The San Francisco Call. Newspaper, October 21, 1903, Page 7

THE SAN FRANCISCO CALL, WEDNESDAY, OCTOBER 21, 1903, SECTIONS OF AMERICAN BANKERS’ ASSOCIATION HOLD MEETINGS PREVIOUS TO GATHERING OF MAIN ORGANIZATION THIS MORNING e L t Companies’ ness Under Discussion. i important Papers Presented to Delegates. S Tru Busi o N FRANCISCO witnessed the r vesterday of the balan: delegates to the twenty- annual convention of the American Bankers' Assoolation, e delegates at Grand Hotels presented »d the men who are prom- world of finance gathered in us rooms and talked of but one et was the generous wel- by the citizens San the dscussion posed to city, were the head- sight- of the vis- VIEWS ON WEALTH PROBLEM Hon. Lyman J. Gage Is Listened to With Interest. ss W Paper of treasure hat money , In & sense oet, he learns s of financial that it s i oting and escape al freedom. He loans mcney he s the: men 'n mselv who will not even be bur- e of thelr own poseessions ¢ family solicitors or Thus freed from t devote them: he pursuits ation of art, the en- estates aid to the n affords reasing number are eir greatest prodlem their ‘wealth sponsibilities may A man of ‘wealth re busipess, but, rxhaustible en- of achieve. umulated the possibily infirmity of Unless he is be unmindful ultimate disposition red possessions. Ir ood with a family, he finds that he has providence to a de- members of which, in it is his pleasure to helping hand He fldren, who have cuitivated by cie through social cue. ave In & sense claims 18t there are few greater hard- large cosmopol- | [ { 11 H ture o therefore. these heneficen Sial corporations fs comparatively such institutions States The | upon tr | tent of its ser¥ y s but most _requiring fces in ed to any trust the firm growing value of such work knowr 5 becoming problem of th o mate ition of et vecullar DEALS Philip T. ¥ | Colonial Trust | read an able adds Variel and Profit { Company Business. F dvantages | ‘and methods of business, to en- T ';nr‘e with zeal and fdelity the mposed upon it in fits fductary | capa trustee. Its capital should be | adequate to its responsibilities Tts officers | 4 directors should be men of experience and s single mind devoted to the institution | they merve. Tts corporate work, Whether ex- | llum ely reli to its trust business (vr(xm(. Chaeia be of o dlgnified character and free from ol b o e Chuet company should fur- | B thrown the safeguards of wise legisla- | ther Don some of the older States adequate | Provision has been made, and provision in this respect laws ; the States less fortunate e Pegisiature may well give careful con- sideration to this important function of finan- It is true the trust company:| a newcomer. began business in the United but little more than Af Tecord of that half century is re whole, an honorable one, and the ex- | ympertectly its special facilities period in question few. A 12 any trust company acting in a fidu- There have h imstitutions occasional acts of mal capacity { been in suc easance by emDIOYES, can recall ‘has the t faake good to the e stained of opinion, I have allude: class which w umerically greater, proper their WITH ESCROWS. | Interesting Addressrls Delivered by | Philip T. Babcock of New York. cock, Company able AT % J GROUF 2, TN PELACE HOIEZ, FR.OM LEFT To RIGAT THEYACE A - D JA WAUTSER JICE - FRESIPENT [ SSECRETHRSY LA b AN SECTION. A D+ be long | e ed lor with the trust | that the burdens of the y relieved if due regard tages offered by the trust tderation of in its char | 4 profitably be adopt- The first of years ago. however, the management of prop- by understood those In the | losses have oc- | by the delin- | if any, property unquestionably but in no st compan neficiary the ase that | failed to temporary therefore, that the companies in the special should be may justly management and ulti- property presents problem of the rich. officer of the | of New York, n “Escrows: A Feature of Trust He dealt with the | trust | ! | es: | velopment ‘to make its sha | pany. subject in a broad manner and, in part, | sald: The dictionary defines an escrow as: “An | trument under seal, placed In the hands | a third g A e in the son and subject to ~eTOW xpianation cover the w it is com- work to al | | il parties to the r grantor or grante -uctions the trust | ts still and permits them to v ty to any suft it it has knowledze urt to instruct it to tt sking fc counsel_usually wance to ccver their duties in Such is the simple escrow. xt is one somewhat more In vogue a few than at pres. needing only ago rado, Some wonderful few