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samples of those used by a number of different companies. This plan made impossible the following out of one complete system of forms and records such as a single company uses, a defect which is, in the writer's opinion, more than overcome by the advantage to the reader of having before him illustrations of the methods of a large number of progressive companies. In the endeavor to make the work useful to the greatest number of trust companies, the writer has aimed to have it representative of the forms and methods of the company. of average size.
While the writer is alone responsible for all views and statements presented, he is under obligation to various gentlemen for information courteously given. In particular he wishes to acknowledge his indebtedness to the officials of the various companies whose forms are used to illustrate the book, for the use of the forms and for information given in response to letters; to state officials for information regarding state legislation; to W. E. Crittenden for the preparation of the chapter on Title Insurance; to the Old Colony Trust Company of Boston for permission to reprint its Rules for Stock Transfers; to E. A. Feasel, Librarian of the Cleveland Law Library, for access to the library in the preparation of the chapters on trust company laws; to E. E. Newman for suggestions regarding the detail work of the Corporations division of the Trust Department; to James Borrowman for information regarding the Australian trust companies; to Frederick Vierling for information regarding the Real Estate Department and for permission to print his rules governing stock issues and papers required in accepting bond trusts; to the Franklin Trust Company for permission to print its By-laws. Acknowledgment is made in foot-notes throughout the book for information due to various authorities quoted.
In preparing the articles for publication in book form, the statistical matter in the chapter on the history of the trust company movement, and the summary of the state laws (originally published in 1904), and other matter, have been brought down to the year 1908, inclusive.
CLEVELAND, O., June, 1909.
TABLE OF CONTENTS.
HISTORY OF THE TRUST COMPANY MOVEMENT IN THE
Diversity of Functions, 1-First Grants of Trust Powers, 2-Present
Condition of the Four Earliest Companies, 6-Other Early Companies,
7-Relative Progress of Trust Companies and Savings Banks, 9-
Organization of Companies After the Civil War, 10-Freedman's Sav-
ings and Trust Co., 12-Comptroller Knox's Criticism of Companies,
13-Competition Between Banks and Trust Companies, 14-Steady
Development, 15-Growth from 1875, 16-Chart Showing Growth, 18
-Growth of Trust Companies and Other Banks Compared, 19—Sta-
tistics of Suspensions, 22-Statistics 1875-1908, 25-Reserves, 26—
Present Statistics, 28-Recapitulation, 30-Causes of Growth, 31.
THE FUNCTIONS OF TRUST COMPANIES, pp. 33-53.
Definition of "Trust Company," 33-Nature and Variety of Individual
Trusts, 34-Probate Business, 37-Investment Business, 38-Real
Estate Business, 40-Insolvency Business, 40.-Trustee or Agent for
Corporations, 41-Transfer Agent and Registrar, 42-Corporation
Reorganization, 43-Fidelity and Title Insurance, 44-Safe Deposit
Business, 45-Superiority of Trust Companies in Trust Capacities,
45-Banks and Trust Companies Compared, 47-Miscellaneous Func-
tions, 51-Sources of Earning Power, 52-Still in Formative Pe-
THE ORGANIZATION OF TRUST COMPANIES, pp. 54-73.
Elements Contributing to Success, 54-Preliminary Steps, 55-Incor-
poration in New York, 55-By-laws, 58-Selection of Directors, 66-
TRUST COMPANY LEGISLATION, pp. 74-89.
Progress of Legislation, 74-Directors, 75-Capital Stock, 75-Pow-
ers, 76-Powers in New York, 77-Trustee Powers, 79-Holdings of
Real Estate, 80-Auxiliary Powers, 81-Banking Powers, 81-Reg-
ulation, 83-Double Liability, 85-Deposit with State, 85-Restric-
tions on Loans, 86-Reserves, 86-Reports and Examinations, 88.
Alabama, 90-Arizona, 91-Arkansas, 91---California, 92 – Colorado,
ida, 98-Georgia, 98-Hawaii, 99-Idaho, 100-Illinois, 102-Indi-
ana, 103 Iowa, 104-Kansas, 105-Kentucky, 106-Louisiana, 107-
Maine, 109-Maryland, 111-Massachusetts, 111-Michigan, 115-
Minnesota, 116-Mississippi, 117-Missouri, 119-Montana, 120-
Nebraska, 122-Nevada, 122-New Hampshire, 122-New Jersey,
128-New Mexico, 126-New York, 128-North Carolina, 133-North
Dakota, 134-Ohio, 136-Oklahoma, 138-Oregon, 141-Pennsyl-
vania, 142-Rhode Island, 144-South Carolina, 146-South Dakota,
146-Tennessee, 148-Texas, 149-Utah, 151-Vermont, 152-Vir-
ginia, 154-Washington, 155-West Virginia, 157-Wisconsin, 159
ORGANIZATION OF THE WORKING FORCE, pp. 162-171.
