The Washington times., 1914-01-04
COMBINE BUSINESS
WITH PH|LAN
Washington Bank Model for Big
Industrial Finance Corpora
ton Now Forming.
By GEORGE H. GALL

By GEORGE H. GALL
The combination of philanthropy with
a fair business investment, an increas-
ingly popular latter day idea, II the
keynote Of the q. 900 corporation soon
to be formed in New York for the pur-
pose Of establishing a system of banks
throughout the country to aid small
borrowers who are unable TO obtain
loans from commercial institutions such
as national banks. State banks and
trust companies.
For the past year and a half Wash
ingtop has had within its borders
bank which is the exact model Of the
numerous institutions to be founded
throughout the country, the Fidelity
Savings Company. The practical use
fulness to it's patrons and the business
success Of this and thirteen other IN
stItutions of the same kind In other
cities led up to the formation Of the
IS, 10000 corpora ton for the purpose OF
extending the movement.
The news Of the formation Of the big
corporation with Julius Rosenwaid. OF
Chicago; Andrew Carnegie, and Vim
cent Astor as interested parties came
Friday from Berlin. where Mr.. Roser-
wald Ia now investigating european
banking systems, and has since been
confirmed In Washington by one Of the
directors of the local bank which Il
recently in New York in conferences
with some OF the leaders In the ma
tional project.
Is Prime Mover.
The Industrial Finance Corporation
of America is the title OF the large COM
pany now being formed. The prime
mover in the project is the man who de-
vised the plan for the Washington
| bank, Arthur J. Morris, q lawyer,
whose home is in Norfolk, Va Mr..
Morris is the father of the Morris
plan Of savings and loans exemplihed
In the Fidelity Savings Company. He
owns the copyright on the plan and II
is to be used in each bank established
by the Industrial Finance Corporation
Of America.
The scheme of the corporation Is Ia
assist local men in establishing Morris
banks by taking UP to 50 per cent OF
their capital stock and leaving the bal
ance to the local parties, who will elso
| be the managers Of the various local
panks OF course, Washington will not
| be effected in this respect, as the total
capital stock of the Fidelity Savings
| Company was subscribed and paid in BY
| Washington men. 1t is 100000 In
amount The Fidelity also has . fran
chise on the copyrighted plan for tnis
| city But, for instance, II the Industrial
| Finance Corporation were planning to
| come into Washington, as Il will IN q
| large number Of other cities, IL would
be willing to take $4,000 of the $4,000
| capital stock.
| independent of each other. and will be
chain In the sense that the parent
| corporation in New York will own q
| share in their capital stock, and that
they will all be operated on the same
plan.
Loans Nearly 100000.
The extent Of the operations of these
banks may be gauged by the experience
of eighteen months of the Washington
| institution. With its capital Of 800, 900
1t has made loans approaching a hall
million dollars, and these loans are dis,
| tributed among some 5000 borrowers. OF
an average Of $50 to a borrower. Bor,
! rowers are small merchants and indi-
! viduals whose paper Is not readily nego-
| table at commercial banks and trust
companies. 1t is stated that the com.
! nearly 10000 that has been loaned
The type of men to be chosen for tht
| systems banks will be similar to thai
| composing the list Of officers and d.
rectors Of the Washington bank. promi
nent business and professional men
Henry P. Blair. president OF the Boart
of Education, Is president: Judge L. C
! Strider, vice president; James Trimble
| vice president and treasurer; and H. B
Byrd; jr:. manager and secretary; The
P. Blair. George NJ. Bowers, Frank s
Bright, H. B. Byrd, jr., william G.
Carter. Arthur j. Morris, Nathan B
Scott. Ellie Sheetz, William NJ. Sprigg
Trimble, and Bates Warren.
The banks will also have a unique
savings plan whereby the saving habit
will be encouraged and facilitated.
Another savings plan. national IL
scope, has just been installed in eigh
banks and fifteen stores in Washington
the Cointrappers Of America. It's homI
office is also in this city. The Coin
trappers of America is the title OF th'
clubs forming throughout the UniteC
States for the purpose of aiding mem
bers to acquire the habit OF systematic
thrift and to obtain for each individua
member. and the clubs as a whole
easily be acquired by cooperative anc
individual effort without entailing re
sponsibilty. investment, or any risl
| whatever on the part OF the member
Of the club. according to the orsani
zation's statement.
Exchange stations of the Washington
club are located at the District Ma
tional Bank, the North Capitol Saving
Bank. the Farmers and Mechanics
National Bank. the East Washington
Savings Bank the seven banks OF tn.
Munsey Trust Company, the Seventh
Street Savings Bank, the Washington
Mechanics Savings Bank. tthe Anacos
tia Bank. twelve drug stores, and thre
other stores.
Annual stockholders meetings com
mence Monday with those OF the Wash
ington Market Company and the Fire
the bulk of the meetings will be held
including those OF the national banks
the Capital Traction COMPANY tn
Washington Railway and Electric Com
pany, and a number OF savings banks
trust companies, and other col porations