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UNITED STATES OF AMERICA BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM IN THE MATTER OF TRANSAMERICA CORPORATION COMPLAINT The Board of Governors of the Federal Reserve System charges that Transamerica Corporation, hereinafter called respondent, i s v i o l a t ing and has violated the provisions of Section 7 of an Act of Congress approved October 15, 1914 (the Clayton Act), "An Act to supplement existing lavs against unlawful restraints and monopolies, and for other purposes*, and the Board of Governors of the Federal Reserve System hereby issues t h i s , i t s complaint against said respondent, and states i t s charges with respect thereto as follows, to wit; PARAGRAPH ONE—Respondent i s a corporation organized under the laws of the State of Delaware, having i t s p r i n c i p a l o f f i c e i n the City of San Francisco, State of California* Respondent has an authorised c a p i t a l stock of 25,000,000 shares, of the par value of $2.00 per share, approximately 9,900,000 shares of which are now outstanding. Respondent, through various subsidiary and other companies which i t controls, i s now engaged, i n interstate commerce, i n the commercial banking business i n the United States and i n foreign countries; i n the business of home f i nancing; i n the business of acquiring, managing and s e l l i n g r e e l estate; i n the business of catching, buying, processing and s e l l i n g f i s h and seafood; i n the business of underwriting and s e l l i n g l i f e , health, accident, f i r e , automobile and marine insurance; i n the business of manufacturing and s e l l i n g hydraulic controls, l i n e supports for a i r c r a f t , agricultural implements, Diesel engines, non-ferrous and aluminum castings and forgings, malleable i r o n and s t e e l castings, o i l - w e l l equipment and machinery, and other products; and i n other businesses. PARAGRAPH TWO—Respondent was founded by A. P. Giannini on or about October 11, 1928, f o r the purpose, among ethers, of acquiring and consolidating under one management the control cf a number of corporations, including banks, which theretofore had operated under the general direction and control of the said A. P. Giannini. At or about the time of i t s organization respondent acquired controlling stock interests i n the following corporations, among others: (a) Bank of I t a l y National Trust and Savings Association (now Bank of America National Trust and Savings Association). This bank was founded by A. P. Giannini i n 1904 as a state bank under the laws of the State of C a l i f o r n i a . At the time of i t s incorporation and u n t i l 1927 i t operated as a state bank under the name of Bank of I t a l y . In 1927 Bank of I t a l y converted into a national bank under the name of Bank of I t a l y -2National Trust and Savings Association (hereinafter referred to as Bank of I t a l y N. T. & S* A.). At or about the time respondent acquired a controlling stock interest therein Bank of I t a l y N. T. & S. A. was operating through a head o f f i c e i n San Francisco and approximately 292 branches located throughout the State of C a l i f o r n i a . Approximately 200 of such branches had been established following the acquisition, by various companies or persons acting under the general direction of A. P. Giannini, of controlling stock interests i n or the banking business of various independent banks and branches of such banks located throughout the State of California. In addition to the banks and branches so acquired and converted into branches of Bank of I t a l y or i t s successor, Bank of I t a l y N. T. & S. A«, and during the period between the organizat i o n of the Bank of I t a l y and respondents incorporation, controlling stock interests or the banking business of approximately 87 other independent banks and branches of such banks had been acquired by companies or persons acting under the general direction of the said A. P. Giannini, which banking o f f i c e s were subsequently closed, the banking business of each such closed o f f i c e being absorbed by an existing branch or branches of said Bank of I t a l y or i t s successor, Bank of I t a l y N. T. & S. A. (b) National Bankitaly Company, This corporation was a f f i l i ated with Bank of I t a l y N. T. & S. A. and succeeded to the business of Stockholders Auxiliary Corporation (a corporation organized i n 1917 by A. P. Giannini for the purpose, among others, of f a c i l i t a t i n g the bank expansion a c t i v i t i e s of the Bank of I t a l y , above-described). (c) Merchants National Trust & Savings Bank, Los Angeles, California. This bank was a national bank having i t s p r i n c i p a l o f f i c e i n Los Angeles, California, and operating approximately 35 branches located i n Los Angeles and v i c i n i t y . (d) United Security Bank & Trust Company, San Francisco, California. This bank was a state bank organized under the laws of the State of California, having i t s principal place of business at San Francisco, California, and operating approximately 53 branches located throughout the State of C a l i f o r n i a . This bank resulted from the merger i n 1928 of the United Bank & Trust Company and the Security Trust Company of Bakersfield, California, both of such banks being state banks organized and operating i n the State of C a l i f o r n i a . (e) French-American Corporation. This corporation was aff i l i a t e d through common stock ownership with United Security Bank & Trust Company, At or about the time of respondents organization the French-American Corporation owned controlling stock interests i n a number of banks, including San Diego State Bank, San Diego, California; F i r s t National Bank, Berkeley, California; F i r s t Bank of Jamestown, Jamestown, California; Motherlode National Bank, Sonora, California; Second Avenue State Bank, Los Angeles, California; Bank of Oxnard, Oxnard, California; P l a c e r v i l l e National Bank, P l a c e r v i l l e , California; and Vallejo Commercial National Bank, Vallejo, California. -3(f) Eank of America National Association. This bank was a national bank having i t s principal o f f i c e and operating approximately 30 branches in the City of New York, New York. (g) Bankitaly Company of America. This corporation was organized under the laws of the State of Delaware, having i t s principal o f f i c e i n San Francisco, California. I t owned controlling stock interests i n various subsidiary companies, including Americommercial Corporation (a corporation organized i n 1924 by Stockholders Auxiliary Corporation and certain stockholders of Bank of America of Los Angeles, Los Angeles, California, to further f a c i l i t a t e the bank expansion a c t i v i t i e s of Bank of I t a l y , above-described), Banca DfAmerica E D f I t a l i a (a banking company formed under the laws of Italy, having i t s p r i n c i p a l o f f i c e i n Milan, I t a l y , and operating approximately 37 branches throughout I t a l y ) , and Ameritalia Corporation (a banking a f f i l i a t e of Banca D1America E D f I t a l i a ) . (h) C a l i f o r n i a Joint Stock Land Batik. This corporation was organized by the Bank of I t a l y i n 1919 under,the provisions of the Federal Farm Loan Act. ( i ) Bankitaly Mortgage Company. This corporation was organized by National Bankitaly Company i n 1927 and engaged i n the business of lending on mortgage loans i n urban communities. (j) Bankitaly Agricultural Credit Corporation. This corporat i o n was organized by National BaMtaly Company i n 1928 to make lpans on country real estate. PARAGRAPH THREE—Since i t s organization i n 1928 respondent has continued, under the general direction of A. P. Giannini, to expand i t s banking interests by the acquisition, either d i r e c t l y or through one or more of i t s controlled companies or agents, of controlling stock interests i n or the banking business of various independent banks which banks were at the time of such acquisitions i n competition with one or more of the banks already controlled by respondent. As a result of such expansion respondent now controls approximately 46 banks, operating approximately 598 branches located i n the States of California, Oregon, Nevada, Arizona and Washington, having aggregate deposits of approximately #6,640,000,000. Of the banking o f f i c e s so controlled by respondent approximately 555 are located i n California, 57 i n Oregon, 15 i n Nevada, 7 in Arizona, and 10 i n Washington. Of the banking deposits so controlled by respondent approximately $5*716,000,000 are located i n California, $614*000,000 i n Oregon, $129,000,000 i n Nevada, $85,000,000 i n Arizona, and $96,000,000 i n