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44-498: The Manhattan Company was a New York bank and holding company established on September 1, 1799. The company merged with Chase National Bank in 1955 to form the Chase Manhattan Bank . It is the oldest of the predecessor institutions that eventually formed the current JPMorgan Chase & Co . The Manhattan Company was formed in 1799 with the ostensible purpose of providing clean water to Lower Manhattan . However,

88-640: A chain of forty-eight offices in many different sections of New York City, with resources of $ 300,000,000. It also absorbed, in succession, the Bank of Long Island, the Bank of the Metropolis, and the Merchants' National Bank of New York on March 1, 1920, effective March 27, 1920. Merchants' then president, Raymond E. Jones, became vice president and second in command of the combined institutions. Coincidentally, Merchants' National had been chartered in 1804 through

132-487: A new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company. A parent company could simply be a company that wholly owns another company, which is then known as a " wholly owned subsidiary ". Jonathan Thompson (Collector) Thompson was born on December 7, 1773, at Sagtikos Manor in Islip . He was the son of Isaac Thompson (1743-1816), judge of

176-527: A parent company material influence if they are the largest individual shareholder or if they are placed in control of the running of the operation by non-operational shareholders.) In the United Kingdom, the term holding company is defined by the Companies Act 2006 at section 1159. It defines a holding company as a company that holds a majority of the voting rights in another company, or

220-556: A prominent New York merchant who was one of the original stockholders of the Manhattan Company. Two years later, in 1893, Baker was elected president at the age of only 34, succeeding John Stewart Kennedy who served as president pro tem for a few months following the resignation of D. C. Hays. During his tenure as president, the bank expanded from its single original office at 40 Wall Street, opened in September 1799, to

264-499: Is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own stock of other companies to form a corporate group . In some jurisdictions around the world, holding companies are called parent companies , which, besides holding stock in other companies, can conduct trade and other business activities themselves. Holding companies reduce risk for

308-643: Is a member of another company and has the right to appoint or remove a majority of its board of directors, or is a member of another company and controls alone, pursuant to an agreement with other members, a majority of the voting rights in that company. After the financial crisis of 2007–2008 , many U.S. investment banks converted to holding companies. According to the Federal Financial Institutions Examination Council 's website, JPMorgan Chase , Bank of America , Citigroup , Wells Fargo , and Goldman Sachs were

352-478: Is defined by Part 1, Section 5, Subsection 1 of the Companies Act, which states: 5.—(1) For the purposes of this Act, a corporation shall, subject to subsection (3), be deemed to be a subsidiary of another corporation, if — In the United Kingdom, is generally held that an organisation holding a 'controlling stake' in a company (a holding of over 51% of the stock) is in effect the de facto parent company of

396-481: The broadcast licenses to reflect this, resulting in stations that are (for example) still licensed to Jacor and Citicasters , effectively making them such as subsidiary companies of their owner iHeartMedia . This is sometimes done on a per- market basis. For example, in Atlanta both WNNX and later WWWQ are licensed to "WNNX LiCo, Inc." (LiCo meaning "license company"), both owned by Susquehanna Radio (which

440-442: The shareholders , and can permit the ownership and control of a number of different companies. The New York Times uses the term parent holding company . Holding companies can be subsidiaries in a tiered structure . Holding companies are also created to hold assets such as intellectual property or trade secrets , that are protected from the operating company. That creates a smaller risk when it comes to litigation . In

484-597: The Bank of Manhattan Trust Company, the International Acceptance Bank, and the International Manhattan Company. At that time, Baker also became president of the Bank of Manhattan Trust Company, which he later relinquished to Goodhue on December 10, 1931, to enable Baker to devote more time to the affairs of the Manhattan Company. In February 1932, following the death of Paul Warburg on January 24, 1932, J. Stewart Baker

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528-458: The Bank of the Manhattan Company reported total deposits of $ 505,477,944 and total assets of $ 612,951,711, compared, respectively, with $ 504,800,925 and $ 566,271,489 on December 31, 1937. In December 1948, Goodhue retired as president of the combined bank and was succeeded by Lawrence C. Marshall , who served as president of the bank until 1955. The bank merged with Chase National Bank in 1955 to become Chase Manhattan . In 1996, Chase Manhattan

