USA > Indiana > A History of Indiana from its exploration to 1922 > Part 23
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The Evansville Branch Bank, in common with the other branches, was to have its own profits, but all the branches were "mutually re- sponsible for the redemption of bills issued." One of the wise pro- visions of the charter was that the banks were not to suspend specie payment, although this became necessary during one year of the panic which soon came on in the United States. Extreme care was exercised by the state bank officials, and the management of its affairs was at all times beyond reproach. An honorable reputation was built up for the bank in this way, and at that time Indiana bonds sold at a premium even in London. No bank in the country was ever more carefully conducted or more wholly successful than the State Bank of Indiana.
All the branches were under the direct control of the central gov- erning body at Indianapolis, and the state president was required to make a complete and careful examination into the condition of each branch every six months. This supervision resulted in all branches being kept with the utmost rectitude of operations, and only one case of fraud was ever discovered in any of the branches. The capital stock of each branch was subscribed half by the state and half by the stock holders, but since the cities of the state were then so small there was but little private capital available for investment in bank stocks. However, this difficulty was solved by the charter which provided that to every stockholder who paid $18.75 on a share of $50.00 a loan would be made by the state for the balance so that the stock would be fully paid up. The entire annual dividend on each share was then applied on the debt of the stockholder until it was wiped out. The state paid for its half of the stock and advances to stockholders by selling its coupon bonds in London at five per cent., secured by the state's bank stock and liens on borrowers' stock.
The Evansville Branch Bank was established in 1834 with a com- bined state and individual capital of $80,000. On November 11 of that year occurred the first meeting of the board of directors, which was comprised of Robert Stockwell, John Shanklin, Marcus Sherwood, William Lewis, William Owens, Robert Barnes, Chester Elliott, James Cawson, Darius North and John Mitchell. John Mitchell was elected president and John Douglas cashier of the bank, Mr. Mitchell continuing in the presidency until his death, when Samuel Orr was chosen for the office. So successful was the bank that its capital stock was increased to $150,000 in 1843, the state stock amounting to $73,000. In 1847, George W. Rathbone was elected cashier and held that office until the bank went out of existence as the Branch of the State Bank on March 4, 1857.
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That the state was justified in its banking undertaking was proved by the fact that the average of its regular annual dividends for twenty years were over ten per centum, and there was in addition an undivided surplus of one hundred per centum at the expiration of the charter in 1856. The profit of the state from this banking system came to nearly three million dollars for the entire period of its existence, most of which amount was used as a school fund.
Prosperity attended the efforts of the state and nation for the first few years after the organization of the State Bank, but again over- confidence, bred in prosperity, brought disaster to the banks of the country. This was the financial panic of 1837, which began in the east, where nearly all banks were forced to close. The panic spread swiftly westward until Indiana was tasting the bitterness of financial depres- sion. The State Bank, seeing the hand-writing on the wall, sus- pended specie payment for over a year, although it was on a sound basis at the time. The panic continued until, in 1839, the legislature sought to gain relief by authorizing the issuance of scrip, and thereby only augmented the evil conditions of finance. These were the days of Red-dog, Blue-pup, Wildcat and Shin plaster currency. Notwith- standing the fearful mixing of politics and finances and the charter- ing of a new bank, to be called the Bank of State, all of which in the eyes of many threatened the absolute ruin of the commonwealth; yet through the level heads of a few financiers the State Bank, under the special control of Hon. Hugh McCulloch continued upon its career of high honor.
The charter of the State Bank lapsed in 1858. Before this time there had arisen a great demand for a free bank act, authorized by the constitution of 1851, and as it was evident the legislature was going to authorize a new bank, the old bank allowed its charter to lapse, preferring to retire from the field rather than try to weather the storms of competition.
In 1855 a law was enacted establishing the Bank of the State of Indiana, and by a provision of this law the state could not be a stock- holder in the bank. Twenty branches, capitalized at $100,000 each, were authorized, and the bank began operations in 1857 under the control of the managers of the old State Bank with Hugh McCulloch as president. Hardly had this new institution learned to stand on its feet when it was hit by the panic of 1857. It was one of the three banks in the country that did not suspend specie payment, for to have done so would have made the charter forfeit and for five weeks there was an enormous drain on the cash reserve caused by Indiana notes being sent for redemption in great numbers. But the panic was short lived, and the Bank of State survived it to enter upon a period of great prosperity which endured until the Civil war. The outbreak of that conflict created a demand for gold, but at the advice of McCulloch, the branches arranged with depositors to pay out gold on gold de- posits and bank notes on deposits made in notes. In 1862, the bank issued legal tender notes which it refused to redeem with gold. A test
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case was tried in the Supreme Court to learn whether or not this for- feited the charter, and it was decided in favor of the bank.
