Chatham Phenix National Bank and Trust Company of New York

Chatham Phenix National Bank and Trust Company of New York

Industry	Banking
Predecessors	Chatham National Bank (1812-1911) Phenix National Bank (1850-1911)
Founded	1911 (as Chatham and Phenix National Bank) 1925 (as Chatham Phenix National Bank and Trust Company of New York)
Fate	Acquired in 1932 by Manufacturers Trust
Headquarters	Singer Building, New York City , United States
Areas served	United States
Key people	Louis G. Kaufman (President) George M. Hard (Chairman)
Divisions	Chatham Phenix Corporation, Chatham Phenix Allied Corporation

The Chatham Phenix National Bank and Trust Company, headquartered in New York City, was closely connected with the Chatham Phenix Corporation. Its origin traces back to the formation of Chatham and Phenix National Bank in 1911, which resulted from Chatham National Bank acquiring Phenix National Bank’s assets for $1,880,000. The bank grew through the incorporation of smaller entities such as Mutual Alliance Trust Company and Century Bank in 1915, becoming the pioneering national bank to manage multiple branches within a single city alongside its central office.

By 1925, the institution was restructured as Chatham Phenix National Bank and Trust Company, boasting assets near $300 million, positioning it among the top ten largest banks in the United States at that period. The bank’s expansion continued until its 1932 merger with Manufacturers Trust, enhancing its competitive stance in the market.

Phenix Bank and Chatham Bank

Phenix Bank originated in 1812 as the financial arm of the New York Manufacturing Company, initially named Wire Bank due to its focus on wire sales. It gained independence in 1817, adopting the name Phenix Bank with headquarters located at 24 Wall Street. By 1894, Lombard & Ayres controlled a significant portion of its holdings through Phenix National Bank in London, where Josiah Lombard served as a director.

Chatham Bank was founded later, in 1850. On August 14, 1910, after fifty years of service as president, George M. Hard stepped down from that role and assumed the position of chairman. Shortly thereafter, Louis Graveraet Kaufman took over as president while also maintaining his presidency at First National Bank of Marquette under special permission. At this time, Chatham's deposits were approximately $7 million.

1911: Merger of Phenix and Chatham

In 1911, under Kaufman’s guidance, Chatham National Bank merged with Phenix National Bank. The transaction involved Chatham paying $1.88 million to acquire Phenix's assets, resulting in the creation of Chatham and Phenix National. As of January 7, 1911, their combined deposits amounted to $17.96 million. This consolidation enjoyed the backing of financier J. Pierpont Morgan. Notable families such as the Astor and Goelet had longstanding associations with the bank.

1915-1924: Expansion through Acquisitions and Branch Development

In 1915, the integration of Century Bank and its branches marked Chatham National Bank as the pioneer national bank to operate multiple branches within the same city as its headquarters. That January, negotiations between Chatham and Phenix National led to the acquisition and subsequent liquidation of Mutual Alliance Trust Company, overseen by Chairman George M. Hard and President Louis G. Kaufman. The merger, valued at $32 million, was finalized on January 14, 1915, under Kaufman’s direction. By the end of that year, Chatham-Phenix ranked third nationwide in terms of profit relative to capital stock. Deposits had climbed to nearly $86 million by late 1916, with a network of twelve branches functioning under the national charter. The bank also relocated its offices to the Singer Building in December 1916. In mid-1917, it demonstrated support for the war effort by contributing dividends to the Red Cross War Finance Committee.

By January 1921, Chatham and Phenix stood out among New York financial institutions for increasing deposits throughout the year while carrying no liabilities to the Federal Reserve Bank. On November 7, 1921, it expanded further by acquiring New York County National Bank as its twelfth branch, pushing deposits close to $163 million. As of March 1921, it was one of only four national banks in New York City operating branch offices alongside Mechanics and Metals National, Irving National, and National City Bank. In early 1922, Chatham and Phenix endorsed the Woodrow Wilson Foundation by facilitating donations for a public service award. Deposits rose from $141.7 million at year-end 1921 to $145.1 million by March 1922, while total assets reached $176.6 million.

