from the consequences which should follow such disobedience of the law. Moreover, when the trust company shows a profit the "trust" appropriates it, and when a tremendous loss is sustained the insurance company or the savings-bank must bear it.
An illustration: A, B, and C form a "trust." A and B are president and controller of a savings-bank and an insurance company respectively. They organize a trust company with $1,000,000 capital, of which the insurance company furnishes the majority; they then elect C president and controller of the trust company, and make him their associate or a dummy. The trust company receives $5,000,000 of the people's money on deposit. The insurance company deposits $5,000,000 of its surplus funds, and the savings-bank $5,000,000 more. The trust company now has $15,000,000 of the people's savings in its control with which by law it is allowed to do certain things; but what it does with the $5,000,000 of the savings-bank and the $5,000,000 of the insurance company the law specifically says neither one of the institutions can do itself. The "trust" then purchases for $5,000,000 the stock of an industrial corporation.