USA > Iowa > Dubuque County > The history of Dubuque County, Iowa : containing a history of the county, its cities, towns, etc. > Part 75
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The congregation numbers about thirty families, and the value of the church property (including a parsonage) is stated at $1,500.
St. John's Evangelical Lutheran Church .- This congregation was organ- ized in 1854, under the auspices of the Rev. G. Grossman, who preached the first years of his pastorate in the residences of members, among the first of whom were George Weitzel, George Gartner and George Funk.
In the year 1876, the church purchased five acres of land near the city, which was, and now is, devoted to cemetery purposes. The following year, the lot corner of Thirteenth and White streets was purchased for $1,500, on which a frame church was erected for temporary purposes. In October of that year, the corner-stone of the present church edifice, on the same lot, was laid, the edifice completed during the summer, and dedicated on October 29, 1879. The building is 100 feet in length by 46 feet in depth, containing ample accommodations for the purposes for which it was built, surmounted by a steeple 133 feet in height, and cost, when finished and ready for occupation,. $10,500. The total value of church property is estimated at $16,000, and the congregation is represented as numerous and in a flourishing condition.
German Roman Catholic Orphan Asylum .- Among the early settlers in the lead mines of Dubuque was S. Huegle, an enterprising German, to whose charitable munificence the public are indebted for this institution. His confidence in the future of his adopted home, then but a comparatively unimproved hamlet, induced him to enter a considerable tract of land, now among the most valuable properties in the city. Gradually the mining-camp. expanded and developed into a growing town, so promising that those who had possessed themselves of property basked in the sunshine of prosperity. In the year 1872, Mr. Huegle died, at the advanced age of eighty years, bequeathing $16,000, with a number of out-lots, for the establishment of the
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present home of the fatherless. The selection of Trustees to discharge the provisions of this bequest was delegated to Bishop Smyth ; he died and was succeeded by Bishop Hennessy, who appointed the Rev. Father Johannes, of St. Mary's Church, G. Becker and J. M. Werner.
These gentlemen, procuring the services of Sisters of the Order of St. Franciscus, of Davenport, opened a temporary asylum in the old stone church, corner of Eighth and White streets. But the success which promised to attend their efforts was for a brief period delayed by law proceedings instituted against the executors by a nephew of decedent, which were compromised, however, in October, 1879, and dismissed.
By this time, the original bequest, with accumulated interest, amounted to $28,000, and the trustees purchased what is known as the Duncan property, adjoining Linwood Cemetery on the north, for a permanent asylum. The estate consists of thirty acres, beautifully located, on which has been built a two-story frame, 40x80, conveniently finished, furnished and adapted for the purpose, at a total outlay of $7,000, and leaving a fund, after some other necessary deductions, of $17,000, which has been judiciously invested for the benefit of this eleemosynary charge.
The inmates now number twenty children, who are cared for and educated under the supervision of twelve of the Sisterhood, by whom the Asylum is conducted and made a source of comfort and happiness to many who might otherwise be included among the more afflicted of earth.
BANKS AND BANKING.
At the commencement of the year 1842, there was a great crisis in money matters. Most of the banks throughout the country had suspended specie pay- ment in the fall of 1840, and many of them at this time were afraid to make their accustomed loans. Owing to the excitement in speculation almost every- body had become more or less in debt. The banks were not able to continue their usual circulation, but were compelled to call in their outstanding dues to enable them to redeem their accruing bills ; money was scarce, and it became impossible to sell property at any price.
The Miner's Bank of Dubuque, which was chartered by the Legislature of Wisconsin, and the only one at that time in Iowa, suspended specie payment the last of March, 1841, and refused to redeem its bills with specie until the 1st of July, 1842. As soon as the bank resumed specie payment, the demand for specie was so great, that in about a week it again suspended, and the result was that the value of its notes was quoted below par. The course pursued by this bank was such, that the Legislature, which met on the first Monday of December, 1842, thought proper to make an investigation of its affairs.
This bank, like many others, had been started on fictitious capital. The stockholders, instead of paying their stock in money, when the bank commenced business, executed their notes, and among the number was a man by the name of St. John, who resided in St. Louis. He had become a stockholder to the amount of $40,000, by executing his notes to the bank, and afterward became indebted to it by borrowing to the extent of $57,000, and, before he had paid any of his indebtedness, failed, and availed himself of the benefits of the bank- rupt act, the entire loss falling upon the bank.
Thomas Rodgers, a member from Dubuque, in the early part of the session gave notice of his intention to introduce a bill to repeal the charter of the bank, and provide for winding up its affairs, which was subsequently done, and the
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whole matter referred to a select committee of one from each Senatorial Dis- trict, of which George H. Walworth was Chairman.
