The Bank of The Manhattan Co. had an
unusual beginning. Burr led a group of
New Yorkers, including Hamilton, in
obtaining a state charter for a company
to supply fresh water to the residents
of Lower Manhattan. At Burr’s initiative,
the charter included a provision
allowing the company to employ its
excess capital in any activity “not
inconsistent with the Constitution and
laws of the United States.” Burr then
used that provision to start a bank.
That seems like a deliberate end-run round the company registration system from the get-go, rather than an existing operating company using it's capital to diversify.