572-505: The Bank of the Manhattan Company. By 1885, Smith had retired from the company but remained interested in the affairs of the LaFarge Decorative Arts Company . In 1891, the board of directors of the Bank of Manhattan Trust Company elected Stephen Baker vice president. Baker, a son of former U.S. Representative Stephen Baker and protégé of financier John Stewart Kennedy , was the grandson of Stephen Baker ,

616-650: The Manhattan Company began business on September 1, 1799, in a house at 40 Wall Street . Its first board of directors members were Daniel Ludlow, John Watts , John Barker Church , Brockholst Livingston , William Edgar, William Laight, Paschal N. Smith, Samuel Osgood , John Stevens , John Broome , John B. Coles, and Aaron Burr. Among its original stockholders were such men as Nicholas Fish , John Delafield , John Jacob Astor , Richard Varick , Stephen Van Rensselaer , Rev. John Rodgers , Joshua Sands , Peter Stuyvesant , George Clinton , Israel Disosway , John Slidell , Henry Rutgers , and Daniel Phoenix . In July 1800,

660-405: The Manhattan Company shareholders own the stock of the International Acceptance Bank, leading its owners to receive shares of the Bank of the Manhattan Company "in an amount that will make it one of the most important factors in that organization." In March 1929, the shareholders of the Bank of the Manhattan Company approved its plan to increase capital from $ 16,000,000 to $ 22,500,000 to acquire all

704-584: The Manhattan Company. The business of the International Acceptance Trust Company was taken over by the Bank of the Manhattan Company. At the same time, the two banks created the International Manhattan Company, Inc. with Warburg's son, James Warburg , as president of the new company which succeeded to the foreign securities business of the International Acceptance Bank, Inc. All of the stock of

748-646: The Suffolk Court of Common Pleas, and member of the New York State Assembly in 1795, and Mary ( née Gardiner) Thompson (d. 1786), who wed in 1772. His brother was Abraham Gardiner Thompson. His paternal grandparents were Mary (née Woodhull) Thompson (a first cousin of Gen. Nathaniel Woodhull ) and Jonathan Thompson, a Justice of the Peace for forty years. His maternal grandfather was Col. Abraham Gardiner of East Hampton, New York , son of

792-509: The United States, 80% of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed. That is, if Company A owns 80% or more of the stock of Company B, Company A will not pay taxes on dividends paid by Company B to its stockholders, as the payment of dividends from B to A is essentially transferring cash within a single enterprise. Any other shareholders of Company B will pay

836-500: The bank as the "first teller" in 1840, served as president until ill health forced him to resign in the latter part of 1879. Morrison was succeeded by John S. Harberger , who had begun working for the bank in 1857 as assistant cashier. Harberger died of malarial fever a year later in October 1880. In October 1880, William Henry Smith of the dry goods house of William H. Smith & Co. was elected to succeed Harberger as president of

880-500: The bank having sixty-one offices throughout New York City. In December 1928, the 129-year-old Bank of the Manhattan Company announced a joint affiliation with the International Acceptance Bank (and its subsidiary, the International Acceptance Trust Company), which had been organized in 1921 by Paul Warburg . The plan was for each institution to retain their present identities, but have the Bank of

924-464: The bank started paying dividends, and in 1808, the company sold its waterworks to the city, pocketing $ 1.9 million and turning completely to banking. Even so, it identified as a water company as late as 1899. The company maintained a Water Committee which yearly assured, quite truthfully, that no requests for water service had been denied, and moreover conducted its meetings with a pitcher of the water at hand to ensure quality. In 1825, John Gerard Coster

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968-497: The city, Aaron Burr founded the company and successfully gained banking privileges through a clause in its charter granted to it by the state that allowed it to use surplus capital for banking transactions. The company raised $ 2 million, used one hundred thousand dollars for building a water supply system, and used the rest to start the bank. The company apparently did a poor job of supplying water, using hollowed out tree trunks for pipes and digging wells in congested areas where there

