Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-07-25
FIDELITY PLAN
EXPLAINED BY
Mr.. NJ CARTER
President of Local Institution
Sends Bankers a Letter on
Branch Banking Question.

All the banking Institutions in the
State today received from Uzal H.
McCarter, president of the Fidelity
Trust Company. autograph letters in
which the local financier explains the
position of his institution with regard
to the much-discussed question of
branch banking in New Jersey.
Admitting frankly. that the pro-
posed law, which was incorporated in
a circular letter that the New Jersey
Bankers Association recently sent
out to the financial institutions of the
State, was drawn at his request. Mr..
McCarter explains that the bill, as
framed, will not permit general, state
wide branch banking. All that 1t
will allow, the Fidelity president de-
clares, is the operation as branches by
the local trust company, or any other
institution similarly situated, of the
companies that it now controls.
Explaining further that the Fidelity
has had for some time stock control
of the Newton Trust Company of
Newton, the Essex County Trust
Company of East Orange. the New
Brunswick Trust Company Of New
Brunswick, the Union County Trust
Company of Elizabeth and the Red
Bank Trust Company OF Red Bank,
with which the First National Bank
of that place was recently consoli-
dated. Mr.. McCarter says in his let
ter: 1T is our desire now, for purely
managerial and economic reasons, to
take over in operation these institu-
tions which. to all intents and pur-
poses, are ours in fact Frankly ask
ing the bankers for their support in
this matter, Mr. McCarter volunteers,
in his communication, to supply any
additional information that they may
desire with regard to the proposed
law, and offers to appear before
county groups of bankers to make
perfectly plain any point in connec-
ton with the measure that is not en-
tirely clear to them.
Economy Is Seen.
Although there has not yet been
time for the bankers of the State to
act on this matter or to vote on the
questions submitted to them by the
special committee of the Bankers
Association, 1t seems certain that
there will be no opposition to the FL
deity bill 1t appears to be gener-
QilN aSIePQ lndl lfltTtf Is 5OOu iCd-
son why the local institution should
not be permitted to operate its asso-
ciate companies as branches instead
of having for them separate sets of
officers and separate boards of direc-
tors 1t is pointed out in this con-
nection that with the big Fidelity
Trust Company conducting these sub
salaries as branches there would not
only be economy in their manage
ment but material strengthening in
their banking position.
AS for general Statewide branch
banking and branch banking within
the counties in which the parent con-
Germs are doing business, quite an
other view. seems to prevail. 1t is said
that there is considerab BILE opposition
to general branch banking, and that
on the question of county branches
sentiment among the bankers is di-
vided
In a recent talk Banking Commits
sioner LaMonte freely and frankly
declared himself as being heartily in
favor of the passage of a law that
will permit the Fidelity to operate its
associate companies as branches. In
cidentally Mr.. LaMonte is on record
as favoring general hranch-hanking
under certain restrictions. The FL
delity plan has already been unani-
mously approved by the Essex county
branch of the State Bankers Asso-
citation.