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GIANNINI EMPIRE
(Condensation o f f i r s t three pages)

1. As o f December 30, 1944, Bank o f America N. T . & S. A .
had #4,600,000,000 resources and #4,340,500,000 d e p o s i t s . I f war
l o a n d e p o s i t s were deducted from the statement o f a l l banks, t h i s
bank would be the l a r g e s t bank i n the w o r l d . Moreover, the amount
o f interbank balances which i t h o l d s , as compared w i t h the amounts
h e l d by other l e a d i n g banks, g i v e s i t an even more commanding p o s i t i o n viewed from the standpoint o f i n d i v i d u a l d e p o s i t s . I n a d d i t i o n t o t h i s bank, c o n t r o l i s e x e r c i s e d over 15 other banks i n
C a l i f o r n i a a l o n e . These banks have aggregate d e p o s i t s o f #181,100,000,
w i t h the r e s u l t t h a t i n C a l i f o r n i a they c o n t r o l 50 per cent o f the
banking o f f i c e s (518) and 41.5 per cent o f the d e p o s i t s .
I n A r i z o n a they c o n t r o l 15 per cent o f the o f f i c e s and
23*3 per ceirt o f the d e p o s i t s ; i n Nevada 60.9 per cent o f the o f f i c e s and 79*3 per cent o f the d e p o s i t s ; and i n Oregon 34*7 per
cent o f the o f f i c e s and 41.5 per cent o f the d e p o s i t s .
Since 1940 they have a c q u i r e d 19 u n i t banks having t o t a l
d e p o s i t s o f #180,600,000.

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CGHFIPTOTIAL

GIAKNUJI EMPIRE

1 . As o f December 30, 1944, Bank o f America N .
& S* A*
had #4,600,000,000 resources and #4,340,500,000 deposits* These
f i g u r e s e s t a b l i s h i t as the second l a r g e s t bank and i t i s claimed t h a t ,
i f war l o a n d e p o s i t s were deducted from the statement o f a l l banks,
t h i s bank would be f i r s t . i n size*
2. Other banks which are c o n t r o l l e d , the date they were a c q u i r e d , and the d e p o s i t s which they h o l d are set out as f o l l o w s :
Date C o n t r o l
Acquired

Bank

Deposits
(June 30, 1944)

I n Arizona
F i r s t N a t i o n a l Bank o f A r i z o n a , Phoenix
Phoenix Savings Bank & T r u s t Congpany
In California
C e n t r a l Bank, Oakland
F i r s t N a t i o n a l Bank o f Garden Grove
Bank o f P i n o l e , Crockett
C e n t r a l Bank o f Calaveras, San Andreas
F i r s t N a t i o n a l Bank o f F a i r f i e l d
F i r s t N a t i o n a l Bank o f Weed
Temple C i t y N a t i o n a l Bank, Temple C i t y
F i r s t T r u s t & Savings Bank, Pasadena
F i r s t N a t i o n a l Bank o f B e l l f l o w e r
F i r s t N a t i o n a l Bank i n Santa Ana
F i r s t N a t i o n a l T r u s t & Savings Bank,
Santa Barbara
Bank o f Newman
Bank o f Tehachapi
Bank o f Corning
F i r s t N a t i o n a l Bank o f Los A l t o s




4-19-37
4-19-37

1930
12-23-38
1-31-40
10-10-40
5-22-41
5-29-41
6-17-41
2 - 5-42

IO-3O-43
1 - 5-44
2-16-44
2-29-44
J u l y 1944
Sept. 1944
Nov. 1944

t

50,948,000
7,589,000

86,385,000
3,333,000
6,123,000
1,881,000
1,697,000
1,610,000
2,394,000

30,158,000
6,441,000
22,748,000

9,865,000
4,607,000
1,141,000
1,926,000
789,000

~ 2~
Date C o n t r o l
Acquired

Bank

Deposits
(June 30, 1944)

I n Nevada
F i r s t Na'tional Bank o f Nevada, Reno
Farmers Bank o f Carson V a l l e y , I n c . , Minden
Farmers & Merchants N a t i o n a l Bank o f Eureka
Bank o f Nevada, Las Vegas

1934
10-26-38
2-15-40
5-17-41

|

76,408,000
1,799,000
822,000
4,544,000

I n Oregon
F i r s t N a t i o n a l Bank o f P o r t l a n d
C l a t s o p County Bank, Seaside
Coolidge and McClaine, S i l v e r t o n
F i r s t N a t i o n a l Bank o f F o r e s t Grove
Bank o f Sellwood, P o r t l a n d
F i r s t N a t i o n a l Bank of Cottage Grove
F i r s t N a t i o n a l Bank of P r i n e v i l l e
S c i o State Bank, S c i o
Bank o f Sweet Home