The Bank of State was exceedingly successful in spite of all the troublous times through which it passed, but with the passing of the national banking act, which taxed the notes of state and private banks ten per centum, practically every bank in the state was compelled either to wind up its business or obtain a national charter.
In 1850, the Canal Bank was established with John M. Stockwell as president. This bank was operated under a perpetual charter issued to the Evansville Insurance Company, the combined capital of the bank and insurance company being $250,000. In 1857, at the expiration of its charter, the old branch Bank was succeeded by the Branch of the State Bank of Indiana which was capitalized at $100,000, and increase of $20,000 over its predecessor.
In 1863, the First National Bank of Evansville, the sixth bank in the United States to make application for a charter under the new na- tional bank law, was organized with a capital stock of $250,000, a capital which was subsequently doubled. H. Q. Wheeler was the first president of the institution as a national bank, W. T. Page was the first cashier, and the first board of directors is worthy of note because it was comprised of some of the most prominent men of the city : Gilli- son Maghee, Robert Barnes, Charles Viele, John S. Hopkins, John Ingle, Jr., M. J. Bray, S. M. Archer, H. Q. Wheeler and William Brown.
With the passing years and the increasing prosperity of the city, additional banking capital became necessary and available. New banks were from time to time organized, backed and officered by able men. Samuel Orr, John A. Reitz and Phil C. Decker were respectively president, vice-president and cashier of the German National Bank, capital $250,000, which began operations in this city in 1873 on the transferred charter of the East Chester National Bank of Mt. Vernon, New York. In the same year, the Citizens National Bank came into existence as the successor of a private bank known as W. J. Lowry & Co. Its original capital was $175,000 and the first officers were R. C. Slaughter, president, and S. P. Gillet, cashier, while the board of directors included several of the substantial business men of Evansville.
A bank which flourished here for about twenty years was the Mer- chants National Bank. Organized in 1865 with a capital of $350,000 with C. R. Bement and John D. Roach as president and cashier, it continued successfully until about 1885 when the three principal stock- holders decided to relinquish the national charter and operate it as a private bank. This was done, but after about a year as a private bank, it went honorably out of existence.
No fairer indication of the prosperity of the city and county can be found than the number and condition of the many financial houses of the city which are doing business today. There are twelve national and state banks in the city of Evansville with a total capitalization of nearly three million dollars. The American Trust & Savings Bank, at the corner of Main and Sixth streets, has resources approximating
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three million dollars. Its officers are: M. S. Sonntag, president ; W. J. Lewis, vice-president ; W. H. Karsch, secretary and treasurer ; and Charles B. Dawes, assistant secretary and treasurer.
The Central Trust & Savings Company at 125 South Fourth street has Wilbur Erskine as its president and Herman Engel as secretary.
The Citizens National Bank at the corner of Fourth and Main streets is one of the leaders in Indiana financial circles. Its splendid building is one of the finest in the state and is one of the land marks of the city. William W. Gray is president, Dr. C. P. Bacon, S. T. Heston and H. E. Bacon are vice-presidents, Frank P. Fuchs is cash- ier, and W. W. Bicking and F. J. Bernhardt are assistant cashiers. The Citizens Trust and Savings Bank, in the same building, has the same president and vice-presidents as has the national bank, while A. C. Froelich is secretary and treasurer and Kenneth S. Wright is as- sistant secretary and treasurer. The resources of the national bank . are over $10,000,000 and those of the trust and savings bank are about a million and a quarter dollars.
The City National Bank, the oldest national bank in southern In- diana, has beautiful banking quarters in its building at the corner of Third and Main streets. Its capital stock is $350,000, and F. J. Reitz is president, C. B. Enlow vice-president, and B. S. Allnutt, cashier.
The Evansville Morris Plan Company, one of a great system of banks operated on the well-known Morris plan, is located at the corner of Fourth and Sycamore streets. Its officers are: Byron F. Persons, president ; Owen C. Carr, secretary and treasurer.
