The Kadoka press and Kadoka reporter. [volume] (Kadoka, S.D.) 1910-1923, 1920-01-02
MERGER OF BANKS RECALLS
STORY OF FIGHT



between Alexander Hamilton and
Aaron Burr, at Weehawken. n. J.,
in 1904 have been revived by the
merger of the Manhattan company
and the Merchants National banks
two of the oldest financial institu.
tions in New York.
For more than lis years the two
establishments have dwelt side by
side at 40 and AZ Wall street. and
in 1882 they uited in the construc-
tion of the new building which
they have occupied jointly ever
since. In the union of these once
rival institutions the metropolis
loses probably the last tangible
trace of the most famous of early
American antagonisms. Although
the banks themselves have long
since buried the hatchet" there
was time when they were neigh
bors in name only-when the mere
suggestion of their getting toget-
her would have been dismissed as
unthinkable.
Burr was elected to the New
York legislature in 1897, when the
state and city were controlled by
Hamilton as the leader of the fed
eralists. Hamilton had helped TO
establish in New York a branch of
the Bank of tho United States.
This was then the only banking
institution in New York city.
The institution was controlled
so the republicans led by Burr
alleged, by the fcderalists, who
were charged with using their fl
nancial powers for the further
ance Of the federalist cause.
The political ambitions of the
little intriguer" at Albany eau
sed him to desire TO break through
the banking ring which barred all
anti-federalist banks from New
York, and his opportunity came
in 1899. In that year he intro
! duced bill in the Legislature
which authorized the granting or
charter to company which was
} ostensibly to be formed for the
purpose of improving the water
supply of NewYork city. The city
J then with a population of 10000,
I had just passed through a severe
epidemic and Burr's project quick
ly met with popular approval.
The real object of the Manhattan
company was to supply republicans
J with the sinews of war.
I Republican merchants, it was
said, were Disseminated against
by the federalist bank, whereas
their federalist competitors were
freely accommodated when they
} sought funds to carry on their
business. The adroitness which
Burr employed To obtain chart
e er was emphasized by the fact
h that the federalists had major
n ity in the legislature. Hence the
is commission of the word bank from
re the Manhattan company.
sc The petition for the proposed
le water works" company started
that, as it was not known how
IS much capital would be required,
he the projectors did not want 70 risk
,e failure by a deficiency of capital
id and, therefore, asked authority to
N raise $2,000,000. Inserted in the
he charter was provision of Burrs
t. that the surplus capital may be
employed in any way not inconsis-
20 tent with the laws or the consti-
b. tuition of the United States or Of
10 the state of New York.
Or The senate and house passed the
n bill expenditiously, few members
ID ever taking the time To read IT,.
and none except those who were
in the secret suspecting its real
purpose. Burr's manipulation OF
this affair won him the favor of "a
C. few republican leaders. but cost
~ him his former prestige, the peo-
rd pie at that time having chronic
Mt prejudice against banks. Four
d. years later, however, Hamilton, un-
or willing to yield the slightest de-
he gree to his opponent, organized
the Merchants National, which
u opened for business next door TO
ss Burr's institution.
&C. The Manhattan companys act
ual achievement in the wateI
NJ works field was the sinking of a
T." well 25 feet in diameter in what
I'M is now downtown New York. The
ay water was pumped To nearby
IT. reservoir and thence distributed
,c- through wooden pipes to a few
as consumers. The dams and other
projects provided IN the charter
on were never constructed. Oceas-
W. ionaily excavators in lower Man
es haitian have dug up pieces of hol-
-. Io.,.nI l,,,t lnorS rnnnnnfnns of q