USA > Massachusetts > Suffolk County > Boston > Metropolitan Boston; a modern history; Volume II > Part 4
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The year 1922 witnessed the conversion of several National banks into the State field, where they merged with trust companies. The Back Bay National, a newly chartered institution in 1918, and the Oceanic National, which was not started until 1921, both found their way to the Federal Trust Company. The Back Bay went directly to the Federal Trust Company on September 9, 1922. The Oceanic National went to the Metropolitan Trust Company, which up to 1915 had been the First
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METROPOLITAN BOSTON
Ward National Bank, on February 18, 1922. The Metropolitan Trust Company was taken over by the Federal Trust Company in the same year and at about the same time as the Back Bay National went to the Federal.
Early in 1923, the Federal Trust Company, which by this time repre- sented several merged institutions, was converted into a National Bank, receiving its charter on March 20.
The bank movements and the transfers back and forth from National to State banking fields, were somewhat complicated at this time and may appear confusing. The Haymarket National was converted into a trust company in 1922, after having been in existence only two years, and im- mediately was merged with the Massachusetts Trust Company, which in 1926 became a National Bank and was absorbed in that year by the At- lantic National.
The Commonwealth Trust Company, which has been mentioned pre- viously, gave up its State charter and became a National Bank on May 21, 1923, then merging with what was the Fourth-Atlantic National. The name was changed to the Commonwealth-Atlantic National Bank, and shortened in the following year to the Atlantic National, which is one of the existing banks at the present writing.
The International Trust Company, which was established in 1879, surrendered its State charter on June 15, 1923, and was taken over by the First National Bank. This institution, which also has been previously mentioned, had absorbed the Lincoln Trust Company in 1914, the Dor- chester Trust Company, the Old South Trust Company and the Hyde Park Trust Company in 1921, and the Market Trust Company, formerly the National Market Bank of Brighton, in 1922.
The South Boston Trust Company became a National Bank on April 20, 1923, for the purpose of becoming absorbed by the Federal National Bank, which had itself left the State field only one month earlier.
The year 1924 saw no changes in the National banks, but in 1925, the National Union Bank, the second oldest banking institution in Massa- chusetts, left the National field and was merged with the State Street Trust Company. Originally formed as the Boston Tontine Association, a quasi-bank with insurance features, it received its charter from the State in 1792, the certificate of incorporation being signed by John Han- cock, first Governor of Massachusetts.
The last of the mergers up to the time this brief history was written, came in 1926, when the Massachusetts Trust Company (the second in- stitution to bear that name) left the State field and was merged with the Atlantic National Bank.
So confusing do these bank changes appear, perhaps, as recorded year by year, that an alphabetical list of all of the National banks, with
A HISTORY OF BANKING IN BOSTON
the original date of incorporation, and showing where each bank went to, has been prepared as follows :
Incorporated. Name
Disposition.
1903-American National . Failed, 1905
*1828-Atlantic National
Existing Bank.
Merged with Fourth National, 1912
Absorbed People's National, 1922
Consolidated with Commonwealth Trust Co., 1923.
1833-Atlas National
Absorbed Boylston National, 1923. Absorbed Massachusetts Trust Co., No. 2, 1926. Consolidated with Webster National as Webster and Atlas National, 1904.
1918-Back Bay National
. Absorbed by Federal Trust Co., 1922.
1851-Blackstone National . Absorbed by Shoe and Leather National, 1900.
1832-Blue Hill National
Moved to Milton, 1882.
1853-Boston National
Absorbed by National Shawmut, 1898.
*1921-Boston National (New) . Existing Bank.
1845-Boylston National
Absorbed by Atlantic National, 1923.
1828-National Brighton
. Liquidated Voluntarily, 1882.
1853-Broadway National
. Failed, 1899.
1825-Bunker Hill National
Absorbed by City Trust Co., 1906. Sold to American Trust Co., 1910. . Failed, 1902.
1873-Central National
*1919-Citizens National
. Existing Bank (absorbed by National Shawmut, 1927 ).