The Farmers Trust Company at No. 700 Main street has resources of about a half million dollars and has the following official personnel : Charles W. Johann, president; M. T. Butcher and John E. Edmond, vice-presidents ; W. T. Creek, secretary-treasurer ; and V. L. McWil- liams, assistant secretary-treasurer.
The Farmers & Citizens Bank, a state bank at No. 101 West Broad- way, Howell, has for its president, Frank C. Baugh; for vice-presi- dent, William E. Brandis; for cashier, C. T. Baugh ; and for assistant cashier, C. R. Conrad. Its resources are about one half million dollars.
The Lamasco Bank at No. 620 Fulton avenue is likewise a state bank, and has resources of more than a million dollars. Its officers are: Edward Kiechle, president; Frank Elmendorf, vice-president ; Charles J. Scholz, vice-president; T. J. Morton, cashier ; and E. J. Schroeder and C. F. Hoover, assistant cashiers.
The Mercantile-Commercial Bank at No. 200 South Second street is a state bank having resources of about $2,500,000. C. H. Battin is president ; Horace M. Lukens, D. E. Cadick, Daniel Wertz and Carl Lauenstein are vice-presidents; Earl Eichin is cashier; and W. H. Jurgensmeier is assistant cashier.
The North Side Bank, another state bank, has a capital of $100,000 and resources of about one and one half million dollars. It is situated at No. 1300 Main street and its officers are: Newton Kelsay, presi- dent; E. F. Goeke and T. E. Rechtin, vice-presidents ; C. H. Ayer, cashier ; and E. L. Moser, assistant cashier.
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The Old State National Bank has erected an imposing and hand- some building at Nos. 416-420 Main street. William H. McCurdy is president ; F. R. Wilson and J. O. Davis are vice-presidents ; J. O. Davis is cashier, H. J. Reimer and A. F. Bader, assistant cashiers.
The Peoples Savings Bank at 222 Main street, is one of the five exclusive savings banks of the state of Indiana, and its resources of nearly seven millions of dollars are about twice those of any other similar institution in the state. Its officers are: Charles F. Hartmetz, president ; James T. Walker, and Frank Schwegman, vice-presidents ; Frank Schwegman, cashier; Louis H. Legler, secretary; Michael Schaeffer, assistant cashier.
The West Side Bank at No. 1100 West Franklin street, with re- sources of over $3,500,000 has filled a long-felt want in the west side of the city. It was organized by Benjamin Bosse, and with charac- teristic vigor and ability he quickly brought the institution to a leading position in the local financial life.
For some years prior to 1919, the Auditor of State had supervision of all the state banks, private banks, trust companies, savings banks and mortgage guarantee companies doing business in the state. It was his duty to cause them to be examined at least twice a year, or oftener if necessary. If, in the examination of any bank or trust company, it developed that the same was in an insolvent or failing condition, it became the duty of the Auditor of State to make application to the circuit or superior court in the county in which the institution was located for a receiver, this receiver being required to make concurrent reports to the court and to the Auditor of State as long as his receiver- ship continued.
No regularly chartered state bank was under the supervision of the Auditor of State until it received its certificate of authority to commence business from the Secretary of State. Regularly chartered trust companies incorporated in the office of the Secretary of State, and received a certificate from the Auditor of State to commence business when a certification had been made that the capital stock had been paid in. Regularly chartered private banks received a certificate of authority from the Auditor of State upon certification that the en- tire capital stock had been paid in.
It was the duty of the Auditor to make at least five called reports of condition each year of each state bank and trust company under his supervision, and at least two called reports of condition each year from private banks, as well as annual reports from savings banks. The Charter Board was composed of the Governor, Secretary of State and a Bank Commissioner.
In 1919, the General Assembly passed an act creating the Depart- ment of Banking, effective at the close of the fiscal year, September 30, 1920, and all the powers theretofore conferred upon the Auditor of State relating to the supervision of banks, trust companies, building and loan associations, and loan and credit companies were, by this act, transferred to an official designated as the Bank Commissioner.
The building and loan department of the Department of Banking
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has three very clear and distinct purposes : First, to give all reasonable and legitimate encouragement possible to the associations of the state for the furtherance of their business; Second, to require all associa- tions to render strict obedience to the laws of the state under which they operate; Third, to see that associations have no unsound policies or practices.
