USA > Kansas > A standard history of Kansas and Kansans, Volume II > Part 42
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"Luther Challis appears as a banker in directories of 1859-61, corner of Second and Commercial streets. In 1855 he had a big trade with Mormon emigrants and various Indian tribes. He was a member of the Territorial Couneil, 1858, of the Free State Council, 1859-60, and later
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KANSAS AND KANSANS
state senator. He framed the bill that authorized the construction of the Central Branch of the Missouri Paeifie, being a president of that road and also a director and stockholder in the Atchison, Topeka & Santa Fe. In 1862 he began to operate in Wall Street, and in 1864 removed to New York, where it is said he had $960,000 on deposit. He returned to Atehison in 1878 to save the remnants of his fortune. He fought more than the bulls and bears in New York, where he successfully defeated a blackmailing seheme of the notorious Woodhull and Clafflin, Train and others. He died a poor man.
"Of the banks of Topeka, Guilford Dudley, in 1857, advertised a brokerage business, and again in 1859 he made a showing as a broker. In May, 1864, F. W. Giles obtained a government lieense to do a banking business. In 1872 the Topeka National was organized. On Angust 23, 1866, the Kansas Valley National Bank was organized, fail- ing in 1873. It was known as Dan Adams' Bank. The Leavenworth Commereial onee said: 'The state funds are in Dan Adams' keeping, and are now invested in eattle.' It was the same kind of a cattle story that forced the impeachment and resignation of State Treasurer Hayes. On January 1, 1869, John R. Mulvane began his wonderful career as a banker in Topeka, as eashier of the Topeka Bank and Savings Institution. To follow these details down to date would make a book; the only pur- pose of this paper must be to save the beginnings.
"In the spring of 1859, there was a bank organized at Lawrence under the territorial laws, after the Free State party had control, and was called the Lawrence Bank. Its eireulation was redeemed in eoin. S. W. Eldridge, James Blood, Governor Robinson and Robert Morrow were the owners and directors. After a time Mr. Stevens bought the interests of Governor Robinson and Robert Morrow, and thus became the sole owner. Morrow remained nominally the president, and S. C. Smith was the eashier. Mr. Stevens beeame extensively engaged in government eon- traets, building Indian honses and other matters, and concluded to close the bank. He took up and deposited it with the anditor to redeem the cireulation, and withdrew the bonds. Mr. Smith remained in the bank doing an exchange business, and this was the condition when Quantrill burned Lawrenee and robbed the safe. In it there was a small package of bills that had been redeemed by Mr. Smith and not taken to Topeka, and these were carried by Quantrill's men to Missouri. We have a two- dollar bill of this bank presented by Mr. G. Grovenor, which passed through the Quantrill raid, being in Mr. Grovenor's safe. Morrow had several thousand dollars in eoin of his own money in the safe that was also taken during the raid. It was when silver and gold dollars were worth two dollars and a half in greenbaeks. There were three other banks in Lawrenee opened about this time, viz., Babeoek & Lykins, Simp- son Brothers and E. D. Thompson. These were not banks of issue.
"Baek in the '60s an attempt was made to start a bank at Lecompton. E. W. Wynkoop, later very prominent in the founding of the city of Denver and as an Indian agent, was interested in the attempt, but the sight of mueh gold and its security, I suppose, greatly discouraged them.
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Ely Moore, in his delightful story of Lecompton, tells how western people at that time disliked paper money, and he gives a dialogue he heard between a Missouri steamboat captain and a woodyard man. The boat pulled up to the bank and the captain called out. 'Is your wood dry ?' 'Yep,' was the answer. "What is your wood worth ?' shouted the captain. 'What kind of money do yer tote, Cap. ? ' asked the wood merchant. 'The best on earth-the new Platte Valley Bank,' replied the captain. 'If that be so, Cap.,' was the rejoinder, 'I'll trade eord for cord.' How would we do business today with the old-fashioned detector always in hand ?"
