USA > Iowa > Polk County > Des Moines > Des Moines, the pioneer of municipal progress and reform of the middle West, together with the history of Polk County, Iowa, the largest, most populous and most prosperous county in the state of Iowa; Volume I > Part 72
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The Iowa State Traveling Men's Association, the oldest organization of its kind in America, was organized in Des Moines, November 27, 1880, when the following officers were elected: O. W. Hazard, president; T. M. Langan, vice president ; I. E. Tone, treasurer ; and J. P. Bushnell, secretary. At the first annual meeting, December 3, 1881, the treasurer's report showed a balance on hand of $27.75 with no benefits paid, while at the last annual meeting, January 21, 19II, the secretary-treasurer's report showed a membership of about 45,000, and a balance (cash and bonds) of $142,412.57 and 2,540 claims paid for the year 1910, amounting to $297.663.34 and a grand total of benefits paid, since 1880, of $2,331,269.09. Mr. Hazard was secretary in 1883-84, and was suc- ceeded by W. A. Work, in 1885. He was succeeded by S. F. Ames in '89, and he in '91 by F. E. Haley. On August 26, 1905, the board of directors elected L. C. Deets secretary-treasurer to fill the unexpired term. In January, 1906, he was elected by the association. He was twice re-elected. In his last annual report, read at the annual meeting, January 21, 1911, there was a total mem- bership of 40,556. In 1911, Mr. Deets was succeeded by A. W. Rader, the present secretary-treasurer. In his first annual report which will be read at the next annual election, January 20, 1912, Mr. Rader expects to show more than 45,000 members in I. S. T. M. A. The growth of accident insurance in Des Moines, as shown in the statements of the assessment accident companies, is a most gratifying feature of the local situation ..
The Town Mutual Dwelling House Insurance Association is the largest mutual organization in the world that limits its risks to dwellings in cities and towns.
W. D. Skinner, secretary of the Hawkeye Insurance Company, entered the service of the company as a clerk in 1877, and has been identified with the company ever since.
The Ancient Order of United Workmen was organized in Iowa in 1875, marking the entrance of home fraternal organizations into Des Moines. It was the only fraternal organization in the Capital City until 1890.
The Iowa Tornado Insurance Company, organized in 1884, and until 1892 was located in West Union. Since its removal to Des Moines, it has had a phenomenal growth. From first to last, the company has had but one secretary, J. B. Herriman. A few years ago there was a well-organized attempt to oust Mr. Herriman, but the friends of the secretary rallied to his support and he was re-elected by a large majority.
At a banquet held by the Iowa State Traveling Men's Association in Des Moines in December, 1891, it was reported that from 1880, the date of its organi- zation, down to 1891, not a single death had occurred among its members -- and at the time there were 4,758 of them !
The Brotherhood of 'American Yeomen has a $50,000 home on the hill on Fifth and Park streets. This flourishing association was organized in Bancroft, Iowa, in 1897.
On the evening of October 17, 1900, F. M. Hubbell, then president of the Equitable Life Insurance Company of Iowa, entertained the officers and at- taches of that company at dinner at Terrace Hill. The dinner was especially in honor of Cyrus Kirk, then vice-president, now president of the Equitable, who had been in connection with the company for more than a quarter-century. A solid silver coffee and tea set was presented to Mr. Kirk by Secretary J. C. Cummins, with remarks indicative of the love and esteem in which he was held and of the high estimate placed upon his business capacity.
Capt. Charles W. Fracker, a pioneer insurance man of Des Moines, was the recipient of a banquet at the Savery on the evening of January 13, 1903. The Captain was 73 years old, and had been State agent for the Springfield Fire
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CITY OF DES MOINES AND POLK COUNTY
and Marine Insurance Company for a quarter-century or longer. He was the recipient of several presents. One of these, a loving cup, went the rounds of the assemblage.
