USA > Iowa > Linn County > History of Linn County Iowa : from its earliest settlement to the present time, Volume I > Part 64
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"From the time I left for the war, I had nothing to do actively with the bank- ing business and have never since been behind a banking counter in an official capacity. What little knowledge I have of the carly banking in Iowa, I gained there, but as Cedar Rapids was a typical town, I imagine that the banking done there was very similar to that done in all the other towns of the state.
"After a lapse of forty-four years, one's memory is not reliable and you must therefore make liberal allowanee for errors in date as well as other things. In writing I regret the want of old papers and other data, but have done the best I could under the circumstances.
" Truly yours, "SEYMOUR D. CARPENTER."
The first constitution of Iowa made the following reference to banks:
"The General Assembly shall provide for the organization of all other corpor- ations, except those with Banking privileges, the creation of which is prohibited."
For this reason early banking was conducted as a purely private enterprise, or as a branch of some bank incorporated in another state.
Prior to the adoption of the second constitution in 1857, it became evident that the state was very much in need of a more stable banking system, so pro- vision was made for incorporated banks, when approved by vote of the people and for " The State Bank of Iowa, " which was incorporated July 29. 1858. with power to establish branches and issue circulating notes. Elihu Baker, a Cedar Rapids banker, was the first secretary of the State Bank, and in time fifteen branches were established at different points in the state.
Although none was located here, our business interests received substantial benefit from the improved financial conditions that resulted from a safe system and a sound currency.
With the coming of the railroad in 1859, Cedar Rapids entered the fickl of commerce and forever put an end, not only to frontier banking, but to one of the most wonderfully heroic, and, in some respects, beautiful scenes of its human history - the pioneer life.
R. D. STEPHENS
ADDISON DANIELS
J. B. YOUNG
I. M. PRESTON
4
441
BANKS AND BANKING IN LINN COUNTY
Country banking as conducted today, is less crude, more scientifie, and safer than in the time of which we write, but a fundamental condition that has always made it a publie necessity remains the same, namely, a local community engaged in the activities of development, production, and commerce.
It goes without saying that the banking needs of Cedar Rapids as a railroad town were greater than ever before and several applications were made for per- mission to establish a branch of the State Bank, none of which, however, was successful.
This worthy institution itself proved to be short-lived. for the need that brought it into existenee was broader than Iowa and soon crystallized into the National Bank Act, which was adopted by the Federal Congress in 1863, and which provided for a National Bank eurreney and effectually put an end to all other bank note issues, and the State Bank of lowa, having fulfilled its mission, redeemed its notes and all other liabilities, and ceased to exist.
Although the national system met with much opposition on the part of the larger state banks of New York and elsewhere, and had to overcome prejudice in the minds of many people throughout the country, its positive improvement on the old order of things was quickly apparent to Cedar Rapids bankers, resulting in the establishment of two National banks in 1864, and the raee for charters illustrates a degree of alertness and competition in those days that would do credit to the chief of present day hustlers, and verified the old proverb, "the first shall be last," for the First National Bank, with a capital of $50,000.00, received charter No. 500 on August 23d, while the City National Bank, with a capital of $100,000.00, received charter No. 483 on July 19th of that year and was the first to open its doors for business. During the following year, the First National Bank inereased its eapital to $100,000.00. Published reports, about the end of the year 1865, show total deposits in both banks of nearly $150,000.00, and the full limit of outstanding bank notes $90,000.00 each, thus promptly and amply providing banking facilities for the rapid development that followed the close of the Civil war.
City banking within the memory of our older bankers was practically con- fined to the east and to a very few of the larger eities of the country, and its development in Cedar Rapids and other cities of her class illustrates the evo- lution of banking methods and evidences the remarkable financial growth of Iowa and the west. In response to the growing needs of jobbing and manufacturing lines. which were then in their infancy, the Merchants National Bank was organ- ized in 1881 by R. D. Stephens. He was an exceptionally able banker, and his untimely death in 1883 deprived the community of a strong force.