1822-City National
1873-Colonial National
. Absorbed by Eliot National, 1898. Name changed from Manufacturers National, 1898. Became Commonwealth Trust Co., 1904.
1822-Columbian National
Absorbed by National Shawmut, 1898.
1850-National Bank of Commerce. . Absorbed by Merchants National, 1914.
1888-Commercial National
Merged with Security National, 1922, as Com- mercial Security National.
*1922-Commercial Security National. Existing Bank.
1871-National Bank of the Com- monwealth .Absorbed by National Shawmut, 1901. Consolidated with Manufacturers National, 1898.
1860 -- Continental National
1822-Eagle National
Absorbed by National Shawmut, 1898.
1872-Eleventh Ward National . Failed 1878.
1853-Eliot National
*1924-Engineers National.
Absorbed by National Shawmut, 1912. Existing Bank. Organized as Brotherhood of Lo- comotive Engineers National Bank.
Absorbed by Shoe and Leather National, 1898.
Absorbed by National Shawmut, 1906.
Absorbed by Beacon Trust Co., 1909.
*1923-Federal National
Originated as Federal Trust Co., 1899. Became National Bank, March 20, 1923.
Existing Bank. Absorbed Mechanics Trust Co., 1909.
Absorbed Back Bay National, 1922.
Absorbed Metropolitan Trust Co., 1922. Absorbed South Boston Trust Co., 1923.
*1859-First National
Existing Bank. Merged with Massachusetts National, 1903. Absorbed National Bank of Redemption, 1904. Absorbed International Trust Co., 1923. Became Metropolitan Trust Co., 1915.
1873-First Ward National
1875-Fourth National 1836-Freemans National 1824-Globe National
Merged with Atlantic National, 1912. Absorbed by National Bank of the Republic, 1907.
. Failed, 1899.
1832-Hamilton National Absorbed by National Shawmut, 1898.
1898-National Hamilton
Absorbed by Fourth National, 1902.
i
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1865-Everett National 1847-Exchange National 1851-Faneuil Hall National
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METROPOLITAN BOSTON
Incorporated. Name 1831-Hancock National
1920-Haymarket National
Absorbed by Massachusetts Trust Co., 1922.
1858 Hide and Leather National. .. Absorbed by State National, 1901.
1853-Howard National
. Absorbed by National Shawmut, 1898.
1883-Lincoln National
Absorbed by Central National, 1898.
1873-Manufacturers National
Merged with Continental National, and name changed to Colonial National, 1898.
1832-Market National
1854-National Market of Brighton. Became Market Trust Co., of Brighton, 1912.
1784-Massachusetts National
1854-Maverick National
1836-Mechanics National
1875-Merchandise National
*1831-Merchants National
Existing Bank.
Absorbed State National, 1912.
Absorbed National Bank of Commerce, 1914.
Absorbed Winthrop National, 1915.
Absorbed Old Boston National, 1916.
1875-Metropolitan National
1854-Monument National
1860-Mount Vernon National
Absorbed by Boylston National, 1905.
1813-New England National
Merged with South End National and became Hamilton Trust Co., 1913. Absorbed by Commonwealth Trust Co., 1914.
1825-North National
Absorbed by National Shawmut, 1898.
1850-Nat'l Bank of North America. Absorbed by National Shawmut, 1898. 1921-Oceanic National
1803-Old Boston National
1877-Pacific National
1833-People's National
Failed, 1882. Absorbed by Atlantic National, 1922.
Absorbed Everett National, 1898.
Absorbed Blackstone National, 1900.
Absorbed Shoe and Leather National, 1901.
1860-National Bank of the Republic .. Absorbed by National Shawmut, 1908.
1859-Revere National
*1853-National Rockland
*1833-Second National
1867-Security National
*1836-National Shawmut
Existing Bank.
Absorbed Columbian National, 1898.
Absorbed National Eagle, 1898.
Absorbed North National, 1898.
Absorbed Hamilton National, 1898.
Absorbed Market National, 1898.
