USA > Indiana > Howard County > History of Howard County, Indiana, Vol I > Part 20
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33
The contractors on the canal used this "White Dog" currency to pay the laborers and it was treated as legal tender all around.
INDIANA NEAR BANKRUPTCY.
In 1847 the state of Indiana was practically bankrupt. She had burdened herself with a large debt for the purpose of carrying
18
274
MORROW'S HISTORY
out a great scheme of internal improvements, and for several years had defaulted the interest upon her bonds. By this course her credit had been destroyed and the prosperity of the state seriously checked. Most of the bonds were held in Europe and the holders were clamorous for the payment of the interest, and the state was out of funds. The legislature passed an act for the settlement of the bonds on a new basis. J. F. D. Lanier, a noted banker, was selected to proceed to Europe and lay the proposition before the bondholders. His mission was successful and the load of debt was lifted.
In 1837, when the government called for the transfer of a large per cent. of the government funds, then held by the banks, to Washington. Mr. Lanier was the selected agent of the State Bank to take eighty thousand dollars in gold to Washington. He went by steamer to Wheeling, and from there across the mountains alone in a stage-coach chartered for the purpose.
Under the authority of the constitution of 1852 the legislature, in 1853, passed a free bank law, and, in 1855, a charter was given to the Bank of the State of Indiana. Governor Wright vetoed both of these bills, but they were passed over his veto. The panic of 1857 occurred throughout the country. Within a very few years after this new bank law passed many banks were started in Indiana, one of which, "The Indian Reserve Bank," was located in Kokomo, at the southeast corner of the public square. David Foster was president and Harles Ashley was cashier. It was supposed to have been robbed one night, and it ceased to exist. Banks sprung up everywhere, and the state was fairly deluged with a flood of prac- tically worthless currency issued under this general banking law. Many of them had no banking house or actual place of business. They made no pretense to being banks of deposit, their only mis- sion being to issue and float bills. A few men would get together,
275
OF HOWARD COUNTY.
purchase a few thousand dollars' worth of the depreciated bonds of some far-away municipality, deposit them with the auditor of state and receive authority to manufacture paper money. They would issue bills to an amount two or three times greater than the value of the securities deposited, put them in circulation, and these bank officers and directors would disappear, leaving the holder of the notes to mourn their disappearance. The discount of the notes changed almost daily, so that the bill worth eighty cents today might bring only sixty cents tomorrow. This money was called "Wildcat." This flood of money caused reckless speculation. Every merchant or business man had to keep for ready reference a periodi- cal known as a "Detector and Bank Note Reporter," in which the rates of discount on the bills on the various banks were daily given.
Many thousands of dollars were lost by the people who had accepted these "shin-plasters" as money. Merchants, millers and other traders issued them. The banks failed one after another, and as their notes and other worthless currency had driven all the good currency out of the state the result was very disastrous. Business was checked at once, all building stopped, new enterprises were smothered and old ones crippled. Nobody would take the "free bank" money, and as there was no other in circulation in the state, nobody could pay debts.
Thus it was until the Civil war broke out and the government had to issue "greenbacks" and small paper currency for change.
The people of the United States are, or should be, so happy and thankful that the country has finally escaped from the ocean of troubled finance and stands today on the solid ground-the "gold standard"-and all our currency as good as gold the world over.
We are a Nation, not a Confederacy of sovereign states. The school of experience has been a costly one, and all our people should profit by it.
276
MORROW'S HISTORY
BANKS.
As stated in Mr. Garrigus' article, the Indian Reserve Bank was the first bank organized in Howard county. The exact date of its organization and the date of its closing are not known, but appear to have been in the years just previous to the breaking out of the Civil war. Rumor says that one night while one of the bank officials was asleep in the bank building, some one stole in and took fifteen thousand dollars' bank funds ; that Howard county had funds on deposit there and lost.
From this bank failure until the organization of the private bank of T. Jay & Company there was no bank in the county.
NO BANKING FACILITIES.
