Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-08-05
Go be Continued.)
BANKS EvADlNG LAW.
Wiekersham Gives Opinion Pronounc
ing Security Companies illegal.

Wiekersham Gives Opinion Pronounce
ing Security Companies illegal.
Washington, Aug. Attorney Gen.
eral Wickersham late yesterday trans
mitted. to Secretary OF the Treasury
Macveagh his opinion as to the legal
ity OF the National City Company OF
New York. the corporation recently
organized by directors Of the National
City Bank to hold bank stocks.
The full scope Of the opinion has not
been made public, but 1t is understood
that the attorney general holds that
such an organization Is illegal under
the national bank act prohibiting ma
tional banks from owning stock In
other corporations.
His ruling Is said to follow closely
the lines OF a decision by the supreme
court, which department Of Justice Of
ficials say interpreted the national
bank law to mean that each national
bank shall be an integral unit, and
that none OF its capital stock shall be
held directly or indirectly by another
national bank or by any device created
for that purpose.
The fact that the government Is
likely to assume new attitude toward
security companies" coupled with the
more or less vague reports about
prosecution Of the alleged money
trust" has aroused the greatest inter-
est on the part of bankers all over the
country, and there is a demand for
hearings from many quarters before
any action Is taken.
No definite action will be taken.
probably, until the whole matter has
been broadly considered.
Reports that trust companies In Chi
cagc occupy exactly the same position
as the National City Company OF New
York in their relations to certain ma
tional banks have caused it to be
pointed out that there is a distinct Diff
ferentiation to be noted in the COM
panies OF the two cities.
Steps already have been taken to
prevent the officials from being con-
fused into the belief that the Continent
al and Commercial Trust & Savings
Bank OF Chicago are similar to the
First Securities Company and the Ma
tional City Company OF New York. 1t
Is declared that they are entirely dis
similar in every respect.
The Chicago banks. 1t has been point
ed out, are operating nothing but
regular banking business under the
banking laws OF the state; they are
subject TO state and clearinghouse ex-
animation and in addition thereto they
make public statements OF their contli-
ton Ave times a year, whereas the
New York subsidiaries named above do
not receive deposits, are not under the
supervision OF the banking or clearing
house department, are not subject to
examination and do not publish their
statements to the world.
1t Is declared that neither Of the Chi
cago national banks which have been
mentioned as being in the same cate
CORY with the National City bank nor
any Of their affiliated hanks. own a
dollar Of stock in any other bank or
corporation.
In advance Of knowledge as to the
opinion rendered by the attorney gen.
eral there L. much difference Of opinion
among treasury officials as to whether
the national bank law applies to ALL
II any, Of the cases In question. There
are some 800 smaller and similar insti-
tutions turnout the country Of which
the department OF Justice did not know
when the Investigation q the National
City Company was begun.