162 CONSOLIDATION OF NATIONAL BANKING ASSOCIATIONS 
shall establish branch banks in any place other than that designated in its 
articles of incorporation except in a city or village contiguous thereto.” 
.+.Acting under the above provision of the laws of Ohio, the Guardian Trust Co. 
now has 9 branches, of which 4 only are located in contiguous villages and cities; 
the Union Trust Co. has 11 branches, of which 2 only are located in contiguous 
villages and cities; the Cleveland Trust Co. has 47 branches, of which 7 onlv are 
located in contiguous villages and cities. Other members of the Cleveland 
Clearing House Association have branches but not to the same extent as have 
the three banks first mentioned. 
I think it is only fair to say that the Cleveland Trust Co., which has 47 branches 
located in Cuyahoga County, is extremely willing and anxious and gracious to 
the extent that they desire that the same privilege be granted to the other banks 
in the city of Cleveland, Ohio. When I was here last year, I was here for two 
banks, one the Guardian Trust Co. and the other the Union Trust Co., and at 
that time I tried to make the point that the Guardian Co. and the Union Trust 
Co. should at least be granted the same privileges that the Cleveland Trust Co. 
fad, bub als Sime I am here representing the uniform opinion of all the banks of 
leveland, Ohio. 
The city of Cleveland stretches along the south shore of Lake Erie for a dis- 
tance of probably 10 miles. Contiguous to it are Bratenahl with a population of 
about 50,000, Cleveland Heights with a population of about 25,000, Shaker 
Heights with a population of about 15,000, luclid with a population of about 10,000, 
Lakewood with a population of about 60,000. Rocky River, Lindale, Garfield 
Heights, South Brooklyn, Fairview, Maple Heights, Newburgh Heights, and 
Brook Park, which with other smaller but rapidly increasing municipalities make 
up its metropolitan district. In all instances one municipality merges into 
another, without any perceptible dividing line. = The city proper has been built 
up through mercantile, manufacturing, shipping, and jobbing operations, and not 
only are the best residential sections in these contiguous municipalities, but very 
numerous large industries are located therein. The consequence is that they are 
increasing in population very rapidly, and are demanding that banking facilities 
be brought directly to them, in order that they may eliminate waste of time, 
energy and risk. an to the wave of crime in American cities during and since 
the Great War, they demand places where they may deposit, their money and 
obtain the same for their pay rolls without going in some instances 7 or 8 miles. 
Cleveland is really one great city with a population of not less than 1,250,000 
people; with conditions as to its suburbs practically the same as those prevalent 
in every American city with a population of over 100,000. 
There are few unit banks in the territories above set. forth as contiguous 
to Cleveland, except one State bank in Lakewood and one national bank in 
Rocky River; but the laws of Ohio are such that building and loan companies 
may establish branches anywhere. This they have done; and in the county of 
Cuyahoga their resources are about $200,000,000. In the State of Ohio their 
resources are approximately $900,000,000. They are not obliged to enter into 
the Federal reserve system; they are a law unto themselves, and are in open 
Saw Ti both State and National banks: which in many respects suffer 
The State banks of Ohio have considered the action of C cen i 
1917 as their Magna Charta as far as their rights in eng eon 
eral reserve system are concerned, and based upon that we have in Ohio what is 
called the “Graham banking bill,” which became a law in 1919. From this we 
would like to quote section 710-5, for the purpose of showing that in every ne 
possible the laws of Ohio concerning State banks were at that time coupled i y 
oF =) Ls pled into 
the Poderal SovSHYe Boh he Seohion In question is as follows: 
very bank, in addition to the powers, righ 1 Tvil 
it under the laws of Ohio, shall ny the ats Sud privileges po sessed by 
bank under the Federal reserve act upon terms the and conditions set forth in 
said Federal reserve act, or hereafter provided by law. Every bank which be- 
comes a member bank shall have the right and power to do Sry thing required 
of or granted by said Federal reserve act to member banks which Te 
under State laws; and compliance by banks with the reserve requirements of 
said Federal reserve act shall be accepted in lieu of the reserve requirements 
provided by the laws of Ohio. Any such bank or trust company shall continue 
to be subject to the supervision and examinations requi ig s i 
quired by the laws of this 
State, except that the Federal Reserve Board shall have the right, if it deems 
necessary, to make examinations; and the authorities of this State having super- 
vision over such bank or trust company may disclose to the Federal Reserve