The latest available statistics from the Department of Banking show that there are ten building and loan associations in Vanderburgh county, the names of which, together with the dates of organization, assets, stock in force and capitalization are here given :
Central Trust and Savings Company-organized in March, 1892; assets, $149,394.51 ; stock in force, $396,500; capital, $1,000,000.
Farmers Building and Loan Association-organized in May, 1920; assets, $15,745.62 ; stock in force, $13,325; capital, $200,000.
Fidelity Savings and Loan Association-organized in February, 1914; assets, $430,200.31; stock in force, $1,179,878; capital, $2,000,000.
Howell Building and Loan Association-organized in August, 1912 ; assets, $160,404.40 ; stock in force, $382,000; capital, $500,000.
Lamasco Building and Loan Association-organized in December, 1914; asets, $198,475.92; stock in force, $308,400; capital, $250,000. North Side Savings and Loan Association-organized in April, 1914 ; assets, $342,601.95 ; stock in force, $688,900; capital, $1,000,000. Permanent Loan and Savings Association-organized in April, 1885 ; assets, $366,563.63 ; stock in force, $820,050 ; capital, $1,500,000.
Security Savings and Loan Association-organized in January, 1913 ; assets $339,557.76 ; stock in force, $760,171; capital. $1,000,000. Union Building and Loan Association-organized in March, 1912; assets, $298,850.53 ; stock in force, $499,600 ; capital $1,000,000.
West Side Building, Loan and Savings Association-organized in October, 1904; assets, $198,186.95 ; stock in force, $653,400; capital, $1,400,000.
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THE PRESS
Evansville has ever been fortunate in the quality and calibre of the newspapers published here. It is perhaps safe to say that no other single agency exerts so wide an influence in the shaping of public opinion. The town's first newspaper made its appearance in 1821 as the Gazette, elsewhere fully described, promoted chiefly by Elisha Har- rison with William Monroe, a printer, as partner. The paper was abandoned in 1825. Thereafter, for ten years, no newspaper was published in the community, but in March, 1834, William Town, an easterner, opened a printing office in the old Mansel house on Main street, and commenced the publication of the Evansville Journal, a name which it bears to this day, the paper having been continuously published since its inception, making it one of the oldest newspapers in the entire state. In 1839, upon the death of Town, it passed over to W. H. and J. J. Chandler, who added to its name, calling the paper the Evansville Journal and Vanderburgh Advertiser, although the later part of the name was soon dropped, and William H. Chandler became its sole proprietor. Beginning in 1846 Chandler published the Journal three times a week, and in 1848 converted it into a daily, do- ing the major portion of the work incident to its publication himself. He was a man of exceptional ability, and upon his appointment as postmaster in 1848 sold his newspaper to Gen. Add H. Sanders. The Journal has come under the ownership of many men during its exist- ence. Col. John W. Foster was a part owner from 1866 to 1872, but the name most prominently identified with it is that of McNeely, members of the family having held an active interest in it since the 'Fifties. In the spring of 1923, the Journal, which was housed in an excellent and well-equipped plant of its own on Fifth street between Main and Sycamore, was sold to the Evansville Courier Company, and the two papers are now issued from the Courier office, the Courier as a morning daily, the Journal as an afternoon paper.
After several unsuccessful attempts were made to establish a Demo- cratic newspaper at Evansville, the Evansville Daily and Weekly Courier made its bow to the city on January 7, 1865. A fund had been subscribed for the express purpose of establishing such a Demo- cratic newspaper here, and the printing plant was held by five trustees for the benefit of the subscribers to this fund. They were John A. Reitz, Judge William F. Parrett, Hon. Thomas E. Garvin, Hon. Charles Denby and Richard Raleigh, Esq. Four practical printers were retained to issue the paper, Alfred S. Kierolf, one of the four, having been the editor. During the first few years of its life, the Courier went through many financial hardships and changes of owner and editor. George W. Shanklin bought it, but in 1865 sold it to C. and F. Lauenstein, owners of the Evansville Demokrat, who increased its
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value materially during the short time of their ownership. In 1873 it was sold to S. D. Terry & Company, and in March of the following year was bought by John G. and George W. Shanklin. In 1876 J. S. Reilly assumed control of the financial and business management of the Courier, although the two Shanklin remained in charge of the editorial department for many years, making it one of the leading Democratic dailies of the middle west. For some years subsequent to 1885 the Courier company published an afternoon daily called the Public. In later years the Courier company became the property of Benjamin Bosse, whose estate now owns and publishes the Courier and the Journal under the able management of its .editor. William H. Rob- ertson and Edward J. Fehn, treasurer and general manager.
