USA > Connecticut > New Haven County > Waterbury > The town and city of Waterbury, Connecticut, from the aboriginal period to the year eighteen hundred and ninety-five. Volume II > Part 18
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On January 9, 1893, the Waterbury post office, in common with all free delivery offices, was brought under civil service rules. Presi- dent Lyman of the Civil Service commission visited the office on February 27, 1893, and organized a board of examiners, consisting of Frank K. Woolworth, Julia A. Fitzpatrick and Charles W. Hotch- kiss. The first meeting of the board for conducting civil service examinations was held on May 6, 1893.
The receipts of the Waterbury post office from March, 1886, to March, 1893, show an increase of ninety-five per cent. For the year ending March 31, 1886, they were $29,479; for the year ending March 31, 1890, $41,963; for the next year, $46,468; for the next, $51,587, for the next, $56,047, and for the year ending March 31, 1894, $55,480.
Daniel E. Fitzpatrick, who had been assistant postmaster since 1887, was appointed to succeed Colonel Doherty on June 1, 1894, and entered upon the duties of his office immediately. Stamp agencies were established September 1, 1894.
ELISHA LEAVENWORTH.
Elisha Leavenworth, youngest child of Dr. Frederick and Fanny (Johnson) Leavenworth, was born in Waterbury March 15, 1814. He
172
HISTORY OF WATERBURY.
was educated in the schools of the town and with Deacon Simeon Hart of Farmington. At the age of seventeen, he entered the drug store of Dr. Lewis Hotchkiss of New Haven. After remaining there about two years, he became a partner in the mercantile firm of A. C. Bull & Co. of Milford. Later he purchased Mr. Bull's interest, and remained in Milford until 1836. He then returned to Waterbury, and entered into partnership with his father in the drug business, under the firm name of F. Leavenworth & Son. In 1850 he took Nathan Dikeman, Jr., of Northampton, as a partner, and the firm became Leavenworth & Dikeman, and so remained until its dissolution in 1890. This firm was the direct business descendant of Abner Johnson, who began the sale of drugs in Waterbury about 1770. Its history thus covers a continuous period of 120 years. Soon after the partnership with Mr. Dikeman was formed Mr. Leavenworth ceased to take an active part in the busi- ness, and devoted himself to his other interests.
On his father's death, in 1840, he succeeded him as postmaster, and held the office until 1849. He held the same position again, from 1853 to 1861. He represented the town in the legislatures of 1863, 1864, 1867, 1868. In 1875 he was elected judge of probate, and again in 1877 and 1878. He was for many years the acknowledged manager of the Democratic party in the town. He was the largest contributor to the Industrial School building, having given $10,000 for this purpose. Leavenworth hall was named by the managers in recognition of the gift. He was the first president of the Dime Savings bank.
In 1845, he married Cynthia, daughter of Benjamin Fuller. She and their infant child died in 1854.
CHAPTER XII.
EARLY BANKING IN CONNECTICUT -LATE BEGINNING IN WATERBURY- CHARTER IN 1848-BENEFITS TO LOCAL BUSINESS - SAVINGS BANKS-CITIZENS BANK-PRIVATE BANKING COMPANIES-LATER BANKS - BUILDING ASSOCIATIONS- BEGINNINGS AND GROWTH OF INSURANCE-THE CONNECTICUT INDEMNITY ASSOCIATION-STEAM BOILER INSURANCE -BOARD OF FIRE UNDERWRITERS-BANKERS AND INSURANCE MEN.
P REVIOUS to the establishment of the Waterbury bank, in 1848, the banking business of Waterbury was transacted in
New Haven, Hartford, Litchfield, Meriden and Middletown. Deposits were sent by stage-drivers and post-riders and by chance opportunities that offered from time to time, but there were prob- ably not a dozen open bank accounts. There were no expresses, and individuals were expected to do errands for their neighbors. Discounts were arranged for by mail or by personal attendance at the bank, and the banking business -- arranging for loans and re- newing notes-consumed no small part of the time and energy of our earlier manufacturers.
There were no regular monthly or weekly payments of wages in the factories. A running account was kept with each workman. Usually there was a store connected with the factory where the workman bought what he needed, the purchase being entered on a pass-book, and when he wanted money he asked for it. Accounts were settled once or twice a year, but not usually closed. The balance, whichever way it might stand, was carried to a new account.
