Pediment of Cleveland Trust Company The staff-head illustration which appears on the title page of this issue of TRUST COMPANIES is reproduced from the beautiful and characteristic pediment group, executed by the late Karl Bitter, which is a feature of the Cleveland Trust Company Building. The design typifies the guardianship and protection of wealth. Mr. Bitter describes the sculpture in his own words as follows: "It has for its subject the allegorization of the main springs of wealth. As these are found in two ancient conceptions of 'Land' and 'Water' so is the composition divided, giving one-half of the pediment to 'Land,' the other to 'Water,' while the center is occupied by a group typifying the interchange of resources and the accumulation of wealth, i. e., the banking business. The composition is further subdivided so that three figures treat the occupations that go with the idea of 'Land,' namely: Labor, Agriculture and Mining. The corresponding figures on the other side of 'Water' treat of Commerce, Navigation and Fishery. They are grouped so that Commerce goes to the right, and Labor to the left of the central figute: then follows Agriculture next to Labor and Navigation closest to Commerce. Last in line are the figures of Mining and Fishery on their respective sides. The extreme ends of the narrow spaces of the pediment are occupied by indications of animals, which further carry out the division into 'Land' and 'Water.'" The Brooks Bank and Trust Company is being organized at Torrington, Conn., to take over the assets and business of the Brooks National Bank of that city. Applying a Charge for Small Active Signs are increasing that the principle of "cost accounting" as applied to the conduct of the banking business is receiving more serious consideration than ever before throughout the country. Too many banks have carried accounts at a loss and have been blinded by competition to the folly of paying more for money than the deposits are worth. Not only are banks considering steps to unite for a reduction in interest rates paid on deposits but efforts are also being made in different localities to bring about agreements to apply a small charge for small active accounts. The Clearing House Association of the Oranges in New Jersey recently appointed a special committee to investigate and analyze checking accounts with a view of ascertaining precisely what it costs to carry accounts of less than $100. At the last meeting of this committee it was unanimously recommended that the banks of the Oranges make a charge on such unprofitable accounts, probably of 50 cents a month. It is understood that definite action is contemplated by all the members of the Clearing House Association of the Oranges to charge on small active and unprofitable balances, the agreement to become effective March 1st. The Savings Investment & Trust Company of East Orange has been foremost in bringing about such commendable action. The Security Bank and Trust Company is being organized at El Paso, Texas, to absorb the business of the Commercial National Bank and the Security Trust and Savings Bank of El Paso. The capital will be $200,000. JOHN S. ROSSELL ELECTED PRESIDENT SECURITY TRUST AND SAFE DEPOSIT CO., WILMINGTON, DEL. John S. Rossell, for many years trust officer of the Security Trust and Safe Deposit Company of Wilmington, Delaware, will henceforth be greeted by his many friends in banking and trust company circles as "Mr. President." At the last annual meeting of the board of directors of the Security Trust and Safe Deposit Company, elected Mr. Rossell president as a recognition of his long term of faithful and able service. He succeeded in that office Colonel Benjamin Nields, who was elected chairman of the board and general counsel for the company after 30 years of service as president. The retirement of Colonel Nields from the presidency was due to his expressed desire to be relieved of the more active duties of his office. Mr. Rossell's election to the presidency is most welcome news to his host of friends both in Wilmington and in banking circles generally. He has become a familiar figure at the National conventions of the American Bankers' Association and his zealous advocacy of co-operation brought about the organization of the Delaware Bankers' Association several years ago. He is also known to readers of Trust Companies Magazine as a contributor to these columns on practical trust company subjects and as the author of a sucessful "Trust Deposit" system by means of which the fiduciary functions of trust companies may be popularized and adapted to living and voluntary trusts. For 28 years Mr. Rossell has been closely associated with Colonel Nields in the administration of the Security, occupying the office of trust officer during nearly all that period. Colonel Nields was elected president of the company in 1887 and under his able management the company has become one of the largest financial institutions in the State with capital, surplus and undivided profits of approximately $1,500,000 and deposits of $4,000,000, its clientele numbering over 10,000 individuals. A warm tribute was paid by the directors to Colonel Nields upon his retirement from the office of president. Other officers elected for the ensuing year were L. Scott Townsend, Charles B. Evans and L. I. Maloney, vice-presidents; Harry J. Ellison was promoted from assistant trust officer to trust officer. Vive-President Maloney also holds the office of treasurer and Mr. Ellison likewise fulfills the duties of secretary. Dr. Willard Springer was elected chairman of the