companies"; to act as trustee, assignee, receiver, administrator, executor, guardian of the person and estate of any minor, or of the estate of any lunatic, imbecile, spendthrift, habitual drunkard or other persons unable to manage their estates; to do a fidelity insurance business; to do a title insurance business; to loan money upon real or personal security; to issue its notes or debentures payable at a future time, and to pledge its mortgages upon real estate or other securities as security therefor; to buy and sell Government, State, county, municipal and other bonds, and all kinds of negotiable, non-negotiable and commercial paper, stocks and other investment securities; to become endorser and surety; to receive both time and demand deposits; to do a safe deposit business.

The directors are authorized to invest the capital "in good securities"; and the capital and funds entrusted to the company may be invested in notes or bonds and mortgages on unincumbered real estate in the State, or in stocks and bonds of this State or any State or Territory of the United States, or in the bonds of any county, city, town or school district of this State. Such corporation may own only such real estate as is required for the transaction of its business and such as is acquired in the settlement of debts due it.

Loans to any managing officer are forbidden except upon good collateral or other good and specific security; and where such a loan exceeds 10 per centum of the capital it must first be approved by a majority of the Board of Directors and be entered with their signatures upon the minutes. Loans to any one party,-bona fide discounts excepted,-must not exceed 20 per centum of the capital and surplus. Stockholders are subject to double liability. The reserve required is fifteen per centum of the total deposits, "of which such portion as the Board of Directors may determine" may be on deposit in banks in cities of the first and second classes approved by the State Examiner as reserve banks. The reserve banks are required to maintain a reserve of 25 per centum, which may be in lawful money or on deposit with banks subject to the approval of the State Examiner. The use of the terms "trust" and "trust company" in titles is forbidden except to regularly organized trust companies. Foreign companies may operate in the State under conditions detailed in the statutes. The Laws of 1905, page 216, provide for the organization of "Endowment and Investment Corporations", which have some of the powers of banks and of trust companies.

The State Examiner is required to call for not less than four reports. each year from trust companies, at intervals of not less than two calendar months; the reports to be according to a form prescribed by him and to be published in local papers. The directors are authorized to declare semi-annual dividends; and reports of dividends must be forwarded to the State Examiner within ten days after same are declared. The directors are personally liable for violations of the law.

(Code 1895, paragraphs 590-611. Act of March 15, 1901. Laws of 1905, Chapter 19. Laws of 1907, Chapters 137, 159, 164, 190.)

NEBRASKA.

This State has no statutes relating to trust companies. Paragraph 2081 of the Compiled Statutes (chapter 16, section 123), provides that "any number of persons may be associated and incorporated for the transaction of any lawful business."

NEVADA.

This State has no statutes relating specifically to trust companies. The general incorporation laws provide (Laws of 1903, chapter 121) that three or more persons may incorporate for the transaction of any lawful business, except to carry on within the State an insurance business, or that of a surety company, or that of a railroad company other than a street railroad. Such a corporation has, in addition to certain specified and ordinary powers of corporations, "the powers expressly given in its articles or certificate under which it was incorporated." Chapter 119, Statutes of 1907, creates a Board of Bank Commissioners. Trust companies are apparently subject to the control of this Board if they do a banking business, but are not mentioned in the act.

NEW HAMPShire.

Trust companies, as well as banks, are incorporated only by special act of the Legislature. The powers of such corporations are enumerated in their charters. There are a few general laws regulating the business of trust companies. For purposes of taxation, they are required to report to the State Treasurer annually, on or before May 1. The company must pay to the same official annually, in October, a tax of three-fourths of one per centum upon the amount of the general deposits on which it pays interest, after deducting the value of its real estate and the value of its loans secured by mortgage on real estate in the State made at a rate not exceeding five per centum per annum; and in addition a tax annually of one per centum upon the capital stock, less the value of all real estate owned by the corporation and not already deducted from the amount of the general deposits as hereinbefore provided. Such taxes are in lieu of all other taxes against the corporation, their stockholders and their depositors on account of their interests therein. Trust companies are under the supervision of the Bank Commissioners, who are required to examine them annually, or oftener when so directed by the Governor. If unsafe conditions are revealed, the Bank Commissioners may apply to the supreme court for the appointment of an assignee to take charge of the institution. Trust companies are forbidden to make loans to officers or directors except by the unanimous approval of the board of directors in writing. If the company transacts the business of a Savings bank, such business must be conducted in a separate department, which is amenable to the laws governing Savings banks, and the

Treasurer of the company shall give a bond to the savings department in like manner as is required of the treasurers of savings banks. Trust companies are forbidden to commence business until they have satisfied the Bank Commissioners that their capital has been paid in in accordance with the provisions of their charters. The management of such companies shall consist of a board of trustees or directors elected annually, who must be sworn to the faithful discharge of their duties, and one of whom shall be elected President of the company. Such board shall elect an investment committee of not less than three of its members. The board must meet at least once each month, and receive the report of the investment committee. Each director must be the absolute owner of at least ten shares of stock; or of at least five shares if the capital stock does not exceed $50,000. A trust company may not "hire" money or give its note except on the duly recorded vote of the directors. The directors are required to make a semi-annual examination of the company, forward reports of such examinations to the Bank Commissioners, and publish copies of same in a local newspaper. For the record of loans and investments, trust companies must keep a separate book, with classifications as required by the Bank Commissioners, which book must be submitted to the Commissioners or the directors at each examination. The Treasurer of the company must report to the Bank Commissioners the condition of the company annually as of the last business day of June. Officers and employees are forbidden to receive any fee, present or benefit from bor1owers as an inducement to make loans. Trust companies are forbidden to loan to one person, firm or corporation an amount in excess of ten per centum of their capital, or to hold, both by way of investment and security for loans, the stock and bonds of any corporation to an amount in excess of said ten per centum, or to make loans on their capital stock. (Laws of 1895, chapters 90, 92, 105 and 108; Laws of 1899, chapter 14; Public Statutes, chapter 65, $12, and chapters 162, 163 and 165, passim.; Laws of 1905, chapter 32.)

