Consolidated National Bank

Last updated
Consolidated National Bank
Industry Banking
PredecessorsNone
FoundedJuly 1, 1902 (organized)
September 22, 1902 (open for business)
Founders Mortimer H. Wagar
DefunctMarch 7, 1909 (merged into National Reserve Bank)
FateMerged
Successors National Reserve Bank of the City of New York
Headquarters Manhattan,
New York City
,
United States
Key people
 Mortimer Wagar
Services Banking, etc.

Consolidated National Bank of New York was a bank operating in New York City. [1] Also referred to in the press as Consolidated National Bank, the institution was organized on July 1, 1902, with capital of $1 million. [2] Wrote The New York Times , the bank was "founded with the idea of cornering the business of the Consolidated Exchange and its brokers." [3] The bank opened for business at 57 Broadway on September 22, 1902, [1] and a year later the bank took out a five-year lease at the Exchange Court Building. [4] In 1906, the Consolidated Stock Exchange withdrew its deposits with the Consolidated National Bank. [3] In 1909, the bank voted to acquire the assets of Oriental Bank and merge them with Consolidated, creating the National Reserve Bank. The Consolidated name was operative for a short time afterwards. [5] [6]

Contents

History

1902: Formation

On February 11, 1902, The New York Times reported that around $600,000 had been subscribed to the capitalization of the Consolidated National Bank, with organization by founding president Mortimer H. Wagar. [7] Wagar had been president of the Consolidated Stock and Petroleum Exchange, or the Consolidated Stock Exchange of New York, [8] from which he retired around 1902 to join the Consolidated National Bank. [9] Also by February 11, 1902, a lease for portions of two floors in the Pinkerton Building at 57 Broadway had been arranged for the institution, with three months estimated until the start of the bank's opening. [7]

The Consolidated National Bank was organized on July 1, 1902. With fourteen members on the bank's board of directors, the officers were headquartered at 51 Broadway, with capital of $1 million. [2] In late August 1902, the bank elected three new directors. [10] On September 12, 1902, The New York Times reported that the organization of the Consolidated National Bank of New York had been completed with the filing of papers with the Controller of the Currency, with the first directors meeting held the subsequent week. The office was stated to be set for 37 Broadway in Manhattan. [11] The bank opened at No. 57 Broadway on Monday, September 22, 1902, with capital of $1,000,000 and a surplus of $1,000,000. [1] Willis S. Paine was founding president. [12]

1902-1905: Early profits

On October 23, 1902, the bank received the first amount of the cash it ordered, equating to $20,000 in the form of new five-dollar bank notes with Benjamin Harrison. The remainder of the $250,000 in bank notes ordered by the bank was delivered in tens and twenty dollar bills. The New York Times reported it as a "new national banknote," writing that "the back of the note is green and not brown, as is the case with the notes of most other banks." [13] At close of business day on November 25, 1902, the bank had profits of $1,012,995, and deposits of $2,607,946. It also had loans of 2,529,810. Total resources equated to $4,930,742. [14] Then situated at 57 Broadway, in September 1903, the bank took out a five-year lease on around 2,500 square feet of ground floor at the Exchange Court Building, which was located at the corner of Broadway and Exchange Place. [4]

It was reported on April 16, 1904, that Consolidated National Bank, with Willis Paine still as president, would begin clearing through the Fourth National Bank. [15] By November 16, 1904 Willis S. Paine served as president, with Mortimer H. Wagar as vice president. [16]

On January 8, 1905, the bank's president Willis S. Paine published a full-page op-ed in The New York Times arguing for frequent examinations of bank finances. [17] The annual directors meeting was held in January 1905, with several directors resigning or voted out. Stock for the bank was originally issued at $200, and by September 20, 1905, was selling around $175, and had paid no dividends. President Paine, when asked about the bank's ability to make money, stated "none of the banks has been making money. With money at 2.5 per cent, or 3 per cent., there is no chance to make money. The trust companies perhaps have been making money recently, but the banks have not." [18] Willis S. Paine resigned the presidency of the Consolidated National Bank of New York City around November 1905, with announced plans to travel the world. [12] [19]

