The Washington times., 1924-01-29
BRANCH BANKS
NAY OPERATE
IN D. c.
Supreme Court Ruling in Mis-
souri, Case Does Not Affect
Local Situation.
BY HARRY GUEACK.

= y
Action Of the United States Su.
preme Court in upholding the Mis-.
souri, courts in denying the First
National Bank Of st. Louis right
to establish branches, does not
alter the situation in Washington.
where more than fifteen branches
of outside offices are now In op.
GRAFTON,
The Supreme Courts decision in
this case must not be confused
with the recent ruling Of Attorney
General Daugherty and the Comp
trOller of the Currency to the ef-
3ect that q national bank may
open so-called additional offices
in the city in which the, parent
bank is located. Furthermore, the
decision does not in any way affect
branches Of national banks here,
or in a number Of other cities
which have been acquired through
the process of consolidation with
other State and national institu-
tons. The present law merely es-
tablishes the fact that where the
State laws forbid branch banking,
national institutions cannot open
branches.
At the Treasury it was said that
the opinion was in full agreement
with the stand taken by Comp
troller Of the Currency Dawes in
denying to branches full banking
powers, but allowing them to OPP
crate as "tellers' windows" that is,
to receive deposits and to transact
other routine business. Several out.
side offices have been established in
the District during the last two
rfV rN(
the law.
The courts decision, however, in
q foot note, calls attention to the
case Of the Lowry National Bank,
OF Atlanta, in which Attorney Gen.
eral Wickersham in 1911 ruled that
national bank could not establish
a branch bank, and also to the re-
cent ruling Of Attorney General
Daugherty in which he stated a ma
tional bank may not establish a
branch to do general banking
business, but that it could maintain
an outside office to operate a
''teller's window" The court indi-
Gated that the point on which the
two rulings disagreed was not in
accord with the decision of the
court. The opinion proper, how.
ever, failed to take into considera-
ton the question Of whether a ma
tional bank could operate an out.
side office merely as a "teller's
YEndow."
Exception was made specifically
IN the case Of national banks oper-
citing branches which were acquired
rnder the provisions of section
6155, r. S.; that Is, through the con-
sOlidation with State bank having
branches which bank later became
natiOnalized. Three outside offices
being operated by the Riggs Ma
tional Bank come under this pro-
vision. These were acquired through
the Hamilton Bank. which later be-
came the Hamilton National Bank
and consolidated with Riggs Bank.
Prince Elected Vice President.
Ben L. Prince, formerly vice
president of the International FL
nance Corporation, yesterday was
elected vice president and director
Of the Merchants Transfer and Stor-
age Company. At the same time
David r. Smith was elected assist
ant secretary and assistant treas
urer Of the same company. Their
election, 1t was said by JS4fn l..
Newbold.. president. is the result of
the recent action or the Stockhold-
ers and directors of the company
voting an increase in capital from
100000 to $1,O0O,000 and prescrib.
: ing that the company, in addition
to it's other activities, enter the
field Of warehouse financing
MessIG Prince and Smith will he
in charge of this work. Both have
had considerable experience in open
accounts financing.
Letters have been sent to the
stockholders notifying them 0lat
they may subscribe to the new
stock at par at the rate Of one
Only $3.50, 900 Of the new stock will
be issued at this time. Subscriptions
for the new stock must be in by
February 10.