Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-09-05
BANKING ON BROAD SCALE
Institution is Launched in
New Ysrk.
WILL Be AN AID TO COMMERCIAL GROWTH
Expected 20 Obviate Necessity for DO
ing Exchange Business with south
American Countries Through
European Clearing House.

NEW YORK, Sept. 4-Plans were made
at a meeting of the directors of the
Trust company bank for the for
mat of an international banking insti-
tuition. capitalized at S1O,OOO.OOO and de-
signed especially to operate in Latin
American countries.
The scheme involves the consolidation
Of the Mexican Trust company bank and
the Corporation Trust company. The COM
binatlon Is TO be known as the Interna-
tional Bank and Trust Company OF Amer
lea. The directors of both the merging
corporations have signed the agreement.
A majority of both the concerns have al
ready signifed their approval of the plan
informally, and a meeting Of stockholders
to give formal approval Of the merger will
be held within the next three weeks. 1t
is expected that the combination will be-
come effective about October 1. Both the
Mexican Trust Company bank and the
Corporation Trust company have broad
charters under the laws OF Delaware The
new cOmpany's charter will embrace the
features Of both Of them. Branches Of the
Mexican Trust Company bank are estab-
lished in several Mexican cities as fol-
lows: Guadalajara, Pachuca, Monterey,
Tampico, Aguas, Colientes, San Luis Po-
tosi and Pueblo. 1t also has agencies in
New York and Chicago
VIII Utilise Present Branches.
The new company will utilize the
branches already established and It is
planned to establish branches at sixteen
leading cities in Mexico. Branches are to
be located also in Havana, Buenos Ayres,
Rio Janeiro, Valparaiso and other South
nI
the opportunity develops.
The general clearing house for the vari-
Gus parts of the corporation will be To-
Gated in New York The company will not
do local banking business, but its special
effort will be to facilitate the remittance
Of exchange between cities of the two
countries. Efforts will be made to divert
to New York the very large amount Of
Latin American exchange that now goes to
London. Berlin and Paris.
w. H. Hunt, who was the organizer and
is the president Of the Mexican Trust COM
pany bank, will be the president OF the
new corporation. Charles Francis Phillips,
now president OF the Corporation Trust
company, will be first vice president. The
board Of directors will comprise substan-
TALLY the two existing directorates and
will contain several other men In addition.
In the Directorate.
The directors will include ]. sloat Fas-
sett, Elmira; G. r. Carrier, Elmira; w. j.
Hilands, Chicago; Charles 1. Berg. St.
Louis; Silas B. butcher, Brooklyn; Frank
B. Robinson, New York; William T. Wat
son, former governor of Delaware; Joseph
| @. Deane, New York; Russell Whitcomb,
| New York and Baltimore; John H.
Maughan, New York; l.. @. Mitchell, Mime
apolis; DR.. ]. B. Murphy, Chicago; Frank
l.. Torres, New York; Isaac NJ Hutchinson,
Mexico City; J. o. Rice, treasurer of the
Me16can Trust company; P. H. Sercombe,
Mexico City; James Virdin, Dover, Della.
Ignacio De La Tore, Mexico; Frank R.
| Crocker. Charlton, Ia, and r. M. Nelson,
Baltimore.
The Mexican Trust Company bank was in
corporated last year, with a capital OF
81, 900 900, this amount being soon increased
| to $1,000 900. The bank opened its prin-
cipal Offices in the City of Mexico ON June
IS. 1901. Senior Don Ignacio De La Tore
one Of the foremost capitalists of Mexico
and son-in-law of President Diaz, became
one of the directors of the institution
The Corporation Trust company is allied
with another corporation, whose title is the
Corporation Trust company Of Delaware
| The former institution was the first cor
poration created under the present cor
poration laws Of the state OF Delaware.
Purpose and scope.
In regard to the consolidation, w. H.
Hunt said: 1.-The Mexican Trust company
was the first banking institution to be
organized in the United States for the exc
cution OF an exclusively foreign business,
It was among the first American institu-
tions to establish a system OF branch banks
Soon after opening our business in Mexico
We realized that the banking business in
that country was in its infancy, and was
susceptible to development to a remarkable
extent. The condition of our bank at the
end Of the first year clearly demonstrated
the practicability and profit OF international
banks with New York as a center. The
policy OF our bank has been In thorough
harmony with the financial methods of the
United States and it has conducted its sys.
tenn OF banks in Mexico in accord with the
requirements Of that government.
No Longer to Go Abroad.
"It is a well known fact that up to very
recently there was almost no banking com
bination between the Latin American eoun.
tries and the United States. but our manu-.
faeturers are rapidly developing Pan.
american lTduei dltnOuBn our uletuCOS nave
been hampered by the inadequacy OF inter
national banking arrangements. We are
convinced that New York is to be the fu.
ture financial center Of the world. 1t /,
preposterous that the settlement OF trad'
balances between American countries SHOULD
continue through the banks OF Europe Tn,
American banking system must be developed
in foreign countries. Il will be our pur
pose 10 AFFORD a means by which American
manufacturers and exporters may settl,
their balances through banks pledged I,
American interests. with New York Cit
as the clearing house. The increase OF ou
capital to StO.oOO.OO0 will provide means 70
the expansion Of our business. We shal
expect to do not only a banking business
but to afford our assistance in the building
up OF those American countries whose nat
ural resources are so well known but hith
erto have lacked the organized capital neces
sary for their greatest development"