1905-1907: Change in leadership

The day before November 1, 1905, the board elected O.F. Thomas as new president, replacing Willis S. Paine after Paine's resignation. At the time, The New York Times reported that the bank "has not been doing well in the matter of earnings, and Mr. Thomas, it was said had been brought into the bank's management in the belief that he would be instrumental in building up its business." At the time, the bank's original organizer, M.H. Wagar, stated that the original business model of catering to Consolidated Exchange depositors had not worked well overall, and that, as reported by the Times, "the institution from this time on was to be regarded as seeking a general business without any special reference to the interests of the Consolidated Exchange." [19]

On February 9, 1906, the Consolidated Stock Exchange withdrew its deposits with the Consolidated National Bank and moved them to the National Bank of North America. Wrote the Times the next day, "the Consolidated National Bank was founded with the idea of cornering the business of the Consolidated Exchange and its brokers, but since the bank passed into Mr. E.R. THomas's control after another of the Exchange officers have withdrawn from its Directorate." [3] By July 1907, the bank's shares were selling on the open market for $180 each. [20] E.R. Thomas sold his interest in the Consolidated National Bank in October 1907, also resigning from his positions. [21] On December 14, 1907, the Times reported that Consolidated National Bank was in the works to acquire the National Bank of North America. [22] The deal was vetoed on December 17, 1907, by National's president. According to the Times, the proposal had been "the purpose of the Consolidated National Bank's Directors to effect a reduction of the capital of their bank, which, with its surplus, is very much more than the present requirements of the business done, thereby returning to the stockholders a large amount of cash per share. This cash was to be used in acquiring stock in the National Bank of North America." [23]

1909: National Reserve Bank

On February 2, 1909, Consolidated ratified a plan to acquire the Oriental Bank "by allowing its shareholders to subscribe to the shares of a new institution at $150 a share." The Oriental Bank had closed the year prior, but had paid its depositors in full. The new institution, to be named the National Reserve Bank, combined aspects of both banks. A special meeting was called for February 18 for final ratification by stockholders. [24] On February 18, 1909, the bank stockholders voted to enact the merger proposed by the directors, to take over the assets of Oriental Bank and merge them with Consolidated, creating the National Reserve Bank of the City of New York. The plan increased capital of the bank from $1,000,000 to $1,200,000. At the same meeting, 23 directors were elected to the new board, including E. A. Fisher and Mortimer H. Wagar. The bank planned to keep the Consolidated name operative until March 1, 1909. [5] On March 2, 1909, [25] Will-tarn O. Allison [26] (W.O. Allison), president of Consolidated National Bank, was voted president of the new National Reserve Bank entity formed by Consolidated's absorption of Oriental Bank's assets. Thomas J. Lewis and R. W. Jones Jr. were elected vice presidents, [25] and George W. Adams, cashier. [26] With the merger of the reorganized Oriental Bank with the Consolidated National Bank of New York, capital was increased from $1,000,000 to $2,000,000. [26] The National Reserve Bank of the City of New York formally opened its doors for business on March 8, 1909, [26] at "the old banking quarters of the Oriental Bank" [25] at 182 Broadway, corner of John Street in Manhattan, [26] until new facilities at the City Investing Building could be completed at 165 Broadway. [25] In late April 1909, the National Reserve Bank, formerly named Consolidated National Bank, opened for business in the City Investing Building. [27]

Directors

When the Consolidated National Bank was organized on July 1, 1902, the fourteen directors included Jonathan B. Currey, Mortimer H. Wagar, George S. Hart, Willis S. Paine, R. A. Chesebrough, Chalence Whitman, Edward G. Burgess, Oscar L. Richard, O.D. Ashlay, George Crocker, John W. Griggs, J. Temple Gwathmey, Henry C. Brewster, and Perry Belmont. [2] In late August 1902, the bank elected Amzi L. Barber, Lyman G. Bloomingdale of Bloomingdale Brothers, and James G. Newcomb as directors. [10] The first directors meeting was held in late September 1902. [11]