Litchfield and Meriden had each a bank a number of years before one was established here. In Waterbury every dollar was invested in business and a large amount borrowed from outside. There was no capital to spare for banking, and the business of the place had not hitherto attained that assured success which strongly attracted outside capital. It had, however, within a few years made rapid strides, and the character of its business men was very high, and in 1848 it was felt that the time had come when such an enterprise might be undertaken with hope of success.
The matter of establishing a bank even no longer ago than 1848 was very different from what it is now. Bank charters were then
BANK STREET IN 1890 ; WATERBURY NATIONAL BANK, CORNER OF GRAND STREET.
FFEFFEEFER
175
BANKING AND INSURANCE.
granted by legislature. An application for a charter was made to the legislature by petition. This was referred to a committee who appointed a day on which the application was to be heard. The applicants were expected to satisfy the committee, first, that there was need of a bank at the place where it was proposed to establish it; secondly, that there was good reason to suppose the stock would be taken; and thirdly, that the management was to go into the hands of respectable and responsible citizens who would administer its affairs honestly, safely and judiciously. If all these points were established the committee reported favorably on granting the char- ter. But the committee or the legislature might impose conditions. Two banks in New Haven were required, as a condition to their charters, to subscribe, one of them $200,000 and the other $100,000, to the Farmington canal. This amount proved to be a total loss. Both the state and the school fund had a right to subscribe for stock, to receive dividends, and to be represented on the board of directors, and, if they saw fit, to withdraw the stock on giving six months' notice. Prior to the war the state was a large owner of bank stock, which was disposed of to meet war expenses. At one time the law required any bank on being chartered to pay into the state treasury two per cent as a bonus. Schools and other charities frequently applied to the legislature for aid, and it was a customary way of granting aid to require the amount to be paid as a bonus for a charter by some bank. When in 1851 the stock of the Waterbury bank was increased, it was required to pay $2250 to the Waterbury High school to be applied to the reduction of the debt incurred in the erection of their buildings. At the time of granting the char- ter, commissioners were appointed to receive subscriptions and to apportion the stock. Nathaniel B. Smith of Woodbury and Ralph D. Smith of Guilford were the commissioners for the Waterbury bank. The capital by the charter was $200,000, with the privilege of increasing it to $350,000. The commissioners were to receive subscriptions on the second Tuesday of August, 1848, and the undertaking proved to be popular, for although the amount called for was but $200,000, the sum of $240,150 was subscribed. The 4000 shares of stock were distributed among 140 subscribers as follows :
Towns.
Subsc.
Shares.
Subsc.
Shares.
Waterbury,
62
2305
Towns. Southington,
.
3
90
Watertown,
24
390
Huntington,
2
40
Plymouth,
15
268
Middletown,
.
2
20
Cheshire,
II
407
Guilford,
I
20
Southbury, .
7
150
Woodbury,
I
20
Middlebury,
7
98
Prospect,
I
IO
New Haven,
3
140
Trumbull,
.
I
42
176
HISTORY OF WATERBURY.
The stockholders met to organize on September 6, and Bennet Bronson, Aaron Benedict, Green Kendrick, Elizur E. Prichard, Philo Brown, Scovill M. Buckingham, Norton J. Buel and William R. Hitchcock were elected directors. None of this first board are now living, and of the 136 subscribers all but eleven are known (in 1894) to be dead. At the directors' meeting, the same day, Bennet Bronson was elected president, and on December 4, Dyer Ames, Jr., was elected cashier. Mr. Ames was at this time cashier of the Mid- dletown bank.
On July 23, 1850, the additional $150,000 provided for by the charter was taken up, and in the spring of 1851 the capital was fur. ther increased to $500,000. On December 11, 1850, Judge Bronson died, and John P. Elton was elected president on December 17. In 1852 Mr. Ames resigned and Augustus S. Chase, who had been book-keeper since 1850, and was also assistant cashier from July, 1851 (during a temporary absence of Mr. Ames), was elected cashier. On the death of Mr. Elton in 1864 Mr. Chase became president, and Augustus M. Blakesley, who had been teller since February, 1852, became cashier. These positions they still hold (1894).
Under the earlier system, the powers of banks were in some respects much greater than under the present. They could issue bills for two or three times the amount of their capital, and there was no security for these except the capital and the character and business capacity of the managers. The Suffolk system of redemp- tions or exchanges-by which each bank paid out only its own bills, and sent all bills received to the Suffolk bank of Boston, every week, to be redeemed-was a test of soundness, but nothing could have been more ingeniously devised to aggravate a panic. It is impossible for the present generation to appreciate the improve- ment that has been wrought by our present system in the whole business of banking and exchange. Each bank designed, ordered and kept its own plates, and looked after its own printing. The bills were not made payable to bearer and dated and numbered by machinery as now, but to some individual as bearer, and the name of this person and the number and date were filled in with a pen. The price paid for filling-in was $1.25 for 100 sheets (400 bills), and this work was usually done outside of the bank. Many of the early bills were filled out by Abram Ives, who although one of the richest men in town was very glad to write the names and dates and numbers on 400 bills for $1.25. I suppose our young men of the present time would rather play tennis for nothing than be engaged in such unremunerative labor.