dollars for de- holders “‘rich be- or some embryo rd Ofl Company needing a small amount | a hole in the ground and enrich the world; some such enterprise is capi- talized by philanthropists who desire, out of love for their fellow-man, to let him in on a good thing by selling him a few shares of treasury stock at 10 cents on the dollar (going to 20 cents next week); being philanthrop: or perhaps bacause they know each other too well, they do not ask that the money shall be paid to themselves direct, but to a trust com- who will hold the stock in escrow and deliver it as sold Sericusly, gentlemen, I do not mean to inti- mate for one moment that all enterprises brought out in this way, through the inter- mediary services of a tri company, are of the character sketched abovi far from it. But I do want to point out the dangerous features of this kind of escrow and to show the need of very great caution when such a proposition i& brought to us. One particular objection to this form of escrow is the very real responsi- blifty put upon the trust company. In the State of New York, and I belleve in most others, a company cannot issue its own stock for less than par; such stock is often sold, rightly and properly so, by owners who have received the stock at par for property pur- chased, and in other ways; but when a trust company accepts payments for so-called treas- ury stock it should be very sure of the bona fars of the proeeedings: should have a very intimate and exact knowledge of the transac. ten: shoull, in fact, be prepared to accept the moral responsibility entailed as being a very real end legal responsibility; and that, I opine, {s outside the proper functions of a trust com- P ¥ain, in this form of escrowSthere fs always the danger of the trust —company being held liable for representations and promises con- tained in circulars and prospectuses, even when its services have been limited to distributing ‘h papers. One Or two recent cases in the W York courts illustrate this danger. BUSINESS OF BILLIONS. Clark Williams of New York Prel sents Interesting Figures. yond the dream of avarice,' Stand to ai rest of t ' P. C. Kauffman. vice president of the Filedity Trust Company of Tacoma, Wash., then delivered an address upon the business of the trust companies in the Pacific Northwest. He showed that while the business of the trust companles of this section was very small compared to | Prominent Men Appointed to Serve | then followed and the follo the business of similar institutions in the East, that the possibilities were great and that the scehe of futuré financial op- erations of vast magnitude would be hifted from the Atlantic to the Pacific C Clark Willlams, vice president of the United States Mortgage and Trust Com- pany of New York, followed with a con- clse paper on “The Business of Trust Companies Compared With the Business of Clearing Banks.” Mr. Willlams show- ed that the business In the. last twelve months of forty-nine trust companies in Greater New York amounted to $741,000,- 000, compared to $544,000,000 handled by the clearing b of - that section. He clared that a point in favor of the trust companies was proven by the the checks drawn on the tr comp: of Gr er New York for the st amounted to $4,000,000,000, while drawn on the clearing banks of | tion amounted to $74,000,000,000. | speaker clalmed, showed that the pubiic | was* to allow its to re main or Josit with the trust c ken t con ssoclation | : gested steps be rge the membership of the t tion of the Banker to i that uniforim laws be secured in the arfous States governing the management of safe deposit boxes. The various dele- gates that spoke discussion echoed the sentime Mr. Wil liams. SELECT OFFICERS FOR YEAR. on Trust Company Section. The election of officers of the trust com- pan section of the Bankers ssociation ing gentle- men were elected to serve for the ensu- ing year: Breckinridge Jones, vice president of the Mis- sissippi Valley Trust Company of St. Louls, | chalrman; Edwin A. Potter, president of ths American’ Trust and Savings Company of Chi cago, vice chairm: The following were elect ed to fill vacancles on the executive committee: Chark Williams, vice president of the United States Mortgage and Trust Company of New York; Edward H. Reninger, treasurer of the | Lehigh Valley Trust Company of Allentown, Pa., and Frank W. Zelle, president of the Mer- cantile Trust Company of San Francisco. The officers of the executive committee are as follows: Secretary, James R. Branch, Hanover Bank building, New York City. Members of the executive