New-York tribune., 1899-12-03
BIG INCREASE OF STOCK.
NATIONAL CITY BANK SURPRISES FINAN-
CIAL CIRCLES.
ANNOUNCES ITS INTENTION OF MULTIPLY
ING ITS CAPITAL OF N.ooO0OO BY TEN

ANNOUNCES ITS lNTENIloN or MOHAA-
ING ITS CAPITAL OF rooO.oN BY TEN
Tho National City Bank yesterday gave large
part OF Wall Street a surprise by announcing nS
intention to increase tenfod It's capital stock the
following statement being issued in explanation Oh
the contemplated step
At a recent meeting OF the directors OF tne "a. a.
tional City Bank II was voted TO recomrneno ~ ~
from s. oooooS to 100000 This increase. In the
judgment OF the directors, is advisable for hun'"e'
them be meptionsd the ycrx Tssrapn al
the National Ranking & act nr by Wncn direct loan Of
more than one-tenth Of its capital STOCK 20 y
ton does not apply to discounts OF commercladI
paper 1t does extend to loans, even when secured
by the for best Wheh dre is the greatest demand
large by single Arms o. or Soi o4egn and
domestic business during the las last few sf ah the
Gifv RANK. both at home ano abroad, constitute
further for Of Or n TO
Under the new arrangements, u approves oy h the
Shareholders as there is no doubt they wli be' me
bank will afford to Its depostors security as lo-
lows:
Capital all paid oo 600 600
shaTehodsTTs der IaiSaty aSty 10000
ro,., .................s25 .s25, 100000
II is believed that such security all Of which Is
~ The most solid character the shareholders being
Of such class to make their liability OF equal
value with the capital itselD will attract to the
most conservative business
SPECIAL MEETING CALLED.
President stillman said yesterday afternoon that
tho stockholders special meeting to take action on
the proposed increase of stock would be heid on
January q Part Of the additional capital would De
used In payment for and improvement OF the ola
Custom House property. purchased a few months
ago by the National City Bank The capitalization
would have been increased. however even II that
transaction had not been effected, and was step
In banking in line with the industrial development
OF the country. Formerly there were engaged IN d
given industry. say. thirty firms. each OF which
sought comparatively small accommodation from
the banks, backing Its application with the re-
sources and the business reputation OF the partners
With these thirty houses consolidated In one OF the
gigantic corporations Of which so many had been
formed OF late the accommodation desired took tho
form Of a single loan of 10000. or perhaps NOooO"
at a time a loan which bank with present
capitalization could lawfully make. The result was
that the banks were obliged to make their loans TO
dummy applicants representing the borrowing
corporation, which a technical evasion or the
law But a National bank. continued Mr.: Stllman,
was a semi governmental institution and anything
Feeling this the National City Banks directors had
decided to recommend increase Of the capital OF
that institution 10 a sum which would make IL
possible .or the bank to make loans on scale
Commensurate with the requiremen;s o. Of modem S,,a
in this city would soon announce similar pohcy
step proposed to be taken by his bank would have
an important and distinctly favorable influence In
the financial centres Of England and the Continent
THE BANKS DIRECTORS.
Mr.. stillman added in answer to a question. that
II was not designed to use any part OF the addi-
tonal capital in the acquisition Of any other bank.
The directors of the National City Bank James
stillman Samuel Sloan. Francis NJ. Bacon. Robert
Bacon. Cleveland II. Dodge Charles s. Fairchiid
Henry M p5, t09 n 4 sthfn Ma
Rockefeller. John w. Sterling. Jacob H. schin,
William Douglas Sloane Henry A. c. Taylor and
H. Walter Webb.
These directors represent many important inter
ests. but the STANDARD Oil Interests according 10
the weekly bank returns. Issued yesterday by the
tonai City % Banks deposits aggregate ,le
the other Items being as follows: Loans, s7sGt4oo;
posts and loans are more than twice as large as
those OF any other member OF the Clearing House
with deposits OF si6 900 and loans Of B7s7sOo
s Ts eapa Gy Rana "a Is Geat Stock
turn to an investor at the present price would be
only q of per cent year net dividend smaller
by far than that of any other local bank Just
was 800
City Bank and the Third National Bank an
nouneed, and year or so ago the National ts Slty
Bsnk interests vs. secgfed control Of 6. the ms second Ns
head Of the National city Bank since 1891, being
TSe city Bank IS an IN
the field OF international finance, and its directors
nearly ns as possbe in the uneG states the
part in National influence Of the Bank Of England
This purpose Is generally understood to have been
the leading motive which impelled the National
city Bank to purchase the Custom House its bid
OF Sc Pcs 900 for which accepted by the Secre
tary of the Treasury July of this year Ac-
corng n TO the seseb pans s d 20 e s as IN b
terror Of the Custom House building, which is one
OF the massive and imposing structures in ths