Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-19
M|TTEN MAY HEAD
new BANK COMBINE
Brotherhood and Traction
Financial Houses Have
Merger Under Way.
BIZ the Associated Press.

By the Associated Press.
CLEVELAND. Ohio, June 1S.-Pos-
sibility of an affiliation between II
banks and financial institutions OF
the Brotherhood of Locomotive En-
gineers and the Mitten Management
Inc, of Philadelphia, was seen To-
night in admission from reliable
brotherhood sources that such prof.
ect Is under consideration.
Although no official announcement
was made, the fact was substantiateo
that a proposal by which the Mltten
company would put "substantial
amount of new capital into the
brotherhood's holdings and assume
the management of all but one of its
banks. is before q committee or the
brotherhood's triennial convention in
session here. Thomas Mitten is head
of the company.
IS It is understood that IL the deal is
carried out, the result would be the
establishment of new banks, operating
on a cooperative basis, in several sec
lions of the country not at present
served by such institutions.
Resources of S9,447,709.
No intfrnation was forthcoming as
to the probable amount Of additional
capital that would be available. To-
tai resources of the present brother
hood institutions, which extend across
the country from Boston to san
Francisco, are SS9, 447, 709.36.
1t is understood that If the affllia-
ton is carried out each of the brother
hood banks would have on its board
an equal numberf Of representatives
of the brotherhood and OF the Mitten
interests, but that Mitten would be
given full authority. In addition to
assuming the actual direction of the
banks. it was said that Mitten would
take directing interest in the broth.
erhood's other financial institutions.
including investment, insurance and
real estate companies.
The entire negotiations have been
secret, and there was no assurance
that the project would be carried out.
It is understood that opposition has
developed in certain quarters, and
there were some denials today that the
matter had ever been officially brought
into consideration.
The brotherhood's chain of banking
institutions and related companies was
formed under the direction Of the late
Warren s. Stone, president Of the
brotherhood.
Employees Have Shared.
AS head of the Mitten Company,
which operates the Philadelphia Rapid
Transit Co. as we'll as a string OF
other traction systems and banks. Mr..
Mitten has been known for his policy
of permitting employees to participate
in profits.
His projected alliance with the gen.
eral financial activities of the brother
hood grows out of the merger some
time ago of the Producers and Con-
sumers Bank at Philadelphia, OF
which he was the directing head. and
the Brotherhood of Locomotive Engi.
neers' Title and Trust Co. in that city.
OF the total present resources OF the
brotherhood institutions 1856 .4SS.53
is credited to banks, S27 $50 ,SS2.53 to
investment and insurance companies
and S14,533. $1,000 to one realty com.
pany at Venice. Fla.
It is understood that the only
brotherhood hank not included in the
affiiation plan is the Brotherhood OF
Locomotive Engineers Banking and
Trust Co. at Birmingham, Ala. No
reason was indicated for its omission.
urDAyVlnuAM CETANCE.