NEW JERSEY.

The laws of this State regarding trust companies were carefully revised in 1899, and the Trust Company Law of that year is quite elaborate. Seven or more persons "of full age" may incorporate a trust company. The name of the company must contain the word "trust", and no company incorporated under any other act may use such word in its title. The capital must be at least $100,000 fully paid, divided into shares of $100 each. More than one class of stock is forbidden. The proceedings for incorporation are specified in detail.

In addition to the usual corporate powers, such a company, "whether such powers are set forth in its charter or certificate of incorporation or not," shall have power: To act as fiscal or transfer agent, and in such capacity to receive and disburse money; to act as registrar; to act as

agent for corporations, foreign or domestic; to receive deposits of trust moneys, securities and other personal property; to loan on real or personal security; to hold such real estate as is necessary or convenient for the transaction of its business, or as its purposes may require, and such as is acquired in the settlement of debts due to it; to act as trustee under a mortgage or bond issue, "and to accept and execute any other municipal or corporate trust not inconsistent with the laws of this State;" to execute trusts for married women in respect to their separate property and to be their agent in the management of same; to act under appointment of court as guardian, receiver or trustee of the estate of any minor, and as depository of any moneys paid into court; to receive and execute court trusts; to manage estates; to receive and execute trusts of any nature or description confided to it by persons, bodies politic, corporations or other authority, and to hold any property or estate, real or personal, that may be the subject of any such trust; "to purchase, invest in and sell stocks, promissory notes, bills of exchange, bonds and mortgages and other securities", but "no corporation created under this act shall have power to discount commercial paper"; to give its bonds or obligations for moneys or securities for moneys borrowed or received on deposit or for investment; to act as assignee or trustee under an assignment; to act as receiver or trustee; to act as executor, administrator or as committee of the estates of lunatics, idiots, persons of unsound mind and habitual drunkards; to do a safe deposit business, a title insurance business, a fidelity insurance business, and to become sole surety in cases where by law two or more sureties are required, provided such powers are enumerated in the certificate of incorporation; to collect coupons or interest on securities; to receive and manage any sinking fund; "generally to execute trusts of every description not inconsistent with the laws of this State or of the United States"; to receive money on deposit subject to check or otherwise.

Trust companies are forbidden to make loans upon bills, notes or other evidences of debt, except to a county, city, town, township, borough or municipality of this State, unless the same shall be secured by mortgage upon lands or by other securities, the actual market value of which other securities shall at all times exceed by at least ten per centum the amount loaned upon the same. Funds or property held in trust must not be mingled with the other funds or property of the com pany. Such a company may not be appointed to act as assignee, receiver, administrator, guardian or trustee by any surrogate or court of the State, until it has set apart a fund specially devoted to securing its liabilities in such capacities of trust and confidence, invested in securities of the character in which trust funds may by law be invested, and has deposited such securities with the register of the prerogative court. This fund must be equal to at least one-fifth the amount of the liabilities for which the fund is especially responsible, unless the fund equals or exceeds $100,000-in which case it must be equal to at least one-tenth of

such liabilities. However, the creation of this fund is not required when the trust company gives security in the manner prescribed by law in such bchalf for natural persons, or in cases where the trust company shall have been appointed as executor or trustee by any will or deed. If the deposit be made, no other security shall be required.

A list of stockholders of record must be kept which must be open at all times during business hours to the inspection of any stockholder. The affairs of every trust company shall be managed by a board of not less than five directors, elected annually. A majority of the Board constitutes a quorum; provided that if the number of directors exceeds nine, they may designate nine members, of whom any five shall constitute a quorum. Each director must own at least five shares of stock, and is required to subscribe to and place on file an oath not to knowingly violate, or permit to be violated, the provisions of the trust company law. Before the directors may declare a dividend, one-tenth of the net profits must be carried to a surplus fund until such fund equals twenty per centum of the capital. The directors must appoint examining committees who must examine the affairs of the company every six months. No loans may be made to directors, officers or employees unless the proposition to make such loan shall have been submitted in writing to the directors or executive committee and regularly approved by a majority of those present constituting a quorum, nor shall such persons be permitted to become indebted to the company through an overdraft. At least two reports each year must be made to the Commissioner of Banking and Insurance, according to a form prescribed by him, and abstracts of such reports must be published once in a local newspaper. The Commissioner may call for special reports. No trust company shal! make loans on its own stock; or be a purchaser of same unless such purchase be necessary to prevent loss on a previously contracted debt; and stock so purchased must be disposed of within one year. Deposits made by minors are under their control.

Every trust company receiving deposits of money subject to check or payable on demand shall keep a reserve fund of fifteen per centum of all its immediate demand liabilities. One-fifth of this must consist of cash on hand: the balance may consist of deposits in "good, solvent banks or trust companies." Trust companies are subject to the inspection and supervision of the Commissioner of Banking and Insurance, who must examine them when he deems it expedient or at their request. If unsafe conditions are revealed, he may take immediate possession, notifying the Attorney-General, who shall institute such proceedings as are necessary. The capital of a trust company must be taxed in the taxing district where its office is situated, and its real estate where such real estate is situated. Trust companies are specially authorized to act as depositaries for the moneys of counties, cities and other municipalities. Trust companies may pay to either person moneys on a joint account, whether the other be living or not. It is a misdemeanor to circulate false reports regard