Bi-centennial history of Albany. History of the county of Albany, N. Y., from 1609 to 1886. With portraits, biographies and illustrations, Part 120

Author: Howell, George Rogers, 1833-1899; Tenney, Jonathan, 1817-1888
Publication date: 1886
Publisher: New York, W. W. Munsell & Co.
Number of Pages: 1452

USA > New York > Albany County > Albany > Bi-centennial history of Albany. History of the county of Albany, N. Y., from 1609 to 1886. With portraits, biographies and illustrations > Part 120

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528

HISTORY OF THE COUNTY OF ALBANY.

ments of the enterprise. At a subsequent meeting the outlines of a plan for the establishment of a bank were presented. It was decided that the name of the institution should be the Albany Bank; the capital $75,000, to be divided into 500 shares of 150 each, $15 to be paid on subscribing, and the remainder in three instalments; thirteen Direc- tors to constitute the Board of Directors, nine of whom should be residents of Albany. Jeremiah Van Rensselaer, Jacob Van Derheyden, and Bar- ret Bleecker were to open the books for subscrip- tions in the week following, and to close them as soon as 500 shares should be subscribed. February 17th the books were opened, and the stock was over- run in amount in less than three hours. After the books were closed, offers of 10 per cent. advance were made on the stock; and, on the Saturday follow- ing, it rose to 100 per cent. cash. Application was immediately made to the Legislature for a charter, and here the project received considerable opposi- tion from the law-makers of that day. As the prospects of a charter being secured became more or less doubtful, the price of the stock rose or fell, creating no little excitement and speculation in this region, where stock transactions were quite a novelty. At one time it is said to have stood at $100 premium on a share upon which only $15 had been paid.

Towards the close of the session, by the most strenuous efforts of the friends of the enterprise, the act of incorporation became a law. The first elec- tion of Directors was held June 12th, at the City Tavern, and resulted as follows : Abraham Ten Broeck, Cornelins Glen, Stephen Van Rensselaer, Jeremiah Van Rensselaer, John Maley, Abraham Van Vechten, Henry Cuyler, John Stephenson, James Caldwell, Jacob Van Derheyden, Golds- boro Banyar, Daniel Hale, and Elkanah Watson. The last-named was, as in all public matters, the first in the project and the most active lobbyist.

At a meeting of the Directors, Abraham Ten Broeck was elected President. The bank was opened for deposits on the 16th of July, and began to discount on the 17th. The rate of interest was six per cent. In September, notice was given that notes of 45 days only would be discounted. The act of incorporation limited the capital stock to $260,000, each share to be 400 Spanish milled dollars, or its equivalent.

In February, 1794, in accordance with the pro- visions of the charter, the capital of the bank was increased $540,coo, in 135 shares of $400 each. By subsequent enactments of the Legislature, and by subscriptions on the part of the State, the capital of the bank was increased to $320,000, and it con- tinued at that amount until 1820, when the sum of $100 on each share was returned to the stock- holders, thus reducing the capital of the bank one- fourth. In 1832, the charter of the bank was ex- tended to January, 1855, when, for the purpose of more widely diffusing the stock, the par value of the stock was reduced to the sum of thirty dollars, and the number of shares proportionately increased.

The Albank Bank was first located in an old- fashioned Dutch edifice in North Pearl street,

third north of State street. In February, 1794, the bank erected a building on the lot now north of the Merchants' Bank, and remained there until 1810. In 1810 the bank was removed to a new building, erected by the bank on the corner of State and Broadway, which was occupied until 1832, when it was torn down for the purpose of widening State street. In 1832 the bank was re- moved to No. 42 State street, where it was located until the present Merchants' National Bank build- ing was erected. Here the bank remained until its failure in 1861.

