The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-10-26
NJ CORNICK GETS
UTAH NATIONAL
Purchases Control of the lnSti-
tuition and Will Become
Its President.
CHANGE OCCURS MONDAY
PRICE IS SAID TO BE BETWEEN
$4,000 AND $4,000.

W. S. Mccormick yesterday purchased
a controlling interest in the Utah National
The number of shares changing hands
amounted to 81 per cent of the capitalize
ton. which stock was turned over to Mr..
i MGGoTnlek yesterday; The bank is cap
banks shares was 500, but the stock has
been quoted at $50 for some time past
ana while definite information on tho
point was not TO be had. it is understood
that the purchase price amounted TO be-
tween $4,000 and $4,000
1t is true that a controlling interest
IN the Utah National bank was sold yes
terday 10 w. 5. Mccormick and the stock
placed in his hands, said Joseph Nelson,
cashier of the Utah National. yesterday
The stock has been quoted a $50, and
the price paid was IN excess of this fig
ure.
The change in the ownership will make
no difference in the management. al
though special meeting of directors will
be held on Monday next when in all like
hhood Mr. Mccormick will be elected
president l will continue TO serve as
cashier
Reason for Change.
There are a number Of reasons on both
sides leading uD to the present control.
National banks are at all times handi-
capped by the existence of the law which
says they shall not lend over 10 per cent
OF their capital TO any one company. firm
or corporation. while private institu-
ton such as the Mccormick bank is under
llO SUCH T6SlTlcllOLS.
National banks are also compelled to
deposit a certain percentage of their de-
DOsitS with other national banks to be-
Z held : a reserve fund for use I'm case OF
emergency. In the case OF city banks
such the Utah National. this percen-
tage amounts TO 1919 per cent. while a.
further 1212 per cent must be kept in the
form OF currency IN the vaults Of the in
stitution at all times In the case OF the
smaller national banks throughout tha
state this reserve fund is cut down to-
I En1F e til,
kept on deposit with some other national
bank.
The wide connections of Mr. Mccormick
place him in "A position virtually to con-
troll the disposition of hundreds of thou
sands of this reserve money from banks
in other cities. which. however. he has
been unable TO handle a private insti-
tuition. He will now be able to throw this
( business to the Utah National with him.
/ self as president and the two banks can
work together in the handling of the
/ loans This is believed to be. the main
reason which actuated Mr. Mccormick in
! obtaining control of the institution
History of the Banks.
The Utah National. bank was organ
| lied something like ten or twelve years
ago. its president prior TO about seven
years ago being Joseph A Stout, now OK
Ahe firm of Sorenson, Stout & Co. Jo-
Seph Nelson. one of the heaviest indi-
vidual shareholders, came into the in
stitutiOn as cashier about four years ago,
WHGn COHlIOl WAS OS EISSlGtA(
Joseph F. Smith of the Mormon church.
and allied interests The bank has pros
pered under this management, and the
deposits from year to year show a steady
/ increase At this time Anthem H. Lund
/ is president and c. w Nibley vice pres
| ident.
w. S. Mccormick began business as a
| banker here under the style w 5 Nc
J Cornick & Co in 1879, and has continued
without change of any kind up to tho
/ present time The bank was one of tha
I earliest established in the state. and
commanded a large patronage practically
/ from the start, until it is now recognized
as one of the foremost financial institute
tons in the west.