The following interesting footnote is thrown in at this point : "This use of serip was fraught with worry and aggravation, and it is no wonder that the banker and the business man of ante-bellum days spent most of their time studying the deteetor. An article, published a short time since in the New York Sun, and republished in the Kansas City Journal of May 6, 1912, tells something of the money of that time. Spanish eoins were largely in cirenlation then, and the 'fips' and 'levies' were the common small change of the day. A 'fip' represented one-sixteenth of a dollar, and a 'levy' one-eighth. The discount on state bank notes was constantly varying. This fuetnation, with the bank failures and the eireulation of counterfeit notes-for many men printed their own money, and eireulated it, too, in that day-eansed a certain instability in money cireles, and made the business life of the small banker and merehant a precarious one."
The eonseentive narrative then continues: "Under the act of 1857 creating the Kansas Valley Bank, with branches, Fort Scott organized a branch in May of that year. Governor Robert J. Walker refused to approve. The parties interested sued the Governor, but there is no record of what hecame of the suit. The law provided that stockholders had to put up one-half their subscription in gold or silver, and give the bank a hond for the other half. Two Lecompton men were quite promi- nent in the Fort Scott move-James G. Bailey and David Bailey, brothers.
"Kansas in those days had her Wall Street, and it is a singular eir- eumstanee that the antipathy which later prevailed did not obtain then. The first United States land office was opened for business at Lecompton in May, 1856. It was located on Elmore street. The remainder of the same block, both sides of the street, was lined by a pretty fair assort- ment of wood shanties, used by land lawyers and land sharks. The only currency then recognized by the United States in the payment for land was gold and land warrants. Settlers had to have gold with which to pay the government, but they could make some saving by purchasing a land warrant. There are no very damaging stories of the rapacity of those doing business on the Wall Street of Lecompton, but as lofty as five pereent a month was common talk for the fellow who had neither land warrant nor gold, and who desired a quarter seetion of the public land. The land offiee was removed to Topeka in September, 1861. The . greater portion of the time it was at Lecompton there was a heavy busi-
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ness. Besides the ordinary entries, there was much contesting, making business for attorneys and bringing many witnesses. There was a bright lot of young men in those days other than the financial skinners. The first settlers in Kansas were not chumps by any means. Some came here with the conceit that they were sharper than others, and they sometimes found in the end that there were those who were still sharper. I remem- ber an instance of a gentleman from Ohio, who came to Lecompton with a few thousand dollars and who intimated that he was going to cut some- thing of a swath. One morning, about 1858, I was standing in front of the old National Hotel as the stage was loading for the East. The gentleman from Ohio had concluded to return, with every feather plucked. As he stood with one foot on the step of the coach, holding to the post and swinging the other foot, he remarked : 'When I get back to Ohio, I will tell them there is nothing but a sheet of brown paper between this place and hell.'
"The first bank in Junction City was opened by Hale & Kirkendall about May 1, 1866. The name was soon changed to Hale & Rice. It came to an end in a very peculiar way. In March, 1868, a contractor named Rawalle, at work on the construction of the Kansas Pacific, came in on the train after banking hours with $15,000 on his person. He desired to leave it with the bank. The time lock on the inside of the safe had been closed for the night, and it was concluded to put the money inside the outer door. In the morning the outer door of the safe was open and the $15,000 gone. The banker's residence, it was alleged, was entered in the night and the key taken from the banker's pantaloons. It spread suspicion and ruin, and was a mystery which worried the community for years, and is still unsettled.
"The firm of Streeter & Strickler, at Junction City, were very heavy contractors with the Government for freighting and such supplies as hay and corn. Hundreds of men living on the plains were in the employ of this firm. It was on the eve of the winter of 1863, or the winter of 1864, that Streeter & Strickler had accumulated about $200,000 of govern- ment vouchers. Strickler went to Leavenworth to get the money- government greenbacks now. A combine had been formed to squeeze him out of a very respectable shave. After several days' resistance he returned to Junction City without the money. This spread consterna- tion along the border, as all had some interest in the matter and needed their pay badly. About seventy-five gathered one day in front of the Streeter & Strickler store. Strickler appeared on the steps to make them a talk. He told them the story of the combine at Leavenworth, and begged them to give him time to beat it, assuring them that, in addition to the squeeze at Leavenworth, a squeeze at home would ruin them all. He invited them all in to examine the paper he held against the govern- ment. After being satisfied that the firm had the stuff, the crowd pro- posed that if they could have some winter clothing they would wait. The next morning Strickler was on the stage for Leavenworth. He shipped $10,000 worth of clothing to Junction City and handed it over the counter as fast as it could be carried away.