H. C. Alverson, a pioneer insurance man at the State Capital, after eight years' residence in Erie, Pa., returned to Des Moines in January, 1903, to take the secretaryship of the National Masonic Association.
All the great life insurance agencies of the East have general agencies at Iowa's Capital. The principal Fire Insurance companies of America and Europe also have agencies in Des Moines.
BOOK III. DES MOINES.
PART IX.
BANKS AND BANKERS.
ENNTENETENE
TENETENET
6
C
104
STATE OF
Branch of this
STATE BANK OFIOWA
1
TEN DOLLARS
HOYBLOWE
NewYork.
PRES?
STENNTEN
GENE TENKTENE American Bank Note Company,
NTENNTENA
TENNTENETE
TENNTEI
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BANK BILL, STATE BANK OF IOWA
CHAPTER I.
PIONEER BANKS AND BANKERS AND THEIR SUCCESSORS.
!
The genealogy of local banks and banking starts with 1854, and with B. F. Allen's private bank on Second street. The business of handling land script and warrants and loaning money-at "a living rate"-was at first conducted in small and even cramped quarters with uninviting surroundings. Soon Mr. Allen erected a three-story building on the corner of Fourth and Court-the present Register and Leader corner. The new bank was then regarded as a marvel of elegance and completeness. Its fire and burglar-alarm vault was the marvel of its day.
Later in '54, a second bank was founded by Hoyt Sherman & Company, -- the company consisting of P. M. Casady and R. L. Tidrick. In '56 the bank was removed from Third street, between Walnut and Court, to the new Sherman block, the pride of old Fort Des Moines. In '59, this private institution became the State Bank of Iowa. In '63, it was reorganized as a national bank, with B. F. Allen, president and F. R. West, cashier. In two or three years, it was removed to the old Opera House block, corner of Fourth and Walnut. In 1875, occurred the failure of its president.1 After the failure the bank was re- organized with James Callanan, president. It later became a private bank under the firm name of F. R. West & Sons. But the burden of the first failure was upon the new bank and in '77 it went into the hands of a receiver who closed it out.
The third bank was organized in 1856, by Greene, Weare & Rice. The two first-named were Cedar Rapids capitalists, the third was Byron Rice of Des Moines. The firm occupied the west room in the Exchange block. About the same time Macklot, Corbin & White started a bank just east of the one last named. The firm-name was soon changed to White & Smith and their bank was styled "The Des Moines." A. J. Stevens & Company came next-the "com- pany" being James Callanan and S. R. Ingham. Their bank was styled "The Bank of Iowa." It closed in 1858.
The Des Moines Branch of the State Bank of Iowa.
The constitution of 1857 provided that "the legislature might create corpora- tions with banking powers which before becoming valid should be approved by a majority of the electors at a general or special election, and that, subject to above, they might provide for the establishment of a state bank with branches founded on an actual specie basis; that the branches should be mutually responsible for one another's liabilities on all notes intended to circulate as money ; that every stockholder should be individually liable to its creditors for all of its liabilities, to an amount equal to the shares held by hm; that in case of insolvency the bill- holders should have preference over other creditors, and that the suspension of specie payments should never be permitted or sanctioned.2
"Under this constitutional provision," writes Major Hoyt Sherman, "the legislature passed a law March 20, 1858, which took effect July 29, 1858, after submission to a vote of the people, to incorporate the State Bank of Iowa. The statute limited the number of branches to thirty, . . and
1 The story of the B. F. Allen failure is told in another section of this chapter.
2 The history and functions of "The State Bank of Iowa" are given in detail by Major Sherman in the Annals of Iowa, v. 5, pp. 93-116.
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created a board of ten commissioners, to supervise the first organi- zation of the banks and branches ; and whenever, upon careful examination, they ascertained that five or more such branches were formed, and that their stock- holders, directors and officers were men of responsibility and integrity, the com- missioners certified the facts to the governor, who by public proclamation, an- nounced that the three directors named for the state, in the statute, with one di- rector selected by each branch, constituted the State Bank of Iowa, with full authority to exercise all the duties and privileges conferred upon it by the con- stitution and laws of the state."
