of the State, together with evidence of publication and service of notice before described.

"If such certificate is in due form and duly executed according to law, and is accompanied by evidence satisfactory to the superintendent of the proper publication and service in good faith of such notice, he shall forthwith indorse the same over his official signature, Filed for examination,' with the date of such indorsement.

4. Publication.

"When the certificate shall have been filed, the superintendent shall ascertain from the best sources of information at his command (1) whether the general 5. Examination as to fitness for the discharge of the duties apperfitness. taining to such a trust of the persons named in the certificate is such as to command the confidence of the community in which such trust company is proposed to be located, and (2) whether the public convenience and advantage would be promoted by such an establishment."

6. Authori

Further, "The Superintendent of Banks shall, before issuing the certificate of authorization to any corporation, examine or cause an examination to be made in zation to be- order to ascertain whether the requisite capital gin business. of such corporation has been paid in cash; and if it appears from such examination that such capital has not been fully paid in cash, the certificate of authorization shall not be granted and no such corporation shall commence business until such certificate of authorization has been granted. If so satisfied, he shall, within sixty days after such certificate has been filed with him for examination, issue under his own official seal the certificate of authorization required; . . . . which certificate so issued by him shall authorize the persons named therein to become a trust company as designated in the organization certificate."

When the certificate of authorization is given by the Superintendent of Banks, the persons named and their

7. Trust powers

successors become a corporation, and in addition to the general powers granted to corporations within the State, have the following powers: (1) To be appointed and accept appointment of executor or of trustee granted. under the last will and testament, for administrator with or without will, in case of the estate of any deceased person, and to be appointed and to act as trustee of the estates of lunatics, idiots, persons of unsound mind, and habitual drunkards. (2) To take and execute any and all such trusts and powers of whatsoever nature or description as may be conferred upon or entrusted or committed to it by any person or persons, or any body, political corporation, or other authority, by grant, assignment, transfer, devise, bequest, or otherwise, or which may be entrusted to it 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. (3) To take, accept, and execute any and all such legal trusts, duties, and powers in record, and the holding, management, and disposition of any estate, real or personal, and the rents and profits thereof, for 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 and interests for the faithful discharge of every such trust, duty, or power which it may so accept. (4) To act under the order of appointment of any court of record as guardian, receiver, or trustee of the estate of any minor, the annual income from which shall not be less than $100, and as the depository of any moneys paid into court whether for the benefit of any such minor or other person, corporation, or party. (5) To accept trusts from and execute trusts for married women in respect to their separate properties and to be their agent in the management of such property, or to transact any business in relation thereto. (6) To receive deposits of trust moneys,

securities, and other personal property from any person or corporation.

Fiscal powers.

These we may call the general trust powers conferred. In addition, there are what may be styled the special trust powers, growing out of modern methods of corporation finance, and trust service demanded in the organization and management of large business corporations. These are as follows: 1. The power to act as the fiscal or transfer agent of any State, municipality, body politic, or corporation, and in such capacity receive and disburse money and transfer, register, and consign certificates of stock, bonds, or other indebtedness. 2. The power to act as trustee under any mortgage or bond issued by any municipality, body politic, or corporation; and, 3, accept and execute any other municipal or corporate trust not inconsistent with the laws of the State.

Investment powers.

To give effect to these trust powers, and enable the company to manage the funds and properties entrusted to it in such manner as to make and secure and at the same time provide an income to beneficiaries, investment powers are conferred as follows: (1) To loan money on real and personal securities. (2) To purchase, invest in, and sell stock, bills of exchange, bonds, mortgages, and other credits. (3) When moneys or securities are borrowed, or received on deposit or for investment, the bonds and obligations of the company may be given therefor. (4) 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 the satisfaction or personal satisfaction of debts due the corporation under sales, judgments, or mortgages, or in settlement or in partial settlement of debts due the corporation by any of its debtors.

With these authorizations and grants of powers, the trust company, after equipping itself with officers and agents for the safe conduct of its affairs, is ready for business.

The growth

trust com

panies.

them.

The first trust companies organized did not have their powers so broadly or distinctly defined, nor did they need Before the development of modern of business of methods of corporate finance, before the growth of the present complex organization of business, only the general trust relations were prominent. Insurance companies were the first to undertake the administration of trusts in lieu of personal trustees. Gradually, however, as trust relations became more highly developed and more frequent, the business of holding and executing trusts came to be specialized. Within the last twenty-five years trust relations and trust companies have been multiplied. The vast expansion of corporate methods of business, the advantages offered by the trust company in the service of business institutions for the registration and transfer of stocks and bonds, the practise of holding trust deeds and mortgage securities for bondholders, of receiving assignments of property for the benefit of prospective corporations which are in the hands of promoters, and for the purposes of reorganization and for the execution of voting trusts, besides the many services which they are able to render as funding agencies, fiscal and transfer agents for public as well as private corporations, in the underwriting and disposition of stocks and bonds and the disposition of moneys, the demand for such services has directed large investment capital and the best financial ability to the trust company.

Double investment relations.

As investment agents, the trust company acts in a double capacity. In the first place, it acts as trustee for its beneficiaries; in the second place, it has a large cash capital of its own. The inducement to the investment of money in the stock of the trust company-in making subscriptions to its capital stock-is apparent. The character of business judgment and of business enterprise necessary to the successful management of trust estates is the same as that required for the con

servative investment of the funds of its managers. Capital, therefore, that is seeking first-class securities and investments would be attracted to the stock of such an institution. To return to the concrete: Let us suppose that A had $500,000 of investment funds of his own. The same considerations that would lead men with capital to invest it in the stock of a trust company would induce them as managers of the company to receive deposits from those who had funds to invest, but who were willing to take a relatively small income and be relieved of the risk and trouble of management. By offering 3 per cent for time deposits the trust company has exchanged its own credit obligation for funds deposited; by virtue of its better facilities for safe investment, the company is enabled to so invest these funds that they may yield from 4 to 5 per cent. This on a large line of deposit would also give them a handsome profit.