mum capital required is determined by the size of the place in which the company is situated.*

Thus, South Carolina fixes the minimum capital with which trust companies may be formed anywhere in the State at $25,000; Texas, $50,000; Hawaii, $100,000, half paid; California, Georgia, Kansas, Louisiana, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Dakota, Tennessee and West Virginia, $100,000; Ohio, $100,000 or $125,000, according to business done; Pennsylvania, $125,000; Minnesota, $200,000, and the District of Columbia, $1,000,000. The following States have schedules in which the minimum capital requirements range between the figures shown; Alabama, from $25,000 to $100,000; Arkansas, $50,000 to $100,000; Colorado, $50,000 to $250,000; Idaho, $10,000 to $100,000; Indiana, $25,000 to $100,000; Iowa, $10,000 to $50,000; Kentucky, $15,000 to $200,000; Maine, $25,000 to $150,000; Massachusetts, $100,000 to $200,000; Michigan, $150,000 to $300,000; New York, $100,000 to $500,000; North Carolina, $5,000 to $25,000; Oklahoma, $100,000 to $200,000; Oregon, $10,000 to $50,000; South Dakota, $25,000 to $100,000; Utah, $25,000 to $100,000; Washington, $10,000 to $100,000; Wisconsin, $50,000 to $100,000; Wyoming, $10,000 to $100,000. It thus appears that the smallest minimum capital required is in North Carolina, where, in towns of 1500 or less population, companies may be formed with a capital of $5,000; while the largest minimum is that of the District of Columbia, $1,000,000. It should be added that the minima above given usually apply only to companies which actually undertake a trust business; the minimum often being smaller if the company does only a banking business.

Most of the States do not place any maximum limit to the capital allowed, but a few do. The maximum limit is $1,000,000 in Kansas; $2,000,000 in Georgia, Indiana, Minnesota, and Pennsylvania; $5,000,000 in West Virginia, and $10,000,000 in Missouri, Montana and Texas.

POWERS AND CAPACITIES OF TRUST COMPANIES.

The powers, or capacities in which trust companies may act, are much the same in different States and Territories having general trust company laws, save in the extent to which a regular banking business may be conducted. Such companies possess, of course, the powers generally granted to all corporations. The special powers are usually enumerated in detail; and in those cases where they are not so enumerated there is usually a provision authorizing them to undertake “any lawful trusts" and to conduct all "such business as is usually carried on by such companies."

There is evidence that the trust company laws of the State of New York have been taken as a guide in the construction of trust company laws in many of the other States. This resulted, no doubt, both from the

Details of these schedules, as well as of other matters here mentioned, are given in Chapter V.

fact that New York has long been the financial centre of the country, and because it was early in the field with a general trust company law, such a law having been passed in 1887. The fact that New York's laws have for many years served as guides in many lines of legislation other than financial must also have had its influence.

It will be useful to know in detail the provisions of the New York laws regarding the powers of trust companies, and the sections of the statutes giving these powers are therefore presented in full:

POWERS OF TRUST COMPANIES IN NEW YORK.

(As amended by Chapter 194, Acts of 1908.)

Section 156. Powers of Corporation.-Upon the filing of any such certificate of authorization of a trust company, the persons named therein and their successors shall thereupon and thereby become a corporation, and in addition to the powers conferred by the general corporation law and the stock corporation. law, shall have power:

1. To act as the fiscal or transfer agent of any state, municipality, body politic or corporation; and in such capacity to receive and disburse money, to transfer, register and countersign certificates of stock, bonds or other evidences of indebtedness, and to act as agent of any corporation, foreign or domestic, for any lawful purpose.

2. To receive deposits of trust moneys, securities and other personal property from any person or corporation, and to loan money on real or personal securities.

3. To lease, hold, purchase and convey any and all real property necessary in the transaction of its business, or which the purposes of the corporation may require, or which it shall acquire in satisfaction or partial satisfaction of debts due the corporation under sales, judgments or mortgages, or in settlement or partial settlement of debts due the corporation by any of its debtors.

4. To act as trustee under any mortgage or bonds issued by any municipality, body politic or corporation, and accept and execute any other municipal or corporate trust not inconsistent with the laws of this state.

5. To accept trusts from and execute trusts for married women, in respect to their separate property, and to be their agent in the management of such property, or to transact any business in relation thereto.

