The Birmingham age-herald., 1902-06-10
9algfRS' THyST
 Y 5E.kGs F>]RMED Letter Issued Giving Full De-
 tails of the Plan SIGNED BY |. D. SCUOOER Capital Is $5,ooo,ooo and It VIII Be Entirely Invested In U. s. ana State eonds-$45, 100000
 Surplus.
SIGNED BY |. D. SCUOOER

Chicago June 9.--A circular letter dated New York. June B. has been issued on the letterheads of the North American Trust Company, and signed by s. D. scudoer' 135 Broadway, New York, giving the de- tails of the plans for combining national banks in all state capitals and hnanclal centers under one ownership, one oanK in each center At the top Of the circular' which is marked "confdential,' and sent to each banker with whom the company is negotiating, is the following: Amer lean Bankers Corporation, capital s5,oOo,- GOO, surplus $45,0OOOOO. chartered under the laws of New Jersey, general corpor- ation act Fifty thousand shares, par value s1OO at 5000 per share"
 The circular, which is dated June 5. states that a corporation has been formed in New Jersey with $5,oo0,OOO capital to purchase and control a number of na- tional banks, also state banks whenever it seems profitable to do so. The only taxes payable will be the annual one tenth of one per cent on the capital
 The main office (nominally Jersey City) will only be the meeting place for the stockholders once year
 No deposits will be accepted by the parent organization which will confine It's operation to the investment of capital and surplus. It's first purchase will be large New York City national bank; iE fact, New York City will be the prac- tical headquarters, and from there tfe regulation and transfer of the sr:plus boIa tO banks throughout the country will be carried on. The officers of the New York City bank will 2lso be the executives of this corporation.
 Special Features.
 Special features of the plan are: ..- Encouragement of the dangerous meth cd of paying high interest rates on de- mand deposits In it's place larger lib- erality to customers in the exchange or checks and the cashing of drafts with bills of lading attached and other col lection facilities only made possible by such a cooperative branch banking plan. Avoidance of unnecessary accumulation of balances when they can be profitably usued in another section. With the ex- ception, perhaps, of the main or center bank in New York City, only the bare controlling interest of the out of town banks will be sought, so that the largest possible number of local stockholders may share the profits and be interested in the good will of the various institutions own ed by this corporation. The aim will be to own in each state the controlling inter- est in at least one good bank which In itself will have sufficient surplus to en- able the purchase or control of several | local organizations
 interested In Bonds. The circular then continues:
 The capital of this corporation &5O0o,- | OOO) will be entirely invested in United States and state bonds Such a state ment verified to the public from time to | time by the parent organization should | add to the standing of all the institu- tions owned by It.
 The location and capitalization of the | branch banks will be so arranged that | il v~rious seasons of income end outgo l (depositing season and borrowing season. east, north south and wesD will enure 1 to thc advantage of ail
 | 1t will be noted that the central idea is the proposition to utilize to its fullest 1 extent the large credit of such institution | by means of numerous small capitaliZa- 1 tions throughout the country. The fact l that it would not receive deposits at head
 quarters, nor directly transact banking
 business. thus making a run" on the
 parent organization impossible, would | prove of great value to the various banks | owned by it. The corporation would sim
 ply stand as the dignified, rich owner of numerous thrifty banks throughout the
 the United States. ready at all times to | throw its influence and facilities into | that section of the country most needing
 them. Of what an advantage such a 1 Democratic organization would ultimately | prove to the banking and commercial in- | terest of the country, can hardly be call | culated. As to the profits, they would l be such as to satisfy the most exacting