ABSTRACT
This chapter examines what were the developments in the 1890's which guided the trust company movement into the mainstream of the commercial banking system. It also examines the three principal developments namely: the excessive formation of trust companies in the 1898-1899 period and the reaction thereto, the assimilation of trust companies into the American Bankers' Association (ABA), and the extent of interlocking directors. By the end of the nineteenth century, the trust company movement was invited to join the ABA. In 1896, through a special "Trust Company Section", the ABA became the trade association for the trust companies as it had been for many years for the commercial banks. Following the company's suspension, the receiver discovered that virtually all of the loans outstanding were syndicate loans, involving underwriting deals with indefinite maturities. By 1900, the success of the trust company movement in New York City was established and recognized, admiringly, by the community.
