Mr. LORD. I do not know the circumstances at all. Senator COUZENS. How many other groups are there operating besides the Northwest Co.? Mr. LORD. There is the Marine Midland, which is a group in New York State with a big bank in Buffalo, and the Marine Trust Co. in New York, and a string of banks all through the State. There are smaller groups. There is a group around Seattle. There is a group around Ogden, Utah, and there are other smaller groups. This man Bremer, whose son was just kidnaped, has a small group of banks. Senator COUZENS. There is some difference between chain banking and group banking, is there not? Mr. LORD. Yes; I think there is, Senator. As I recall the definition of chain banking, there is the question of a single ownership of an individual, where, perhaps, one bank owns an interest in another bank instead of all centering in one holding company without any bank relationship. Senator COUZENS. Which do you think the safer practice, chain banking or group banking? Mr. LORD. I do not like chain banking at all, because I think there is an overlapping. There was quite a chain down in Arkansas, as I remember it, that failed several years ago. Senator TOWNSEND. There was a chain down in Florida, too. Mr. LORD. Yes. I will admit that there are weaknesses in group banking. There is no question about it. The only answer in this country to the banking situation is branch banking. It has got to come, because the small community cannot support a unit bank with the safety the community ought to have. Senator COUZENS. Do you have anything else to say, Mr. Lord? Mr. LORD. No, sir. Mr. PECORA. You come very close to favoring the nationalization of banks. Mr. LORD. I do; under one single system-not State systems but a national system. Senator TOWNSEND. That is very nearly accomplished, is it not, under the guaranty plan? Mr. LORD. To a great extent I think it is. Mr. PECORA. That is all I have. Senator COUZENS. The committee will adjourn until tomorrow morning at 10 o'clock. (Thereupon, at 5 p.m., Tuesday, Jan. 23, 1934, the subcommittee adjourned to meet Wednesday, Jan. 24, 1934, at 10 a.m.) COMMITTEE EXHIBIT No. 114, JANUARY 20, 1934 COMMITTEE EXHIBIT NO. 91, JANUARY 17, 1934 Certificate of deposit withdrawals (Feb. 1 to 11, inclusive) Feb. 10, 1933 Helen D. Nerreter Florence L. Chamberlin. Fostoria State Bank. Traub Mfg. Co. U.G.T.Co. Tr. for Charles G. Oakman. 1,500.00 1,000.00 5,660.00 2,500.00 35,000.00 2,000.00 3,300.00 10,000.00 1,500.00 1,000.00 Feb. 11, 1933 Wilcox-Rich Corp.. Detroit Trust Co. Agent for Trustees of Childrens Fund of Michigan. Truman Newberry. U.G.T. Co. Rec'r for Grand Trunk Rwy. Terminal & Cold Stor.Co. Goldberg, Max F 100,000.00 50,000.00 100,000.00 1,500.00 HEARINGS BEFORE THE COMMITTEE ON BANKING AND CURRENCY UNITED STATES SENATE SEVENTY-THIRD CONGRESS SECOND SESSION ON S. Res. 84 (72d CONGRESS) A RESOLUTION TO INVESTIGATE PRACTICES OF STOCK AND S.Res. 56 and S.Res. 97 RESOLUTIONS TO INVESTIGATE THE MATTER OF BANKING PART 11 DETROIT BANKERS COMPANY JANUARY 24 TO FEBRUARY 1, 1934 Printed for the use of the Committee on Banking and Currency A RESOLUTION TO INVESTIGATE PRACTICES OF STOCK AND S.Res. 56 and S.Res. 97 (73d CONGRESS) RESOLUTIONS TO INVESTIGATE THE MATTER OF BANKING OPERATIONS AND PRACTICES, TRANSACTIONS RELATING TO ANY SALE, EXCHANGE, PURCHASE, ACQUISITION, BORROWING, LENDING, FINANCING, ISSUING, DISTRIBUTING, OR OTHER DISPOSITION OF, OR DEALING IN, SECURITIES OR CREDIT BY ANY PERSON OR FIRM, PARTNERSHIP, COMPANY, ASSOCIATION, CORPORATION, OR OTHER ENTITY, WITH A VIEW TO RECOMMENDING NECESSARY LEGISLATION, UNDER THE TAXING POWER OR OTHER FEDERAL POWERS ᏢᎪᎡᎢ 11 DETROIT BANKERS COMPANY JANUARY 24 TO FEBRUARY 1, 1934 Printed for the use of the Committee on Banking and Currency 175541 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 |