New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-07-04
CITY BANKS BIG PURCHASE
THE OLD CUSTOM HOUSE PROPERTY
AWARDED TO IT.
PROBABLE PLAN OF THE DIRECTORS FOR
FURTHER STRENGTHENING THE INsTI-
TUITION AND MAKING IT THE LEAD
ING POWER IN FINANCE.

ING POWER IN FINANCE
Washington. July 3-The Secretary of the
Treasury to-day opened the bids the New
York Custom House property. Of which there
were three He awarded the property to the
National City Bank OF NewYork, on its bid OF
So 265 600 this being the highest proposal. There
were two other bids. viz, those Of the NewYork
Realty Bond. Exchange and Trust Company, at
S3075O00 and the Farmers Loan and Trust
Company at $3050OO0 The bid of the City
Bank made in the name of its president
James Stillman, who present He inclosed
a check for S150000 as part payment and stated
In his letter Of transmitta that he preferred pay
ing a large portion OF the purchase price in cash
In purchasing the building and site OF the
Custom House 1t is believed that the directors
of the City Bank are following out policy they
laid down for themselves when in May 1891
they bought out the Third National Bank OF
this city. Their purpose in carrying out that
transaction, ii was understood. to extend
the scope. influence and potentiality Of the bank
until IT stood supreme in the financial world
II is the ambition Of It's directors in fact
that their institution shall come to occupy the
same relative position toward the Government
and National finance OF this country as does
the Bank OF England in Great Britain. In sup
port OF this belief remark made yesterday by
A. @. Loomis the vce-president Of the bank
is significant He asked If he did not think
the Custom House was a rather large place
for a banking business. and he replied The
Bank OF England occupies a pretty large build
ing"
GREAT POWER IN FINANCE.
The City Bank is already a great power in the
world OF finance, and has made it's influence felt
in various directions 1t was chiefly responsible
for the imposition Of the check tax. a measure
which generally unpopular and gave rise to
much unfavorable comment. The allowance Of
S20.000.O00. which the United States gave to
Spain when the latter rellnquished possession
Of the Philippines, was paid through the City
Bank. Prior to the taking over of the Third
National, the City Bank was not regarded as
the foremost banking institution in New-York.
Both the Park and the Chemical banks were
regarded as leading IT, Financial circles were
greatly surprised when the City and Third Ma
tional amalgamated. The transaction looked
upon as unusual. because both banks had been
doing good business and were entirely solvent
in every way. A. B. Hepburn. the president
OF the Third National, and former Controller
OF the Currency. was made vice-president Of the
new concern. Since that time the City Bank
chase OF the Custom House is regarded as an
other step IN its continuing development. James
stillman. the president is popularity supposed
TO represent the Rockefeller interests and the
bank tseIf Is known to represent some OF the
most conspicuous financial interests Of the
United States.
Just what it is proposed 10 do with the Gus
tom House property could not be ascertained
last night for the reason that none Of the d.
rectors could be found in town. Mr.. Loomis
was quoted yesterday saying: The city
Bank will make arrangements for converting
the old Custom House building into bank
building for It's own use" Whether this state
ment means that the Custom House will be
used exclusively for the business Of the bank
or whether It will be torn down and modern
office building erected on the site, could not be
determined last night
CAREER OF THE CITY BANK
The National city Bank dates from a period
which marked a notable epoch in the financial
and general history of the country The first
n,eetine of its directors was held on June 10,
1912 three or four days before the declaration
Of war with Great Britain. At that time there
were only four banks In the city of New-fork-
the Bank OF New-York established in liS4; the
Manhattan. 1874; the Merchants, 1SOo, and the
Mechanics, 1910. The capital employed ny
these banks was about $4,50OOW. on the ex-
piration of the charter of the Bank or the
United States and the refusal OF Congress 10
recharter it, the City Bank was established ana
purchased the business of the BANK OF the
limited States II bought, also the building or
the defnct bank on the present site or the Clty
Bank together with the house in Pine-st In the
rear. With this property went pranch oank-
ing house in Hammond-st., in what was then
known as Greenwich Village, and sixteen lots
of ground The whole was bought after con-
siderable negotation for tne rGunu sun, Ta
building in which the bank is now housed is
the second erected the Wa-st. site since 1t
came into possession of the city Bank.
The City Bank subscribed 100000 OF the
Government loan of 1913. Its directors also
took considerable amounts on private account
and altogether the bank seems to have been
most energetic in sustaining the Government in
the war The first Board Of Directors OF the
bank was composed OF the following: Samuel
Osgood Abraham Bloodgood Henry Tanning,
Ichabod Prall John l.. Norton, Isaac Piereon.
Grove Wright, William Irving, Benjamin
Bailey Samuel Tooker, Peter Stagg, William
Cutting. William Furman. John swartout Jas
per Ward Samuel Osgood, the first president
was in 1914 Naval Oficer or this port ana hVeu
at No 9 Cherry-st.
In 1852 the bank was reorganized under the
general banking law Of the state. and In 1850
came under the National system with the name
OF the National City Bank Of New-York In
July 1853, on the increase Of the capital STOCK
from $500 600 to 81 10000. its present amount.
the two thousand new shares were sold by pub
lie auction in the Merchants Exchange. and
brought prices ranging from 1Dl5 TO lZl% The
City Bank has had its vicissitudes besides those
involved by the stormy events OF the war II
was the victim some twenty years ago OF one
Of the most carefully planned burglaries ever
known in the history OF crime. About sSO0Oo
was stolen.
"VHITECAPS" TO BE HANGED.