Absorbed National Bank of North America, 1898.
Absorbed Howard National, 1898.
Absorbed Revere National, 1898.
Absorbed Boston National, 1898. Absorbed National Bank of the Commonwealth, 1901, and Third National.
Absorbed National Exchange, 1906.
Absorbed National Bank of the Republic, 1908. Absorbed Eliot National, 1912. Absorbed Citizens National, 1927.
Absorbed by National Bank of Redemption, 1901.
Merged with New England National to become Hamilton Trust Co., 1913.
1836-Shoe and Leather National 1890-South End National
Disposition.
. Name changed from Trader's National, 1893. Absorbed by Mercantile Trust Co., 1897.
Became Commonwealth Trust Co., 1904. Absorbed by National Shawmut, 1898.
Absorbed by International Trust Co., 1922.
Merged with First National, 1903.
Failed, 1891.
Became Mechanics Trust Co., 1905.
Name changed to Winthrop National, 1890.
Absorbed by Atlantic National, 1909.
Absorbed by Bunker Hill National, 1905.
Absorbed by Metropolitan Trust Co., 1922.
Absorbed by Merchants National, 1916.
1858-National Bank of Redemption. Absorbed by First National, 1904.
Absorbed by National Shawmut, 1898.
Existing Bank. Existing Bank.
Absorbed Suffolk National, 1903.
Merged with Commercial National as Commercial Security National, 1922.
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A HISTORY OF BANKING IN BOSTON
Incorporated. Name
Description.
18II-State National Absorbed by Merchants National, 1912.
1818-Suffolk National Absorbed by Second National, 1903.
1864-Third National
Absorbed by National Shawmut, 1901.
1831-Traders National Name changed to Hancock National, 1893.
1814-Tremont National Absorbed by Eliot National, 1898.
1792-National Union Merged with State Street Trust Co., 1925.
1825-Washington National
Absorbed by Suffolk National, 1902.
1853-Webster National . Merged with Atlas National, 1904, as Webster and Atlas National.
*1904-Webster and Atlas National .. Existing Bank.
1875-Winthrop National
Name changed from Merchandise National, 1890. Absorbed by Merchants National, 1915.
*Asterisk denotes twelve existing National banks. (Number reduced to eleven in 1927, since this record was compiled, when National Shawmut absorbed the Citizens National Bank.)
The twelve National banks existing in Boston at the beginning of 1927 had a total capital of $46,650,000, with total resources of $996,993,800, deposits of $769, 186,600, and surplus and profits amounting to $53,025,740. A statement of these banks is as follows :
BOSTON NATIONAL BANKS-January 1, 1927.
Bank.
Paid-in Capital. Total Resources.
Atlantic National Bank
$6,000,000
$138,648,700
Boston National Bank
400,000
5,119,980
+Citizens National Bank
750,000
9,901,890
Commercial Security National Bank.
500,000
7,171,920
Engineers National Bank
500,000
4,388,640
Federal National Bank
1,500,000
31,815,830.
First National Bank
20,000,000
411,676,050
Merchants National Bank
3,000,000
74,041,680
National Rockland Bank
1,000,000
25,547,220
*National Shawmut Bank
10,000,000
226,629,840
Second National Bank
2,000,000
46,594,010
Webster & Atlas National Bank.
1,000,000
15,458,040
$46,650,000
$996,993,800
BOSTON NATIONAL BANKS-January 1, 1927.
Bank.
Surplus and Profits. Total Deposits.
Atlantic National Bank
$4,568,890
$III,642,270
Boston National Bank
127,610
3,921,030
+Citizens National Bank
485,020
8,172,680
Commercial Security National Bank.
381,080
6,047,690
Engineers National Bank
76,110
3,550,180
Federal National Bank
509,710
27,834,700
First National Bank
24,307,190
308,665,990
Merchants National Bank
6,160,510
57,263,130
National Rockland Bank
2,622,720
21,811,500
National Shawmut Bank
8,099,350
171,693,050
Second National Bank.
