Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1911-07-06
MONEY TRUST ABOUT
To De FORMED.
National City Bank to 60 into Bust
ness fer Itself f---Will, Ii is Said,
Skim theCream of Business.

New York, July 6.-Hlndicapped by
the national banking laws, which limit
the activities of national banks, and
prohibit the making Of certain classes
of investments, tue directors OF the
National City Bank, the famous Stan
dard Oil financial Sibralter, are gong
INTO business for themselves to skim
the cream off the business OF the co'ln-
try. Wall street today cleared up The
mystery surrounding the recently or.
ganjzed ten million dollar National
City Company. II will, well posted
hnanciers declare, occupy dlstIhct
field in the world Of finance, and
will come closer to becoming real
money trust" than anything pre-
viously conceived by the big interests.
The national banking laws, and the
courts OF the country generally, have
ruled against operations in miscellan-
eous stocks by national banks and
they have ruled specifically against the
ACQUISITION and holding by one national
banh Of stock in another national bank.
To get around this. the Natiousl CITY
COMPANY has been organized. 1t IS TO
re under the absolute and perpetual
control Of three trustees, who must be
officers or directors. Of the National
City Bank. ~,
The present trustees are james Still-
man, present chairman OF The nationa'
.itv hoard: Frank A. Vandcrlip, its
president. and Stephen Palm er, a dl-
rector. The new concern will immec-
,a,sIv take over good part OF the
bank stocks now held BY the National
;,ity and much Of its bond and stocks.
These can be manipulated and dealt IN
shcn the market is favorable without
any awkward interference" ly the
national bank officials.
The chief field Of the new concern
sii be financing new enterprises and
extending aid to those already organ
;zed. There is more money in this
shan in any other branch OF the bunk
ing business but it is the line watched
the closest by the national bank ex-
eminers. Fearing no Interference from
Washington, the National City Com
pany will furnish needed funds to the
aree railroad and industrial enterprises
snd thus be able to dominate them. IL
will also be possible for the company
t prevent the building OF rAilrt ads OF
{ ,e formation Of companies. which are
n 1t sure to be revenue producers ina"
much as through its financial connec-
tions. i, wil le allie te prove other
capitalists extending the aid which it
refuses.
Wall street also pointed out today
that the new company may go slep
further and prevent the bul ding of
rev railroads, or the establishment OF
competing industrial concerns, that
might cut down The dividends of exist
ing corporations.
That tue persons connected with the
organization of!ihe ncw company feel
sure OF their ground is shoSn by the
bold explanation given for the organl,
cation of the corporation, which, IS to be
a close one, dominated entirely by The
National City bank stockholders. 1t
says: The new company IS formed
for the purpose n-part Of transactlng
for its patrons certain liues OF profitable
business Which though often tran
sacted by bankers, are not expressly
Included within the corporate powers
OF national banks. Among these are
the acquiring and holding Of real estate
securities, stocks aud other properties