N^4THE STORY OF A 1 NANKING INSTITUTION IN NEW ROCHELLE 1888 -1913 ?tate QJoUege of JV'gtitulturE At QJotnell IniuetBitH Cthratg Cornell University Library HG2613.N464A5 The story of a banking institution in Ne 3 1924 014 042 745 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924014042745 THE STORY OF A BANKING INSTITUTION IN NEW ROCHELLE 1888-1913 PRESIDENT— 1888 to 1913 THE STORY OF A BANKING INSTITUTION IN NEWROCHELLE 1888-1913 PUBLISHED ON THE TWENTY-FIFTH ANNIVERSARY OF THE FOUNDING OF THE BANK OF NEW ROCHELLE NOW THE NEW ROCHELLE TRUST COMPANY NEW ROCHELLE, N. Y. NEW ROCHELLE 1914 2- COPYRIGHT I9I3 BY THE NEW ROCHELLE TRUST CO. ILLUSTRATIONS Portrait of William W. Bissell, President 1888-1913 .... %°eoe^ Facing page The Starting Point — Center Avenue near Main Street — 1888-1893 6 The New Banking House on Main Street — 1893-1903 8 The First Expansion with Change of Title to New Rochelle Trust Company — 1903 . . 10 Present Office Building. Erected 1908 . .12 Main Banking Room — 1913 . . , -14 Ladies' Room — 1913 16 Portraits of Representative Men, Founders of The Bank of New Rochelle, now The New Rochelle Trust Company. . at end of volume THE STORY OF A BANKING INSTITUTION IN NEW ROCHELLE 1888-1913 BETWEEN 1688, when the Huguenots entered the Harbor of New Rochelle, and 1888, when the Bank of New Rochelle opened its doors for business, one commercial and two savings banks carried on business in New Rochelle. It appears that the first of these was estab- lished in 1844 by Dennis Sayre, as an indi- vidual bank, operating under the name of "Bank of New Rochelle." It issued circula- ting notes supposedly secured by a deposit of securities with the State Comptroller. It failed to redeem its circulating notes and in 1851 the securities it had pledged with the State were sold at auction, the holders of its circulating notes finally receiving some- thing less than the face value thereof. This bank was located on Pelham Road, near Meadow Lane, adjacent to the boat landing, the principal hotel being near by; this lo- 3 A BANKING INSTITUTION cality promising to be the business section of the Village. The next was the New Rochelle Savings Bank, beginning business in January, 1866, and failing in December, 1877, owing to em- bezzlement. For four years thereafter the Village was without any banking facilities whatsoever, commercial or savings. Then Mr. Adrian Iselin opened a private savings bank of3fice for the purpose of providing a convenient depository for the earnings of working people. In 1902, after twenty-two years of highly honorable service to the people of New Rochelle, Mr. Iselin closed his office, because other banks had been estabHshed in the mean- time and he desired to be relieved from his personal responsibility. Mr. Iselin's office was not a bank in the legal meaning of that term, but it surely well served the purpose of such an institution. At an earlier period than twenty-five years ago attempts had been made to provide banking facilities for the people of New IN NEW ROCHELLE Rochelle, but for several years prior to 1888 the Village had been without that necessary complement to thriving communities, a suc- cessful commercial bank. At that time a large part of the present area of New Rochelle was farm land, but even then the Village had nearly eight thousand inhabitants and needed a commercial bank. New Rochelle merchants were obliged to carry sufficient currency on hand to cash the checks of such of their customers as needed the accommodation, the nearest bank being located in Mount Vernon. When our busi- ness men made a bank deposit it required a trip which seriously interfered with their day's work. Our smaller business men, because they were operating at such a distance from banking institutions, frequently found it im- possible to establish a credit which would enable them to negotiate the loans often legitimately needed in the routine of a grow- ing business. When they made payment for their goods they had to send the cash by mail or express, or carry it in person. Citizens of 5 A BANKING INSTITUTION means, who had retired from active business and had come here to live, found it necessary to carry their bank accounts in other places. Housewives could not have a local bank account for the accommodation of themselves or their tradesmen. More important than all else, New Rochelle was without that great help to commercial order, system, thrift, punctuality and morality which a well con- ducted bank imparts to a community. In 1888, Mr. William W. Bissell, a banker, came to New Rochelle, and in connection with a few of the most prominent citizens es- tablished the Bank of New Rochelle in the little one story-building still standing at No. 40 Centre Avenue, just south of Main Street. Mr. Bissell's banking experience began in the Village of Rome, N. Y., where as a youth he en- tered the service of the Rome Exchange Bank as a junior clerk. Later he took the advice of Horace Greeley and "went West," locating at Kansas City in the employment of the First National Bank of Kansas City. After serving several years in important positions in that in- 1888—1893 The starting point — Center Avenue near Main Street IN NEW ROCHELLE stitution, he removed to Austin, Texas, accept- ing the position of Cashier of the First National Bank of Austin. He soon after resigned and engaged in private banking, conducting for fifteen years a successful business. Mr. Bissell'sbelief