« PreviousContinue »
The CHAIRMAN. If the standards were to be changed as recommended by Mr. Gidney, it would require him only to consider among other things whether the effect may be unduly to lessen competition or unduly to create a monopoly.
That is correct; isn't it?
Mr. BROWNELL. Would you say that again, Mr. Chairman! I did not follow that.
The CHAIRMAN. If the standards were to be changed as recommended by Mr. Gidney?
Mr. BROWNELL. Yes.
The CHAIRMAN. It would require him only to consider among other things whether the effect may be unduly to lessen competition !
Mr. BROWNELL. That is right.
The CHAIRMAN. And yet he admits that he has no expertise on these questions.
Mr. BROWNELL. That is why we would think that it would only be a matter of commonsense and
good government to have the Attorney General, that is, the Antitrust Division of the Department of Justice, consulted in all these cases.
I think it is very important to have one single agency which will maintain the standard and interpret it.
The CHAIRMAN. Under Mr. Gidney's proposal he would not have to ask your advice at all ?
Mr. BROWNELL. No; he would have the option to but he would not bave to.
The CHAIRMAN. He could disregard the Attorney General's Office completely?
Mr. BROWNELL. Yes.
The CHAIRMAN. Suppose that section 23 of the Senate Banking and Currency Committee bill should be adopted without the savings clause, such as you recommend, for the purpose of making clear continued applicability of the antitrust laws.
Suppose, further, that a bank merger should take place accomplished by stock acquisition. Could the Department of Justice still proceed under section 7 by virtue of the fact that the acquisition is not exempted by present section 7 of the Clayton Act?
Mr. BROWNELL. It would take a Philadelphia lawyer to answer that one.
The CHAIRMAN. It is difficult.
Mr. BROWNELL. It is difficult, and will be affected somewhat by the legislative history of these two proposals as they are developed in the succeeding weeks.
The CHAIRMAN. It would certainly complicate the situation as far as your office is concerned.
Mr. BROWNELL. Very much so.
The CHAIRMAN. To pursue this further, if section 23 of Financial Institutions Act of 1957 is adopted without the antitrust savings clause, and if the present premerger notification bill is adopted, would a bank merger that has received advance approval by a Federal bank supervisory agency still be subject to antitrust prosecution by you under the Clayton Act?
Would you go along with the Federal Reserve Board's recommendations in that respect?
Mr. BROW NELL. Yes, sir.
Mr. KEATING. Mr. Attorney General, do you know the date upon which Mr. Gidney became Comptroller of the Currency.
Mr. BROW NELL. No, I do not.
Mr. KEATING. I will state to you as a fact it was April 16, 1953, and I now return to the question put to you by the chairman, that even though the Comptroller testified that he would not approve a merger where the effect might be substantially to lessen competition, from 1950 to May 1955 he did not formally disapprove any bank merger whatsoever for competitive reasons, isn't that right. Your answer was in the affirmative, based no doubt upon a lack of knowledge of the time when he became the Comptroller of the Currency. I feel sure that you would not have any knowledge about his predecessors in office.
Mr. BROW NELL. That is correct.
Mr. KEATING. At least you were referring only to Mr. Gidney and you were assuming that the chairman in these statements was giving you the dates when he served as the Comptroller of the Currency?
Mr. BROWNELL. Yes. I am glad you brought that out because I would not want to have any misapprehension on that score.
As a matter of fact, even since he came into office I did not mean to reflect at all on his judgment in passing on these things. There may not have been substantial anticompetitive situations present at all.
Nr. KEATING. In other words, during a 2-year period from April 1953 to May 1955 he did not formally disapprove any bank merger for competitive reasons.
There is nothing unusual or significant about that, is there?
Mr. BROWNELL. As a matter of fact, I think it was his practice not to state the reasons. He may have had them in mind without its being on the record.
The CHAIRMAN. I want to say that it is most unusual in my estimation that of all these applications for mergers presented to the Office of Comptroller of the Currency, not a single one was formally disapproved.
