15
THE CHICAGO BANKER
December 26, jpo5]
“Mr. Bennett is leaving the company with our best wishes,” he said. "The company he has planned will be backed by a number of men who are friends of this company and our relations will be cordial. The real estate department of the trust company will be continued along the same lines as in the past, and a successor to Mr. Bennett will be chosen later. He has been working on the formation of the new company for some time. The Mississippi Valley Trust Company is not in any way connected with the new concern, however. Mr. Bennett has been our real estate officer for three years.”
V*
Stockholders Get $25 a Share
After nearly three years, a payment of $25 on each $200 paid was made to legitimate shareholders in the Bank of America of this city.
Receiver Daniel D. Healy in the First National building made the distribution, which recalled the financial crash of the institution, in which “dummy notes,” records of falsified stock "sales,” and kited checks figured.
President Abner Smith and Cashier Jerome V. Pierce, who were sentenced to the penitentiary, have appealed.
V•
Bank Soon to Reopen
New Kensington. Pa., December 20.—The First National of New Kensington, which was closed November 7th by National Bank Examiner John B. Cunningham, is expected to reopen in a short time. Bad loans made by a former cashier were responsible for the bank’s trouble. Outside of these the bank was in first-class condition. In order to lift the ob-jectionai paper each stockholder was assessed his pro rata share of the amount, and now it is officially reported that almost 90 per cent of these have complied with the request. The others who live as a distance are expected to be heard from within a few days.
The German Exchange Bank
Directors of the German Exchange Bank of Pittsburgh have declared the regular semiannual dividend of 10 per cent, payable January 2d.
January Disbursements
In January a total of $180,250,188 will be paid in dividends and interest by railroads, industrial and traction corporations, banks and trust companies, the National Government and Greater New York. This compares with $182,-653-533 a Year a&°- a decrease of $2,403,345. Next month the sum of $78,135,639 will be disbursed to stockholders in the way of dividends, or $7,615,350 less than in January, 1908, due to the contraction of general business, which compelled many concerns to either pass or reduce their dividends. O11 the other hand, interest payments will call for $103,114,549, or an increase of $5,212,005. This finds ready explanation in the increase in numerous bond and note issues. I11 other words, many railroads and industrial corporations were forced to borrow funds to pay off old obligations, and also to provide for new ones because of the heavy decrease in profits growing out of trade depres-
The Kent State Bank
The Kent State Bank of Grand Rapids, reports capital of $50,000, surplus $81,000, and deposits of $5,375,000. Henry Idema is president, John A. Cadove, vice-president; J. A. S. Verdier, cashier; A. PI. Brandt, and Gerald McCoy, assistant cashiers.
John J. Doherty and others and was adopted by a unanimous vote:
“Whereas, we believe the postal savings bank bill to be ill-advised and subversive of the best financial and moral interests of the people and that its passage would be in response to a demand by the uninformed element of the nation ; and
“Whereas, banking facilities of a superior quality are already ample in all sections of our country with our 24,000 banks, most all of which receive savings deposits on exceedingly liberal terms; and
“Whereas, in a vast majority of localities all the money owned is needed for the development of local industries and home building; and
“Whereas, the experience of the other countries which have fully developed the system, does not justify the claims made for it by advocates of the measure. Be it
“Resolved, that we, as patriots, as citizens and as bankers, are opposed to it on the broad lines of patriotism, good citizenship and expediency.”
On motion of L. E. Rockwood of Gibson City the secretary was instructed to notify our congressmen of the resolution, with the request that they have the bill, if possible, referred to the national monetary commission.
Tom W. Bennett
Tom W. Bennett, real estate officer of the Mississippi Valley Trust Company of St. Louis, has resigned his position and will head a new company, the purpose of which will be making, buying and selling real estate loans. No successor to Mr. Bennett has been selected yet, and he will continue with the trust company until he has wound up his affairs.