The bank of Thomas Jay & Company was organized early in the year 1861, and was the direct outgrowth of the coming to Kokomo of Thomas Jay, Rufus Dolman and Ithamer Russell, busi- ness men who associated themselves together as a firm for carrying on several lines of business. The town was without banking facili- ties and to meet this urgent need they began a private bank and continued it for several years, until after the organization of the First National Bank of Kokomo. These men contributed very largely toward the industrial development of Kokomo for many years. Thomas Jay was perhaps the leading man of the firm, and was not only active in promoting the several business lines in which the firm was engaged but actively assisted in public affairs, con- tributing liberally of money and assisting in various ways to help Howard county do her full share in the war of the Rebellion, and later as a member of the common council of the city of Kokomo worked for her interests. Ithamer Russell was pre-eminently the
277
OF HOWARD COUNTY.
banking man of the firm; a quiet, unostentatious man, always at his post, kindly and accommodating.
Rufus Dolman, not so pronounced a hustler as Mr. Jay, nor so familiar a figure in the banking houses of Kokomo, was a man in whose word and judgment the citizens of Kokomo and Howard county had great confidence. Rufe Dolman commanded the respect of the community to a marked degree. The several qualities of these men have been transmitted to their sons in marked degree.
The First National Bank of Kokomo was organized in 1865. This was the first bank organized in Kokomo under the government banking laws, with which a later generation has become so familiar as to consider the system a necessity and to regard it a matter of wonder how the people had a banking system without it. The charter was for twenty years, and at the expiration of the charter the stockholders, not wishing to continue the business, it went into voluntary liquidation and closed out a successful business career. This bank was located much, if not all of its time, in the south- west corner room of now the St. Francis Hotel. Mr. Russell, with his long, flowing beard, was a familiar figure at the cashier's desk.
The Howard National Bank was organized in 1879 with a capital stock of one hundred thousand dollars. The most active and influential men in organizing this bank were Richard Nixon, Samuel Davis, Nathan Pickett and A. F. Armstrong.
Nathan Pickett, except for a few months, in which Richard Nixon served as president, has been president since its organization. Richard Nixon, who took an active interest in its organization, except for the few months referred to above, held no other official position than that of one of its directors. Mr. Nixon was one of the county's earliest and most influential pioneers and was promi- nently connected with the county's commercial life, first engaging in business at New London and later in Kokomo. He also took an
278
MORROW'S HISTORY
active interest in the churches and schools of the city and was in every way a worthy citizen. William P. Vaile was the earliest cashier. He resigned and went West and was succeeded by John A. Jay, who served in that position many years. After Mr. Jay's promotion to the vice-presidency Ernest George was chosen as cashier.
The bank was located for many years in the Armstrong block, on the south side of the square. It was removed to a home of its own when the building at the northeast corner of the square was completed. The first charter expired in 1899 and was renewed, the capital stock remaining the same. In the first years of its his- tory much of the capital stock was held abroad. This stock has since been bought by local parties and the stock is now held at home. In 1907 the surplus having increased to one hundred and fifty thousand dollars, one hundred thousand dollars of it was used in increasing the capital stock to two hundred thousand dollars. This bank is also a United States depository.
CITIZENS' NATIONAL BANK.
The Citizens' National Bank of Kokomo was organized October 8, 1889, with a capital stock of one hundred thousand dollars, and in December, 1907, was increased to two hundred thousand dol- lars. This bank is a United States depository.
The organizers were Jacob R. Bruner, Richard Ruddell. George W. Landon, J. C. Blacklidge, and others.
The stock is owned entirely by Kokomo parties. Handsome dividends have been paid regularly. In eighteen years the surplus had grown to one hundred and fifty thousand dollars, and on the Ist of June, 1908, after increasing the capital stock one hundred thousand dollars, there remained fifty-four thousand dollars surplus.
279
OF HOWARD COUNTY.
Their bank building is at the southwest corner of Main and Mul- berry streets. Richard Ruddell has been president of this bank since its organization. Mr. Ruddell had been a citizen of Kokomo and an active business man several years before becoming president of this bank. Formerly he had been a member of the Ruddell Brothers' Dry Goods Store Company at the northeast corner of the public square.
The officers now are: Richard Ruddell, president ; George WV. Landon, vice-president; Frank McCarty, cashier; R. F. Scherer, assistant cashier.
