Show fr Denies V robe Jobe Onus WASHINGTON ASHINGTON Feb 7 CUP UP- UP riner S. S Eccles of the federal erve board denied Monday ronday that instigated the antitrust pro- pro dings edings ings against Transamerica ry rp for p personal or private busi- busi reasons Eccles who disqualified himself a a judge in the case in order to against the big western king ng empire took the w witness ind nd d at the start of the second ck ek k of the reserve boards board's antist antist antist anti- anti st hearings is charged with alion of the Clayton antitrust through its chain banking options op op- opI I in five western states I e boards board's complaint alleges that I samerica controls more than banks in Washington Oregon i Arizona and Nevada d d' V that its operations tend ard monopoly Eccles les devoted the first hour hourt L t See Page rage 2 Column 5 Eccles Denies Starting Banking Firm Probe I Continued fro from Page One Oue of his hs testimony to reviewing re his background in the banking business business business busi busi- ness and as a member of the reserve reserve reserve re re- re- re serve board Transamerica attorneys had charged that the Utah man Instigated instigated instigated gated the complaint because Transamerica activities competed with those of or an Eccles family holding company in the Twelfth federal reserve district Eccles said his family's holding company and Its banking operations operations operations opera opera- had most cordial and satisfactory satisfactory satisfactory satis satis- factory banking relations with the Bank of America a Transamerica Transamerica Transamerica Trans Trans- america subsidiary in California and Oregon He said also that Amalgamated Sugar Co of which he is chairman chairman chairman chair chair- man and in which he holds heavy interests does a substantial amount of financing through Bank of America I Most Cordial Our company has had most satisfactory satisfactory satisfactory sat sat- and cordial relations with Bank of America Eccles fied fled Eccles said he started in the banking business at the age ege o of 23 in 1913 At that time he said he became a director and vice president of Thatcher Brothers Banking Co Logan Utah He said he started out with small stock holdings but expanded rapidly to the point where he and his family were operating on a large scale through gh a holding company company com corn pany known kno as First Securities Corp The company still operates in Utah Idaho and Wyoming he said Eccles originally was appointed to the federal reserve board by the late President Roosevelt in November November November No No- vember 1934 He became chairman chairman chairman chair chair- man of the reserve resene board in jn 1936 and held that job until Feb 1 I 1948 President Truman appointed appointed appointed ap ap- ap- ap pointed Thomas B. B McCabe as chairman and Eccles stayed on as asa asa asa a board member Eccles said he had known kno A. A P P. P Giannini head of Transamerica since 1916 and that their relations relations relations rela rela- still are cordial Eccles s testified that he opposed President Roosevelt's death sentence sentence sentence sen sen- tence program for bank holding companies He said he favored strict regulation regulation regulation regu regu- lation of bank holding companies rather than outlawing them He said liquidation of holding companies companies com corn panics and their banks in the manner manner man man- ner ncr proposed by the dea death th sentence sentence sentence sen sen- tence would have been deflationary deflationary deflationary and would have caused financial chaos Eccles said his plan was to prevent prevent prevent pre pre- vent uncurbed expansion of bank holding companies such as that o of Transamerica He pointed out that with ith the exception of Transamerica holding holding holding hold hold- ing companies have become smaller small small- er since the banking hoda holiday of 1933 |