excutive committee. The Fifth-Third National Bank CINCINNATI, OHIO 1863-Charter No. 20-1916. Fifty-Third Year. OUR SERVICE to Banks and Trust Companies has been developed and perfected through more than half a century of banking. An intimate knowledge of the requirements of Banks and the personal attention from officers specially qualified enable us to accommodate correspondents at all times in every reasonable way. WE INVITE Correspondence, or calls, from Banks and Trust Companies seeking additional facilities or contemplating a change in banking arrangements. A Record Year for the Irving National Bank The recent annual meeting of the stockholders of the Irving National Bank, followed by a reception and luncheon, served as a fitting occasion for a review of one of the most successful years in the history of that bank. Lewis E Pierson, chairman of the board, presided at the annual meeting and presented the formal report. President Rollin P. Grant called attention to some of the important achievements in developing service upon broader lines. In 1898 the Irving National Bank had resources of approximately $3,000,000. The statement of condition presented to the stockholders show that resources at the close of the last fiscal year aggregated $122,303,326. Net profits during the past year amounted to $755,692, after making full provision for depreciation and granting liberal increases of salary and extra distributions to the clerical force to assist in meeting the abnormal increase in the cost of living. Dividends amounting to $340,000 were paid, the last quarterly payment being on the basis of 10 per cent. per annum. The increase in business during the past year was the largest in the history of the bank. The Irving National Bank management prides itself especially upon the important accomplishments in connection with the development of foreign exchange and credit facilities provided for its customers, having secured personal representation in a number of large foreign centers and assisting in the establishment of dollar credits abroad. Two specialized consulting departments have been provided for customers and correspondents, one to provide information regarding investments and financing and the other to render assistance in connection with foreign trade problems. The bank has likewise adhered rigidly to its policy of carrying large cash resources and keeping assets in a liquid condition. Deposits amount to $102,150.000, capital. stock is $4.000.000 with surplus and undivided profits of $4,188,013. MONTE J. GOBLE, Cashier FREDERICK J. MAYER, Assistant Cashier W. S. McLucas Elected President Commerce Trust Co., Kansas City Following the recent acquisition of a controlling stock interest in the Commerce Trust Company of Kansas City, Mo., by the Southwest National Bank of Commerce the president of the former, Mr. W. T. Kemper retired from that office but will continue as a director of the trust company. Former Vice-President Walter S. McLucas has been elected president of the Commerce Trust Company, succeeding Mr. Kemper who will continue to take an active part in the management of the company in an advisory capacity. Mr. McLucas has been vicepresident of the company since 1895 and ably assisted Mr. Kemper in the exceptional growth which that institution achieved. Prior to coming to the Commerce Trust Company Mr. McLucas was vice-president of the First National Bank of St. Joseph, where he was also president of the St. Joseph Clearing House and of the Commercial Club of St. Joseph. He is a graduate of the University of Nebraska and was prominently identified with the livestock commission business in Omaha before going to St. Joseph. Contrary to erroneous reports which have appeared there will be no actual merger of the Southwest National Bank of Commerce and the Commerce Trust Company, at least not for some time to come. Both institutions will continue to be conducted as heretofore. As an expression of esteem Mr. Kemper was recently the guest of honor at a dinner given at the Hotel Muehlebach by the officers and directors of the Commerce Trust Company. He was presented with a "grandfather's" clock and in the presenting speech a tribute was paid to Mr. Kemper as "the man who put friendship in banking." The Cabot Trust Company is in process of organization in Chicopee, Mass., to take over the old established private banking business of Gaylord-Kendall Company. Emerson Gaylord will be president; Preston C. Pond, vice-president; Louis I. Howard, secretary an Frank C. Kendall, treasurer. INTERNATIONAL PAPER COMPANY 30 Broad Street New York To the Holders of Bonds and Preferred and Common Stock: The International Paper Company hereby gives notice that it has prepared a plan for the consolidation of its bonded debt under one mortgage, and offers bondholders the right to exchange present bonds for new First and Refunding Five Per Cent. Sinking Fund Mortgage Bonds, as set forth in a circular letter, dated January 31, 1917, addressed to the Company's bondholders The Directors of the Company have also unanimously voted to offer to Preferred Stockholders, in full settlement of all deferred dividends 71⁄2 per cent. of the face value of their holdings of Preferred Stock in cash, 14 per cent. in Six Per Cent. Cumulative Preferred Stock, 12 per cent. in Common Stock, provided, however, that the holders of such an amount of Preferred Stock as the Company and the Committee representing the Preferred Stockholders shall deem sufficient, shall accept said offer by depositing their stock with Bankers Trust Company, Depositary, 16 Wall Street, New