Alabama Arizona Arkansas California Colorado Delaware Florida Georgia Idaho Indiana Iowa Kansas Kentucky Louisiana Maryland 15%, 2-5 cash. 15%, 2-5 cash. 15%, "part" in cash; 20%, if a reserve bank. 15% commercial deposits, 2-5 cash, and 4% savings deposits, 1/2 cash; if a reserve bank, 20% commercial deposits instead of 15%. 20% commercial deposits and 15% savings deposits, 1-5 cash; a reserve bank, 25% of deposits. 15%, 4-15 cash. 10% in towns of less than 50,000 population; 15% elsewhere; 1-3 cash. 20%, 2-5 cash. 25% demand deposits. 15%, 2-5 cash. 15% demand deposits, in cash or on deposit. 15% commercial deposits and 8 per cent. savings deposits if in towns of less than 3,000 population; elsewhere, 20% and 8%, respectively; 4 cash. 25% demand deposits and 10% time deposits. 12% demand deposits and 5% time deposits; in reserve cities, 15% and 5%, respectively; 1-3 cash. 25% of demand deposits, 8% cash. 15% demand deposits. 15% demand deposits. Massachusetts 15% demand deposits, 2-5 cash; if in Boston, within three miles 15% demand deposits and 7% time deposits; in cities of over 50,000 population, 25% and 10%, respectively; in cash or on deposit. 15% of demand deposits. 15%. 15%, 1-3 cash. New Hampshire 15% demand deposits. New Jersey 15% demand deposits, 1-5 cash. New Mexico New York 15%, 2-5 cash. 15%, 2-5 cash, if located in a borough of 2,000,000 or more population; 13%, 8-13 cash, if located in a borough of from 1,000,000 to 2,000,000 population, with no office in a larger borough; 10% elsewhere in state; in cities of the first and second class not included above, 4-10 cash; in cities of the third class and smaller places, 3-10 cash. Members of Federal Reserve Banks may keep reserves required of such members. North Carolina 15%, 2-5 cash. Ohio Pennsylvania 15%, 6% of demand deposits and 4% of time deposits in cash. 15% demand deposits: In cities of over 50,000 population, 20%, 15% commercial deposits and 3% savings deposits, 1-3 cash. West Virginia 15% demand deposits, 2-5 cash. 15%. 25%. REPORTS AND EXAMINATIONS. Whatever restrictions are placed upon these corporations by the statutes, such restrictions must evidently be of little avail in the cases of those companies which are inclined to evade the law, unless means be provided of keeping the State officials acquainted with the way in which their business is being conducted. The natural ways of accomplishing this result are by means of frequent reports and of examinations. The value of reports is of course in direct ratio to the honesty and frankness of the officials of the company making such report, and their usefulness therefore becomes slight when made by dishonest officers. It is a matter of common knowledge that reports may be easily "doctored" so as to make an insolvent institution appear very prosperous, and that the last reports published by defunct companies usually indicate a sound condition. But if the requirement of reports be made in connection with frequent examinations which reveal the truthfulness or untruthfulness of the reports, they serve a useful purpose. The laws now require trust companies to furnish reports of some kind in all of the States. The frequency of such reports varies from one to five times per annum; and in the States having the most carefully prepared laws on the subject, special reports may be called for at any time by the State official to whom the reports are made. A number of the States designate the character of the information to be given in the reports, and some of them specify in detail and at some length the exact form required for such reports, the form in a few States requiring a complete list of all investments, and a description of the property held in trust. The completeness of these reports is in striking contrast with the meagreness of those which satisfy the requirements of the law in some of the States, where the provisions on the subject are most unsatisfactory. Most of the States which require reports provide that they must be published in a local newspaper. Trust companies are liable to some sort of an examination by State officials in nearly all of the States; but in a few of these the examinations need not be made periodically, but only at the discretion of an official who very probably has little time or inclination for the work, so that companies may go for years without examination. In all of the States the courts probably have the right to investigate a trust company's handling of trusts committed to them by such courts to the same extent as though the trusts were committed to individuals. This right is specifically mentioned in a majority of the States. A few States also provide that the books of the company shall be open to inspection by persons interested in any trust held by the company: Where periodical examinations are required, their frequency is either once or twice per annum, with special examinations at any time at the discretion of the examining official, except in Texas, which requires an examination every quarter year. The State officials under whose supervision trust companies are placed in the different States vary greatly. Where a State banking department is in existence, the head of that department has supervision of trust companies. In a few States this duty is entrusted to the State Insurance Commissioner. In other States it is exercised by the State Auditor, the State Treasurer, or the Secretary of State. In the District of Columbia the Comptroller of the Currency has supervision of trust companies. In about half of the States trust companies are under practically the same regulations regarding reports, examinations, etc., as the State banks. The principle of State supervision of banks, insurance companies and other financial institutions is pretty thoroughly established in this country, although there are those whose strong objections to "paternalism" in government lead them to look with disfavor upon such supervision. The excellent record of the National banking system certainly affords strong argument for Government supervision of banks. This is perhaps not the place to discuss the general question; but if the principle of supervision is accepted, as in the writer's opinion it ought to be, there is certainly great room for improvement in the laws of most of the States in the regulation and supervision of trust companies. Less than one-half of them can be said to have satisfactory statutes for the control of such institutions. On the other hand, it may be said with much truth that great progress has been made, and that, considering the short time that trust companies have been a factor in the financial