Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-07
BANK MERGER PLAN.
MAY Be DEFERRED.
National City and Corn Ex.
change Deal Likely to
Be Postponed.
BY JOHN =. SINCLAIR.

by JOHN +. SINCLAIR.
Special Dispatch TO The star
NEW YORK, November IAN inter.
esting situation in the field of big bust
ness has come to light as q result o.
the drop in stock Exchange prices dur.
ing the last few weeks.
It will be recalled that on September
I9 last the boards of directors of thu
National City Bank and the Corn Ex'
change National Bank, both of New
proval of the STOCKHOLDERS, the sale Of
the stock of the Corn Exchange to the
National City Bank at $500 a share.
At the time the Corn Exchange hac
605,000 shares outstanding, so the tota
sale price was $2l1, 10000.
The National City stock then was
selling at about $500 a share and Corn
Exchange at about $500 share, so the
arrangement worked out by the bank
officials was four shares of National
City to be exchanged for five shares OF
Corn Exchange. Those preferring cash
were to be paid on that basis. There
was the rub.
Deal May he Voted Down.
Since that time something crashed
That something was the smash in the
bank stock prices of these two banks.
Yesterday the Corn Exchange closed at
$l90 bid and $2lO asked. At such q
figure the Corn Exchange stock Is worth
about S12l 100000.
Naturally, every Corn Exchange
stockholder will want the cash, not stock
as the National City Bank stock has
dropped also from $500 a share to 1905.
SO at the meeting of the stockholders
of the National City Bank today, 1t Is
predicted that the deal in It's present
form will be voted down.
So that's another stock market cas-
ualty.
Events Of the last few days show that
the dynamic group of bankers, who
rushed intD the breach to save the mar
ket from cataStrophy and chaos on
BLACK Thursday" still have plenty Of
work to do.
Heading this group is Thomas w. La
mont, for IL years partner in the
Morgan house. Today, at So, he Is a
quiet-talking, pleasant, blue-eyed man,
slightly built, who appears calm and
unrufiied throughout the business day.
4 graduate Of Harvard in 1892, he be-
came newspaper reporter in New York
until he entered the Bankers Trust Co.
as an officer In 1903. From that time
to his partnership in j. p. Morgan q
Co. his life has been full Of big busi-
ness.
George r. Baker. IT.. vice president
Of the First National Bank, likewise a
Harvard graduate, ST. is veteran Of the
last war. He succeeds an illustriouS
father, who has held q high position
In American banking and business dur
ing the last so years.
Charles e. Mitchell, head of the Ma
tional City Bank and its affiliated in
stitutionS, represents assets of more
than $4,000, 000, 900. An Amherst grad
uate, he began work with the Western
Electric Co. in Chicago. In 1911 he
formed his own investment company In
New York, but left it TO join the Ma
tional City Bank in 1916. Five years
later he became its head.
Albert H. Wiggin. chairman Of the
Chase National Bank, is another mem
Der OF the famous committee. He be-
gan his banking career as clerk I'M a
Boston Bank In 1885. became assistant
bank examiner In 1891, then an oficer
in several Of the Boston Banks for the
next eight years. In 1899 he entered
New York as vice president Of the Ma
tional Park Bank
w. c. Potter, head of the Guaranty
Trust, was q mining engineer who en-
tered the banking field few years ago.
After leaving the Massachusetts, Insti-
gineer on the Atchison Railroad and
left to work for the Guggenheim cop
per and smelling interests. His work
was so conSpicuously successful IN that
field that he was offered the presidency
Of the Guaranty Trust Co.
Seward ProsSer, head Of the Bankers
Trust Co., entered the banking field in
another way. He began his business
career by selling life insurance for the
fkmns1 L. -. f4Fa-
in 1907, he entered the banking bust
ness as vice president of the AstOr
Trust Co. of New York, moved from
there TO the presidency Of the Liberty
National and then went TO the Bank
ers' Trust as president He has been
chairman of the board since 1928
How much money has the committee
poured into the market? No figure has
been given out, but this banking COM
mtttee controls assets which reach con-
siderably above $4,000, 0OO, 900.
That's no mean figure, even in rich
America.
A striking paradoxical situation &C.
CURED in the market yesterday, which
should be OF interest to the 100000
stockholders who own 22,27l 900 shares
Of Cities Service common stock.
The stock dropped 8 points in the
days trading and yet. while this was
going on, one Of the cities Service sub
salaries, the Indian Territory ulurli-
mating Oil Co., brought In the largest
well ever completed in the State of
Oklahoma, flowing at the rate of $780,
600 barrels q day.
This well, located in the southern
part Of Oklahoma City fields, is in the
center Of 1000 acres which this COM
pany has under lease. It flows q very
high gravity crude, one of the largest
high gravity fields ever brought III.
Based on the initial now, the annual
production of this well should be worth
about $4,000, 900, figuring it at the
lowest price now paid for Midcontinent
crude OIL
with the 5000 acres under lease, sur
rounding this well, one Of the worlds
richest oil pools has been discovered.
But did it make any difference In the
stock market price Of Cities Service?
Not q ripple, for its stock market value
deprecated $50, 100000 in the days
trading.
yes. these are strenuous times in the
stock market.
(Copyright, 1929. by North american News
paper Alliance.)