177
BANKING AND INSURANCE.
The establishment of the Waterbury bank was of great benefit to the business of the town. It increased the available capital, it saved a great amount of travel and correspondence and it made possible better methods of business. The manufacturers soon gave up their stores and began to pay their workmen at stated intervals, usually of one month. The Waterbury bank became a National bank on February 2, 1865.
In 1850 the Waterbury Savings bank was established. Frederick J. Kingsbury, who was a member of the legislature that year, obtained the charter. He was appointed treasurer, and John P. Elton president. Mr. Kingsbury has held the office of treasurer since that time. Nelson Hall, Samuel W. Hall, Willard Spencer, Charles B. Merriman, Nathan Dikeman and Edward L. Frisbie have succes- sively held the office of president. When the bank was established, solemn people shook their heads; the lighter-minded laughed; some of the more sanguine said we might live to see $100,000 in deposits gathered there, although they probably did not believe what they said. The deposits now amount to $3,400,000 and the Dime Savings bank has about $2,500,000 more. Nearly the whole of this money comes from the earnings of the working people. The savings bank has been a very great benefit to them, and there are hundreds of com- fortable homes to-day that owe their existence to these institutions.
In 1849 and 1850, and for a few years following, there was a sort of craze for what were called Savings bank and Building associa- tions. They sold their money to the highest bidder, getting enor- mous interest; but this fact tempted them to take rather poor security. The men who agreed to pay the high rates were unable to do so, and the result of it was much distress and considerable loss. We had but two of these institutions in Waterbury. The law under which they were created was repealed in 1858, and they were all wound up as fast as they could be without sacrifice. The Waterbury institutions came out as well as most of them, but there was CITIZENS' NATIONAL BANK, 1890, CORNER OF NORTH AND WEST MAIN STREETS. serious loss among the poorer class of borrowers, from being compelled to give up places on which they had paid considerable sums because they could not sustain the heavy rates of interest. (See page 179.)
12
178
HISTORY OF WATERBURY.
In 1853 the Citizens' bank was established, under a general banking law at that time in force, with a capital of $100,000,-sub- sequently increased to $300,000. Abram Ives was the first presi- dent, and F. J. Kingsbury the first cashier. Mr. Ives's health soon failed, and S. W. Hall became president. Mr. Hall retired after a few years, and Mr. Kingsbury became president, and F. L. Curtiss (who had been teller since 1853) cashier. They still (in 1894) retain these offices. It became a National bank in 1865.
In 1855 a charter was obtained for a "Mattatuck Bank," but it was never organized, and in 1858 the charter was repealed.
In 1860 John P. Elton established a private banking house, called at first the Elton Trust company, and later the Elton Banking com- pany. This was organized under the joint-stock law, and was suc- cessfully carried on, after Mr. Elton's death, by his son-in-law, C. N. Wayland. But on Mr. Wayland's going abroad, in 1877, the busi- ness was discontinued.
The private banking house of Brown & Parsons (William Brown, Robert K. Brown and Guernsey S. Parsons) now Holmes & Parsons (Israel Holmes and G. S. Parsons), has taken the place of the Elton Banking company as the leading private bank.
A. F. Abbott, in 1871-'72, erected the building next north of the Waterbury National bank property on Bank street, and for a time did a banking business therein under the name of A. F. Abbott's Banking office. Meeting with losses at the time of the Jay Cooke failure in the fall of 1873, he discontinued banking proper and con- tinued in business as a dealer in investment securities and real estate.
The Dime Savings bank was incorporated in 1870. G. S. Parsons was its first treasurer, and still holds the position. The office of president has been held successively by Elisha Leavenworth, Henry C. Griggs, and Henry H. Peck.
The Manufacturers' National bank (David B. Hamilton, presi- dent, C. F. Mitchell, cashier, capital $100,000) was organized under the United States banking law in 1880.
The Fourth National Bank of Waterbury (D. S. Plume, presi- dent, Burton G. Bryan, cashier, capital $100,000) was organized under the United States banking law in 1887.
