The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1898-10-17
That Bothers
Bankers.
CONSOLIDATION
And What the Local Bank
ers Think of 1t.

minds of the bankers in this city dur
ing the past few weeks.
The men at the head of Worcester
financial institutions are noted for their
reserve and mature elaboration in all
matters, and on this subject, one
which has awakened widespread public
interest throughout the state, that
reputation is upheld.
For the most part the banking men
of the city are averse to discussing
the subject and, although each has his
opinion, he is backward about express
ing 1t. Many of those who do, talk
Suardedly and few are willing to take
definite stand in the matter.
This backwRrdness on the part of
men who have made finance the study
OF their lives and who are largely to
be credited with the fact that Worces-
ter has attained to the enviabie posi-
ton Of the second city in the common
wealth, does not augur well for the
HUBS brand new financial move.
several of Worcester's best known
banking men have been seen by rep
resentatives of the Spy and their
opinions upon the subject are given
herewith. That such men as President
W ate or the First National Bank and
Col, @insloW/shOuldd decline to discuss
the matter for publication is. to saw
the least, significant. The hesitancy of
others seen on the subject also goes
10 show that the banking men in this
city at least are by no means united
upon the feasibility of the Boston I'M
dertaking.
Since the Boston project has develop
ca INTO an assured fact, the question
1G ieaA r.,~s tTc
sohdatlon IS good thing for Boston.
why is it not propertionately good for
Worcester BY The Spy, this ques-
tien has been submitted to the bank
ers, and they have one and
all answered that there is no need of
and not the slightest possibility of any
such thing in this city. In explana-
tion of the situation, they cite the fact
that where the banking business has
almost been done to death in Boston.
worcester at present has no more
banks than she really needs in .propor-
ton to her size and business import
ance 1t is also claimed for Worcester
that the financial institutions of no
other city in the state are in better
condition than those Of this city.
Something over 1000 shares in the
stock of the Boston banks marked for
liquidation are held in this city. The
institutions by which these shares are
held are the Worcester Five Cents Saw
ings Bank the Bay State Savings Bank
and the Peoples Savings Bank. the
worcester County Institution for Saw
lngs, the Mechanics Savings Bank the
polytechnic Institute and the State
Mutual Life Assurance Company. Much
OF this stock has already been deliy-
cred to the new syndicate and settled
FOR, and all IN this city will doubtless
be taken up in few days.
The opinions of some of the Worees-
ter bankers upon the consolidation pro
ject follow
The Worcester County Institutions
for savings holds more of the stock in
the national banks marked for liquida-
ton than any other bank in this Vi
cinity.
Charles A. Chase, the treasurer of
that institution, told The Spy man that
personally he favored the plan of the
savings bank committee.
The Worcester County Institution
for Savings has not yet signed the saw
ings banks agreement, however, said
Mr.. Chase, and the chances are about
even that it viii not. The proposition
to throw the old employees of the nine
national banks out of their positions
has aroused sentiment in the in
vestment board of the institution
which has so far prevented an agree
ment being reached"
Mr.. Chase said that he had conf
dence in Kidder, Peabody & Co., and
believed that their proposition 10 take
care Of the present employees of tue
| marked banks would be lived up to,
and that the men would all be provided
for either by employment or by pen
sions. He considered the estimated
profit of 100000 to the new banks as
a result of the liquidation Car too large
and stated it as his opinion that enough
bad paper would be found in two or
three Of the banks named TO eat up
the profits.
Asked if he thought the movement
toward consolidation in Boston bank
ing circles would be initiated in this
city in the near future, MIR. Chase re-
piled that he had no intimation of any
such action and he did not consider it
at all probable. He could not quote
figures, but said that it is a well known
fact that the total capitalization in
banking circles in Boston is far in ex-
cess of that in this city in proportion
ITO the capitalization of the banks
themselves" said Mr.. Chase, must be
added the capital of the numerous
trust companies in Boston, making the
total vastly in excess of Worcesters
bank capitalization in proportion to the
size of the two places. These COM
panies are of course on the lookout for
business. The result is fierce compe-
tition resulting oftentimes disastrous
ly for the banks.
Concerning the report that the pro-
posed change would result in q loss Of
business to the new bank, Mr.. Chase
did not put much credence in It.
Why, IL a new bank was to open
for business in Boston today said he,
sit would start out with enough busl-
ness at the outset. 1t is all in the man
agement in such things, and the new
bank will stand an even chance"
President A. H. Waite of the First
National Bank did not care TO discuss
the subject of bank consolidation for
publication Il have my views upon
the subject said Mr.. Waite, but l
prefer not to express them at this
time" He did not consider it at all
likely that any attempt to consolidate
any of the banks of this city would be
made.
Henry S. Pratt, OF the Ware-P Pratt
Company, was one of the gentlemen
seen. He said: Il have been in Que
bee until recently, and am not as thor
oughly in touch with this subject as 1
wish l was. 1t does not seem to me,
however, that the proposed bank con-
solidation is a, desirable thing. Such a
consolidation will affect the merchants
in greater or less degree, and it does
not seem to me that the banks rep
resenting the consolidation of the ones
selected for that purpose can hope to
retain all Of the trade which formerly
went to the different banks When
asked if he thought there was any pos
sibility of a consolidation of any of
the Worcester banks along the line
adopted in Boston, Mr.. Pratt replied
that he did not think so I'VE have
no more banks than we need
here" said he and the con-