Code of fair competition for bankers as approved on October 3, 1933


Material Information

Code of fair competition for bankers as approved on October 3, 1933
Portion of title:
Physical Description:
iv, 10 p. : ; 23 cm.
United States -- National Recovery Administration
U. S. Govt. print. off.
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Banks and banking -- United States   ( lcsh )
non-fiction   ( marcgt )


Statement of Responsibility:
by President Roosevelt.
General Note:
Cover title.
General Note:
At head of title: National recovery administration.
General Note:
"Registry No. 1707-02."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930868
oclc - 82178770
lccn - 33026646
lcc - HD3616.U452 B3
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Full Text

thile Buperimnda~landnt f Dcamntts, Washngton D.C. I PriceS e~nts






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OzE~ecutive Order

2. Letter of Transmittal

3. Text of Code

4. Schedule A

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This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.O., and by district offices of the Bureau of
Foreign and Domestic Commerce.


Atlanta, Ga.: 504 Post Offce Building.
Birmingham, Ala.: 257 Federal Building.
Bostonp, M1ass.: 1801 Customhouse.
Buffurlo, N.Y.: Chamber of Commerce Building.
Charleston, 8.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
C~lelelandl, Ohio: Chamber of Commerce.
Dutlas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: Room 405, 421 West Mdarket- street.
Mlemphis, Tenn.: 266 South Water Street.
Mlinneapolis, Mlinn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse~'
New York, N.Y.: 734I Customhouse.
Nolrfollk, Va.: 406 Eaist Plumle Street.
Philadelphin, Pa.: Room 812, 20 South Fifteenth Street.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Offle Building.
St. Louis. Mio.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Battle, Wash.: 1406 Vance Building.



An application having been duly made, pursuant to and in full
compliance with the provisions of Title I: of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Bank-
ers' Code of Iiair Competition, and hearings having been held there-
on and the Administrator having rendered his report containing an
analysis of the said Code of F'air Competition, together with his
recommendations and findings with respect thereto, and the Adminis-
trator having found that the said Code of Fair Competition c~om-
plies in all respects with the pertinent provisions of Title I of said
Act and that the requirements of clauses (1) and (2) of subsection
(a) of Section 3 of said Act have been met:
Now, therefore, I, Franklin D. Roosevelt, President of the United
States, pursuant to the authority vested m me by Title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise to adopt and approve the report, recommendations, and
findingfs of the Administrator, and do order that the said Code of
Fair Competition be, and is hereby, approved.
FaxauxLI D. RoosiiVELT,
Approval recommended:
HoonH S. JoHNson,
A administrator.
October 3, 1933P.


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'"' .:"r~ii:.;
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HuanH S. JoHNwon,

OcTOBER 2, 1933.
Th~e Wlhite House.
MrY DE~AR l'1R. PRESIDENT: I have thle honor to submit and recom-
mend for your approval t~he Bankers' Code of Fair Competition.
This Code was proposed by the American Bank~ers' Association,
founded in 1875. The association represents slightly more t~han 70
percent of the total number of banks and more than 94 percent of
the banking resources of t~he country. Membership requirements
therein impose no undue restrictions.
The Bankiers' Code of Fair Competition has the approval of the
association, the several AQdvisor~y Boards of the National Recovery
Administration, and- thle cooperation of officials of the Federal R~e-
serve Board, the Treasury Department, and the Comptroller of the
Currency's offce.
No objector from nonmembers of t~he association appeared at the
hearing, nor did any such nonmember file any objection to the. code.
However, r-epresentation on the code committee Is provided. in the
code for such nonmlember banks.
A complete report is being transmitted herewith. Important fear
tures may: be summarized as follows:
(A) Reempyloymnert amdT 2lages.-Unquestionably, there has been a
decided increase in both number of employees and their wages since
the signing of the modification of the President's Reemployment
Agreement, except mn small country towns. BIank staffs have been
held together as far as possible. Labor advisors stated that banks
pay emplloyees higher wages than are paid by industry generally.
Neverthleless, with thle desire to support the President's R~coveryT
Progralm and to meet reasonably the request of labor, the ban~kers
agreed to revisions of the code, principally to reduce the time of
apprenticeship from 12 to 6 months and to confine this group of
elinployees to approximately 5 percent of entire personnel, as against
the prevailing 10 percent in leading centers. These concessions and
the shortening of hours, both contained in the code, will bring about
additional employment and higher wages.
(B) Farir trade pracctices.--(1) Uniform maximum banking hours
are p~roided for similar institutions in any given area. (2) Payment
of interest on deponsits br all bankse is brought under the Bankin~GAct
of 1933 and the rules and regulations of the Federal Reserve Bodat-d.
This provrision shouldl elimlinate competitive bidding for deposits
andl thus enable the banks to invest more conservatively than mn the
past. (3) Service charges: These charges form a highly complicated
phase of banking. I believe the Code Committee will be empowered
more fully to handle these problems anld to unify the practices there-
under than any other agency heretofore established. (4) Trust serv-
ices: In effect this provision is designed as an ethical standard for
trust institutions.
I find that the code complies with the pertinent provisions of .
clauses (1) and (2), subsection (a) of section 3 of the National
Industrial etcovery Act.

