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National Bank of Commerce in New York

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National Bank of Commerce in New York
FormerlyBank of Commerce in New York
IndustryBanking
Founded1839; 185 years ago (1839)
Founders
Defunct1929; 95 years ago (1929)
FateMerged into Guaranty Trust Company of New York
SuccessorMorgan Guaranty Trust Company
J.P. Morgan & Co.
JPMorgan Chase
Headquarters
Manhattan, New York
,
United States
Key people

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 (which later became the Morgan Guaranty Trust Company, predecessor to J.P. Morgan & Co.).

History

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On January 1, 1839, the articles of association established the Bank of Commerce.[1] Before it opened to receive deposits on April 3, 1839, in the basement of the Merchants' Exchange, it had already subscribed $500,000 of its capital to a New York State loan for widening and deepening the Erie Canal. The original authorized capital of the bank was $5,000,000, of which $1,505,000 was taken up by the founders with the remainder publicly offered. The first president of the bank was Samuel Ward of Prime, Ward & King.[1]

The first annual meeting was in May 1839 and was held by 565 stockholders. The original directors of the bank were: James Brown, Isaac Carow, James Donaldson, Archibald Gracie, James Kent, Robert B. Minturn, Russell H. Nevins, Pelatiah Perit, John Rathbone Jr., Robert Ray, Samuel B. Ruggles, Charles H. Russell, John Austin Stevens, Jonathan Sturges, Peter Gerard Stuyvesant, Samuel Ward, and Stephen Whitney.[1][failed verification] After Ward's death on November 27, 1839, John Austin Stevens took over as president of the bank.

At the time of the National Banking Acts of 1863 and 1864, the Bank of Commerce was the largest bank in the country.[1] Charles Handy Russell, a dry goods merchant with Charles H. Russell & Co., succeeded Stevens as president in 1865 when the bank was converted to the National Bank of Commerce of New York. In 1859, Robert Lenox Kennedy was elected a director and, in 1868, he began serving as the bank's fourth president. He retired from the presidency in 1878 but remained involved as vice-president of the Bank under his successor Henry F. Vail (who had previously founded the Bank of the Republic with Gazaway Bugg Lamar).[2]

Merger with National Union Bank

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In 1900, the bank acquired the National Union Bank of New York which had been founded in 1893 by the directors of the New York Guaranty and Indemnity Company and its successor, the Guaranty Trust, and was associated with the Mutual Life Insurance Company (Mutual Life's president, Richard A. McCurdy, was a director of National Union). Joseph C. Hendrix, a former U.S. Representative from New York, was the president of National Union from its formation until its merger into the Bank of Commerce. Hendrix became president of the combined entity and J. Pierpont Morgan, the long-time vice president of the Bank of Commerce continued on as vice president of the combined entity.[3][a]

The combined entity had capital of $10,000,000, which was the capital of the Bank of Commerce in 1877 prior to its reduction to $5,000,000.[4] The consolidation plan "also has the merit, it is said, of providing for the Bank of Commerce the President which it has been looking for since W. W. Sherman retired from the place last July because of ill-health. William C. Duvall, who was cashier under Mr. Sherman, has been acting as President since then. It was at one time reported that the post was offered to Secretary of the Treasury Gage."[3]

Merger with Western National Bank

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In October 1903, the bank acquired the Western National Bank of the United States which had been founded in 1887.[5][6] The Western National Bank of the United States was itself the result of a merger in early 1903 of the larger Western National Bank of New York (which was closely associated with the Equitable Life Assurance Society)[7] and the smaller National Bank of the United States in New York (which was closely associated with the Mutual Life Insurance Company and the Morton Trust Company).[8] Western National's president, Valentine P. Snyder, was chosen as the head of the new institution with J. Pierpont Morgan, former Vice President of the National Bank of Commerce, as First Vice President of the new institution.[9] The combined entity had $25,000,000 of capital, $10,000,000 of surplus, and net deposits estimated at $120,000,000.[9]