Richard F. Barrett and Thomas Mather, of Springfield, Ill., the former a wealthy man and a large landholder in Iowa, and the latter President of the State Bank of Illinois, had become interested in the Miner's Bank of Dubuque, and made their arrangements to buy up the stock and secure its charter. They had so far secured control of the bank as to deem it advisable to make an effort to buy up the stock and secure its franchise. The Democrats were in the ascendency in the Legislature, and any measure which could cripple or embar- rass banks was regarded as good Democratic doctrine. Barrett knew that in order to carry out his plans and revive the bank at Dubuque, he must have the sanction of the Legislature, and that it was necessary for him to influence the Democratic members to get a favorable action from that body. He therefore selected a man and sent him to Iowa City as a lobby member, to look after the interests of the banks, and protect the same. But the agent did not manage his cause with as much skill and caution as prudence demanded ; for, when there seemed to be a disposition among members to sustain the banks, it was reported that improper means were being employed to obtain a favorable action in behalf of the Miner's Bank of Dubuque.
This prompted the appointment of a committee in the House, consisting of Walworth, Bunker, Falkner, Hepner and Newell, to investigate the facts and report the result. The examination showed that Barrett liad employed an agent to visit Iowa City and use his influence to obtain from the Legislature an expression sustaining the bank.
The committee submitted two reports. That of Hepner, on behalf of the majority, recommended the repeal of the bank charter and the winding-up of its affairs. That of Walworth, took grounds against such action.
The former report was adopted, and a bill for repealing the charter of the Miners' Bank of Dubuque and winding up its affairs was introduced, adopted and sent to the Council. In that branch of the Legislature the bill was amended by striking out all after the enacting clause, and providing, among other things, that the bank should resume specie payment within thirty days, its notes to be redeemable in coin at Burlington, St. Louis and New York. In case the bank refused to comply with the, provisions of the act, the District Attorney was required to immediately sue out a writ of quo warranto and prosecute the same to final judgment. The stockholders were also to be held liable to the amount of their stock, and the bank was denied the privilege of issuing its own notes of less denomination than $5. The bill, so amended, was passed, but the house refused to concur, and final action was temporarily postponed under the head of unfinished business. The question was revived at the ensuing session, however, and the charter repealed.
Thereafter. the following banking institutions were organized in Dubuque, and flourished until the stringency of the money market necessitated their retirement, or they gave way to the system of national banks at present in existence :
M. Mobley, 1851 to 1857, when it was re-organized, but closed up its affairs in 1858.
Langworthy Brothers, 1851 to 1857.
John W. Finley, G. W. Burton and T. F. Hay, composing the firm of Finley, Burton & Co., 1849 to 1856.
William Jesup and Edward Stimson-Jesup & Stimson-1849 to 1857.
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Eben Cook, S. S. Sergant, W. J. Barney and C. H. Booth-Cook, Sergant & Co .. 1851 to 1853.
W. J. Barney & Co., 1853 to 1857.
Herron Brothers, 1854 to 1857.
H. W. Markell, 1855 to 1863.
State Bank of Iowa, F. B. Goodrich, President; 1857 until 1863, when it was merged into the First National Bank of Dubuque.
The First National Bank was the first in the city to commence operations under the national banking law, having been organized in 1864, with an authorized capital of $300,000. At an election of officers, F. Hinds was appointed President and M. Kingman, Cashier, since when there have been, of course, official changes. Mr. Hinds was first succeeded by R. E. Graves, and, in 1870, by D. N. Cooley, who still acts. He is an old resi- dent of Dubuque, and, during a considerable portion of the time, has followed his profession of the law, varying it with the duties of Commissioner of Indian Affairs, latterly devoting his time to banking. In 1871, C. H. Eighmey, the present cashier, was promoted to that position, vice W. H. Clark. He has resided in Dubuque upward of thirty years, and has, for the past fifteen years, been identified with the banking interests of his adopted city.
As stated, the authorized capital of the bank was $300,000, of which $200,000 was paid in previous to issuing circulating notes. It is the oldest bank in the city, occupying the building corner of Main and Fifth streets, erected especially to accommodate banking interests, and is in every respect in a prosperous condition. The deposit and loan and discount accounts are very large, and its management stands high in the estimation of citizens and capi- talists at home as also abroad.
The present officers are: D. N. Cooley, President ; Franklin Hinds, Vice President ; C. H. Eighmey, Cashier, and O. E. Guernsey, Assistant Cashier.