Diversity in Organizations, 162-Duties of the Various Officers, 162-
Managing Officer, 163-Chart of Working Force, 164-Duties of
Various Officers and Employees Banking Department, 165-Work of
the Trust Department, 168-Real Estate Department, 170-Safe
Deposit Department, 170-Bond Department, 170-Advertising De-
Accounting System, 172-Loose-leaf Books and Cards, 173-Relation
of Trust and General Books, 174-Trust Register, 175-Journals and
Ledgers, 182-Corporations Division of Department, 185-Estates
Division of Department, 190-Sundry Forms Corporations Division,
199-Forms for Transfer of Stock, 203-Forms for Bond Trusts, 209
-Coupons, 215-Sundry Forms Estates Division, 220-Record of
Securities, 220--Real Estate Record, 224-Insurance Record, 225-
Rents, 226-Tax-book, 227-Vouchers, 229-Statements of Account,
FORMS AND RECORDS FOR THE SAFE DEPOSIT DEPART-
Identifying Customers, 234-Appointment of Deputies, 236-Joint
Tenants, 237-Renting to Corporations, 238-Cash Records, 240-
Ledgers, 240-Visitors' Register, 243-The Storage Department, 244
FORMS AND RECORDS FOR THE BANKING DEPARTMENT,
Progress, 249-Labor Saving, 249-Forms for Use of Customers, 250
-Pass-books, 252-Voucher checks, 255-Tellers' Records, 260-
Proofs, 260-The Individual Books, 265-Boston Ledger, 267-Short
Cuts, 273-Interest on Balances, 276-Statements of Account, 280-
Stop-payments, 282-The General Books, 283-Boston Ledger for
General Accounts, 289-The Loan Department, 292-Loan Ledgers..
297-Collateral Loans, 298-Mortgage Loans, 303-Miscellaneous
Loan Forms, 312-Bills Discounted, 317-Investment Records, 321—
Clearing Checks, 324-Collections, 325-Letters of Remittance, 326-
Official Checks, 327-Drafts on Banks, 330-Certificates of Deposit,
330-Certified Checks, 332-Record of Expenses, 334-Records of
FORMS AND RECORDS FOR THE SAVINGS DEPARTMENT, pp.
Opening an account, 340-Signature cards and identification, 341-
Joint accounts, 342-Society and corporation accounts, 343-Chang-
ing accounts, 344-Pass-books, 344-Deposit slips, 345-Withdrawals
and checks, 345-Notices of withdrawal, 347-Journals, 348-Proof
of postings, 349-Ledgers, 350-Card ledgers, 351-Daily trial bal-
FORMS AND RECORDS FOR THE REAL ESTATE DEPART-
Work of the department, 356-Equipment, 358-Listing and indexing
properties, owners and tenants, 359-Report and memorandum of sale,
362-Renting property, 363-Receipts for rent, 364-Statement of
rents, 366-Tickler, 366-Methods of accounting, 366-Rent books,
THE TITLE INSURANCE DEPARTMENT, pp. 369-378.
Character of the business, 369-Equipment, 370-Application for
title insurance, 371-Form of the policy, 372-Conditions of the
policy, 373-Insuring an assignee, 375-Extension of policy, 370
Release of claim, 377-Policy register, 377-Value of title insurance,
METHODS OF INCREASING BUSINESS, pp. 379-394.
Reasons Why a Trust Company Should Advertise, 379-Kinds of Ad-
vertising, 380-Management, 380-Planning a Campaign, 382-Me-
diums, 383-Newspapers, 383-Circulars and Booklets, 384-Letters,
385-Other Mediums, 386-Personal Efforts, 387-Audits and Ex-
aminations, 388-Treatment of Customers, 388-Increasing Trust Bus-
iness, 389-Preparation of Advertising Copy, 392-Typographical
The Parties Interested, 395-Accounting and Administration, 395-
Purposes of Audits, 396-Examinations by State Officials, Commit-
tees of Directors, Stockholders, etc., 397-The Audit Department, 399
-Selection and Treatment of Employees, 400-Qualifications of Em-
Fees, Problem of Determining, 405-Fees as Executor, etc., 406—As
Assignee and Receiver, 407-As Trustee Under Bond Issue, 407-As
Transfer Agent, 408-Foreign Exchange, 408-Time and Labor Sav-
ing Devices, 408-Branch Banking, 409-Offices and Buildings, 410-
THE DUTIES AND LIABILITIES OF TRUST COMPANIES
Transfer Agent, Duties of, 413-Liabilities, 415-Liabilities of a Cor-
poration Acting as Its Own Transfer Agent, 416-Responsibility of
Separate Transfer Agent, 418-Methods of Safeguarding the Trans-
fer Agent, 421-Rules for Stock Transfers, 422-Duties and Liabili-
ties of the Registrar, 425-Trustee Under Bond Issues, 428-Condi-
tions in Trust Deed, 429-Papers Required in Assuming Trust, 433—
The Payment of Coupons, 436-Escrows, 437-Depositary Under
Plans of Reorganization, 437-Executor or Administrator, 438—Trus-
tee, 440-Guardian, Conservator, etc., 441-The Investment of Trust
Germs of the Idea in India and South Africa, 444-The Australian
Trustee Company, 444-Statistics of Australian Companies, 446-
Powers, 447-The New Zealand Public Trust Office, 449-Canadian
Trust Companies, 451-Cuba, Mexico, 453-Argentine Republic, 454
-Japan, 454-England and Scotland, 455-European Countries, 456.
Books and Pamphlets Relating Directly to Trust Companies, 457-
Proceedings, Reports and Periodicals, 458-Articles in Periodicals, 460