History of Butler County Kansas, Part 28

Author: Mooney, Vol. P
Publication date: 1916
Publisher: Lawrence, Kan. : Standard Publishing Co.
Number of Pages: 946


USA > Kansas > Butler County > History of Butler County Kansas > Part 28


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 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39 | Part 40 | Part 41 | Part 42 | Part 43 | Part 44 | Part 45 | Part 46 | Part 47 | Part 48 | Part 49 | Part 50 | Part 51 | Part 52 | Part 53 | Part 54 | Part 55 | Part 56 | Part 57 | Part 58 | Part 59 | Part 60 | Part 61 | Part 62 | Part 63 | Part 64 | Part 65 | Part 66 | Part 67 | Part 68 | Part 69 | Part 70 | Part 71 | Part 72 | Part 73 | Part 74 | Part 75 | Part 76 | Part 77 | Part 78 | Part 79 | Part 80 | Part 81 | Part 82 | Part 83 | Part 84 | Part 85 | Part 86 | Part 87 | Part 88 | Part 89 | Part 90 | Part 91 | Part 92 | Part 93 | Part 94 | Part 95 | Part 96


CHAPTER XX.


OIL AND GAS.


By N. A. Yeager.


SUPPLY OF FUEL-DEEP TEST IN 1879-OTHER TESTS-FIRST COMPANY ORGANIZED TO DRILL FOR OIL-EARLY GEOLOGISTS REPORTS DISCOUR- AGING-COMPANY ORGANIZED AT AUGUSTA-FIRST GAS DISCOVERED WEST OF THE FLINT HILLS NEAR AUGUSTA-OTHER TESTS AND DIS- COVERIES-OIL DISCOVERED-MARVELOUS DEVELOPMENT.


The municipal growth of Butler county was greatly retarded in the early settlement of the county by lack of fuel for manufacturing pur- poses, coal at that time being all the fuel used. It was impossible to pro- mote manufacturing industries. The coal fields in southeastern Kansas were the only source from which they could draw. While the heavy timbered valleys of the rivers and streams in Butler county afforded ample fuel for domestic purposes, it's use for industrial purposes was not practical.


The citizens of Wichita in 1879 drilled a deep test on Central avenue road. near the Butler county line, to a depth of about 1,300 feet. Their further operations were prevented by reason of the salt water. From that hole a small flow of gas escaped and for several years afterwards children in that vicinity played with the curious phenomenon. It. how- ever, was not regarded as of any importance. This, probably, was the first indication of gas west of the Flint hills.


In 1882 a well was sunk in Riverside, El Dorado, to a depth of 900 feet. An artesian flow of salt water was obtained and a salt factory for the evaporation of this product was operated for a short time. A deep well was sunk at Potwin in 1887. by Charles W. Potwin, who owned a large body of land near that town. This well was drilled to a depth of about 800 feet but nothing of importance was discovered.


In 1878 the first company was organized in Butler county for the purpose of drilling for oil on a location southwest of El Dorado and a town was started and one or two business houses located there. The town was named Oil City. It was never incorporated, however. It was said this location was selected and revealed by a medium to some believers of the occult, as favorable for oil. This well was drilled to a depth of about 200 feet and abandoned for the want of funds and the town disappeared and the location of this hole is only known to a few of


28I


282


HISTORY OF BUTLER COUNTY


the earlier inhabitants of the county. After the discovery of gas and oil in the Chanute and Neodesha fields there was a great deal of discussion, especially in the towns, concerning the probability of discovering min- erals here.


Geologists and experienced oil and gas men were consulted but their reports were very discouraging. The universal opinion of these men was that no gas or oil existed west of the Flint Hills. It became abso- lutely necessary for the further development of the towns in Butler county, that gas as a fuel should be obtained.


At Augusta, a corporation was organized by the business men and farmers in that locality. It was called the Augusta Oil, Gas, Mining and


STAPLETON NO. 1 (ON THE RIGHT). FIRST PRODUCING OIL WELL IN THE EL DORADO FIELD.


Prospecting Company. In 1904, this company proceeded to sink a pros- pect hole near the junction of the Sante Fe and Frisco railroads at Au- gusta. The first hole was sunk to a depth of 1.335 feet, then the con- tractors abandoned the hole on account of water. A second well was drilled to a depth of 1,830 feet. At 1,415 feet a good flow of gas was dis- covered, which can safely be said to be the first discovery of gas west of the Flint Hills. This well was drilled to a depth of 1.830 feet, when con- tractors abandoned it and the hole was never sunk deeper. At the bot- tom of this hole a slight showing of oil was discovered but not of suffi- cient importance to warrant further exploration.


