New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-05
That of National City Bank May
Be Nationwide.
MACVEAGH SEES CHICAG0AM
Question of Continental and Com
mercial National Bank Re-
ferred to Mr.. Murray.

Washington. Aug. 1.-Two important oe
velopments to-day marked the lhqu'y
which Attorney General Wckersham anu
Secretary MacVeagh are making into 'no
practice of national banks owning stochs
Of other banks or corporations through 'ne
medium of securities companies
Secretary MacVeagh held conference
with Levy Mayer. Chicago lawyer
which the relations of the Continentai anu
Commercial National Bank Of Chicago VIZ"
its security company the American ir''.
and Savings Bank and the absorption Vi
the Hibernian Savings Bank were ois-
cussed. The whole question then was re-
ferred 10 the Controller OF the currency
for his views.
The conference between Mr.. Mayer anu
Secretary MacVeagh was said to be TOT
the purpose of determining whether 'ne
ruling ny Attorney General Wickersham IN
the case of the operations of the Natioi'a'
City Bank Of New York was hNeiS W 80
yolye the Chicago Bank.
Secretary MacVeagh was chairman y,
the board Of directors Of the Cohtnen'"
and Commercial before he entereu VIC
Cabinet. George T. Roberts, now direct.
II the United States mint, was president VI
the Commercial National Bank wheh IL
was consolidated with the Continental
Some Treasury officials declare there 10
No similarity in the cases or the No"''
ro,.al and Commercial and the National
CITY banks Mr.. Mayer. 1t Is unoei s''oN
declared that difference between NV
80 banking laws of Illinois and New
york drew sharp line between the two
situations. a.
one Of the principal points OF the Az
tornev Generals criticism OF the coHhe'
,ion of the National city BANK Oh NC"
york with the National City company II
u,as learned to-day, was the linking OF the
..ools of tho two concerns and the lnhipi-
ton against the transfer OF one without
the other.
No,iono, hank records in the Treasury
Denartment are said to make IL appear
that the stockholders Of the Contilen,"'
and Commercial Bank participated vi 'he
stock OF the American Trust anu SANS
in much the same way, and that "heh inc
Hibernian Savings Bank OF chicago nav
ing a capital OF $4,000, was taken over
by the Continental and Commercial a le"
weeks ago the capital stock OF the DIE
hank was increased from 20oOO,Wo to *-i'-
200. 600, and the increase was used 10 take
up the stock OF the Hibernan.
Mr. Mayer, however, was positive OF a
difference in the situation, and his views
will be considered in the coming inquiry,
which is expected 10 review the relations
NJ the First National Bank Of CHICAGO
with the First Trust Company; the rela-
lions Of the First National Bank OF New
York with the First Security Company,
and the cases OF some three hundred other
national banks which have built up affilia-
lions with holding companies
When Attorney General Wickersham be-
gan his inquiry. the National City Com
pany was believed TO be an isolated case
Officials Of the departments Of Justice and
the Treasury now realize they are con-
fronted with a situation that Is nation
wide.
Controller Murrays office has hitherto
tacitly approved the security company
idea Attorney Gensral Wickershams re-
port against It. backed by tbs opinion OF
Solicitor General lehman. has raised a
question which many government officials
think the most important with which the
Treasury has had to deal in many years.