The nine men chosen to act as commissioners to inaugurate the new state bank system, after several sessions, reported favorably on branches in Musca- tine, Iowa City, Des Moines, Dubuque, Oskaloosa, Keokuk and Davenport.
The Board of the new State Bank organized in Iowa City, October 27. 1858, with the following named directors: Phineas M. Casady, W. T. Smith, Samuel F. Miller, Samuel J. Kirkwood, Chester Weed, T. Whiting, Hiram Price, and, with Benjamin Lake and Hoyt Sherman state directors. It will thus be seen that the directorate of the State Bank included two prominent and influential capi- talists of Des Moines.
Besides the eight original branches, four others were later admitted, at Lyons, Burlington, Washington and Fort Madison. Later, one was established at Mc- Gregor and another at Council Bluffs. The last to be admitted was the Maquo- keta branch, early in 1864.
In the winter of 1864-5, the national banking law went into operation. The law heavily taxed the circulating notes of state banks and the desired effect soon followed. The Bank of Iowa, at a board meeting in Des Moines in February, 1865, took steps toward closing its affairs. One after another of its branches merged into the national banking system. The State Bank soon ceased to exist, and, to the credit of its directory, the discontinuance was effected without loss and with little or no inconvenience to the public.
It is interesting to note that in the showing of dividends declared by the sev- eral branches, in 1860, the Des Moines branch, of which B. F. Allen was presi- dent and Hoyt Sherman, cashier, annually declared two dividends of 7 per cent each, the highest dividend paid by any of the fifteen branches, except Os- kaloosa, Davenport and Keokuk. In 1859, the Des Moines branch showed as- sets as follows :
Safety fund, $3,666.65 ; specie, $23,798.58 ; notes of other banks, $4,201 ; due from other banks, $5,224.30; loans and discounts, $24,433-54; other items, $1,- 850.07.
Liabilities : capital, $25,000 ; circulation, $11,750; depositors, $25,440.37 ; other items, $983.77.
In 1865, the Des Moines branch reported a safety fund of $19,500.00 ; specie, $36,731.00; notes of other banks, $66,646.37; due from other banks, $4,735-34; loans and discounts, $173,894.19; U. S. and state bonds, $10,000.00 ; other items, $1,986.15; total resources, $313,493.05.
Liabilities : capital, $78.oco.00 ; circulation, $140,035.00 ; due other banks, $1,- 404.19; depositors, $83,369.55; other items, $10,684.31; total liabilities, $313,- 493.05.
The large influence of the two Des Moines directors, Messrs. Casady and Sherman, and the wise counsel of the president and secretary of the Des Moines branch, Messrs. Allen and Sherman, are not even implied in Major Sherman's valuable contribution to the history of the State Bank; but there are those still with us who freely testify to the high value placed by their associates upon their large experience and sound judgment.
The Tri-Weekly Citizen of January 12, 1858, announces the sale of the Bank of Nebraska, by Messrs. Allen, West and Sypher, of Des Moines, to a
LOWA LOAN & TRUST CO INCORPORATED 1872
IOWA LOAN AND TRUST BUILDING
CAPITAL CITY BANK BUILDING
NEW HOME OF THE DES MOINES NATIONAL BANK
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CITY OF DES MOINES AND POLK COUNTY
company residing in Omaha; also the proposed withdrawal and redemption of the bills of the bank as soon as circumstances would permit.
A sidelight upon the passing of the old currency system, or absence of sys- tem, and the inauguration of the new, is thrown by the Journal of January 27, 1858. Its editor, while thinking of the hard times and wondering where he could "raise" enough to meet his next payment, was invited to look in at B. F. Allen's bank. "Allen, flanked by West and Sherman, was busily engaged in feeding the flames with bills of the 'Nebraska Bank.'" On inquiry the wonder- ing editor found that the trio were consigning to the flames bills which on their face represented seventy thousand dollars, which bills had been in circulation in Des Moines and Polk county, but had been redeemed by the bank and. were thus permanently retired from circulation.
