Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1910-01-27
BERGH DOWN On
BANK MONOPOLY
SO-CALLED HOLDING COMPANIES
DEFINED AS A POSI-
TIVE MENACE.
ONE CONCERN AT MINNEAPOLIS
ALREADY DOMINATES MORE
THAN so CONCERNS.
Madison. Jan, %.


"A new feature in banking has
manifested itself of late which. if
permitted to go on unhindered, will
eventually result in monopoly con
troll of the banking business. l refer
to the so-called holding companies
which are increasing with alarming
rapidity in various parts of the cOun-
try. One of these companies with
headquarters at Minneapolis, >own
controlling interest in more than so
banks in Minnesota, Iowa, Wisconsin
and the Dakotas. In Wisconsin, eight
or 10 banks are now controlled by
this one company. Two other COM
panies have recently been organized
at Minneapolis for the purpose of get
ting control of banks either by buying
in existence or by organizing new
banks. The same objection that has
repeatedly been advanced against
branch banking Or chain banking ap-
plies with equal force to this new
method Of manipulating the banking
| business. The Representatives of the
holding company are usually elected
to the offices Of president and cash
| Ter of the bank, and while they gen
orally have some local directors, the
management is dominated by the hold
| ing company influence, and the loans
are in the majority OF cases made to
parties residing outside Of this state
| Legislation should he had to- discour
age this evil in every proper manner"
This warning is sounded by Com
missioner of Banking NJ. c. Bergh in
| his fifteenth annual report made yes
| terday to Governor Davidson.
Speaking generally upon the sub
| ject of Wisconsin banks, Commission
| er Bergh says that the condition of
| the financial institutions under the
| supervision of the department was
very satisfactory during the past wear
The deposits in the state and mutual
savings banks increased $13,525, 372O4
! and the aggregate gain in total re
sources was $15,310. O3O.41
The trust companies now Operat-
ing under the new law enacted by the
! last legislature also show substantial!
| gains in volume of business transact
ed. All the state banks, mutual say
! ings banks, trust companies, and
| building and loan associations have
been examined at least once during
the year and the commissioner is
| again able to report that there have
been no losses to depositors m any
of these institutions. The deposit
Ors, however, were paid in full except
| such depositOrs as saw fit to sell their
claims to the directors taking their
| personal notes for same before the
liquidation took place.
Twenty-six New Banks.
TWenty-siX state banks were char
tered during the year covered by this
! report, of which tWenty-fOur were or
! gdnized as new banks, two were for
| marly national banks converted into
state banks, by surrendering their
national charters. One state bank
was required by the department to
liquidate and is paying depositors IN
full; two surrendered their state
charters and became national banks.
One trust company discontinued bus1-
ness, making net gain of twenty-five
| institutions for tine wear
The twenty-six new banks have
capital amounting to $518,0O0 and are
| located as follows: