If they agree, that I believe is binding. If they do not agree, he can demand that the Comptroller-if a national bank is concernedappraise the value of the stock and then the merged or consolidated bank has to pay him that amount. The CHAIRMAN. Are a great proportion of these mergers effected entirely by stock transaction without any minority Mr. GIDNEY. Not by the purchase of stock but by this merger or consolidation method where they put the banks together. They get stock in the combined bank. It is provided by law and the usual agreement of merger that each bank takes into the merger whatever it has. It is an exchange of stock in that way. The CHAIRMAN. On the merger, the corporation that is organized issues new stock to its own shareholders and to the shareholders of the merged bank? Mr. GIDNEY. Yes, but it is a continuing corporation. It usually is not a new corporation. It would be once in a very long time that it would be a new corporation. The CHAIRMAN. It would be a reincorporation. Mr. GIDNEY. It isn't even that. They just go together like a wedding. They continue under the charter of one or the other. The CHAIRMAN. Of one of the banks. Mr. GIDNEY. Whichever they like better. If is is a couple of national banks, they are very likely to take the charter earlier in number. The CHAIRMAN. But the bank that continues pays to the stockholders the amount they are entitled to for their stock? Mr. GIDNEY. The usual case is that they get so many shares of stock of the combined institution for so many shares of theirs, and that is true for both banks. That is true for both. One might get 1 for 1, and the other might get 5 and 4, or 4 for 5, or whatever. It is just a putting together of the whole entities of the consolidating or merging banks. Now, the purchase of assets is something different, because the stockholders of the selling bank may then take their cash and pay their taxes and be out of that particular institution. The CHAIRMAN. What proportion of the mergers result in national banks merging into State banks? Are they increasing? Mr. GIDNEY. We have figures on that. In numbers I think somewhat more have come to national rather than going to State. In dollars, we prepared for the Judiciary Committee a list of the banks, going back to 6 or 7 years, and that is at page 145 and following. Mr. MULTER. 145 of what? Mr. GIDNEY. The hearings before the Antitrust Committee No. 5, on March 6, 7, 8, 20 and 21, 1957, serial No. 2, on bills H. R. 264 and 2143. The CHAIRMAN. Could that list be brought up to date? Mr. GIDNEY. It is up to date. The CHAIRMAN. It is? Mr. GIDNEY. Well, in this document it is up to the end of 1956, and I have had it brought down-I have somewhere here the continuation, bringing it down to June 30 of this year. We can supply this material to June 30, 1957, quite readily. The CHAIRMAN. You may do that, and it may be inserted in the record. (The information requested above is as follows:) (The following data appeared originally in hearings before the Antitrust Subcommittee of the Committee on the Judiciary, House of Representatives, March, 1957.) nsolidations, mergers, and purchase and sale transactions approved by the Comptroller of the Currency Citizens Bank, Monrovia.. Citizens Bank of Sacramento. Bank of Hueneme, Hueneme. $5,846, 703 8,975, 700 1,588, 000 East Hartford Trust Co., East Hartford. Shelton Trust Co., Shelton..... 8, 114, 732 8,769, 414 First National Bank, Kellogg....... 3,243, 899 Farmers First National Bank, Minooka. 1,532, 539 North Side Bank, Evansville. Crawfordsville Trust Co., Crawfordsville. 7,954, 243 475, 883 46,469, 533 980, 200 2, 140, 118 Union Trust Co., Indianapolis.. Central Trust Co., Topeka... First National Bank in Medford.. Farmers Guaranty Savings Bank, Orange First National Bank, Orange. Guttenberg Bank & Trust Co., Guttenburg. United States Trust Co., Newark. West Hempstead National Bank, West Hempstead. Williston National Bank, Williston Park. Somerset National Bank, Barker...... Fort Edward National Bank, Fort South Shore Trust Co., Peoples State Bank, Lisbon. Iron Bank, Jackson... Rockville Peoples Bank & Savings Co., Cincinnati. DuBois National Bank, DuBois. National Bank of Springdale, Springdale. First National Bank, Cecil. Farmers Deposit National Bank, Pittsburgh. Turtle Creek Bank & Trust Co., Turtle Creek. The Charter Bank, Philadelphia.. Aquidneck, National Bank, Newport... Providence National Bank, Providence..... Wakefield Trust Co., Wakefield..... 8, 199, 500 17, 269, 986 19, 599, 128 4.755, 922 2,702, 700 1, 548, 024 11, 154, 104 11, 718, 386 3,725, 780 12,079, 600 13, 506, 200 11, 400, 100 35,851, 400 9, 515, 879 6, 162, 894 1,564, 428 3, 133, 405 17,759, 238 3,370, 511 4,312,095 12,973, 200 7, 290, 426 4, 652, 198 1,061, 744 181.200, 680 6,618, 600 6, 998, 500 14, 457,033 11, 860, 900 Consolidations, mergers, and purchase and sale transactions approved by the Comptroller of the Currency-Continued Security-First National Bank, Los Angeles.. Union National Bank, Ventura....... Indiana: Lincoln National Bank & Trust Co., Fort Kansas: Caney Valley National Bank, Caney........... Franklin Bank & Trust Co., Evansville. Peoples State Bank, New Haven..... $9,472, 347 6,670, 464 3,419, 568 Maryland: Emmet State Bank, Emmet. West New Brighton Bank, West New Second National Bank, Cincinnati.. 1 ha Bank of Berea Co., Berea.. Red Rock State Bank, Red Rock..... National Bank & Trust Company of First National Bank, Kingston. Parnassus National Bank, New Kensington. First National Bank of Osceola, Osceola Mills. Ninth Bank & Trust Co., Philadelphia.. Fourteenth Street Bank, Pittsburgh.... Manchester Savings Bank & Trust Co., Pittsburgh. Union Trust Co., Providence...... 323, 006 7,378, 511 44, 305, 465 20, 212, 150 11,047, 727 65, 432, 242 1,232, 989 8, 312, 213 242,563 11, 729, 514 4, 143, 120 4,889, 079 3,505, 502 1,999, 037 54, 471, 794 6,383, 278 9,816,395 93, 516,394 |