The Presidents of this bank from 1792 to 1861 were : Abraham Ten Broeck, 1792-98; Jeremiah Van Rensselaer, 1798-1806; Philip S. Van Rensse- laer, 1806-10; Dudley Walsh, 1810-14; John Van Schaick, 1814-20; Barent Bleecker, 1820- 40; Jacob H. Ten Eyck, 1840-61. During this period of seventy years there were only four cashiers, namely : Garrit W. Van Schwaick, 1792- 1815; John Van Zandt, 1815-32; Jellis Winne, Jr., 1832-49; E. E. Kendrick, 1849-61.

James Van Ingen and Harmanus P. Schuyler were the first clerks. Elkanah Watson was one of the most efficient advocates of the establishment of this bank, and to his tact, experience, and busi- ness habits, it in no small way was indebted for its early success. The affairs of the bank were long managed with prudence and ability, and at one time in proportion to its capital, it possessed more specie than any other bank in the country. For years among Albanians when anything was called "as good as the Bank of Albany," it was consid- ered good enough.

The failure of this bank, May 11, 1861, was a genuine surprise to the people. Just before the failure $100 shares were sold for $150, and the utmost confidence prevailed in the institution. Even the President of the Bank, Jacob H. Ten Eyck, was ignorant of the coming disaster, he alone losing $100,000. It would be hard to attribute its failure to any particular cause. It was a combina- tion of difficulties under which four Albany banks failed this year. A general stagnation of business and the unsettled state of the country caused by the war, made the year 1861 a memorable one in the financial affairs of Albany. Abraham Van Allen was appointed receiver of the bank. At the time of the failure the capital of this bank was $540, 000.

New York State Bank .- This bank owed its origin almost wholly to the exertions of Elkanah Watson. It was incorporated and went into opera- tion with a capital of $460,000 in 1803. Its orig- inal Directors consisted of the State Comptroller, Elisha Jenkins, John Tayler, Thomas Tillotson, Abraham G. Lansing, Peter Gansevoort, Elkanah Watson, John R. Bleecker, Francis Bloodgood, John Robison, Gilbert Stewart, John De Peyster Douw, Richard Lush and Thomas Mather.

At a meeting of the Directors on March 25, 1803, John Tayler was chosen President, and John W. Yates, Cashier. It commenced business Wednes- day, September 7th.

In 1804, the lot where the present bank stands was purchased of Isaiah Townsend, and the erection

BANKS AND BANKERS.

529

of the new banking building commenced. This was completed and first occupied May 10, 1804. This building is still standing, presenting in front almost the appearance of its primitive days. Philip Hooker was the architect.

The opposition to the establishment of this bank was very bitter, and when the bill for its incorpora- tion was before the Legislature, the opponents of the project made strenuous efforts to defeat it. It was openly charged at the time that money was used by both friends and opponents to corrupt members of the Legislature. The capitalists inter- ested in the Bank of Albany were especially opposed to the new bank; nor did their opposition cease after it was incorporated and commenced business; the Directors of the Bank of Albany even carrying their spite so far as to refuse to supply the new bank with paper on which to print their first notes.

By the act of incorporation, the State had the right to subscribe 3,000 shares in this bank. It was further provided that the Comptroller should be one of the Directors.

John Tayler continued President until his death in 1829. He was succeeded by Francis Bloodgood, who died in 1840, the last survivor of the original Board of Directors. Rufus H. King was elected President in 1840, and remained as such until his death in 1867. He was succeeded by General Franklin Townsend. J. Howard King was elected President in 1874 and still retains this position. Mr. Yates died in 1828, and was succeeded as Cashier by his son, Richard Yates, whose successor was Aaron D. Patchin. J. B. Plumb succeeded Mr. Patchin, who was succeeded by John H. Van Antwerp. The present Cashier is D. W. Wemple.

In 1850 the charter of the bank expired, when it closed up its business, paying back to its stock- holders their capital with a handsome surplus. Under the same name, with new articles of associa- tion, and under the general banking laws of the State, it commenced business on January 1, 1851. Nearly all the old stockholders subscribed for equal amounts in the new association. In 1849 the capital of this bank was reduced to $369, 000. The new bank began with a capital of $350,000, and at present is in a flourishing condition.

