The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1902-01-18
CHAIN OF BANKS
Runlors Of Gigantic Schemes
to Absorb New Jerseys
Financial Business.
PRUDENTIAL VS.. MUTUAL LIFE
Local Banks and Trust Com
panies Said to Be Array
ed on Opposing Sides.
GEORGE v. YoUHG's COUP
GEORGE v. YOuHG's COUP
Bayonne Trust company's
Election Last Night-Love
Feast After a Scrap.

From certain movements among fnan-
cial institutions in this State and New
York the Newark News printed story
/ last night to the effect that two chains
Of banking interests are being formed,
each striving to control the banking
business of the State.
The one circuit ii is said to be composed
of the Equitable Life and Prudential IN
surance Companies. the Fidelity Trust
Co, Merchants National Bank. Second
NatioDal Bank ana German National
Bank all of Newark: a Jersey City bank
and trust company, Trust Co. OF n J. in
Hoboken, Union Trust Co. and First Ma
tional Bank Of Elizabeth; Mercantile
Trust Co. and Western National Bank Of
| New York and a trust company in PLAIN
| field.
Arrayed against these powerful bodies
is the second circuit headed by the Alu-
tuaI Life Insurance Co. of New York, New
/ York Life Insurance Co.. United States
! Mortgage and Trust CO., Commercial
Trust CO. Of Jersey City, Hudson Trust
Co. Of EobolSen and now the Mechanics
| Trust CO. of Bayonne, the election last
night of Mr.. George w. Young's ticket OF
offieers proving, it is said, the truth OF
the statement Of this big merging OF m
terests.
The objects of these movements are
that they contemplate the establishment
of complete chains of financial houses 10
encompass the entire State of New Jersey
| With fountain heads in Newark and New
York. The objects of the centralizlns
movements are said to be the faeihtauon
OF the business Of the great concerns IN
terested. to give the companies conceFneu
onportunities for the investment Of large
Genital in New Jersey, which State Is SAID
fa offer better inducements for invest
nent of capital than does New York, be-
cause of the more rigid tax laws IN the
latter state.
In the combination OF interests, banks
ana trust companies occupy only sec
ondary places The dominating influences
arc being exerted by several great life IN
slranee companies. and there are IN OPP
GRAFTON, or at least in an advanced stage
ar fhe process of formation, two distinct
chains of institutions which, financial men
s.v. must result in a conflict Of business
interests, out of which must develop busi-
ness antagonism on very extensive
scale.
The Prudential Insurance Company of
Newark. which has been extending its
operations in directions remote from the
insursng of the lives of people until it.
has become recognized as one of the most
potential influences in the world Of
tinanee. is at the head, say the financiers,
Of one Of these gigantic centralizing
movements.
Closely allied with the Prudential is the
Equitable Life Assurance Society OF New
York. and these two concerns are said
ia form the substantial foundation upon
which sis being constructed massive
finarciaI structure, designed to envelop
the State of New jersey. In close COM
munity with the Equitable is the Merean-
tile Trust Company. which bears TO it the
same relationship that the Fidelity Trust
COMPANY does to the Prudential The
western National Bank of New York.
one of the strongest in the United States,
with deposits aggregating more than S50,-
oo0.0e8 and its stock quoted higher than
900. is also a close business friend of the
Equitable and the Prudential, as we'll
United States Steel Company interests are
represented in this banks directorate. Of
Il. Pierponf Morgan and Henry G. Frick
s.The allies of the Prudential in Newark
in addition TO the Fidelity Trust Conn
nanv on the three banks involved in the
recent merger movements, namely, the
second National. Merchants and German.
There. is talk that the merger scheme
conternplates the ABSORPTION of some
other local banks also. The officials OF
two concerns mentioned in connections
Yith the supposed deal deny, however.
+bat any movement known to them, is
being made by friends of the Prudential
ar any one else to secure control of their
stock.
sThe Union Trust Company of Elizabeth
ana the First National Bank Of the same
Mace. are also allied closely with the Pru-
dantial- EQUITABLE chain. The directorate
81 the Union Trust Company is made up
If John Il. Dryden, DR.. Leslie ID. Ward,
I-zal II. McCarter, Forrest f. Dryden,
Thomas ". McCarter and Frank Bergen
An are Prudential or Fidelity Trust COM
many directors except the last named.
Iyza1 II. McCarter and jerome Taylor. Of
fhe Prudential, are directors Of the First
National Bank Of Elizabeth.
There IS an impression among some
men that the New York Life Insurance
company is allied with the Mutual chain,
b,,t denial has been made that there IS
.snv business relationship between the
fsva, concerns. The United States Mort
aage and Trust Company. eG New York,
uifh assets aggregatins Ss7 ,aao, and der
nosirs of nearly $i4090e0Q, IS the closest
.,1,v 81 tbs Mutual chain II occupies the
IS, mo relative position to the Mutual Life
fhsf tl1e Fidelity Trust Company bears 70
ss,e prudential, and the Mercantile Trust
E GERMANY rs the Equitable. George N.