The West Side Savings Bank was chartered in 1889, and has a deposit of $35,000; J. Richard Smith is president and B. G. Bryan treasurer.
The entire banking capital of Waterbury, and surplus, is about $1,350,000, and the deposits, including Savings banks, from $6,000,000 to $7,000,000.
I79
BANKING AND INSURANCE.
SAVINGS BANK AND BUILDING ASSOCIATIONS.
The Savings Bank and Building association of Waterbury was organized April 2, 1852, under a general act of the General Assem- bly passed at the May session, 1850. Its first board of management was composed of George W. Cooke, president; Henry J. Johnson, vice president; Leonard Bronson, secretary and treasurer; Edward Scovill, George W. Denney, Samuel B. Hall, David S. Law, John W. Webster, Charles Griggs, Wales B. Lounsbury, directors. There were more than a hundred subscribers to its shares at the first meeting, and about a thousand during the term of its existence.
In 1853 Leonard Bronson was elected president and Samuel C. Woodward secretary and treasurer. Israel Holmes (2d) became sec- retary and treasurer in 1854, and, removing to England, was suc- ceeded in 1856 by Anson F. Abbott, who continued in that posi- tion till the closing of the business in 1863. George W. Benedict was president from 1857 to 1861, and Hobart V. Welton in 1862 and 1863.
The plan of the association, as then conducted, proved to be unfavorable to many of those whom the law was intended to ben- efit, in that it led to an excessive "booming" of land values, the speculative erection of too many cheaply built houses and the incurring of too large obligations by people of small and uncertain income. Subsequent action of the legislature made it unprofitable to continue the business, and the association went out of existence. Some poor people lost what they had paid on their homes, but all depositors of the Waterbury association were repaid, and the stockholders received back the amount of their investments with six per cent interest, while those who held their shares till the final closing realized an additional profit.
The City Savings Bank and Building association, with the man- agement of which Nelson J. and Franklin L. Welton were closely identified, was organized in 1853 and had a history similar to that of the Waterbury association, though not attaining to so large an amount of business. Its office was in Baldwin's block, then newly erected.
Other building associations, located in New Haven, Milford and Woodbury, loaned considerable money in Waterbury, and had occa- sion to foreclose a good deal of cheap property.
A "Co-operative Building Bank " has been established in Water- bury since 1890, also a branch of the "Co-operative Savings Society of New York."
.
180
HISTORY OF WATERBURY.
ISRAEL HOLMES (2ND).
Israel Holmes, eldest son of Samuel Judd and Lucina (Todd) Holmes, was born in Waterbury, August 10, 1823. He received the principal part of his education in the old stone academy, and at a classical and English school in East Haven, taught by Joseph H. Rogers. At the age of nineteen he entered the employ of the Ben- edict & Burnham Manufacturing company as clerk in their store, a position which he held for about twelve years. At the end of this period a joint stock company was formed to carry on and enlarge the business of the store of W. & A. Brown, and Mr. Holmes became the manager and a principal owner. After a few years, his health having become impaired, he sold out his interest in Brown, Holmes & Co., and in the spring of 1859 went to England as agent of the Scovill Manufacturing company and the Wheeler & Wilson Sewing Machine company for the sale of their goods in that country.
There is nothing perhaps which illustrates more strikingly the remarkable industrial progress of Waterbury than the business and experience of the two Israel Holmeses in England. The first of these men made three voyages to the greatest centre of English manufactures, to investigate methods and obtain men and machin- ery for establishing the same branches of manufacture in his native state. Just twenty-five years after the uncle left Liverpool clandes- tinely and pursued by the officers of the English law, the nephew, representing in part the same companies, entered the same port, carrying back to England the superior products of American man- ufacture and American inventive skill.
The war of the rebellion occurred during Mr. Holmes's residence in England, and for three years he had to meet daily with men whose feeling against the North and in favor of the South was appar- ently almost as high as if the war was being waged on English sóil. In the frequent word-battles which ensued, the interests of busi- ness were a strong inducement to Mr. Holmes to keep his patriotic impulses under control, but the feeling of the English partisans of the South was so strong and Mr. Holmes's vindication of his coun- try so firm that on more than one occasion he barely escaped the necessity of defending himself against personal assault. After a successful business career in England of twelve years, during which he made many warm friends, Mr. Holmes returned to Water- bury in 1871.