:;" "

;il... .


To effectuate the policy of Title I of the National Industrial Re-
.oveery Act during the period of emergency, the following provisions
are established as a Code of Fair Competition for Banks:


The term "L bank as used herein shall include all national banks,
State banks, savings banks (ezeept mutual savings banks), trust com-
panies, and private bank-ers accepting deposits, In the United States

TLO e~terms "r employee or banki~n employee as used herein
shall mean any person employed by a bank in any capacity in con-
nection with its banking functions and operations.
The term United States proper as used herein shall mean the
forty-eight (48) States of the United States and the District of
The term "Administrator as used herein shall mean the Na-
tional Recovery Administrator.
Population for the purposes of this code shall be determined by
reference to the 1930 Federal Census.

AnacLs ~II-EFFEcTIva DBrs

The effective date of this Code, except as specifically provided for
hereinafter, shall be the second Mlonday after its approval by the
President of the United States.

AnnerE ~III-GENERAL LBnon PnonlsIONs

Employers shall comply with the following provisions of Section
1 (a of Title I of the NVational Industrial Recovery Act:Irancl
lectively through representatives of their own choosing and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(2) No employee and no one seeking employment shall be re-
qinred as a, condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organi-
sation of his o~wn choosing.
(3) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.


On and after the effective -date of this Code no person under
sixteen (16) years of age shall be employed by any bank; provided,
however, that where a State law prescribes a higher minimum age
no person below the age specified by such State law shafll be em-
ployed within such State.
ARTICLE V--Houns or EurMYLoENra

(1) On and after the effective date of this Code no banking em-L
ployee shall work or be permitted to viork more than forty (40~)
hours per week: averaged over a period of thirteen (13) consecutive
(2) The maximum hours of employment prescribed in the fore-
going paragraph shall be subject to the following exceptions:
(a) In districts or sections of the country where the seasonal
nature of commerce, agriculture, or industry making necessary the
moving of some product within a limited period imposes' upon
banking facilities an unusual demand, employees of banks subject
to such peak demand may work forty-eight (48) hours per week
for a period not to exceed sixteen (16) consecutive weeks in any
calendar year. Any such increase in hours of employment shall
be reported monthly to the Banking Code Committee provided for
in Article VII hereinafter.
(b) All banking employees required to perform extra work~ or
observe later hours in connection with periodic examination by Fed-
eral or State banking authorities, over which the bank has no control
either as to the time of occurrence or as to the duration, shall be
exempt during such periods from the limitations upon hours of
employment prescribed the foregoing paragraphs.
(c) Employees in banking institutions employing not more thlan
two (2) persons in addition to executive officers, in towns of less
than 2,500 population, not part of a larger trade area, and employees
in a managerial or executive capacity or in any other capacity of
distinction or sole responsibility. (regardless of the location of the
bank), who receive more than thirty-five (35) dollars per week, shall
be exempt from the limitations upon hours of employment pre-
scribed in the foregomng paragraphs.
(d) These provisions for working hours shall not apply to night
watchmen employed to safeguard t~he assets of the bank, who can-
not with safety be shifted or changed during the night period.