In 1858, the commencement of a new era locally, there were seven banking houses in Des Moines, as follows: B. F. Allen, Fourth and Court; Hoyt Sher- man & Company, Sherman Block; Cook, Sargent & Cook, Walnut, between Third and Fourth; White & Smith, Exchange Block; Greene, Weare & Rice, Exchange Block; Callanan & Ingham, Second street, and Leas & Harsh, Third street.
The First National Bank of Des Moines was organized in 1864, with J. B. Stewart, president; C. Mosier, cashier and F. C. D. McKay, F. W. Palmer, C. Mosier, J. B. Stewart and George W. Cleveland, directors. Two years later, Mr. Stewart sold his controlling interest to B. F. Allen, who consolidated it with his bank.
The Second National Bank was also organized in '64. G. M. Hippee was president and George W. Jones, cashier. Its directors were C. C. Nourse, I. Windle, G. M. Hippee, G. W. Jones, Dwight Klinck and George Childs. It, too, was later absorbed by Mr. Allen.
Coskery & Newell-later Coskery & Ulm, and later still, the Citizens' Bank- on the West side, was founded in 1869, and three years afterwards was merged into the Citizens' National Bank.
The Capital City Bank, on the East side, was Mr. Allen's next venture. It was organized in 1871, with B. F. Allen, president and A. L. West, cashier. In the crucial year, 1875, it was sold to William Christy, Isaac Brandt and others. But, the West failure still fresh in men's minds, a refusal on the part of the bank to cash two checks -- both overdrafts-started a run which reduced the de- posits from $9,000 to $4,000, and it was thought best to suspend. A reorganiza- tion was effected in 1878, when the present Capital City State Bank was or- ganized with A. W. Naylor, president; William Christy, cashier and A. W. Naylor, J. F. Cochran, W. A. Haskell, Ed. Wright, J. Hollingsworth, G. F. Walker, George Garver and George C. Baker, directors. From 1878 down to date "the Capital City" has prospered. It is now housed in a modern seven- story brick office-building which bears its name-the largest building on the East side. Its present officers are Henry Wagner, president; J. A. T. Hull, vice president; J. A. Mckinney, cashier; H. Wagner, W. L. Read, J. A. T. Hull, J. A. Mckinney, D. J. Van Liew, F. W. Craig, J. D. McGarraugh, direc- tors.
In January, 1872, Capt. I. N. Thomas, ex-county recorder, opened a private banking house on East Fifth and Walnut. Later he erected, and moved into a' building on the opposite corner. Financial difficulties soon compelled Captain Thomas to retire from business.
The Citizens' National Bank was organized in March, 1872, with ex-Gov- ernor Samuel Merrill, president ; John A. Elliott, vice-president and John W. Ulm, cashier. The bank long occupied the southwest corner of Fifth and Wal- nut streets, now the place of business of the Century Savings Bank. In 1901, after the Frankel building burned down, the Citizens' bought the ground and erected the present large and beautiful eight-story brick office building on the northeast corner of Sixth and Walnut streets, in which, with the State Savings Vol. I-34
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CITY OF DES MOINES AND POLK COUNTY
Bank, it occupies the first floor front. The bank moved into its new quarters in July, 1902. The present officers of "the Citizens' National" are: J. G. Rounds, president; George E. Pearsall, cashier and W. E. Coffin, J. E. Rounds, G. E. Pearsall, S. A. Merrill, M. Strauss, C. L. Gilcrest, B. A. Lockwood, G. E. King and M. Mandelbaum, directors.