The Augusta Corporation surrendered its franchise to the city and


283


HISTORY OF BUTLER COUNTY


the city voted bonds and took up the development of gas for municipal purposes. During this time a deep test well was sunk in section 23-26-7, south of Rosalia by a Kansas City company. This location was selected by S. J. Hatch, a noted authority on oil and gas geology. This well was abandoned after drilling to a depth of 2,100 feet against the strong pro- test of this noted geologist. Some of the citizens of Augusta, in the meantime, made a study of the geological formations of this county and discovered an anti-cline in this locality, the well defined break was dis- covered east and south of that city on which the city located its gas wells. It might be added that these wells were not by chance, but by a


A BUTLER COUNTY OIL FIELD SCENE.


thorough study of all the geological information that could be obtained at that time.


In 1907 the Wichita Natural Gas Company drilled two test wells one southeast and one southwest of Augusta. A Wichita corporation also drilled a test well to a depth of 1,600 feet in the same year in section 6, Bloomington township, without results. Tests for this gas sand were also made at Benton and El Dorado and Douglass without apparent results. The Wichita Natural Gas Company drilled three wells in the Augusta field, near the city wells, and obtained gas to supply their line to El Dorado. Futher development for gas ceased until 1910 when the Skaer Oil and Gas Company commenced to develop its leaseholds, after


284


HISTORY OF BUTLER COUNTY


which the Wichita Natural Gas Company secured leases and proceded to further develop the gas field. The first deep test for oil was made on the northwest quarter of 21-28-4 by the Wichita Natural Gas Com- pany. At present it extends practically across the county from north to south, the heaviest deposits discovered being in the vicinity of Au- gusta and El Dorado. There are at the present time, June, 1916, about 150 producing gas and 50 oil wells in the Augusta field and about 160 now in process of development and about 200 oil wells with some heavy gas producers in the El Dorado field, with prospecting rigs so numerous that it has the appearance of a forest. Much of the oil in the El Dorado field is found at a depth of from 500 to 700 feet while the best producers are from 2,000 to 2,600 feet in the balance of the Butler county field.


On account of the low price of oil and the monopoly of the leases in the vicinity, the development was greatly retarded. The develop- ment of gas has been lost sight of in the mad scramble for oil and many valuable gas wells have been mudded in, or wasted to procure the more valuable product. and it may be regarded as a safe estimate that suffi- cient gas is now being wasted and used in drilling in the Butler county field to supply the domestic consumption for one-half the population of the state of Kansas.


The extent and value of the oil field is yet unknown and cannot now be estimated and future development can alone determine. The prices paid the land owner for privilege of prospecting, speculating and devel- oping are of such magnitude that the average man looks on with amazement, and all fail to comprehend the wonderful change in condi- tions. The passing from daily toil to affluence is taking place so fast and so frequent among those unaccustomed to wealth that the fairy stories of boyhood, tales of the miraculous and the ordinary brainstorm become tame in comparison therewith and how to invest or what to do with the wealth thus suddenly acquired is a problem difficult for them to solve. No people on earth are more entitled to the prosperity attendant upon this industry than the people of Butler county, none could ap- preciate it more and among no others would humanity be more greatly benefited or a general welfare of the people be advanced to a larger extent.


CHAPTER XXI.


BANKS AND BANKING.


By J. B. Adams.


PRESENT PROSPEROUS CONDITIONS -- NUMBER OF BANKS IN THE COUNTY- FIRST BANK-SECOND AND THIRD BANKS-FIRST NATIONAL BANK- EXCHANGE NATIONAL BANK-FOURTHE BANK IN EL DORADO-ED. C. ELLET-OFFICERS AND CAPITAL-CITIZENS STATE BANK-BUTLER COUNTY. STATE BANK-EXCHANGE STATE BANK-STATE BANK OF LEON-PEOPLES STATE BANK, LATHAM-BANK OF WHITEWATER- PEOPLES STATE BANK, WHITEWATER-TOWANDA STATE BANK-ROSE HILL STATE BANK-ROSALIA STATE BANK-BEAUMONT STATE BANK -CHARACTER OF BANKS-BANK COMMISSIONER.