4,438,490
36,558,380
Webster & Atlas National Bank.
1,249,060
12,026,000
$53,025,740
$769,186,600
+Absorbed by National Shawmut Bank, 1927, since this record was compiled. *Early in 1927 the National Shawmut Bank increased its capital to $15,000,000.
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METROPOLITAN BOSTON
A brief history of several representative Boston National Banks follow :
The First National Bank-Not only is the First National Bank of Boston the city's oldest financial institution and its largest, but it is the fifth largest national bank in the United States, and maintains a world- wide banking organization. Its history dates back to Revolutionary days, for it was the Massachusetts Bank, founded in 1784, which in 1903 merged with what was then known as the First National Bank, which, in turn, had been the Safety Fund Bank, organized in 1859, and the first of the State banks to receive a charter under the National Banking Law, on February 1, 1864. The merged bank continued under the name of the First National.
The Massachusetts Bank, the ancestor of the present First National, was a remarkable institution, being the second bank in the country, as has been previously shown. John Hancock was one of the five pe- titioners for its charter. James Bowdoin, second Governor of the Com- monwealth of Massachusetts, was its first president. It conducted its business in the old Manufactory House in Tremont Street until 1806. From that year until 1872, having become a national bank in the mean- time, it occupied quarters at 53 State Street.
In 1827 the Massachusetts Bank made its first report to the State, recognizing the authority of the Bank Commissioner to require a state- ment of its condition. That report, as shown in a history of the First National Bank of today, showed a capital of $800,000, a surplus of $61,000, and deposits of $350,000. On May 1, 1865, the Massachusetts became a national bank and continued to prosper. It observed its cen- tennial in 1884, but during the panic of 1893 it encountered a series of misfortunes, which continued until the opening of the twentieth century.
By 1900 the deposits in the bank had shrunk to less than $1,000,000, but it was in that year that the bank sought and obtained the services of John W. Weeks, the late Secretary of War in the cabinets of Presidents Warren G. Harding and Calvin Coolidge. Mr. Weeks, who had a recog- nized genius for organization and ability to inspire confidence, so strengthened the institution that within two years he had increased the deposits to more than $6,000,000. As an assistant, Mr. Weeks selected Daniel G. Wing, who succeeded him just before the merger with the First National Bank in 1903.
Mr. Wing continued as president of the bank after the merger, and it was under his leadership, in 1904, that the First National Bank ab- sorbed the National Bank of Redemption, which had previously merged with the Everett, Blackstone, and Shoe & Leather National banks. In
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A HISTORY OF BANKING IN BOSTON
1908, the growth of the bank had been so rapid, larger quarters became necessary, and a new bank building was erected at 70 Federal Street. In 1912 still further expansion made necessary a ten-story addition to this building.
By 1915 the deposits of the bank were close to the $100,000,000 mark. In 1917 the First National opened its pioneer foreign branch at Buenos Aires, Argentina, making the most of the opportunity presented by the expansion of the trade of the United States with South American coun- tries, when their trade with Europe was brought to a standstill. This branch has become the most important branch of any United States bank in South America, and owns and occupies the finest commercial building on the continent.
As a result of conditions created by the war, the First National Cor- poration was organized, with the entire $1,000,000 capital owned by the bank, to take over and develop the growing business in acceptances and Government bonds, to build up a discount market and to carry on sim- ilar operations. Branches of the corporation were opened in New York, Chicago, Detroit, Cleveland, Philadelphia and Baltimore. So vastly was the business of the corporation built up that a single day's turnover in Government bonds of from $25,000,000 to $50,000,000 became not un- common.
In 1923 the bank opened another foreign branch in Havana, Cuba, and representatives were also established in London, Paris and Berlin. In that same year the First National absorbed the International Trust Company, with its seven branches in Greater Boston. On January 12, 1926, Mr. Wing became chairman of the board of directors of the bank, and was succeeded as president by Clifton H. Dwinnell.
