U.S. Files Suit
To Block Merger
Of Large Banks
WASHINGTON (UPI) - The
federal government Tuesday filed
suit to block the merger of two
large California banks. The Jus
tice Department contended that
the merger would seriously and
unlawfully impair present and fu-i
ture competition. I
The civil suit, filed in U.S. Dis
trict Court in San Francisco,
named as defendants the Crocker
Anglo National Bank, with head
quarters in San Francisco; the
Citizens National Bank, Los An
geles, and the Trans-America
Corp., San Francisco, a holding
company which has working capi
tal of citizens.
The suit charged that the merg
er would foster mergers by other
large banks in the state and im
pair competition as a result.
It said the proposed merger
would violate the anti-merger sec
tilm of the Clayton Anti-Trust Law
and the restraint of trade section
of the Sherman Anti-Trust Law.
Atty. Gen. Robert F. Kennedy
said the department asked for a
preliminary injunction against the
merger, scheduled for Nov. 1,
pending outcome of the suit. The
department also asked that the
case and the injunction request
be heard by a three-judge court.
The merger would create the
fourth largest bank in California
with assets of well over $3 billion
and more than 9 per cent of the
commercial banking business in
the state, the complaint said.
It said creation of such a bank
might well foster mergers of oth
er large banks in Northern and
Southern California in order to
achieve the competitive advan
tages of a statewide branch bank
ing system.
In San Francisco, Enimelt G.
Solomon, Crocker-Anglo president,
said he would recommend to the
board that the government action
be vigorously contested.
"The management of citizens
will take similar action," he said.
"Our counsel have advised that,
in their opinion, the department
of justice will not be successful
in obtaining a preliminary in
injunction.' Defense Bill Gets
Approval In House
WASHINGTON (UPI) The
House Tuesday approved a "no let
down" defense spending bill
second largest in peacetime his
tory. The measure would provide
S47.2 billion to keep America in
fighting trim.
The roll call vote was 335 to 3.
The bill now goes back to the
Senate for final concurrence
which would send it along to the
White House. . ,w
The only "no" votes in the
House were by Reps. Bruce Al
ger, R-Tex., Alvin E. O'Konski,
R-Wis., and Thomas B. Curtis,
R-Mo.
The bill was a compromise
worked out by House and Senate
negotiators from separate ver
sions passed earlier by the two
chambers. It was $1.7 billion less
than President Kennedy request
ed. But it still supported intact
the 2.7 million-man military force
called for by the chief exectuvie.
Rep. George H. ilahon, D-Tex.,
chairman of the House defense
appropriations subcommittee, said
the bill would show the world that
the American people have "not
let down our guard" because of
the signing of the limited nuclear
test ban treaty with Russia.
"We continue to be alert to the
dangers of Communist aggres
sion," he told the House.
Mahon said the appropriation
represented a declaration of U.S.
intent to maintain clear military
superiority over the Russians.
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