officers or employees are forbidden, and loans to them must first be submitted in writing to, and be approved by, the directors or executive committee. The company may not loan on its own stock, or purchase same except to prevent loss on debts previously contracted in good faith, and stock so acquired shall be sold in one year. Minors may control their deposits. Joint accounts of two persons may be paid to either or to the survivor. Ninety days notice may be required for withdrawals on savings accounts. The deposits of a trust company may not exceed ten times the amount of the surplus and paid capital. A number of offences and crimes are made punishable by fine or imprisonment or both.

Trust companies are under the supervision of the Bank Commissioner, to whom they must make at least five reports each year, on his call. The information to be given is specified in detail, and is quite full. It includes trust funds. The Commissioner must examine each company at least twice in each year, and if it is connected with a National bank, must if possible, work simultaneously with the National bank examiner. (Laws of 1908, Chapter 1590, passed May 26, 1908.)

SOUTH CAROLINA.

Trust companies in this State are incorporated by special act of the Legislature, such special charters defining the powers and limitations of such corporations. They may also be incorporated under the Business Corporation Law. There are few general laws relating to trust companies, but they are governed by the banking laws, in part at least. Any banking corporation or trust company, with a bona fide capital of at least $25,000 actually paid in, if so authorized by its charter, may be appointed executor, administrator, receiver, assignee, guardian (of the estate only, not of the person), trustee for the care and management of property, "under the same circumstances, in the same manner, and subject to the same control by the court having jurisdiction of the same, as a legally qualified person." The capital and stockholders' liability are held as security for the faithful performance of duty, and no surety shall be required upon bonds filed by such company, except that the court making any of the above-mentioned appointments, save that of trustee, may, upon application of an interested person, require such additional security as the court considers proper. The State Bank Examiner is required to examine each company at least once a year, and also upon petition of stockholders representing one-fourth of the stock. The examiner must, without previous notice, call for at least four statements each year, and these statements must be published in local papers.

(Laws of 1903, No. 37; Laws of 1904, No. 215; Laws of 1906, No. 64).

SOUTH DAKОТА.

Five or more persons, of whom one-third must be residents of the State, may incorporate a trust company. The capital must be at least

$25,000 in towns of less than 10,000 inhabitants; at least $50,000 in cities of from 10,000 to 25,000, and at least $100,000 in larger cities. It must be divided into shares of $100 each, and must all be paid in before commencing business. The stockholders are subject to double liability. There must be at least five directors, each of whom must own five shares of stock, and a majority of whom must be residents of the State. The powers specified are to act as assignee or trustee by deed, executor, guardian or trustee by will, such appointments having the same force as in the appointment of natural persons; to act as receiver, assignee, guardian, conservator, executor, administrator or other trustee by appointment of court; the appointment as guardian or conservator shall be of the estate only, not of the person; to act as fiscal agent, transfer agent, registrar, trustee under bond issues; to execute trusts and powers "of whatever nature or description" not in conflict with the laws, received from persons, corporations, courts or other authority; to hold and manage in trust real or personal property; to act as agent for the investment of moneys in real or personal securities; to receive moneys and other property, real or personal in trust and to allow interest; to deal in stocks, bills of exchange, bonds, mortgages, notes and other securities; to loan on real or personal security; but the total loans may not exceed ten times the capital and surplus; to buy, sell, deal in and handle real estate, but the amount invested in real estate shall not exceed onehalf the paid capital, (this does not apply to trust funds or to real estate taken in satisfaction of debts, but real estate taken as last mentioned shall not be held more than two years); to receive money on deposit subject to check.

Before a dividend is declared, ten per centum of the net profits must be carried to surplus until the latter equals 30 per centum of the capital. Before undertaking any trust the company must execute a bond in favor of the State in a penal sum equal to the capital, signed by at least three securities, approved by and deposited with the Secretary of State; the latter has the discretion of accepting a surety company bond. No other bond shall be required of the company, except that a court may at its discretion require more security if the value of an estate to be committed to the company's care exceeds the capital and surplus by more than three times. No loans may be made on the company's own stock except to prevent loss upon debts previously contracted in good faith, in which case it must be sold within six months. The total liability to the company of any one party must not exceed 15 per centum of the capital and surplus, first mortgages on property worth double the amount loaned being excepted. Trust funds must be kept separate. The compensation received by the company must not exceed that allowed to natural persons for like services.

A reserve must be maintained, of 10 per centum of time and 25 per centum of demand deposits; on hand in cash or on deposit in solvent banks. The Public Examiner must call at least four reports each year, ac

cording to a form prescribed by him, as of past days. The reports must include a list and brief description of the trusts and of the amount of real and personal estate held under the same. Special reports may be called and all reports must be published in local papers. Each company must be examined at least once a year by the Public Examiner. Title insurance, surety and fidelity insurance companies are provided for by chapter 73, Acts of 1905.

(Laws of 1903, chapter 79 [this is 4204 and 4205 Grantham's Annotated Statutes 1901]. See also Annotated Statutes, paragraph 3812. The trust company law is found in chapter 74, Laws of 1905, as amended by chapter 109, Laws of 1907).

TENNESSEE.

Act 168 of the Acts of 1883 provides for the organization of banks, "said banks to be invested with authority, if the banking company or corporation so chooses, to couple with the ordinary business of banking a safe deposit and trust company." Such banks must have five or more directors. Their powers specified are: Ordinary banking; safe deposit business; to guarantee the payment of bonds and mortgages; to do a title insurance business, and "to accept and execute all trusts of every name and kind which may, with its consent, be imposed upon it by any person or corporation, whether the trust be that of guardian, executor, trustee, the committee of the estate of a non compos mentis, or any other trust, the said corporation being hereby invested with the power to act in such fiduciary capacity as fully as if the corporation were a person in being." Such corporation must be organized like other corporations, and must publish a statement in a local newspaper every six months. (Shannon's Code, 1896, §§ 2090-2105).