On April 16, 1904, with Willis Paine still as president, four new directors were added. [15] It was reported on April 16, 1904, that new directors were added to Consolidated including Alonzo Burbank, Thomas F. Manville, William T. Brown, and Charles H. Patterson. [15] Early directors as of November 16, 1904 included Wagar, Chas H. Patterson, O.W. Richard. Willis S. Paine served as president, with Mortimer H. Wagar as vice president. [16] John W. Griggs retired as a director around November 1905. [12] On October 31, 1905, board vacancies were filled by E.R. Thomas, O.F. Thomas, Robert Maclay, and George B. Hays, all who were selected by E.R. Thomas. Four vacancies remained on the board, after the retirement of Willis S. Paine, O. M. Farrand, and J. W. Griggs. [19]

See also

Related Research Articles

<span class="mw-page-title-main">Manufacturers Hanover Corporation</span> Former bank holding company

Manufacturers Hanover Corporation was the bank holding company formed as parent of Manufacturers Hanover Trust Company, a large New York bank formed by a merger in 1961. After 1969, Manufacturers Hanover Trust became a subsidiary of Manufacturers Hanover Corporation. Charles J. Stewart was the company's first president and chairman.

<span class="mw-page-title-main">Corn Exchange Bank</span> New York state bank

The Corn Exchange Bank was a retail bank founded in 1853 in New York state. Over the years, the company acquired many community banks.

<span class="mw-page-title-main">Knickerbocker Trust Company</span> Defunct bank based in New York City, United States (1884–1912)

The Knickerbocker Trust was a bank based in New York City that was, at one time, among the largest banks in the United States. It was a central player in the Panic of 1907.

PaineWebber & Co. was an American investment bank and stock brokerage firm that was acquired by the Swiss bank UBS in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine and Wallace G. Webber. Operating with two employees, they leased premises at 48 Congress Street in May 1881. The company was renamed Paine, Webber & Co. when Charles Hamilton Paine became a partner. Members of the Boston Stock Exchange, in 1890 the company acquired a seat on the New York Stock Exchange. Wallace G. Webber retired after the business weathered a major financial crisis that hit the market in 1893.

<span class="mw-page-title-main">Mechanics and Metals National Bank</span> National Bank in New York

The Mechanics and Metals National Bank (MMNB) was a bank in New York City, founded in 1810 as the Mechanics National Bank. In 1910 it merged with National Copper Bank and took the Mechanics and Metals National Bank name. After a number of mergers and acquisitions, in 1926 MMNB consolidated with the Chase National Bank.

The New York Trust Company was a large trust and wholesale-banking business that specialized in servicing large industrial accounts. It merged with the Chemical Corn Exchange Bank and eventually the merged entity became Chemical Bank.

<span class="mw-page-title-main">Edward Russell Thomas</span>

Edward Russell Thomas was an American businessman and sportsman.

<span class="mw-page-title-main">Consolidated Stock Exchange of New York</span>

The Consolidated Stock Exchange of New York, also known as the New York Consolidated Stock Exchange or Consolidated, was a stock exchange in New York City, New York in direct competition to the New York Stock Exchange (NYSE) from 1885–1926. It was formed from the merger of other smaller exchanges, and was referred to in the industry and press as the "Little Board." By its official formation in 1885, its membership of 2403 was considered the second largest membership of any exchange in the United States.

<span class="mw-page-title-main">George Crocker (businessman)</span>

George Crocker was an American businessman. A member of Tuller & Co., he was also a director of several corporations, including Trust Company of America. He was second vice president of the Southern Pacific Railroad. In 1909, Crocker was valued between $10 million to $20 million. The 75-room, three-story Crocker Mansion was built in 1907 for Crocker in Mahwah, New Jersey, and is one of New Jersey's historical landmarks.

The National Reserve Bank of the City of New York was a bank in New York City that was formed from a merger of Consolidated National Bank and Oriental Bank in 1909. Deposits of the National Bank Reserve Bank were about $4,352,561 on January 13, 1914 and the bank had "a large number of country bank accounts, chiefly in the West and Southwest," handling a large degree of cotton exchange business. On January 27, 1914, the National Reserve Bank was taken over by the Mutual Alliance Trust Company, operating for a time as the Reserve Branch of the trust company.

The Mutual Alliance Trust Company was a trust company formed in New York City in 1902, with founders such as Cornelius Vanderbilt and William Rockefeller.

