Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-13
APPROVE PLAN
Of BRANCH BANKS
FOR FIDELITY
Essex Division of Jersey Bark
ers' Assn Passes on Project
at Meeting Here.

Tho Essex county division of the
New Jersey Bankers Association, at
a meeting held yesterday afternoon
in tho Down Town Club, unanimously
approved a plan by which the
Fidelity Trust Company, of this city,
will operate as branch banks, fiVe
financial institutions now controlled
by the Fidelity. The plan has been
INCORPORATED in a bill which VII be
introduced in the legislature at the
next session. The bill, if passed, Wln
empower the Fidelity to take over
the subsidiary institutions entirety
and operate them as branch banks
Of the institution.
rho banks effected are the ESSEX
County Trust Company. OF East or"
anee; the Union County Trust COM
pany, of Elizabeth; the Red BANK
Trust Company, of Red Bank the
Newton Trust Company, OF newton
and the New Brunswick trust CON-
pany, of New Brunswick.
The bankers in session endorsed
the selection of Henry G.. Parker, or
New Brunswick, and General MUIR
ray, of Trenton, as the New Jersey
REPRESENTATIVES under the federal re-
serve act.
The Fidelity Bang consolidation,
however, was chief topic for discus
sion. The matter was brought up b.
Uzal H. MeCarter, president of the
company
Mr.. McCarter made it very plain
that while he believes in branch
banking in its best sense and widest
application, his special interest is in
the position of the Fidelity Trust
Company with regard to it's asso-
ciatc companies and in unequivocally
declaring that the Fidelity does not
now, or at any other time, intend
10 start additional branches in Essex
County or any other part of the
State. He did much to clarity the
whole situation. That same state
mont had been made by Mr. Nc
Carter before on several occasions,
hut in explaining that in some sec
tions of the State there still seemed
10 be some Misrepresentation on this
particular phase Of the matter, he
laid special stress upon it yesterday.
Branch banking as 1t is generally
understood" said the Fidelity presi-
dent, may not be unpopular in this
State. Whether it is, or not, and
whether or not it is good banking
are questions that I have no wish
at this particular time to discuss. IL
seems to have been found good in
sgCenada. and in other places where it
hassbeen tried and I believe in 1t here;
but il I am mistaken in that. and
If il is not sound banking, | for one,
will never advocate it, That, how
ever is not the question that ] wish
TO submit to you gentlemen at this
time. except in so far, as 1t may ap-
plv to existing conditions with re-
gard to the Fidelity Trust Company
and its associate companies.
Mr.. McCarter then went on to eX-
plain that. at the last session OF the
Legislature a bill permitting branch
banking throughout the State passed
the Assembly by a unanimous vote,
went through the Senate on two
readings and then was withdrawn
because of opposition to the measure
ON the part of the Monmouth County
Bankers Association and few in
dividual bankers in other parts of the
State. In view of the fact that the
proposed law had been twice indorsed
bv the executive committee of the
State Bankers Association and ex-
plained in detail in the Bankers sul'
ietin. which was sent to every banker
In the state. the opposition to the
measure had caused him, he said.
distinct surprise.
Bill Meets Opposition.
ut developed" said Mr.. McCarter,
that the Monmouth County gentle
men and few other bankers, were
alarmed over the possibility that the
Fidelity, or some other large ,insttu-
ton, would establish, under the bill,
a Statewide chain of banks that
might throttle competition. That
fear. however, was never for q mo-
ment justified by the fact. In intro
ducing that bill we had but one
thought, and that was to take over
and operate as branches the trust
companies that the Fidelity con-
troled by owning the majority of the
stock That is absolutely all that
there was to it. That was our sole
Purpose. And that is our only wish
now. The situation is simply this:
Through the purchase and owner
ship OF a majority of the stock, the
Fidelity Trust Company controls, and
80 all intents and purposes owns, the
Essex County Trust Company, of
East Orange, the Union County Trust