[Volume XXVII
THE CHICAGO BANKER
22
The Girard National Bank
Of Philadelphia
Capital,	$ 2,000,000.00
Surplus and Profits, .	. 3,950,000.00
Deposits,	39,865,000.00
FRANCIS B. REEVES,	President
RICHARD L. AUSTIN Vice-President	JOSEPH WAYNE, Jr. Cashier
THEO. E. WIEDERSHEIM Second Vice-President	CHARLES M. ASHTON Asst. Cashier
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western managers of the National Surety Com pany, and myself. Mr. Dinwiddie, of Iowa, was unable to be present, but made it known that he was with us in anything we might undertake. All of the gentlemen present had come prepared for action, and after considerable discussion as to the best manner in which to work out this problem of protection, it was agreed that no better method could be employed than that of organizing an interstate association, with the secretaries of each state association as active members. This was done, and it was decided to call the new organization the Interstate Protective Association, as best indicating its primal purpose.
The National Surety Company, through its representatives present, also indicated its willingness to join the association and contribute its pro rata of the expense, so that now the Interstate Protective Association is made up of the state associations of South Dakota, North Dakota, Minnesota, Wisconsin, Iowa and the National Surety Company, with officers as follows : President, W. C. Macfadden; vice-president, J. E. Platt; secretary and treasurer, C. R. Frost.
After the organization had been completed, it was decided to employ, at once, the best detective available for this peculiar and difficult work, and to commence operations on a conservative basis, moving only as we might be sure of our way. Shortly after this meeting, we succeeded in making a contract with a detective who had, by many years of efficient work, demonstrated his ability in this particular field. The contract was made effective on October 15th, and the detective’s first instructions were as follows:	“Visit every known
hangout of yeggmen in the five states interested, ascertaining, as nearly as may be, the names of those who are inactive at the time, learning their plans for the future and also obtaining as definite information as possible concerning those who are absent front their resorts. Make the acquaintance of every sheriff and police official in the localities visited, and arrange for their prompt assistance immediately upon the occurrence of bank burglary.” The detective was also instructed to report to me every day just what he learned and succeeded in accomplishing in the matter of obtaining competent local men whom he could call on at a moment’s notice.
The first state which he visited was North Dakota, and he had not been there long before he learned that a well known gang of yeggmen
do so. As officers engaged in the banking and trust company business you appreciate the value of courtesy and fair dealing. You are acquainted with each other and respect one another as men. This consideration and respect must be extended to the institutions you represent. Is not that the most important element in this ethical relationship? Its practical expression will mean fair dealing in competition, and co-operation in matters of common interest.
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Fighting Bank Burglars in the Northwest
(Continued from page 9) of $10,400. Naturally, this condition of affairs forced me to a very thorough study of the methods which had been pursued by our protective department, and I soon became convinced that they were altogether inadequate. My next move was to get in touch with several detectives who had obtained a large amount of experience in the investigation of bank burglaries, and who were, in a general way at least, familiar with yeggmen and their methods. I also endeavored to get in touch with police officials throughout the state, with the idea in mind of obtaining their immediate co-operation in the event of future burglaries. It was also necessary for me to familiarize myself as much as possible with the personnel of the various yegg gangs operating in Minnesota. It was not long before we commenced to produce results. Several yeggmen were captured and convicted and we thought we had taught them a lesson they would not soon forget. Last fall, however, several attempts were made in Minnesota, in quick succession, and we were unable to obtain any information in connection with two of these matters. This set me to thinking again, and I became convinced that in order to accomplish definite and lasting results, it would be necessary to extend the system into contiguous states. I learned that W. C. Macfadden, secretary of the North Dakota Bankers Association, J. E. Platt, of South Dakota, and your own George D. Bartlett, had also been giving this matter considerable thought, and after considerable correspondence with these gentlemen, and J. M. Dinwiddie, secretary of the Iowa Bankers Association, a meeting was called to be held at my office on the afternoon of October 8, 1908. There were present at this meeting, Macfadden, Platt, Bartlett, David W. Armstrong, Jr., secretary of the National Surety Company, of New York, W. S. McCurdy, president of Win. B. Joyce & Co., north-
compromises. It becomes an act of futility for a testator to dispose of his property by way of trusts if his trustee will barter away his rights and disregard his expressed wish. It is the testator’s prerogative to make his will and determine and fix the terms of the trusts created thereby, and it is the duty of the executor or trustee to see that its provisions are faithfully carried out.
If time permitted I should like to consider the ethics of trust companies in their relationship to each other, to banks and to the public. The latter I have done incidentally in my discussion of certain classes of trusts. A trust company is closely related to the public in many ways. In the first place it is a semi-public institution, being chartered by the state and subject to its supervision. In states where it has general banking powers, and is also a savings bank, it is in daily touch not only with the commercial interests of the community, but with the great body of people who make it the depositary of their earnings, and often of their entire savings. These are great interests to be served and conserved. This can be done only by honest, conservative and approved methods of banking. Because of its great variety of functions and extensive powers the banking business of a trust company should be conducted even more conservatively than that of a purely commercial or savings bank. There are here large interests at stake which are not involved in the business of the ordinary bank. In addition to the obligation to depositors are the numerous sacred obligations to beneficiaries under all classes of trusts. I have dwelt principally on the moral responsibilities involved but there is also a financial responsibility which is vast in amount. There are no statistics at hand to indicate the value of property held by trust companies in a fiduciary capacity. It would be rash to even venture a guess, but it is safe to say that in many instances the value of the property held in trust exceeds the amount of deposits of the trust company. It is thus readily apparent that trust companies are tremendous factors in the financial and moral life of the nation. The happiness and well being of millions of lives rest upon the integrity of these institutions and the honor and sense of justice of the men charged with their management. It is enough to make strong men hesitate to assume such responsibilities.
Time will not permit me to discuss the ethical relationship of the trust company to other trust companies and to banks; nor is it necessary to