Bank of the Manhattan Company ORIGIN HISTORY PROGRESS 40 Wall Street New York [Illustration: PRESENT OFFICE OF THE MANHATTAN COMPANY 40-42 WALL STREET Building erected jointly in 1884 by the Manhattan Company and the Merchants' National Bank] BANK OF THE MANHATTAN COMPANY CHARTERED 1799 A PROGRESSIVE COMMERCIAL BANK [Illustration: CHIEF OF THE MANHATTANS] 40 WALL STREET NEW YORK [Illustration: Common Seal] On May 8th, 1799, the Committee of By-Laws reported "that they haddevised a common seal for the Corporation, the description of which isas follows: "Oceanus, one of the sea Gods, sitting in a reclining posture on arising ground pouring water from an urn which forms a river andterminates in a lake. On the exergue will be inscribed 'Seal of theManhattan Company. '" There are nine banks now in existence whose history reaches back intothe Eighteenth Century. Of these, two are in Massachusetts, two inConnecticut, one in Pennsylvania, one in Delaware, one in Maryland andtwo in New York. Corporate banking in New York began with the organization of the Bank ofNew York by Alexander Hamilton in 1784, which received its charter in1792. For fifteen years this bank, together with the New York branch ofthe first Bank of the United States, were the only banks doing businessin either the City or State of New York. With Hamilton and the Federalsin control of the Legislature, new bank charters were unobtainable. Thismonopoly of banking facilities in the City and State was of greatstrategic value to the political party in control, and naturally arousedjealousy and resentment among the members of the opposition, whoseleader was Aaron Burr. [Illustration: EXCERPT FROM CHARTER] In 1798 New York City suffered from a severe yellow fever epidemic, which was attributed to an inadequate and inferior water supply. Uponthe assembling of the Legislature in 1799, an association ofindividuals, among whom Aaron Burr was the moving spirit, applied for acharter for the purpose of "supplying the City of New York with pure andwholesome water. " With a capital of $2, 000, 000, the project was anambitious one for those days, and, as there was considerable uncertaintyabout the probable cost of the water system, a clause was inserted inthe charter, permitting the Company to employ all surplus capital in thepurchase of public or other stock or in any other monied transactions oroperations, not inconsistent with the constitution and laws of New Yorkor of the United States. A great effort was made to defeat the charter on account of this clausegranting the Company banking privileges. But the necessity for a properwater system, which could be procured only by the organization of aresponsible company with large capital, carried it through theLegislature and it received the Governor's signature. [Illustration: FORM OF EARLY STOCK CERTIFICATE] The Bill was passed April 2d, 1799, and by April 22d books were openedfor public subscription to the $2, 000, 000 Capital Stock of the ManhattanCompany, the par value of which was $50. These original books are stillin the possession of the Company, and contain the signatures of many ofthe prominent men of the time. By May 15th the entire amount had beensubscribed by several thousand persons--the City of New York havingtaken 2, 000 of the shares. The Charter provided that the Recorder of thecity should be _ex-officio_ a director of the Company, a provision whichwas in effect for 108 years, until the abolition of the office in 1907. [Illustration: SUBSCRIPTIONS OF DIRECTORSReproduced from original subscription book] [Illustration: OATH OF FIRST PRESIDENT] THE WATER SYSTEM At the first meeting of the Directors, held at the house of EdwardBarden, Innkeeper, on April 11th, 1799, the following Directors werepresent: DANIEL LUDLOW, JOHN WATTS, JOHN B. CHURCH, BROCKHOLST LIVINGSTON, WILLIAM LAIGHT, PASCAL N. SMITH, SAMUEL OSGOOD, JOHN STEVENS, JOHN B. COLES, JOHN BROOME, AARON BURR, andRICHARD HARRISON, Recorder of the City of New York, Ex. Officio, the only absentee being William Edgar. Daniel Ludlow was chosen President, and the following minute was made: The principal object of this incorporation being to obtain a supply of pure and wholesome water for the City of New York. RESOLVED that Samuel Osgood, John B. Coles and John Stevens be a committee to report with all convenient speed the best means to be pursued to obtain such supply. [Illustration: OLD WOODEN WATER MAINS] On May 6th, 1799, the water committee was empowered "to contract for asmany pine logs as they may think necessary for pipes and also for boringthe same. " [Illustration: Contemporary Cartoon] A number of wells were sunk, reservoirs and tanks built, and thedistributing system extended generally through the city south of CityHall. About 1836 the system was extended north along Broadway as far asBleecker Street, and at that time the company had about twenty-fivemiles of mains and supplied 2, 000 houses. [Illustration: MANHATTAN COMPANY RESERVOIR ON CHAMBERS STREET] While the water was said to be "wholesome, " its quality did not giveentire satisfaction, as may be seen from the muddiness of the water inthe glass held by "Pure Manhattan" in the contemporary cartoonreproduced on the opposite page. Over one of the earliest wells, at the corner of Reade and CenterStreets, a tank of iron plates was erected. This tank is now inclosed inan old-fashioned building which is still owned by the Manhattan Company. The Company continued to operate its water service until about the timethe Croton system was completed in 1842. [Illustration: OLD WATER GATE DUG UP IN PARK ROW IN 1900] FOUNDING AND EARLY HISTORY OF THE BANK On April 17, 1799, a committee of the Directors was appointed "to consider the most proper means of employing the capital of the Company. " The committee reported on June 3, 1799, in favor of opening an office ofdiscount and deposit, and a house was bought on the site of the presentNo. 