New-York tribune., 1921-03-09
Sale Of Commercial
Exchange Bank to
National City Near
Negotiations for Purchase of
Control Likely To Be Con.
summated Soon, Giving
Bank Domestic Branches

Negotiations for the purchase of con-
trol Of the Commercial Exchange Bank
OF New York, state bank, by the Ma
tlonal City Bank are nearing con.
summation, and an early announcement
OF the transaction is expected in Wall
/ Street banking circles Accusation Of
control of the Commercial Exchange
VIII give the National City Bank, the
largest institution in the country, its
hrst domestic branches. one of which
VIII be located in the uptown financial
district near Grand Central.
The Commercial Exchange Bank. for
merly known as the German Exchange
sank, has its main banking Office
located at $50 Bowery. Early this year
II opened q branch in the Biltmore
Hotel. at the corner of Forty third
Street and Vanderbilt Avenue. An
other branch was also opened at 321
Broadway The National City Bank. on
acquisition OF control, plans. it is said.
to operate these branches under it's
Aown name, the present Biltmore branch
Of the Commercial Exchange to be
transferred about May TO the banking
quarters recently set up in the old
Manhattan Hotel building. in Forty
second Street, owned by the National
City Company and known as the Ma
tlonal City Building 1t Is also ex-
pected that the main Office OF the Com
mercial Exchange Bank, on the Bowery
vii be operated as branch OF the City
Bank. giving the Wall Street insttu-
tion three branches.
With the rapid development of the
uptown financial district, where many
OF the large downtown institutions
have IN recent years opened important
branches, the Nat onal City Bank man
agement took under advisement more
than year ago the matter OF acquisi-
tlon Of d bank with a state charter
which could be converted into an up
town branch. 1t Is understood that the
purchase Of the old Manhattan Hotel
bui Hiding WAS g part of the plan. Since
taking over the building the structure
has been entirely remodeled and q new
and modern banking office has been
constructed For many weeks there
has been considerable speculation in
" all Street over what state bank the
City Bank would acquire TO give it the
branch it sought
Under the national banking laws
banks operating under Federal charter
are not permitted to open branches
However, there is nothing in the act
which prevents national bank buying
control OF bank operating under state
charter and Matchmaking it for use as
4 branch. Legislation is expected to
be introduced in the new Congress
which viii give national banks the
right to open up their own branches
without making il necessary for them
20 60 TO the trouble Of accomplishing
he same end by buying a state bank.
The Comm eYcia. Exchange Bank is
capitalized al $4,000 According to q
recent statement the bank showed sur
plus and profits Of 81 054 400 and gross
deposits Of $S6lSOO0. Louis A. Fahs
S president, G. NJ. Adrian and L. J.
Adrian presidents and George
Kern cashier The book value of the
stock, according 10 recent estimate,
IS sG27 a share
Recently the stock has had an ex
traordlnary rise mounting in the last
few weeks from $3.50 share TO $3.50.
The present bid price IS $500, dealers
IN bank stocks said yesterday.
The National City Bank is the first
Of the large Wall Street national banks
20 acquire ar uptown branch, although
several other institutions, including
me Chatham and Phoenix, the Irving
National AID the Mechanics and Metals
National. have branches in other parts
NJ the city The Chase National Bank
which controls the Metropolitan Bank
through the Chase Securities Corpora
rion, which holds a majority Of the
stock. is expected shortly TO convert
that institution into Z branch to be
operated under the Chase name