The Valley National dates from 1873, when J. J. Town and G. M. Hippee started the Valley Savings, a private bank in the small building on the site of the Iowa Loan and Trust Company building, with. a capital of $50,000. About a year later, they removed to the northwest corner of Third street and Court ave- nue. In '75 they removed to the northwest corner of Fourth and Court, where the bank remained until 1910, when the old building was pulled down to make place for a hotel building. It was organized as a national bank in 1883, with J. J. Town, president ; W. W. Lyons, vice president and W. D. Lucas, cashier. It was originally capitalized at $100,000, but its capital stock is now $300,000. Its present directory is : D. S. Chamberlain, C. W. Mennig. Alfred Hammer. R. A. Crawford. C. T. Cole, E. W. Stanton, W. C. Harbach, Thomas F. Steven- son, H. M. Rollins, W. E. Tone and D. P. Reinking. Its officers are R. A. Crawford, president ; D. S. Chamberlain and C. T. Cole, vice presidents ; W. E. Barrett, cashier. Affiliated with the Valley National is the Valley Savings, with a capital stock of $50,000, with Alfred Hammer, president; C. W. Mennig, vice president ; R. A. Crawford, cashier ; C. H. Weitz, A. Hammer, R. A. Craw- ford, L. Harbach, C. W. Mennig, D. S. Chamberlain, W. E. Barrett, W. E. Tone and C. T. Cole, directors.
The Des Moines Savings Bank was evolved from the Des Moines Bank founded in 1875 by P. M. and Simon Casady and C. H. and E. S. Gatch. Five years later, the Gatches, father and son, retired, their interest having been ac- quired by the Hippees, father and son. The bank opened business in the little old Methodist church block on Fifth street. A year later it removed to Third street, and in 1881 to Third and Walnut. In 1883 the Union Savings Bank was founded, October II, 1884, it merged with the Des Moines Bank and the name was changed to the Des Moines Savings. The officers after the merger were: P. M. Casady, president; B. F. Kauffman, vice president; J. G. Berryhill, second vice president; J. W. Geneser, cashier; Samuel Merrill, P. M. Casady, Louis Harbach, H. L. Whitman, James Callanan, J. G. Berryhill, B. F. Kauffman, J. O. Mahana and Moses Strauss, directors. In 1897 the bank was removed to the northwest corner of Fifth and Walnut, where it continued to do business for the next decade. The coming of Homer A. Miller, a successful banker of northern Iowa, in 1898 was an event in the history of the bank. Mr. Miller's extensive acquaintance throughout the state and his identification with a score or more of country banks made him a valuable man. As cashier, he ex- tended the relations of the bank and materially increased the volume of its busi- ness. In January, 1904, the stockholders of the Des Moines Savings Bank met and ratified a decision reached by its directory in November, '03, to increase the capital of the bank from $400,000 to $500,000. This increase made "the Des Moines Savings" the largest commercial and savings bank in Iowa. The additional stock was all taken by the stockholders. This bank had undergone few changes since its organization in 1884. The Casadys, the Finkbines, the Hippees and Mr. Berryhill remained with it to the last, and went with it into "the Iowa National" when, later, the consolidation was effected. In the fall of 1907, before there was any thought of consolidation, "the Des Moines Savings" moved into the second floor of the Fleming building, the entire floor having been elegantly finished off with all the modern conveniences of a metropolitan bank. It was the purpose of the management to open in the new quarters as a national bank. Even a name had been selected-"the American National" --- and a charter had been applied for, when the unexpected thing happened. The old Iowa National Bank and the Des Moines Savings were consolidated, the re- organized bank taking the name of the old "Iowa National." The subsequent
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retirement of Simon Casady from the presidency of the bank-another surprise -led to a reorganization, with the following officers: Homer A. Miller, presi- dent ; H. S. Butler, vice president; Harry T. Blackburn, cashier. The present directory is: J. G. Berryhill, B. F. Kauffman, H. S. Butler, E. C. Finkbine, L. Harbach, H. T. Blackburn, J. H. Cownie, G. M. Hippee, H. A. Miller and G. M. Van Evera.
