Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-20
HUGE BANK MERGER
SURPRISES STREET.
National City Gains 270
Millions in Resources
Through Combine.
BY JOHN F. SINCLAIR.

NEW YORK, September 20. - The
fifth merger Of big New York banks
occurred yesterday when the Corn Elk
change Bank &c Trust Co. announced
subject to ratification by its stockhold-
ers, that it would merge with the
powerful National City Bank to push
that bank far in the lead as the worlds
largest. with total resources Of about
s., 450, 00O, 900.
The announcement, 0 distinct sur
prise In Wall Street, was held extremely
close. Few insiders knew Of the ne
gotiations.
The Corn Exchange, headed by Wal
ter e. Frew, adds resources OF approx
mately $27O. 900 to those Of the Ma
tional City.
The Corn Exchange Bank has COS. 900
shares Of the par value Of $40. Shares
traded in increased from $500 TO $4OO
yesterday. The National CITY Bank
stock was advanced to $500 share, an
increase of about 500 q share in 10
days. The exchange Of stock Will be
on the basis Of four-fif Of a share
OF National stock for one snare OF
Corn Exchange.
The real reason for the merger seems
to be the expansion Of the National
City branches In New York City 70
more than 100.
The first major bank merger IN New
York occurred in May between the
Guaranty Trust and the National Bank
of Commerce, combining resources OF
81 SOC, 000,0 900.
The Hanover National Bank and the
Central Union Trust were next, merg-
ing resources of S722, 600, 900, while the
chase National Bank, which already
had consolidated with the Mechanics
and Metals National Bank in 1925, TOOK
over the National Park Bank TO com
bine resources of about 81, 4OOOuU,ooO.
The fourth was the Bank OF America
and Blair & Co. combining resources
of about $500, 600, 900.
Charles z. Mitchell, 81. who became
head of the National City Bank IN
1o2I. viii continue to direct its policies
az chairman of its board OF directors,
while walter Z. Frew will retire from
active banking when the merger Is
legally completed.
Some months ago, talking WIN one
NJ the more important officials OF Lne
American Telephone 81 Telegraph Co,
I asked him whether, In his OPINION
the stock of his company was worth
the nrice it was then selling lot. AZ
the time the stock was quoted AZ ABOUT
% He replied that the stock was worth
substantially what 1t was selling loI;
and that, in his opinion, 1t wouio hoio
at about that figure: -,
It closed today at 304-an increase %.
ia points. The market Vaiu ..., % ~, 40
"a isf TAI shares today is little over
"a ooo ff1i1 600. Next to General Motors.
T.. narket value Is the highest OF All
American corporations. General MO-
tors at its high of 9134, preferred STOCK
issues ; included, was worth S4,l5s'-
100000 -,.u .r.,srbore
AZ Telegraph stock gains one point on
the exchange. s13,o0o,oco is ADDED 70 It's
market value. 49,.
with the conservative attitude OF tns
past and present management NJ
dividend Of 8 per cent and no iR1meoi-
ste nrosnect Of an increase-it Is din
cult to account for the secth:ng actlvlty
In the common stock the last lew
months.
Public sentiment for the old-age pen
sion in industry is growing; Ten Amei-
ican States and Alaska nave aiLeaoy
adopted old-age pension laws. naseo
largely upon legislation nc" e~e''Ds
will New York State follow suit? An
onsriai New York commission. Under the
workmanship Of Senator Masuck, Is
studying the problem. 49,.
n s. VIM Is chairman OF the
british Columbia Compensation ana
Pension Board, which administers the
Canadian old-age pension act. Inc acI
has been in effect two years In 6rlIlsh
Columbia. -
sentatiyes of charitable and relief sgen-
cies insist that the old-age pension Is
the only method of dealing with the
problem satisfactorily.
The transition from independence to
denendence seems inevitable for large
mart of the population. Most men and
women approaching 10 face real PROB
lem. Many Of them are trained Tor &C.
cupations which no longer exist, ana, OF
course their adaptability has oecreaseo.
That is why Mr.. VIM feels tnat olo-
age pensions remove, in part, at least,
the haunting fear Of want from the
minds Of those who are passing into
the twilight of their lives"
III. Thomas, British minister Of un-
employment, has returned to England
after q month in Canada LOOKING over
the prospects OF increasing Iraoe Lsia-
tions between Canada and the mother
country.
It is understood that principal rta-
son for his visit was to effect wording
Arrangement by which the Canadian
National Railroad would buy its coal
from Great Britain rather than from
the United States. MT. Thomas was
in conference several times with Sir
Henry Thornton, president OF the Ca
madam National Railway. and with E.
w. Beatty. president OF the Canaol ad
Pacific. No announcement was maoe'
however, of the result.
I talked with this British minister
in Ottawa, and he said his primary in
terest was not in temporary, but per-
manent, relief measures.
can increased demand for British ex-
port goods, which in turn will increase
the number of workers in the factories
of England, seems to me the only per.
lrlAnent cure for our UNEMPLOYMENT
he observed. .
When I asked him If, as minister OF
Tritain's 1 SOC, 900 unemployed, he con-
tenplated an effort to send any con-
siderable number OF them to Canada,
his answer was decidedly in the mega
tive.
"Every dominion Is the Judge Of its
own citizens" he said. Making a ma
ton prosperous in q fundamental way
Is the unemployment solution. Send
ing the unemployed out Of Britain
might alleviate the problem, but 1t
would not solve It,"
Copyright, 1929. by North American News
paper AllianceO
Atrial NAnN NATTAM