New-York tribune., 1922-04-01
Mitchell Renders
An Accounting as
National City Head
Breaks Traditions of Insii-
tuition by Setting Forth
Conditions; Practically
Ali Losses Written OF

Charles =. Mitchell, president Of ths
National City Bank, departing from
the usual banking precedent and break
ing another tradition of the institu-
tion which he heads, yesterday rem
dered to stockholders Of the bank the
FIRST accounting of his Stewardship.
With the exception Of some probable
loss in group OF loans to sugar
estates in Cuba and single loan in
South America. liquidation Of which
viii IN some degree depend upon fu-
turc trade conditions, be declared that
/ the banE had written ofy ali los.es, IN
dlcated ~ q thorough examination OF
its business, and md established
reserve for contingencies of sln eco 600
by direct charge 20 undivided profits
in taet amount. Tle hoard Of direct
6Ts. % eXptajued. mas approved a pol
Icy op ns. .ntnlnng this reserve at all
times a. not less shan s5,00o,000
fhe cVerey+erslon in many lines OF
bus ness incident 10 the war and the
spb,sapepr collapse IN 'omm modity de-
nand .nd in -omU 2itv prices" his
i-tt~r TO saaresoidsrs, mailed last
nigHt, "vpis!ns, have brought financial
difficulties In nes-.- all lines OF bus.-
ness both nero .7d abroad. necessarily
resulting IN 10 aee 20 commercial bank
ing institutions. Ol- avn losses have
been substantial In en- oDnk Asaribabie
and in proportion to sha volume and
extent Of our operations We have de-
laycd reaching 0nal conclusions as 20
probable losses pending tho time when
we could with coniloenoe fesl that
commercial dem oralizstion incident to
defation had run its course and. the
r -
! improving tendency was evident. That
/ VINE we believe has now been reach ed"
Losses Written OF
The bank, Mr.. Mitchell says. during
the last year, in addition to writing
off from undivided profits the good
will cost Of the Second National Bank,
the Commercial Exchange Bank and
the Paris branch Of the Farmers Loan
and Trust Company, has charged cur
rent earnings and undivided profits,
creating reserves and alocating to
speclnc accounts every probable loss
disclosed by careful analysis Of che
accounts OF its head Office and all It's
branches, with the exception noted
Both the regular and extra dividend
were more than earned by the Ma
tlonai City Bank during the first guar
ter the letter points out, the omission
or the latter being decided upon in
view OF the lessening demand for
money and consequent lower lending
rates There was every indication that
the bank would continue to earn enough
TO support the extra dividend
The statement of condition. accom-
panying the letter. Is as Of the close
Of business yesterday. Compiled after
the close Of business and involving
tabuIation Of cabled snd other reports,
ITS issuance represents almost q new
record achievement, rejecting Mr..
Mitchell's determination to show re-
suits Immediately upun the compile
ton OF the JOB that hAS mainly occupied
ms tenure OF Office to d tA
Mr.. Mitchell points .ot thet the IN
ternat;onal Banking Corporation is now
conservatively worth ~ book value Of
$4,000 Geo, but. owtrg to limitations
OF the Federal Reserve act, is carried
as an tsset in the etAtement at only
$8,500.oQ0. He further remarks that
the market value of the banks bond
account is about 81 100000 above the
book agure. Total assets behind the
banks shares include also the $4,000
600 capital and surplus of equal amount
OF the National City Company. he says.
This makes the real asset value Of the
100000 shares of the National City
Bank $118,500, 600, or something over
S296 share, figure which. Xr, Mitch
ell remarks. does not In any ieg.se re-
feet the value of the good sti; or earn
ing power of their institution.