The Kokomo National Bank was organized July 15, 1902, with a capital stock of one hundred thousand dollars, divided in the beginning among about five hundred stockholders widely scattered over the city and county. This bank was promoted by George E. Bruner and John W. Barnes. George E. Bruner was the first president ; John W. Barnes, cashier ; and Lex J. Kirkpatrick, vice- president. January 1, 1904, E. E. Springer succeeded Bruner as president. The year before Barnes had retired as cashier and E. E. Sanders chosen as his successor. W. A. Marsh was elected cashier and became Sanders' successor March 14. 1905. The stock has been considerably consolidated but is still largely held by residents of the county. One block only is held outside of the county and but three stockholders live outside of the county. The bank is in a prosperous condition, is excellently located and is finely equipped. E. E. Springer and W. A. Marsh are president and cashier respect- ively. W. A. Marsh is a recent acquisition to the citizenship of the county, coming from Bluffton in 1905. E. E. Springer has been a resident of the county since childhood. He moved to Kokomo in 1884 and engaged in the real estate business and was very suc- cessful. He has been recognized as one of the most upright and solid business men of Kokomo for years.
280
MORROW'S HISTORY
OTHER BANKS.
In 1873 the private bank of Walker, Welsh & Company was organized with a capital of thirty thousand dollars. A. B. Walker was a well-known and highly respected citizen of the county. Mr. I. N. Welsh was a business man of good reputation of Eaton, Ohio. They did a good deposit and loaning business. They were not permitted by law to issue notes. During the panic of 1873 and following years, the bank's funds became tied up in real estate in such a manner that they could not be realized upon to meet the demands of depositors and the bank made an assignment, naming J. F. Elliott as assignee in the year 1878, who settled its affairs and closed out its business.
The Kokomo Trust Company was organized December 3, 1902, with a capital stock of thirty-five thousand dollars, and on April I, 1906, was increased to fifty thousand dollars. It has a surplus fund of thirty-eight thousand four hundred and forty-two dollars after paying dividends. The departments of this company are the savings bank department, where money is received on deposit in three different ways : on certificates of deposit, on savings account and on checking account, on which interest is paid, but no com- mercial or active business account will be taken; second, the loan department, where money is lent on first mortgage security or good collateral, and where bonds, mortgages, and so forth, are bought and sold ; third, the insurance department, where fire, accident, plate glass, employers' liability, surety bond, and so forth, are written carefully and in the best companies; fourth, the real estate depart- ment, where they buy and sell real estate on commission and where their officers may be consulted freely as to values; fifth, the trust department, which manages all kinds of business of a trust nature. such as administrator or executor of estates, guardian, trustee,
281
OF HOWARD COUNTY.
receiver, commissioner, agent, and so forth, the services of which will be found much more desirable and the cost of service much more reasonable than that of an individual in this capacity ; sixth, the renting department, where the company will take entire care of the renting of property, paying taxes, making repairs, and so forth, for nominal charges. The company is located on the west side of the square, opposite the courthouse. James D. Johnson is president ; W. E. Blacklidge, vice-president ; Fred. L. Trees, sec- retary-treasurer. The directors are William C. Purdum, C. A. Dolman, William H. Turner and Ed. S. Moore.
The First National Bank of Russiaville was opened as a pri- vate bank in 1898 by John H. Cox, R. C. Kincaid, T. L. Harris, Sheridan, Indiana, and John H. Collett, Indianapolis, with capital of seventeen thousand dollars. It was organized as a national bank in 1900, with capital of twenty-five thousand dollars, and had lately fourteen thousand dollars surplus and undivided profits, with one hundred and two thousand dollars deposits. It owns and built its own banking house in 1900. The stock is now practically held by Russiaville citizens. R. C. Kincaid is president and H. M. Bru- baker is cashier.
STRONG FINANCIAL INSTITUTIONS.