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"In a few weeks the trouble at Leavenworth was over, and everybody got his pay. The firm of Streeter & Strickler was a great one, covering about all the plains. They were not very prudent, but quite useful, exhibiting the general utility demanded of all successful business men at that time. They are supposed to he the first to use the word 'every- thing.' The Democrats made three failures in establishing a newspaper in the town. This firm asked the Democrats to stand aside and let the Republicans try it. The Democrats did so, and were always afterward fair and loyal to the enterprise, and I was carried on the pay roll as a clerk in the store while setting type and making a newspaper. Another Republican merchant in town likewise furnished a second printer. This lasted two years when the paper was placed on its own feet. A joker from the East settled near Solomon, and struek with the advertisement 'every- thing,' in a very formal manner ordered a $1,000 bull. The firm very seriously reported that they were out of that line of bulls, but expected to have one any day. They telegraphed to Illinois for such a bull, and in a few days it was delivered at Solomon. The man who attempted the joke was equal to the oeeasion, took the bull and paid for it. The firm occasionally differed on local matters, and in one eity eleetion both took money from the same till to spend against each other. The man who settled their business told me that their books showed over $3,000 a year was charged to charity. Streeter & Striekler, in the early days of the war, issued a great quantity of serip, which the soldiers would use for lighting their pipes, which I suppose entitles them to this mention in a banking paper."
Thus the pioneer banks of Kansas, which so often were but side issues to great business enterprises-a means by which they were eondueted and developed-progressed through bold experiments and sore trials. When laws and regulations became necessary, they were passed and, within comparatively recent years. strietly enforeed, so that the state has now a real system, which will not suffer in comparison with any other in the Union. The first eall for a statement from the banks under the super- vision of the Banking department was made October 13, 1891, and the report indicated that at the date named there were 414 state and private banks subject to the law. In 1916, there were doing business, within the borders of the State of Kansas, 225 national banks, 1,010 state banks and trust companies, and three private banks subject to state super- vision. The total number of banking institutions was therefore 1,238.
The Bankers Directory for that year, which is standard authority, reports the following in the eities of the state having a population of more than 5,000 people each, with the amounts of paid-up eapital :
Arkansas City-
Home National $ 50,000
Security
100,000
Traders
25,000
Union 50,000
Atchison-
Savings
125.000
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Atchison-
Commerce Trust Co $100,000
Exchange National
200,000
Exchange State
50,000
German-American State
50,000
Coffeyville-
American State
50,000
Condon National
100,000
First National
100,000
Peoples State
25,000
Concordia-
Cloud County
100,000
State
25,000
Farmers & Merchants State.
25,000
First National
100,000
Emporia-
Citizens National
150,000
Commercial State
100,000
National
200,000
State
50,000
Lyon County State.
50,000
Warren Mortgage Co.
100,000
Fort Scott-
Citizens National
100,000
State
100,000
Kansas State
25,000
Peoples State
25,000
Galena-
Citizens
25,000
National
50,000
Hutchinson-
Central State
100,000
Citizens
100,000
Commercial National 100,000
Farmers National
100,000
First National
250,000
Fontron Loan & Trust Co. 100,000
Reno State
50,000
State Exchange
100,000
Independence-
Citizens National
150,000
Commercial National
100,000
First National
100,000
State
50,000
Ioła-
Allen County State.
