BIG MERGER.

Press, Volume LXII, Issue 18625, 25 February 1926, Page 14

BIG MERGER.

CLERK'S RISE TO' OPULENCE

UNITED STATES BANKS, (TRCIa OUR OWK . CORIUESPONMST.) ■' SAN FRANCISCO, December 30, . . America dearly loves to' dispense- ad,-, miration on some youth who rose from obscure poverty to tho dizzy heights of the multi-millionaire class, as witness the plaudits which were bestowed upon the late Frank Munsey, the millionaire New York publisher/who passed away during tho Yuletide season, after starting in life as a poor boy who went out into the world to strive for a living "with more in his head than in his pockets."

Now another man, formerly in a' most lowly position, has climbed the ladder of fame, and now controls finances unbelievable in even tho land of the Almighty Dollar, for behind the new billion dollar banking merger, _which Wail street has been discussing with intense interest, stands to-day tho figure of a youug man who. a few months ago electrified the financial world by outbidding the Morgans for 1 the Dodge mofcor-car works, and in the short space' of three years contributed billions of dollars' worth of securities to.American investors—Clarence Dillon, head of tho banking house of Dillon, Read,' and Company of New York. This gigantic banking merger, which eventually is expected to link up the Chase National Bank, Mechanics and 'Metals Bank,' Chemical National,, Park National, and Central Union Trust Company, will unite scattered resources aggregating l,300,00t»,000 dollars, rivalling the National City Bank, which for many years has held tho distinction of being America's biggest banking institution. Though Dillon's investment banking house has been a leader in underwriting and distributing high grade home and foreign bonds in the New York investment market, lie has not had the direct backing of large bank units as are directly under the control of the Morgan banking house of Kuhn, Loeb, and Co. It is believed that the new American Crcesus is about to creato a "Dillon Bank," or groups.of banks, the resources of which, will-be 1 available for the kind and size of financing enterprises he contemplates.,

Scope of Merger. Dillon is an active director of tho National Park Bank and the Central Union Trust Company. The initial Btep probably will bring together the Park and Chemical Banks, the combination being linked up with the Trust Company simultaneously with tho merger of the Chase and Mechanics and Metals Banks, and the further combination of the larger units finally effected. Tho four national banks mentioned in the merger have a combined capital and surplus of 98,000,000 dollars, and aggregate deposits of 800,000,000 dol, lars. With the Central Union Trust Company's deposits of 250,000,000 dollars, tho five-bank merger would involve more than a billion dollars, without counting the added resources which later would be brought into the combination. Dillon started his career as a clerk in the Chicago office of the Bead banking house. On being transferred to New York-he was placed in a, responsible position, whero his genius soon- made itself evident, and he was invited to become a member of the old firm of William A. Bead and Co. His negotiation with the Dodge family, heirs for the motor-car manufacturing company, for which he paid 146,000,000 dollars in cash, and on | which he is said to have made a profit j of 60,000,000 dollars for his firm, was one of the most spectacular incidents in ! American industrial-financial history, I and brought him into prominence in all I the monetary centres of the country.