1012-656: The efforts of Alexander Hamilton as a rival to the Manhattan Company, launched by Aaron Burr. In 1923, it moved its headquarters briefly to the Prudence Building and then in May 1929, construction began on what was briefly the tallest building in the world, at 40 Wall Street (known as the Bank of Manhattan Trust Building ) on the site of the Gallatin Bank Building , from April 1930 until May 1930 when it

1056-431: The firm, having overriding material influence over the held company's operations, even if no formal full takeover has been enacted. Once a full takeover or purchase is enacted, the held company is seen to have ceased to operate as an independent entity but to have become a tending subsidiary of the purchasing company, which, in turn, becomes the parent company of the subsidiary. (A holding below 50% could be sufficient to give

1100-458: The first body) is a subsidiary of another body corporate if, and only if: Toronto-based lawyer Michael Finley has stated, "The emerging trend that has seen international plaintiffs permitted to proceed with claims against Canadian parent companies for the allegedly wrongful activity of their foreign subsidiaries means that the corporate veil is no longer a silver bullet to the heart of a plaintiff's case." The parent subsidiary company relationship

1144-605: The five largest bank holding companies in the finance sector, as of December 2013 , based on total assets. The Public Utility Holding Company Act of 1935 caused many energy companies to divest their subsidiary businesses. Between 1938 and 1958 the number of holding companies declined from 216 to 18. An energy law passed in 2005 removed the 1935 requirements, and has led to mergers and holding company formation among power marketing and power brokering companies. In US broadcasting , many major media conglomerates have purchased smaller broadcasters outright, but have not changed

1188-455: The following requirements are met: A parent company is a company that owns enough voting power in another firm (or subsidiary ) to control management and operations by influencing or electing its board of directors . The definition of a parent company differs from jurisdiction to jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. When an existing company establishes

1232-557: The lord of the manor of Gardiners Island (descendants of Lion Gardiner ). Along with his brother and Nathaniel Gardiner, he became a partner in Gardiner & Thompson, a New York City import firm trading in the West Indies . From 1813 on, he was a director of the Bank of the Manhattan Company . The first peak of the transatlantic company "Black Ball Line" began in 1820 with packet-ships voyages as per schedule. The company

1276-530: The main interest of the company was not in the supply of water, but rather in becoming a part of the banking industry in New York. At that time, the banking industry was monopolized by Alexander Hamilton's Bank of New York and the New York branch of the First Bank of the United States . "To circumvent the opposition of Hamilton to the establishment of a bank," and following an epidemic of yellow fever in

1320-400: The new corporation was held by International Acceptance and the Bank of the Manhattan Company. In December 1929, the name Bank of the Manhattan Company was abandoned and the firm was transformed into a holding corporation under the name Manhattan Company while also increasing its capital to $ 40,000,000 to allow for further acquisitions. The new holding company owned the entire capital stock of

1364-432: The same capital, $ 56,816,466. For some time the officers and directors of the Manhattan Company group have recognized that public opinion no longer favors the affiliation of a banking institution with other companies, and that conditions have so changed since 1929 that many of the advantages which at that time were inherent in the affiliation of various companies through a holding company have disappeared. By March 31, 1938,

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1408-405: The stock of the International Acceptance Bank, Inc. After completion, J. Stewart Baker remained president of the Bank of the Manhattan Company and became vice chairman of the board of International Acceptance. Warburg became associate chairman of the board of the Bank of Manhattan and F. Abott Goodhue remained as president of International Acceptance and became a member of the board of the Bank of

1452-499: The usual taxes on dividends, as they are legitimate and ordinary dividends to these shareholders. Sometimes, a company intended to be a pure holding company identifies itself as such by adding "Holding" or "Holdings" to its name. The parent company–subsidiary company relationship is defined by Part 1.2, Division 6, Section 46 of the Corporations Act 2001 (Cth) , which states: A body corporate (in this section called