6. To act under the order or appointment of any court of record as guardian, receiver or trustee of the estate of any minor, and as depositary of any moneys paid into court, whether for the benefit of any such minor or other person, corporation or party.

7. To take, accept and execute any and all such legal trusts, duties and powers in regard to the holding, management and disposition of any estate, real or personal, and the rents and profits thereof, or the sale thereof, as may be granted or confided to it by any court of record, or by any person, corporation, municipality, or other authority; and it shall be accountable to all parties in interest for the faithful discharge of every such trust, duty or power which it may so accept.

8. To take, accept and execute any and all trusts and powers of whatsoever nature or description as may be conferred upon or intrusted or committed to it by any person or persons, or any body politic, corporation or other authority, by grant, assignment, transfer, devise, bequest or otherwise, or which may be intrusted or committed or transferred to it or vested in it by order of any court of record, or any surrogate, and to receive and take and hold any property or estate, real or personal, which may be the subject of any such trust.

9. To purchase, invest in and sell stocks, bills of exchange, bonds and mortgages and other securities; and when moneys or securities for moneys are borrowed or received on deposit, or for investment, the bonds or obligations of the company may be given therefor, but it shall have no right to issue bills to circulate as money.

10. To be appointed and to accept the appointment of executor of or trustee under the last will and testament, or administrator with or without the will! annexed, of the estate of any deceased person, and to be appointed and to act as the committee of the estates of lunatics, idiots, persons of unsound mind and habitual drunkards.

11. To exercise the powers and possess the privileges conferred on banks. and individual bankers by sections fifty-five and fifty-six of this chapter, subject to the restrictions contained in said sections. No such corporation shall have any right or power to make any contract, or to accept or to execute any trust whatever, which it would not be lawful for any individual to make, accept or execute.. No loan exceeding in amount one-tenth of its capital stock shall be made by any such corporation (directly or indirectly), to any director or officer thereof, and no loan to such director or officer shall be made without the consent of a majority of the directors. No such corporation shall transact its ordinary business by branch office in any city not named in its certificate of incorporation or charter as the place where its business is to be transacted. No trust company shall open a branch office without first having obtained the written approval of the superintendent of banks to the opening of such branch office, which written approval may be given or withheld in his discretion, and shall not be given by him until he has ascertained to his satisfaction that the public convenience and advantage will be promoted by the opening of such branch office; and, provided further,. that no trust company in this state, or any officer or director thereof, shall open. or maintain a branch office, unless the capital of such trust company actually paid in cash shall exceed the amount required by the law under which it was. incorporated by the sum of one hundred thousand dollars for each branch office so opened or maintained. Every trust company and every such officer or director opening a branch office without such written approval shall forfeit to the people of the state the sum of one thousand dollars for every week during which any branch office shall be maintained without such written approval. No foreign corporation shall have or exercise in this state the power to receive deposits of trust moneys, securities and other personal property from any person or corporation, or any of the powers specified in sub-divisions one, four, five, six, seven, eight, ten and eleven of this section, nor have or maintain an office in this state for the transaction of, or transact directly or indirectly, any such or similar business.

Section 157. When any such corporation is appointed executor in any last will or testament, the court or officer authorized to grant letters testamentary in this state shall, upon the proper application, grant letters testamentary thereon to such corporation. When application is made to any court or officer having authority to grant letters of administration with the will annexed upon the estate of any deceased person, and there is no person entitled to such letters who is qualified, competent, willing and able to accept such administration, such court or officer may, at the request of any party interested in the estate, grant such letters of administration with the will annexed, to any such corporation. Any court or officer having authority to grant letters of guardianship of any infant, may, upon the same application as is required by law for the appointment of a guardian of such infant, appoint any such corporation as guardian of the estate of such infant. Any court having jurisdiction to appoint a trustee. guardian, receiver or committee of the estate of a lunatic, idiot, or habitual drunkard, or to make any fiduciary appointment. may appoint any such corporation to be such, trustee, guardian, receiver or committee, or to act in any other fiduciary capacity. All moneys brought into court by order or judgment of any court of record may be deposited with any such corporation, that has been designated by the comptroller of the state of New York, as provided by the code of civil proceedure.

By amendments passed in 1898 and 1901, certain trust companies may add to the above powers those of safe deposit, title insurance and credit guaranty.