Mr. KEATING. How many did he pass on?
The CHAIRMAN. I don't know. He may have passed on some informally, I don't know, but the record can be disclosed in that regard and made manifest but I think it is most anomalous that this office passed on so many and did not formally disapprove a single one. It was not the chairman's intention to mislead in any respect.
When I spoke of 1950, I gave those figures to be embraced within the period 1950 to 1955, May 1955. I did not have in mind the fact that Mr. Gidney became the Compt roller of Currency in 1953, but apparently the record of his predecessor is no different than the record of Mr. Gidney in that regard.
We will put in the record at this point all the mergers involving national banks that took place from 1953, the time that Mr. Gidney assumed his office, until May 1955. It covers pages 180 to 192 of the hearings of the Antitrust Subcommittee of the House Committee on the Judiciary, part I, serial 3, Current Antitrust Problems, 81th Congress.
The document is as follows:
THE NAME, LOCATION, AND TOTAL ASSETS OF Each NATIONAL BANK THAT HAS
BEEN MERGED INTO OB CONSOLIDATED WITH ANOTHER BANK SINCE JAN. 1, 1953 Purchase of National banks by National and State banks during the year ended
Dec. 31, 1953
Total assets The First National Bank of New Concord, Ohio.
$1, 714, 426 The First National Bank of Zanesville, Ohio?
25, 723, 000 North Jersey National Bank of Pompton Lakes, N. J
8, 169, 996 First National Bank & Trust Co. of Paterson, N. J.'.
202, 906, 000 The Citizens National Bank of Lancaster, Ky.
1, 837, 120 The National Bank of Lancaster, Ky.
3, 015, 000 The Farmers National Bank of Mercer, Pa..
2, 346, 819 The First National Bank of Mercer, Pa.?
11, 852,000 The First National Bank of Dayton, Pa----
799, 766 First National Bank in Skyesville, Ja.--
1, 430, 395 The Punxsutawney National Bank, Punxsutawney, Pa.'.
10, 272, 000 The First National Bank of Perryopolis, Pa..
2,098, 593 The Second National Bank of Uniontown, Pa.'
33, 054, 000 The Citizens National Bank of Frederick, Md-
10, 777, 389 Farmers and Mechanics-Citizens National Bank of Frederick, Md.'
25, 706, 000 The National Bank of Fairmount, N. Dak--
880, 227 Peoples State Bank, Fairmount, N. Dak.'.
859, 000 The National Howark River Bank of Donda, N. Y.
2, 800, 485 First National Bank of Canajoharie, N. Y.'
15, 112, 000 First National Bank of Irwin, Pa-
7, 466, 782 Peoples Union Bank, McKeesport, Pa.'.
48, 001, 000 The North Arlington National Bank, North Arlington, N. J
5, 438, 939 The Rutherford National Bank, Rutherford, N. J.'
35, 135, 000 The First National Bank of Seneca ville, Ohio.-
755, 024 The Central National Bank at Cambridge, Ohio
4, 095, 000 First National Bank of Bellevue, Wash..
3,845, 267 The Pacific National Bank of Seattle, Wash.'.
96, 579, 000 The Mystic River National Bank, Mystic, Conn-
3, 012, 596 The National Bank of Commerce of New London, Conn.'
14, 657, 000 The Milford National Bank, Milford, N. Y.
922, 267 Wilbur National Bank of Oneonta, N. Y.'
12, 196, 000 The First National Bank of Barnegat, N. J.
3, 187, 206 The First National Bank of Toms River, N. J.
24, 510, 000 The Ambridge National Bank, Ambridge, Pa--
11, 066, 790 Mellon National Bank & Trust Co., Pittsburgh, Pa.'
1, 894, 489, 000 Mellon in 1954: Peoples National Bank & Trust of Monessen, Pa..
8, 585, 300 National Bank of Ford City, Pa--
4, 338, 086 First National Bank of Beaver Falls, Pa..
