The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1925-12-31
GIGANTIC MONEY
MERGER BACKED
BY DILLON, READ
To Have 1900 900, 900
Dollar Resources

NEW YORK, Dec. 29-The Dillon
Read & company, which few
months ago outbid the Morgan Inter
ests for the Dodge Motor Car POM
pany, Is now backing one Of the Oh.
gest mergers that has ever taken
place in the country. Six Of the big
gest banks In New York City are to
be consolidated into one Controlling
over billion dollars.
Proceeding at Rapid Rate.
The consolidation which is now pro.
ceeding at rapid pace takes IN the
Mechanics and Metals National, the
Chase National, the Chatham and
Phoenix, the National Park, the Chem
ical National and the Central Union
Trust company. The resources OF
this consolidation will amount 70
more than $1,000, 100000
Rumors are current in the Wall
Street district that the National Bank
and Trust company may jump into
the consolidation and add many mors
millions to the resources OF this e.
gantic banking trust.
To Take Place in Year.
1t is expected that the entire pro-
cess OF consolidation will take place
within the next year. 1t is planned
to first unite the banks in pairs and
after period or re-adjustinent to ef.
feet greater consolidation Of the
paired banks.
Pair of Banks.
The pairings are reported to be as
follows:
Chemical National with the Ma
tional Park the Mechanics ems Met7
ais National with the Chase Ma
tional: the Chatham and Phoenix
with the Central Union Trust com
pany.
When the heads Of the different
banks were interviewed as to the inn
pending merger all attempted to hide
any knowledge of the transaction ex-
cept at the Mechanics and Metals Ma
tional, where the president admitted
negotiations we're under way and that
Dillon, Read & company were the
When the Dillon Read & company
loutbid the Morgan interests and paid
the Dodge Motor company heirs
s146.000,000 in cash and the firm made
a profit of s6O,0O0.OO0 rumors had be-
gun to seep thru Of the mergers
Following the news Of the impend-
ing merger the bank stocks owned by
these companies rose to new highs.
Underwrite Many Loans.
The Dillon, Read & company for the
past year has been financing indus
trial projects in Japan, where ii has
sent millions OF dollars to be used to
develop the Identification system and
its industrial system. II has under
written a large volume OF domestic
and foreign bond issues, many Of
them in competition with powerful
American and British financial insti-
tutions. 1t has unloaded great
amount Of this stock onto the small
| investor With the billion dollar
banking combine. that is now in the
process OF consolidation, they intend
to capture many Of the juicy pIums
that have fallen into Morgan's hands
and the other financial interests.
Most of the investments that this
merger is contemplating is the float
ing of gigantic loans for the develop
ment Of natural resources in unde.
veloped lands, such as China, Japan.
Africa and South America.
To Open New Branches,
Branches OF these banks that now
exist in different parts Of the world
will also 90 thru the same process
that the mother banks are going thru
and new branches are to be opened
1t IS also expected that number OF
the smaller and weaker banks Of the
country will be brot into this merger.
Thran kiflnl T. r~~t~ r~-~L