Evening star., 1924-08-11
SAVAGE TO PRESS
BRANCH BANK WAR
Will Carry Fight Before
Bankers at Association
Meeting in Chicago Soon.

| The McFadden bill, granting author
ity to national banks to open
! branches in cities, will be opposed
| at the American Bankers Association
annual meeting in September at Chi
| cago. by a movement in which Fran
els NJ Savage, president Of the North
west Savings Bank of Washington,
will be prominent figure
This was indicated today when 1T
was learned that Mr.. Savage, who
| now is in Europe, plans TO circularize
every bank in the United States with
| statement explaining the attitude
| Of the opposition.
The circular, according to informa-
! ton arriving here today from, Mr
Savage, will contend that the bill
should not become law, because the
granting of such branches TO a Fed
| eral corporation precludes States
| from exercising authority TO enforce
! the wholesome safeguards thrown
| around branches of State banks.
| For example" the circular Will
say, California has found it neces-
sary in order to protect the unit or
| independent banks. TO forbid the
opening of branch bank in a local
| ity supplied with banking facilit1es.
| New York State and many others
| have regulations and laws to control
| branch banks and if such were IN
| corporated in a congressional Dill
there would need to be scores Of re-
| strictions A concrete example may
| be found in Washington, where ma
! tional bank obtained from a former
| controller, without publicity, author-
| ity to open branch under an act
| Initiated to prevent obJecuonabIe
| banking and opened a branch in a
| section not having sufficient deposits
to enable two banks TO properly pros
per. Though members OF. both the
| House banking and District commit
| tees state there was no legislative IN
| tent to authorize national banks IN
| the District to open branches, reAei
| cannot be obtained, the present con-
| troller stating that he is advised thas
| he has no legal right to reVie" an
act of his predecessor.
| For confirmation inquire OF Repre-
sentatives Garrett, McFadden, Wingo.
| Gilbert. in fact any member of either
| committee, as to lack OF legislative
authority.
We suggest that the report be got
! ten from the department at Washlns-
ton of the hearing before the HOUSE
| banking committee wherein II Is SHOWN
! that a large California bank bought up
the savings deposit Of an independen,
| bank in order to force the later 10 sef
| out.
! AutOcratic Authority Feared,
"In the light of the recent case from
| St. Louis. wherein the solicitor genera
under Daugherty appeared IN the SUI
! preme Court stating thai the 81 LouiS
| National Bank was violating the ia"'
| but denying the jurisdiction or the stats
| to protect itself and correct a dereilc~
! tion of the controllers Office because ths
! hank was a Federal corporation, Is
| safe for a State to reiinqulsh INTO tne
| hands of a controller of the currency
| who by law has autocratic autnonly
| the right to control its flnanclai oestlh!
| The present Attorney General recent
! ly stated that il was the duty OF the con-
| troller of the currency to initiate action
against the national bank. and as mere
| tofore stated the present controiiT
| states he is without legal authority
| review an act of his predecessor. I %
! there you have it Every lawyer knows
! it's we'll nigh impossible for an lndiVld-
ual to get action against d ndtioiia.
| bank or relief from ministerial act y.
the Federal Government To get reIle1
| in the District of Columbia we are
nromisel a bill requiring the liquidation
| of branches of national banks autno'i
| ized bv a former controller under tn
| MiIlspaush act thereby forcing them 10
| show legislative intent and legal au-
| thority.
Sees Young Men Restricted.
| .eThe treasurer of the Repu biican
| congressional committee is belleVeo
by many TO be responsible Tor the
use of that bill and largely respon-
sible for Objectionable features OF
branch banking and 1t therefore pc
hooves those interested 10 act anu
interview their Representative.
His reported threat to lnaugura'e
private banking in the District OF
Columbia is illuminating.
| I'VE believe that those committing
| the acts referred to are in the dis
| card with the present admlnlstra-
! tion.
| I'VE have no information of the
views of the Democratic nominee
who, however, is fair and Just
II believe centralized control or
money will prevail if branch bank
ing is allowed and therefore the pros
poets of our young men would be
| diminished
Todny's Bond Offerings
The National City Company offered
the largest new bond issue of the
days, ,000, 600 first mortgage 20-year
6 per cent gold bonds of the Old Ben
| Coal Corporation at price to yield
617 per cent, and s5,00o,000 1o-year
| 7lb per cent debentures of the same
corporation, offered at par. Total
| bonds offerings were about $4,000
600.
New Financing Asked.
| The Peoria and Pekin Union Rail
way Company today asked the Inter
state Commerce Commission for au
! thority to issue $4,000, 900 of first mort
tire a loan from the Government OF
tire a loan from the government OF
81, 797 900. and to meet other obiiga-
tions, and to pay for improvements.
Construction Shows Gains. 80,
Construction operations in the
| United States for the first six months
of this year increased II per cent
| over the same period in 1928, the
| Engineering News-Record reports,
| Totals of contract awards for the
| period this year were S1,026, ,5o5,000
| as against S1,O19,23 900 up 10 the end
| of June, 1923.
The Southern States show the
! greatest increase in construction for
the six-month period compared with
| that of last year, orSwith any of the
other sections, the review says. The
| Southern States increased 26.6 per
| cent, making the 1924 half-year totaa
| $117, 200. al
Local Market Steady.
Local issues ruled steady on the
| Washingto Stock Exchange this
morning, in trading restricted to- util.
tiles and other favorite issues.
Sales of $50 shares of District Title
! Insurance Co. were made on the
| curb" at lSA this transaction being
| the leader in volume. Railway pre-