"The interesting details of the physical transfer were taken up on Monday, the day when officially the merger was to have effect. They involved carrying some $16,000,000 of cash, of which $12,000,000 was in gold and $67,000,000 of securities in bags and boxes from the Western National Bank Building, on the northwest corner of Nassau and Pine Streets, to the building of the National Bank of Commerce, correspondingly situated at Nassau and Cedar Streets. It was a simple process, and one that attracted but little attention from the passing throngs."[9]

In 1911, James S. Alexander, became president of the bank following the April 1, 1911 retirement of Snyder.[10] At the same time, Paul Warburg was elected to succeed Jacob H. Schiff as a director of the bank.[10] In 1923, Alexander became chairman of the board of directors,[11] and Stevenson E. Ward became president.[12][13]

Merger with Guaranty Trust

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In 1929, the bank merged into the $2,000,000,000 Guaranty Trust Company of New York after a consolidation between the Guaranty Trust Company and the National Bank of Commerce of New York.[14] The new entity, which was brought together through the efforts of Myron C. Taylor (chairman of the finance committee of U.S. Steel), became the largest bank in the country with Guaranty bringing the largest trust business in the country and Commerce bringing its large commercial banking business.[15] Before the merger could be completed, the Bank of Commerce had to give up its national charter and become a state bank.[16] The combined entity with capital of $184,000,000 became operating in May 1929.[17] William C. Potter, president of the Guaranty Trust Co. became president of the combined institution.[14] James S. Alexander, chairman of the board of the Bank of Commerce, became chairman of the board of the new company.[18]

In 1959, Guaranty Trust merged with J.P. Morgan & Co. Although Guaranty Trust was nearly four times the size of Morgan, the Morgan executives took over management of the combined entity Morgan Guaranty Trust Company of New York.[19] Ten years after the merger, Morgan Guaranty established a bank holding company called J.P. Morgan & Co. Incorporated, but continued to operate as Morgan Guaranty through the 1980s before beginning to migrate back to use of the J.P. Morgan brand. In 1988, the company once again began operating exclusively as J.P. Morgan & Co. The firm merged with Chase Manhattan Bank in 2001 to form JPMorgan Chase.[20]

