Evening star., 1931-12-04
s57,OlO,OlD BANK
MERGER IS VOTED
Legal Action Begun to Com
bine Big New York
Institutions.
BY the Associated Press.

By the Associated Press.
NEW YORK, December 4.-The legal
task Of sealing the merger Of the
Chatham Phenix National Bank and
Trust Co. and the Manufacturers Trust
Co into an institution of more than
$3.50, 900 900 was under way today. Di-
rectors Of the institutions approved
yesterday the consolidation which gives
them combined deposits of upward
Of $500, ,o0O, 900.
Harvey D. Gibson, president Of the
Manufacturers Trust, and who will be
chairman of the board and president
of the merged bank, said the legal steps
will not be completed before February.
In addition to the legal maneuvers.
approval of the merger will have to
be given by the State and National
banking authorities and the stock
holders.
viii Declare Dividends.
Louis c. Kaufman, president of the
Chatham Phenix, will be chairman of
the Executive Committee, and Harry
C. Won Elm, former president and now
vice president of the Manufacturers
Trust, will be vice chairman OF the
board
Mr.. Gibson announced that both in
stitutions would declare their regular
dividends for the fourth quarter of
this year.
A name for the new bank will be
chosen later
In announcing the consolidation.
Mr. Gibson said
THE terms of the merger involve the
creation of 546,75 shares of new stock
of the Manufacturers Trust Co. of a
par value of S25 to be issued In ex-
change for 10000 shares of the stock
of the Chatham Phenix now outstand-
ing Of par value Of $40 a share. The
stockholders of the Manufacturers
Trust will retain their present holdings
of 100000 shares.
THE boards of directors of the
merged institution viii be reconstructed
and will include members of both ex-
listing boards"
Grow Through Mergers.
A 80 per cent control of the Manu-
facturers' Trust, WHICH was an out
growth of the Citizens Trust Co. of
Brooklyn, was purchased last year by
a group of financiers and Mr. Gibson,
who was then chairman of the Execu-
tive Committee of the New York Trust
Co. He was appointed president He
assumed his new post on January Of
this year.
Mr. Gibson has taken an active part
In public work and at present is chair
man of the New YORK Citizens Com
mittee for Unemployment Relief.
Both the Manufacturers Trust and
the Chatham Phenix have grown up
through series CT mergers. The
Oldest unit in the present Chatham
and Phenix institution was the Phenix
Bank, which was organized in 1912 as
a successor to the New York Wire
Manufacturing Co. The Chatham Ma
tional Bank was merged with the
Phenix National Bank in 1911.
Second Big Recent Merger.
This is the second notable New York
banking merger within less than two
weeks. The first was a Consolidation
of the National City Bank and the
Bank of America. which created the
second largest Institution of its kind
in the United States, with resources
aggregating s2,103,0oo, 900 and deposits
of 81 500 900, 900.
The manufacturers Trust resources
September 30 were S35S,155,6 sos, of
which deposits were $255, ,70l 900. The
Chatham Phenix reported on Septem-
Der 29 tctal resources of 1896 ,262, 900,
of which $3.50 zoos ,887 was in deposits.
The new merged Manufacturers
Trust and Chatham Phenix will have
more than so branches in Greater New
York and, while in point of total re-
sources the new institution will be sub
stantially smaller than some of the
largest banks in New York 1t will rate
among the important institutions.