The Washington times., 1930-09-22
new WORKERS
SAID BEHIND
PLANS
Prominent Local Banker Con-
fers on Matter; Plans to Be
Completed About January !
By JOHN z NEYIN, JR.


Consolidation of twelve small
washington banks into mighty
chain within the next six months
looms, reliable information re-
ceived in the local financial field
indicates.
The alnalgamation, which will
be backed by -of-town capital,
was planned for last summer, but
afinal slip-up in the plans caused
It's postponement. Now negotia-
tions are under way again for the
acquisition Of the small institu'
tions.
A powerful washington finan-
cier is making the negotiations.
He is backed by a huge fortune
which was arnassed for this pur-
pose by group Of Wall Street
bankers.
This is the first time that q
definite threat of new capital has
entered the local financial field
and the threatened merger has
thrown CONSERVATION into certain
local bankers.
Such a chain Of small banks,
all connected to one huge combine,
experts say, would >exert a pow
erful influence in the local field.
The resources which could be gath
cred into the combine would more
than double that held by any
banking house here at the pres
ent time. It would force certain
of the banks to make connections
with former rivals in order to
protect their existence.
Reports Of the contemplated
merger have been rife throughout
the Washington financial district
for more than a year and half.
At first. they were passed off as
rlImors but now bankers agree
that they have passed that stage
and certain negotiations have
been brought to light that con-
firm the gossip.
So silently have the bankers
handling the deal worked that
there were hardly any definite
reports until recently. Then the
reports became a matter of puo-
lie talk. but without foundation
or confirmation. A short while
ago, however, 1t became known
that the head of a downtown
bank had been approached on
the matter.
It is thought that the bank
president looked favorably on the
matter, for he is said to have
gone to New York to see the prin-
Cipals behind the deal. What
arrangements were made there
could not be learned.
The banks which would be
gathered into the fold are all OF
the smaller variety, operating at
present as community banks.
Under the plans of the men max
ing the negotiations these banks
would all be merged into one
mighty chain which would use
the present institutions as
branches. !,
The New Yorkers said to be
back Of the operations and whose
entire Identities have not yet been
disclosed, are said to be s"money
men, in the street of fortunes.
It is practically an assured fact
that they are connected with a
huge New York institution which
for some time has tried to enter
the local field. Thus far they
have been unsuccessful but aSSur-
ances that the present deal has
reached a near perfect state in
dicate that they will now be sue
cessflll.
Within the next few weeks the
heads Of the banks which have
been selected to go into the chain
will be approached on the sub
ject. Some of them have already
been sounded out and approved
Of the action subject to later de-
velopments.
It is anticipated that the banks
concerned will look favorably
upon the negotiations due to the
competition they receive from
larger banks in the city. Espe-
daily is this true in neighbor-
Hoods that formerly were served
Ey the community bank and have
since had branches Of downtown
banks placed in the vicinity in
competition.