USA > New Jersey > Essex County > Newark > A History of the city of Newark, New Jersey : embracing practically two and a half centuries, 1666-1913, Volume II > Part 33
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On December 13, 1855, a committee was appointed to consider the subject of erecting a new banking house, and they procured plans which were adopted. On June 2, 1856, a store on Broad street, near Commerce,
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was hired of Aaron Peck, for use while the new building was being erected, and the cashier, who had lived over the bank, was authorized to rent a house for his residence. The new building was to have a frontage of thirty- eight feet on Broad street at the northwest corner of Bank street and twenty-two feet to the north of that lot was sold for $477 a front foot. The new building was opened for business on September 28, 1858, and was the handsomest building in the city at that time. Its cost was about $60,000.
In October, 1857, the bank was again forced to suspend specie pay- ments, but this time or only eighteen days. As usual, this action was forced by similar action on the part of the banks of New York and elsewhere throughout the United States.
After serving the bank for fifteen years as its cashier, Mr. Jacob D. Vermilye was asked to take the appointment of cashier of the Newark Bank- ing Company's New York correspondent, the Merchants' Bank, which posi- tion he accepted on February 15, 1858, remaining a director of the Newark Banking Company till his death, January 4, 1892. He was succeeded in the position of cashier by Charles G. Rockwood, then cashier of a bank at Norwalk, Connecticut.
The election of Lincoln as President of the United States and the fear of secession brought on a panic which broke out in November, 1860. This caused the issue by the government of treasury notes, and the banks of the country responded liberally, as, indeed, they did all through the war. The Newark Banking Company purchased $25,000 of these notes in Janu- ary, 1861, and in February and March it purchased $130,000 more. This was all before the first gun of the war was fired on Fort Sumter, April 12, 1861. Throughout the war the bank continued to invest heavily in the bonds of both the State and the Nation. And, in addition to helping the government by the purchase of its bonds, the bank, during the war period, paid over $400,000 in war taxes.
Silas Condit, the last survivor of the first board of directors, and for many years (1820-1842) president of the bank, died on November 27, 1861, and the board passed suitable resolutions.
The National Bank Act became a law on June 3, 1864. After considera- tion it was decided that it was expedient that the Newark Banking Com- pany should become a National Bank, and on May 4, 1865, the officers were directed to take the necessary preliminary steps, and on June 24, 1865, the bank became the National Newark Banking Company. The capital was fixed at $500,000. Prior to the conversion it had been an odd amount, $508,650, in 10,173 shares, and these odd 173 shares were bought in and retired.
The old State Bank circulation was taxed out of existence, and as it was presented for redemption it was destroyed. A large amount of the circulation was never presented for redemption, and at various times an amount aggregating $45,489 was credited to profit and loss account because of this.
Specie payments had been suspended in 1862 and were not resumed till January 1, 1879. This condition was universal throughout the country and resulted in widespread speculation in gold. The bank's records show that it constantly bought and sold gold in the market. The sales were made as .
high as 219 34, which price was obtained January 30, 1865.
The banks of the city had been making half-weekly settlements with each other for many years, and when the First National Bank failed, June 17, 1880, an effort was made to introduce daily settlements, but this could
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not be effected till after the failure of the Mechanics' National Bank, on June 16, 1881. In both of these failures the National Newark Banking Company lost large amounts owing to the method of settlements.
After a service of forty-one years as a director, Mr. Beach Vanderpool died in 1884, and on March 20 the board of directors adopted a resolution expressing their regret at losing such a valuable member.
Another death about this time took from the service of the bank its president, Mr. James B. Pinneo, who died on January 9, 1887. He was succeeded by Mr. Charles G. Rockwood, the cashier, on January 13, and Philip W. Crater was appointed cashier.
The death of Mr. Vermilye in 1892 left the bank without a vice- president, and the panic of 1893 was a very great strain on the two active officers, both of whom were feeling the weight of years. This strain undoubtedly hastened the death of the cashier, Mr. Crater, who died. in November, 1893. In December, 1893, Mr. Edward S. Campbell was offered the vice-presidency, and on January 2, 1894, he accepted and was elected a director and vice-president. Mr. Campbell was at this time cashier of the National Bank of New Jersey in New Brunswick, where he had made an enviable record. At the same meeting Mr. Henry W. Tunis, an old and faithful employee of the bank, was appointed cashier.