Washington. The banking o f f i c e s and deposits controlled by respondent constitute the following percentages of the t o t a l banking o f f i c e s and deposits i n each of the f i v e states above-named: In California approximately 50 per cent of a l l banking o f f i c e s and 43 per cent of a l l deposits; i n Oregon approximately 36 per cent of a l l banking o f f i c e s and 44 per cent of a l l deposits; i n Nevada approximately 60 per cent of a l l banking o f f i c e s and 77 per cent of a l l deposits; i n Arizona approximately 13 per cent of a l l banking o f f i c e s and 20 per cent of a l l deposits; i n Washington approximately U per cent of a l l banking o f f i c e s and U per cent of a l l deposits• PARAGRAPH FOUR—Part of the expansion of respondent's banking interests was accomplished i n the following manner: Respondent acquired, either d i r e c t l y or through one or more of i t s controlled companies or agents, the controlling stock interest i n an independent bank and has continued t o operate such bank as a separate i n s t i t u t i o n , although controlled by respondent. Included among the banks so acquired by respondent since i t s organisation i n 1928 and now operated and controlled by i t are the following: As of date of acquisition Deposits Name of Bank (Arorox.) Year, Branches 1928 1930 n 1934 1936 1937 ft It II II 1938 it ii Bank of I t a l y N. T. & S, A., San Francisco, C a l i f o r n i a (Now Bank of America N. T, & S. A.) F i r s t National Bank, Portland, Oregon Central Bank, Oakland, C a l i f o r n i a (This bank was o r i g i n a l l y chartered i n 1930 as the Bank of America, a state bank, to take over 58 branches of Bank of America of C a l i f o r n i a , which merged with Bank of I t a l y N, T* & S. A, i n that year to form Bank of America N. T. & S. A.) F i r s t National Bank of Nevada, Reno, Nevada National Bank of Tacoma, Tacoma, Washington (Now National Bank of Washington) F i r s t National. Bank, Forest Grove, Oregon Farmers Bank of Carson Valley, Hinden, Nevada F i r s t National Bank of Arizona, Phoenix, Arizona Phoenix Savings Bank & Trust Company, Phoenix, Arizona Coolidge & McClaine, Silverton, Oregon F i r s t National Bank, Garden Grove, C a l i f o r n i a Bank of Sellwood, Portland, Oregon (Now Moreland-Sellwood Bank) Clatsop County Bank, Seaside, Oregon 283 666,944,000 46,174,000 — —— 6,7a,000 i 14,499,000 621,000 1,154,000 i 14,354,000 3,881,000 mm 657,000 mmmm 694,000 443,000 463,000 -5- Year 1940 tt VI 1941 ft tt ft ff 1942 n tt 1943 1944 tt tt ft tt ft 1945 tt tt tt tt Name of Bank F i r s t National Bank, Cottage Grove, Oregon Bank of Pinole, Crockett, California Central Bank of Calaveras, San Andreas, California F i r s t National Bank, F a i r f i e l d , California F i r s t National Bank, P r i n e v i l l e , Oregon Bank of Nevada, Las Vegas, Nevada Temple City National Bank, Temple City, C a l i f o r n i a F i r s t National Bank, Weed, California F i r s t Trust & Savings Bank, Pasadena, C a l i f o r n i a Scio State Bank, Scio, Oregon Bank of Sweet Home, Sweet Home, Oregon F i r s t National Bank, Bellflower, California F i r s t National Bank, Corcoran, California F i r s t National Bank. Los Altos, California Bank of Newman, Newman, California F i r s t National Bank, Santa Ana, California F i r s t National Trust & Savings Bank, Santa Barbara, California Bank of Tehachapi, Tehachapi, California F i r s t National Bank, Crows Landing, California F i r s t National Bank, Eugene, Oregon F i r s t National Bank, San Jacinto, California F i r s t Savings Bank, San Jacinto, California Farmers & Merchants Bank of Watts, Los Angeles, C a l i f o r n i a As of date of acquisition Deposits (Approx.) Branches 1,137,000 3 — 2,879,000 1,063,000 722,000 — 852,000 — (Newly organized) 6 a , 000 932,000 1 16,799,000 379,000 552,000 4,150,000 — 1,924,000 712,000 3 — 4,267,000 25,530,000 9,739,000 — 1,014,000 2,196,000 34,806,000 — 1,046,000 — 594,000 — 3,861,000 1? W^g Additional f o r 19AS F i r s t National Bank Lebanon, Oregon Monroe State Bank Monroe, Oregon $ 9,714,010.00 1,080,000.00 -6Year Name of Bank Benton County State Bank, Corvallls, Oregon tt F i r s t National Bank, Mountain View, California ft F i r s t National Bank, Oakdale, C a l i f o r n i a ft Stanislaus County Savings Bank, Oakdale, C a l i f o r n i a tt F i r s t National Bank, Turlock, C