New-York tribune., 1912-02-21
TRUST CO.'S TO MERGE
WITH s1O,OOO,OOO STOCK
Bankers to Absorb Manhattan
and Have Largest CapltaIIza-
tion in United States.
RIVAL OF THE GUARANTY
Will Have Resources of S182,
33O,000, as Against Latter's
S208,793,600-Soon to
Move Into New Offices.


.yhe Bankers Trust Company which last
August took over the Mercantile Trust
Company. will soon absorb also the Man
haitian Trust Company IT was announced
Yesterday, and will increase its capital
stock from 100000 to $40 100000, the largest
capitalization Of any trust company in the
United States.
The Guaranty Trust Company. on the
board of which are nine men who are also
directors of the Bankers Trust Company
has been since it's absorption of the Morton
and Fifth Avenue Trust companies. two
years ago. the largest trust company In the
United States in point of deposits and re-
sources but the merger now announced
will result in an institution closely rivalllng
II.
The Bankers Trust Company has S5,ooO,cO
capital stock as already noted. and Sl5'-
$4,000 surplus and undivided prohts. with
deposits of Sl37. 1876 900. The capital of the
Manhattan Trust Company. is a,WO,0N
surplus and profits are S2,252il4 and de
posits S21, ,093174. The combined surplus and
profits of the two institutions will be Ao'-
77l.ll4. comparing with the Guaranty trust
Company's So, ,SSS,107. while their combined
deposits will be Sl5S5S6174, exceeding by
about s. 10000 the Guaranty's SlJ6'OzzSSl
deposits The total resources of the Guar
anty Trust however are $2os, GOO. against
Ss2. .33O. 600 for the Bankers and Manhattan.
About two years ago the Bankers Trust
Company, which is at present housed at
No Wall street. acquired the Gillender
Building owned by. the Manhattan trust
Company. at the northwest corner Of Wall
and Nassau streets. and proceeded to re-
move It and to erect on its site, which is
leased for twenty-one years. with the
privilege Of three renewals. an office build
ing, which will be ready for occupancy
within two or three months, and which is
one of the highest structures of its KIND IN
the world
Negotiations Were Suspended.
At the time of this transaction there were
negotiations for the merger of the Bankers
Trust Company and the Manhattan trust
Company, and these negotiations. sus-
pended for a considerable period, have re-
Gently been renewed and brought to sue
oessful conclusion.
OF the 100000 new stock to be issued by
the Bankers Trust Company 100000 will
be sold TO its present stockholders and
the remaining S1,oOO.OOO will be exchanged
for the 100000 capital stock Of the Man
haitian Trust Company. 1t had been
planned that the first three floors of the !
new building should be occupied by the two
trust companies, each Of which should |
have its principal Offices on the ground |
floor: but the merger will naturally result |
in the two sets of offices being thrown into |
one. The Manhattan Trust Company has
been at No lis Broadway since its former |
building was purchased by the Bankers
Trust Company.
When IL became known that the Bankers |
Trust Company was TO erect a great new
building as its permanent home there were
reports that II would ultimately take over !
the Guaranty Trust Company, forming an
institution of colossal size, but these ru-
mors have been less active since the Guar !
anty announced it's intention of having |
building of its own and bought the site at
Broadway and Liberty street, on which a
structure for its occupancy is now going |
up, and it has been supposed that the Nor
gan interests, dominating both companies, |
have come to the conclusion that it would |
be more profitable TO conduct the two big |
trust companies independently than to
merge them.
The Bankers Trust Company was or
ganized in the early part of 1903. with ST. !
10000 capital and 100000 surplus. It's di
rectors from the outset have been bankers, /
representatives Of banks, trust companies !
and banking houses in this city and the in
terror, and II has had a record of rapid
growth. Its first home was i'm the Central I,
Building. at West and Liberty streets, but !
1t moved TO Wall street seven or eight !
years ago.
George w. Perkins, then of J. =. Morgan
& Co.. and Henry p. Dawson, then vice
president of the First National Bank, and
now of the Morgan firm, were among its
organizers and are still on its board of di
reetors Among their associates are two
other partners in J. +. Morgan & c., Will
lam III. Porter and Thomas w. Lamont;
Francis l.. Iine and Charles d. Norton.
respectively president and vice-presdent of
the First National Bank, with which the
Morgan houses relations are close, and A.
D. Hepburn and Albert II. Wiggin. chair
man of the board and president of the
Chase National Bank, another institution of
the so-called Morgan group.
The Manhattan trust Company, which
was organized in 1871 and of which John
]. Waterbury has for many years becE
president. has like the Bankers Trust Com !
pdliN, pecn ciaSSed as Morgan bank, |
so that the merger does not represent an
accretion to the banking power of the so |
called Morgan group of capitalists Among |
the leading directors Of the Manhattan aie |
George +. Baker, chairman of the board |
OF the First National Bank; James J. Hill |
and John j. Mitchell. of Chicago, who Is !
with Messrs Baker and Hill and j. p Nor
gan, a director of the First National Bank
and who is associated with them and with
their friends in numerous other directo-
rates,
The capital of the Bankers Trust Com
parry was increased from $3.00O00O to $780,
0o0 on the occasion OF the merger with the |
Mercantile Trust Company, and the COM |
pany. which had been paying per cent !
quarterly dividends, increased its quar-
tsfly rate TO per cent on the enlarged |
capitalization. The stock was quoted yes
tertlay at 726s bid. comparing with 755 bid |
and 76j asked on Monday, and the stock |
OF tho Manhattan Trust Company, the final |
quotation for which on Monday was 1850 |