AMERICAN BANK MERGER

Ashburton Guardian, Volume XLVI, Issue 10684, 30 December 1925, Page 5

AMERICAN BANK MERGER

A CICANTJC CONCERN. FOREIGN AND DOMESTIC LOANS. (Per Press Association—Copyright.) NEW YORE, December 29. A gigantic bank consolidation which, when completed, will have resources of over 1,300,000,000 dollars, out-capitalis-ing J. P. Morgan and Co. or any other private hanking interests in the United States, was reported in Wall Street as being formed by Mr Clarence Dillon, head of the banking firm of Dillon and Read, which recently sensationally purchased Dodge Brothers’ automobile business for 146,000,000 dollars cash and also participated in the flotation of the Australian loan. The amalgamation, which may take years to complete, will be the largest American business coup since the formation of the United States Steel Corporation by the late Andrew Carnegie. . . . The group will include the following four hanks and one trust company: — Mechanics Metals, with 308,000,000 dollars resources; the Chatham-Phoenix, with 267,000,000; the National Party, with 232,000,000; and the Chemical National, with 177,000,000; and the Cental Union Trust Company, with 317,000,000. The reasons for the merger are to afford greater capacity for financing in both foreign and domestic fields.