Manhattan Company

Manhattan Company
	File:Bank of the New York Company.png Manhattan Company (1799-1955) letterhead, c. 1922
Founded	September 1, 1799; 227 years ago by Aaron Burr, American politician and businessman
Defunct	1955
Fate	Merged with Chase National Bank
Successor	Chase Manhattan Bank
Headquarters	40 Wall Street, New York City, New York, U.S.

The Manhattan Company was established in New York on September 1, 1799, as a bank and holding company. In 1955, it combined with Chase National Bank to create the Chase Manhattan Bank, which later became a foundational entity of today's JPMorgan Chase & Co.

18th century

Entrepreneur and political figure Aaron Burr founded the Manhattan Company with the initial public purpose of providing clean water to Lower Manhattan. Nonetheless, its main objective was to penetrate New York's banking industry, then controlled by Alexander Hamilton through the Bank of New York and the First Bank of the United States. To circumvent Hamilton’s resistance, Burr exploited a provision in the company's charter permitting unused funds to be allocated to banking activities. He successfully raised $2 million, dedicating $100,000 toward water infrastructure while directing the remainder toward banking ventures.

The original water supply system proved inadequate, utilizing hollowed logs and wells vulnerable to contamination. Following several cholera epidemics, a dependable water source was finally secured with the construction of the Croton Aqueduct between 1837 and 1842.

On April 17, 1799, a committee was established by the Manhattan Company to oversee capital management. The discount and deposit office commenced operations at 40 Wall Street on September 1. The initial board featured prominent business figures including Daniel Ludlow, Brockholst Livingston, and Aaron Burr himself. Early shareholders comprised influential personalities such as John Jacob Astor, Stephen Van Rensselaer, and former Vice President George Clinton, evidencing strong market presence and strategic financial leadership.

19th century

By July 1800, the bank had initiated dividend payments, and in 1808 it divested its waterworks to the city for $1.9 million, thereafter concentrating solely on banking operations. Despite this transition, it retained its identity as a water company until 1899 and continued to maintain a Water Committee responsible for overseeing water quality.

Leadership changes included John Gerard Coster assuming the presidency in 1825, followed by Maltby Gelston in 1829. Gelston was a former member of the New York State Assembly and hailed from a distinguished family connected to notable figures like Henry Rogers Winthrop.

In 1847, Caleb O. Halsted—a textile merchant from Elizabeth, New Jersey—was appointed president, succeeding Jonathan Thompson who had led since 1840 and previously served as Collector of the Port of New York under Presidents Monroe and Adams. The Manhattan Company became one of the original 52 founding members of the New York Clearing House Association in 1853.

James M. Morrison advanced from first teller in 1840 to president in 1860, serving until health issues prompted his resignation in 1879. John S. Harberger succeeded him but passed away in 1880 after just one year. William Henry Smith of William H. Smith & Co., a dry goods firm, was then elected president; he retired by 1885 but continued his involvement with LaFarge Decorative Arts Company.

In 1891, Stephen Baker was named vice president. A financier descended from an original Manhattan Company stockholder, Baker ascended to the presidency in 1893 at age 34 after John Stewart Kennedy served temporarily following D.C. Hays’ resignation. Baker’s tenure ushered in a new era of expansion and strategic development for the company.

20th century

During Stephen Baker's presidency, the bank grew significantly from its initial location on Wall Street established in 1799, expanding to forty-eight branches throughout New York City and amassing assets of $300 million. By 1920, it had merged with the Bank of Long Island, Bank of the Metropolis, and Merchants' National Bank of New York, with Raymond E. Jones, formerly president of Merchants', appointed as vice president. It is noteworthy that Merchants' National was originally chartered in 1804 by Alexander Hamilton as a competitor to Aaron Burr's Manhattan Company.

In 1923, the bank's headquarters were temporarily relocated to the Prudence Building before commencing construction in 1929 on 40 Wall Street. This building briefly held the title of the tallest in the world until the Chrysler Building surpassed it in 1930.

After leading for 34 years, Stephen Baker passed the presidency to his son, J. Stewart Baker, in 1927, who would later assume the role of chairman. The bank bolstered its capital repeatedly through acquisitions including Flushing National Bank, Bayside National Bank, Queens-Bellaire Bank, First National Bank of Whitestone, Bronx Borough Bank, and First National Bank of Brooklyn—ultimately operating sixty-one branches citywide.

In December 1928, a strategic partnership was formed with International Acceptance Bank, founded by Paul Warburg, allowing shareholders substantial stock ownership and broadening its foreign securities operations under International Manhattan Company, Inc., directed by James Warburg.

By March 1929, capital rose from $16 million to $22.5 million to facilitate full acquisition of International Acceptance Bank. J. Stewart Baker continued as president of the Bank of Manhattan Company while becoming vice chairman of International Acceptance; Paul Warburg took on the role of associate chairman of the board.

In December 1929, a reorganization created a holding company named Manhattan Company with capital increased to $40 million to support further acquisitions. This holding entity controlled the Bank of Manhattan Trust Company, International Acceptance Bank, and International Manhattan Company. Baker remained president before dedicating his efforts solely to the holding company.

Following Paul Warburg’s death in 1932, J. Stewart Baker assumed chairmanship of Manhattan Company; James Warburg became vice chairman; and F. Abbott Goodhue was appointed chairman of International Acceptance Bank.

In October 1932, amid changing public sentiment against banks affiliating with non-banking enterprises, Manhattan Company reverted to a banking institution under the name Bank of the Manhattan Company. It either absorbed or divested its subsidiaries accordingly while maintaining capital around $56.8 million.

By March 1938, deposits exceeded $505 million and total assets were over $612 million.

Lawrence C. Marshall succeeded Goodhue as president in December 1948 and served until 1955.

The bank merged with Chase National Bank in 1955 to establish Chase Manhattan Corporation.

Chemical Banking Corporation acquired Chase Manhattan in 1996 but retained the Chase name, creating at that time the largest bank holding company in the United States.

21st century

In December 2000, the institution completed the acquisition of J.P. Morgan & Co., resulting in the creation of JPMorgan Chase & Co, marking a significant advancement in its expansion and market presence.

As of August 2020, Standard Chartered Bank (Hong Kong) Limited continues to offer the Manhattan credit card, a product that remains from its 2000 takeover of Chase Manhattan's retail banking operations in Hong Kong.

List of presidents of the Manhattan Company

Daniel Ludlow, 1799
Henry Remsen, 1808
John Gerard Coster, 1825
Maltby Gelston, 1829
Jonathan Thompson, 1840
Caleb O. Halsted, 1847
James M. Morrison, 1860
John S. Harberger, 1879
William Henry Smith, 1880
D. C. Hays
John Stewart Kennedy, 1893
Stephen Baker, 1893
J. Stewart Baker, 1927
F. Abott Goodhue, 1932
Lawrence C. Marshall, 1948

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