The Mechanics' and Farmers' Bank, the third bank established in Albany, was incorporated March 4, 1811, and opened for business July 29, 1811. By the act of incorporation, the following were named as Directors: Samuel Southwick, Benjamin Knower, Elisha Dorr, Isaac Denniston, Benjamin Van Benthuysen, William Fowler, George Mer- chant, Thomas Livingston, Giles W. Porter, Will- ard Walker, Walter Weed, Peter Boyd, Isaac Hut- ton, Spencer Stafford and John Bryan. This bank was chartered ostensibly for the benefit of the me- chanics and farmers of Albany County, and its char- ter provided that none but farmers and mechanics should be elected as bank officers; but some years after, application was made to the Legislature for an amendment to the charter, so as to authorize the election of President and Directors without ref- erence to the pursuits or employments in which they may have been engaged. The banking-house

was first located in what was then known as No. 6 Court street (now Broadway), on the site of the present Post-office building. The building now occupied by this bank, on the northeast corner of State and James streets, was erected a few years ago.

A peculiar feature connected with the early his- tory of this bank, and by the stockholders looked upon with suspicion, was the fact that all the origi- nal directors were Democrats in their political sym- pathies. The first election of Directors occurred June 1, 1812. It was generally understood among the stockholders, for some time preceding this elec- tion, that two Federalists would be chosen; but whose seats should be vacated for their admission was not so easily agreed upon. The election opened at 10 o'clock at Columbia Hotel in Court street, and was contined to a late hour in the after- noon. It was a warm and animated contest, and finally resulted in the election of the original Di- rectors with the exception of Spencer Stafford and John Bryan, who were superseded by Peter Boyd and Isaac Hutton, Federalists.

The first President was Solomon Southwick, who filled the office until 1813, when he was succeeded by Isaac Hutton. Isaac Hutton was succeeded by Benjamin Knower in 1817, who remained Pres- ident until 1834, when financial embarrassments having caused his resignation, he was succeed- ed by Charles E. Dudley as President pro tem., February 3, 1834. At the election in June of this year, Ezra Ames was elected President and Charles E. Dudley, Vice-President. This seems to have been the first Vice-President ever elected by this bank. Ezra Ames filled the office of President until 1836, when Thomas W. Olcott having re- signed the office of Cashier, was elected Presi- dent, which office he held until his death in 1880. As a Clerk, Cashier and President Mr. Thomas W. Olcott had been connected with the bank for the long period of sixty-nine years, be- sides two or three years passed in the Columbia Bank of Hudson, N. Y., a period of time almost beyond parallel in this country. At his death, in 1880, he was succeeded by his son Dudley, who is now President. There is no record of the elec- tion of a Vice-President from the date of the death of Charles E. Dudley in 1841, until 1844, when Samuel S. Fowler was chosen. He was suc- ceeded by William H. DeWitt, who held this office until January 1, 1853, the date of the expiration of the charter of the old Mechanics and Farmers' Bank. From this period, until June, 1865, the bank had no Vice-President, when Mr. Thomas Olcott, resigning the position of Cashier, was elected Vice-President, which office he held until his death in 1873. From this date until January 1, 1879, there was no election of Vice-President, when Dudley Olcott having resigned as Cashier was elected to that office. He held it until March, 1880, when he was succeeded by John J. Olcott, who now holds the position.

Gorham A. Worth was the first Cashier, which position he held until 1817, when he resigned to accept the office of Cashier of the Branch Bank of the United States, at Cincinnati, Ohio.

530

HISTORY OF THE COUNTY OF ALBANY.

Thomas W. Olcott was appointed to the vacancy and held the position until June 7, 1836, when he was succeeded by E. E. Kendrick. E. E. Ken- drick held the office until February 23, 1849, when he was succeeded by Thomas Olcott, who re- signed the position in June, 1865.

Dudley Olcott was his successor in the office, until January 1, 1879, when he was succeed by George G. Davidson.

