The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-06-25
Some Recent important
Unions of New York
Financial Institutions
STILLMAN STARTED
GREAT MOVEMENT
His Liquidation of the Third National
Attracted Much Attention
to His Ability as
Financier
BY HOLLAND

New York, June 24.-(special)-From
eome points of view the contemplated
liquidation of the Fourth National bank
of this city furnishes one of the best of
examples which show what the modern
tendency at least in the large cities. with
respect to the concentration of banking
capital to resources now is The Fourth
National was for many years almost a
next door neighbor of the Third National,
which went into liquidation little over
20 years ago. The Third National was
at one time perhaps more intimately as
ISOLATED in business way with banks in
the south and southwest than was any
other bank in New York city.
The bank, however, had become too
firmly fixed or set in the grooves which
/ were established in the early days of the
national banking act, and not even the
highly competent and experienced man
agement of the institution by A. Barton
Hepburn, who became its president after
his term as comptroller of the currency
at Washington expired, was able to infuse
new life and vigor into the institution.
1t was about that time that James Still
man somewhat reluctantly accepted the
That bank had for many years cultivated
close banking relations with financial in
situations in the south whose chief BUSH
ness came from the cotton planters. Mr..
Stillman was himself cotton commission
merchant, as his father had been before
him. He was of southern birth, his ma
tive town being Brownsville, Tex.
Mr.. Stillman took his first conspicuous
step in the direction of the development
of the National City bank by undertaking
to liquate through the City bank the
Third National. But there was no absorb
ton in the sense in which that terms is
understood. Mr.. Stillman and his asso-
ciates took over the resources of the Third
National, converted them into cash and
with the funds thus obtained paid the
stockholders dollar for dollar and little
more. Naturally the City bank took over
a majority of the depositors of the Third
National thereby considerably increasing
its deposit line. The transaction caused
bankers all over the United States to re-
gard Mr.. Stillman, who was then under
middle age, as perhaps the great au-
thority and influence in modern banking
methods.
The Day of Consultations
Soon after this transaction was COM
pleted other banks of New York began to
contemplate consolidation. Among these
was the First National, an institution
which for 40 years was the fiscal agent
of the government at Washington and
was in intimate business relations with
the treasury department This bank took
over the Bank of the Republic of which
John Jay Knox was the president. Mr..
Knox had been for many years comp
troller of the currency at washington,
having been the second man appointed to
that office. The chief reason why the
First National took over the Bank of the
Republic was for the purpose of securing
title to the entire building at the corner
of Wall street and Broadway which had
long been colloquially known as Fort
Sherman" in honor or in recognition OF
John Sherman's official relation to the in
stitution. The fee of one-half of the build
ing was i'm the Bank of the Republic,
but after the First National took over
this institution the fee also passed to 1t.
Since that time there have been num-
Der of important consultations and the
example has been followed on the whole
with great success in other cities by
consolidation counseled and directed by
Daniel s. Wing, Boston has secured a
very influential bank of which Mr.. Wing
is president. and the presidency of Will
liam A. CASTOR of the Shawmut National
bank at Boston identifies consolidation
which has made this bank the greatest
In the United States. Chicago now pos
sesses banking institutions which rank
with the very greatest in this country
and which represent the consolidation
movement.
Recently in this city there have been
two transactions, one practically COM
pleted. which again represent the spirit
of consolidation. The old Nassau Ma
tional bank, long managed with conser-