The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-02
MONEY WIZARDS
SWING GIGANTIC
BANK COMBINE
National City of New York
AbSorbS HALF Billion
Dollar Institution.
ByUnited Press

BIZ United Press
NEW YORK, Oct. 1.-Two bank
ers, one Of whom once defled the
federal reserve system, Will direct
the destinies of Americas second
largest banking house through a
merger approved by directors
Thursday.
They are Charles E. Mitchell,
chairman of the board, once an
obscure clerk, and Gordon S. Rent
schiller, president, of the National
City bank, a giant in city of
gigantic banking houses.
The institution to be absorbed is
the half-billion dollar bank of
America, one Of the oldest banking
houses in this country.
The merger is contingent upon
deposit Of at least 95 per cent Of
Bank Of America stock in favor of
the plan Since the Trans America
Corporation, holding company for
the Bank Of America, has authorized
deposit Of its stock, amounting to
about 66 per cent, the merger
virtually is assured.
Shares Are Exchanged
It will bring the resources of Ma
tional City within a mere 100000
600 or so Of the total resources of
the Chase National bank of New
York, worlds largest financial house.
The merger calls for exchange of
one share of National City stock for
each one and two-thirds shares of
Bank OF America stock, with a cash
payment of 40 cents share to
Bank of America stockholders.
The acquisition does not effect
the Bank of America National Trust
and Savings Association of Cali
fornia, an affiliated institution.
National City will add to its pres
ent fifty-eight branches in the New
York area, the Bank of Americas
thirty-flve,
One of Z. S. Leaders
Mitchell, who announced the
merger simultaneously with Edward
G. Delafeld, president of the Bank
of America, is one of the financial
leaders of the country.
In the space of a quarter century
he has risen from an obscure cleri-
cal position with the Western Elec-
trio Company at it's plant in
Cicero, Ill, to a dominating posi-
ton in world finance.
Brawny, always tanned and
healthy-looking, Mitchell was as
sistant to the president of the Trust
Company Of America when the
panic Of 1907 struck finance. He
remained with the firm until 1911.
Then he went abroad to study
finance and returned to form his
own investment company.
In 1916, be became connected
with National City as vice-presi-
dent. In October of that year he
was made president of the National
City Company. an affiliate, and in
April made chairman of the Ma
tional City Bank of New York
Broke Up Corner
Mitchells greatest triumph was
the breaking up of a virtual corner
in call money on Wall Street late in |
March, 1929, due to the federal re- |
serve boards policy of discouraging
fresh lending to the market by it's
members.
With call money at 20 per cent,
Mitchell ordered $25,0O0000 sent to
the market
so far as this institution is con-
cerned, we feel that we have an
obligation which is paramount to
any fedora! reserve warning, or
anything else. to avert, so far as
lies within our power, any dangerous
crisis in the money market" Mitch
ell said. Mitchell was a director of
the federal reserve.
His associate, Rentschler, was
comparatively unknown in New
York finance until 1925, when he
was elected a vice president of Ma
tiOnal CitV