k.

Corporate banking in New York began with the organization of the Bank of
New York by Alexander Hamilton in 1784, which received its charter in
1792. For fifteen years this bank, together with the New York branch of
the first Bank of the United States, were the only banks doing business
in either the City or State of New York. With Hamilton and the Federals
in control of the Legislature, new bank charters were unobtainable. This
monopoly of banking facilities in the City and State was of great
strategic value to the political party in control, and naturally aroused
jealousy and resentment among the members of the opposition, whose
leader was Aaron Burr.

[Illustration: EXCERPT FROM CHARTER]

In 1798 New York City suffered from a severe yellow fever epidemic,
which was attributed to an inadequate and inferior water supply. Upon
the assembling of the Legislature in 1799, an association of
individuals, among whom Aaron Burr was the moving spirit, applied for a
charter for the purpose of "supplying the City of New York with pure and
wholesome water." With a capital of $2,000,000, the project was an
ambitious one for those days, and, as there was considerable uncertainty
about the probable cost of the water system, a clause was inserted in
the charter, permitting the Company to employ all surplus capital in the
purchase of public or other stock or in any other monied transactions or
operations, not inconsistent with the constitution and laws of New York
or of the United States.

A great effort was made to defeat the charter on account of this clause
granting the Company banking privileges. But the necessity for a proper
water system, which could be procured only by the organization of a
responsible company with large capital, carried it through the
Legislature and it received the Governor's signature.

[Illustration: FORM OF EARLY STOCK CERTIFICATE]

The Bill was passed April 2d, 1799, and by April 22d books were opened
for public subscription to the $2,000,000 Capital Stock of the Manhattan
Company, the par value of which was $50. These original books are still
in the possession of the Company, and contain the signatures of many of
the prominent men of the time. By May 15th the entire amount had been
subscribed by several thousand persons--the City of New York having
taken 2,000 of the shares. The Charter provided that the Recorder of the
city should be _ex-officio_ a director of the Company, a provision which
was