a l i f o r n i a 1947 Bank of Beaumont, • Beaumont, C a l i f o r n i a ft Carlton State & Savings Bank, Carlton, Oregon fl F i r s t National Bank, Delano, C a l i f o r n i a tt Yamhill State Bank, Yamhill, Oregon 1948 American Commercial & Savings Bank, Moorpark, C a l i f o r n i a As of date of acquisition Deposits (APOTOX.) Branches 9,351,000 1 1946 3,821,000 8,055,000 —— 3,409,000 6,605,000 2,205,000 — 976,000 9,635,000 1,502,000 1,246,000 Each of the banks so acquired and now operated and controlled byrespondent i s engaged i n interstate commerce within the purview of Section 7 of the Act of Congress approved October 15, 1914 (Clayton Act), PARAGRAPH FIVE—A further part of the expansion of respondents banking interests was accomplished i n the following manner: Respondent, either d i r e c t l y or through one or more of i t s controlled companies or agents, acquired either a controlling stock interest i n or the banking business of an independent bank and contemporaneously therewith or thereafter caused such independent bank and branches, i f any, of such bank to be converted into a branch or branches of a bank already operated and controlled ty respondent, and the banks and branches of such banks so acquired and converted are today operating as branches of one or more of the banks l i s t e d i n Paragraph Four above. Included among the banks so acquired and converted since respondents organization i n 1928 are the following: Year 1928 n n ii Maine of Bank Branches of Merchants National Bank, Los Angeles, C a l i f o r n i a United Security Bank & Trust Co., San Francisco, C a l i f o r n i a (Head o f f i c e and 28 branches) Branches of San Diego State Bank, San Diego, C a l i f o r n i a F i r s t National Bank, Eureka, C a l i f o r n i a Number of banking o f f i c e s acquired Deposits and converted (Approx.) 23 29 146,883,000 4 1 2,405,000 -7- Year 1928 ft tt tt tt tt tt tt tt tt tt tt tt tt tt tt tt « tt tt tt tt Name of Bank Motherlode National Bank, Sonora, California, Bank of Oxnard, Qxnard, California Vallejo Commercial National Bank Vallejo, California F i r s t National Bank, Grass Valley, California Northern C a l i f o r n i a Bank of Savings, Marysville, California F i r s t National Bank, Alturas, California Central Bank of California Auburn, California (Head o f f i c e and 4 branches) Branches of Berkeley Bank, Berkeley, California F i r s t National Bank, Chino, California Cloverdale Commercial & Savings Bank, Cloverdale, California F i r s t National Bank, Colton, California Bank of Dixon, Dixon, California F i r s t National Bank, Exeter, C a l i f o r n i a F i r s t National Bank, Geyserville, California Bank of P a c i f i c Grove, P a c i f i c Grove, California Petaluma Savings Bank, Petaluma, California Richmond Commercial & Savings Bank, Richmond, California San Carlos Bank, San Carlos, California State Bank of Ramona, Ramona, California F i r s t National Bank, South Pasadena, California Lassen Industrial Bank, Susanville, California (Head o f f i c e and 1 branch) Commercial Bank, Turlock, California (Head o f f i c e and 1 branch) Number of banking o f f i c e s acquired and converted Deposits ( Aporox.) 1 153,000 1 99,000 1 1,707,000 1 420,000 1 3,305,000 1 522,000 5 1,460,000 5 1 427,000 1 176,000 1 795,000 1 1,102,000 1 558,000 1 331,000 1 1,274,000 1 3,109,000 1 261,000 1 171*, 000 1 354,000 1 566,000 2 1,383,000 2 1,727,000 -8- Year 1928 Name of Bank E l Dorado County Bank Placerville, California it Dairymen^ Coast Bank, Valley Ford, C a l i f o r n i a (Head o f f i c e and 2 branches) tt Golden State Bank, Walnut Park, California 1929 The Oakland Bank, Oakland, California (Head o f f i c e and 8 branches) tt F i r s t National Bank, Portervilie, California tt Amador County Development Bank, Jackson, C a l i f o r n i a tt Citizens State Savings Bank, Gardena, C a l i f o r n i a tt National Bank of Hermosa Beach, Hermosa Beach, C a l i f o r n i a tt Bank of Isleton, Isleton, C a l i f o r n i a tt F i r s t National Bank, Long Beach, C a l i f o r n i a tt Arroyo-Seco State Bank, Los Angeles, California tt Florence National Bank, Los Angeles, California tt Branches of P a c i f i c National Bank, Los Angeles, California tt Monterey Park Commercial & Savings Bank, Monterey Park, California tt Bank of Norwalk, Norwalk, C a l i f o r n i a tt Bank of San Clemente, San Clemente, California tt F i r s t National Trust & Savings Bank, Whittier, C a l i f o r n i a tt Commercial & Savings Bank of Sutter County, Yuba City, C a l i f o r n i a Broadway Commercial & Savings Bank, 1930 Burlingame, California tt George Bates & Company, Bankers, Portland, Oregon tt Bank of East Portland, Portland, Oregon Number of banking o f f i c e s acquired and converted Deposits (Arorox.) 