At the time of the appointment of Thomas W. Olcott as Cashier, in 1817, the bank's capital had become impaired, owing to the financial troubles growing out of the depression following the close of the last war with Great Britain; but from this date, the financial history of the bank has been one of unvarying prosperity.

The aggregate amount of dividends paid since the organization of the bank is $3, 600,000, which will average about 15 per cent. since 1811, be- sides a surplus of $650,000 at date. At the ex- piration of the charter of the old bank, January 1, 1853, the stockholders received about 115 per cent., besides their stock in the new bank, which was $350,000. The capital of the old bank at this date was $442,000, divided in shares of $17 each.

The first charter of this bank expired in 1833 and was renewed for twenty years. In 1853, upon the expiration of its second charter, it closed up its affairs, dividing, besides the par value of its stock, fifty per cent. surplus, and went into opera- tion again with its same officers.

During the War of the Rebellion it again wound up its affairs and came under the National Bank system, which, however, it abandoned in 1868, and is now doing business under the general banking laws of the State. This bank has been conducted with signal ability and success.

Mr. T. W. Olcott, by general consent, was the great banker of Albany. He was the son of Josiah Olcott, of Stratford, Connecticut. Born at Hudson, N. Y., May 22, 1795; died in Albany, March 23, 1880. He came to Albany as Clerk in the Mechanics and Farmers' Bank at its opening, July 29, 1811, and continued as Cashier from July, 1817; as President from June, 1836. During his long career as a banker-for nearly seventy years- with singular devotion, he attained a reputation as a bank financier second to no one in the country, and left large wealth and a name greatly honored for benevolent deeds, broad public spirit and exalted integrity. In 1863 he declined a flattering offer from President Lincoln, of the position of First Comptroller of the Currency; but he declined all public office except such as related to the promo- tion of education or other local interests. He leaves one daughter and five sons: Dudley and John J., now President and Vice-President of the Mechanics and Farmers' Bank, Frederick P., late State Comptroller; and Alexander and Theodore, of Corning, N. Y.

The Commercial Bank of Albany is another of the old and successful financial institutions of the city. The first movement towards its incorporation was made November 19, 1823, when notice was given by Joseph Alexander, George W. Stanton,

Alexander Davidson, and David E. Gregory, that an application would be made to the Legislature for the incorporation of the Commercial Bank of Albany, with a capital ot $500, 000.

On the 21st day of January, 1824, a bill for its incorporation, to expire July 1, 1842, was reported from the Committee on Banks and Insurance Com- panies, and passed the Assembly January 29, 1824, but was defeated in the Senate.

The following year the application was renewed, and this time with success, for the bill, granting a charter to expire July, 1. 1845, passed both branches of the Legislature April 4th, and became a law April 12th, 1825.

The capital stock was fixed at three hundred thou- sand dollars, divided into shares of twenty dollars each.

The following were named as Commissioners in the bill, and constituted the first Board of Directors. William Walker, Joshua Tuffs, George W. Stanton, Lewis Benedict, William Cook, David E. Gregory, Seth Hastings, Ira Jenkins, Joseph Alexander, Robert Gilchrist, Richard Marvin, John Townsend, Asa H. Center.

The early days of the bank were not peaceful. The petition for its incorporation had been signed by hundreds of men of small means, representing the middle classes, who urged the grant of a charter on the ground that the stock of the three existing banks was principally held by men who had re- tired from business, and a new institution would be of great advantage to the mercantile and manufac- turing interests of the city.

The stock books having been opened for a sub- scription of $300,000 in May, 1825, they were closed after three days, when the amount sub- scribed was found to be $1,500,000. The stock not having been distributed to the satisfaction of all the subscribers, the Commissioners were charged with defeating the public expectation, and indigna- tion was aroused to such an extent, that a public meeting was called at the Capitol, June 10, 1825.