With the organization of the Cedar Rapids National Bank, which succeeded the private banking business of G. F. Van Vechten in 1887, there was inaugurated a systematic effort to encourage and build up a business with country banks within this territory. Such deposits were carried in moderate amounts before this, but were handled more as a matter of necessary collections on account of the shipments of live stock and grain to this center than as a permanent and profitable branch of banking. It became evident at this time that the rapid development of the state and of wholesale and manufacturing businesses at this point was bringing Cedar Rapids into closer business relations with many other towns. that currency and eredit could be handled here with equal safety and with greater profit and convenience than in the distant east, and with population and wage earners increasing, the savings banks assumed their most important place, and thus it came about that eity banking, like country banking, was the ontgrowth of our mutual business requirements and advantages. Its natural development led to the organization of the Cedar Rapids Clearing House Association in 1902, the designation by government authority of Cedar Rapids as a reserve city for deposits of other national banks in 1903, and to the existence of ten active banks today,
442
HISTORY OF LINN COUNTY
holding total deposits of over sixteen million dollars, and completes a record of banking safety that has paid its depositors in full throughout its history.
List of Cedar Rapids banks in the order in which they began business :
No. Name
Opened
Liquidated
1 Greene & Weare
1852
1858
2 Ward, Bryan & Co.
1853
1856
3 Carpenter, Lehman & Co.
1856
1857
4 Dodge, Carr & Co.
1856
1857
5
Elihu Baker & Co.
1857
1860
6 Greene, Merritt & Co.
1858
1862
7
Carpenter, Stibbs & Co.
1859
1869
8
S. C. Bever & Son
1862
1864
9
City National Bank
July 19, 1864
1898
10
First National Bank
August 23, 1864
1886
11
Union Savings Bank
Februray, 1870
1879
12
G. F. Van Vechten Private Bank,
February 1, 1877
1887
13 Merchants National Bank
March. 1881
14
Cedar Rapids Savings Bank
May 15, 1883
15
O. N. Hull's Real Estate Bank
August 12, 1884
1890
16
Cedar Rapids National Bank
February 28. 1887
17
Security Savings Bank
April 26, 1889
18 Bohemian-American State Bank
June 13, 1892 IS94
Jowa Savings Bank
May 1, 1893
1898
Bohemian-American Savings Bank
September 1, 1894)
20 Citizens National Bank
March, 1898
1908
21 American Trust and Savings Bank
April 5, 1898
22 Cedar Rapids Loan and Trust Co.
February 1, 1900
1904
23 Peoples Savings Bank
May. 1903
2.4 Fidelity Trust and Savings Bank
June 1. 1904
1907
25 Commercial Savings Bank
December 14, 1905
26 lowa State Savings Bank
July 1. 1906
27
Commercial National Bank
July 7. 1908
28
First Trust & Savings Bank
AAngust 4. 1910
19 changed name to
THE CEDAR RAPIDS CLEARING HOUSE ASSOCIATION
The Cedar Rapids Clearing House Association was organized largely through the efforts of R. T. Forbes, at that time cashier of the Citizens National Bank, and J. M. Dinwiddie, cashier of the Cedar Rapids Savings Bank. During the summer of 1902, Mr. Forbes and Mr. Dinwiddie agitated the matter and in Oct- ober of that year, as the result of their efforts, a committee of Cedar Rapids bankers, consisting of John T. Hamilton, J. M. Dinwiddie, Ralph Van Vechten, James E. Hamilton, J. W. Bowdish, Lawson Daniels, E. W. Virden, E. M. Scott. Ed. II. Smith, E. E. Pinney, and R. T. Forbes, visited Davenport and investigated the workings of the clearing house association of that city.