1 1,759,000 3 2,033,000 1 122,000 9 60,324,000 1 3,228,000 1 201,000 1 256,000 1 236,000 1 601,000 1 6,524,000 1 861,000 1 714,000 6 1 312,000 1 842,000 11 322,000 1 4,869,000 1 811,000 1 294,000 1 1,430,000 I 1,018,000 - 9 - Name of B&nk 1932 !! ft tt 1933 t» tt tt n tt tt tt n tt 1934 tt tt 1935 tt tt tt it tt VI tt Livestock State Bank, Portland, Oregon Southeast Portland Bank, Portland, Oregon West Side State Bank, Los Angeles, C a l i f o r n i a F i r s t National Bank, Alhambra, C a l i f o r n i a The Gresham Bank, Gresham, Oregon F i r s t National Bank, Sebastopol, C a l i f o r n i a Oregon State Bank, Portland, Oregon American National Bank, Portland, Oregon Montavilla Savings Bank, Portland, Oregon F i r s t National Bank, Astoria, Oregon F i r s t Inland National Bank, Pendleton, Oregon Shute Savings Bank, H i l l s b o r o , Oregon F i r s t National Bank, Salem, Oregon Bank of Woodbum, Woodbum, Oregon F i r s t National Bank, Condon, Oregon F i r s t National Bank, Cucamonga, C a l i f o r n i a F i r s t National Bank, Puente, C a l i f o r n i a Russ-Williams Banking Company, Ferndale, C a l i f o r n i a McCloud National Bank, McCloud, C a l i f o r n i a Wallowa National Bank, Enterprise, Oregon F i r s t National Bank, LaGrande, Oregon Commercial National Bank, Lakeview, Oregon F i r s t National Bank, Medford, Oregon F i r s t National Bank, Tillamook, Oregon F i r s t National Bank, Union, Oregon Number of banking o f f i c e s acquired and converted i i Deposits (Atrorox.) 324,000 (newly organized) i 613,000 i 2,243,000 i (newly organized) i 269,000 i 405,000 X 4,832,000 1 (restricted) 1 1*328,000 1 1,950,000 1 (restricted) 1 1,153,000 1 (restricted) 1 170,000 1 166,000 1 684,000 1 543,000 957,000 1 577,000 1 1,082,000 1 600,000 1 2,667,000 1 1,368,000 1 368,000 - 10 - Name of Bank Year 1936 II it tt it it II it II it it II II II II II tt tt tt tt tt tt tt Number of banking o f f i c e s acquired and converted F i r s t National Bank of Southern Oregon Grants Pass, Oregon F i r s t National Bank, C o q u i l l e , Oregon F i r s t National Bank, Ashland, Oregon F i r s t National Bank, M e r r i l l , Oregon F i r s t National Bank, Klamath F a l l s , Oregon Sierra V a l l e y Bank, Loyalton, C a l i f o r n i a Plumas County Bank, Quincy, C a l i f o r n i a (Head o f f i c e and one branch) Bank of M i l p i t a s , Milpitas, California Citizens Bank, Laguna Beach, C a l i f o r n i a F i r s t National Bank, Fallbrook, C a l i f o r n i a C a l i f o r n i a F i r s t National Bank, Long Beach, C a l i f o r n i a F i r s t National Bank, San Dimas, C a l i f o r n i a Westwood National Bank, Westwood, C a l i f o r n i a Branch of Bank of Inglewood, Los Angeles, C a l i f o r n i a F i r s t National Bank, E l Monte, C a l i f o r n i a ' Delta Bank, Rio Vista, California F i r s t National Bank, Claremont, C a l i f o r n i a Bank of Point Arena, Point Arena, C a l i f o r n i a F i r s t National Bank, Downey, C a l i f o r n i a Crescenta Canada National Bank, Montrose, C a l i f o r n i a F i r s t National Bank, Del Rey, C a l i f o r n i a F i r s t National Bank, Atascadero, C a l i f o r n i a Calistoga National Bank, Calistoga, C a l i f o r n i a 1 1 1 Deposits (Annrox.) 1 , 4 6 0 , 0 0 0 617,000 1 , 1 8 3 , 0 0 0 1 431,000 1 2,959,000 1 3 2 1 , 0 0 0 2 337,000 1 3 0 6 , 0 0 0 1 471,000 1 303,000 1 4 , 0 4 0 , 0 0 0 1 3 1 1 , 0 0 0 1 609,000 1 1 907,000 1 541,000 1 851,000 1 185,000 1 154,000 1 265,000 1 350,000 1 230,000 1 778,000 -11- Year 1936 Name of Bank Branches of Seaboard Los Angeles, C a lNational i f o r n i a Bank, 1 it Lumbermen s National Bank, Bend, Oregon tt North Bend National Bank, North Bend, Oregon tt United States National Bank, Newburg, Oregon tt F i r s t National Bank, Elko, Nevada 1937 Fanners & Merchants National Bank, Eureka, Nevada II Kent National Bank, . Kent, Washington tt Auburn National Bank, Auburn, Washington tt F i r s t State Bank, Bremerton, Washington ft Castle