The Second National Bank was first organized in February, 1876, by fifty- one citizens of Dubuque as stockholders, with intent to open for business on the 1st of April of that year. At a meeting of the corporators, held early in the year when the bank was organized, W. L. Bradley was elected President, W. P. Large, Vice President, and G. V. Smock, Cashier, with the following Board of Directors : B. B. Provoost, J. P. Farley, G. M. Staples, J. S. Hancock, W. H. Day, G. L. Torbert, J. W. Haas, W. J. Knight, George Crane, John Maclay, G. B. Grosvenor and H. S. Hetherington.
In the spring following, or as soon as arrangements could be concluded in that behalf, the bank was opened at No. 605 Main street, where it has since remained, one of the responsible financial corporations of the city.
The present officers are: W. L. Bradley, President ; W. P. Large, Vice President, and Louis Boisot, Cashier. The capital is $100,000, with a surplus of $2,500.
The Commercial National Bank occupies a front rank in the business circles of Dubuque and of this portion of the State. It was organized in 1871, with a capital of $100,000, its President being R. E. Graves ; Vice President, H. L. Stout, and Cashier, H. M. Kingman.
The bank sprang into existence because of the urgent need of increased banking facilities, and the business extended to its disposal bespeaks the confi- dence in which it is held throughout the Northwest.
Mr. Graves, the President, has resided in Dubuque for fifteen years, during all of which time he has been engaged in the banking business. He organized the Dubuque Branch of the State Bank of Iowa, and subsequently became
1
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President of the First National. His organization of the present undertaking has resulted most successfully, as the prosperous business abundantly testifies.
Mr. Kingman began his banking experience in 1862, in the branch of the State bank, subsequently becoming cashier of the First National, and of the Commercial National upon its organization.
The manner in which the affairs of the bank have been conducted may be inferred from the fact that, since its organization, an annual dividend has been declared, its business has increased rapidly, and the public confidence is implicit.
It is located at No. 92 Main street, in suitably equipped offices, and is among the most responsible of Iowa banking corporations.
The board of officers are cited above, there having been no change since 1871.
The Dubuque County Bank was organized under the laws of Iowa, on Novem- ber 19, 1875, by W. G. Stewart, A. Limback, J. H. Lull, P. J. Quigley, Will- iam Trick and others, with a paid-up capital of $50,000; and began business in its present site, No. 623 Main street, officered by W. G. Stewart, President, and E. A. Lull, Cashier, on the 23d of November following.
The capital has remained as when organized, and the following officers are now in service: W. G. Stewart, President; A. Limback, Vice President; E. A. Lull, Cashier ; W. G. Stewart, E. A. Lull, John H. Lull, Alonzo Cragin, F. M. Robinson, John R. Waller, Ben Harger, M. C. Ryder, P. J. Quigley, William Frick, A. Limback, V. J. Williams and R. E. Linehan, Board of Directors.
German Savings Bank .- This, one of the most prominent monetary insti- tutions in the city, dates its origin to November, 1864, when it was organized under the general incorporation law of the State, with an authorized capital of $150,000; John H. Thedinga, President, and William Fuchs, Cashier. It differs but little in its scope of business from that of other banks in Dubuque. For the accommodation of small depositors, a savings department is connected with the bank and continues a prominent feature of the business, though, gen- eral commercial banking, including the issue of bills of exchange upon corpora- tions abroad, is the chief business transacted.
Its management is said to be of the most prudent character, and the result of this conservatism is displayed in the universal confidence expressed in the management, and the large power it wields in the community: The present board of officers consists of G. Becker, President ; A. Kammann, Vice President, and P. J. Lee, Cashier. Its place of business is at No. 323 Main street.
THE PANIC OF SEPTEMBER, 1873.
On Friday morning, September 26, 1873, the community of Dubuque was startled by the announcement that the Merchants' National Bank had closed its doors. Inquiry not only established the truth of this rumor, but added to the general apprehension of citizens by the statement that the First National was paying checks drawn for small amounts only.
These banks, as also moneyed corporations generally, in Dubuque, were supposed to be in a thoroughly sound condition, and, when it was realized that one of the most prominent was unable to meet its liabilities, surprise and fear were substituted for confidence, and the greatest excitement prevailed. On the 29th of the previous June, all the banks had published statements which explained their condition. The figures evidenced their solvency, and a grati- fying balance remaining on hand. All of them stood well as the recipients,
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to the fullest extent, of the public confidence. From the failure of Jay Cooke & Co., to Thursday, September 25, 1873, there had been no apparent cause to excite the slightest apprehension. On that morning the news from Chicago, that the banks had virtually decided to suspend, reached Dubuque and pro- duced its natural result. A large amount of money was drawn out of the Merchants' National Bank on that day, and, being unable to obtain currency from Chicago, the bank found itself at the close of Thursday afternoon with scarcely any money to meet demands on the ensuing day. On that even- ing a meeting of the bank Directors was held at the house of R. A. Babbage, Cashier, followed later by a meeting of bank officials at the same place to con- sider the critical situation.