committee—Term expiring ,1004: Loufs L. Stanton, second vice presidenf Standard Trust Comopany, New York City; E. A. Potter, president American Trust and Savings Bank, Chicago, Ills.; F. J. Wade, president Mercantile Trust Company, St. Louis, Mo. Term expiring 1905: John Skelton Wil- liams, president Richmond Trust and Safe De- posit Company, Richmond, Va.; A. J. Enright, secrstary Missouri Valley Trust Company, St. Joseph, Mo.; 8, F. Haserot, president Pruden- tial Trust Company, Cleveland, Ohio. After a vote of thanks had been voted to the citizens of San Francisco and the people of California for the welcome ex- tended to the delegates the meeting ad- Journed. The executive council of the trust com- pany sectlon of the Bankers' Association met at the Palace Hotel“yesterday after- noon and elected Clark Willlams, vice president of the United States Mortgage and Trust Company of New York, to serve as chairman of the executive com- mittee. A. A. Jackson, vice president of the Girard Trust Company of Philadel- phia, Pa., was elected to the executive board to fill the vacancy caused by the retirement of E. A. Potter, chairman of the executive committee. BANKERS ARE 7BANQUETED. Governor Pardee Greets the Distin- guished Visitors at Table. A ginner was given in the evening by the bankers of San Francisco to the executive council of the American Bank- ers’ Association In the conservatory of the Palace Hotel. Flowers were scat- tered in every direction of the conserva- tory, hanging from chandelier and from ctieres, springing from epergnes and made into rich vari-colored ropes stretch- ing the whole length of the table. Governor Pardee was present to do honor to the guests of the evening and Caldwell Hardy was chosen to preside. After the repast Governor Pardee gave the visitors a hearty, sincere and patri- otic welcome to the land of friit, flowers and sunshine. The Governor, in discus: ing and describing the remarkable ad- vantages to be enjoyed in California, told his interested hearers of her dimensions and reminded them with a genial and kindly invitation that there was room for the people of the East, who would be wel- comed whenever they came here in great or small numbers. The Governor ple- tured the incomparable scenery of Cal fornta. He graphically described her mountains and her valle her vineyards and her orchards and her horticuitural and floricultural w th. No floods, no typhoons were known here, sald Governor ardee, to bring devastation and, he id, no sunstroke hampered and lald low an who labored on the street or in 1. It was a State where extreme drawbacks were unknown, and all such advantage he wondered why nia, God’s own country, had no more of the people of the nation. The or asked who, In that respect, was fauit. Hs asked: “Is it our own fault,’or whose fault is ft Governor Parde brought his remarks to a close with renewed expressions of heartfelt greeting. In the name of the people of the State he told of the pleas- ure that the visit of the American Bank- ssoclation had afforded them while \ red everywhere to extend to their distinguished visitors the most cor- welcome. Frank Symmeg and Willlam McMurray were among other speakers of the even- tng. Mr. McMurray said he hoped the vis- itors would take advantage of the facili- ties tendered them to travel over the them to extend their visit to six weeks. He also took the opportunity to tell them that all civic and commercial bodies of California were eager to give them a royal welcome. He begged that since they had come so far they might re- main longer and view the great State of which they have read so much. The Knickerbocker Quartette sang dur- ing the evening and ‘was heartily ap- plauded. After the banquet each guest was pre- sented with a huge bouquet of beaut{ful flowers. i Will Print Financial News. The New York Evening Post has ar- ranged to bring out a banking edition of that paper in this city every day during the bankers' convention. The first issue of the sheet appeared yesterday after- noon and it contained all the day’s news of Wall street and other commercial cir- cles. It will be devoted exclusively to financial news. —_———— Many Thoroughbreds Leaving. Trainer Miles is coming from St. Louls with four or five horses for the Oakland meeting. Coggswell is the best in the string. ‘W. J. Hazelit will arrive in a few days with a string of twelve horses. -~ Auto- light Is the best known of his collection. E. J. Smith is coming from Chicago with five horses, Barney Schreiber shipped twenty horses to the coast to be put in training