In 1906, the Evansville Press, an afternoon daily, made its appear- ance in the city. Under an able management which pursued far- sighted policies of encouraging every movement which had for its object the material or moral improvement of the city and county, the Press found prompt welcome at the hands of the citizenry. With the passing years it has become increasingly important as an agent for public betterment, its editorial policies are sound, and its material prosperity gratifying to its owners. The plant of the Press at Nos. 208-14 Vine street has become inadequate to the proper handling of its business, and at the present time a large addition is being erected to the building. . F R. Peters is president of the company, C. F. Mosher is secretary and treasurer.
The Evansville Spectator, a weekly newspaper, was launched in 1923, and is finding favor with the people through the medium of some novel features incorporated in its columns.
There have been a great number of newspapers in the history of the city, many of them ephemeral sheets which could not attain to sufficient material prosperity to continue. The South-Western Sen- tinel was published in 1839 and 1840 by Jacob Page Chapman as an organ of the Democratic party, but suspended operations after the election of the latter year. Another paper which also survived but two years, 1848-50, was the Vanderburgh Democrat, and during its brief career the Evansville Advertiser, the first Democratic daily in the city, was commenced with Col. C. W. Hutchen as editor. The paper was soon sold, the name changed to the Republican, again sold, and ceased publication in 1851. TheTimes was published during the cam- paign of 1852, and in 1853 Capt. John B. Hall bought the plant of the Independent Pocket and published a paper called the Evansville Daily Enquirer, of which Col. Charles Denby was the first political editor. Of him it has been written that he was forcible and scholarly as a writer, and his productions commanded the respect of his most vio- lent political adversaries. The Enquirer changed hands several times, but upon the outbreak of the Civil war and the enlistment for service of its owner, Capt. Nathan Willard, its life was brought to a close. The Evansville Times, the organ of the Democratic party here during the campaign of 1864, had its beginning when a fund of $4,000 was sub- scribed by the party for the purchase of the plant of the Volksblatt, a
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German Republican paper. Robert S. Sproule was engaged as editor, and the staff was excellent, but the venture was a failure. In the win- ter of 1864-65, George W. Shanklin bought the printing office of this paper, and until April conducted the Evansville Dispatch, which was also a failure.
For a long period of years, Evansville boasted of the finest Ger- man newspaper in the lower Ohio valley, the Evansville Demokrat, which was founded in 1864 by Peter Maier. In 1867, it became the property of Lauenstein brothers, whose vigorous management made it a financial success over a considerable period. Of later years, how- ever, with the absorption of the German element into the general body of the public, the need for a German newspaper became increasingly less apparent, until the course of wisdom dictated a suspension of its publication. There has been recently established a new German language newspaper here, published by Carl Dreich.
The Evening Herald was the first afternoon daily published in Evansville, it having been established in October, 1873 by W. T. King, but its life was of the shortest. In October, 1877, it was succeeded as an afternoon paper by the Tribune, published at first by Frank J. Ryan and Jacob Covert. For a time it prospered, but after about three years financial difficulties almost forced it to suspend. Fresh capital was in- vested in the paper by Percy P. Jones, who soon was sole owner, the former proprietors withdrawing and commencing the publication of the News, a rival evening sheet, which so seriously competed for public favor with the Tribune, that the owner of the latter bought out the News. In 1886, the Tribune passed into the hands of Frank M. Gil- bert, who had been publishing the Saturday Evening Argus, a weekly paper, and for many years Mr. Gilbert and the Tribune took a com- manding place in the community life. The Evansville Bulletin was established in 1880, first as a weekly, later as a daily, and supported the Republican party. In the previous year, a German newspaper, the Indiana Post, was established and was conducted successfully for a number of years. Several newspapers of a specialized nature have at various times in the past made their appearance, including the Satur- day Call, the Advance, published by the Y. M. C. A., the Indiana A. O. U. W. Recorder, a fraternal organ, the Labor Advance, and the Pilot, a journal devoted to the interest of colored people.
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