This meeting was largely attended, and was pre- sided over by Colonel John Stilwell. No action seems to have been taken at this meeting to remedy the supposed unequal distribution of the stock, but in view of the large amount of surplus capital sought to be invested in bank stock, it was suggested that it might be expedient to apply for another bank, to which the subscription of any individual should be strictly limited to fifty shares of twenty-five dollars each.

The Directors of the Bank were, for a time, enjoined from opening; but August 29, 1826, the Chancellor decided that the bank might go into operation so far as to issue bills and discount notes, but prohibited any transfer of stock, or mak- ing any loan or pledges on stock.

A meeting of the Board of Directors was held at Knickerbocker Hall on the evening of May 23, 1826, at which all the Directors, with the exception of William Cook, were present. At this meeting the Board was organized and Joseph Alexander elected President. July 13, 1826, Henry Bartow was appointed Cashier.

531

BANKS AND BANKERS.

The bank began business September 5, 1826, with a capital of $300,000, and continued until the expiration of its charter, on July 1, 1845, and under an extension of its charter until July 1, 1847, when it was reorganized under the General Bank- ing Law of the State. The capital stock was in- creased to $500,000, February 1, 1855.

On May 31, 1865, the bank was chartered under the Act of Congress as a National institution, and was reorganized and began business under that act August 1, 1865. It continued under this char- ter for twenty years, until May 31, 1885, when an extension of the charter was granted to May 31, 1905.

June 10, 1875, the capital was reduced to $300,000, shares $100 each, the amount of the reduction being paid to the stockholders. On Jan- uary 13, 1880, the number of Directors was re- duced to nine.

Mr. Alexander was succeeded in the office of President by the following persons, who were elected at the dates given: John Townsend, June 7, 1832; John L. Schoolcraft, August 31, 1854; Ezra P. Prentice, June 13, 1860; Robert H. Pruyn, November 24, 1875; Daniel Manning, March 4, 1882; Robert C. Pruyn, May 23, 1885. Vice- Presidents: Seth Hastings, June 18, 1836; John L. Schoolcraft, October 28, 1839; Andrew White, June 16, 1855. The death of Andrew White, in 1857, made a vacancy in the office until the elec- tion of Robert H. Pruyn, November 2, 1872; Rob- ert L. Johnson, November 24, 1875; Daniel Man- ning, April 9, 1881; Robert C. Pruyn, March 4, 1882; Nathan B. Perry, February 28, 1885.

The following Cashiers have been appointed : Henry Bartow, July 13, 1826; James Taylor, November 2, 1835; Andrew White, March 17, 1854; Powers L. Green, June 16, 1855; Visscher Ten Eyck, July 7, 1858; Eliphalet Wickes, Au- gust 11, 1862; James Martin, February 24, 1866; Edward A. Groesbeck, April 30, 1873.

This bank has been the depositary of the State funds during the greater part of its existence, and continuously for nearly sixty years, with the excep- tion of two years, when the Know-Nothing parry was in power. It has rendered very valuable ser- vice to the State in the safe keeping of its moneys, and in providing funds for the maintenance of the various departments of the Government when needed. It has also for some years been the de- positary of the city funds. The present capital is $300,000; surplus and profit, $510,000.

The bank from its organization has occupied its present location at Nos. 38 and 40 State street. The building was erected in 1816, and was used for some years as the Adelphi Hotel, a well-known establishment in those days. The banking-rooms were at first located on the second floor, and con- tinued there until the remodeling of the building in 1851, when the addition now occupied was built. At this time the upper stories of the front building were refitted for the Young Men's Associ- ation and the lower floor turned into stores. Pre- vious to this change the building had been occupied by the Commercial Bank, and the Albany City and

Canal Banks. The building was refitted in 1876, and the banking-rooms refurnished and improved.

Canal Bank. - This institution was incorporated in 1829, with a capital of $300,000. The first Directors were John T. Norton, Jeremiah Clark, Edward C. Delavan, Lyman Root, Israel Smith, John I. Godfrey, Aaron Thorpe, David Wood, Henry L. Webb, James Goold, Alexander Marvin, Edwin Croswell, James Porter, Richard V. De Witt, Lyman Chapin.