Rock Bank, Castle Rock, Washington ft Kalama State Bank, Kalama, Washington tt Pasadena Savings Bank, Pasadena, C a l i f o r n i a tt Lindsay Savings Bank, Lindsay, C a l i f o r n i a ft F i r s t National Bank, Fontana, C a l i f o r n i a ft F i r s t National Bank, Glendora, C a l i f o r n i a ft F i r s t National Bank, Hynes, C a l i f o r n i a tt F i r s t Bank of Highland, Highland, C a l i f o r n i a tt F i r s t National Bank, Molalla, Oregon ft F i r s t National Bank of Coos Bay, Marshfield, Oregon ft F i r s t National Bank, Hood River, Oregon ft Steiwer & Carpenter Bank, F o s s i l , Oregon tt F i r s t National Bank, Oregon City, Oregon tt F i r s t State Bank, Las Vegas, Nevada Numb€>r of banking o f f i c >es acquired converted and Deposits (Arrorox.) 4 1 1,458,000 1 384,000 1 1,043,000 1 2,407,000 1 519,000 1 627,000 1 866,000 1 185,000 1 535,000 1 358,000 1 579,000 1 801,000 1 751,000 1 530,000 1 781,000 1 393,000 1 376,000 1 1*690,000 1 1,629,000 1 2 a , o o o 1 1,196,000. 1 3,211,000 -12- Name of Bank Y e a r 1 9 3 7 tt tt tt 1 9 3 8 tt tt tt 1 9 4 3 1 9 4 4 Mason Valley Bank, Yerington, Nevada Yuma Branch of Miners & Merchants Bank, Bisbee, Arizona Branches of Central Bank of Oakland, Oakland, C a l i f o r n i a F i r s t National Bank of Arizona at Phoenix, Phoenix, Arizona Coffman-Dobson Bank & Trust Company, Chehalis, Washington Toledo State Bank, Toledo, Washington State Bank of Winlock Winlock, Washington Bank of Alameda County, Alvarado, C a l i f o r n i a (Head Office and 2 branches) F i r s t National Bank of Lamanda Park, Pasadena, C a l i f o r n i a F i r s t National Bank, Clovis, C a l i f o r n i a Number of banking o f f i c e s acquired and converted 1 Deposits (Annrox.) 3 0 2 , 0 0 0 1 2 1 (Deposits included with F i r s t National Bank of Arizona l i s t e d i n Paragraph Four, herein) 1 2 , 6 4 0 , 0 0 0 1 8 4 , 0 0 0 1 3 3 3 , 0 0 0 3 2 , 6 5 2 , 0 0 0 1 1 , 8 3 0 * 0 0 0 1 1 , 9 0 9 , 0 0 0 PARAGRAPH SIX—A further part of the expansion of respondents banking interests was accomplished i n the following manner: Respondent, either d i r e c t l y or through one or more of i t s controlled companies or agents, acquired either a controlling stock interest i n or the banking business of an independent bank and contemporaneously therewith or thereafter caused the banking business of such independent bank and branches, i f any, of such bank to be transferred into an existing banking o f f i c e already operated and controlled by respondent and thereupon caused the banking o f f i c e of the independent bank so acquired t o be closed. Included among the banks so acquired and caused t o be closed by respondent were the following: Year 1 9 2 8 u Name of Bank Merchants National Bank, Los Angeles, C a l i f o r n i a (Head o f f i c e and 12 branches) Branches of United Security Bank & Trust Company, San Francisco, C a l i f o r n i a Number of banking o f f i c e s eliminated 1 3 2 5 Deposits (Ant>rox.) 1 2 3 , 3 1 4 , 0 0 0 13 - Year 1928 tt tt it N 19 tt tt ft tt ft ft ft tt tf tt tt ft tt ft tt Name of Bank Butte County Savings Bank, Chico, C a l i f o r n i a Bank of America, San Pedro (Los Angeies), C a l i f o r n i a San Diego State Bank, San Diego, C a l i f o r n i a (Head o f f i c e and one branch) Bank of Lake, Lakeport, C a l i f o r n i a F i r s t National Bank, Berkeley, C a l i f o r n i a F i r s t Bank of Jamestown, Jamestown, California P l a c e r v i l l e National Bank, Placerville, California F i r s t National Bank, Marysville, C a l i f o r n i a Second Avenue State Banl?, Los Angeles, California F i r s t National Bank, Auburn, C a l i f o r n i a Berkeley Bank, Berkeley, C a l i f o r n i a (Head o f f i c e and 1 branch) Chino Savings Bank, Chino, C a l i f o r n i a F i r s t Savings Bank, Colton, C a l i f o r n i a (Head o f f i c e and 1 branch) Security Savings Bank, Exeter, C a l i f o r n i a Sonoma County National Bank, Petaluma, C a l i f o r n i a F i r s t National Bank, Santa Rosa, California Branch of Lassen Industrial Bank, Susanville, California F i r s t National Bank, Turlock, C a l i f o r n i a New F i r s t National Bank, Visalia, California Security Savings Bank, Visalia, California V a l l e j o Bank of Savings, Vallejo, C a l i f o r n i a Number of banking o f f i c e s eliminated Deposits (Arrorox.) 