References

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Notes
  1. ^ Before the merger, the Bank of Commerce directors were J. Pierpont Morgan, John Claflin, George G. Haven, Joseph C. Hendrix, James N. Jarvie, Augustus D. Juilliard, John Stewart Kennedy, Woodbury Langdon, Charles D. Lanier, Alexander E. Orr, Charles H. Russell, and Frederick Sturges. The directors of the National Union Bank of New York were Samuel D. Babcock, John D. Crimmins, Frederic Cromwell, George G. Haven, R. Somers Hayes, Joseph C. Hendrix, Augustus D. Juilliard, Daniel S. Lamont, Richard A. McCurdy, F. P. Olcott, Henry H. Rogers, Hamilton McKown Twombly, and William C. Whitney.[3]
Sources
  1. ^ a b c d "GUARANTY TRUST MARKS CENTENARY; Merged Bank of Commerce Was Founded on Jan. 1, 1839, With $5,000,000 Capital". The New York Times. January 2, 1939. Retrieved 23 June 2021.
  2. ^ "IN AND ABOUT THE CITY; ROBERT LENOX KENNEDY DEAD DYING ON THE STEAMSHIP ON HIS WAY HOME". The New York Times. September 17, 1887. Retrieved 23 June 2021.
  3. ^ a b c "CONSOLIDATION OF BANKS; The Bank of Commerce and Union Directorates Take Action. TALK OF GREATER COALITION J. Pierpont Morgan and the Mutual Life Interested -- National City Bank Mentioned". The New York Times. January 11, 1900. p. 4. Retrieved 24 June 2021.
  4. ^ "NEW BANKS AUTHORIZED". The New York Times. March 16, 1900. Retrieved 24 June 2021.
  5. ^ "PLAN TO MERGE BIG BANKS NOW ASSURED; National Bank of Commerce and Western to Combine. Consolidated Institution to be Managed by a Committee of Three -- Mutual Life, Equitable Life, Morgan, Gould, and Morton Trust Interests". The New York Times. May 10, 1903. Retrieved 24 June 2021.
  6. ^ "BANK MERGER DETAILS; Western National to be Absorbed by the Bank of Commerce. New Institution Will Have $25,000,000 Capital -- Valentine P. Snyder May Be President". The New York Times. June 18, 1903. Retrieved 24 June 2021.
  7. ^ "BOSTON STOCK MARKET.; Western National Bank. Bank to Increase Its Stock". The New York Times. February 21, 1903. Retrieved 24 June 2021.
  8. ^ "TWO BANKS MERGED.; Western and United States Shareholders Vote Approval". The New York Times. January 14, 1903. p. 6. Retrieved 24 June 2021.
  9. ^ a b c "BIG INTERESTS MERGED IN BANK OF COMMERCE; Effect of the Absorption of the Western National. Closer Bond Between Equitable Life and Mutual Life Companies -- Executive Officers in Consolidation". The New York Times. October 7, 1903. p. 16. Retrieved 24 June 2021.
  10. ^ a b "NEW COMMERCE BANK HEAD.; James S. Alexander Promoted to Presidency to Succeed V.P. Snyder". The New York Times. September 7, 1911. Retrieved 24 June 2021.
  11. ^ "NEW POST CREATED FOR J.S. ALEXANDER; He Is Made Chairman of the Board of the National Bank of Commerce". The New York Times. June 1, 1923. Retrieved 24 June 2021.
  12. ^ Alexander, James Strange (1925). National Bank of Commerce in New York: Address by James S. Alexander, at Annual Meeting of the Shareholders January 13, 1925. National Bank of Commerce in New York. Retrieved 24 June 2021.
  13. ^ "EX-BANKER ENDS LIFE IN BRONXVILLE HOME". The New York Times. June 17, 1950. Retrieved 24 June 2021.
  14. ^ a b "BANK OF COMMERCE TO GIVE UP ITS TITLE; $2,000,000,000 Institution to Result From Merger Will Be Called Guaranty Trust Co". The New York Times. March 5, 1929. Retrieved 24 June 2021.
  15. ^ "$2,000,000,000 BANK, LARGEST IN COUNTRY, FORMED BY MERGER; Guaranty Trust and National Bank of Commerce Near End of Huge Transaction. NATIONAL CITY OUTRANKED Myron Taylor, Steel Executive, Is Credited With Being the Dominant Figure in Deal. STATEMENT READY MONDAY Skyscraper on Present Sites to House Both Is Reported Planned-- Share-for-share Exchange Seen. Resources of the Banks. Merger Regarded as Logical. Gained Prominence in Steel. Grew Largely Without Mergers. Alexander Power in Expansion". The New York Times. February 22, 1929. Retrieved 24 June 2021.
  16. ^ "ACTS ON BANK MERGER.; Guaranty Trusts Board Approves Union With Bank of Commerce". The New York Times. April 9, 1929. Retrieved 24 June 2021.
  17. ^ "BANK MERGER IN EFFECT.; Guaranty Trust Begins Business United With Bank of Commerce". The New York Times. May 7, 1929. Retrieved 24 June 2021.
  18. ^ "J.S. ALEXANDER QUITS GUARANTY TRUST; Ex-Head of Bank of Commerce to Retire as Chairman of Merged Institutions Jan. 1. HAD DISTINGUISHED CAREER Active in Financial Circles for 30 Years, He Was Cited by Three Nations for War Services". The New York Times. December 19, 1929. p. 42. Retrieved 24 June 2021.
  19. ^ "BANKS' DIRECTORS APPROVE MERGER; Boards of Guaranty Trust and Morgan Schedule Stockholder Votes BANKS' DIRECTORS APPROVE MERGER". The New York Times. February 9, 1959. Retrieved 24 June 2021.
  20. ^ McGeehan, Patrick (December 15, 2000). "Chase and Morgan Say Earnings Will Fall Short". The New York Times. Retrieved 24 June 2021.
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