Manufacturers Trust

Biggest of the three banks which once planned to merge with Bank of United States was Manufacturers Trust Co. (TIME, Nov. 10). Last week, Manufacturers reported on its condition as of Jan. 2, revealing the psychological effect which the Bank of United States failure had upon Manufacturers' depositors. Between Sept. 24 and Jan. 2, Manufacturers' total deposits fell $109,000,000 (to $219,000,000) while its capital, surplus and undivided profits dropped $35,500,000.

Coinciding with this report, however, came an announcement showing that a potent Manhattan banker and his friends still have faith in Manufacturers, have backed up their faith with cash. Harvey Dow Gibson, chairman of New York Trust Co.'s executive committee, revealed that he & associates have bought a large block of stock in Manufacturers, that he will become president, that some of his associates may later take places on the directorate. The stock was bought from Goldman Sachs Trading Corp. which previously held a 32% interest in Manufacturers. How much was bought and at what figure remained undisclosed. A current estimate was that Banker Gibson & Group hold 30% which, at last week's prices, is worth over $11,000,000.

Banker Gibson is 49, entered the banking profession 18 years ago when he became assistant to the president of Liberty

National Bank. From 1917-21 he was Liberty's president, and when it merged with New York Trust assumed the same position in the latter bank. In 1929 he resigned as president, was made chairman of the executive committee. Other of Banker Gibson's experiences include working for American Express Co. after he graduated from Bowdoin and, after that, a vice-presidency of Raymond & Whitcomb, travel agents, which he & friends controlled. During 1919 he was U. S. Red Cross commissioner for all Europe. He lives in Locust Valley, L. I., plays tennis, rides with the Meadowbrook.

Although New York Trust is identified with J. P. Morgan & Co., and although Ivy Lee, famed publicist for the Rockefellers, was present when Mr. Gibson's announcement was made, Mr. Gibson denied his associates are either the Morgan or Rockefeller interests, said perhaps eventually he will reveal some of them. The reasons he gave for the deal were: "It is because my associates and I believe so firmly in the opportunities for the enlargement and expansion of the services of an institution of this kind that we have invested our money . . . and except to take an active interest in its development."

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