The banks of Butler county at this date, May 1, 1916, are very pros- perous, and their prosperity is merely an index to the financial condi- tion of the people of Butler county. The banks in El Dorado city hold at this time $1,700,000 of deposits and the banks outside of El Dorado hold at this time the aggregate of $1,600,000, making the total bank de- posits of Butler county foot up the extraordinary total of $3.300,000. With a population of less than 21,000 on March 1, 1915. this makes right at $150 for every man, woman and child in the county.


Very few counties in the United States can point to so large an aggregation of deposits in proportion to the population. It must also be remembered that only a small part of this aggregate is due to the oil field that is just now opening up so wonderfully, since the total bank deposits of Butler county are only $200,000 greater than they were a year ago on this date and a portion of this increase is at the same time due to the good crops of 1915 and the higher prices prevailing for ag- ricultural products in consequence of the European war. In fact, the oil field has created a drain upon deposits through the processes of de- velopment and investment to such an extent that it may be that the entire increase of deposits is due to agriculture and the great cattle in- dustry of this county. Indeed, it is not certain that deposits would not have been larger at this time had the oil field not have been discovered. Of course, it is certain that from the opening of the field enormous in- crease in banking deposits will ultimately result, insuring immeasurably to the benefit and prosperity of all the people of Butler county.


There are now the following banks in Butler county: Eldorado- The Farmers and Merchants National Bank. the El Dorado National


28:


286


HISTORY OF BUTLER COUNTY


Bank, the Citizens State Bank and the Butler County State Bank. Augusta-The George W. Brown & Son State Bank and the First Na- tional Bank. Douglass-The Exchange State Bank and the State Bank of Douglass. Whitewater-The Bank of Whitewater and the Peoples State Bank. Leon-The State Bank of Leon. Latham-The People's State Bank. Benton-Benton State Bank. Towanda-The Towanda State Bank. Potwin-The Potwin State Bank. Rose Hill-The Rose Hill State Bank. Elbing-The Elbing State Bank. Cassoday-The Casso- day State Bank. Rosalia-The Rosalia State Bank. Beaumont-The Beaumont State Bank. Andover-The Andover State Bank.


The first bank established in Butler county was the Walnut Valley Bank, a private bank, organized by J. S. Danford, J. C. Fraker, W. P. Gossard and C. M. Foulks. Mr. Foulks was one of the pioneers of Butler county and a partner of N. F. Frazier in the mercantile business and father of J. C. Foulks, who is now one of the bank examiners of Kansas, and a resident of El Dorado. The bank was first established where C. H. Selig's drug store now stands and was shortly moved across the street on the lot now owned by MI. J. Long, next door south of the present Butler County State Bank. This was in ISZ1. The building, a frame structure, now occupied by James Dodwell, pioneer harness maker, was the bank's home, constructed on the M. J. Long lot. John Campbell, now a printer in San Diego, ,Cal .. was assistant cashier of this first bank of Butler county.


The next bank established in Butler county was the Brown Brothers' Bank at Augusta, no wthe George W. Brown & Son State Bank of Au- gusta. George W. Brown, now deceased and at the time of his death one of the wealthiest, if not the wealthiest, man Butler county ever pro- duced, and his brother, C. W. Brown, now a prominent banker and wealthy citizen of Wichita, came here from Iowa, looking for a location. They came by Stage from Abilene and dropped in on J. H. Betts and N. F. Frazier, who were running one of the pioneer mercantile establish- ments in El Dorado. Finding that a bank had already been established in El Dorado, they went to Augusta where the United States land office was located. Mr. Betts said they were so anxious to get to Augusta that they did not wait for the stage but took their luggage and walked to Augusta and decided to move their Brown Brothers' Bank which they had established in lowa in 1869, and this they did in 1872. The bank afterwards became George W. Brown & Son's State Bank, C. W. Brown selling his interest and moving to Wichita and Warren E. Brown, the only son of George W. Brown, becoming associated with his father. W. E. Brown still owns and runs this bank at Augusta and is recognized as one of the most conservative and successful bankers and business men in Kansas and is perhaps today the richest man in Butler county. The father, George W. Brown, whose name stood always for stability, safety and integrity of the highest order in Butler county, died in February, 1915, at an advanced age .. The third bank established in Butler county


