A BUSINESS COUP

Evening Post, Volume CX, Issue 156, 30 December 1925, Page 6

A BUSINESS COUP

BANK CONSOLIDATION

ON A GIGANTIC SCALE

REPORT FROM WALL STREET.

(UNITED TRESS ASSOCIATION—COPYRIGHT.) (AUSTRALIAN-NEW ZEALAND CAUL! ASSOCIATION.) NEW YORK, 29th Dec.

It is reported in Wall street that a gigantic Dank consolidation, which v/hen completed will have the rosoureea of over 1300 million .dollars —a greater amount of capital than that of the J. P. Morgan Company, or any other private banking interest in the United States —is being formed by Mr. Clarence Dillon, head of the banking firm of Dillon and Read, which recently made the sensational purchase of Dodge Brothers' automobile business for 146 million dollars in 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 banks, one trust company, the Mechanics' Metals, with resources amounting to 308 million dollars, Chatham Phoenix, with 267 millions, National Party, with 232 millions, Chemical National, with 17? millions, and the Central Union" Trust Company, with 317 millions. - The ability to afford greater capacity for financing, in both foreign and domestic fields, is given as the reason for die merger.