Records of Securities Department The typical records kept in the customers' securities depart ment embrace the following: 1. The securities received book, in which are entered all securities placed with the bank by customers for safe-keeping. The entries comprise their numbers, registered holders if any, titles, maturities, interest periods if they are bonds, the total involved, from whom received, for what account, and a correspondence number.
2. The securities delivered book records all securities passing out of the bank's custody, under stock or bond numbers, descrip tion, total, to whom delivered, for what account, and reference number.
3. The temporary withdrawal book contains a record of all securities taken from the vault temporarily and redeposited; such temporary withdrawal is for transfer, registry, exchange, or to get definitive bonds for interim certificates. The book is examined every two or three days to see that the entries are closed out or accounted for.
4. The transient book covers all securities which pass through the department but which are not held for safe-keeping; it is primarily to reduce the entries into the ledgers and is of the size of the ledgers; the entries are about the same as those in the securities received book and are closed out within a few days; record is kept of the purpose for which the securities are sent to the bank.
s. The ledgers—for individual, bank, and foreign customers —contain a complete record of all the securities held for safe keeping, and are posted from the securities received and the securities delivered books.
6. The bond number book and stock number book contain complete alphabetical records of all the securities held, with their description, numbers, denominations, registered holders, and the totals for each and every account.
The great majority of stocks and registered bonds in the department's custody are registered in the names of its "nomi nees," who are usually a couple of leading men in the depart ment who are appointed by the bank to serve officially in this capacity. Non-dividend-paying stocks are usually not trans ferred to the bank's nominees, as the cost of the transfer tax would be thereby incurred. The nominee, being the registered holder, has to look out for dividends and interest as they are paid.
The stock exchange publishes weekly a list containing a record of dividends declared, amount of dividend, date of closing of the transfer books, and date of payment of dividend. Clerks in the
department go over this list and check off those stocks whose transfer books close during the ensuing week; these respective stocks arc looked up in the stock number book and a list of the total held for each account is prepared and proved against the ledgers. Credit tickets are prepared in advance and laid aside against receipt of the dividend checks, when the credits are put through. A record of all such credits is kept in a dividend book. If any stocks for which the transfer books are to close the fol lowing week are found standing in names other than those of the bank's nominees, the department, unless otherwise instructed, enters them in the temporary withdrawal book, takes them from the vault, and sends them to the transfer agent to be transferred to the nominees. If the department fails to have such transfer made before the books close, it is put to the necessity of reclaim ing the dividend from the registered holder; this may occasion great inconvenience, especially if the holder resides at a distance or abroad; and, by custom of the Street, the holder is privileged to deduct z per cent of the amount of the dividend, if he so pleases, though in general this penalty is not inflicted.
Miscellaneous Duties If the volume of bonds held in custody is large, the task of clipping coupons as they become due becomes an important part of the work of the department. The greatest amount of coupons are payable in January and June respectively. Coupon en velopes are first prepared from the ledgers, and a list of the envelopes is prepared. As the coupons are cut they are put into their proper envelopes, and the total face value placed on the envelope and the list. When the proper certificate of owner ship is attached to the coupons, they are turned over to the note teller, who receipts for them on the list and in due season accounts to the owners for the proceeds. Generally powers of attorney are lodged with the bank to execute certificates at the time the envelopes are prepared; where no such power has been given, the coupons are held awaiting receipt of the certificates, and if any are missing after the due date of the coupons the owners are notified.