Following that visit to Davenport, a meeting of the representatives of the banks of the city was held on November 3, 1902, at which meeting it was formally resolved to form a local association. A constitution and by-laws were adopted on November 6, 1902, and the clearing house was regularly organized, with the following banks as members: Merchants National, Cedar Rapids National, Cit- izens National, Cedar Rapids Savings, Security Savings, American Trust and Savings. People's Savings. The first officers, elected December 3, 1902, were : President, J. M. Dinwiddie : first vice-president. E. M. Scott ; second vice-pres-
443
BANKS AND BANKING IN LINN COUNTY
ident, Ed. H. Smith; treasurer, E. W. Virden; secretary and manager, R. T. Forbes.
After formal organization the clearing house lay dormant for several months and it was not until January 4, 1904, that the association actually began the work of daily clearings. The elearings for the first day amounted to a total of $127,000. The average per week for the first year was about $400,000. That the banking business of Cedar Rapids has grown with giant strides the past five years is evidenced by the fact that the elearings are now running well over one million dollars per week and are showing an average gain of 40 per cent over the corresponding weeks of last year. The week ending June 5, 1909, showed the remarkable inerease of 130 per cent over the same week of 1908.
At the time of organization the banks of Cedar Rapids had a combined eapital of $630,000, surplus and undivided profits of $400,000, and deposits of $7,800,000. At the present time they have a combined capital of $900,000, sur- plus and undivided profits of over $300,000, and deposits of $16,000,000. Since the organization of the clearing house the deposits of country banks has increased from $2,000,000 to more than $6,000,000, savings and time deposits from $4,200,- 000 to $7,200,000, and individual demand deposits from $1,200,000 to $2,200,000. Such a showing of growth and prosperity is an absolute index of local conditions and speaks more eloquently than words of the substantial manner in which this eity is forging alead in things financial.
J. M. Dinwiddie served as president until December, 1906, being succeeded by E. M. Scott, who served until December, 1908. Mr. Seott was succeeded by J. W. Bowdish, who resigned in March of this year, being succeeded by Kent C. Ferman. R. T. Forbes served as secretary and manager until December, 1906. He was sneceeded by Charles Fletcher, Jr., who held the office until July, 1908, when he was succeeded by W. J. Elliott. E. W. Virden, the first treasurer, was succeeded by John Burianek, Jr., who served until December, 1907, when he was followed by Louis Wokoun. The present officers arc: President, Kent C. Fer- man ; first vice-president, James E. Hamilton ; second vice-president, John Bur- ianek, Jr .; treasurer, Lonis Wokoun ; secretary and manager, W. J. Elliott.
The present membership comprises all the banks of the city, as follows : Mer- chants National, Cedar Rapids National, Commereial National, Cedar Rapids Savings, Security Savings, American Trust and Savings, People's Savings, Iowa State Savings, Commercial Savings. The clearing house association rooms are under the Merchants National Bank, and here representatives from each bank in the city meet at eleven o'clock each day to exchange cheeks, or "clear" the day 's business.
The Commercial Savings Bank was organized December 13, 1905, with a capital stock of $50,000. Its officers were C. H. Chandler, president; W. C. LaTourette, vice-president ; James L. Bever, Jr., cashier; with C. H. Chandler, James L. Bever, Sr., W. C. LaTourette, H. Cushman, John B. Bever, C. B. Rob- bins, E. J. Carey. A. Jeffrey, and C. Denecke, directors. The bank has enjoyed due prosperity. There have been some changes in its officers, C. H. Chandler continuing as its president to this date. C. B. Robbins and E. J. Carey are the present viee-presidents, and Ed. B. Zbanek, its cashier.
The Iowa State Savings Bank opened for business January 6, 1906, at the corner of Tenth avenue and Third street. The capital stock was $50,000. It is known as the "South End Bank," and was organized for the especial accommo- dation of business men and individuals in the southern portion of the city. The first officers were : A. Tomec, president ; V. O. Hasek, vice-president; and Joseph Lesinger, cashier. The present officers are : V. O. Hasek, president ; J. J. Cerveny, vice-president, and Joseph Lesinger, eashier. Present capital stock $50,000; sur- plus, $5,000; total resources, $525,000; deposits, $700,000.
