Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1880-12-21
John Sherman'S Pet Bank.

John Sherman's Pet Bank.
The Structure Called s.FOrt Sherman" by the
Erokers.-2 1-2 Per Cent. Meant Ruin.
New York Sun.
On the northeast corner of Broadway and
Wall street, hidden from sight by rough
screen Of lumber, now nearly hundred
feet high, a large force Ofworkmen are add
ing the upper stories to building that
promises to be 4 notable landmark of the
city. The basement and ground story arc
not enclosed, and present an appearance OF
solidity rarely seen in the architecture OF
the present. This exposed part of the
building consists Of massive brown stone
piers standing out beyond the line of the
other buildings in both thoroughfares.
The stones are for the most part uncut and
their roagh sides attract the eye and in
crease the impression of sOlidity.
The building is the joint investment
of the First national bank and
the National Bank of the Republic. The
style of architecture is Romanesque.
Above the huge, rough-hcwn piers that
enclose the basement and ground floor
rise seven stories formed Of columns of
pressed krick, relieved by heavy stone
work. The window caps Of the eighth
story are surmountcd by heavy stone
cornice with carved cOnvolutcs, and above
all there is being erected a parapet wall OF
brick and stone. 4 huge stone griffin
will project from the Broadway and Wall
street corner Of the roof, and lesser gritlins
will keep guard at the other ends of the
cornice. The height from the sidewalk to
the roof will be 13O feet.
The seventy-two feet front in Broadway
and half of the ninety-twO feet front III
Wall street of the ground floor will be oc-
cupicd by the First national bank. The
Bank of the Republic will occupy the other
and inner halt of the same floor. Access
to both banks will be had from the main
entrance in the middle Of the Wall street
front. Another spacious entrance in the
centre Of the Broadway front will lead to
the First national bank and the Offices in
the basement. The seven stories above
the banking offices are to DC fitted up for
offices. The entire structure is to bc rs
thoroughly tireprOof rs modern devices can
make il. Each bank is to have 4 spacious
vault. The estimates upon the building
aggic gated something over $3.50, 900. The
land upon which it stands is valued at
about $500, 200. 1t is probably a safe
estimate to make that the property when
ready for occupation will have cost ST.
800, 900.
As the building has grown Il name has
come to it that has become more aud more
its own each day, and viii! probably cling
to it. Its legitimate title is the Union
bank building. The throng of bankers,
stock brokers, and spectators that sweeps
around its buttresscs into Wall street call
it Fort Sherman, because of John Shcr-
man S connection with the First national
bank.
Three years ago the First national bank
was doing moderately profitable basiness
in an unoStentatious way :. few doors above
the Ecw building. Sam'l c. Thompson was
its president and George +. Baker the
cashier. Its capital was $500 and in
that respect it ranked about the for
tieth in the list of banks of the city.
Toward the close of 1874 it had 4 surplus
Of 500, 600; i year later it's surplus was
was $500. In the summer of 1877
Cashier Baker, +. Il. Baker, +. o. French,
F. +. Thompson, Ebcnezer Scofeid, WHO
were directors, and H. G. FahncstOck and
James 4. Garland, who had been associ-
ated with Jay Cooke in the banking bust
ness, bought out the interest of Samuel G.
Thompson and his father, John Thompson.
lucy stu Nouip, IilCtI. slilV dtS SllICWu isS
they are entertaining. 1t was not an alto
gethcr amicablc transaction. Mr.. John
Thompson, the conservative old school
gentleman, who was practically the head
of the institution, found the young men
inclined to speculations that he did not
consider safe. lie had succeeded in hay
ing his bank recognized in the work of
placing the per cent. bonds when the
ROthsclilds, through their agents, at
tempted to monOpoliZc the handling of
these bonds. On account Of the services
OF this bank in assisting in the placing of
that loan, john Sherman WAS compelled to
allow his bank to become Il member OF the
new syndicate that was formed for the
purpose of placing the 4 per cents. But
the young men vino were associated with
him in the management of the bank
wanted to undertake what he thought
was too large share of
the business for them TO handle with
safety. Owing to nanipulatiOns of the
ltOthschildS to force monopoly of the
bonds into thcir'contr,i. tic price was de-
pressed in August, 1877, soon after the
new syndicate made its contract, to and
per cent, below what the syndicate bar
gained to pay the government for them
While Mr.. Thompson cherished an almost
perfect faitl. in the credit of the govern
ment, he was reluctant to have his bank in
sush 4 position that fuctuation of 2! per
cent in government bonds would either
double its capital or wipe it out. AS an
officer of the bank at that time said, cit
was a position in which We faced profit
of 100 per cent on one hand and the grand
jury on the other" In 4 letter written
several months subsequent to the with
drawal Of the Messrs. Thompson, John
Sherman said to John Thompson:
''1t is understood that you arc unwilling
as an officer of that bank to take the risk
of the fluctuations of gold. I confess
that in your place would have hesitated
as you did in taking the risk
But the new management did not hesi-
tate. 1t happened that fortune favored
the First national bank
Soon after quitting the First national
the Messrs. Thompson started bank of
their Own-thc Chase nationals few
doors above their former bank in Broad
way. The First national organized by
electinS George +. Baker, president, and
Ebcnezer Scoiic!d, cashier. The new man.
asement obtained control soon after John
Sherman abandoned the per cent bonds
and conceived the idea of continuing the
refunding with 4 per cent. bonds. Mr
ThompsOn's standing and services in plac-
ing former bonds of the government had |
obtained for the First national bank while |
lie was connected with it, a good share Of
the business, while other national banks |
were not SO fortunate. With change in |
the management 4 more ,,Oteut inf1npnca