Detroit evening times. (Detroit, Mich) 1921-1958, 1941-07-06
Banks
Brokers
Business
BY WARD SCHULTZ



ponents, the Michigan Nationa
Sank We offered like space q
opponents of branch banking anC
today they present their position
through the medium Of a resolu
ton presented by Joseph VI
DODGE president Of The Detroit
Sank which was passed unant
moasly az q business meeting OF
the Michigan Bankers Association
Here ~ U.s.
The Brake hii Senate Bill No
- is an amen iUe0t 90 the N.ch.-
Gan banking law which prohibits
The C>t8bu>hucuf'ot branch banks
more than - miles or rNc county
limtS. whichever is greater from
The rT3In offices ut The parent
bank.
Tao caNt 90 rapaSs the Bra6e
hI is NOT matter OF mere poll
tics The issue represented bN The
IcpassaGo 1i This bl is clearly one
OF protecting Michigan 5 present
sound system of local independent
banks j is 7D .SSuc OF cllnunat-
ing The possibility of one owner
ship interest tur any similar own
crsbp INTEREST," building up a con-
troll over a widespread system Of
branch banking II lS an issue Of
whether tie owners oi one bank,
or any others who may have the
financial power 10 do SO. can create
branch banks out OF any or all of
the independent banks which they
may be able 20 purchase or control
There has been much concern
about the possibility OF any form
Of statewide branch. group, or
chain banking again dominating
any part Of the banking structure
in Michigan.
The Michigan Bankers ASsocia-
ton went on record as opposing it,.
The Brake bill is not a curtail-
ment of present banking facilities.
1t does not change the present
status of any bank or its business
in Michigan one iota. 1t does not
even affect the Michigan National
Bank group as II exists now. II
only prohibits the owners from
proceeding further and buying up
control over as many banks in
Michigan as they may be able 10
and in turn making each of the
banks bought a branch of the
parent institution There is no
validity 10. any contention TO the
contrary.
The communities Of Michigan
are properly served by their exist
ing independent banks and it can
not be claimed that they can only
be properly served by a branch of
the Michigan National Bank or a
branch of some other large bank. b.
This is contrary 10 the facts. The
demand 10 create branches of a
bank in another city out of present
independent banks originates in the
Michigan National Bank owner
ship.
II is obvious that, under the
Brake -blll--haHlSS- in seReFai-Nrfif
have all they need or want in the
way of territory in which TO eStab-
lish local branches This is proven
by the record of the branches in
existence today within these limits.
by the action OF the Michigan
Bankers Association.
There is only one bank that
has anything substantially differ
ent from other banks i'm Michigan
in the way of an extended branchI
system and one that apparently
wants 10 be able 10 do something
different. The opposition 10 this
bill arises from this source The
other banks in Michigan are not
interested in statewide chain.
branch, or group banking, do not
believe in it, and have gone on
record that they want the bill re-
passed in the best interests of the
people Michigan The failure to-
repass this bill will serve the in
terests Of the few as opposed TO
the expressed interests OF the ma
iority.
After the experience Of 1888 and
prior years in Michigan and else
where with branch. chain and
group banking, the people of Mich
igan should be determined 10 place
Michigan in a position where the
banking business cannot be jeopar-
died in the future by any prob
lem arising from similar circum-
stances. In attempting 10 defeat
this BILL the Michigan National
Bank has seen fit 20 refer 10 bank
failures in Michigan in 1888 and to
infer that II a branch system had
been in effect these problems
might have been avoided. and also
that by permitting branch syS-
TEN % take over a substantial
part Of the present banking bust
ness Of Michigan. future troubles
Of the same kind may be avoided
i should not be necessary 70
remind The people Of Michigan Of
the repercusSious 10 business and
banking IN Michigan and other
states that resulted from the clos
ing Of banks IN widely separated
communities under absentee own
ership and centralized control.
Michigan bankers do not need
70 be reminded of this a num-