Merger of Millions

Sun (Auckland), Volume III, Issue 627, 2 April 1929, Page 9

Merger of Millions

NEW TRUST COMPANY IN U.S.A. Combination With £420,000,000 Capital (United P.A.—By Telegraph — Copyright) (Australian and N.Z. Press Association) Reed. 12.26 p.m. NEW YORK, Monday. THE directors of the National City Bank of New York and the Farmers’ Loan Trust Company have agreed to merge the trust business of both hanks to form a “City Bank-Farm-ers’ Trust Company,, with’ Mr. Charles Mitchell as chairman, and a capital of approximately & 2,000,000 and a similar surplus.

The National City Bank and its investment subsidiary will continue to function under their present names, having a capital of £22,000,000, following a share exchange by which the holders of shares in the Farmers’ Loan will receive five shares in the National City. Bank for each share held in the former. It is estimated that the total combined resources of the National City Bank, the latter’s subsidiary National City Co., and the new City Bank Farmers’ Trust Company will be approximately £420,000,000, the combination thus taking first rank in the United States, which was recently captured when the Guaranty Trust and the Na-

tional Bank of Commerce formed a merger valued at £400,000,000. Mr. Charles Edwin Mitchell, the wellknown American banker, began his financial career with the Western Electric Company at Chicago in 1899, when he was 22 years old. In five years he had become assistant-manager of the company. From 1907 to 1911 he was assistant to the president of the Trust Corporation of America. He then founded the firm of C. E. Mitchell and Company, of which he was head until 1916. He has been president of the National City Company since 1916, and became President of the National City Bank of New York in 1921. He is also president of the National City Safe Deposit Company, chairman of The International Banking Corporation, a director of many other companies, including the Remington Arms Company.