444
HISTORY OF LINN COUNTY
The People's Savings Bank was organized March 10, 1900, with T. MeCarthy, president ; H. E. Witwer and 1. J. Powell, vice-presidents: E. W. Virden, cashier ; and T. MeCarthy. II. E. Witwer, J. J. Powell. John M. Redmond, Wm. King. George HI. Boyson. A. H. Wolf, Theodore Stark, and Fred HI. Shaver, directors.
A. HI. Wolf and George H. Boyson, having disposed of their interests in 1903, at the annual election held January. 1904. C. L. Miller and George G. Grupe were elected in their places.
T. MeCarthy, on account of his health, did not desire a re-election as president. and E. W. Virden, having accepted a position in Louisiana, caused a vacancy in the presidency and cashiership. At that meeting the following officers were elected: II. E. Witwer, president, J. J. Powell and Fred H. Shaver, vice-presi- dents : and John Burianek. Jr .. cashier. On January 9, 1906, at the annual meet- ing, Mr. Redmond being unable to serve as a director, did not desire re-election and in his place John Burianek. Jr .. was chosen. On the death of J. J. Powell in 1908. Wmn. King was chosen one of the vice-presidents. The directors now are Il. E. Witwer. T. MeCarthy, F. H. Shaver. G. G. Grupe. Wm. King. C. E. Tuttle, E. S. Seeley, John Burianek, Jr.
Originally this bank had 83 stockholders, the number now being 53. It has a surplus of $25,000. undivided profits of $10.000, and deposits of nearly $900,000.
Early in 1911 the bank will occupy its new building on the corner of First street and Third avenne west, one of the handsomest in the state.
The Cedar Rapids National Bank was incorporated February 28, 1887, and succeeded to the business of G. F. Van Vechten, banker. The original directors were A. T. Averill, Geo. B. Douglas. G. F. Van Vechten, Joseph S. Cook, C. Magnus, J. M. Ristine, and (. B. Sontter. Changes in the board of directors have occurred as follows :
In 1888 P. E. Hall succeeded J. M. Ristine. In 1891 Ralph Van Vechten succeeded C. Magnus. In 1896 Mr. Magnus was reelected to succeed C. B. Sout- ter. In 1899 Ed. H. Smith was elected to fill the vacancy caused by the death of J. S. Cook. In 1906 P. E. Hall was succeeded by J. H. Ingwersen. In 1906 (. Magnus retired from the board, and in January. 1907. J. M. Ristine was elected to fill the vacancy. In 1909 C. D. Van Vechten was elected to fill the vaeaney caused by the death of G. F. Van Vechten, and in 1910 Glenn M. Averill was elected to fill the vacaney caused by the death of his father, A. T. Averill.
The present personnel of the board is as follows: Ralph Van Vechten, Geo. B. Douglas, Ed. H. Smith, J. M. Ristine, J. Il. Ingwersen. C. D. Van Vechten, and Glenn M. Averill.
The original officers were A. T. Averill. president : G. F. Van Vechten. vice- president ; Ralph Van Vechten. cashier. A. T. Averill served continuously as president until his death in 1910. and was succeeded in office by Ralph Van Vechten. G. F. Van Vechten was vice-president until the time of his death. which occurred in 1909, and he was succeeded in office by Geo. B. Douglas. In February, 1905, Ralph Van Vechten resigned his position as cashier, to assume the second vice-presidency of the Commercial National Bank of Chicago. At that time he was elected to the position of second vice-president of the Cedan Rapids National Bank, being succeeded as cashier by J. H. Ingwersen. In 1908 Mr. Ingwersen resigned as cashier to accept the presideney of the Peoples Trust and Savings Bank of Clinton, lowa, and Kent C. Ferman, who had been assistant cashier since 1904. was appointed cashier. In 1904 John Fletcher was appointed assistant cashier, and Miss Anna Smouse anditor. In 1906 Mr. Fletcher resigned to accept the assistant cashiership of the Drovers Deposit National Bank of Chicago. In 1908 Lonis Visha was appointed assistant cashier, and in 1909 Martin Newcomer was appointed as assistant cashier.