30,000
State
25,000
Northrup National
50,000
State Savings
25,000
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KANSAS AND KANSANS
Junction City-
Central National $100,000
First National 75,000
Home State
25,000
Union State
40,000
Kansas City-
Argentine State
10,000
Armourdale State
50,000
Banking Trust Co
200,000
Central State
10,000
Citizens State Savings
25,000
Commercial National
300,000
Exchange State
100,000
Fidelity State
25,000
First State
30,000
Home State
25,000
Kansas State
10,000
Kansas Trust
125,000
Minnesota Avenue State.
10,000
Peoples National
200,000
Riverview State
50,000
Security State
10,000
Lawrence-
Citizens State
25,000
Farmers State Savings, Banking & Trust Co .. 125,000
National 100,000
Merchants Loan & Savings 25,000
Merchants National
100,000
Peoples State
50.000
Perkins Trust Co
100,000
Watkins National
100,000
Leavenworth-
First National
300,000
National 150,000
Savings & Trust Co. 100,000
Manufacturers National
100,000
State Savings
25,000
Wulfekuhler State
150,000
Manhattan-
Citizens State
50,000
First National
100,000
State
50,000
Union National
50,000
Newton-
First National
50,000
Kansas State
60,000
Midland National
50,000
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KANSAS AND KANSANS
Ottawa-
First National
$100,000
Peoples National
50,000
Security State 25,000
State Bank of Ottawa
50,000
Parsons-
Exchange State
50,000
First National
50,000
Commercial
50,000
State Bank of Parsons
35,000
Pittsburg-
First National
100,000
First State
50,000
National Bank of Commerce
100,000
National Bank of Pittsburg
100,000
State
50,000
Salina-
Farmers National
200,000
National Bank of America 100,000
Peoples State
100,000
Planters State
100,000
Traders State
50,000
Topeka-
Bank of Topeka.
310,000
Central National
200,000
Central Trust Co 200,000
Citizens State
50,000
Farmers National
100,000
German-American State 25,000
Kansas Reserve State
200,000
Merchants National
100,000
Prudential Trust Co. 100,000
Shawnee State
60,000
State Savings 100,000
State
50,000
Farm Mortgage Co., Inc.
100,000
The Shawnee Investment Co
100,000
Wellington-
Farmers State
50,000
National Bank of Commerce.
50,000
Security State
75,000
National
50,000
Wichita-
American State
150,000
Citizens State
50,000
Commercial 10,000
First Trust Co.
100,000
Fourth National
400,000
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KANSAS AND KANSANS
Wichita --
Guarantee Title & Trust Co $250,000
Kansas National 200,000
Merchants Reserve State. 100,000
National Bank of Commerce. 100,000
Security State 50,000
Southwest State
100,000
State Savings
50,000
Stockyards State
10,000
Union State
25,000
Union Stockyards National.
100,000
State
25,000
Vernon H. Branch.
10,000
Winfield-
Cowley County National 100,000
First National
100,000
Progressive State
25,000
The State
50,000
National
50,000
There are Clearing House associations at Atchison, Emporia, Kansas City, Lawrence, Pittsburg, Topeka and Wichita.
The bankers of the state have two co-operative organizations, known as the Kansas Bankers' Association and the Kansas State Bankers' Asso- ciation. The former is the oldest and the strongest, having a memberhip of about 1,000. The Kansas Bankers' Association was organized on Feb- ruary 22, 1887, at Topeka, which is still its permanent headquarters. The membership is made up of both state and national banks. Its officers are: President, T. B. Kennedy, president of the First National Bank, Junction City ; vice president, F. H. Foster, vice president Fort Scott State Bank, Fort Scott; secretary, W. W. Bowman, Topeka; treasurer, George T. Hall, cashier First National Bank, Fowler.
Officers (1916-17) of the Kansas State Bankers Association: Presi- dent, J. L. Raines, president of the Bank of Perry ; vice president, T. J. Sweeney, vice president of the State Bank of Girard; treasurer, R. J. Grover, vice president Union State Bank, Arkansas City.
