the style of locks for safe-deposit boxes, it is very desirable to have double locks with two escutcheons. Many of the renters suppose, when the guard places his key in the same escutcheon they use, that he has access to the boxes. This is a mistake, and the impression should be avoided as far as possible. The guards and managers of the safe-deposit department should be careful to see that the renters properly replace their boxes in their own compart

ment.

As to general powers of attorney granting admission to safedeposit boxes, they should specifically set forth that the attorney in fact has authority to open the box; for, while some companies consider a general power of attorney sufficient authority, others insist that a specific power be given granting that privilege.

The advertising for the safe-deposit department should be kept up continuously, and should be of a rich, neat, and attractive character. Of course, you do not get immediate results from your advertising. It is like the farmer sowing his seed; he has to wait until the seed finally develops into the crop, and this means that he will reap his harvest perhaps a year afterward. This law applies as well to the advertising of the safe-deposit department and of all the other departments of a large trust company. One of the prominent merchants of Philadelphia, at one time having occasion to increase his credit, sent his credit man to New York to see Mr. A. T. Stewart concerning the granting of a larger line. The credit man admitted that the profits made by his concern were not sufficient for the amount of business done, and upon this admission the additional credit was declined. The principal of the house then went to New York to obtain if possible the desired credit, meeting with the same result. Later he requested a personal interview with Mr. Stewart who at first also declined to grant him further credit; but when, upon considering his claim, Mr. Stewart asked him: "How much money did you pay for advertising last year?" and received the answer, "Ninety-four thousand dollars" Mr. Stewart said: "Add this to your profit for last year and it shows you a very handsome return." As the result of this new light on the situation Mr. Stewart said: "You can have the additional credit.

You will not begin to realize until this year the benefit from the money you paid last year for advertising." This is true of trust company advertising. A great deal of missionary work is done from which no returns are received for one, two, and in some cases three years. But by careful, judicious, and persistent advertising fair results are sure to come, if you have facilities for taking care of the business, and if you treat your customers politely and handle their business with care.

The safe-deposit department should be made as attractive as possible. Some of these places are very dismal looking. Last summer when in London I visited one which was so gloomy that it reminded me very much of a dungeon, with its heavy grates and bars and its dim lights. The largest safe-deposit department I have ever seen is that in connection with the Crédit Lyonnais in Paris, this one department covering four floors. It is four stories under ground, all the different entrances are carefully guarded, and all the renters are carefully examined as they pass in. The safedeposit boxes are in large cupboards, and each of these cupboards in turn has a variety of assorted boxes, so that it is impossible to get into more than one compartment at a time.

In ordering safe-deposit boxes for a company it is difficult to decide on the sizes to place in the vault, as the demand varies. The proper way is to buy them in sections and sort them up to suit the demand.

One of the most successful novelties which we use in advertising our safe-deposit department is a small tin box in which renters can collect their diamonds, jewelery, etc., and place in their safedeposit box. We have sent out 2,500 of them and have met with the best results

TRUST COMPANY ADVERTISING

ADDRESS DELIVERED BY RICHARD L. CRAMPTON, ASSISTANT CASHIER, NATIONAL BANK OF THE REPUBLIC, CHICAGO, BEFORE THE AMERICAN BANKERS' ASSOCIATION, AT RICHMOND, VA., OCTOBER, 1900.

OCCASIONALLY one finds a man who says that it is not good business ethics for trust companies to advertise. The average man will admit they may advertise. The officers of most companies, I believe, think they should advertise. The signs of the times say they must advertise-that is, if increasing dividends are desired. By advertising I mean the broader definition-all that goes to make favorable publicity.

Many of the older trust companies have established reputations in their respective cities which keep on bringing new business to them three hundred and sixty-five days in the year, but even they must let the growing generations of this advertising age know that an up-to-date business is still being done at the old stand. The newer trust companies, particularly those in the West, where the functions of a trust company are only beginning to be understood, must make an advertising investment for the business of ten or twenty years in the future.

Perhaps in no business can good advertising be considered as favorably in the light of an investment as by trust companies doing the usual estate business. The estate of a person who to-day is favorably impressed with the stability and business policy of a trust company sufficiently to name it as executor and trustee in his will may not become a trust for many years, and while the results are a long way off, the companies which are making the best impression upon the public to-day through their advertising will later on, other things being equal, reach greater results than those which do not advertise.

The question, then, is as to the best methods of advertising. This will always be a matter of opinion. One man holds tenaciously to a style which another regards altogether wasteful, if not absolutely injurious. Someone has said that advertising is one of the modern wonders. The established principles are certainly of a very general character, and the secrets are hard to discover.

Each company should have someone, preferably an officer, to attend to all advertising matters, at least so far as relates to the

general policy, in order that he may be brought to study more carefully the latest methods of reaching the people. I say "preferably an officer" for the reason that I believe it will greatly promote the best interests of the company to have someone in authority who appreciates the importance of the subject, understands the policy of the institution, and is on an equal footing with those whom he can consult with greater advantage than can an employee or an outside advertiser.

The duty of creating new business is certainly of as great importance as, and more difficult than, merely executing the business in hand, and should receive corresponding attention. I have been unable to learn of a single instance where professional advertisers, not familiar with trust company business, have been able to give satisfactory results unaided. I can see no reason for this except that their point of view has been greatly biased by their experience in handling advertising to sell goods. Trust companies do not have goods to sell. They simply are giving publicity to their stability, their methods, and their terms. In all of this the personal equation is the largest factor. It is, then, largely a matter of impressing the public favorably with the personality of the management, without seeming to do so.

The public knows an institution through its advertising. Therefore it should be absolutely of the best. If the person in charge of it is unfamiliar with the subject, he will do well to call in one of the best advertisers he can find as an assistant, expecting to pay him well for his services. But I believe it is necessary, in order to obtain good results, to study the situation independently, and in a large measure to act independently of his advice. First of all study the constituency carefully and its point of view. Different localities and different constituencies require very different methods. If it is expected to get the money back that is invested in advertising, with a fair percentage in addition, it is essential that the details of the matter receive such careful attention that they may be considered as being almost on a scientific basis. Better not advertise if you cannot do this.

Each company has one or two strong talking points, or at least it should have. The company with which I have the good fortune to be connected has probably one of the best boards of directors