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The Eastern Trust Company, Halifax. (Branch at St. John, N. B.) The London and Western Trust Company, London.

The Montreal Trust and Deposit Company, Montreal. (Branch at Halifax.)

The Royal Trust Company, Montreal.

The British-American Trust Company, Vancouver. (Branches at Grand Forks, B. C., Victoria, B. C., Winnipeg; Agency at Spokane, Wash.)

The Western Trust Company, Winnipeg.

The Standard Trusts Company, Winnipeg.

OTHER COUNTRIES.

Outside of the United States, Australia and Canada there are no countries in which the trust company has made enough progress to be considered an established institution. Within the past ten years, however, beginnings have been made which indicate the probability that the trust company movement, in somewhat varying forms, will soon have a firm foothold in a number of foreign countries.

Prior to its admission as a territory of the United States, the trust company had been established in Hawaii, and there are now four such corporations in the Islands, all located at Honolulu―The Hawaiian Trust Company, organized in 1898; The First American Savings and Trust Company; The Henry Waterhouse Trust Company and The Bishop Trust Company. The trust functions exercised by these companies include all the ordinary trust powers, and the right "To transact as agents any other business or undertaking, trust, mercantile or otherwise, which may be necessary, useful or convenient to the main purpose of the corporation." They handle as general agents all kinds of insurance. They have not banking powers, the statute specifically prohibiting the transaction of both a general banking and a savings banking business.

There are trust companies operating in Porto Rico, devoted specially to developing the resources of the island. An American company has been formed, with headquarters at Pittsburg, to operate in the Philippines.

In Cuba a beginning was made by the establishment in January, 1906, of The Trust Company of Cuba, located at Havana. It has a paid-up capital of $500,000, and in June, 1907, had surplus and undivided profits of $31,691, and deposits of $323,872. It is closely patterned after the trust companies of the United States, maintaining banking, savings, trust and real estate departments. The laws do not permit the company to act as executor, but an executor may appoint it to act for him. There is a considerable field for the company in the management of property owned by parties who reside in Spain, a large amount of property in Havana being so held.

In Mexico there have been started several enterprises under the name of trust companies which were organized for speculative purposes by Americans, usually as branches of concerns in the United States, which

have gone out of existence. Effort has been made to obtain general legislation providing for the organization of trust companies, but thus far without success. The only existing trust company incorporated under the laws of the Republic of Mexico is The Mexican Trust Company (Compania Fideicomisaria Mexicana) of Mexico City, which has a capital of $250.000 ($125,000 United States money), and which includes in its directorate a number of prominent Mexicans. The powers conferred by its charter are exceedingly wide, including the right to do a banking business, to perform all the ordinary trust functions, "To promote the incorporation of all kinds of companies in the form it may deem fit, and to deal in their stocks; to buy and sell securities of all kinds; to buy and sell mines and to work them on its own account; *** to hold, acquire, transfer or lease concessions granted by the National Government for the exploitation of all kinds of natural products as well as for those which have an industrial object; * * * and in general all such business as the company's board of directors may determine." Plans are on foot for the establishment of other companies, presumably along the same lines.

In October, 1905, a company known as the Banco Fomento Industrial Americano was organized at Buenos Ayres, Argentine Republic, with an authorized capital of $5,000,000--of which at last advices, however, only a small part was paid up. The company numbers among its directors several of the prominent men of Buenos Ayres, which is a progressive city of over 1,100,000 people. It has as its avowed object "The development and enlargement of the established industries in the country or out of it and the introduction of new ones that it is thought advisable and opportune to establish and all the operations that the North American trust companies carry on." The powers granted are very wide, including some of a speculative nature, in addition to the more conservative powers of the trust company as we know it.

Japan entered into the field in 1902 by the establishment under Government auspices, after an official investigation of the trust companies of the United States, of The Industrial Bank of Japan, Ltd. (Nippon Kogyo Ginko). It had an authorized capital of 10,000,000 yen, which was increased to 17,500,000 yen in 1906, and of this at last advices 13,750,000 yen were paid up. The company is fostered by the Japanese Government, which guarantees dividends of 5 per cent. for the first five years. Some of the shares have been placed in England and in the United States, and the stock sells at a good premium. In its first year the company successfully floated in London an issue of 50,000,000 yen of national bonds, a task entrusted to it by the Government. The powers of the company have been considerably enlarged since its organization, and it now advertises its lines of business as follows:

1. Loans on the security of national or local loan bonds, or debentures and shares of companies.

2. Subscriptions for or taking over by transference, national or local loan bonds, or the debentures of companies.

3. General deposit and safe deposit business.

4. Business of a trust company.

5. Discounts of bills on security of national or local loan bonds, or debentures and shares of companies.

6. Loans on mortgage of railway, factory and mine.

7. Banking and attendant business in foreign countries.

The by-laws of the company define its trust business as follows: "Article 39. The trust business to be undertaken by this bank shall be in general as follows:

1. To be intrusted with the administration, settlement, etc., concerning money, securities, movable and immovable properties and other properties.

2. To deal in matters relating to public loans, and the loans and shares of companies; such as issuing bonds or debentures, paying principal, interest, profit, etc.