1925-1931: Incorporation of Trust Company of New York

The establishment of Chatham Phenix National Bank and Trust Company of New York occurred in 1925 following its merger with the Metropolitan Trust Company of New York, originally founded in 1881. This consolidation elevated the institution into the ranks of the ten largest banks across the United States at that time.

On June 15, 1928, financier Louis L. Horch arranged a $1,925,000 bond issuance through the American Bond and Mortgage Company to finance the Master Apartments project. These bonds featured a 6% Guaranteed Sinking Fund Gold Bond Certificate secured by a trust mortgage held by Chatham Phenix National Bank and Trust Company. In 1929, Kaufman assumed the role of chairman at Chatham Phenix Allied Corporation, an investment firm capitalized at $50 million.

1932: Consolidation with Manufacturers Trust

In 1932, a merger united Chatham Phenix National Bank and Trust Company with Manufacturers Trust, which had been founded in Brooklyn in 1914. Kaufman was named chairman of the executive committee but stepped down within that same year. By his retirement in 1932, the bank had expanded fiftyfold since its inception in 1911.

On March 21, 1934, Chatham-Phenix served as trustee during the receivership proceedings for American Fuel and Power Company. A court decision in May 1935 ruled against Chatham Phenix National Bank and Trust Company concerning an employee stock sales offer made in August 1929; it was judged as promotional "sales talk" rather than a legally binding agreement.

In 1961, Manufacturers Hanover Trust Company was formed through the merger of Manufacturers Trust and Hanover Bank. It was noted by The New York Times that Manufacturers Trust traced its origins back to both Chatham Phenix National Bank and Trust Company as well as Manufacturers Trust Company—originally established in Brooklyn in 1853 as Manufacturers National Bank.

Directors

By early 1915, the board of directors featured notable individuals such as Louis G. Kaufman, P. S. du Pont, August Belmont Jr., Edward Shearson, Edward E. Loomis, Elbert H. Garry, Frederick D. Underwood, John Ringling, and Daniel J. Carroll. Additional members included Harden L. Crawford, Desmond Dunne, Ellis P. Earle, O. G. Fessenden, John H. Hansen, Horace E. Andrews, Frank J. Heaney, Parmely W. Herrick, Richard H. Higgins, H. Stuart Hotchkiss, William A. Law, Frank R. Lawrence, Waldo H. Marshall, Henry F. Shoemaker, Charles A. Starbuck, Sanford H. Steele, Albert A. Tilney, John D. Vermeule, and Samuel Weil.

Buildings and branch locations

Initially, the Chatham and Phenix bank occupied premises at 192 Broadway in Manhattan. By 1916, its headquarters had been situated at the intersection of Broadway and John Street for nearly five decades. At the close of December 1916, the institution relocated to the Singer Building, expanding its usable area from 20,000 to 26,000 square feet. This transition involved moving several hundred staff members and executives into what was acclaimed as "one of the largest and finest banking rooms in the city," outfitted with modern fixtures at a cost of $300,000.

By late 1916, the bank operated a dozen branches locally—distinguishing itself as the only national bank with such an extensive network. Between 1917 and 1918, it undertook renovations of a theater located at 205 East 57th Street, adjacent to its Third Avenue property; this project was designed by the architectural firm Mowbray & Uffinger, known for their expertise in bank structures. Following acquisition by Manufacturers Trust Company in 1933, this building reverted back to use as a theater.

In November 1919, retail space at 434-438 Broadway was leased by the bank through October 1940. In April 1920, plans were announced to relocate the Bowery branch to a site at Bowery and Grand Street with an investment of $500,000. By August 1921, the bank had entered into a lease agreement committing approximately $1 million over 42 years for premises at Seventh Avenue and Thirty-ninth Street.

The Chatham and Phenix edifice at 67 West 125th Street functioned as a meeting place for groups such as the Harlem Property Owners' Association as of February 1922. Additionally, the building located at 29-28 41 Avenue in Long Island City continued to be occupied by tenants as late as 1965.

See also

• List of banks
• List of bank mergers in the United States
• Banking in the United States
• Economy of New York City
• List of banks in the Americas
• List of New York companies

References

Informational notes

Citations