The Newark City National Bank had for many years been doing business along much the same lines as the National Newark Banking Company, and in 1902 both banks felt the urgent need of an increased capital to enable them to take care of the growing demands of their depositors. After mutual con- sultation it was decided that this increase of capital could best be obtained by a consolidation of the two banks, another result being a general strength- ening of the position of the consolidated bank. On January 9, 1902, the directors decided to submit the proposition to the stockholders. The meet- ing of the stockholders was held May 10, 1902, when the proposition was agreed to. The capital of the bank was increased to $1,000,000; $400,000 of the increase was used to purchase the stock of the Newark City National Bank; $100,000 was sold to the old stockholders, to whom was paid a cash dividend of $100,000. At this meeting the twelve directors of the Newark City National Bank were elected directors of the National Newark Banking Company.
The first meeting of the new board was held on May 12, 1902, at which time the president, Mr. C. G. Rockwood, presented his resignation as presi- dent, feeling that his age prevented his giving the position the attention it should receive. This resignation was accepted, and the following officers were elected: Mr. Edward S. Campbell, who had been vice-president, was elected president; Mr. David H. Merritt, who had been vice-president and cashier of the Newark City National Bank, was elected first vice-president; Mr. Albert H. Baldwin, who had been assistant cashier of the Newark City National Bank, was elected second vice-president and assistant cashier; and Mr. Henry W. Tunis was continued as cashier.
In June, 1902, it was decided to alter the banking house of the old Newark City National Bank, and on October 1 of that year the business was moved to that building, and the old building of the bank, on the site where it had done business for almost one hundred years, was sold to the Prudential Insurance Company.
On July 13, 1903, Mr. Eugene Vanderpool, who had been a director for twenty-seven years, died suddenly. He had always been very active in the direction of the bank, was one of the leading men of Newark, and his death was a great loss not only to the bank but to the whole community.
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On Sunday morning, July 17, 1904, the sixth president of the bank, Mr. Charles G. Rockwood, died, at Caldwell, New Jersey, on the eve of his ninetieth birthday. Mr. Rockwood had just completed a history of the bank, which was published in 1904, on the occasion of the one hundredth anniversary of the founding of the bank.
On July 2, 1905, while on his vacation, the president of the bank, Mr. Edward Stelle Campbell, died suddenly at Lake George. Since becoming connected with the bank, Mr. Campbell had been one of the leaders in the public life of Newark, having been president of the Board of Trade, president of the New Jersey Bankers' Association, and a leader in almost every move- ment for the betterment of the city. The changes resulting from his death caused the election on September 18, 1905, of Mr. David Henry Merritt as president, and Albert H. Baldwin as vice-president.
On the completion of the beautiful building of the Mutual Benefit Life Insurance Company, on the southeast corner of Broad and Clinton streets, the National Newark Banking Company moved their quarters to the offices in that building, which they now occupy. This move was made May 11, 1908, and the old building of the Newark City National Bank was sold.
Later in this same year, on September 15, Mr. James R. Sayre died, after having served for over forty-nine years as a director of the bank. He was originally elected a director on May 3, 1859, and had served continuously since that date.
Mr. Henry W. Tunis, the cashier of the bank for seventeen years, died suddenly on February 15, 1911. His death was a great loss, as he was a man with a most genial disposition and one who was beloved by all with whom he came in contact. The assistant cashier, Mr. Walter M. Van Deusen, was elected cashier on February 23, 1911, and on March 6, 1911, Mr. C. G. Hemingway was appointed assistant cashier.
For some time the bank had felt the need of a safe deposit vault to furnish its customers with facilities for the safe-keeping of their securities, and in 1911 the contract was given to the Bethlehem Steel Company for an armor plate safe deposit vault of the most approved and modern construc- tion. The vault was opened to the public June 28, 1913, and is without doubt the finest vault in the State.
The long and honorable history of this, the oldest bank in New Jersey, has been a credit to the city, and to those who have guided its destinies. Its history runs through times of prosperity and times of business depression, through war and peace, through panics and through business expansion; and, throughout, the bank has always been safely guided, it has contributed to the development of Newark from a village to a great industrial centre, and it has never failed in its duty to its depositors or its home city.