287


HISTORY OF BUTLER COUNTY


was the First National Bank of El Dorado on the conspicuous and his- toric corner of Main street and Central avenue in El Dorado. The pres- ent two-story brick building now occupied by the present Farmers and Merchants National Bank, was erected in 1873 by Gordy & Gault, as the home of the First National Bank, promoted by J. S. Danford and J. C. Fraker and absorbing the Walnut Valley Bank. This bank was sold by Danford to W. P. Gossard and his son, Alvin Gossard, and soon failed. It is said by old timers that the bank was in a failing condition when bought by the Gossards and that they were deceived at the time of the purchase as to the bank's real condition. Feeling aggrieved because he had a small deposit in the failed bank, T. O. Shinn, afterward a lawyer of prominence in Butler county, visited the home of W. P. Gossard, and Mr. Gossard was shot. Mr. Shinn was generally believed to have fired the shot, but was tried and the jury failing to agree, the case was never tried again. The Gossards were fine men of excellent character and were not criticised for the failure by those who were familiar with the conditions and circumstances under which they bought the bank. The fact that they lost all they had themselves was conclusive evidence of their good faith. Another bank failure occuring in Butler county was a small bank at Whitewater, which had been moved over from the neighboring town of Brainerd and failed about the year 1890. G. P. Neiman, now cashier of the Bank of Whitewater, a pioneer of Butler county and one of the safest and most successful bankers and business men in the county, was the receiver of this bank.


The First National Bank of El Dorado, after its failure, was suc- ceeded by the Exchange Bank of El Dorado, founded by S. L. Shotwell, now deceased, and Niel Wilkie, now a respected citizen of Douglass in this county. It afterwards became the historic Exchange National Bank, which, in its palmiest days, had $100.000.00 capital and a large sur- plus. A. L. Redden was president and H. H. Gardner, cashier. Judge Redden was at one time district judge and one of the leading lawyers of Kansas. H. H. Gardner, a native of Canada and a pioneer merchant of El Dorado, was one of the best known bankers in the state, and helped to found and organize the Kansas Bankers' Association in connection with John R. Mulvane of Topeka and a few other prominent bankers of the state. George W. Brown of Augusta was vice president of the bank and J. D. Rearick, one of the clearest headed and shrewdest men ever engaged in the banking business in Butler county, as assistant cashier. F. R. Dodge, an educated gentleman, a fine penman and an expert accountant, was bookkeeper in this bank for twenty years. Failing health caused him to resign and he went back to his old home in Ohio and died a few years ago.


The Exchange National Bank finally passed into the entire control of George W. Brown of Augusta, after many stormy incidents in its career, Mr. Brown as vice president and a large stockholder being com- pelled to come to its resene, in which he was associated with his brother,


,


288


IIISTORY OF BUTLER COUNTY


C. W. Brown. Finally on January 1, 1897, Mr. Brown sold the bank to the Farmers and Merchants National Bank and the two banks were con- solidated. Robert H. Hazlett. N. F: Frazier, E. C. Ellett and H. H. Gardner were the officers and largest stockholders of the Farmers and Merchants National Bank at this time.


The fourth bank established in El Dorado was a partnership pri- vate bank owned by N. F. Frazier and E. C. Ellet, now a banker of May- field, California. It was known as the Bank of El Dorado. Messrs. Frazier and Ellet conducted it most successfully, building it up from $10,000.00 capital to $80.000.00 out of its own earnings. They sold the bank after several years to W. T. Clancy, a wealthy and successful man, who afterwards liquidated it. confining himself to the loaning of his own funds. The sale to Mr. Clancy took place in about 1888. The next bank organized in El Dorado was the Merchants Bank, with Gen. Alfred W. Ellet as president and N. F. Frazier as cashier. This bank became the Merchants National Bank of El Dorado, with Mr. Frazier and Ed C. Ellet the leading stockholders. In 1892 Mr. Hazlett bought a big block of stock in this bank, and it was called the Farmers and Merchants Na- tional Bank, with Mr. Hazlett as president ; G. H. Parkhurst, vice presi- dent, and Ed C. Ellet, cashier. Mr. Parkhurst was succeeded in the vice presidency by H. H. Gardner, who had been cashier of the Exchange National Bank.


Ed C. Ellet. now of Mayfield, Cal., was a leading factor in the banking business of El Dorado for twenty-five years and one of the most public-spirited and patriotic men, as well as one of the ablest, who ever lived in Butler county. Belonging to an old, wealthy and distin- guished family and having a keen interest in all public matters, he was always a leader of great influence and power.