40 Wall Street, in which, on September 1, 1799, the "Bank" of theManhattan Company began business. The following is one of the earliest advertisements, reproduced from theMercantile Advertiser, October 9, 1799: MANHATTAN COMPANY. The Office of Discount and Deposit will open for the transaction of business, for the present, at 10 o'clock in the forenoon, and continue open until 3 o'clock in the afternoon, when the business of the day will be closed. HENRY REMSEN, Cashier. September 24. [Illustration: WALL STREET IN 1803Present No. 40 Wall Street] The first action of the Directors after the opening of the Bank was: RESOLVED, That this Board will hereafter meet twice a week, to wit, on Mondays and Thursdays of each week, at 11 o'clock. The policy of semi-weekly meetings still prevails in the ManhattanCompany, and its Board of twelve Directors keeps in close touch with allits affairs. [Illustration: MANHATTAN COMPANY CURRENCY] Two months after the Bank was opened the Directors RESOLVED, That a committee be appointed to visit the vaults and examine the cash and look over the effects of the Manhattan Company deposited therein. Thus, at the outset, the Manhattan Company required its Directorsperiodically to examine its cash and securities, a safeguard which, 106years later, the State of New York made compulsory for all State bankinginstitutions. The Bank of the Manhattan Company was profitable from the start andcommenced paying dividends in July 1800. The total dividends to andincluding January, 1913, have aggregated $19, 726, 000. [Illustration: FRACTIONAL CURRENCY USED IN UTICA] Although the main office of the Bank has always been at the present No. 40 Wall Street, in the autumn of 1805 all the banks moved temporarily tothe Village of Greenwich to escape the usual autumn fever epidemic. TheDirectors then determined to provide a country office for use during the"sickly season. " Many persons offered sites; among them "Mr. Astorproposed verbally to cede eight lots of ground near Greenwich, beingpart of his purchase from Gov. Clinton. " Finally land was acquiredbetween the "Bowery Road" and the East River. From 1809 to 1819branches of the Bank were maintained in Utica and Poughkeepsie. In 1805 negotiations were consummated for a "union of the capitals andinterests" of the New York State Bank of Albany and the ManhattanCompany. A bill authorizing the consolidation was offered in theLegislature, but it failed to pass, and the plan was abandoned. In 1808 the Legislature, in enacting certain amendments to the Charterof the Manhattan Company, reserved for the State the right to take 1, 000shares of its capital stock. This right was exercised and the capitalstock was increased for the purpose from $2, 000, 000 to $2, 050, 000. Boththe State and the City of New York are still stockholders, this beingthe only bank stock which the State holds. In 1833, as shown in the cartoon reproduced on the following page, theManhattan Company was one of the banks to receive the Governmentdeposits when they were withdrawn from the second United States Bank byPresident Jackson. [Illustration: Published and for sale wholesale and retail by A Imbertat his Caricature Store No 106 Broadway] PRESENT ORGANIZATION AND POLICY OF THE BANK In 1853 the Manhattan Company became one of the original members of theNew York Clearing House Association, and stands, in order of seniority, No. 2 on its roll. From 1853 down to 1880, the Manhattan Company's deposits averagedbetween $3, 000, 000 and $5, 000, 000. The deposits doubled during theeighties, again during the nineties, and again in the decade ending1910. This growth has been made along healthy and normal lines, and notby absorbing or consolidating with other banking institutions. The factthat the Manhattan Company is an entirely independent institution hasdoubtless assisted its growth in recent years. The steady increase in both the deposits and the surplus of theManhattan Company is evidence of its vitality, its sound bankingtraditions and its ability to keep its methods so modernized as to giveefficient service to its widening circle of clients. To meet both itsown needs and those of its commercial and banking patrons, wellorganized credit and foreign exchange departments are maintained. [Illustration: Building of the Manhattan CompanyWALL STREET IN 1860] The Manhattan Company, acting as the reserve agent of many State banksand trust companies throughout the country, has a substantial volume ofbank deposits. But it was originally established as an "Office ofDiscount and Deposit, " and is today primarily a commercial bank, seekingthe active accounts of merchants and manufacturers and extending themaccommodation in keeping with their credit and standing, for which thediversified character of its deposits has always provided ample funds. 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