The records of the bank are stained by no record of defalcation and it has many notable instances of long and faithful service. Silas Condit, the third president, was a director for thirty-eight years. John Taylor, the fourth president, was connected with the bank for forty-one years. Charles G. Rockwood, the sixth president, was cashier and president for forty-four years, and had been a director for forty-six years at the time of his death. Philip W. Crater, the sixth cashier, had been connected with the bank for .. thirty-eight years. Beach Vanderpool was a director for forty years. James R. Sayre, Jr., was a director for forty-nine years, four months. Daniel Dodd was notary of the bank for forty-five years. J. D). Vermilye, the fourth cashier, served the bank in one capacity or another for more than forty-eight years. David H. Merritt, the present president, entered the Newark City
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National Bank April 4, 1870. Henry W. Tunis was connected with the bank for thirty-nine years. F. Wolcott Jackson was a director of the Newark City National Bank and later of the National Newark Banking Company for a total of forty-six years. Among the present clerks there are several Instances of long service. Oscar W. Dunham entered the Newark City Bank March 2, 1863, and Fred H. Carl has served for forty-five years.
NEWARK CITY NATIONAL BANK.
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Before its consolidation with the National Newark Banking Company the Newark City National Bank had a long and honorable career.
Shortly after the passage of the general banking law by the Legislature on February 27, 1850, a number of Newark's prominent citizens met and organized the City Bank. The election of directors was held with Charles E. Young, John Whitehead and Silas H. Kitchel as inspectors of election, and the first board was constituted as follows: James M. Quinby, David Condit, John Chadwick, David Campbell, John Young, Samuel H. Penning- ton, James N. Joralemon, Aaron Carter, Jr., Martin R. Dennis, David Congar, John M. Davies, Horatio N. Peters. They met on August 19, 1851, at the "House of Orrin Dickerson," wich James M. Quinby acting as chairman, and John M. Davies, secretary. Dr. Samuel H. Pennington was elected president; Mr. Charles S. Graham, of New York City, cashier, and Mr. Cortland Parker, attorney. It was decided that the payments of the capital stock should be made at the store of A. L. Dennis & Brother, and the store of Jonathan Nesbit, on Broad street, was rented for the banking house, the rent to be $300 per year. In this store the bank opened for business on December 1, 1851.
The bank was a success from the start; so much so that a dividend of 3 1/2% was declared on July 1, 1852, payable on the first Monday in August, and on August 17, 1852, it was found necessary to increase the capital to $200,000 to take care of the increasing business; it was, however, found difficult to raise the additional capital at that time, and on September 23 It was fixed at $150,000. Permanent quarters were secured when, on October 14, 1852, the directors decided to purchase the property of D. McMurtry, at the southeast corner of Broad and Clinton streets, the con- sideration being $10,000, of which $3,000 was to be paid in cash, and the remaining $7,000 to be a three-year mortgage. The next year, business conditions had improved so much that the directors decided to again attempt to increase the capital to $200,000. This action was taken March 7, 1853, and on June 6 it was reported to them that the increase had been over- subscribed to the extent of $82,000. The capital was again increased by $50,000 in June of 1854. At the election held January 11, 1855, Mr. Peter Ballantine was elected a director.
The general banking act under which the bank was chartered was not generally used, most of the new banks getting special charters, and, on March 29, 1855, the City Bank secured a special charter which was formally accepted by the stockholders at a meeting held April 25, 1855.
On October 1, 1855, Mr. Albert Baldwin began his duties as a clerk in the bank, and thus started a connection with the bank which was to termi- nate only with his death, during which service he was largely instrumental' in making the City Bank one of the most powerful. and respected institutions in Newark.
Beginning on July 6, 1857, the officers commenced a series of confer- ences with the other banks of Newark in regard to fixing a uniform rate
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of interest on discounts, but it was found impossible to arrive at an under- standing. The rate was fixed for the City Bank at 7 per cent.
At the annual election held on August 12, 1858, the cashier, Mr. Graham, who held the proxies, elected a number of his friends in the places of some of the regular directors. They, however, would not consent to serve, and resigned, the displaced directors being replaced on the board. A week later Mr. Graham resigned as cashier, and on September 15, Mr. Albert Baldwin was elected cashier in his place. On October 4, 1858, Mr. William Henry Curtis resigned as a clerk in the bank; he was afterward cashier of the Essex County National Bank.