world, the progress has been quite remarkable. It took many years to develop our banking systems out of the chaotic conditions of the first half of the nineteenth century. Then, too, the attitude of the trust companies themselves promises much for rapid advancement in legislation regarding them. The great majority of the leading companies welcome the placing of greater safeguards about the business. In a number of instances legislation designed to regulate trust companies has come through the agitation of the subject by the trust companies themselves. Many trust companies in States. where the laws do not require examinations are in the habit of having their business thoroughly examined by expert accountants. IT CHAPTER V. ORGANIZATION OF THE WORKING FORCE. T is difficult to find two trust companies the scope of whose business is exactly the same; and because of this fact, and because these institutions are still in the formative period, the plans under which the working forces of trust companies are organized are nearly as numerous as the companies themselves. There is some variety in the titles given to different officers and employees, and great variety in the duties which such officers and employees are called upon to perform. The average trust company worker, outside of the banking department, is usually called upon to do service of a more varied nature than that of the average bank employee. The organization of the working force depends, in the first instance, upon the character and amount of the company's business. If it is practically a bank operating under the name of a trust company, as is often the case, its working force will be organized in a manner differing little from that of an ordinary bank. Usually in such an institution the commercial banking and the savings banking are conducted in separate departments (a segregation which is required by law in some States), the former being known as the Banking Department, and the latter as the Savings Department,-called in some of the Eastern States the Savings Fund Department. If trust business is undertaken, a Trust Department is maintained for the conduct of such business. If the volume of trust business is considerable, this department is usually separated into two divisions, the Corporate Trust Department, devoted to the handling of trust business for corporations, and the Individual or Estates Trust Department, which looks after the administration of estates and other trust business for individuals. In the largest companies, these departments are sometimes further subdivided, as noted hereafter. Most trust companies conduct a Safe Deposit Department. Other departments often found in the largest companies include the Bond, Foreign Exchange, Real Estate, Advertising or Publicity, Audit, Credit, Statistical, and Legal Departments. The duties of the various officers and employees will be described under the captions of these departments; the reader being reminded that in smaller companies the same officers and employees may look after the work of two or more of the lines of work described. DUTIES OF THE VARIOUS OFFICERS. The titles given trust company officials do not necessarily convey any idea of their duties. Sometimes the President is not an active officer, but devotes to the company's affairs only so much time as is necessary to preside at directors' meetings, serve on certain committees and act in an advisory capacity. The tendency in recent years, however, is towards making the presidency an active office, in which case the President is, of course, the active head of the company. In companies in which the President is not an active officer, the management devolves sometimes upon a Vice-President, sometimes upon the Treasurer, occasionally upon the Secretary, sometimes upon the Secretary and Treasurer. In the West and South, the active head is frequently called the Cashier, as in the case of banks. Where the offices of Secretary and Treasurer are not held by the same man, the duties of the Treasurer are apt to be connected with the Banking Department, and those of the Secretary with the Trust Department; but instances are numerous in which no attention is paid to titles in the assignment of the duties of the different officers. The titles of such officials as the Trust Officer and the Managers of the various departments are, of course, more descriptive of their duties. A newly-organized company is apt to pay more attention to the relationship of titles and duties than an old company, where the different men have grown to their titles, their duties being well established before the titles are given. In recent years there has been a tendency among both banks and trust companies to have a number of active Vice-Presidents, each of whom has special duties not defined by the title. In the largest companies, each of the executive officers is usually in general charge of one or more of the departments. Important matters and the general policy of the departments and of the institution as a whole are usually determined, subject, of course, to the Board of Directors or the Executive Committee, by a committee or committees of the officers. The President, or whatever official is in active charge of the company, is the man who is immediately responsible to the directors, and through them to the stockholders, for the general conduct of the institution. Upon his shoulders rests the general supervision of the affairs of the company; to him the lesser officials report, and under his general direction they administer the business of their several departments. Except in the small companies, matters of detail are not, as a rule, brought to his attention; his strength and time should be reserved for the consideration and determination of general policies and matters of unusual importance. He is, of course, the man upon whom rests the greatest responsibility for the safe and profitable investment of the funds of the company and of the funds which the company holds in trust. Such investments, however, especially those of the trust funds, are not usually made upon his sole responsibility, but are determined by an investment committee, composed of directors and officers, of which committee he is generally the most influential member. Often there are separate investment committees for the general funds and for the trust funds; and in the largest companies one or more officers subordinate to the President are detailed to give special attention to the matter of investments and make recommendations from time to time regarding purchase or sale of investments.. The laws of many of the States prescribe the classes of |