In 1872, on land which had descended to him from his great- grandfather, Captain Samuel Judd, he built the house at Westwood
won of Saiquick Judd and Lucina (Todd) wwwhury, August 10, 1823. He received the en ation in the old stone academy, and at a TO school in East Haven, taught by Joseph H. Mlb nineteen he entered the employ of the Ben- busco Mwstacturing company as clerk in their store, hier wwwtake Feld for about twelve years. At the end of this Mtinha jool sinck company var seemed to carry on and enlarge For Business of the story of W & became ihre manager ind of
health bruvino hacago
Holmes & Co av 0
of The Foorill Mi
Browh, and Mr. Holmes After a few years, his Mis urterest in Brown, lo EngMnd as agent Wheeler & Wilden wir goods in that
Po we somning perhaps with in
Mmarkable industrial progress of War reslas I Experience of the two Immol toparse in England The Most of these men made three voyagey to the greatest centre of English Manufactures, to investigate methods and obtain men and machin- ery for establishing the same branches of manufacture in his native state. Just twenty-five years after the uncle left Liverpool clandes- Berly ghil purened by the officers of the English law, the nephew, norskbe int part flu same companies, entered the same port, tou Ted in wads the superior products of American man-
The suất of the Pobe fino questered during Mr Holmes's residence in Reglawi mod wa three wars he had to meet daily will nien wildce feeling agotos th March and in favor of the Sorti smagfor- valle Abend as logk auff the war was being waned o meginth soil. TEM froment word-batilos which ensued ine imrerests of misi-
wurderumini wal the feeling of the English partisans of le Batt swkosusay sod Mr Holmes s vindication of his eoun- 115 en arm Low income sam one occasion he barely escaped the necessity of Wiending bim W against personal assault. After a successful business cover of England of twelve years, during which he made many carmy fronte, Mr. Holmes returned to Water- Wiry in 1871.
In 1872, on land which had descended to him from his grent- grandfather, Captain Samuel Judd, he built the house at Westwood
Israel Holmes
18I
BANKING AND INSURANCE.
where he has since resided. In 1874, in connection with Guernsey S. Parsons, he established the banking house of Holmes & Parsons, which succeeded Brown & Parsons, and is one of the prominent banking establishments of the city. Mr. Holmes is the owner of considerable real estate, and is a director in several manufacturing establishments. Before going to England he had twice filled the office of town clerk, and in 1879 he was elected by the Republican party to represent Waterbury in the legislature. He is a member of the Second Congregational church, and has always enjoyed the con- fidence and esteem of his fellow citizens.
In 1848 Mr. Holmes married Cornelia, daughter of the Hon. Israel Coe. Of his family of six sons and one daughter, the eldest; Samuel Judd, died in his third year, and Frederick N. died on April 3, 1886, at the age of twenty-one.
A. M. BLAKESLEY.
Augustus Milo Blakesley, son of Milo and Dorcas (Hine) Blakes- ley, was born in Terryville, March 4, 1830. He was educated in the schools of Terryville, and worked on a farm until he was sixteen years of age. Soon afterward he came to Waterbury and was employed by J. M. L. & W. H. Scovill. He has been in the Water- bury bank since 1852, first as teller and afterwards as cashier. He still holds the latter position and is also president of the American Pin company, having been elected to succeed T. I. Driggs.
He is an officer of the Second Congregational church, in the ser- vice of which he has taken an active part for many years. He is an accomplished musician, and has been chorister of the church since 1852.
Mr. Blakesley married September 5, 1853, Margaret Johnson of Washington, Penn., who died July 12, 1885. Their children are Albert Johnson (of whom a sketch is given in the chapter on music), and Jennie Elizabeth, who married Dr. John M. Benedict.
G. S. PARSONS.
Guernsey S. Parsons was born in Durham, December 4, 1834. He came to Waterbury as a young man, and at first held the posi- tion of clerk in the Waterbury bank. Later Mr. Parsons engaged in manufacturing for a short time, then, in connection with his father-in-law, William Brown, established the banking house of Brown & Parsons, which became afterwards Holmes & Parsons. He has been treasurer of the Dime Savings bank since its organization, and has held various public offices, including that of judge of pro- bate. During 1880 and 1881 he was mayor of the city.
182
HISTORY OF WATERBURY.
Mr. Parsons married Eliza, the daughter of William Brown, October 14, 1858. They have one daughter, Sarah, now Mrs. William B. Merriman.
F. L. CURTISS.
Franklin Luther Curtiss, the son of Simeon and Hannah (Bron- son) Curtiss, was born in Southbury (Southford society), January 19, 1835. His education was carried on in the Southford district school and the school of Reuben Curtiss, until 1851, when he came to Waterbury for the purpose of attending the High school, of which Charles Fabrique was then principal.
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