3. To deal in matters relating to mortgaging debentures or to giving guarantees on behalf of debtors."

ENGLAND AND SCOTLAND.

Notwithstanding the fact that since the year 1886 repeated efforts have been made to establish the idea of the corporate trustee in Great Britain, the progress of the movement has been exceedingly slow. Two very formidable obstacles are yet to be overcome the excessive conservatism of the people, which results in a decided lack of interest in the movement, and numerous legal restrictions which confine corporate undertakings of this kind within very narrow limits. Yet the shortcomings of the individual acting in fiduciary capacities are quite generally appreciated, and a number of plans designed to remedy the conditions have been proposed in Parliament. One of these was the Judicial Trustees Act of 1896, which after over ten years has failed to interest the public and does not solve the problem. On January 1, 1908, however, The Public Trustee Office, authorized by The Public Trustee Act of 1907, began business in London, and is meeting with success.

On the whole, the trust company movement in Great Britain is making progress, at least eight corporations being at present engaged in trying to build up this kind of business. Of these the earliest was The Public Trustee, Limited, of Edinburg, which was established in 1886. This company is strictly limited to the undertaking of trusts. In 1887 was established the Trustees, Executors and Securities Insurance Corporation, Ltd., and in 1888 the Law Guarantee and Trust Society, Ltd., both located in London. The latter has some eight or ten branches scattered over England and Scotland, maintains a trust department, writes fidelity insurance and guarantees the payment of debentures and mortgages.

The insurance companies have begun to give their attention to the possibilities of the trust business, the Ocean Accident and Guarantee Corporation of London having taken on trust powers in the early nineties,

while more recently the Royal Exchange Assurance Company of Liverpool, the Commercial Union Assurance Company of London, and some others, have entered the field. There is evidence, too, that the banks may undertake the transaction of formal trust business, The Union of London and Smith's having already done so.

EUROPEAN COUNTRIES.

The trust company idea cannot be said to have gained a foothold as yet in any company in continental Europe. The nearest approach to it is in Germany, where there are some companies of very recent origin which undertake certain trust company functions with regard to the handling of corporations. These have been organized by several of the large banking interests as auxiliary institutions. The first, and for some time the only one of these, The Deutsche Treuhand Gesellschaft of Berlin, was organized in 1890 by the Deutsche Bank and the banking-house of Jacob Stern at Frankfort-on-Main. Its business consists chiefly of corporate trust work the formation and reorganization of joint-stock companies, dealing in their shares, acting as agent for the redemption of dividend warrants, transfer agents, etc.

The mortgage banks of Germany and Austria, the Credit Foncier, Credit Lyonnais and other companies in France, and similar institutions in some other European countries, perform functions analogous to the lending and savings banking operations of the American trust company, but these are not peculiarly trust functions, and the institutions named do not partake of the distinctive features of the trust company.

96

96 See Proceedings Trust Company Section, A. B. A. 1896-1903, pp. 243-253, article by Charles F. Phillips on "The Business in Foreign Countries Analogous to That of Trust Companies in the United States."

BIBLIOGRAPHY.

BOOKS AND PAMPHLETS RELATING DIRECTLY TO TRUST COMPANIES.

COMPARATIVE STATEMENTS OF TRUST COMPANIES IN THE STATE OF NEW YORK, 1894-1904. New York: George W. Young & Co., 1905. pp 81. DIGEST OF LAWS RELATING TO TRUST COMPANIES OF THE UNITED STATES. New York: George W. Young & Co., 1905. pp 98.

A classified digest of State laws relating to trust companies. MODERN TRUST COMPANY, THE. F. B. Kirkbride and J. E. Sterrett. New York: The MacMillan Co., 1905. pp 309.,

Up to the present this is the only general work on the subject published. Contains discussions of functions, methods of organization, duties of officers and employees, methods of accounting, departments of work, Stock Exchange rules, bibliography. Illustrated with forms.

PENNSYLVANIA COMPANY FOR INSURANCE ON LIVES AND GRANTING ANNUITIES, A SKETCH OF THE. Philadelphia: J. B. Lippincott Co., 1896. pp 168.

An historical and descriptive sketch of the oldest company in the United States now doing a trust business.

TRUST COMPANIES IN THE UNITED STATES. George Cator. Baltimore: The Johns Hopkins Press, 1902. pp 113.

One of the Johns Hopkins University Studies, and intended to give "a general outline of the subject". Contains historical sketches, discussions of functions, causes of development, State regulation, schedules of State laws.

TRUST COMPANIES OF THE UNITED STATES. New York: Published annually (since 1903) by The United States Mortgage and Trust Co.

Contains individual statistics of trust companies in the United States, Canada and Cuba. Gives for each company the statement of assets and liabilities, date of organization, quotations of stock, dividends, list of officers and directors.

TRUST COMPANY IDEA AND ITS DEVELOPMENT, THE. Ernest Heaton. Buffalo: The White-Evans-Penfold Co., 1904. pp 45.

Discusses the growth of the trust company idea, advantages and functions of trust companies, sketches of the progress of trust companies in the United States, Canada, Australia and other countries. TRUST COMPANY QUESTION, THE. Breckenridge Jones. St. Louis: The Mississippi Valley Trust Co., 1892. pp 24.

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