It will be seen that the powers here granted are very wide. Those fiduciary powers that are not specifically granted are conceded by the

general power to accept appointment to act in "any other fiduciary capacity," so that in the State of New York a trust company may act in any fiduciary capacity in which a natural person may act. The same broad powers are given to trust companies in most of the other States having general trust company laws, and are included in the special charters in most of the States creating such companies by special acts. The banking powers granted in New York are exceptional, however, and are granted in less than half of the other States; but by very liberal construction of the statutes trust companies frequently transact substantially a banking business in States where the statutes do not specify such powers.

Of the powers usually granted to trust companies by the State laws, some may properly be looked upon as essential or natural to a "trust" or "trustee" company, while others are manifestly auxiliary to its essential powers. In the former group would be included powers to act as trustee for any purpose, as executor, administrator, guardian, agent, etc. Other powers, such as banking, savings banking, safe deposit, fidelity and title insurance, etc., more or less closely allied to the business of the typical trust company, may be classed as auxiliary powers.

That the legislators have taken some such view of the case is evident from a study of the powers granted. Both in the States having general trust company laws and in those which charter trust companies by special act of the Legislature, there is practical unanimity in the granting of the powers included in the first group, while those in the second group, with the exception of safe deposit, are not so generally given.

It is beyond the scope of the present inquiry to attempt to discuss the powers impliedly given to trust companies by the various statutes, or to assemble the decisions of the courts regarding the extent of such powers. But it will be useful to compare, briefly, the powers explicitly given to these companies by the States having general trust company laws.

As already suggested, the greatest unanimity appears in the granting of powers to act as trustee, as executor and administrator, as guardian, as agent, etc.

The power to act as executor and administrator is specifically granted in all of the thirty-seven States named, except Kansas, Maine, Oregon and Wyoming. In Kansas it would seem to be impliedly granted by the wide general powers conferred. Wyoming permits the acceptance of "any trust in writing." Maine presents an interesting case. In this State trust companies may act as executor; but are expressly forbidden to act as administrator or as guardian, even if their special charters specifically grant such powers. The Oregon statutes do not enumerate the powers of trust companies.

The power to act as guardian of minors, persons non compos mentis, etc., is specifically granted in all of the thirty-seven States named except Maine, Oregon and Wyoming. The guardianship of minors usually, and

of other persons always, applies to the estate only. In most States the power named is to act "as guardian of the estates," etc.; in some, it is the indefinite power to "act as guardian." California, Illinois, Louisiana, Massachusetts, Ohio and Tennessee specifically state that the guardianship of minors shall be of the estate only, and not of the person. On the other hand, power to act as guardian of both the estate and the person of minors is specifically given in Arkansas, Indiana, Kansas, Minnesota and Montana. In the District of Columbia, trust companies may act as guardian of the estate of a minor only with the consent of the guardian of the person. The limitation formerly specified in the New York statutes, providing that trust companies may act as guardian of the estates of minors, the income of which is one hundred dollars per annum or more, is also found in the statutes of Colorado and Georgia.

Sixteen of the States and Territories specifically grant the power to accept and execute trusts for married women with respect to their separate estates.

A power always included is that to act as trustee for various purposes. It is usually stated that the company may act as trustee for individuals, for corporations both public and private, for municipalities and States. The power to act as fiscal agent and as registrar and transfer agent is as a rule specifically given, as are also the powers to act as depositary of funds paid into court and of funds under the care of executors, administrators, guardians, etc.; to manage estates; to receive trusts from courts; to hold deposits of trust moneys; to act as receiver or assignee; to act as agent for the investment of money; to make loans on real or personal property; to deal in bonds, stocks and securities.

REGULATIONS REGARDING THE HOLDING OF REAL ESTATE.

The regulations regarding the holding of real estate by trust companies are usually somewhat more liberal than those which govern the real estate holdings of National banks, but a few States, notably Louisiana and Michigan, make provisions almost identical with those of the National Banking Act. Most of the States grant the power to hold such real estate as is necessary for the transaction of the company's business, and such as it may acquire in settlement or partial settlement of debts due to it. While the intent usually appears to be to limit the holdings much as those of National banks are limited, the language is often such as to permit of a liberal construction. As an example of statutes permitting such liberal construction, that of New Jersey reads as follows: "To lease, hold, purchase and convey any and all real estate necessary for or convenient in the transaction of its business, or which the purposes of the corporation may require, or which it shall acquire in satisfaction or partial satisfaction of debts due the corporation under sales, judgments or mortgages, or in settlement or partial settlement of debts due the corporation by any of its debtors."