Kokomo and Howard county are certainly fortunate in having in their midst such carefully managed and safe financial institutions, where their citizens can deposit money and be sure that it is safe and can be had again for the asking ; places where they can go when in need of money and upon giving reasonable security can be accommodated. These banks all receive deposits subject to check or certificates of deposit and issue letters of credit on foreign banks and do a general banking business, such as making loans and dis-
282
MORROW'S HISTORY
counting gilt-edged paper, etc. They have passed through the periods of panic without loss to anyone. While the stress of the money famine of October, 1907, was on, the banks and trust com- pany organized a clearing house association and issued certificates guaranteed by all. The association was protected by the deposit of gilt-edged securities from the several members of the association. The certificates, while not currency in the fullest sense, were local currency ; that is, the local business concerns accepted them in pay- ment of bills and factories used them in payment of wages and redeemed them as soon as their money was released from the large banks in Indianapolis, Chicago and New York.
During this period, while many depositors were nervous to the extreme lest they should lose their earnings, the Kokomo Trust Company called three disinterested citizens of Howard county to carefully audit their books and report to the depositors the actual financial condition of the company. They did so and found, and so reported, that the surplus was as large and all the securities were gilt-edged and that the affairs of the company were such that noth- ing short of a calamitous shrinkage of values would endanger the deposits of anyone. A like examination of any one of the banks would doubtless have shown a like state of affairs. It is but sim- ple justice to say that the financial houses of Kokomo and Howard county are first class.
CRIMES AND CASUALTIES.
BY OTIS C. POLLARD.
Peter Cornstalk, a prominent Indian chieftain, died in 1838, just north of Burlington, and the body was hauled by William Smith to Pete's run, Ervin township, where it was buried. It was con-
283
OF HOWARD COUNTY.
veyed in a wagon, and the men had to cut their way through the forest. Cornstalk's son, Pete, following the trail to this city- "Cocomo"-and to the place of burial, discovered "Doc Bill," "Captain Bill" and Sam Loon disinterring the remains to rob the grave of the ornaments with which the corpse had been buried. The Indian killed "Captain Bill" on the spot, and the other men escaped. March, 1840, Pete treated Loon from his bottle, got him drunk at Joshua Barnett's grocery, and then conducted him to his brother, "Doc Bill," who was sick under a tree. The next morning he jerked Loon from the side of his brother, "Doc Bill," jumped upon his breast and sank a dagger in his heart. "Doc Bill" was not molested and died of his sickness. Pleasant Walker was given five dollars to bury Loon's brother.
Jacob F. Myers, a hunter, was frozen to death, February 1.4. 1843. in Ervin township. He had left the grocery of John Harri- son for his home in Cass county. While he had been drinking, was not drunk. When his dog came home half starved, a searching party was formed. The body was found lying flat upon the back, the handkerchief that had covered the face having blown away. Myers's gun was leaning against a bush. From the tracks in the snow, which crossed and recrossed, it looked as if he had become lost and traveled about forty miles. Although he carried steel, flint and punk, Indian fashion, to start a fire, he evidently had not at- tempted to make one. The searching party, which had a horse, harness, ax, and an augur, made a "jumper" and hauled the body home.
The New London Pioneer of the date of December 13. 1848, says : "One day last week, a man by the name of Kelly, living at Kokomo, in attempting to swim his horse across Wildcat creek, the stream being very high from the effects of the recent rains, was thrown from his horse and drowned. It is said that he was in a
28.4
MORROW'S HISTORY
drunken frolic and was forcing the poor horse through the raging flood for the third time. After disappearing he raised to the sur- face and exclaimed, 'Hurrah for old Tan,' his horse, and sank to rise no more."
February 14, 1849, the Pioneer also records: "A man by the name of Love, in the neighborhood of Kokomo, one of the coldest days of the present week, in a drunken frolic drove his family from his cabin, setting fire to it, entirely consuming the house and furniture."
The only authentic account extant of the killing of Jonas Brewer was that related by Daniel Rarey, one of the most reputable of Howard county's pioneers, a short time before his death. Mr. Rarey's only connection with the case was being arrested as a sus- pect. But he was released without trial, as it was clear that in the deed itself he had no participation. Although many persons of prominence and substantial means were concerned in the affair, every one left the country, and few living, if any are yet alive, have never since been heard from. The disappearance and supposed death of Brewer was in 1849. "Brewer was a handsome, finely built man, who came to Howard county, some said from Kentucky, others, from Logansport, Indiana. He was popular and fascinating. He kept company with a Miss Garinger, although her father made strenuous opposition to Brewer's attentions. Mr. Brewer had a rival, Elijah Tyre, the latter a man of pronounced personality, and of Scotch extraction, and seen generally wearing a shawl.