The bank prospered greatly, so much so that on November 7, 1859, it was resolved to increase the capital to $300,000, and again on August 2. 1860, it was resolved to increase it to $350,000.
From the beginning of the Civil War, the City Bank did all it could to aid the government. On August 26, 1862, $1,750 was appropriated toward a fund to encourage volunteers in the army and to avoid the necessity for a draft. At the close of the war in 1865, the bank held over $366,000 in securities of the government.
In spite of the war, the board was optimistic enough as to the outcome to take action toward the erection of a new building for the bank. On February 5, 1863, a committee was appointed to have charge of it, and this committee acted promptly, reporting, on February 19, plans for a building to cost $20,000. The committee pushed matters so that on June 1 they were able to report that contracts had been given out, and that they had rented as a temporary banking house the building in Market street, formerly occupied by the New Jersey Mutual Benefit Life Insurance Company. The new building was occupied on December 1, 1864.
On March 2, 1863, Mr. Oscar W. Dunham entered the service of the bank, and has remained a faithful and devoted employee ever since. Mr. Edwin M. Douglass, afterwards connected with the German National Bank, entered the service of the bank May 6, 1863.
The National Banking Act having been passed, the directors on April 3, 1865, took action looking to the conversion of the bank to the National system. The certificate of the Comptroller of the Currency authorizing the Newark City National Bank to do business was dated June 5, 1865, and on June 22 the bank opened under the new title.
Mr. A. W. Conklin entered the service of the bank October 4, 1869, and after more then twenty years resigned in 1891 to become cashier of the German National Bank. On April 4, 1870, Mr. David H. Merritt, of New Brunswick, was appointed paying teller, and has been with the bank ever since, having been promoted through the various offices to the position of president, which he now holds.
In 1870 the capital was raised to $500,000, which was the maximum it ever reached.
The difficulties through which the financial world was passing are shown by a resolution of the board passed in February, 1877, reducing all the salaries in the bank 10%.
At about this period several of the present directors and officers became connected with the bank. Mr. Samuel S. Dennis was elected a director on January 11, 1883, and has served ever since. On November 1, 1886, Mr. Albert H. Baldwin, the present vice-president of the National Newark Bank- ing Company, entered the bank as a clerk, and on July 7, 1890, Mr. C. G. Hemingway, the present assistant cashier, entered the service of the bank.
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Several of the old directors died about this time, after long years of service. Mr. Ira M. Harrison, elected in September, 1852, died January 6, 1891, and Mr. David Campbell, one of the original directors, died on December 31, 1891. Another old director, Mr. H. J. Poinier, elected Febru- ary 19, 1855, died on April 24, 1894.
On account of the advancing years of the president, Mr. Albert Baldwin was given the duties of vice-president, in addition to those of cashier, on December 24, 1894, and on January 10, 1895, Mr. David H. Merritt was appointed assistant cashier. On account of the illness of Mr. Baldwin, lie was relieved of the duties of cashier on January 14, 1897, Mr. Merritt being . appointed to that office, and, as Mr. Baldwin's illness continued, Mr. E. L. Dobbins was, on October 14, 1897, elected an additional vice-president. Mr. Baldwin did not live long after this, passing away on October 24, 1897. Much of the success of the bank was due to his hard work and able service during the many years he was connected with it. His son, Mr. Albert H. Baldwin, was appointed assistant cashier on October 29, 1897.
On March 15, 1900, Dr. Samuel Hayes Pennington died. He was born in 1806, graduated from Princeton in 1825, and was one of Newark's most prominent and respected citizens. He was one of the organizers of the City Bank, and its first president, serving in that office from August 19, 1851, continuously till the day of his death.
On April 2, 1900, Mr. E. L. Dobbins was elected president, and Mr. David H. Merritt vice-president and cashier, which offices they held till the consolidation with the National Newark Banking Company on May 10, 1902.
WEST SIDE TRUST COMPANY.
The first banking institution organized in Newark away from the center of the city was the North Ward National Bank, in 1873. The West Side Trust Company, located at Springfield avenue and High street, was the second. This section of the city, near the County Court House, was for many years a thriving center of business, and the opening of a bank in their midst was welcomed by the merchants who gave the new company their cordial support from the start.