for the coming races. Otis, winmer of the St. Louis Derby and a prominent candidate for the American Derby, is among them. Schretber will ship a second string of cleven. This will make thirty-one horses to run in the big bookmaker's colors on this coast. | So many applications have been made for stalls by trainers in this State and in the East that the management will not be sble to accommodate two-thirds of those who desire stabling. - SOME LEADING MEMBERS. OF | THE AMERICAN BANKERS' AS- | SOCTATION NOW IN THIS CITY. ! * + 1 BUSINESS OF SAVINGS BANKS. —_—— - Continued From Page 6, Column 7. E i | | | | consideration of bills whole of the State from Siskiyou to San | | Diego and instead of six days, he begged "Proceedings Are Terminated With commercial paper, which travels over many States, while the savings bank paper is usually local in its character. It might be weh to have a committee ap- pointed by this body to get all the statutes of the various States together, and from them and other sources form a bill that can act as a model for the Legislatures of the various | tes. Such a bill, wherever ermcted by the law- makers, would add to the popularity of the savings bank 1 would therefore move y that you appoint a su, Mr. Chairman, committee of three, not including the mover, who are to get the com- plete statutory enactments as to ment savings, banks of the vari of_the Union, and that thereafter sa mittee, after receiving stions from th interested, pre to prepare such a bill as in their opinion would be a proper and correct bill le loption im every State in the ( when so prepared the | submtted to the next annual | this body for further action. Lucius Teter, cashier of the Chicago s Bank of Chicago, read a most in- ‘Savings Bank Adver- | Savin teresting paper on tising”” and the best methods of keeping | a Savings bank before the minds of the | ge al public. GENERAL LAWS ARE DESIRED. | ed to Draft Desired Bills. | A short discussion of the papers pre- sented was then held and the following resolutions were unanimously adopted: Resolved, That the enairman appoint a committee of three members, who are to pro- cure the complete statutory enactments re- | ferring to savings banks of the various States of the Union, and that thereafter the said com- mittee, after receiving suggestions from those | intereste in thelr , Proceed to prepare such a bill as binion, would be a proper and corr bill suitable for adoption in every State of the Tnion, and that, when so prepared, the same be submitted to the next annual convention of this body for further action. Whereas, The State associatlons for savings banks, as existing in several States, have proved most beneficial to their interests and heipful to their depositors by representing them before their respentive Legislatures in the affecting their Interests and in bringing bank officials together for the discussion of the many subects of special fn- terest to them Resolved, That we strongly urge the organiz- ing of State asscciations of savings banks in very State and Territory of the Union having vings bamks, and that we pledge our fndl Vidual efforts fo further this object. NEW OFFICERS ARE ELECTED. Thanks to People of California. The election of officers was then held, the following gentlemen being duly se- lected to serve on the committee: Chalrman, A. C. Tuttle, treasurer Naugatuck Savings Bank, Naugatuck, Conn.; vice chafr- man, William Felsinger, president of New York Savings Bank. New York. Executive committee, to serve three years—Fred Heinz, president of Farmers' and Mechanics' Savings Bank, Davenport, Jowa: E. Quincy Smith, vice president of Union Savings Bank. Washington, D. C.; H. Leroy Harwood. treasurer of Mari- ners’ Savings Bank, New London, Conn. Willam Hanart was re-elected secre- tary, the balance of the executive com- mittee being as follow: Term expiring 1904—G. Ad. Blaffer, cashier Germania Savings Barnk and Trust Company, New Orleans, La.: W. S. Paine, trustee Metro- politan Savings Bank, New York City: L. H. Dinkins, cashier Algiers Savings Bank, New Orleans, La. Term expiring 1905—H. C. Shafer, Scranton Savings Bank, Scranton, Pa.; George B, Latimer, secretary Irving Savings Bank, | New York City; C.. M. Preston, cashier Hamil- cashier ton Tru" and Savings Bank, Chattancoga, Tenn. . The convention was then declared closed. after thanks had been passed by a rising_vote, in which the local reception committees and the people of San Fran- cisco and California were thanked for the generous reception accorded to the dele- gates and their