51) On and after the effective date of this Code no employee in
cities of over 500,000 population, or in the immediate trade area of
siuch cities, shall be paid less than at the rate of $15 per week;
no employee in cities between 250,000 and 500,000 population, or in ::
the immediate trade area of such cities, shall be paid less than at the
rate of $14.50 per week; no employee in cities between 2,500 and
250,000 population, or in the immediate trade area of such cities, -
shall be pai d less than at the rate of $14 per week. In towns of leass

t~~Shaws~ ho" wPulation the wges of: all classes of employees shall be
plasiseded byj not; less than twenty (0)~ percent, provided that this
At Ct eur an increase in wages to more than the rate of $19e

!.S: It is provided, however, that employees without previous
ii~iank~ng experience or training employed as apprentices may be paid
duri'~ng a contiuous period of not more than six (6) months at the
rs~at~e of eighty (80) percent of the minimum wages prescribed in
the foregoling paragraph. No bank shall include within the catel
~ty o~f apprentices more than one such employee for every twenty
employees or fraction thereof.
}:.:::, 'tiC)Employers shall not reduce the compensation for employ-
m~ert; now m excess of the minimum wages provided for herein, not-
withstnding that the hours worked in such employment may be
haireby reduced.

i'(1) To etectuate further the policies of the National Industrial
fieovery9 Act, a Banking Code committeee is hereby set up to act
as a planningr and fair-practice agency and to cooperate with the
Administrator in the administration and enforcement of this Code.
This Committee shall consist of fifteen representatives of the Amer-
ican Bankers Association, who shall be truly representative of the
.membership of the Association, a representative selected by fifty-
one (51) percent (measured by total resources) of thle nonmembers
of the. American Bankers Association, and a representative or rep-
resrentatives, without vote, appointed by the President of the United
(2.j) The Banking Code Committee may from time to time present
to the Administrator recommendations, based upon conditions in
the banking business, which will tend to eff~ectuate the operation of
the. provisions of this Code and the policy of the National Industrial
Recovery Act. Such recommendations shall, upon approval of the
Administrator, after such public notice and hearing as he may pre-
~acribe, become operative as part of this Code.
(3) Thea Bannking Code Committee may, subject to the approval of
the Administrator, require from all banks such~ reports as are neces-
iaary to effectuate the purposes of this Code, and shall upon its own
initiative or upon complaint of any person affected make investiga-
tion as to the functioning and observance of any provision of the Code
and report the results of such investigation to the Administrator.
(4); The Banking Code Committee shall, subject to the approval
of the ABdministrator, supervise the setting up of Regional Commit-
tees according to the following plans:
(e.) Where banks are now organized through State banking asso.
diatilons, city clearing-house associations, county groups, or other-
wise,~E such organizations shall, with the approval of the Banking
~~CoeCmm~ittee, appoint a committee for the purpose of assisting
"the Admninistrator and the Banking Code Committee in the ad-
usiisr~ation- and- enforcement of this Code within such local region.
(b) Banks in regions or districts not now organized shall, within
Ei thirty (30) days after the effective date of this Code, send duly

qualified representatives to a joint meeting' called for the purpose mt
organizing under the sulpervlsionn of the Banking Code Comifttee
a Regional Clearing House Association or such other comm~ritteie
along the lines of procedure set forth in the Manual of O~g~anies
t~ion and Management of Regional Clearing House Associatiskic~;om-
pile bythe Amlerican Bankers Association. r,
pie (c) Where such action hereinbefore stipulated shall not Miiar
been taken within thirty (30) days after the effective date o~f this
Code, the Banking Cod~e Committee may set up through the ~Stat
banking association or associations a Regional Commrittee or
Com mi ttees.
(5) The Committees provided for in the preceding paragiraphsl
shall assist the Adm~inistrator and the Banking Code Commit~teea in
the administration and enforcement of this Code within local araea
and shall, subject to the approval of the Administrator and .of .the
Banking Code Committee, adopt local rules and regulations govern-
ing competitive practices within local areas.
(6) The Admmnistrator may from time to time, after consultation
with the Banking Code Committee, issue such a ministrative in-ter-
pretations of the various provisions of this Code as are necessary to
effect~uate its purpose within the provisions of the National Indue-
trial Recovery Act of 1933, and such interpretations shall become
operative as a part of this Code.