1930
10-28-38
10-28-38
10-28-38
12-13-38
1 - 5-40
4 - 2-41
8 - 8-42
9-14-42

399,036,000
2,292,000
2,978,000
2,296,000
2,653,000
3,638,000
2,634,000
926,000
1,620,000

I n Washington
N a t i o n a l Bank o f Washington, Tacoma
1936
( C o n t r o l admitted Nov. 9, 1944)

75,036,000

3* The p e r s i s t e n t p o l i c y o f expansion which has been pursued
i n the face o f the considered judgment and concerted o p p o s i t i o n o f a l l
the F e d e r a l banking agencies i s evidenced by the number o f banks which
have been acquired s i n c e 1940. Moreover, the unwholesome t a c t i c s s a i d
sometimes t o have been r e s o r t e d t o i n expanding, i n c l u d i n g bonuses and
pensions to o f f i c e r s of banks whose stock was being sought and the employment, against those who would r e s i s t , o f brokerage houses and h i g h powered s a l e s methods accompanied by the c i r c u l a t i o n of rumors, do not
breed c o n f i d e n c e .
The i n o r d i n a t e p r o p o r t i o n o f banking resources now cont r o l l e d i s shomi i n the f o l l o w i n g table*




-

3

-

BAKES AND BRANCHES IN THE TRMSMERICA CORPORATION GROUP
COMPARED WITH ALL BANKS AND BRANCHES I N THE SAME STATiS
(Deposits i n thousands o f d o l l a r s )

Number o f —
Banks

Branches^/

Deposits o f banks
and branches.
June 30, 19442/

: Banks
:
and
: Branches

Transamerica Corporation
banks:
Arizona
California
Nevada
Oregon
Washington
Total

2
16
4
9
1

4
502
10
39
8

6
518
14
48
9

58,537
3,926,782
83,573
418,073
75,036

32

563

595

4,562,001

12
206
9
71
128

28
830
14
69
94

40
1,036
23
140
222

]

251,049
9,458,943
104,773
1,008,079
1,732,479

426

1,035

1,461

j;

12^5,22?

16.7
7.8
44-4
12.7
.8

14.3
60.5
71.4
56.5
8.5

15.0
50.0
60.9
34-3
4.1

23.3
41.5
79.8
41.5
4.3

7.5

54.4

40.7

36.3

A l l banks i n same States:
Arizona
California
Nevada
Oregon
Washington
Total
R a t i o (per cent) o f Transameriea banks t o a l l
banks i n same States:
Arizona
California
Nevada
Oregon
Washington
Total

1/ The number o f branches shorn above does not i n c l u d e o f f i c e s at m i l i t a r y reservat i o n s , n e a r l y a l l o f which are s o - c a l l e d "banking f a c i l i t i e s 1 * provided through
arrangements made by the Treasury Department w i t h banks designated as deposit a r i e s and f i n a n c i a l agents o f the Government.
Separate deposit f i g u r e s f o r branches are not a v a i l a b l e .
June 19kk deposit
f i g u r e s are shown throughout t h i s t a b l e , s i n c e December 1944 f i g u r e s are not
yet a v a i l a b l e f o r some banks and S t a t e s .



-4The f o r e g o i n g does not i n c l u d e the measure o f c o n t r o l
exercised by v i r t u e o f a m i n o r i t y i n t e r e s t i n two o r three smaller banks
i n C a l i f o r n i a , the m a j o r i t y stockholders o f which are p r e s e n t l y m a i n t a i n i n g c o n t r o l by v i r t u e o f v o t i n g t r u s t s t o which they have subscribed*
I t does not i n c l u d e the measure o f c o n t r o l e x e r c i s e d by v i r t u e o f a subs t a n t i a l investment i n the N a t i o n a l C i t y l a n k o f New Y o r k , making i t
p o s s i b l e f o r A* P . G i a n n i n i to be on the Board o f t h a t bank. Nor does
i t i n c l u d e the as yet u n s u c c e s s f u l " b l i t z " made upon the C i t i g e n s N a t i o n a l
T r u s t and Savings Bank o f Los Angeles which i t s e l f has $300,000,000 i n
d e p o s i t s and some 30 odd branches i n Los A n g e l e s . To date, something
over 25 per cent o f t h i s bank*s stock has been acquired by v i r t u e o f
which the c o n t r o l over the e l e c t i o n o f 5 out o f the bank*s 20 d i r e c t o r s
i s exercised.
6 . A c t i v i t i e s are not confined to the a c q u i s i t i o n and c o n t r o l
o f banking r e s o u r c e s . Huge h o l d i n g s i n r e a l e s t a t e are c o n t r o l l e d
through C a p i t a l Company. I n the insurance f i e l d , c o n t r o l i s exercised
over O c c i d e n t a l L i f e Insurance Company o f C a l i f o r n i a w i t h book assets o f
over $100,000,000; P a c i f i c N a t i o n a l F i r e Insurance Company w i t h assets o f
over $10,000,000; and Premier Insurance Company w i t h a s s e t s o f around

$3,000,000.

