New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-06

! II is not supposed that any national bank
violates the statute IN holding stock of an
ether national bank or Of a state bank or
trust company But. dating approximately
from the time OF the beginning OK the
movement for industrial combinations
dozen years or SO ago, and the "commu-
nifty Of interest" movement among the rail
roads similar tendency became ap-
Parent in the case of large national banks
particularly IN this city. the chief financial
centre Of the United States
The banks, however could not hold
stocks OF other banks, as the Pennsyl-
vania and New York Central, for instance
acquired END held great blocks o. stock Of
| lesser railway systems; nor was he deN'oe
Of a holding COMPANY" used ~ 81 many
instances 10 bring and maintain under
single control number Of industrial con
Germs operating I'm the same FIELD, then
thought applicable 70 the banking system
Instead when = great bank desired to
enlarge its sphere OF influence by acqdlr-
! inc control Of another banking institution
that control was purchased and held by
interests identified with the bank Waicn
had decided upon the policy Of expansion
That YVES the method pursued by the
National Park Bank. capitalists connected
with the management Of which houeht
heavily in the period between February,
1898 and March. 1912, into the Para
,Iorrt Morris. Mutual and Yorkville
hanks IN the order named, the boards Of
directors Of these four institutions sun
containing several members who are als'
directors Of the National Park BANK
Since then there have been several othei
transactions of the same sort IN the IT
terest Of national banks Of this city inc
most recent having been the purchase Of
control Of the Fourteenth Street Bank by
interests identified with the Fourth Ma
tional Bank
The National City Bank, IN the same
period beginning in 1908, Instituted
similar policy on a large scale, obtaining
control Of a chain Of prosperous banking
institutions all the way from the Whoie-
sale drvcoods district. in Broadway 10
5eth street The first move was the &C
QUESTION by men closely connected WIN
the City Bank Of q controlling interest II
tho Second National Bank, IN the latter
mart Of 1SaS. James Stllman, president OF
the National City Bank, being elected us
president. an ONCE which he held until
two or three wears ago, when he was
succeeded by William A. sinonson, now
as then. an officer Of the City Bank
II Nav. 1900. control Of the Bank Of the
Metropolis was acquired and Ny. Stillman
entered its board. in which he served for
number Of years, the present representa-
tive Of the control being Samuel McRoo-
erts. vice-president Of the National CITY
Bank IN December. 1900. ~ was an
nounced that Nlr Stillman and william
Rockefeller had materially increased their
stock holdings in the Lincoln National
Bank. Of which both were elected directors
as associates Of the Vanderbilt party. the
/ CITY Bank interest AZ present being rep
resented on the board by Mr.. Stillman,
Mr.. Siraonson and william G. Rockefeller
In the same month the Fidelity Bank
BEGAN business, with AIr Stillman as vice
president. an ONCE in which his son, James
4. Sullman. a vice-president Of the City
Bank. succeeded him in January, 1910.
I Also in December, 1900, the City Bank
sroup took over the control Of the Column
/ bia Bank, Of which Mr. Simsonson is now
a director.
Two Important Acquisitions
+ In November. 1901, two more important
( ACQUISITIONS were announced The Ma
tioral City Bank interests bought control
Of the National Butchers and Drovers
/ Bank. and 1Ir Stillman, Joseph Fox, then
and nov. president Of the Columbia Bank,
and David H Rowland, ce-president OF
( the latter Institution, entered the board
/ Mr. Rowland being elected president. Nj.
/ stllnan retired two or three years ago,
but MI Rowland Is still president and Mr..
/ Fox IS still a director
In tho came month Of 1901 the CITY
Bank interests bought control Of the Ma
/ t,onal Citizens Bank which shortly after
ward absorbed the Ninth National Bank,
/ the control of which had only few weeks
before teen obtained by interests in the
Hanover National Bank. which institution
has ALWAYS been q close ally Of the CITY
/ Bank In 1904 the Central National Bank
was taken over by the Citizens. the insti-
tuition from that time on being known as
/ the Citizens Central National Bank. Mr..
stulman Is a director q this bank
Tie National City Bank influence, then,
NAV be said 20 be- still dominant in all OF
/ these institutions. II extends however,
I far beyond this chain Of local banks, as
might be expected in the case Of the larg-
est bank in the country. II is commonly
understood 10 be dominant IN the Farm
ers' Loan and Trust Company, which until
the merger Of the Morton and the Fifth
/ Avenue Trust companies with the Guar
anty was the largest trust company in the
United States and Is still not far behind
/ the Guaranty. and in the United States
Trust Company. It is represented on the
boards Of many other important inst!tu-
lions. both here and elsewhere, and such
representation always connotes a substan-
tial stock holding and corresponding
voice in the management and IN the
placing Of business
SIr. Stillman and M Rockefeller, for
instance. have long been directors Of the
/ Hanover National Bank. end on the board
Of the Mechanics and Metals National
Bank. in which the Morgan influence is
also strong are Percy 4. Rockefeller,
/ Charles NJ Pratt Henry Il Rogers, James
" Beck ana John D. Ryan, al OF whom
NAV he c!assed as affiliated with the City
Bank interest Mr. Stllman for years was
a director Of the Fidelity Trust Company
Of Kansas City, and IS a director Of the
| Newport Trust Company. Of Newport,
and Of the Riggs National Bank, Of Wash
( inston. Of which President Vanderlip Of
the National City Bank is also director,
as he is Of the American Security and
| Trust Company, Of Washington.
Influence Extends Over Country.
National CITY Bank interests have also
Cor years been credited with holding IN
vestments in stocks Of banks in Omaha,