High-Grade Rumor

Swift-tongued rumor had been busy before, anticipating a merger of banks in Boston, a merger in particular between Old Colony Trust Co. and First National Bank. Last week Philip Stockton, president of Old Colony, admitted that his company had entered merger discussions which had been broken off--and then renewed, with no decision yet reached. Believing that what a bank president calls a possibility is a sure thing, would-be stockholders eagerly hoisted the price of Old Colony stock in one day from $815 (bid) to $910 (bid). Very little stock was offered.

Old Colony has resources of $207,000,000 and five Boston branches besides its main office. First National has $403,000,000 of resources, and besides its main office, twelve branches in Boston, one in Buenos Aires, three in Cuba (at Havana, Santiago, Cienfugos). If the merger is effected it will produce no chain of banks, but one $610,000.000 bank with a head office and 22 branch offices.