was and still is that a bank should be controlled by successful and high- minded business men residing in the com- munity the bank serves. Those of otir citizens who were familiar with the leading business men living in New Rochelle a quarter of a century ago realize that this policy was put into actual practice at the very beginning of the organization. The first board of directors of the Bank of New Rochelle consisted of William W. Bissell, Alonzo Guest, Albert Mahlstedt, James A. Grenzebach, James W. Todd, Alexander B. Hudson, George Ferguson, Edward Lambden, John Q. Underbill, Samuel C. Knapp, James Gibson, Jr., Bradford Rhodes and Willson M. Reynolds. Henry D. Phelps and Winiield S. Spencer, now deceased, subsequently and for many 7 A BANKING INSTITUTION years served on the Board of Directors. These were truly representative citizens. Since the original board of directors was created, New Rochelle has grown from a Village of 8,000 to a floiirishing city of 30,000. Many public improvements have been fi- nanced and successfully completed. The old roadways have been paved, curbed and gut- tered, and sidewalks laid; a sewer and drainage system established; the Centre Avenue open- ing over the railroad track, and Webster Avenue opening under the railroad, with the widening of North Avenue, and the opening of Division Street, have welded the City which was divided by the railway barrier; an electric lighting system has been established; and the trolley transit system developed and improved. By purchase, the City has acquired a most desirable outlet to the waters of the Sound — ^in Hudson Park, and a necessary recreation ground in City Park, to which is added the gift by Mr. Adrian IseUn of Iselin Park at the other extremity of the City. Modern and commodious school buildings 8 '. ''Wr- ililW I ijpilliiiiiipjjil^ >*«igoa«5.;-, . 1893—1903 The new Banking House on Main Street IN NEW ROCHELLE have been erected; the High School on North Avenue, a notable building with ample grounds, Weyman Avenue, Winyah Avenue, Huguenot, Ma37flower, Columbus and Stephenson Gram- mar and Primary Schools. The City has also constructed a Stone Dock at Hudson Park and a Mtmicipal Court House. During this period, many public buildings have been erected, notably the Masonic Temple and Cathohc, Presbyterian, Methodist and Baptist Churches. Along the many miles of splendid Avenues opening up the attractive residential sections of New Rochelle many homes have been erected which represent the most charming archi- tectural effects, and have made New Rochelle famous as the Queen City among all the suburban towns contiguous to the great Metropolis. The New Rochelle Trust Company has been an important factor in bringing about these splendid improvements. It has developed and grown with the development and growth of New Rochelle. Indeed, it has led the way, both in its own development and growth, 9 A BANKING INSTITUTION and in the spirit of civic pride it has inculcated in the community through its own devotion to high ideals of business procedure and commercial pursuit. Its transactions have always been characterized by liberality tem- pered with sterling business sense, and the signal success which its methods have brought has made its impress upon all those who have had business dealings with it. The New Rochelle Trust Company has been a free buyer of the obligations of the local government, and the individuals composing its board of directors have always been active in promoting all movements tending to make New Rochelle a highly desirable place in which to live. Not the least semblance of sensationalism has ever crept into the business methods of the Bank of New RocheUe or its successor, the New Rochelle Trust Company, either by the payment of unduly high interest, in the acceptance of doubtful security, in its efforts to obtain patronage, in taking unfair ad- vantage of its patrons, in loans to its directors, or by favoritism in any form. During its 10 1903 The first expansion with change of title to "The New Rochelle Trust Company" IN NEW ROCHELLE entire history, covering a period of a quarter of a century, it has scrupulously followed the high ideals of its organizers and profited greatly thereby, until to-day it has reached the point where it is the leading and most useful of all New Rochelle's commercial institutions. Truly it has accompUshed the ptupose for which it was organized. It has been useful in a high degree to the public, has brought profit to its stockholders, and is a credit to the community. Many a successful New Rochelle business man will be glad to testify that he was started and helped on the highway to success by the Bank of New Rochelle or New Rochelle Trust Company, and no depositor or stockholder has ever had cause to complain that its loans were not amply safeguarded. Of the first board of directors of the Bank of New Rochelle, two resigned upon their re- moval from New Rochelle, and of the others only three are now living— President Bissell, Alonzo Guest, and Albert Mahlstedt. 