New-York tribune., 1907-12-11
MERGER OF TWO BANKS
NO TRIPLE coAB1y4TieN.
Plan also Includes Absorption of
Mercantile By IrUing National. !

The plan which, said in yesterdays Trio-
une. has been under discussion for the combina-
ton of the Mercantile National Bank the NS.-
tionaI Bank of North America and tie Conson-
dated National Bank has been abandoned. and
the outlook now is for consOlidation-cf the lat
ter two Institutions and for the absorption of the
Mercantile National Bank by the Irving Ma
tiOnal Exchange Bank
The negotiations between the Consolidated
National Bank and the National Bank or North
America contemplate the acquisition of the lat
ter bank by the former. and If they shall be
brought 10 successful conclusion the larger in
sttution will be known as the National Bank OF
North America and will have its offices In tina
quarters occupied by the present National Bank
of North America. No 43 Exchange Place. while
the name OF the Consolidated National Bank
will be dropped and the offices OF that bank. at
Broadway and Exchange Place. will be given
up IT is learned from directors OF the two
banks that John H Edwards. As
sistant Secretary of the Treasury, will be asked
to take the presidency. If the consolidation plan
shall be carried through. Under this plan 1t is
proposed to elect a new board OF directors for
the merged bank. which will be controlled by
Consolidated National Bank interests, practi-
calIy all of the men now associated with the
National Bank of North America retiring The
latter bank is an old member OF the Clearing
House Association. while the former has up to
the present had no Clearing House member
ship Charles W. Morse and the late Charles
T Barney in October resigned from the National
Bank of North Americas board. A B. Boaru
man and Henry P. Booth succeeding them; anu
Mr. lforse also resigned as first vice-preslcent,
his successor being Alfred H Curtis VINO had
been succeeded president oy "ilnani
Hayemeyer Directors OF the bank IN aoo''0..
IN Messrs Havemeyer. Curtis. Boardildh a"N
Booth. are Morgan J. O'Brien. John h FlasieI'
Charles NJ Schwab ard Mahlon u llld.1H -
Tho rrestdent of the Consolidated NauonaA
Bank is william o. Allison VINO III Oes'
bought out the interests of E r. and u
-rboD,ae = aue11stJs Heinze and the Thon1ases
then resfgning from the board and o. r Ihon'aS
retiring from the presidency
The new plan of combining the Mercdntho
National Bank with the Irving Naeioiiai
change Bank is understood TO oe stroiisiS
o-ad nv Seth N. Milliken. PRESIDENT Oh '
Mercantile. and his friends among tle stoOh
holders vice-President Gerrish n MiliiNe
and Directors F. w WoolWorth dliu ' -
,-icbo,s of the Mercantile National. are also u
.ootors of the Irving National Exchange Bank'
and the customers OF the two fnsutu1ioA7
r,atnIv in business in the same district Op
nositton to the plan. however. has deVeiope0
s-,,, tho Morse -Ffeinze interests, VINO aro ue
s,ro,,s of placing the Mercantile IN Voiuhi''i'
ltouf5ation and distributing the assets diii"Hs
the shareholders The following letter. sisheu
bv r Augustus Heinze. who was presioeh' -
January until a few weeks ago. When MI W.
bsn s,,cceeded him; Arthur p Heinze ana MAX Max
u Scbu1tze of Otto Heinze & Co.; Charles W
Morse Stanley Clifford and eeorso D7i'
been sent out to stockholders
We beg to inclose notice calling meeting
Of the stockholders of the Mercantile NatGndI
Rank for the purpose OF co1Slder1ns lIo "Io1O %
of the bank going into iquldatlon- anu, ~, u
g.a5 ,,-iss co 10 do to authorize and take tne
UeCassa-v steps to cause the hqu1da1lon OF tl9
bank, the paying off of its deposit3rs . ana In9
6jStribution of its assets its snarehoioerS
The stock of the bank has for some oeen sell
In~ far below what its value Wou4d Prov OIt
Iioufdation in the Judgment or naJorlty o.
80 - oyyners at fully SfO0 a share below It's
IiCridating value. There would appear 10 %
no reasona bic justification for the oeeI thaI II -
-ba near future the market value OF the STOCK
Jyould reach its real value On the contrary:
there are many reasons TO believe that d SUN
further shrinkage in the market value OF tne
Tnder these circumstances it has seemed to
the undersigned that it may be wise ana IOT tne
hest interests OF the depOSitOrs and stockholders
of The bank that it should go into voluntary
Iiouidation. In any event. IL would seem proper
that the stockholders should conSloer . tns 9Ie luz
ton and formal meeting determine WnaI
course il is wisest to pursue
The special meeting called by these stockhold-
ers is set for January q. the first Tuesday IN the
month. the date which under the statute the
annual meetings OF all national banks are neid-
On that day, therefore, the stockholders VIII
probably vote on two alternative propositions
that for putting the bank into voluntary hqlida-
ton at the special meeting. and that for mers-
ing the institution with the Irving National Ex-
change Bank at the regular annual meeting, a
little later Mr.. Heinze, IL is understood bought
his large stock holdings from Edwin Gould. pay
ing more than $500 share. and subsequently
hvpothecated them as security for loan from
Mr. Gould the stock being put in at $40 a share.
II Is customary for hypothecated stock to be
voted by it's owner. but IL was said in the Street
Yesterday that in this instance the agreement
gave Mr. Gould the control of the Heinze Mer-
camille Bank stock during the life Of the loan.
John H Edwards. who Is expected to become
the president OF the National Bank or
North America, IL the consolidation plan de-
scribed shall 90 through. has been an Assistant
Secretary of the Treasury since June 80. 1895.
having for two years prior to that been private
secretary TO Leslie NJ Shaw. then Secretary OF
tne Treasury Mr. Edwards, who was born at
South Charleston. Ohio. is only about thirty-two
wears Of age He began his business life as
hank clerk and soon afterward was made assist
ant secretary of the Ohio Bankers Association
Subsequently, he was secretary 70 Representa-
t,va weaver. of Ohio. and then confidential
c,s-t in the Postmaster Generals office, resign
,n, the latter place to become private secretary
20 the Secretary of the Treasury