MANUFACTURES IN KANSAS
Kansas is an agricultural state, but from the time of the first settle- ments there has been of necessity more or less manufacturing carried on. The first manufactories were sawmills and gristmills. For it was necessary to provide lumber for houses and some means to grind grain for bread. The census of 1860 reported sixty-two water-wheels in Kansas. These were turning as many mills-some for grinding and some for sawing. Some of these mills combined grinding and sawing. There were also some mills for both purposes that were run by steam long before the opening of the coal deposits; these were run by the use of wood for fuel. In fact, the first railway locomotives burned wood. Large tracts
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KANSAS AND KANSANS
of land in Wyandotte and Leavenworth counties were divested of timber for fuel for the Union Pacific and Missouri Pacific railroads. The growth of watermills increased with the population, and in 1881 there were 150, and 110 of these were flouringmills.
The opening of the Kansas coal fields increased the use of steam engines in the state for manufacturing purposes. Plants for manufac- turing various artieles required by the people were set up. As railroads were built and coal made accessible to all sections there were found steam plants in the principal towns. These furnished power for grinding grain, sawing lumber, printing, foundries, machine-shops, elevators, and many other institutions of a manufacturing nature.
The census of 1870 shows that there were then fifty-two furniture factories in Kansas. There were also sixty-eight wagon and carriage factories. These had a capital of about $100,000, and they did an aggre- gate business amounting to more than $200,000. Most of them were small in force and capacity, and some of them may have been mere shops too small to be rated as factories. But they were the beginnings-the promise of bigger things. The wagon factory at Leavenworth was selling 6,000 wagons a year by 1880.
Kansas being so largely devoted to agriculture, the demand for har- ness was great. In 1870 there were more than seventy shops in Kansas making harness, and the annual output was valued at more than $400,000. This business increased with the growth of the state and still forms the basis of a prosperous trade.
The grinding of wheat has been one of the principal manufacturing enterprises of Kansas. The state is one of the leading wheat sections of the world, and the development of the milling industry was but a natural consequence of wheat production. Large amounts of capital are invested in flouringmills, and the products of these mills are standard brands of flour all over the world. These mills followed railroad construction and are now found in every part of the state. The value of the output of the flour and gristmills of Kansas is now about $75,000,000 annually.
Some of the largest operations in the manufacturing way to be found in Kansas are connected with her minerals. In 1876 lead and zine were discovered in Cherokee County, Kansas. Additional discoveries were made in 1877. These metals were found over a considerable area, but the industry of mining and smelting them has been confined mostly to the Galena-Pittsburg District. At this time there are immense deposits being uncovered about Baxter Springs. The mineral field extends into Missouri and Oklahoma, and is one of the largest in the United States. The discovery of natural gas in merchantable quantities gave an impetus to the smelting industry, and plants for this purpose were established at many points in the gas fields. In the beginning little attention was given to zine, lead being the metal principally sought. The zine industry has long been predominant, though lead is produced on a large scale in every mining camp. The figures of the census of 1910 are the latest available from the Federal Government. They show that zine products of that year reached a total of $10,857,000. The figures are given under
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KANSAS AND KANSANS
the heading "Smelting and Refining-Zine." Lead seems to be omitted as a separate product. The report of the Kansas Department of Labor furnishes later data. There it is stated that the total value of lead and zine smelted in 1913 was $12,473,818.81, and that there was a decrease for the following year. The immense activity in these industries in the last three years makes it certain that there is now an enormous increase above the high figures of 1913, and that they will probably be doubled in 1917. This, however, is but an estimate.
For the last twenty years Kansas has been producing oil. In 1904 the production amounted to more than 3,000,000 barrels. There was a de- crease for some years due to the low price. The price is now high, and the oil fields have been revived. Larger ones have been discovered. Kansas is steadily increasing her production. Many refineries have been established. In the first stages of the industry two products were mainly relied on-kerosene and gasoline. Now many of the by-products are utilized, and the percentage of gasoline taken from Kansas crude oil has been much inereased. The Kansas Department of Labor gives the fol- lowing statistics for 1913 and 1914:
Total value of products, 1913. $7,610,946.36
Total value of products, 1914. 8,342,565.52
There is an ever increasing demand for oil and gasoline, and the prices for these products are constantly advancing. It must be that the state output of these articles is of much greater value now than that shown in the last official reports available.