11 A BANKING INSTITUTION The present directors are: WILLIAM W. BISSELL SAMUEL F, SWINBURNE ALONZO GUEST CHARLES BABER ALBERT MAHLSTEDT HARRY E. COLWELL ROBERT P. CARPENTER EDSON S. LOTT THOMAS S. DRAKE JOHN H. TROY J. ADDISON YOUNG CHARLES W. HARMAN HENRI J. VAN ZELM DANIEL W. TIERNEY WILLIAM W. BISSELL, President ROBERT P. CARPENTER, Vice-President HENRI J. VAN ZELM, Secretary J. A. HUNTINGTON, Asst-Secretary J, MARSHALL PERLEY, Trust Officer These citizens will be recognized as success- ful men engaged in widely separated lines of human endeavor. It also can justly be claimed for them that they are broad-minded gentlemen representing public opinion from many angles. They thus form a body well calculated to honorably and successfully con- duct the affairs of any corporation. It may be stated that from the directorate of this banking institution the people have chosen many public officials — a village presi- 12 Present Office Building. Erected 1908 IN NEW ROCHELLE dent, a mayor, a district attorney, a judge, a comptroller, a city treasurer, and many members of important city boards; indeed the members of the board of directors of the New Rochelle Trust Company are among the fore- most citizens of otir City and County. Pictures are shown herein of the rented quarters (No. 40 Centre Avenue) occupied by the Bank of New Rochelle when it started (1888) as a State bank with Thirty Thousand Dollars capital and an office force of three; of the quarters (264 Main Street) it owned and moved into in 1893; its enlarged quarters in 1903, and of its present commodious, con- venient and attractive home, made by the purchase of additional frontage and converting the building into a thoroughly modem bank- ing and trust company building with all the ap- purtenances and conveniences known to present day banking, at the same time causing a marked improvement in the general appearance of our principal business street. 13 A BANKING INSTITUTION Dtiring this quarter-of-a-century period the capital of the institution has grown from $30,000 to $200,000; first— in 1900— to $100,000 by a stock dividend, and then — ^in 1907— to $200,000 by a stock dividend of 50% and the balance by subscription. In 1901 the Bank of New Rochelle was re- organized as the New Rochelle Trust Company, with the same stockholders, directors, and officers — ^that it might legally transact a trust as well as a banking business. Its first official statement under date of September 22d, 1888, reported: Capital $30,000.00 Stuplus and Profits 11.42 Deposits 47,091.77 It now has a capital of $ 200,000 A surplus and undivided profits of 100,000 Its deposits amotmt to over 2,700,000 Its assets amount to over 3,000,000 In addition to the above the value of the estates under its control as executor, trustee, guardian or agent amounts to nearly $4,000,000. 14 IN NEW ROCHELLE Its increase in deposits has been: 1888 to 1893 incl. average yearly $ 219,472 1894 to 1898 " " " 350,099 1899 to 1903 " " " 595,712 1904 to 1908 " " " 1,541,160 1909 to 1913 " " " 2,548,978 Under the law the New RocheUe Trust Company is authorized to transact a general banking business and in addition it is em- powered to administer the affairs of estates — to act as guardian, executor, trustee or agent. Special laws have been enacted by this State to safeguard trust funds under the care of a trust company. The fees have also been fixed by law, and are no greater than an individual is allowed to charge. Its Trust Department, an important and growing branch, offers you facilities which an individual cannot supply. 16 A BANKING INSTITUTION The New Rochelle Trust Company, under the charter granted to it by the State of New York, acts in the following capacities: As a general commercial bank, accepting deposits subject to check — As agent for others, transacting such busi- ness as may be legally entrusted to it — As executor of estates, with all the powers and none of the disadvantages of individuals — As trustee, to execute all trusts not in con- flict with the laws of the State. Through the New Rochelle Safe Deposit Company (owned and controlled by the New Rochelle Trust Company and its stockholders) , it provides lock boxes with keys for the safe- keeping of stocks, bonds, mortgages, notes, instu-ance policies, wills, private papers, jewelry and other things of value; such boxes being accessible only to the rightful holders of the keys. 16 Ladies' Room IN NEW ROCHELLE It also receives on storage valuables, silver- ware, etc., contained in trunks, boxes or pack- ages, (and issues certificates insviring owner against loss) at a reasonable monthly charge. The New Rochelle Trust Company is essen- tially a home corporation. Over 90% of its stockholders are citizens of New Rochelle and these stockholders own more than 90% of its stock. From the beginning it has been the policy of its management to keep free from outside control or influence. Today, as always, not a share of its stock is held by a banking corporation. The New Rochelle Trust Company is an important factor in the commercial and social life of New Rochelle. It has been helpful to the best interests of our community through twenty-five years of efficient service. It offers to the banking and business com- munity a service that will commend itself to those seeking banking facilities where prudent management and financial strength are con- trolling factors. 17 PORTRAITS OF REPRESENTATIVE MEN FOUNDERS OF THE BANK OF NEW ROCHELLE NOW THE NEW ROCHELLE TRUST CO. VICE-PRESIDENT AND DIRECTOR — 1888 to 1900 DIRECTOR— 1888 to 190D DIRECTOR— 188S to 1892 OMC. DIRECTOR— 1888 to 1S94 DIRECTOR — 1888 TO 1908 /i^t^^^^^-^c^ DIRECTOR— 1888 to 1906 iM:iiB?iSi^!^iSi!&!iiMi^il!Si;iii?i ^' y ^ ■<' ''■ DIRECTOR— 1889 to 1910 DIRECTOR— 1893 to 1909 DIRECTOR— 1888 to 1893 /H^U^OtMAUJ- DIRECTOR— 1 TO 1907