The charter for the new Trust Company was secured on April 15, 1902, and it opened for business on June 2, 1902, with Mr. Joseph Goetz as president; Dr. Richard G. P. Dieffenbach as vice-president; Mr. Frederick W. Paul as vice president; Mr. Ferdinand R. Moeller as secretary and treasurer. The original directors were: Joseph Goetz, John C. Eisele, Emanual Heyman, Richard G. P. Dieffenbach, Meyer Kussy, August Goertz, Philip Lowy, Joseph O. Amberg, Joseph Fisch, William O. Kuebler, Philip Koehler, Julius E. Seitz, Charles F. Herr, Frank Schwarzwalder, Jacob A. Geiger, Joseph Samuel, George W. Jagle, Simon Heyman, Frederick W. Paul, Christian Schmidt.
Mr. Meyer Kussy was elected an additional vice-president on February 7, 1905, and on September 5, 1905, Mr. Frederick W. Paul succeeded Mr. Goetz as president, Mr. August Godrtz being elected a vice-president. On October 18, 1905, Mr. Moeller resigned as secretary and treasurer to go in business for himself, and Mr. Charles T. Champion was elected in his place. On February 2, 1909, Mr. Paul, finding he could not give sufficient time to the duties of the presidency, resigned, and was succeeded by Mr. Meyer Kussy, Mr. Paul being elected vice-president.
On March 19, 1909, Mr. Champion resigned as secretary and treasurer to go with the Federal Trust Company, and Mr. Harry F. Hays, Jr., was
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elected in his place, and Mr. Frederick W. Parisette was elected assistant secretary and treasurer. On February 7, 1911, Mr. Hays left to become vice-president of the National State Bank, and he was followed by the present secretary and treasurer, Mr. George W. Lent.
At the present time the company is occupying temporary quarters while a new building more commensurate with their standing is being erected.
FEDERAL TRUST COMPANY.
For many years there had only been one Trust Company in the center of the city, and it was felt that there was room for another strong organiza- tion of this kind. This feeling resulted in the organization of the Federal Trust Company, in 1901, the charter being dated July 19, and the doors were opened for business on October 1 of that year, with a capital of $1,000,000.
Among the prominent men who joined in organizing this Company may be mentioned: Andrew Kirkpatrick, W. Campbell Clark, Benjamin Atha, John R. Hardin, Louis Plaut, Joseph M. Byrne, John F. Kehoe, Frederick H. Lum, Frederick F. Guild.
The first officers of the Company were: Andrew Kirkpatrick, president; Benjamin Atha, vice-president; Joseph M. Byrne, vice-president; Charles H. Ely, secretary and treasurer; John W. Crooks, assistant secretary and treasurer; Charles C. Dickson, trust officer.
The offices were located on Broad street, between Bank and Academy streets, and have remained there ever since. The strong men back of the organization inspired confidence and it at once became one of the leading financial institutions of the city, and has always been in the front rank of the banks.
The first president, Mr. Andrew Kirkpatrick, died May 2, 1904, not long after the organization, and was succeeded in June, 1904, by Mr. James Smith, Jr., the present president. Mr. Benjamin Atha resigned the office of vice-president some years after the organization.
The first secretary and treasurer, Mr. Ely, remained with the company till April 1, 1905, when he left to go with an out-of-town institution. After his resignation it was felt that the growth of the company required a larger official staff to properly take care of its business, and the two positions of secretary and treasurer were separated, Mr. Frank L. Luff being appointed treasurer, and Mr. John W. Crooks being appointed secretary. On Mr. Luff's resignation in 1907, Mr. Crooks was promoted to the office of treasurer, and Mr. E. F. Maguire, who had been with the organization from the start, was appointed secretary, which position he held until November, 1908, when he was made treasurer in place of Mr. Crooks, who resigned. Mr. Charles T. Champion, who had been with the West Side Trust Company, was appointed as secretary in April, 1909, and both he and Mr. Maguire still hold those positions, and, in addition, Mr. James M. Cavanagh was appointed assistant secretary in January, 1912.
The directors of the Federal Trust Company have always been selected from among the leading business men of Newark, the board at present being: Joseph M. Byrne, Winton C. Garrison, Arthur C. Hensler, C. R. Hoag, Peter Hauck, Jr., Hamilton F. Kean, William H. Kellner, Eugene Merz, Gottfried Krueger, Austen H. McGregor, Louis Plaut, James Smith, Jr., J. E. Bathgate, Jr., Oscar H. Wheeler, T. J. Mahoney.
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