Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-05-07

| branch banking is really founded
| upon Is no such altruistic ground as
the DIRECTORS would have 1t appear
| IL Is apparently based on nothing
more than selfish fear-the fear that
| Is born in the thought that branch
| banks economically and wisely man.
aged and backed up by the great re-
sources OF the parent company would
become dangerous competitors in a
ilelo where unprogressive monopoly
has long been dominant.
las plain matter of fact neither
under the existing branch bank law
nor under the proposed measure. can
| anything be done that might not be
| accomplished without either of these
measures. In one particular only does
| the existing, or the proposed Law,
serve the parent company in a y. ~
that would otherwise be impossible.
and that is in the economy of man
agement. In all other respects what
might be done under the statutes may
as easily be brought about without
them. Through the purchase of stock
| from those who would be willing to
sell it-and only in that way-any
| central company might, for instance.
acquire control of so-called indepen-
| dent banks; it might then put them
| out OF business in fact or in practise.
and, If 1t so elected, it might with
| the control of the institution and the
domination of it's directors. take
money from the smaller communities
| Where it is most needed for the con-
sefVatlon and proper development of
local enterprises
| Not Even Contemplated.
While that may be possible it is
| neVertneless fact that nothing of
| the Kind has been done or even con-
templated. And for the plainest kind
! vi business reasons nothing of the
sort would be attempted under the
existence of the proposed bill, In
submitting the new bin to the exec.
utlVe committee of the New Jersey
Bankers Association before It's intro.
duction in the Legislature those in
| favor OF the measure made its object
and its scope perfectly plain. Hav-
| ing no Interior motive and with alb
solutely nothing to conceal they
cheerfully acquiesced in the sugges-
ton for the appointment of a sub
committee to look into the matter,
anc 1t was not until that committee
and the general committee had put
| upon the bill the stamp of their ap-
| piovai that the measure was sent TO
| Trenton. 1t was there submitted 10
and carefully considered by the COM
missioner of banking and insurance,
and when it had been approved Nv
hira it took the usual course. That
| course was an open one 1t was not
Kept under cover. Announcement of
the bill and its objects was made in
the newspapers. 1t and its objects
were also announced in the State
Bankers Association bulletin, which
was sent early in February to every
| bank in New Jersey. 1t was discussed
| in committee and debated in the
House of Assembly, where it was
passed by a vote of SO to 0.
only when it reached the Senate
and not until after it had passed sec
ond reading was there any opposi-
ton to it. Then, under a misappre
hension, some bankers. misled by
| Others, who were presumably actu-
ated by an unfounded fear, and who
had not taken the time to study the
| matter or to consult either those who
favored ut or the executive committee
of the State association, interposed
objections to it. The result was that
it's supporters, unwilling in the clos
ing hours of the session to preeipitate
wrangle, did not press the m assure
to final passage.
The Principal Object.
while the proposed bill was broad
enough IN It's scope as TO be general,
and in no way special legislation, it
had for its principal object one thing
that was to make ii possible for the
Fidelity Trust Company, of Newark,
to take over, and in that way econo-
miZe in the management of. its sew
eral associate companies which it at
the present time controls. At no time
did the Fidelity Trust Company con-
template the purchase of other COM
panies nor has it any such plan in
contemplation either for the present
or the future. 1t simply desired to
take over. for economy in manage
ment, what actually belongs to it now
and that is all it ever expected to do,
with those facts in mind-and
they are facts that have behind them
the reputation of the company and
the honor of its directors and eXecu-
tive managers--it is easy TO see that
over the proposed bill and more re-
Gently with regard to the existing
act, a small part of the membership
of the New Jersey Bankers Asso-
citation has been unduly alarmed.
1.-THE existing law is a good one;
the proposed measure is not a dan
gerous one. 1t is therefore to be
hoped that against neither of them
will the New Jersey Bankers Assoc
citation as an organization be ar
rayed -