At the latter assemblage there were present D. N. Cooley, President, and C. H. Eighmey, Cashier, of the First National; R. E. Graves, President, and H. M. Kingman, Cashier, of the Commercial National; F. W. H. Sheffield and R. A. Babbage, of the Merchants' National ; H. P. Ward and L. Boisot, of the German Savings; and J. F. Bates, of the People's Savings Bank. The question discussed was : "Shall the Dubuque banks suspend?" and the con- sultation was prolonged until midnight. The Merchants' National desired that all the banks should suspend for a brief time, but found no assenting voice from the officers of other banks present. The First National favored the pay- ment of small checks only, while the Commercial and German not only opposed suspending, but asserted their intention to pay all demands in full. Finally it was decided by all, save the Merchants' National, to stand by each other and fight the fight to the end. Mr. Babbage stated that by a vote of the Directors the Merchants' would suspend.
On Friday morning the knowledge that the Merchants' National would not open for business was known to a few, but the first intimation of its insol- vency was promulgated at 9 o'clock, by the issue of a notice of temporary sus- pension posted on the door of the bank.
As might naturally be supposed, this produced an excitement absolutely indescribable. Before 10 o'clock a crowd collected opposite the building, but no demonstrations were offered. The suspension was regarded as due to the panic East ; that it would only be temporary, and as soon as confidence was restored business would be resumed.
On Saturday morning another meeting of the Directors was held, at which it was decided to appoint Gen. C. H. Booth custodian of the assets, who was to retain the same until a complete examination had been made by a committee of the Board, assisted by D. S. Deering, United States Bank Examiner. The latter gentleman completed his examination, and submitted a report assuring the de- positors that the bank was in a condition to pay all its indebtedness, and that not a creditor should lose a dollar.
This anouncement was made Wednesday, October 1. On the next day was published what had generally been known for two days previous, that the affairs of the bank were in a bad shape. The investigation, in short, developed the fact, that the depositors' money, both in the Merchants' and Dubuque Sav- ings Banks, had been levied upon and appropriated by F. W. H. Sheffield and R. A. Babbage, President and Cashier, to the extent of $330,000; and this, too, without the knowledge of a single Director or bank employe. These two officers made large discounts on their own paper ; overdrew their accounts and took money without limit. In addition, unindorsed notes were counted as assets; entries made in the books for which there was no foundation ; balances made to appear where none existed; bonds claimed where there was no basis
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for such claim, and so of bills receivable, bills of exchange, cash items, etc., the false entries amounting to nearly $200,000. No such complete gutting of a moneyed institution was ever heard of in Iowa. Messrs. Babbage and Shef- field resigned their positions and fled, the former going, as was supposed, to South America, and the latter, after making partial restitution, to the East, where he engaged in business.
THE BANK HISTORY.
The bank was organized in February, 1865, its charter bearing date of the 27th of that month, and issued under the comptrollership of Hugh McCul- loch. Its capital was quoted at $200,000, and its first Board of Directors, F. W. H. Sheffield, George D. Wood, J. Duncan, Charles Bronson, George L. Mathews, John T. Hancock, George A. Blanchard and R. A. Babbage. Mr. Sheffield was elected President and Mr. Babbage, Cashier, which positions they held continuously until October 1, 1873. Business was commenced on the 1st day of May, 1865, at the office subsequently occupied by the People's Savings Bank, where the same was carried on until July, 1868, when its removal was made to the corner of Fifth and Main streets, where it remained up to the day of suspension, and where it continued to grow in business and influence, until it led the banks in the city in the amount of its deposits, and the enjoy- ment of unlimited confidence. Its stock had been worth a premium for years, and nothing in the county was considered a safer or more reliable investment.
The Dubuque Savings Institution was run in connection with the Mer- chants' National, a sort of tender, as it were, with a capital stock of $100,000, 10 per cent paid in, and deposits running from $110,000 to $120,000. None of these were ever paid, it is said, the depositors losing all balances due them. They held a meeting on the afternoon of October 2, 1873, at which C. H. Booth was agreed upon as Receiver, and Charles Crocker, the President, sub- mitted a statement of the condition of affairs in the bank. The assets, he said, were in a bad condition, and the money all gone, taken by R. A. Babbage. The liabilities of the concern he reported at $140,857, with assets of a nominal character.
