[Volume XXVII
THE CHICAGO BANKER
28
For a Bank in South America
Negotiations are under way for the organization of a state bank or trust company to operate extensively in the South American States. The institution will be owned by the National City Bank people, of New York, and will be operated in the interests of that institution, which has extensive connections in Argentina and other South American States. Some months ago the bank sent a representative on a tour of the South American States, with the idea of investigating the opportunities for establishing branches of a large American bank. Both James Stillman, chairman of the National City Bank’s board, and Frank A. Vanderlip, its president, have been much interested in the scheme, and believe that a well-equipped American bank can do a very profitable business there.
The details of the plan have not been fully worked out yet, and no official statement has been made as to the exact functions of the bank, or the aims of those directing the enterprise. An officer of the National City admitted, however, that the project was being considered,, and that an institution of fairly large capitalization would probably be organized to carry out the plans of those bent upon securing for an American bank much of the business that now goes to English and German institutions.
The National City’s officers have long owned a controlling interest in the Bank of Cuba, which was organized at Havana several years ago. That bank operates several branches in Cuba.
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Bank Directors Sued
Columbus, Ohio, October 4.—Receiver Robert M. Farthing, of the defunct First National of Dresden, the wrecking of which has caused several of its officials to be sent to federal prison, filed suit to-day in United States court against the directors for the recovery of $7,500.' The defendants are Joshua Stump", J. S. Prettyman, Horatio Bland, F. P. Prior, H. J. Shore, ״G. B. King, and John Robinson, prominent merchants of Dresden and Zanesville. It is alleged that the sum asked for in the petition was diverted from the capital stock and paid out as unearned divi-
Chatham National Bank
William A. Law, vice-president of the Merchants’ National of this city, will probably be elected a director of the Chatham National of New York, at the annual meeting of the stockholders of that institution in January. Mr. Law was a member of the Ayer-Herrick syndicate which recently purchased control of the Chatham Bank. It is not known whether Mr. Ayer, who is president of the Merchants’ Bank, will enter the Chatham board, although it is likely that one or more members of the syndicate in addition to Mr. Law will enter the board. Otherwise it is not expected that there will be any changes in the conduct of the bank, or in the management, which will go on under the same officials as before. It is stated that a friendly attitude exists between the old and the new interests, and that the present directors accepted the request for representation on the board without objection.
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First State Bank
The First State Bank, Henderson, Tex., is the title of a new chartered institution, capitalized at $10,000. F. H. Oberthier is president; R. M. Richardson, vice-president; L. P. Windle, vice-president and Hall Woods, cashier.
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Scandinavian American Trust Company
The Scandinavian American Trust Company of Williston, N. D., has been organized with a capital of $100,000. Simon Westly is president; A. J. Stafne, vice-president, and S. M. Rydle, secretary and treasurer.
be ta.ken in preference to bars. For some time existing conditions have permitted arbitrary exportation of this character without particular damage to our financial affairs at home. A continuance of this arbitrary exportation would eventually bring about its own correction of the difficulty. A rise in interest rates would ultimately result, with a consequent drop in the foreign exchanges that would tend to retard the outward movement of gold. This, however, would occur only after a considerable quantity of gold had been lost. The present incident and the attention which it calls to the ease with which gold may be taken from us lends pertinence to the question whether it would not be well for our government to adopt a measure of protection against the arbitrary exportation of the metal which constitutes the very basis of our financial fabric. In a word, shall we not throw such obstacles in the way of arbitrary gold exports as will protect our gold supply, which is now absolutely at the mercy of any nation desirous of responding to a demand for the metal ?”
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Commercial National of Cedar Rapids
The Commercial National of Cedar Rapids, Iowa, has elected the following officers: Homer Pitner, cashier, to take the place of J. L. Bever, Jr., who becomes second vice-president, and H. IT. Gee was chosen to the assistant cashier-
First State Bank
The new First State Bank of Hallsville, Tex., has elected the following officers:	T. P. Black,
president; T. H. Ethridge, vice-president, and C. F. Haywood, cashier. The capital of the institution is $10,000.
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A new state bank and trust company is being organized at Leesburg, Va.
MERCHANTS LOAN AND TRUST COMPANY
Capital and Surplus, $8,000,000
OFFICERS
ORSON SMITH, -	- President
EDMUND D. HULBERT, Vice-President J. G. ORCHARD, -	- Cashier
F. G. NELSON, - Assistant Cashier P. C. PETERSON, - Assistant Cashier C. E. ESTES, - Assistant Cashier
JOHN E. BLUNT, Jr.,
Manager Bond Department
LEON L. LOEHR,
Manager Trust Department
F. W. THOMPSON,
Manager Farm Loan Department
H. G. P. DEANS,
Manager Foreign Department
A Bank for Commerce, Savings and Investments
CHICAGO
What the Bank Review Says
The Northwestern National Bank Review has the following to say concerning their affiliation with the Minnesota Loan and Trust Company:
“Much interest is being manifested in the plan for an affiliation of interests by the Northwestern National Bank of Minneapolis and the Minnesota Loan & Trust Company through joint stock ownership, and while the details have been given considerable publicity, we will briefly review them that they may be clear to our correspondents. Each institution will remain entirely distinct, and the management of each will remain identical with what it has been in every particular with the exception that the managing officers of both institutions will be members of both boards of directors. When the deal is completed, which will be soon after October 16th, ownership of the shares in the Minnesota Loan & Trust Company will be represented by an endorsement on the certificates of stock of the Northwestern National Bank according to the plan adopted by the First National Bank and First Trust & Savings Bank of Chicago. The two institutions will have a combined capital, surplus and profits of something in excess of $6,-300,000, the capital and surplus of the bank being $5,000,000, and the capital of the Trust Company, $1,000,000, with a surplus fund besides. The total resources of the two institutions, according to their last published statements, are about $35,000,000.
“This will give Minneapolis a strong financial combination which will be in position to extend every conservative form of financial service. Rapid progress is being made in working out the details, and the matter will be closed up as rapidly as legal formality will permit.”
A Bank Case to a Grand Jury
Oklahoma City, Okla., October 4.—H. H. Smock, vice-president of the failed Columbia Bank and Trust Company and ex-state bank commissioner, was called before the special grand jury now in session here and questioned concerning the affairs of the bank to-day. The subpoena for Smock was issued personally by Charles West, the state attorney-general, and given to a special officer in order that knowledge of the fact that Smock had been sent for might not become public until after Smock had entered the grand jury room.
The first intimation that the affairs of the bank were tangled is said to have been given by Smock to the state bank commissioner. Smock told the commissioner that he did not like the situation in the bank. The commissioner came at once to Oklahoma City and verified Smock’s fears. The Norton interests are now unfriendly to Smock.
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Gold Exports to Japan
The October circular of the National City Bank has the following:
“The recent movement to Japan has taken place from San Francisco, where the gold for shipment has been on deposit. This gold in San Francisco is released upon order of the government after payment has been made in New York. In order to provide in New York funds available for these payments, credits are established in London and exchange sold against them. Theoretically, therefore, London provides the money. In practice, however, the burden of exporting the gold is thrown on the United States. The usual charge for a service of this character is quite a small one and merely covers the cost of refining the gold and converting it into bars suitable for shipment. In its discretion the government of course, may increase this charge. It is questionable, however, if such a policy would be wise, as the arbitrary increase by the government of these rates would be at the expense of this country’s gold coin, which would naturally