The presence of natural gas in the southeastern part of the state caused the introduction of glass factories into that region. These flourished until the supply of gas began to fail. Most of them followed the heavier gas-flow into Oklahoma. For some years their output in Kansas was of great value, but is now decreased.
The manufacture of briek was carly begun in Kansas. At first the process was by hand, and the burning was with wood. A good brick was produced, and many of the first business blocks of Kansas towns were put up of these primitive bricks. As the fuel supply was developed and diversified better bricks were made. They were in greater and greater demand, and they were required in ever increasing quantities, as well as for different purposes-building, street-paving, road-making, and the construction of drains and sewers. Pittsburg, Kansas, first be- came known for the excellence of its briek products. Now there are numerous towns having a heavy output of the various kinds of brick of the finest quality. The brick tile and clay produets of 1914 amounted in value to $1,707,666.54.
In the early stages of her existence, Kansas imported her salt. The traders over the Old Santa Fe Trail had noted the presence of surface salt on the Cimarron Plains, but the presence of enormous beds of salt underlying considerable areas of the state was long unsuspected. The discovery of these sources of supply have been noted in another place. Kansas now supplies her own demand, and, in addition, exports much salt. Her salt plants are the equal of any in the country, and for quality
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KANSAS AND KANSANS
their output cannot be excelled. The value of the Kansas product runs annually well above the million dollar mark.
Kansas has been a large producer of live stock from her first settle- ment. Her rich prairies furnished pasturage for cattle, and they in- creased rapidly. When the sod was subdued corn was long the principal crop. It was the main factor in the production of pork. It was early realized that the great quantity of cattle and hogs raised in Kansas and the adjoining territory would have to be slaughtered and prepared for market at some point within the state. The cities about the mouth of the Kansas River offered the ideal location for meat-packing establishments. In 1868 J. W. L. Slavens built the first packing house there. He was associated with Edward W. Pattison, who had put up the pioneer estab- lishment at Junction City the previous year and had slaughtered there about 1,000 cattle. The Kansas City house packed about 4,000 cattle in 1868. Dr. F. B. Nofsinger purchased the interest of Slavens in the plant in 1869. In 1880 it was conducted by Nofsinger & Co. In that year Jacob Dold & Sons, packers, from Buffalo, New York, bought out the business, and they were among the big packers of Kansas City for many years. In the same year that Slavens entered the business, Thomas J. Bigger, from Belfast, Ireland, built a plant in which to slaughter and pack hogs for the English and Irish markets. The firm of Slavens & Oburn grew out of the operations of J. W. L. Slavens, and it later became the Morrison Packing Company. Plankinton & Armour entered the field in 1870, renting the plant of Pattison & Nofsinger. In 1871 this firm erected its own house, the pioneer establishment of that great firm at Kansas City. It had a packing house at Chicago and one at Milwaukee. John Plankinton withdrew from the firm in 1884, and the great estab- lishment he helped to found is now the property of the Armours. George Fowler, of the Fowler Brothers, packers, of Liverpool, built a packing house at Kansas City in 1881. Swift & Company established a house in 1888, Schwarzschild & Sulzberger Company in 1892, the Cudahy Packing Company in 1900, the Morris Packing Company in 1903, the John Morrell Packing Company in 1903, and the American Dressed Beef Company in 1904. These houses were all established in Kansas City, Kansas, as that was the nearest large distributing point to the cattle ranges and the farms producing hogs. This has become the largest manu- facturing industry in Kansas, the total output of its products running into values of hundreds of millions annually. Kansas City, Kansas, is one of the largest packing centers in the world. Wichita has a number of packing houses and is second only to Kansas City, Kansas, as a packing center. The value of packing house products in Kansas must now total close to $200,000,000 annually.
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