"Brewer left his pretty sweetheart one day and promised soon to return to her. A few months elapsed and he did not appear, nor had a word been received from him. Tyre had been very devoted in Brewer's absence and pressed his claims constantly. His suit was warmly urged by the girl's father. If the girl felt the sting of Brewer's neglect she never mentioned the fact to any one, and final-
285
OF HOWARD COUNTY.
ly she yielded her consent of marriage, if not her heart, to Tyre, and was married to him, to her father's great joy. But the newly founded home was darkened by a shadow that pained the young wife's heart and brought the blush to her cheeks. The tiny stranger was not a welcome guest.
THE ASSASSINATION OF JAMES BREWER,
"One day the word went round that Brewer had returned. The husband was morose and went about his work sullenly. One even- ing he went to his home and found it deserted. There was an abandoned cabin that stood on the bank of Wildcat creek, near Hopewell church. It was here that a mob gathered and formed its plans. When Brewer was found he was torn away from the young woman's embrace. She pleaded for his life, but to no avail. He was dragged to the church site and tied to a small beech tree. His back was stripped and the man was whipped as hard as lusty arms could apply the lash. The mob had blackened their faces and looked like a gang of negroes. Brewer recognized his assailants, despite their disguise, however, and hurled curses at them, and vowed to kill any and all of them, if his life was spared.
"Men in the mob said that the injured husband, wrought to a frenzy of excitement, rage and fear, whipped out a knife, to the horror of all the mob, who had not intended his death, and plunged it into Brewer's heart. Brewer strained against his bonds and died with an unuttered curse upon his lips. Tyre always denied the guilt of the fatal blow, even on his deathbed, although those of the mob laid the crime to him.
"Next morning broken and bloody switches were found. but not the body of Brewer. A woman was seen running across a field one afternoon, and by farmers working nearby was heard to
286
MORROW'S HISTORY
shout to her brothers, who were working in the woods, 'They have found the body under the bridge.' The men cut the harness off their horses in a second, and leaping astride dashed away, never to return. Near the bridge was a bog. Here search had been made and ap- parently traces of a body found. If ever there, it had evidently been removed shortly after this alarm. Where it was removed has never been known. Some said it was secreted in a gully on the James Miller farm, others said that the skeleton turned up by ditch- ers several years later in the old Purdum farm, just east of the city, was that of the murdered man.
"The next night after the killing warrants were sworn out by Oliver Tyre before Justice Jonathan Fisher and Constables Howell and Tence Lindley began serving them. Mr. Rarey was awakened from his sleep by the barking of dogs and a babel of voices. Going outside of the house in the dark night, he saw lanterns swaying and supposed that hunters had lost their way. He soon learned his mis- take, and to his astonishment was placed under arrest. As Mr. Rarey was able to show that he was several miles away in the hay harvest at the time of the killing he was never tried. The circum- stance that led to his arrest was that parties suspected of belong- ing to the mob had called at his home the afternoon before the tragedy to solicit him to help in the enterprise."
"On the day of our August election," says the Pioneer, How- ard county's first newspaper, in its issue of Wednesday, August 7. 1850, in "Harrison township, the most horrible and heart-rending affray took place, that we have ever been called upon to witness. There appears to have been an old grudge and dispute between the parties for some length of time, and the encounter was designed and premeditated. The assailants, Brohard and Lane, retired at an early hour, selected their ground, and after some parleying. a ring was formed, into which the parties stepped, and commenced a
287
OF HOWARD COUNTY.
fearful onset, encouraged by their friends, respectively. After deal- ing each other some half dozen or more blows with the fist, the brother of Lane interfered by violently pushing Brohard aside from his opponent. Lane instantly tottered and fell dead upon the ground. His friends soon removed him to a neighboring brook, and two physicians were promptly called, and all means used that could be to resuscitate the dead man, but to no effect." Dr. Lewis Kern, a pioneer of Harrison township, who was at the election when the dif- ficulty between John Brohard and Jesse Lane occurred, described it picturesquely :
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.