From 1829 to 1835 John T. Norton was Presi- dent. John Keyes Paige succeeded him, who a short time after was followed by Joseph Russell. The last President was Robert Hunter. Theodore Olcott was the first and only Cashier of this Bank.

The failure of this bank in July, 1848, was memorable as the first failure of a banking institu- tion in Albany. It was closed by order of the Comptroller, and a commission appointed to exam- ine into the affairs of the bank. At the time sus- picions of fraud on the part of the bank officers were entertained by the people, but an investigation failed to reveal such a state of affairs.

The Albany City Bank was incorporated April 30, 1834, with a capital of $500,000.

The Commissioners were : Erastus Corning, Chauncey Humphrey, Martin Van Alstyne, John Knower, Samuel S. Fowler, John L. Schoolcraft, William Seymour, Peter Wendell, Garret W. Ryckman, Anthony Blanchard, William Smith, Thomas M. Burt, Albert Gallup.

The bank commenced business October 1, 1834, with the following officers: Erastus Corning, Pres- ident; Samuel S. Fowler, Vice-President; Watts Sherman, Cashier.

The City Bank at that time was located on the south side of State street, in the Commercial Bank Building, No. 38. At that time the Commercial Bank was upstairs on the second floor. The stairs and hall divided the building. The City Bank occupied the east side; the Commercial Bank the west side.

Charles L. Garfield, of Troy, was appointed Clerk in October, 1836. In June, 1837, he was appointed Teller, in place of Moses B. Wright, resigned, a position he has held up to the present time.

About 1840 the City Bank bought from Joel Rathbone his store, 47 State street, which was con- verted into a bank building. It was then the fin- est bank building in this part of the country.

Watts Sherman continued as Cashier till 1847, when, his health failing, the Directors granted him three months vacation to visit Europe. Henry L. Lansing, late Assistant-Cashier of the Ontario Bank, N. Y., took his place during his absence. Octo- ber, 1850, John V. L. Pruyn was elected Vice- President.

July, 1851, Watts Sherman resigned as Cashier. Henry H. Martin was elected in his place.

In 1857, during the heavy panic, the Albany City Bank suspended specie payment, but not until all the banks in New York City had suspended.

The Albany City Bank charter expired January 1, 1864, and was immdiately reorganized under

532

HISTORY OF THE COUNTY OF ALBANY.

the New York State Banking Laws, with the same capital, $500,000, and the same officers.

Before closing the new State organization, it was resolved by the Board of Directors to pay the stockholders 80 per cent. - in addition to their regu- lar dividends of 4 per cent. semi-annually-amount- ing to four hundred thousand dollars. Forty per cent. payable April 1, 1864; twenty per cent. pay- able October 1, 1864; and twenty per cent. payable Octobler 1, 1865.

June 1, 1865, the Albany City Bank organized as a National Bank under the corporate name of the Albany City National Bank, still retaining the same officers and capital. Ninety thousand dollars of the undivided profits of the old Albany City Bank was carried as a surplus fund of the new National Bank. December, 1870, Henry H. Mar- tin resigned as Cashier, and Amos P. Palmer was elected in his place. By the death of Erastus Corning, April, 1872, the bank lost an officer of great and valuable experience, and to whose early care and labor the bank is largely indebted for its success. His son Erastus was elected in his place as President. The death of Ellis Baker, who had been connected with the bank for thirty-five years, occurred March, 1873.

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Bi-centennial history of Albany. History of the county of Albany, N. Y., from 1609 to 1886. With portraits, biographies and illustrations, Part 120

Author: Howell, George Rogers, 1833-1899; Tenney, Jonathan, 1817-1888 Publication date: 1886 Publisher: New York, W. W. Munsell & Co. Number of Pages: 1452

Author: Howell, George Rogers, 1833-1899; Tenney, Jonathan, 1817-1888
Publication date: 1886
Publisher: New York, W. W. Munsell & Co.
Number of Pages: 1452