New York Trust Company
| Company type | Private |
|---|---|
| Industry | Banking, Trust services |
| Founded | April 3, 1889 |
| Founder | Charles S. Fairchild |
| Defunct | 1959 |
| Fate | Merged with Chemical Corn Exchange Bank to form Chemical Bank New York Trust Company |
| Headquarters | New York City , United States |
Area served | United States |
Key people | Charles S. Fairchild (founder and first president), Otto T. Bannard, Mortimer N. Buckner, Harvey Dow Gibson, Artemus L. Gates, John E. Bierwirth, Charles J. Stewart, Hulbert S. Aldrich |
The New York Trust Company was a prominent institution specializing in trust services and wholesale banking, primarily catering to substantial industrial clients. It eventually combined with the Chemical Corn Exchange Bank, creating an entity that evolved into what is known today as Chemical Bank.
19th century
The New York Security and Trust Company was established on April 3, 1889, with an initial capital investment of $1,000,000, appointing Charles S. Fairchild as its inaugural president. Fairchild brought considerable financial acumen to the organization, having previously served as the Attorney General of New York and the 38th United States Secretary of the Treasury.
Early stakeholders included notable personalities such as former New York Governor Roswell P. Flower, financier James J. Hill, and industrialist James Stillman. Fairchild’s background also featured a partnership at the investment banking firm Lee, Higginson & Co., which contributed to his strategic guidance during the company's early development.
20th century
In 1904, the New York Security and Trust Company merged with the Continental Trust Company but retained its original name while relocating its headquarters to the Continental Trust offices on Broad Street. The merged firm held capital amounting to $3 million, with Charles S. Fairchild serving as chairman of the board and Otto T. Bannard—formerly president of Continental Trust—as president. The following year, in 1905, the institution adopted the name New York Trust Company.
Mortimer N. Buckner took over as president in 1916, succeeding Bannard who transitioned to chairman of both the board and executive committee. In 1920, New York Trust combined with Liberty National Bank of New York—which had recently absorbed Scandinavian Trust Company—forming an entity with $10 million in capital and nearly $20 million in undivided profits and surplus. The merged company operated from the American Surety Company Building at 100 Broadway. Buckner assumed the role of chairman while Harvey Dow Gibson, formerly president of Liberty National Bank, became president. The board was composed of influential bankers and industry leaders.
In 1921, New York Trust was a party in the significant Supreme Court case New York Trust Co. v. Eisner, which upheld its authority in managing estates.
Artemus L. Gates became president in 1929 at age 34, distinguishing himself as the youngest leader of a major downtown New York bank. Gates had risen through Liberty National Bank prior to its merger and later served as chairman of the executive committee; meanwhile, Buckner continued as board chairman.
By June 1941, New York Trust reported total assets nearing $695 million. Following Gates’s appointment as Assistant Secretary of the Navy for Aeronautics under President Franklin D. Roosevelt, John E. Bierwirth succeeded him as president.
In 1949, New York Trust expanded through a $5 million cash acquisition of Fulton Trust Company, increasing its assets and incorporating Fulton’s executives into its board. Later that year, Bierwirth departed to become head of National Distillers Products Corporation; Charles J. Stewart then assumed the presidency.
Hulbert Aldrich held leadership roles as director and president from 1950 until 1959. A planned merger with Manufacturers Trust Company in 1952 was abandoned due to opposition from shareholders; Stewart resigned during this period but returned to lead Manufacturers Trust as president in 1959.
By 1958, a holding company representing Henry Phipps’s estate was identified as New York Trust’s largest shareholder.
The 1959 merger between New York Trust and Chemical Corn Exchange Bank united a wholesale-focused bank with a retail-oriented institution to create Chemical Bank New York Trust Company—ranking third in size within New York City and fourth nationally. Post-merger leadership included Chemical Corn’s chairman Harold H. Helm retaining his positions as chairman and president; Adrian M. Massie from New York Trust became chairman of the trust committee; Hulbert S. Aldrich was appointed vice chairman alongside Chemical Corn’s Gilbert H. Perkins. Prior to merging, New York Trust operated seven branches—ranking ninth largest in NYC—while Chemical Corn maintained ninety-four offices—fourth largest in the city.
Noteworthy Leadership
- Charles S. Fairchild, served as president from 1889 to 1904, previously held positions as New York's Attorney General and U.S. Secretary of the Treasury.
- Otto T. Bannard, led the company as president between 1904 and 1916, also recognized for his 1909 bid for New York City mayor.
- Mortimer N. Buckner, president from 1916 to 1921, went on to direct the New York Clearing House.
- Harvey Dow Gibson, held the presidency from 1921 to 1929 before becoming head of Manufacturers Trust Company.
- Artemus L. Gates, president during 1929–1941, later appointed Assistant Secretary of the Navy for Aeronautics.
- John E. Bierwith, led from 1941 to 1949 and subsequently became president of National Distillers Products Corporation.
- Charles J. Stewart, president between 1949 and 1952, afterwards assumed leadership at Manufacturers Hanover Trust.
- Hulbert S. Aldrich, served as president from 1952 until 1959.
- Alexander Stewart Webb, held roles as secretary in 1902 and vice president in 1904, distinguished banking professional.
- James G. Blaine, vice president who advanced to presidency of Fidelity Trust Company in 1926.
- Joseph A. Bower, served as vice president.
- Norman B. Ream, acted as trustee.
These leaders significantly influenced the firm’s strategic direction, fostering its expansion and strengthening its presence in the financial sector over many years.
See also
References
- Notes
- Sources
External links
- "New York Trust Co. v. Eisner", 256 U.S. 345 (1921), available at the Library of Congress
- Articles with short description
- American companies disestablished in 1959
- American companies established in 1889
- Banks based in New York City
- Banks established in 1889
- Banks disestablished in 1959
- Defunct banks of the United States
- Defunct companies based in New York (state)
- JPMorgan Chase
- 4
- Companies of the United States by year of establishment