1 2,057,000 1 599,000 2 973,000 1 553,000 1 2,914,000 1 151,000 1 453,000 1 1,033,000 1 446,000 1 459,000 2 5,110,000 1 189,000 2 302,000 1 419,000 1 1,525,000 1 559,000 1 1 1,745,000 1 503,000 1 306,000 1 1,325,000 - u - Year Name of Bank Branches of The Oakland Bank, Oakland, C a l i f o r n i a II F i r s t National Bank, Anaheim, C a l i f o r n i a tt F i r s t National Bank, Gardena, C a l i f o r n i a tt Graham National Bank, Los Angeles, C a l i f o r n i a It F i r s t National Bank, Healdsburg, C a l i f o r n i a tt F i r s t Savings Bank, Healdsburg, California tt P a c i f i c National Bank, Los Angeles, C a l i f o r n i a (Head o f f i c e and 2 branches) tt Donahue-Kelly Banking Company, San Francisco, C a l i f o r n i a tt Eagle Rock State Bank, Los Angeles, C a l i f o r n i a 1930 F i r s t National Bank, Ventura, C a l i f o r n i a tt Home Savings Bank, Ventura, C a l i f o r n i a (Head o f f i c e and 1 branch) tt Security Trust & Savings Bank, Portland, Oregon Atlantic Avenue Bank, 1931 Bell, California tt F i r s t National Bank, Ducor, C a l i f o r n i a Branch of F i r s t National Bank, 1932 Alhambra, C a l i f o r n i a tt F i r s t National Bank, Vacaville, C a l i f o r n i a tt Vacaville Savings Bank, Vacaville, C a l i f o r n i a tt F i r s t National Bank, So&ora, C a l i f o r n i a tt Tuolumne County Bank, Sonora, C a l i f o r n i a 1933 F i r s t National Bank, Redondo Beach, C a l i f o r n i a tt F i r s t National Bank, Orland, C a l i f o r n i a 1929 Number of banking o f f i c e s eliminated Deposits (Approx*) 4 1 3,602,000 1 456,000 1 386,000 1 1,073,000 1 948,000 3 14,095,000 1 2,156,000 1 306,000 1 1,551,000 2 1,649,000 1 238,000 1 504,000 1 216,000 1 1 213,000 1 288,000 1 2,426,000 1 948,000 1 821,000 1 399,000 - 15 Name of B(ank Year 1933 it it tt tt 1935 1936 it it tt tt tt tt tt 1937 tt tt it tt tt tt 1938 1939 Bank of Lassen County, Susanville, C a l i f o r n i a Sebastopol Savings Bank, Sebastopol, C a l i f o r n i a Hibernia Bank, Portland, Oregon National Bank of Commerce, Astoria, Oregon State Bank of Echo, Echo, Oregon Portuna State Bank, Fortuna, C a l i f o r n i a State Bank of Ashland, Ashland, Oregon F i r s t National Bank, Riverside, C a l i f o r n i a San Dimas Savings Bank, San Dimas, C a l i f o r n i a Bank of Inglewood, Inglewood, C a l i f o r n i a (Head o f f i c e and 1 branch) Pomona..Commercial & Savings Bank Pomona, C a l i f o r n i a F i r s t National Bank, Paso Robles, C a l i f o r n i a Ferndale Bank, Ferndale, C a l i f o r n i a Seaboard National Bank, Los Angeles, C a l i f o r n i a (Head o f f i c e ) Central Bank of Oakland, Oakland, C a l i f o r n i a (Head o f f i c e ) Los Nietos Valley Bank, Downey, C a l i f o r n i a Covina Valley Savings Bank, Covina, C a l i f o r n i a F i r s t National Bank, Covina, C a l i f o r n i a F i r s t Central National Bank, Oalexieo, C a l i f o r n i a F i r s t Savings Bank, Glendora, C a l i f o r n i a Bank of Lakeview, Lakeview, Oregon F i r s t National Bank, Napa, C a l i f o r n i a Estacada State Bank, Portland, Oregon Number of banking o f f i c e s eliminated Deposits (Avvrox.) i 1,262,000 i 579,000 i 1,797,000 i 841,000 i 79,000 i 143,000 i 289,000 i 2,216,000 i 265,000 2 1,787,000 1 789,000 1 614,000 1 857,000 1 13,491,000 1 37,664,000 1 1,317,000 1 980,000 1 1,050,000 1 856,000 1 608,000 1 784,000 1 3,948,000 1 150,000 -16- Year Name of Bank r Branch of Bank of Pinole, Crockett, C a l i f o r n i a Bank of Suisun, 19a Suisun, C a l i f o r n i a tt Winters National Bank, Winters, C a l i f o r n i a 1942 Fanners & Merchants Bank, Gardena, C a l i f o r n i a tt Citizens National Bank, Ontario, C a l i f o r n i a 1943 Bank of Gait, Gait, C a l i f o r n i a 19M Bank of Corning, Corning, C a l i f o r n i a tt F i r s t National Bank, Laton, C a l i f o r n i a tt Branch of Bank of Newman, Newman, C a l i f o r n i a 1948 F i r s t National Trust & Savings Bank, Fullerton, C a l i f o r n i a m o Number of banking o f f i c e s eliminated Deposits (Approx.) 