436 WILLIAM P. GEST 



of a brief of title, and all careful persons taking a conveyance 

 or mortgage submitted the papers to counsel before settlement 

 was made. The increase in the number of real estate trans- 

 actions and the amount involved led to the formation of com- 

 panies which undertook to insure the purchaser or mortgagee 

 against all loss from defective titles. These were first allowed 

 in Pennsylvania by the corporation act of April 29, 1874. 

 These companies joined with this power to transact the differ- 

 ent kinds of business theretofore conducted by the trust com- 

 panies. 



The history of trust companies in Philadelphia, which is 

 typical, may be roughly divided into five periods. 



First. — The early period of life insurance, which was grad- 

 ually given up by the older companies when the newer style of 

 business involving the payment to agents of large commissions 

 was introduced. 



Second.— The inception of the trust business, which may 

 be dated from the amendment to the charter of the Pennsyl- 

 vania Company for Insurances on Lives and Granting Annui- 

 ties, in 1836, and the incorporation of the Girard Life Insur- 

 ance, Annuity and Trust company, in the same year. 



Third.— The introduction of the safe deposit business, in 

 1866, largely by the incorporation of the Fidelity Insurance, 

 Trust and Safe Deposit company. 



Fourth.— The introduction of the title business, which 

 may be marked by the incorporation of the Real Estate Title 

 Insurance company of Philadelphia (afterwards changed to 

 the Real Estate Title Insurance and Trust company), in 1876. 



Fifth.— The present period of increased activity in the fi- 

 nancial branches of the trust companies. This period has been 

 marked by the rapid increase in their number and resources, 

 and may be connected with the large increase of gold and cir- 

 culation since 1896. 



It is interesting to observe how the more important steps 

 have been taken at intervals of about thirty years— equivalent 

 to a generation— the first bank, 1781: the first annuity com- 

 pany, 1809, 28 years; the first trust company properly so called, 

 1836,' 27 years; the first deposit company, 1866, 30 years; the 

 vast expansion of the trust company business, 1896, 30 years. 