S. S. JOHNSON An Early Cedar Rapids Settler
445
BANKS AND BANKING IN LINN COUNTY
The present officers are therefore as follows: Ralph Van Vechten, president : Geo. B. Douglas, vice-president; Kent C. Ferman, cashier; Louis Visha, assistant cashier ; Martin Newcomer, assistant cashier ; and Miss Anna Smouse, auditor.
The bank has a capital of $100,000, a surplus of $100,000, undivided profits of over $100,000, and deposits of more than $3,500,000.
The Security Savings Bank was incorporated March 18, 1889, and opened for business April 26, 1889.
The original stockholders numbered 87, of whom 22 have since died.
The original directors were G. F. Van Veehten, C. J. Ives, J. R. Amidon, Walter D. Douglas, Chas. II. Clark, Jno. E. Murray, W. W. Higley, J. R. Morin, and W. F. Severa. Changes in the board of directors on account of death or disposition of stock have occurred as follows: In 1894 P. C. Frick sneeceded J. R. Morin ; in 1895 E. M. Scott succeeded W. F. Severa; in 1896 B. II. Witwer succeeded Chas. H. Clark, whose death occurred during that year; in 1899, on account of temporary removal from the city, W. D. Douglas resigned and was succeeded by C. D. Van Vechten, but on the death of W. W. Higley, later in the year, Mr. Douglas was reelected to succeed him. In 1906 D. K. Harbert sulc- ceeded C. J. Ives, who died that year, and in January, 1910, Emma M. Van Vech- ten was elected to succeed her husband. G. F. Van Vechten, whose death occurred the previous September.
President Van Vechten and Vice-President Ives served the bank continuously from its organization to the date of their respective deaths; Vice-President Am- idon continuously since organization, and President Scott the same - first as cashier, then vice-president, and after Mr. Van Vechten's death, as president. On January 1, 1908, J. W. Bowdish was engaged for one year to relieve Mr. Seott, during the building period, and served as cashier throughout that year. Cashier Frank Filip entered the employ of the bank in 1894, was promoted to assistant cashier in 1904, and made eashier in 1909.
The original capital stoek was $50,000, which was later increased to $75,000, then to $100,000, and on March 24, 1908, to $150,000. The present surplus is $100,000. Its total deposits are now about $1,800.000, belonging to 5,000 de- positors.
The bank first opened for business at 211 South Second street. In 1893 it erected on its own ground, 26x60 feet, on the corner of Second avenue and Second street, a three-story brick bank building, containing the first exclusive safety deposit vaults in the city. In 1902 additional ground was purchased and in 1907 the three-story briek adjoining on the south was purchased and the bank removed to a temporary office in this building, while its old home was replaced by its present eight-story, steel frame, fire proof office building, where its banking apartments are modern and complete.
The Bohemian-American State Bank was organized under state charter and commeneed business June 13, 1892, with a capital of $60,000, its officers being W. F. Severa, president ; S. L. Dows, vice-president; ]. W. Bowdish, cashier ; V. A. Jung, assistant cashier. Among its organizers were W. F. Severa, S. L. Dows, J. II. Douglas, F. Braun, Jos. Woitishek, Jos. Renehin, E. E. Pinney .. H. B. Soutter, T. C. Munger, C. Butler Wecks. J. J. Powell, and Warren Harman. It had a successful career and paid dividends from its commencement. It was consolidated September 1, 1894, with the Bohemian-American Savings Bank, in order to avail itself of the more liberal charter given by the state to savings banks, the stockholders and depositors practically all remaining with the new organization.
The Iowa Savings Bank was organized under state charter and commenced business May 1, 1893, with a capital of $50,000. Its officers were James H. Douglas, president; W. F. Severa and II. B. Soutter, vice-presidents; J. W. Bowdish, cashier; and V. A. Jung, assistant cashier. The directors were J. H.