The vice-presidents are as follows : B. W. Trafford, C. F. Weed, Chan- ning H. Cox (Governor of Massachusetts from 1920 to 1924), Charles E. Spencer, Jr., P. E. Presbrey, Olaf Olsen, J. D. Brennan, W. F. Benkiser, George W. Hyde, Edwin R. Rooney, D. A. de Menocal, Charles F. Mills, W. O. LeFavre, R. G. Emerson, T. W. Murray, H. E. Bothfield and A. F. Hayden.
The tremendous growth of the First National Bank resulted in its building and occupying on Milk Street late in 1924 one of the finest bank buildings in the United States. The bank building at 70 Federal Street, which it built in 1908, and the adjoining office structure, built in 1912, were sold in May, 1925, to Lee, Higginson & Company, one of the leading firms of investment bankers in the country.
At the beginning of 1927, with a capital of $20,000,000, the First National had total resources of $411,676,050, surplus and profits, $24,- 307,190, and total deposits, $308,665,990.
364
METROPOLITAN BOSTON
*The National Shawmut Bank -. Second in size among Boston's banks, and one of the truly great financial institutions of the country, is the National Shawmut Bank, which led the way in 1898 in the sweeping con- solidation movement which was responsible for the reducing of the large number of banks and the building up of a small number of powerful bank- ing institutions.
On May 6, 1836, in the famous Exchange Coffee House of Boston, what was later to become known as the Shawmut Bank was organized as the Warren Bank. In April of the following year the change in name was made, the directors believing that a name of broader significance and more pronounced individuality would have a greater potential value. Hence, the selection of "Shawmut," which was the Indian name of the place which became Boston.
In a brochure concerning itself, the bank calls attention that the period in which it was established, the decade from 1830 to 1840, "wit- nessed the beginning of Boston's trade with India; the building of the Boston and Providence, the Boston and Lowell, the Boston and Wor- cester, and the Eastern railroads; the beginning of the Boston and Al- bany Railroad; the establishment of the Cunard, the first transatlantic line, between Liverpool and Boston, and extraordinary expansion of the cotton manufacturing industry."
On April 7, 1864, the Shawmut was incorporated as a national bank, with a capital of $750,000, which was later increased to $1,000,000. Its original capital, at the time of its organization as the Warren Bank, was $500,000. For thirty-four years the bank continued to prosper, its cap- ital remaining at $1,000,000.
In October of 1898 the Shawmut National "became the nucleus of a momentous consolidation designed to decrease materially the number of Boston banks, and to found an especially strong and efficient financial organization to meet the advancing requirements of New England business." In this consolidation movement the National Shawmut took over a total of nine national banks-the Columbian, the National Eagle, the North, the Hamilton, the Market, the Bank of North America, the Howard, the Boston, and the Revere. The capital of the bank was in- creased to $3,000,000, and the name was changed from the Shawmut National to the National Shawmut Bank.
In November, 1901, the National Bank of the Commonwealth was added, and in the following December the Third National Bank. On April 6, 1908, the National Shawmut continued its expansion by taking over the Republic National Bank, and on October 24, 1912, the Eliot
*The National Shawmut Bank absorbed its fourteenth financial institution, the Cit- izens National Bank, in 1927, after this history had been compiled.
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1247266
A HISTORY OF BANKING IN BOSTON
National Bank was added, making a total of thirteen national banks of Boston which had terminated their corporate existences and had their business and resources taken over by the National Shawmut.
Several of these banks were among the oldest institutions in the city, the date of incorporation in each instance being as follows : Columbian, 1822; Eagle, 1822; North, 1825; Hamilton, 1832; Market, 1832; North America, 1850; Howard, 1853; Boston, 1853; Revere, 1859; Common- wealth, 1871 ; Third, 1864; Republic, 1860, and Eliot, 1853.
The capital of the bank was increased in the course of these consoli- dations, and at the beginning of 1927 was $10,000,000. Early in 1927, however, it was voted to increase the capital to $15,000,000, one of the reasons for the increase being that the Shawmut Corporation, which is owned entirely by the bank and does a large business in general securi- ties, bankers' acceptances and Government bonds, needed additional capital.