1496-407: The various banking institutions which it controlled. The New York Title and Mortgage Company was distributed to shareholders through a holding company, and the International Acceptance Bank, Inc. was merged into the Bank of Manhattan Trust Company, with that entity then being absorbed by the Manhattan Company. The banking business was then continued under the name Bank of the Manhattan Company and had

1540-642: Was acquired by Chemical Bank , which retained the Chase name, to form what was then the largest bank holding company in the United States. In December 2000, the bank acquired J.P. Morgan & Co. to form JPMorgan Chase & Co . Standard Chartered Bank (Hong Kong) Limited continues (as of August 2020) to issue a credit card by the name of Manhattan, descending from its acquisition of the retail banking business in Hong Kong of Chase Manhattan in 2000. Notes Sources Holding company A holding company

1584-861: Was again succeeded by his son. In 1928, the Company increased its capital from $ 12,500,000 to $ 15,000,000 in connection with its acquisition of the Flushing National Bank , the Bayside National Bank , the Queens-Bellaire Bank , and the First National Bank of Whitestone . Later that year, it again increased its capital to $ 16,000,000 when it acquired the Bronx Borough Bank , and the First National Bank of Brooklyn . The acquisitions led to

1628-534: Was appointed collector of direct taxes and duties by President James Madison until that role was abolished in 1819. In 1820, President James Monroe appointed Jonathan Thompson Collector of the Port of New York . He held this office until 1829, when he was removed by President Andrew Jackson and replaced by Samuel Swartwout (later known for his role in the Swartwout-Hoyt scandal ). On June 4, 1796, he

1672-480: Was appointed president of the company. He was succeeded by Maltby Gelston in 1829. Gelston, a former member of the New York State Assembly , was the son of Collector David Gelston and the father of Mary Gelston, who married Henry Rogers Winthrop (father of Buchanan Winthrop ). In 1847, Caleb O. Halsted , a cloth merchant from Elizabeth, New Jersey , was made president of the bank. Halsted succeeded Jonathan Thompson , who had been made president in 1840. Before he

1716-517: Was elected successor chairman of the board of the Manhattan Company, Warburg's son James succeeded to Baker's vice chairman role (after recently becoming president of the International Acceptance Bank) and Goodhue was elected successor chairman of the International Acceptance Bank. In October 1932, the directors of the Manhattan Company restored the company to its old status as a bank, absorbing or distributing to shareholders

1760-471: Was founded by Jeremia Thompson, Francis Thompson and others and one packet-sailing ships of the "Black Ball Line" had name "James Monroe" , - named in honor of President James Monroe . From March 1840 until his death, he was President of the Bank of the Manhattan Company . For ten consecutive years, he was the chairman of the Democratic-Republican general committee. In 1813, he

1804-474: Was later sold to Cumulus Media ). In determining caps to prevent excessive concentration of media ownership , all of these are attributed to the parent company, as are leased stations , as a matter of broadcast regulation . In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code . A corporation is a personal holding company if both of

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1848-587: Was president, Thompson had served nine years as the Collector of the Port of New York having been appointed by President James Monroe and also serving under John Quincy Adams . In 1853, the Manhattan Company became one of the original 52 members of the New York Clearing House Association. In 1860, the board of directors promoted James M. Morrison as president of the bank to succeed Halsted. Morrison, who had begun working for

1892-502: Was surpassed by the Chrysler Building . In 1927, after thirty-four years as president, and an increase from one branch to a network with forty-eight branches and an increase in deposits to $ 300,000,000, Baker turned the presidency and a considerable stock ownership over to his son, J. Stewart Baker , who had just turned thirty-four. The elder Baker served as chairman of the board until 1932 when he became honorary chairman and

1936-474: Was the danger of raw sewage mixing with the water. After a multitude of cholera epidemics, a water system was finally established with the construction between 1837 and 1842 of the Croton Aqueduct . On April 17, 1799, the Manhattan Company appointed a committee "to consider the most proper means of employing the capital of the Company" and elected to open an office of discount and deposit. The "Bank" of

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