As already stated, the Merchants' occupied the leading position among Dubuque banks. Its friends were numerous and their deposits large. No men in the city were more respected and esteemed than its President and Cashier. When threatened with danger, the moneyed men of the city were ready to rush to its rescue. In a word, Mr. Sheffield and Mr. Babbage were regarded as the leading bankers of Northern Iowa. But not satisfied with the honorable position accorded them, they "ran the bank" to suit themselves. Incidents of the losses occurrent were numerous, and excited public sympathy, as, also, revenge. One widow lady deposited $500, all she had, on the day the bank suspended. A poor washerwoman had $280, the savings of a lifetime, and a seamstress, $80. her little all, both gone beyond redemption. One widow had her wealth in bonds, which turned up missing, and a poor old apple woman, who eked out a miserable existence by peddling fruit from door to door, lost $42, and was remitted to poverty and helplessness. In fact, no one was spared, neither the rich nor the poor, the strong nor the weak, the widow nor the orphan. The two charged with this disastrous calamity, were the bank's pres- ident and cashier, the former appropriating $62,188, and the latter, $267,- 289 of the money intrusted to their keeping.
F. W. H. Sheffield was a native of Saybrook, Conn., whence he came to Dubuque about 1856 or 1857. He was regarded as a genial, social gentleman,
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fond of company, good living and a good joke. For a number of years, he was engaged in the dry-goods business, as the head of the house of Sheffield & Scott. Some time afterward, the firm name was Sheffield, Wood & Co., from which he separated upon going into the banking business. Subsequently, he engaged in the management of the Iowa Central Railway project, and it is generally believed that this was the sink-hole into which much of the bank money was cast. When the failure came, Mr. Sheffield remained about the city for some time, and, after a settlement was effected, departed for the East. where he is now engaged, it is said, in the manufacture of wagons and other rolling stock.
R. A. Babbage, the cashier and particeps criminis with Sheffield, made his advent into Dubuque about 1856, from Western New York. After a brief residence, he established himself as a private banker, in company with his father, under the firm name of Babbage & Co., in which capacity he remained until his interest was merged with the Merchants' National in 1865, for which he was credited on the books of that corporation with $7,500. He was notice- ably strict in his attention to business, and no man in the city so universally enjoyed the implicit confidence of the public. There was never a whisper reflecting upon his integrity, and, had any such charge been made, its author would have been condemned as a slanderer without benefit of clergy. He was "invariably accommodating, and many a man is prosperous to-day, it is said, who owed his start and needed help in struggling years, to R. A. Babbage. Many of them were severe losers, and, while none of them can excuse or palliate his acts, they must ever be grateful to him for aid at a time when the future was darkened by clouds that bore no silver lining. No one pretended to assert the manner of the disposition of the money appropriated by Mr. B. Some insisted that it had been used in wheat speculations ; others that it had gone into unprofitable marine ventures-into the Iowa Central, or into a stock-farm in Butler County. But no one knew. Those who should have known, were the most astounded, and many who, it would seem, should have been spared, suffered the worst in proportion to their means. The people had faith in him beyond measure, and when his duplicity was promulgated, the disgust, disappointment and revenge created knew no limits. Babbage remained quietly in his house for four weeks after the suspension was known, guarded by the police and immediate friends. While thus hidden from view, one or two attempts were made on his life, but, owing to the intervention of friends and the author- ities, his obituary was deferred. After nearly a month's obscurity Mr. Babbage emerged from his hiding-place, and on the night of October 29, 1873, shook off the dust of Dubuque from his feet as a judgment against the city. Early in the evening of that day, accompanied by a friend and his son, Babbage left the city in a close carriage, going in the direction of Jackson County and bring- ing up finally at the village of La Motte. From La Motte he proceeded to Maquoketa, where, bidding his friends farewell, he boarded a train eastward bound and tarried not until he reached Portland, Me., whence he sailed to Buenos Ayres, a point beyond extradition process. Six months' sojourn in South America was followed by his departure for London, where he was joined by his family, with whom he removed to Brussels, where they resided about one- year, and returned to London. They are now residents of the metropolis ; Mr. Babbage engaged in the capacity of a commission merchant for the sale of American products, with which he is meeting, it is said, but moderate success. Efforts have been made to nolle certain indictments now pending against him, but without success, and it seems probable that he will be obliged to remain.
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