The Washington herald., 1918-03-05
STRONG BANKS
ENTER MERGER
Holland Gives Interesting
History of Big Finan-
cial Institutions.

central Trust Company and the Union
Trust Company are speedily to be
consolidated and when this Is done
ZINE UNIFIED institution will be fourth
upon the list Of the largest trust COM
Panles In the world and will be able to
say that there are deposited with It
nearly s260,000, 200.
This consolidation inevitably causes
interesting recollections to be revived
associated with the days when Ed
ward King was president Of the Union
Trust and Frederick Olcott bore the
same relation to the Central Trust. For
years these two men were central
ngures in New York banking life
They were esteemed worthy OF the
reputation they gained as ranking
we'll with the ablest bankers OF the
United States. In personality and in
some OF their methods of conducting
the trust company business the two
men were widely apart.
One OF them, Mr.. King. was always
2 banker. He was member Of the
King family, which was prominently
identified not only with the growth of
New York City, but also Of the State.
one Of whose members was governor
Of New York, and another United
States Senator.
Was Comptroller.
Mr.. Olcott in his early manhood at
MS home at Albany, demonstrated such
a high order Of political ability as, had
ne been disposed to make politics his
vocation, would have surely brought
MIN TO pre-emience as a leader in the
democratic party in New York State.
= When q young man he was-elected
comptroller OF the State and his serv-
tce in that once was favorably COM
pared with that performed by Martin
Van Buren,, Silas Wright, William l.
Marcy and Millard Fillmore. Two Of
these men who began their political
careers in that service afterwards be-
came President of the United States
Van Buren, and Fillmore.
There came a moment in the early
Ss when those who were directing
the fortunes of the Democratic party
in New York were casting about with
intent to discover the man who would
be regarded as the most available
candidate for governor.
They hxed at last upon Frederick
P. Olcott, and when he was informed
OF this purpose he stood contemplat-
ing upon the one hand an invitation
which he had just received to become
president Of the Central Trust Com
pany. Of New York City, and on the
other hand seriously considering
whether or not he should consent to
be a candidate for the Democratic
nomination for governor, knowing
that his nomination and election were
certain.
At last he accepted the banking in
aFaN aRHs
Democracy as its candidate for gov
Srnor he undoubtedly would have been
elected by a phenomenal majority and
in all probability Grover Cleveland
would have remained a somewhat in
conspicuous citizen OF -BuRafo. ----E-s- =
1t has always been believed by party
leaders that had Olcott been elected
governor he would inevitably have re-
ceived the Democratic nomination for
President in 1854, because the vote
which the Democratic party would
have given him in support Of his cleo
tion as governor would have been as
large as the phenomenal majority
which Grover Cleveland received.
Democracy took up Cleveland after
Olcott decided to become a banker in
New York.
"hat OlcOtl DID.
Mr.. Olcott took a young trust insti-
tuition not quite ten years of age, and
within two or three years made 1t the
most conspicuous trust company not
only in New York but in the United
States. Great opportunities came to
his hands and he accepted them. He
made profits for the Central Trust
which at that time almost staggered
the imagination.
Nothing like these figures had ever
been reported by any other banking
institution The company was able
Ito pay not only large regular divi-
bends but sometimes extra dividends
pr 100 per cent. The prestige and
prosperity which it secured under Mr.
Q1cott have been maintained and are
represented by a recent quotation of
40 for each share Of the trust COM
pany's stock.
Mr.. Olcott's work was wonderfully
well done and might have continued
for some years but for progress of
the disease which caused his death
His name will always be traditional
as one Of the most successful bankers
New York City and the entire coun-
try have ever had.
The Union Trust.
The Union Trust Company was or
Eanized chiefly for the purpose of
conducting a trustee business. 1t was
established in the third year Of the
war between the States. 1t was able
to secure highly profitable business
in the form of trusteeship under wills
and mortgages. Many estates were
conitted to its charge.
The Vanderbilts were for many
years greatly interested in the Union
Trust Company. although upon two
or three occasions friction between
President King and one or another of
the Vanderbilts threatened to impair
the friendly and profitable relation.
Horace Clark. brother-in-law of Will
liam H. Vanderbilt, was at one time
engaged in controversy with Presi-
dent King. William H. Vanderbilt
khImself was upon one occasion ex-
Kfng insisted that such security as
Mr.. Vanderbilt proposed to offer as
tthe basis of q negotiation with the
trust company should be made up ex-
clusiyely Of government bonds OF the
largest denomination.
Bonds OF that characters were ex-
ceedly difficult to get. Some years
later Cornelius Vanderbilt, who was a
director of the Union Trust Company,
earnestly, almost pathetically, urged
President King not to insist upon the
choice Of q man for a vacancy In the
board OF directors with whom Mr..
Vanderbilt was bitterly estranged
President King was an unyielding
man and he had his way, but when
the will of Cornelius Vanderbilt was
read II was discovered that he had 50
changed il Immediately after Presi-
dent King refused his request, as to
make another trust company the trIis-