Mortimer Hartwell Wagar was an American banker and businessperson. Wagar was a member of the Consolidated Exchange for 33 years. He was president from 1900 until 1903. He retired from the exchange in June 1923, at which point he was vice president. He also helped organize the Clearing House of the Consolidated Exchange, where he was president.

Charles G. Wilson was an American financier and businessman. Wilson was president of the Consolidated Stock and Petroleum Exchange of New York from 1883 until 1900. As of December 1894, he was serving as President of the New York City Board of Health as well.

<span class="mw-page-title-main">Trust Company of America</span>

The Trust Company of America was a large company in New York City. Founded on May 23, 1899 in Albany, New York, its founding president was Ashbel P. Fitch and it was initially located in the Singer Building in Manhattan's Financial District. In 1907 the company absorbed the Colonial Trust Company, a commercial bank. During the Panic of 1907 it was the target of a bank run starting on October 23, 1907, which it survived with the backing of J. Pierpont Morgan and an infusion of gold from the Bank of England and other European sources. The company ultimately represented a consolidation of the North American Trust Company, the former Trust Company of America, the City Trust Company and the Colonial Trust Company. The Trust Company of America was absorbed by the Equitable Trust Company in the spring of 1912.

The North American Trust Company was a trust company based in New York City. It was organized in early 1896. At the start of 1898, the company was located in the American Surety Building at 100 Broadway. On April 3, 1900, the directors of the International Banking and Trust Company and the North American Trust Company unanimously voted to merge the two organizations under the new name the North American Trust Company. Other organizations were acquired in 1901, and in 1905 the City Trust, the North American Trust, and the Trust Company of America merged in what the Times called "the most important trust company consolidation of recent years." The new company was named the Trust Company of America.

The St. Louis Stock Exchange was a regional stock exchange located in St. Louis, Missouri. Opened in 1899, in September 1949, the St. Louis Stock Exchange was acquired by the Chicago Stock Exchange, and renamed the Midwest Stock Exchange.

<span class="mw-page-title-main">Continental Bank and Trust Company</span>

The Continental Bank and Trust Company of New York was a financial institution based in New York City, New York, United States. It was established in 1870 as the German-American Bank, which became the Continental Bank of New York. Originally in the Equitable Building at 120 Broadway, the bank was later headquartered at 50 Wall Street, 25 Broad Street, and starting in 1932 the Continental Bank Building It became known as the "brokers bank" for its collaboration with Wall Street brokers and investment banking interests. The institution was renamed the Continental Bank and Trust Company of New York around 1929, at which point it was involved in extending its business with acquisitions of commercial banking and fiduciary operations. Acquired banks included the Fidelity Trust Company in 1929, International Trust Company and Straus National Bank and Trust Company in 1931, and Industrial National Bank later that year. In 1947, the bank earned $804,000 in net profits. As of December 31, 1947, Continental had total resources of $202,000,000, and deposits of $188,000,000. It merged with the Chemical Bank and Trust Company in 1948.

<span class="mw-page-title-main">Fourth National Bank of New York</span>

The Fourth National Bank of New York was an American bank based in New York City.

The National Bank of Commerce in New York was a national bank headquartered in New York City that merged into the Guaranty Trust Company of New York.

The Metropolitan Trust Company of the City of New York was a trust company located in New York City that was founded in 1881. The trust company merged with the Chatham and Phenix National Bank in 1925 under the name of the Chatham Phenix National Bank and Trust Company of New York.