5, 094, 994 Rankin Bank, Rankin, Pa----
3, 013, 702 The First National Bank of Oil City, Pa--
6, 745, 873 Oil City Trust Co., Oil City, Pa.'
18, 995, 000 The Peoples National Bank of Washington, Pa..
4, 655, 242 Peoples First National Bank & Trust Co., Pittsburgh, Pa.'.
544, 005, 000 The First National Bank of Dallas, Pa...
4, 313, 476 Miners National Bank of Wilkes-Barre, Pa..
64, 051, 000 The First National Bank in Heron Lake, Minn.
1, 623, 393 Heron Lake State Bank, Heron Lake, Minn.'
1, 763, 000 The First National Bank of Smithton, Pa--
3, 324, 950 The First National Bank of McKeesport, Pa.'
41, 401, 000 The First National Bank of Pretty Prairie, Kans
657, 336 The State Bank, Pretty Prairie, Kans.'
1, 171, 000 American National Bank of Idaho, Idaho Falls, Idaho.
26, 568, 652 The Idaho First National Bank, Boise, Idaho?
150, 536, 000 The First National Bank of Plymouth, Pac--
11, 053, 237 The Wyoming National Bank of Wilkes-Barre, Pa.'.
16, 265, 000 The Commercial National Bank of Smithfield, Utah.-
1, 283, 117 First Security Bank of Utah, National Association, Ogden, Utah'. 182, 023, 000
1 Purchasing bank.
THE NAME, LOCATION, AND TOTAL ASSETS OF Eecz siswa
IAS BEEN MERGED INTO OB CONSOLIDATED WITH ABOzn ke 5.
,5 The American National Bank of San Bernarino, Cali. The First National Bank of Roseau, Minn.-Citizens State Bank of Roseau, Minn.'The First National Bank of Hermiston, OregThe United States National Bank of Portland, Oreg.: The First National Bank of Ringtown, Pa--The Pennsylvania National Bank & Trust Co. of Pottsville, Pa. The First National Bank of Falls Creek, PacDuBois Deposit National Bank, DuBois, Pa.'The Phoenix National Bank of Providence, R. I.Rhode Island Hospital Trust Co., Providence, R. 1.'. The Union National Bank of Summerville, Pa---Brookville Bank & Trust Co., Brookville, Pa.'. The First National Bank of Kirkland, Wash. The National Bank of Commerce of Seattle, Wash.'The First National Bank of Warren, Pa---The Warren National Bank, Warren, Pa.'The First National Bank of Lockland, Ohio---The First National Bank of Cincinnati, Ohio'.
1 Purchasing bank.
NOTE.- Asset figures for purchasing badks shown to nearest thousand dolları ** Jan. 1, 1933. Consolidations of National banks, or National and State banks, during the yon
ended Dec. 31, 1953
$112, 382, 640
6, 285, 245
58. 758 482
96, 446, 972
2, 613, 245
17. 099, 575
31. 952, 049
The First National Bank of Corona, Calif..
215. 834, 304
$5, 102, 519
2, 926, 282 104, 838, 710
1, 334, 747 4,950, 498 5, 661,670 16, 442, 119 36, 988, 954 21,884, 411 27, 504, 611 68, 942, 361 1, 613, 426
895, 390 3, 159, 713 13, 924, 897
1, 830, 082 30, 121, 967 82, 312, 059 140, 080, 512
657, 326 2, 256, 174 6, 190, 095 19, 516, 969
6, 838, 187 19, 401, 026 16,368, 075 18, 581, 234 258, 819, 071
38, 438, 750 154, 424, 013
1, 234, 509 9,312, 989 17, 100, 782 15, 221, 116
8, 432, 231
2. 876, 614 25, 707,065
26, 239, 214
293, 678, 536
187, 710, 242 10, 547, 498 32, 321, 899 195, 628, 699
9, 316, 261
i Continuing bank.