Liberty National Bank of New York
| Company type | Private |
|---|---|
| Industry | Banking, Trust company |
| Founded | April 3, 1889 in New York City, United States |
| Founder | Charles S. Fairchild, Roswell P. Flower, James Stillman, William Lafayette Strong |
| Defunct | 1959 |
| Fate | Merged with Chemical Corn Exchange Bank to form Chemical Bank New York Trust Company |
| Headquarters | New York City , United States |
Key people | Charles S. Fairchild (President 1889–1904), Otto T. Bannard (President 1904–1916), Mortimer N. Buckner (President 1916–1921), Harvey Dow Gibson (President 1921–1929), Artemus L. Gates (President 1929–1941), John E. Bierwith (President 1941–1949), Charles J. Stewart (President 1949–1952), Hulbert S. Aldrich (President 1952–1959) |
| Products | Trust and wholesale banking services for large industrial clients |
The New York Trust Company was a prominent institution in trust and wholesale banking, primarily focused on managing accounts for large industrial clients. It eventually combined with the Chemical Corn Exchange Bank, creating a merged organization that later evolved into Chemical Bank.
19th century
The New York Security and Trust Company received its charter on April 3, 1889, with Charles S. Fairchild appointed as its inaugural president and an initial capital stock of $1,000,000.[1] Fairchild brought extensive experience from his roles as former Attorney General of New York and the 38th United States Secretary of the Treasury, contributing valuable governmental and financial insight to the enterprise.[2]
Among the founders were notable figures such as ex-New York Governor Roswell P. Flower, financier James Stillman, and industrial leader William Lafayette Strong, reflecting the company’s strong connections within influential business circles.[2]
Prior to this, Fairchild had been affiliated with the Boston-based investment firm Lee, Higginson & Co., which helped solidify the company's roots in established financial sectors.[3]
20th century
In 1904, the New York Security and Trust Company absorbed the Continental Trust Company—established in 1890—and continued operations under the New York Security and Trust name from the Continental Trust’s offices on Broad Street. The combined entity held capital totaling $3 million, with Charles S. Fairchild serving as chairman and Otto T. Bannard, formerly president of Continental, appointed president. The institution was renamed New York Trust Company in 1905.
Mortimer N. Buckner took over as president in January 1916, succeeding Bannard, who transitioned to chairman of both the board and executive committee. In December 1920, New York Trust merged with Liberty National Bank of New York—founded in 1891 and recently consolidated with Scandinavian Trust Company. Following this merger, Buckner assumed the role of chairman while Harvey Dow Gibson, ex-president of Liberty National Bank, became president. The combined bank possessed $10 million in capital alongside nearly $20 million in undivided profits and surplus assets, operating out of the American Surety Company Building at 100 Broadway. Liberty National Bank’s former presidents included distinguished bankers such as Henry P. Davison and Seward Prosser.
The U.S. Supreme Court addressed a case involving New York Trust in 1921 titled New York Trust Co. v. Eisner, where the company acted as executor of J. H. Purdy’s estate.
In 1929, Artemus L. Gates was appointed president at age 34, marking him as the youngest individual to lead a major downtown New York bank; Gates was connected by marriage to Henry P. Davison and had joined Liberty National Bank in 1919 before transitioning to New York Trust after their union. Gates took on chairmanship of the executive committee while Buckner remained chairman of the board.
By mid-1941, New York Trust reported total assets amounting to $694.7 million. John E. Bierwith succeeded Gates as president after Gates accepted an appointment from President Franklin D. Roosevelt as Assistant Secretary of the Navy for Aeronautics.
In 1949, New York Trust acquired Fulton Trust Company for $5 million in cash at $250 per share. Bierwith continued as president; Arthur J. Morris, Fulton’s former president, became vice president at New York Trust. Fulton’s chairman Charles S. McVeigh along with trustees Stephen C. Clark, Charles J. Nourse, and Walter N. Stillman joined an expanded board at New York Trust.
Later that year, Bierwith departed to lead National Distillers Products Corporation; Charles J. Stewart took over as president after having joined New York Trust in 1930. Hulbert Aldrich served as director and held the presidency from 1950 through 1959.
A proposed merger with Manufacturers Trust Company emerged in 1952 involving an exchange ratio of 1⅔ shares of Manufacturers for each share of New York Trust; Stewart was expected to become Manufacturers’ president following the merger but opposition from shareholders caused the plan to collapse. Stewart subsequently resigned and joined Lazard Frères & Company before eventually becoming Manufacturers Trust president in 1959.
By 1958, a holding company representing Henry Phipps’ estate was identified as New York Trust’s largest shareholder.
In 1959, New York Trust merged with Chemical Corn Exchange Bank—a predominantly retail-focused institution—resulting in Chemical Bank New York Trust Company, which ranked third among banks in New York City and fourth nationally by size. Prior to merging, New York Trust operated seven branches (ranking ninth) while Chemical Corn maintained ninety-four (ranking fourth). Post-merger leadership included Chemical Corn’s chairman and president Harold H. Helm continuing his roles; Adrian M. Massie from New York Trust became chairman of the trust committee; and Hulbert S. Aldrich assumed vice chairmanship alongside Chemical Corn’s Gilbert H. Perkins.
Noteworthy Executives
- Charles S. Fairchild, served as president from 1889 to 1904; previously held the positions of Attorney General of New York and United States Secretary of the Treasury.
- Otto T. Bannard, led as president between 1904 and 1916; was a candidate for mayor of New York in 1909.
- Mortimer N. Buckner, president from 1916 until 1921; subsequently became head of the New York Clearing House.
- Harvey Dow Gibson, held the presidency from 1921 to 1929; later assumed leadership at Manufacturers Trust Company.
- Artemus L. Gates, president during 1929–1941; went on to serve as Assistant Secretary of the Navy for Aeronautics.
- John E. Bierwith, led the company from 1941 to 1949; afterward directed National Distillers Products Corporation.
- Charles J. Stewart, president between 1949 and 1952; later became head of Manufacturers Hanover Trust.
- Hulbert S. Aldrich, served as president from 1952 through 1959.
- Alexander Stewart Webb, appointed secretary in 1902 and elevated to vice president in 1904.
- James G. Blaine, vice president who eventually became president of Fidelity Trust Company in 1926.
- Joseph A. Bower, held the position of vice president.
- Norman B. Ream, acted as trustee.
See also
References
- Notes
- Sources
External links
- "New York Trust Co. v. Eisner", 256 U.S. 345 (1921), hosted by the Library of Congress