Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-10
BANKING MERGERS
BECOME NUMEROUS
National Institutions Reach.
ing Out Into investment
Trust Field.
Special Dispatch TO The Star.

Special Dispatch to The Star.
NEW YORK, April 10.-The moves
In the New York banking field are
coming so rapidly that it is difflcult
to keep up with them and to run down
the run1ors that are current from day
to day of new consultations
The significant tendency that has
developed recently is not so much the
merger of banks with each other, which
has been common in the banking world
for years, but the recalling out by ma
tional banks into the field of trust
business and in that covered by the
distribution of securities, as well as
getting an entrance into the foreign
banking field.
American Express Purchase.
The latest step in this direction Is
that taken by the Chase National Bank
announcing its purchase Of the Ameri-
can Express Co., which does the largest
domestic and foreign business in travel
ers' credits Of any organization in the
country. 1t is estimated that its for
eign checks alone amount to $780,
600, 900 annually, or about twice as
much as the total letter Of credit bust
ness done by its competitors, and also
nearly double the checks issued by its
nearest competitor
The foreign exchange operations OF
the American Express Co. have always
been q big factor In the market fol
sterling and for francs. One great
value to the Chase Bank Of Its acquisi-
ton is in obtaining representation in
every important center throughout the
world.
The balancing of strictly banking
business with that of administering es-
tates and other trusts is reported in the
recent union of the National City Bank
and the Farmers Loan g. Trust Co. The
merger of the Bank of America with
Blair g. Co. brought together an In
stitution with large deposits and a
private banking house with both ma
tional and international reputation for
the successful distribution OF securities.
The Capitalization policy, however,
is not stopping with the larger bank
ing corporations. Two significant de-
velopments appeared in yesterday 8
news. One was the consolidation of
the old investment house Of e. H. Roll
Inns 81 Sons with Howe, Snow 81 Co.,
a younger firm occupying an active
place in the same field. About a year
ago Wall Street was surprised to hear
of the coming together Of the two prom
lnenL DOnQ houses Oh II. IL. LAY q W.
and Remick, Hodges & Co., which had
been conspicuous for the distribution OF
high grade bonds in the New York and
Boston territories. 1t is expected other
houses will strengthen themselves
against the changes that have occurred
In security distribution and that addi-
tional mergers will develop before the
end Of the year.
Investment Trust Program.
Still another phase of the same sit
uation and one that reveals the scope
Of the investment trust program is the
report that control Of Case, Pomeroy
& Co., a firm that has made reputa-
ton in the past 10 years for its shrewd-
ness in discovering hidden railroad
equities, and which has shared with j
P. Morgan g. Co. management OF the
Southern Railway, has passed to inter
ests who dominate the 10000, 900 Sc
lected Industries Co. This is the first
situation that has so developed in which
an entire business has been taken over
by an investment trust whose usua
practice Is to purchase only a small
amount of the securities of q great
many diversified industries.