York, subject to a Deposit Agreement bearing even date herewith. Copies of this Deposit Agreement, including circular letter to Stockholders, outlining in detail the plan of adjustment, and copies of letter to the bondholders, may be obtained upon application to Bankers Trust Company, Depositary, or from the International Paper Company, whose officers will be glad to answer any inquiries or give any further information that may be desired. Copies of letters and Deposit Agreement are being mailed to Stockholders of Record and to Bondholders whose names are known to the Company. Dated Januay 31, 1917. PHILIP T. DODGE, President. To Holders of Certificates for Shares of Preferred Stock of the International Paper At the request of the International Paper Company and of holders of a substantial amount of its preferred stock, who have already approved of and assented to the plan for the payment and refunding of the bonded debt of the Company, and the adjustment of the deferred dividends upon its preferred stock referred to in the foregoing notice, and subject to the terms of the deposit agreement therein mentioned, we have consented to act as a Committee to represent the holders of such preferred stock in the execution of the said plan. We recommend the proposed plan and the acceptance of the offer made by the Company to adjust the said dividends, and trust that prompt co-operation of the stockholders will be received. Holders of preferred stock are urged to immediately deposit their certificates, duly endorsed for transfer in blank or accompanied by proper instruments of transfer, with the Bankers Trust Company, Depositary, 16 Wall Street, New York City. Such deposit will impose no expense upon the stockholder, and without further act on the part of the stockholders depositing, will constitute their assent to and approval of the financial plan and the proposed adjustment of the deferred dividends, and all the terms of the deposit agreement. Negotiable certificates of deposit will be issued by the depositary, and application will be made to have such certificates listed upon the New York Stock Exchange. Unless the Committee and the Company shall hereafter extend the time, no deposits will be received after March 10, 1917. The Secretary of the Committee will be glad to answer any inquiries or give any further information desired by any stockholders in regard to the foregoing. INCOME TAX RETURNS March 1st, is the last day to file returns of net income and list returns of income withheld at the source, unless extenison of time is obtained. Many difficult questions are answered in our Income Tax Service. In it are published 132 letters answering specific questions propounded by lawyers, bankers and accountants. These letters supplement and explain the formal treasury regulations which are also printed in the Service. The questions which are troubling you may have been asked, and answered in these letters. A copy of the Service Book will be sent for examination without charge or obligation. The Corporation Trust Company 37 WALL STREET, NEW YORK To Reduce Transmission of Drafts on Governors of Federal Reserve banks are working out the details of a system of exchange among member banks, through Federal Reserve banks, designed to eliminate to a large extent the practice of transmitting to distant sections of the country drafts on New York and to substitute drafts on banks located in cities to which the remittances are sent. The present intention is to put the plan into operation by the time that section of the Federal Reserve law becomes operative under which deposits held by various banks in other banks will no longer be classed as reserves. Many member banks maintain balances with New York banks for the purpose of furnishing their customers with drafts on New York which are extensively used in remitting to distant sections. Inasmuch as these balances would no longer be classed as reserves, the board is seeking to provide a method by which if they are withdrawn and placed in Federal Reserve banks they still will be available as the basis for exchange. Under the proposed system it would be possible to send remittances direct to the points to be reached without the medium of New York drafts, through drafts on the Federal Reserve banks for the districts in which the receiving points are located. Mechanics & Metals National Increases Dividend Rate Owing to the success and exceptional growth in the volume of its business the directors of the Mechanics & Metals National Bank of New York have increased the annual dividend rate on the $6,000,000 capital stock from 12 to 16 per cent., by increasing the quarterly disbursement from 3 to 4 per cent. This is the first change in the dividend rate of that bank since 1907. For three years prior to 1907 dividends were at the annual rate of 10 per cent. and prior to 1904 and dating back to 1880 an annual rate of 8 per cent. was maintained. The Mechanics & Metals National Bank, in the last official statement, reported aggregate assets of $209,899,565. Deposits were $181,848,993 as compared with $100,636,000 two years ago. In addition to the capital of $6,000,000 there is surplus and undivided profits of $9,693,256. The Mechanics & Metals has been particularly successful in developing the service extended through its foreign department, the latest report showing letters of credit and time acceptances amounting to $8,432,314. The National City Company of New York is offering City of Rochester, 4 per cent. bonds at price to yield 3.90 per cent., according to maturity. The bonds are tax exempt in New York State. |