The death of George H. Maish, in 1888, took from Des Moines one of its most active bankers and most public-spirited citizens. Cashier of the Iowa National Bank, president of the State Insurance Company and treasurer of the State Agricultural Society, the combined duties and responsibilities assumed by him wore him out at the early age of 52.
The B. F. Allen Failure.
The suspension of the Cook County National Bank of Chicago, of which the Des Moines capitalist, B. F. Allen, was president, occurred January 19, 1875. In his announcement Mr. Allen explained the suspension in a general way by stat- ing that "promised and expected aid was refused at the last moment." He as- sured the depositors, however, that no loss could come to them-"their payment being only a question of time The stockholders had decided to go into voluntary bankruptcy."
Mr. Allen was reported as "at the bank all day, where he was waited upon by crowds of depositors, reporters and friends. He bore himself ad- mirably throughout telling all inquirers that not a depositor nor any other creditor of the bank would lose a dollar, but it would take time to turn the bank's assets into money." Of the $800,000 deposits, about $500,000 was due country bankers.
Mr. Allen soon departed for Des Moines where, as we have seen, he had large banking interests affected by the suspension.
The estimate put upon him by those who knew him best-his fellow business men of Des Moines-is evinced by their announcement after the suspension that they would receive Mr. Allen's certificates in payment for goods or in liquida- tion of debts. In a statement published in the Iowa State Register, Mr. Allen referred to "the great mortgage scare" working such mischief at the time, de- claring that the very means by which he had sought to rescue the Cook county bank from embarrassment ("and which, but for bad faith on the part of others, would have succeeded"), had been used to precipitate its suspension, and to at- tempt the destruction of his personal credit. He added "prudent moderation on the part of all interested in the latter will enable me to save all from the possibility of loss." To those who assailed his integrity his answer was the record he had made. His time and energies were for the present devoted to those who had caused the mischief. He had no fears for the outcome.
At the time of the suspension Mr. Allen was reputed to own Des Moines prop- erty amounting to nearly two million dollars.
"At first," says the Register, "the news" of the failure "was not credited." As a matter of precaution Harry West, his cashier, closed his Des Moines bank. He wished to be fair to all depositors. "The good judgment of our people," con- tinued the Register, "assured and strengthened by their knowledge of Mr. Allen and their faith in his honesty, and in his credit, prevented any panic." The one question Des Moines business men and rival bankers asked was, "Can we do anything to help?"
An impromptu meeting of business men was held in Hoyt Sherman's office, with James Callanan, Jr., in the chair and H. L. Skinner, secretary. Major Sher- man said the object of the meeting was to consider the possible effect of the sus- pension upon the business of Des Moines. West's bank was entirely unconnected with the Cook County National. The National State had $50,000 drawn against the Cook County National, and had $35,000 surplus, and its capital stock would be impaired only $15,000; it would then have $85,000 surplus. This was the
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worst that could happen in case of the total failure of the Chicago bank. Messrs. Redhead and Callanan confirmed Major Sherman's statements. Mr. Hatton moved a committee on resolutions, and the chair appointed J. B. Stewart, Fred Getchell, John H. Given and C. H. Gatch. The committee reported :
(I) That B. F. Allen individually had not failed, but only the Cook County National Bank, of which he was president.
(2) That the National State Bank of Des Moines was not only solvent but sound and merited public confidence.
(3) That the Capital City Bank was in no way involved. '
(4) That the suspension of Allen's bank in Des Moines was only temporary.
(5) That the other banks in Des Moines were in no wise affected by the suspension.
In conclusion, the committee resolved that it had entire confidence in Mr. Allen's business capacity and integrity and his individual solvency. The report was adopted, with applause, and was signed by nearly one hundred and fifty business men and firms.
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