446
HISTORY OF LINN COUNTY
Douglas, F. Braun, H. B. Soutter, Warren Harman, Jos. Woitishek, S. L. Dows, W. F. Severa, T. C. Munger. C. Butler Weeks.
On September 1, 1893, the articles of incorporation were changed, increasing the capital to $60,000, and changing the title to Bohemian-American Savings Bank. At the same date the Bohemian-American State Bank, desirous of the benefits of the more liberal charter offered savings banks, arranged to consolidate its interest with the Bohemian-Ameriean Savings Bank, which consolidation took offeet September 1, 1894.
The Bohemian-American Savings Bank enjoyed a prosperous growth, not- withstanding the effect of the panie of 1893, probably as severe a financial panie as at that time had ever been experienced. It paid regular semi-annual divi- dends and continued prosperous until its consolidation, March 28, 1898, with the Citizens National Bank and the American Trust and Savings Bank, two newly organized banks, the Citizens National Bank taking over the commercial depart- ment, and the American Trust and Savings Bank absorbing the savings depart- ment.
The Cedar Rapids Savings Bank was incorporated March 13. 1883, and opened for business May 15, 1883.
The original stockholders numbered 36, of whom eight have since died. The original directors were Jno. T. Hamilton. Lawson Daniels, Chas. B. Soutter, Robert Palmer, F. C. HFormel, Jas. L. Bever, Geo. W. Bever, A. T. Averill, and F. J. Upton. Changes in the board of directors on account of death or dispo- sition of stock have occurred as follows: In 1884 E. 1. Foster suceceded F. J. Upton; in 1891 M. A. Higley succeeded Mr. Foster; in 1892. at the death of F. C. Ilormel, J. M. Dinwiddie succeeded him; in 1897. J. M. Terry succeeded A. T. Averill; in 1900 Robert Sinclair sueeceded M. A. Higley. Geo. Goodell sueeceded Jas. L. Bever, and E. R. Moore succeeded Geo. W. Bever. President John T. Hamilton, Vive-President Chas. B. Sontter, and Cashier J. M. Din- widdie have served continously since the organization of the bank.
The original capital stock of the bank, paid in cash, was $50.000, which has been twice increased -the first time to $75,000, and then to $100,000. The present surplus of the bank is $65,000, and the deposits over $1.850,000.
The contraet for the bank's six-story, fire proof building, the first six-story structure in the city, located at the corner of Third avenue and Third street, was let May 30, 1895, and the building was occupied in May, 1896. In 1909-10 an addition was erected, so that the building is now 90x140 feet.
Its present officers are John T. Hamilton, president ; Chas. B. Soutter, vice- president ; Robert Palmer. vice-president; J. M. Dinwiddie, cashier; and W. J. Elliott, assistant cashier. Its directors are : John T. Hamilton. Chas. B. Soutter. J. M. Dinwiddie, Robert Palmer, Robert S. Sinclair. J. M. Terry, and Walter L. Cherry.
The Merchants National Bank, of Cedar Rapids, was organized February 28, 1881, the first board of directors being R. D. Stephens, John W. Henderson, P. C. Frick, W. W. Higley. J. C. Broeksmit. A. B. George, S. L. Dows. Its first. president was R. D. Stephens. John W. Henderson was chosen vice-president. and Charles E. Putnam, cashier.
Mr. Stephens died in April. 1883, and was succeeded by M. A. Higley as president. In the spring of 1899 John T. Hamilton purchased the Stephens and other interests in the bank, and on June 5. 1899. succeeded Redmond Stephens as director. On July 1. 1889, M. A. Higley tendered his resignation as president, after more than sixteen years' service in that position, John T. Hamilton being chosen president, which office he still holds.
Chas. E. Putnam remained as cashier of the bank from the organization to January 14, 1905, when he resigned and was succeeded by James E. Hamilton, who had been assistant cashier since January 28, 1901. On the consolidation of
447
BANKS AND BANKING IN LINN COUNTY
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