1 1 1,209,000 1 328,000 1 710,000 1 1,481,000 1 543,000 1 1,752,000 1 932,000 1 1 4,044,000 PARAGRAPH SEVEN—Commencing on or about May 18, 1943, and at variQus times thereafter respondent has attempted, either d i r e c t l y or through one or more of i t s controlled companies or agents, to acquire a controlling stock interest i n the Citizens National Trust & Savings Bank, Los Angeles, California. In furtherance of such attempts respondent has acquired and now owns, either d i r e c t l y or through one or more of i t s controlled companies or nominees, approximately 58,937 shares of the said Citizens National Trust & Savings Bank, which number of shares represents approximately 23 per cent of the t o t a l number of shares of said bank now outstanding. Citizens Nat i o n a l Trust & Savings Bank i s a national bank operating through a head o f f i c e and 33 branches, a l l located i n Los Angeles County, California, having deposits of individuals, partnerships and corporations of approximately $315,000,000. Citizen? National Trust & Savings Bank i s engaged i n interstate commerce within the purview of Section 7 of the Act of Congress approved October 15, 1914 (Clayton Act). Should respondent acquire a cont r o l l i n g stock interest i n such bank the number of banking o f f i c e s which respondent controls i n Los Angeles County, California, would be increased from approximately 157 to 191, or from approximately 42 per cent of a l l banking o f f i c e s i n Los Angeles County to approximately 51 per cent i n such county; and the amount of deposits of individuals, partnerships and corporations which respondent controls i n such county would be increased from approximatel y $1,656,000,000 to $1,971,000,000 or from 37 per cent to 45 per cent of a l l such deposits i n such county* PARAGRAPH EIGHT—Upon information and b e l i e f , that respondent, unless restrained, intends to and w i l l further expand i t s banking interests -17by acquiring the controlling stock interest i n the Citizens National Trust & Savings Bank of Los Angeles, California, as w e l l as controlling stock interests i n other independent banks now operating or which i n the future w i l l be operating i n the States of California, Oregon, Nevada, Arizona and Washington i n competition with one or more of the banks now controlled by respondent. PARAGRAPH NINE—The acquisition by respondent of the capital stocks of the banks l i s t e d i n Paragraphs Four, Five and Six herein, as w e l l as the acquisition by i t of the stock of Citizens National Trust & Savings Bank, Los Angeles, California, was contrary to law i n v i o l a t i o n of Section 7 of the said Clayton Act, and the e f f e c t of such acquisition of such stocks may be, has been and i s : (a) To substantially lessen competition i n the commercial banking business between some or a l l of such banks; or (b) To restrain commerce i n the commercial banking business i n the sections or communities i n which such banks were severally engaged at the time of such acquisition or i n some of such sections or communities; or (c) To tend to create a monopoly of commerce i n respondent i n the commercial banking business, particularly i n banking o f f i c e s , bank deposits and bank credit i n the five-state area of California, Oregon, Nevada, Arizona and Washington or i n various sections or communities i n the said f i v e states. WHEREFORE, THE PREMISES CONSIDERED the Board of Governors of the Federal Reserve System on t h i s 24th day of June, A. D. 1948, issues i t s complaint against said respondent. NOTICE Notice i s herety given you, Transamerica Corporation, respondent herein, that the 12th day of October, A. D. 1948, at 10:30 o'clock i n the forenoon, i s hereby fixed as the time and the o f f i c e s of the Board of Governors of the Federal Reserve System, i n the City of Washington, D. C., as the place, when and where a hearing w i l l be had on the charges set forth i n t h i s complaint, at which time and place you s h a l l have the r i g h t , under said Act, to appear and show cause why an order should not be entered ty said Board requiring you to cease and desist from the v i o l a t i o n of the law charged i n t h i s complaint and to divest yourself of the stock -18of the Citizens National Trust & Savings Bank, Los Angeles, California, and the stocks of any or a l l of those banks l i s t e d i n Paragraph Four herein. IN WITNESS WHEREOF, the Board of Governors of the Federal Reserve System has caused t h i s , i t s complaint, to be signed by i t s Secretaiy, and i t s o f f i c i a l seal to be hereto affixed, at Washington, D. C., t h i s 24th day of June, A. D. 1948. By the Board. (SEAL) (signed) S. R. Carpenter Secretaiy.
@FedFRASER