Mr. Bennett is now financing the new company, which will be one of the foremost of its kind in the country, and back of which will be a number of prominent St. Louisans. Mr. Bennett in speaking of the new company, said :
“I am, with the assistance of some personal friends, organizing a company for the purpose of making, buying and selling loans secured by mortgage on real estate, whether such loans be regular real estate notes, bonds, or other forms which properly evidence the debt. The company will deal only in securities secured by real estate and improvements thereon, and in selling such securities it will issue certificates which will be direct obligations of the company guaranteeing the payment of principal and interest to the purchaser. Thus the investor will have the unusual satisfaction of knowing that his investment is not only well secured by a first-class piece of real estate, but in addition the guaranty of a company of ample responsibility.
“Real estate loans, when carefully made by men of experience and judgment, are now, and always •have been, considered the safest possible investment by the conservative investors. A realty loan is usually for a short term, and there are afforded frequent opportunities to readjust the interest return or to withdraw from the investment at par. So in the sale of the guaranteed loan we will offer the investor the highest development of the mortgage investment.
“The company will, in financing an enterprise, make the loan in such form of notes or bonds and in such denominations as will enable not only large estates or corporations in its securities, but the man of small means who desires to invest his savings in an absolutely secure manner at a fair rate of interest.
Brockenridge Jones, president of the Mississippi Valley Trust Company, said that Mr. Bennett’s resignation was in his hands and would be accepted when Mr. Bennett was ready to leave the company.
from print paper to imitation whisky, but he means well and has the public with him. The tariff may be the subject of a call for a special session for March 15th by the then President Taft.
Group Meeting at Bloomington
By J. M. Lyon, Secretary.
The fourth semiannual session of Group No. Five, “The Corn Belt Group” of the Illinois State Bankers Association was held at Bloomington, Illinois, December 16, 1908, F. M. Lockwood, chairman, presiding. S. W. Waddle, of Bloomington, opened the program with an address of welcome, which was responded to on behalf of the association by E. D. Durham, of Onarga. Both the address of welcome and response were couched in a happy vein, and resulted in creating an atmosphere of fraternity and good-fellowship.
Following a musical number by the McDowell quartet, which was well received, F. M. Lockwood, of Kankakee, delivered an address. Mr. Lockwood gave a brief summary of the banking situation during the past year, and gave the facts and his deductions therefrom in an able and interesting manner, claiming the interest and close attention of his hearers.
Following another number by the quartet, George E. Roberts of Chicago spoke on the subject:	“The Central Bank of Issue.” Mr.
Roberts briefly outlined the present laws governing the banking business, and declared the system lacked organization and a common head. He reviewed the financial unrest of last fall, and the resultant injury to the commerce of the country. As a remedy for the existing undesirable features of the present system he proposed that we form a central bank of issue by placing the stock among the existing banks on basis of their capital. If their capital was made a hundred million dollars, and was ail taken by the present national banks, they would have to pay in about one-tenth of their capital. Make the stock nontransferable in order to preserve the distribution. Elect a board of directors by territorial districts so that every section of the country would be represented. It is a practical certainty that members of both of the great political parties would be on the board and backed by public opinion that would practically compel the management to be nonpartisan. The government should be represented on the board by the principal officers of the Treasury Department. They should have a voice in shaping the general policies of the bank, but not have anything to do with loaning mone};׳. The details of management should be in the hands of officers elected by the directors. The profits of the bank should be divided be-the shareholders and the Treasury. The bank should certainly pay a fair return on its capital, but the primary purpose would not be to make money, but to safeguard a general banking business situation.
Mr. Roberts’ address was clear, concise, and replete in valuable suggestions born of a large experience and a natural aptitude for retaining the lessons acquired in his extensive career in the financial world, and the happy faculty of imparting his knowledge to his auditors.
After Mr. Roberts’ address, Oscar G. Foreman, vice-president and R. L. Rinaman, secretary of the Illinois Bankers Association of Chicago made a few remarks, as did also E. E. Crabtree of Jacksonville, chairman of the executive committee of the association.
The following resolution pertaining to the postal savings bank measure was introduced by E. D. Durham; same was discussed by C. R. Tombaugh, R. N. Crawford, L. E. Rockwood,