Becent a c t i v i t i e s i n the i n d u s t r i a l f i e l d have i n d i c a t e d a
p o l i c y o f expansion s i m i l a r t o that f o l l o w e d i n banking. To the l o n g standing c o n t r o l o f General M e t a l s C o r p o r a t i o n , which d i d a $12,000,000
business i n 1943 > has been added s i n c e 1941 E n t e r p r i s e Engine and Foundry
Company, which d i d a $16,000,000 business i n 1943, the A d e l P r e c i s i o n and
P r o d u c t s Corporation, which d i d a $18,500,000 business i n 1943, said the
Aerco C o r p o r a t i o n , a smaller company, concerning which we have no f i g u r e s .
To c a r r y t h i s volume o f business i t was necessary f o r some o f
these companies to borrow from banks and from Transamerica C o r p o r a t i o n .
Here the danger i s t w o f o l d . Not o n l y are power and c o n t r o l being concent r a t e d but the p o t e n t i a l borrower and p o t e n t i a l l e n d e r are under the same
management, a management whose past record i n the matter o f i n t e r c o r p o r a t e
t r a n s a c t i o n s and whose l i b e r a l i t y i n the extension o f c r e d i t to c o n t r o l l e d
c o r p o r a t i o n s i s w e l l known. Moreover, there i s a known tendency upon i t s
p a r t to take s p e c u l a t i v e p o s i t i o n s and to make s p e c u l a t i v e investments.
W i t h i n the p e r i o d o f the a c q u i s i t i o n s above set out, there were acquired
and s o l d A x t o n - F i s h e r Tobacco Company and P a c i f i c Finance C o r p o r a t i o n .
According to r e p o r t , huge p r o f i t s were made i n these t r a n s a c t i o n s but huge
l o s s e s have been taken i n the past and could be taken i n the f u t u r e .
Measures should be taken to prevent the l e n d i n g o f d e p o s i t o r s f funds to
support such undertakings.




A l i s t o f c o n t r o l l e d nonbanking o r g a n i z a t i o n s and the c o r p o r a t i o n through which they are c o n t r o l l e d i s as f o l l o w s :
C o n t r o l l e d By
A d e l P r e c i s i o n P r o d u c t s Corporation,
Burbank, C a l i f o r n i a .
Aerco Corporation,
Hollydale, California.
American Brokerage, I n c . ( I n a c t i v e ) ,
San F r a n c i s c o , C a l i f o r n i a .
C a p i t a l Company,
San F r a n c i s c o , C a l i f o r n i a .
Coast S e r v i c e Company,
San F r a n c i s c o , C a l i f o r n i a .
C o r p o r a t i o n o f America,
San F r a n c i s c o , C a l i f o r n i a .
E n t e r p r i s e Engine and Foundry Company,
San F r a n c i s c o , C a l i f o r n i a .
General M e t a l s C o r p o r a t i o n ,
San F r a n c i s c o , C a l i f o r n i a .
Inter-America C o r p o r a t i o n ( C a l i f . ) ,
San F r a n c i s c o , C a l i f o r n i a .
O c c i d e n t a l L i f e Insurance Company,
Los Angeles, C a l i f o r n i a .
P a c i f i c N a t i o n a l F i r e Insurance Company,
San F r a n c i s c o , C a l i f o r n i a .
Premier Insurance Company,
San F r a n c i s c o , C a l i f o r n i a .
Timeplan I n c o r p o r a t e d ( I n a c t i v e ) ,
San F r a n c i s c o , C a l i f o r n i a .
F i r s t Holding Corporation,
Pasadena, C a l i f o r n i a .
Western F u r n i t u r e Exchange,
San F r a n c i s c o , C a l i f o r n i a .
I n t e r - A m e r i c a C o r p o r a t i o n (Del)
San F r a n c i s c o , C a l i f o r n i a .
F i r s t S e c u r i t i e s Company,
P o r t l a n d , Oregon.
N a t i o n a l Insurance Agency,
Phoenix, A r i z o n a .
C a l i f o r n i a Foundries, I n c . ,
Oakland, C a l i f o r n i a .
Merchants N a t i o n a l R e a l t y C o r p o r a t i o n ,
San F r a n c i s c o , C a l i f o r n i a .




Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
Transamerica Corporation
Transamerica Corporation
Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
92$ - Transamerica Corporation
- Premier Insurance Company
Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
Transamerica C o r p o r a t i o n
C a p i t a l Company
Transamerica C o r p o r a t i o n
F i r s t N a t i o n a l Bank o f P o r t l a n d
Phoenix Savings Bank & T r u s t Co.
Bank o f America N. T . & S. A.
Bank o f America N. T . & S. A .

-6C o n t r o l l e d By
M a i e r Brewing C o r p o r a t i o n ,
Los Angeles, C a l i f o r n i a .
Capwell, S u l l i v a n and F u r t h , L t d . ,
Oakland, C a l i f o r n i a (Dept. store)
Banca Tmrflobiliare I t a l i a n a ,
Milan, Italy.
Societa S d i l i z i a Yiareggina,
Milan, I t a l y .
S o c i e t a Immobiliare Lombardi,
Milan, Italy.

Bank o f America
(Pledge o f
Bank o f America
(Pledge o f
Banca d*America

N. T . & S. A.
stock)
N. T . & S. A .
stock)
e d*Italia

Banca d*America e d * I t a l i a
Banca d f America e d * I t a l i a

Although c o n s i s t e n t l y denied, there i s h i g h l y persuasive e v i dence t h a t P a c i f i c Coast Mortgage Company and some o f i t s a f f i l i a t e d
companies and s u b s i d i a r i e s , i n c l u d i n g Bankamerica Company, are under the
domination o f Transamerica even i n the absence o f c o n t r o l through ownership o f a m a j o r i t y o f i t s s t o c k . Bankamerica Company i s a s e c u r i t i e s
company which formerly was admittedly c o n t r o l l e d by Transamerica Corporation.
T h i s a f f i l i a t i o n became u n l a w f u l under the p r o v i s i o n s o f the Banki n g A c t o f 1933 and the company, a f t e r a s e r i e s o f questionable t r a n s f e r s ,
ended up w i t h P a c i f i c Coast Mortgage Company as i t s o s t e n s i b l e owner.
7* The c o n t r o l o f such vast resources, i n i t s e l f , creates the
gravest s o r t o f economic problems and these are emphasized when the i n vestment o f the c o n t r o l l i n g i n d i v i d u a l s i s as i n s i g n i f i c a n t as i s the case
here. L i k e w i s e , the mere possession o f such power, even i f i t were not
used (and there i s p l e n t y o f evidence that i t has been) has f a r - r e a c h i n g
p o l i t i c a l i m p l i c a t i o n s , p a r t i c u l a r l y when the power i s i n the hands o f a
management which i s openly h o s t i l e to the p o l i c i e s o f t h i s A d m i n i s t r a t i o n
and i s d e f i a n t o f a l l F e d e r a l a u t h o r i t y as i s t h i s one. I t i s undortunate that i t i s necessary to do anything at t h i s time but the c h o i c e i s
not ours* T h i s management recognizes no t r u c e .
Indeed, i t takes advantage o f the times t o get i t s hands on more and more economic resources
w i t h the r e s u l t t h a t , i f nothing i s done, we may come to the end o f the
war and f i n d t h a t a F a s c i s t economic empire has been b u i l t w i t h i n our own
borders.
8* We would l i k e to get support f o r l e g i s l a t i o n which would
stop t h i s u n c o n t r o l l e d expansion and e l i m i n a t e the e v i l s and p o t e n t i a l l y
dangerous consequences inherent i n the common management and c o n t r o l o f
banking and nonbanking e n t e r p r i s e s .
I f the type o f l e g i s l a t i o n recommended i n the Board*s Annual Report f o r 1943 should be enacted but should
f a i l to accomplish the r e q u i r e d r e s u l t s , then, as between the e x i s t i n g
s i t u a t i o n and the complete d i s s o l u t i o n o f a l l bank h o l d i n g companies, the
l a t t e r i s the o n l y c h o i c e . Now i s no time, however, to f o r c e the l i q u i d a t i o n o f a l l such companies, p r a c t i c a l l y a l l o f which conduct t h e i r a f f a i r s
p r o p e r l y and some o f which o f f e r banking s e r v i c e s where otherwise the
s e r v i c e s are not a v a i l a b l e .
1/29/45


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