To effectuate the purposes of the National Industrial Recoveryl
Act all banks shall comply with the following rules governing fair
competition in banking practices, which shall become effective sixty
(60) days after the approval of this Code by the President o~f the
United States:
(1) Houlrs of barnkEing.--Within cities, trade areas, counties, or
such other area as is covered by the regional clearing house, or ~other
organized group, banking institutions of the same kind or character
shall, subject to the approval of the Administrator, establish uniform
maximum hours of banking operations, but any bank in such a group
may observe shorter hours than the maximum established. (Banksw
having both commercial. and savings accounts are to be construed
as of the same character.) By hours of banking operations is meant
the period during which the doors of the banking institution are
open for the purpose of serving the public. It is not intended or
required that all banks within a given area shall maintain uniform
banking hours, but it is the express intention of this gproision that~Ri
allbalang institutions of like kind and character salmiti
uniform maximum hours each with the other. The uniform hours
so adopted shall not be less than those in effect in the majority of
the banks within any given district prior to June 1, 1933, and if the~
hours of any bank are so reduced to conform with the majority,
or if any bank observes shorter hours than the majority, then no
such bank shall by reason of this fact reduce the number of its em-
ployees below the number employed at the time such reduction in
hours is made.

42l) Jat-~ubest--ujt to the rules and regulations of the Federal
pt~easeoP Bjoard with -respect -to maximum rates of interest to be
alths~~zin time a~nd.sav~ings Ideposits and the method of calculation
obeef, as prescribed in the Banking Act of 1983, all ~banks within
up~bts or distrios hereinbefore referred to (except investment
'Ytkng houses accepting deposits, which houses are sulbjectt to the
CI;...'~.~''IEod~e of Fair C~ompetition for Investment Bankers) shall maintain
;:~iIi:jthe same :maimumn rates of interest and the same method of calcu-
lation therPeof upon deposits of ik~e character, but this shall not be
construed to require any bank to pay sulch maximum rates if it does
not so desi~re. The Banking Act of 1983 (Section 11-B) provides
thatt no bank which is a member of the Federal Reserve System
may interest on demand deposits; the rules and regulations
viby clearing-house associations or other groups shall contain
a stipulation that no interest is to be paid by any bank exceptt in-
vestment banking houses accepting deposits, which houses are sub-
feet to the Code of Fair Competition for Investment Bankers)
within such group, whether member or nonmember of the Federal
Reserve System, on demand deposits, provided that nothing in
these rules and regulations shall be in contravention of the permis-
sive provisions of Section 11-B of the Bankring Act of 1933.
(3) Service charges.--Each clearing house, county association
county group, or State bank association shall, subject to the approval
of the Administrator, adopt rules fixing uniform service charges
to be charged by banks within such~ district or group in accordance
with the practice now in effect whereby services rendered by banks
shall be compensated for either by adequate balances carried or by
a scale of charges. The Federal Reserve Act prohibits member
banks from making any exchange charge for remi~tting to the Fed-
eral Reserve Bank of their district for cash items, and since the
Federal Reserve System provides a par clearance plan, exchange
charges as such shall be left to the determination of each individual
(4) Trust service.--Trust departments shall be operated in ac-
cordance with the provisions of the Statement of Principles of Trust
Institutions, adopted by the Trust Division of, and approved by, the
Executive Council of the American Bankers Associat~ion on April 6,
1933. A statement of these principles is appended as Schedule AL
and made a part of this Code.

(1) Membership in the American Bankers Association shall be
open to aUl banks included within the provisions of this Code, and
said Bssociation shall impose no inequitable restrictions upon admis-
sion to membership therein.
(e2) It is expressly provided that no provision of this Code shall
interpreted or apphied so as to convict mn any way with any Federal
or State banking law or any rule or order which has been or may
be issued by the Federal Reserve Board, the Comptroller of the
Currency, or by any State banking authority.
(3) This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-

6' li

visions of Section 10 (b) of TJitle I: of the National Industrial Re-
covery ASct, from time to time to cancel or modify any order, ap-
proval, license, rule, or regulation issued under Title I of said Act,
and specifically to the right of t.he President to cancel or modify
his approval of this Code or any conditions imposed by him upon his
ap royal thereof. i
(4) Such other provisions of this Code as are not required to be
inc uded therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changesJ
in the circumstances or experience may indicate.
(5i) The provisions of this Code shall expire on the expiration date
of iTitle I[ o'f the Act or on the earliest date prior thereto on which
the President shall by proclamation, or the Congress shall by joint
resolution, declare that the emergency recognized by Section I of
the National Industrial Recovery Act has ended.