References

  1. 1 2 3 Among the banks The Banking Law Journal, volume 19, p. 664
  2. 1 2 3 "Wall Street Topics", The New York Times , New York City, p. 12, July 2, 1902, retrieved January 19, 2017
  3. 1 2 3 "Drops out of Thomas Bank", The New York Times , New York City, p. 3, February 10, 1906, retrieved January 20, 2017
  4. 1 2 "Consolidated National's New Quarters.", The New York Times , New York, p. 11, September 2, 1903, retrieved January 21, 2017
  5. 1 2 "Oriental Bank Merged", The New York Times , New York City, p. 6, February 19, 1909, retrieved January 19, 2017
  6. ↑ "Mutual Alliance Takes Over Bank; National Reserve Office Will Continue as Branch of Trust Company.", The New York Times , New York City, p. 12, January 28, 1914, retrieved January 19, 2017
  7. 1 2 "No Express Company Merger; Presidents of Three Concerns Deny Wall Street Reports.", The New York Times , New York City, p. 13, February 11, 1902, retrieved January 19, 2017
  8. ↑ "Consolidated Exchange - Closely Fought Election - Mr. Wagar Displaces President Wilson". The New York Times . 2012-06-10. Retrieved 2017-01-15.
  9. ↑ Nelson, Samuel Armstrong (1907). The Consolidated Stock Exchange of New York: Its History, Organization, Machinery and Methods. p. 19. Retrieved 2017-01-15.
  10. 1 2 "Consolidated Bank Directors", The New York Times , New York City, p. 10, August 26, 1902, retrieved January 19, 2017
  11. 1 2 "Consolidated National Bank", The New York Times , New York City, p. 12, September 12, 1902, retrieved January 19, 2017
  12. 1 2 3 "Full text of "The Shield; a magazine pub. quarterly by and in the interests of the Theta delta chi fraternity"". Archive.org. Retrieved 2017-01-15.
  13. ↑ "New National Banknote", The New York Times , New York, p. 16, October 24, 1902, retrieved January 21, 2017
  14. ↑ "Changes in New York Bank Conditions; The Exhibit Just Made to the Treasury Department.", The New York Times , New York City, p. 29, December 7, 1902, retrieved January 19, 2017
  15. 1 2 3 "Topics in Wall Street; Erie Strong on Reported Buying by Harriman Interests. Some Unfavorable Aspects of Further Issues of Notes -- Wabash Strong -Market Very Quiet and Price Changes Small.", The New York Times , New York City, p. 12, April 16, 1904, retrieved January 19, 2017
  16. 1 2 Greeley, Horace; Cleveland, John Fitch; Ottarson, F. J.; Schem, Alexander Jacob; McPherson, Edward; Rhoades, Henry Eckford (1905). The Tribune Almanac and Political Register. p. 395. Retrieved 2017-01-15.
  17. ↑ S. Paine, Willis (January 8, 1905), "Frequent Examinations a Necessity for the Banks; Willis S. Paine Writes of the Vigilance Needed to Guarantee Safety to Depositors and Stockholders.", The New York Times , New York, p. 36, retrieved January 21, 2017
  18. ↑ "Seeking to Control Consolidated National; Broker Carney Is Requesting Proxies for the Bank's Stock.", The New York Times , New York, p. 11, September 20, 1905, retrieved January 21, 2017
  19. 1 2 3 "LO.F. Thomas Now Heads Consolidated National; Is Elected President to Succeed Willis S. Paine.", The New York Times , New York, p. 13, November 1, 1905, retrieved January 21, 2017
  20. ↑ "Brokers Sue Joe Weber", The New York Times , New York, p. 16, February 24, 1909, retrieved January 21, 2017
  21. ↑ "Undesired Controls End", The New York Times , New York, p. 2, October 21, 1907, retrieved January 21, 2017
  22. ↑ "Bank Merger Assured; The Consolidated All Ready to Absorb the National of North America.", The New York Times , New York City, p. 13, December 14, 1907, retrieved January 20, 2017
  23. ↑ "Bank Merger Vetoed; Consolidated National Not to Acquire the National of North America.", The New York Times , New York City, December 18, 1907, retrieved January 20, 2017
  24. ↑ "Oriental Bank Merger Ratified", The New York Times , New York, p. 11, February 3, 1909, retrieved January 21, 2017
  25. 1 2 3 4 "Allison Heads Bank Merger", The New York Times , New York City, p. 16, March 3, 1909, retrieved January 19, 2017
  26. 1 2 3 4 5 "The Brooklyn Daily Eagle from Brooklyn, New York on March 7, 1909 · Page 12". Newspapers.com. 1909-03-07. Retrieved 2017-01-15.
  27. ↑ "Financial Notes", The New York Times , New York City, p. 27, April 25, 1909, retrieved January 19, 2017
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.