friends. —_——— Comptroller Ridgely Here. ‘William - Barrett Ridgely, Comptroller of the United States Treasury, who is to deliver an address befofe the American Bankers' Convention, arrived in this city on the' late train last night =nd is regis- tered at the Palace Hotel. The gentle- man formed one of the New York bank- ers’ party which arrived here Monday, but he stopped over in"Sacramento. | hour to-day. State Financiers Hold Annual Session. Money Topics Are Features of the Assembly. HE first session of the annual convention of the Cali Bankers' Association was heid in Steinway Hall yesterday morning. The session was attended Dby bankers from all over California. Each town's representative addressed the assembly, and stated the condition of shipping and growing and the general advances made in his county during the last year. Roll was called by A. H. R. Schmide, after which reports were made by the secretary and treasurer. he president of the convention, James & Lynch, of the First National Bank of San Fran- cisco, made the following addre Gentlemen—Our meeting this year is held under_exceptional circumstances, The Ameri- can Bankers’ Association has honored San Francisco and California by holding its twen. ty-ninth convention In this city. and the - fon are alréady amonsg us. our president’s address may fall short in many particulars, but the business before us demands that it should at least possess the merit of brevity, and I will not enlarge om subject. but will leave It in your handis With perfect confidence that it will be tically put into effe . The good times have had the usual effect In largely increasing the number of banks wnd also in large additions to the capital of som of the old-established banks. In this has been quite warranteq by and the new instituttons wil employment capital fair return for such enterpris doubtful investment the new member be ness instead of an addit older banks. mmon ¥ time of strength t Qur assoclation has made a fair gain in membership during the year, but this.has not kept pace with Increase of banks, and there are st tablished institu tions that sho 1 > be hoped that the the national meeting w ur own members, a ting we shall all sta . The *convention then adjourned BANKS PREPARE FOR EMERGENCY Baltimore Concerns Re- _ceive Large Supply of Currency. BALTIMORE, Oct. 2.—All the banks and financial institutions in Baltimore were opened promptly at the customary Among financiers generally there is a uniform expression of ¢ dence that no other suspensio: probable, and whatever panicky ing was manifested yesterday failure of the Maryland and Union panfes has practically disappeared. On the Stock Exe the sentiment during the whole day has been optimist and in the closing hours there was dently not a member who feared further trouble. A factor in allaying apprehension the knowledge that many of was he instit tions had strengthened their resou during the night. A large amount . rency from New York, Phi »hia and Washington was ser to Baltimore dur- ing the ght and this morning How | much w received was not defini known, but it is estimated that between $3,000000 and $5.000.000 is in the vaults of banké and trusts which was not there yesterday One of the reassu % fncidents e day was the announcement tha he Union Trust Company, one of the sus- pended companies, would resume business in a few days. PITTSBURG, Pa., Oct. 2.—The Fed- eral National ank, on whose stock a raid ma in the | 1l Stock Ex- change yesterday, has not, according to President Langfitt, 1 any material hurt. No run on the institution has r sulted, and the prompt action of the al banks in- offering assistance has served apparently to allay distrust SPECIAL FREIGHT TRAIN IS HELD UP BY TRAMPS A gang of tramps held up a special freight train bound from Oakland to Mendota last night. They boarded the train in a body near the Sixteenth-street station and held up and robbed Brake- men Hill afd Schroeder, and then made their escape. The freight was going very slow at the time and the hobos had little dificulty in getting aboard They surprised the crew, but hurriedly made their departure as sbon as they had robbed the two brake- men. The police have been notifled, but have no clew to the identity of the rob- bers. e e e ADVERTISEMENTS. THE DISEASE OF CIVILIZATION IS CONSTIPATION. THE SAFEST AND QUICKEST CURE FOR THIS EVIL IS KPP Irh aws & ' Hunyadi Janes NATURE'S LAXATIVE WATER, NOT AN ARTIFICIAL PREPARATION, RELIEF COMES WITH THE FIRST GLASS. ALWAYS ASK FOR FULL NAME. IF YOU SIMPLY ASK FOR HUNYADI WATER YOU MAY B8E IMPOSED UPON.