Chapter 44, Acts of 1901, provides that trust companies must, in July and January of each year, or within thirty days thereafter, publish in a newspaper in the county a statement of financial condition as of June 30 and December 31, respectively, next preceding. The form of this statement is to be determined by the Comptroller of the State.

Chapter 377, Acts of 1903, makes more detailed provisions regarding trust companies. Banks in counties of population from sixty to ninety thousand, organized for the purpose of conducting a savings, safe deposit and trust banking business, with a capital of $100,000 or more, "may be appointed to accept and execute trusts and agencies of any kind and character whatsoever", to which they may be appointed by persons, corporations, public or private, or executor, administrator, guardian (of estates only, not of persons) of infants, idiots, lunatics and other persons of unsound mind, receiver, commissioner, assignee or trustee for any person, firm, association, etc., attorney in fact or agent for the transaction of any business, management or sale of any property whatsoever, "in the same manner and to the same extent as natural persons." The capital of such companies shall be taken as the security for faithful per

formance of duty required by law, and no other security need be required, except in the discretion of the courts. Such corporations may act as depositaries for public funds and for funds in charge of persons acting in fiduciary capacities.

Trust funds must not be included in the assets of the company. They may be invested in bonds of the United States, of Tennessee and the other States, first mortgage bonds of any railroad, bonds of any county or municipal corporation, provided such bonds be worth par or more and have regularly paid dividends of not less than four per centum for the five years preceding, or in first mortgages on real estate appraised at least twice the amount loaned thereon, such mortgages to run for not more than ten years. The designation of an attorney in a will, and the right of heirs to select an attorney must be recognized. When acting as guardian, such company need render statements only every two years, instead of yearly, as is required of natural persons so acting. The fees which may be charged for services in certain fiduciary capacities are specified in the statute.

TEXAS.

Five or more persons may incorporate a "banking and trust company." Articles of agreement must be filed with the Secretary of State. The corporation may not continue more than fifty years.

The act authorizes the establishment of banks of deposit or of discount, or both, having trust powers. The powers specified are: To exercise the powers of banks of deposit and discount; to act as fiscal agent of corporations, public and private; to act as transfer agent and registrar; to receive deposits of trust moneys, securities or other personal property; to loan money on real or personal securities; to hold such real estate as is needed in the transaction of the business, and such as is acquired in the satisfaction of debts due the company; but the latter may be retained not more than five years; to act as trustee under any mortgage or bond issue, "and accept and execute any other municipal or corporate trust not inconsistent with the laws of this State"; to accept trusts for married women with respect to their separate property, and to act as agents in the management of same; to act under the appointment of court as guardian, receiver or trustee of the estate of any minor, the annual income of which shall not be less than $100; to act as depository of any moneys paid into court; to execute any legal trusts regarding the management of estates real or personal, from whatever source the trust may be received; to manage estates; "to purchase, invest in, guarantee and sell stocks, bills of exchange, bonds and mortgages and other securities"; to issue its own bonds and obligations; to act as executor, as administrator, as guardian of any infant, insane person, idiot or habitual drunkard, or as trustee for any convict in the penitentiary, under appointment of court; to do a fidelity insurance business; "provided, this

act shall never be construed as authorizing the granting of a trust not lawful as between individuals."

The capital shall be not less than $50,000 nor more than $10,000,000. The affairs of the corporation shall be managed by a board of directors not less than five nor more than twenty-five in number; elected annually unless the number exceeds five, in which case they are to be divided into three classes so that each shall serve three years, one-third retiring each year.

The office of Superintendent of Banking is filled by the Commissioner of Agriculture, Insurance, Statistics and History, who is authorized to employ clerks and examiners. It is his duty, either in person or by an examiner, to visit and examine every trust company in the State once per annum, and oftener when he thinks it necessary. The expense of such examinations is borne by the companies examined, according to a schedule of maximum charges outlined in the statute. Detailed provision for procedure to enforce the authority of the Superintendent of Banking is made in the statute. In case he finds a trust company to be in bad condition or to ignore his instructions, he must communicate the facts to the Attorney-General, who shall institute such proceedings as the nature of the case may require. In case of need, the Superintendent of Banking may take immediate charge of the company, pending the appointment of a Receiver. A trust company may place itself in the hands of the Superintendent of Banking by posting notice, and a voluntary general assignment is forbidden.

Reports to the Superintendent, in a form prescribed in the statute and by the Superintendent, must be made upon his call at least twice cach year, and oftener at his discretion. Such statements must be published in a local newspaper, and must be posted in the banking house.

Trust companies may not loan to any one individual, company or corporation an amount greater than twenty-five per centum of the capital stock; or of the capital stock and surplus if the latter is equal to or in excess of fifty per centum of the capital. The discount of bills of exchange drawn against actually existing values and the discount of paper upon the collateral security of warehouse receipts covering products in store under certain conditions, are not considered as money borrowed. Trust companies may not engage in trade or commerce. The directors may declare dividends, if earned, every six months or oftener, but must first set aside ten per centum of the net profits to a surplus fund, until the same amounts to fifty per centum of the capital.

Funds in the charge of trust companies may be invested in loans secured by real estate or other sufficient collateral security, in public bonds of the United States or of this State, in the bonds of any incorporated city or county or independent school district in this State. Such corporations may own only such real estate as is required for the transaction of their business, and such as is acquired in the collection of debts; but the latter may not be retained more than five years. Stockholders