The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-06-28

Combinations Of Capital and Some OF
the Notwithstanding Schemes to
pakc Away Customers From Com
;xtitors ut a Losing Rate-fseciprO-
city Among Banks in Dealing With
the PubIic-Nild Cat F~inanciering
Not Conducive to Public Confidence.
At the fourteenth annual session Of
the North Carolina Bankers Aso-
citation, held at Wrightsyille during
the last days of the past week, Mr.. A.
A. Thompson, of Raleigh, delivered
the following address. He said:
The proverb ''competitior is the life
of trade is generally accepted as true
and it is equally true that It worries
the life out Of the competitors and
cuts into their profits as Well.
When the world first made use Of
the expression and stamped It's up
prevail no doubt reference was made
to business OF a village or of a town;
but under present conditions business
of almost all kinds has overflowed
nejghborhood boundaries and extends
not only far beyond counties but into
adjoining and distant States.
The larger corporations, quickly
realizing the changing conditions, met
the situation either by absorbing OF
crushing com petitors, SO that in many
very important lines competition has
been eliminated, and yet business con-
tinues to expand and abundant life is
still in evidence.
Railroads traversing States once
fought vigorously over the limited
amount OF business offering, have
found that IAN understanding as the
traffic grew in proportion. would en-
able them to satisfy existing stock
holders and multiply both stock and
bond issues.
About Combinations Of Capital.
Even ia your own business there
have eel repeated instances where
large Institutions have, by combin-
Ing their resources, eliminating both
expense and competition, gathered
rich returns in increased business and
advancing shares.
All this has been going on in the
face of the President and Congress
and in spite of Corporation Commits
sions, both State and national. These
things are referred to, to prove tina,
AN understanding pays-the closes
In North Carolina and in your bust
ness particularly, such, close aftilia-
tlons may be possible, but a.
present they are neither prac-
cable nor desirable; but &
better understanding and more
cordial relations could in my opinion
be established without sapping the life
of trade and without destroying legiti
mate competition and should in fac,
make the lives Of each of you easier
and your shareholders better satisfied
How, you may ask, can you put you
theories on a working basis? Ny frs
answer is that this very meeting Is {
step in the right direction. CordiaIit.
could not exist between strangers
hence the necessity Of making eacf
others acquaintance and cementing i
into friendship.
The clearing house in the large
cities is another step but you shoule
not stop by forming such association
but should have frequent meeting
every year, discuss problems commo
to all and arrive at the best solution
OF these problems and then faithful,
carry out the conclusion.
in counties having no clearing hous,
the banks in these counties shoult
adopt some plan that would enabl,
them to meet and remove as far a.
Iossible causes Of friction.
The Crusty, Crofty Policy Loses Out i,
the End.
In ordinary affairs of life each o
you have found out that what yo,
give O get" Rarely will it be fount
that a crusty, crafty, canny natur,
knows anything about cordial rela
tions and if any of you are cultivatin.
these characteristics stop it. or yo
will bring them to a full fruition an,
lind that at the same time you hav
been sowing a crop of tares which i
nme of harvest will trouble YOU no lit
We better not SOW them now an
save the trouble of gathering Their
later to be burned
l nave suggested a few things tina
would be done to promote cordial re