uThis stat~emet of principles has been formulated in order that
thei fundame~ntal principles of institutions engaged in trust business
may ~be restated and thereby:become better understood and rec~og-
nised, by the public as well as by trust institutions themselves, and
in ode that at may serve as a guide for trust institutions.
; In the conduct of their business trusts institutions are governed
by the cardinal principle that is common to all fiduciary relation-
shiis-namly, fidelity. Policies predicated upon this principle have
fopr their objective its expression in terms of safety, good manage-
ment, and personal service. Practices developed under these policies
are. designed to promote efficiency in administration and operation.
The fact that the services performed by trust institutions have
become an integral part of the social and economic structure of the
United States makes the principles of such institutions a matter of
Ipublic interest.
R. Af~. Snt~s,
President Trust Di~vision,
Amnericarn Ban~kelrs' Association.

ARTCLE 1. 8)e~uidoS Of 26774

SmarroN 1. Trust inbStitultione.-Trust institutions are corporations
engaged in trust business under authority of law. They embrace not
~only trust companies that are engaged m trust business exclusively
but also trust departments of other corporations.
Sac. 2. Trust buei~ness.--Trust business is the business of settling;
estates, administering trusts, and performing agencies in all appro-
priate ~cases for individuals; partnerships; associations; business cor-
porations; public, educational, social, recreational, and charitable
institutions; and units of government. It is advisable that a trust
institution should limit the functions of its trust department to such
Aneanc II. Acceptance of Trust Business
;A trust institution is under no obligation, either moral or legal, to
accept alli business that is offered.
.-Snorox 1. Persona~l trust bucsiness.--With respect to the accept-
sie of personal trust business, the two determining factors are

these: Is trust service needed, and can the service be rendered prop-
erly 8 In personal trusts and agencies the relationship is private and
the trust Institution is responsible to those only who have or may
have a financial interest in the account.
SEC. 2. Corporate trust bu~siness.--In considering the acceptance
of a corporate trust or agency the trust institution should be satis-
fled that the company concerned is in goodl standing and that the
enterprise is of a proper nature.

ArrCLE III.-A~dm~inist~ration of Trust B usine~s

-Smacrr~oN 1. Personal trusts.--In the administration of its personal
trust business a trust institution should strive at all times to render
unexceptionable business and financial service, but it should also be
careful to render equally good personal service to beneficiaries. The
first duty of a trust institution Is to carry out the wishes of the crea-
tor of a trust as expressed in the trust instrument. Sympathetic,
tactful, personal relationships with immediate beneficiaries are essen-
tial to t~he performance of this duty, keeping in mind also the inter-
ests of ultimate beneficiaries. It should be the- policy of trust insti-
tutions that all personal trusts should be under the direct supervision
of, and that beneficiaries should be brought into direct contact with,
the administrative or senior officers of the trust department.
SEo. 2. Confiden~tial relationsh ips.--Personal trust service is of a
confidential nature and the confidences reposed in a trust department
by a customer should never be revealed except when required by law.
SEOI. 3. Fucndam~ertal duties of trustees.-I~t is the duty of a trus-
tee to administer a trust solely in the interest of the beneficiaries
without permitting the intrusion of interests of the trustee or third
parties that may in any way conflict with the interests of the trust;
tion k~eep and render accurate accounts with respect to the administra-
toofthe trust; to acquaint the beneficiaries with all material facts
in connection with the trust; and, in administering the trust, to
exercise the care a prudent man familiar with such matters would
exercise as trustee of the property of others, adhering to the rule
that the trustee is primarily a conserver.
'SEc. 4. Corporatfe trust b~usiness.--In th~e administration of cor-
porate trusts and agencies the trust institution should render the
same fine quality of service as it renders in the administration of
personal trusts and agencies. Promptness, accuracy, and protection
are fundamental requirements of efficient corporate trust service.
The terms of the trust instrument should be carried out with scrupu-
lous care and with particular attention to the duties imposed therein
upon the trustee for the protection of the security holder.
AirricE IV. Operation of trust departments

