The Oroville weekly gazette. [volume] (Oroville, Wash.) 1905-19??, 1912-11-22
BANK CONSOLIDATION

Very much surprise and much com.
ment was created among the residents
of the town Friday last when the news
became circulated that the First Ma.
tional bank had absorbed the Bank OF
Oroville, and that the latter institution
was to go out of business after a lone
and useful career. 1t is understood
from those directly interested in the
banks that the change has been in
contemplation for some time, and was
10 take place on the first of the new
year at the latest. Why an earlier
date was chosen for the change is not
maze public, but few weeks one way
or the other makes no particular diff
ference, anyhow. since the consolida-
ton had to be carried out.
In an announcement published else.
where IN this issue, L. L. Work, pres
ldent OF both the First National and
the Bank OF Oroville, makes a brief
statement as to the reasons for the
consolidation of the two institutions.
the chief of which is that the Bank of
Oroville was not paying enterprise.
1t has always been evident to those
VINO have kept run of the bank state
ments that the Bank of Oroville was
not heavily paying institution, and
the small capitalization stood in the
way OF extensive transactions. The
consolidation CT the two banks is no
sign whatever of any depreciation of
business in the town. As Mr.. Work
very concisely puts it there is hardly
room in a town of this size for two
banks. The First National carries a
large capitalization, and is in a DO
sltlon to easily handle all the banking
business that there is to be transacted
IN Oroville. for the present at least.
There Is no doubt but that the time
Will come when several banks will
md Oroville a profitable field for op-
Grafton.
While sentiment and business do not
mix and have no relation one to the
other, and especially in the matter of
running banks, still it is a matter one
cannot help regret to see an old es-
tablishcd institution 60 into liauida-
ton. Like every business venture
banks are operated for the purpose of
producing returns on investment. and
when returns fail business fails, or Is
given up. In the case of the Bank of
Oroville there was no failure in busi-
ness, for the more powerful First
National was back Of 1t. But 1t did not
prove a source Of profit, and the ex-
pense Of continuing the establishment
did not justify further experiment.
The taking over of the Bank of Oro-
Vile by similar institution closes
the doors of one of the oldest business
houses In Oroville. The Bank of Oro-
Vile was established under the state
banking laws some seven years ago,
and has been continued as a state
bank. 1t was the first bank organ
lied in Oroville. and was started by
Arthur Lund, of the Riverside bank,
and the late J. J. Browne, during his
life time a widely known Spokane
capitalist Mr.. Lund was connected
with the bank only for a short time,
disposing of his interests to Mr..
Browne. About a year ago Mr.. Work
and his associates in the First Nation
al bank took over the Bank of Orc.
vile, and have since conducted it.
The bank was a great convenience
to number of people who feel keenly
disappointed in the change that has
been made. They may not stop to
consider that under the circumstances
consolidation was inevitable. Had
the old bank shown a fair balance
sheet to the good there would have
been no reason for the change. As has
been stated above it is not sentiment
but dividends that keeps a business
enterprise of this kind going, for ex-
penses of operation must be met and
interest on the investment provided.
AS they think it over people will come
to understand the reason for the con-
solidation of the two banks and grad
ually adjust themselves to the situ-
alton.