Originally the bank was located in small quarters on State Street, at the corner of Merchants Row. From 1836 to 1870 it remained on State Street, successively at 72, 39, 41, and 20, then moving to 60 Congress Street, at the corner of Water Street. It was burned out in this location in the great fire of 1872, and went back to State Street, No. 43, during the rebuilding period. Its growth and consolidations necessitated larger quarters, and its present Water Street building was completed and occu- pied in 1907. The building was extensively remodelled and a large addi- tion erected, which was occupied in 1923.
Walter S. Bucklin is president of the National Shawmut Bank, and the vice-presidents are Frank A. Newell, Louis J. Hunter, John Bolinger, Edward A. Davis, Frederick A. Carroll, Norman I. Adams, Frank C. Nichols, George E. Pierce, Christopher L. Billman, Frederick E. Jackson, Ernest H. Moore, Leon H. White, R. Edwards Chambers and James E. Ryder. Mr. Ryder is also the cashier of the bank.
At the beginning of 1927, with the capital at $10,000,000, before it had been increased to $15,000,000, the total resources amounted to $226,629,- 840, the surplus and profits, $8,099,350, and the deposits, $171,693,050.
The Atlantic National Bank-The oldest National bank in Boston in point of having retained its original name and operated under its orig- inal charter, is the Atlantic National Bank, which is also third in size, being outranked in this respect only by the First National and National Shawmut banks.
The Atlantic started as a State bank in 1828, with a paid-in capital of $500,000. It became a National bank on February 1, 1865, and its capital was increased to $750,000 in 1870. In 1912 the Fourth National Bank, which was organized in 1875 and had absorbed the National Ham-
366
METROPOLITAN BOSTON
ilton Bank in 1902, was merged with the Atlantic National to form the Fourth-Atlantic National Bank. The deposits of the combined institu- tions amounted to about $13,000,000.
Herbert K. Hallett, who had been the bank's president since 1904, became president of the new institution. By 1921 the deposits had in- creased to about $25,000,000, and the bank's capital, which by the merger amounted to $1,500,000, had been increased to $2,000,000 by a stock divi- dend in 1920.
In 1922 the People's National Bank of Roxbury, which was originally organized in 1833, was acquired by the Fourth-Atlantic National, which brought the deposits to $36,000,000. In 1923 a consolidation was effected between the Fourth-Atlantic National and the Commonwealth Trust Company to form the Commonwealth-Atlantic National Bank, with a capital of $4,500,000. Mr. Hallett became chairman of the board of di- rectors, and was succeeded as president by George S. Mumford, who had been president of the Commonwealth Trust Company.
Two weeks after this consolidation was put through, the bank ac- quired the Boylston National Bank, and the deposits at the end of the year 1923 were in excess of $80,000,000. The Boylston National had been organized in 1845, became a National Bank on December. I, 1864, and is the bank which sustained the notorious robbery of 1869, previously referred to. On January 30, 1926, the Massachusetts Trust Company was acquired, but the name of the bank had been shortened in 1924 to the Atlantic National Bank, by which it is known today, and the capital had been increased in 1925 from $5,000,000 to $6,000,000.
The old Atlantic Bank, because of its location in the market district of the city and State Street, early became identified with the market business, and as the old Fourth National was similarly located, the insti- tution today has more of the market business, it states, than any other bank in the city. Boston is divided into distinct trade districts, and by its various consolidations the bank has acquired an exceptionally well-bal- anced business.
At the present writing Mr. Mumford continues as president, with Mr. Hallett as chairman of the board of directors, and Edgar R. Cham- plin as vice-chairman. The vice-presidents are Arthur P. Stone, Arthur W. Haines, Waldron H. Rand, Jr., Charles W. Bailey, Stephen W. Holmes, Russell B. Spear, Charles W. Varey, Arthur R. Smith, Charles E. Valentine, George H. Corey, Almon W. Blake, Elmer A. Stevens and Arnold Whittaker.
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