New-York tribune., 1918-03-02
Central-Union
Trust Company
Merger Approved
James N. Wallace to Head
New Institution-Other
Combinations Expected

Formal announcement was made YES
terday OF the plan for merging the
Central Trust Company and the Union
Trust Company, the trustees of both
institutions having signiied their ap-
proval. Before the consolidation finally
becomes effective, however, stockhold-
ers Will be asked to approve the action
of the trustees a meeting to be called
later. The following is the official out
line of the plan:
"The two companies are to be con-
solidated under the name of the
Central Union Trust Company of New
ork which is to have capital stock
of $12,500,0 900 and surplus of about
$16,50O, 900.
Basis of Exchange
"1he Central Trust Company will
turn over its existing assets and its
shareholders will receive 1874 shares Of
stock of the new company for each
share of stock in the old company The
shareholders Of the Central Trust Com
pany will therefore receive in all So
100000 stock in the new company.
"Ihc Union Trust Company Will turn
over its existing assets and its share
holders Will receive IL shares of stock
Of the new company for each share of
stock of the old. The shareholders Of
the Union will therefore receive in all
$1,000, 900 stock in the new company"
James N. Wallace, president of the
Central Trust Company, is to become
chairman of the board and president
of the Central Union Trust, and +. G..
Merrill, president Of the Union Trust,
is to become vice chairman and vice.
president. The board of trustees of
of thirty members, and it is expected
that substantially all the trustees of
the two institutions VIII become men,
bers of the consolidated board.
The main Office of the consolidated
company will probably be at so Broad
way, where are now located the head
quarters of the Union Trust Company.
These Offices were selected because of
the greater amount of space than is
found in the Offices of the Central
Trust Company, at 54 Wall Street. The
uptown branches will continue at their
present locations.
More Commercial Business
1t is believed in banking circles
that the merger of the Central and
Union Trust companies is only the
forerunner of other trust company and
bank olidatons in this city and in
other important financial centres of
the country as we'll. Bankers pointed
out that the creation of the Federal
Reserve system and the entry of the
United States into the war had wrough
great change in the character of bust
ness done by banks and trust com
nanies. The trend, it was said has
been for considerable period toward
commercial banking and away from
short-tlme loans, as cxempliied by
borrowings on the Stock Exchange In
view of this tendency it is felt by
bankers that institutions with great
resources are in a better position to
take advantage of the trend of the
times than the smaller banks. In this
connection the official announcement of
the Central Trust Company said:
THE officials and trustees of both
companies believe that, in view of the
great changes which have taken place
in the banking situation since the en-
trance of the United States into a
war. d merger of the two companies
viii be advantageous to all concerned' ~
The Central Union Trust Company
will be the second largest trust COM
pany in the United States. from the
point of view Of capital stock and the
third largest in working caDital. The
combined DEPOSITS, about $3.50 100000,
are exceeded only by those of the
Guaranty and the Bankers Trust com
panies