Deals & Developments

End of Bank of Italy. Stoutest of all advocates of branch banking is Amadeo Peter Giannini, and classic example of a bank-with-branches is the Giannini-founded, Giannini-expanded Bank of Italy National Trust & Savings Association. California-wide institution. Last week it was revealed that soon Bank of Italy will succumb to the same forces of expansion and merging which it created. As soon as details are worked out, Bank of Italy will merge with Bank of America of California, newer Giannini institution. The new bank will be called Bank of America National Trust and Savings Association, will have resources of $1,350,000,000, will stand fourth in size among U. S. banks. It will have 453 branches, 292 of which will be contributed by the $1,000,000,000 Bank of Italy. Closely cooperating in all things, but not a part of the merged banks except in that Transamerica Corp. has 60% of its stock, will be the 35-branched Bank of America National Association, New York.

In the passing of the greatly famed name "Bank of Italy" is seen the policy of the new Transamerica management to remove any local, partisan significance attached to the Giannini structure. Mr. Giannini himself saw this was essential and, shortly after old Bancitaly stock crashed, the company was succeeded by Transamerica Corp. Yet Transamerica is influential in Italy through control of the Banca d' America e d'ltalia which only last week expanded further through purchase of the seven-branched Banca-Italo-Britannica.

In last week's deal-plans is evidence that Transamerica's management still believes nation-wide branch banking is sure to come, prepares for it.

Kreuger in Ericsson. Undoubtedly most famed of Swedish companies is Ivar Kreuger's Kreuger & Toll Co., holding company for Swedish match, international banks, large mines. But a close second is L. M. Ericsson Telephone Co. which wages successful battle against German's Siemens & Halske on one hand, International Telephone & Telegraph Corp. on the other. Good news in Sweden last week was the announcement that Ivar Kreuger has obtained a large block of Ericsson stock, that Kreuger & Toll will direct its many activities. Foiled apparently by the deal was I. T. & T., recently reported angling for Ericsson, and against which an "Ericsson protective committee" was formed by patriotic Swedish tycoons.

Ericsson makes telephone equipment, operates telephone systems. It has plants in many countries, concessions in Italy, Poland, Turkey, Esthonia, Mexico, Argentina. In Herr Kreuger & associates it will have the benefit of the shrewdest concession-operators in the world.

Standard of New York. Through its subsidiary, General Petroleum Corp., Standard Oil Co. of New York is potent on the west coast, has strengthened its position through the purchase of many a small independent marketer. Last week General Pete acquired A. M. Mortensen, Inc., large distributor of San Jose, Calif. Brand name of General Pete's gasoline: Violet Ray.

Vendetta. Of merchandising wars, none is more famed than the Gimbels v. Macy's battle, in which the leader is Macy's with its policy of "underselling by 6% all competitors who do not sell for cash." Yet last week Gimbels parried with the flattest lie-direct yet seen in the war. "Forget it!" screeched the Gimbels advertisement, "Don't you believe for a minute that you can save a cent (to say nothing of six per cent) by buying for cash. . . . Gimbels prices are often a dollar less but rarely a penny more. . . . Gimbels will not be undersold."

This file is automatically generated by a robot program, so reader's discretion is required.