New-York tribune., 1918-07-16
State Bankers Form
National Body in
Scene of Turmoil
Illinois and Indiana Men
Bolt Meeting While Pro-
testing Storm RACES
Especial Dispatch to The Tribuncl

ST. LOUIS, July 15.-Representativcs
OF state bankers associations, private
banks and trust companies from all
sections of the United States gathered
here to-day and formed an association
10 be known as the United States
Council of State Bank Associations,
which will be a cooperative association
OF the state and private bankers. as op-
posed to the national banks. and which
Will be independent of the American
Bankers Association.
This organization, delegates say, will
represent the greatest financial power
in the United States.
storm after storm of protest arose
during the meeting, kissing and cat
calls expressing the feelings of usually
oignihed financial men. The formation
OF the organization was opposed on the
ground that it should not be done Mt
this tune on account Of the war The
iiiinols delegation. numbering about
thirty. left the meeting after its chair
man. Reed Green, of Cairo. announced
that they did not desire to have any
connection with n body that set up
standard of political interest in the
matter of forming an organization.
you!' followed the Ilinoisians from
the meeting place. The Indiana dele.
cation also quietly left. and the Ohio
delegates threatened to follow, but re-
NAMED to take part in the remainder
of the meeting.
Why New Body Was Formed
The association was formed. accord
ing to the chairman. George H. Earl
lr, OF Philadelphia, for the purpose of
promoting the general welfare of
American banking interests outside of
the institutions holding charters as
national banks, and to enable the state
banks to cooperate with the national
government. Any state association
or statewide institution is eligible for
membership, to be represented in the
council by from one to three delegates
who are to vote personally. All power
Will be embodied in an executive coun-
cll of twelve members, of which one
third are elected for one year, and a
like number each for two, three and
four years. Officers will be elected at
later sessions after the details of or
ganlzation and operation have been
further worked out
telegram from the president Of
the American Bankers Association was
IL,
of Cairo, shortly before he left the
meeting ct the head Of the Illinois dele
cation. The American Bankers Asso-
citation, proposing that the bankers
abandon their intention of forming a
new organization, proposed to have
separated the different classes of banks
composing that organization, so that
state banks would have individual rep
resentation, and declared that this
change could be put into effect by Sep
tember l. A delegate from New York
declared that the meeting is working
along the very lines suggested by the
state and private bankers individual
representation in n new organization.
Says Council Is Unnecessary
John D. Phillips. of Green Valley.
Ill.,, told the delegates that the alleged
dominance of the American Bankers
Association by national banks was due
to the fact that state bankers in the
past had not worked for their own in
terests in the association. He pointed
out that in the old association national
banks numbered Cal, state banks S51.
trust companies 1908 and savings
banks 1,461. He declared that since
the banks represented at this meeting
controlled more than 65 per cent of the
votes in the American Bankers AS
sociation, it is unnecessary to form a
new organization to obtain their de-
sires. He declared that the new move
would cripple the efficiency of the
American Bankers Association in it's
efforts to defeat the Kaiser"
W. r. Wilson, ice-president of the
Bank of Commerce of Kansas, and
others resented these remarks, and ac-
cused Phillips of disloyalty. He ev-
planned that he meant nothing disloyal.
but that the new movement will hamper
the old association to the extent that
the new draws members away from it.
The bankers met again in the even
ing, to forward the organization and
Will hold several more sessions before
completing their object.