SEaoPIN 1. Sepaation of trust properties.-T'lhe properties of each
trust should be kept separate from those of all other trusts and
separate also from the properties of the trusts institution itself.
SEC. 2. In.vs7n88nt?8. Of tlfM88 u1M/.--Til inVeStment fntURonO Of a
trustee is care and management of property, not mere safekeeping at
one extreme or speculation at the other. A trust institution should

spJ~t.Ai t :trust. investments all the care and skill that it has or
."lan ines~onably acquire The responsibility for the investment of
~ii'I:l st; fC:: unds should not be reposed in an individual officer or employee
a trust department. AH1 investments should be made, retained, or
soI,~i!:;~ld only upon the authority of an investment committee composed
efea.ii~i.,~ pable and experienced offxcers or directors of the institution.
Whe;F~~ n ithei trust instrument definitely states the investment powers
ht thenLr~ustee, the terms of ;the instrument must be followed faith-
fidljeo~ If it should become unlawful or impossible or against public
pohcy to follow literally the terms of the trust instrument, the
trusteee should promptly seek the guidance of the court about vary-
ingq or iterpreting the terms of the instrument and should not act on
its own responsibility in this respect except in the face of an emer-
gency, when the guidance of the court beforehand could not be
obtiamied. If the trust instrundent is silent about trust investments
or~ if it expressly leaves the selection and retention of trust invest-
mnents to the judgment and discretion of the trustee, the latter should
be governed by considerations of the: safety of principal and de-
t~pendability of income and not by hope or expectation of unusual
gain through speculation. However, a trustee should not be con-
tenit w~ith safety of principal alone to the disregard of the reason-
tole income requirements of the beneficiaries.
*It is a fundamental principle that a trustee should not have any
personal financial interest, direct or indirect, in the trust investments,
bought for or sold to the trusts of which it is trustee, and that it
cshou~ld not purchase for itself any securities or other property fromt
ai ny .of its trusts. Accordingly, it follows that a trust institution
tshrould. not buy for or sell to Its estates or trusts any securities or
other property in which it, or its affiliate, has any personal financial
Tii terest,' and should not purchase for itself, or its affliate, any securi-
s- ties or other property from its estates or trusts.

L.. SmaroN 1. A trust institution is entitled to reasonable compensa-
fictib for its services. Compensation should be determined on the
basis of the cost of the service rendered and the responsibilities as-
mimed. Minimum fees in any community for trust services should be
Uniform and applied uniformly and impartially to all customers

t ir.'ARTICLE VI~. Promotional E~fort

SEcTION i. Bduertisin~g.--A trust institution has the same right as
any other business enterprise to advertise its trust services in ap-
propriate ways. Its advertisements should be dignified and not
overstate or overemphasize the qualifications of the trust institu-
.I tions. There should be no implication that legal services will be
rendered. There should be no reflection, expressed or implied, upon
other trust institutions or individuals, and the advertisements of all
trust institutions should be mutually helpful.

representatives of trust departments is based upon the same principle

as that of advertising. Trust business is so individual and distine-
tive that the customer cannot always obtain from printed matter all
he wishes to know about the protection and management thei trust
institution will give his estate and the services it will render his
benefici aries.
SEC. 3. New trust department.-A~ corporation should not enter
the trust field except with a full appreciation of the responsibilities
involved. A new trust department should be established only it
there is enough potential trust business within the trade area of the
institution to justify the proper personnel and equipment.
SEc. 4. Entering corporate trust jield.--Since the need for trust
and agency services to corporations, outside of the centers of popula-
tion, is much more limited than is that of trust and agency services
to individuals, a trust institution should hzesitalte to enter the cor-
porate trust or agency held unless an actual demand for such services
is evident, a~nd the institution is specially equipped to render such
ARrlCLE VII. Relationships

SECTION 1. ~TV th pucblic.-Although a trust department is a dis-
tinctly private institution in its relations with customers, it is
affected with a public interest in its relations with the community.
In its relations wit~h the public a trust institution should be ready
and willing to give full inflormation about its own financial responsl-
bility its staff and equipment, and the safeguards thrown around
trust business.
SEc. 2. WVith7 bar.--Attorneys at law constitute a professional
group that perform essential functions in relation to trust business,
and have a community of interest with trust institutions in the comz
mon end of service to the public. The maintenance of harmonious
relations between trust institutions and members of the bar is in
the best interests of both, a~nd of the public as well. It is a funda-
mental principle of this relationship that trust institutions should
not engage in the practice of law.
SEc. 3. WiTth life ulnder~writers.-Life underwriters also constitute
a group having a community of interest with trust institutions in
the common purpose of public service. Cooperation between trust
institutions and life underwriters is productive of the best mutual
service to the public. It is a principle of this cooperation that trust
institutions should not engage In the business of selling life insurance.


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