The leading banks of Butler county are now officered as follows : Farmers and Merchants National Bank of El Dorado, $50,000 capital ; $50.000 surplus ; A. J. Holderman, president ; C. C. Shriver, vice presi- dent ; William I. Shriver, cashier : A. B. Ewing, assistant cashier. C. C. Shriver and Wiliam I. Shriver own a controlling interest and are very wealthy men, of fine character. El Dorado National Bank. $50,000 capital ; $23,000 surplus : Robert H. Hazlet. president ; J. E. Dunn, vice president ; Robert H. Bradford, cashier, and S. R. Clifford, assistant cashier. Bobert H. Hazlett and his nephew, Robert H. Bradford, own a controlling inter- est. Mr. Ilazlett is the largest landowner in Butler county ; owns one of the finest and largest herds of registered Hereford cattle in the United States, is president of the American Hereford Bredders' Association and is believed by many to be the richest man in Butler county. He is a shrewd, far-seeing. hard-working business man, giving careful and intelligent attention to his varied and extensive interests and is one of the most public spirited men in Butler county.


Citizens State Bank of El Dorado, $50,000 capital : $28.000 surplus ; R. E. Frazier. president : N. F. Frazier. Jr., active vice president : W. E.


289


HISTORY OF BUTLER COUNTY


Brown, vice president ; C. E. Thompson, cashier, and F. H. Cron, assist- ant cashier. R. E. and N. F. Frazier, Jr., own a controlling interest in this bank and are sons of N. F. Frazier, who died on August 8, 1907. N. F. Frazier came to El Dorado in 1868, and was first associated with J. H. Betts in the mercantile business, but soon devoted himself largely to banking, and at the time of his death, had accumulated one of the largest estates ever left in Butler county. The writer was associated with him for many years in the banking business in El Dorado. His interests were numerous and most extensive; he was an indefatigable worker ; a man of indomitable purpose and courage ; a stickler for fidel- ity and loyalty who made his word as good as a bond and required others to do the same ; and was not only considered so by many, but was one of the shrewdest, keenest, boldest and safest business men and bank- ers that the State of Kansas ever produced. I pay this tribute to his memory in this special way, lest such an opportunity may never again present itself for my so doing.


Butler County State Bank of El Dorado. $25.000 capital ; $7,000 sur- plus ; C. L. King, president ; E. F. Adams, vice president ; J. B. Adams, cashier ; H. F. Ferry, assistant cashier; L. D. Hadley, teller. J. B. Adams owns a controlling interest in this bank, which was founded on June 5, 1909, and is the last bank to be established in El Dorado. George W. Brown & Son State Bank of Augusta, capital $25,000; surplus. $25,000; I. M. Brown, president; W. E. Brown, cashier; R. A. Haines. assistant cashier. W. E. Brown owns a controlling interest in this bank. a fuller history of which is heretofore given. First National Bank of Augusta, $25,000 capital ; $7,000 surplus ; F. H. Penley, president, and W. A. Penley, cashier, is a substantial institution, with a constantly in- creasing business.


Exchange State Bank of Douglass, $25.000 capital ; $8,000 surplus ; D. P. Blood, president; W. E. Brown, vice president; C. P. Blood, cashier ; A. B. Chauncey, assistant cashier. D. P. Blood and his son, C. P. Blood, own a controlling interest. D. P. Blood, the president, is one of the pioneers of Butler county. He first established himself in the mercantile business at Augusta and afterwards at Douglass and was very successful. He is a large landowner and one of the very wealthy men of Butler county. By close attention to business, sound judgment. high character and absolute fidelity and integrity, he has built up a for- tune and gained the respect and confidence of the people of his com- munity and county. State Bank of Douglass, $10,000, capital ; S10,000. surplus ; J. E. House, president ; J. B. Adams, vice president : J. A. Mid- dlekauff, cashier ; and O. P. Cottman, assistant cashier. J. A. Middle- kauff owns a controlling interest in this bank and is one of the safest and most conservative as well as successful bankers in Butler county. He devotes himself exclusively to banking and stands very high among the bankers of the county.


State Bank of Leon, $10,000 capital : $5.000 surplus: M. W. Mar-


(19)


1


290


HISTORY OF BUTLER COUNTY


shall, president. and W. S. Marshall, cashier, own a controlling interest. The bank has its home in the Marshall building, built in honor of the father. 11. H. Marshall, now deceased. who was a pioneer, a man of great business capacity and unswerving integrity and who accummulated in his lifetime one of the largest estates ever left in Butler county. The Marshall building is one of the finest in Butler county. although located in the fourth town in size.


Peoples State Bank of Latham, capital, $10,000; surplus, $10.000; J. P. Garnett, president, and J. Ed Rankin, cashier, own a controlling interest and are among the best business men in Butler county with an institution of which they may well be proud.


Bank of Whitewater. $50,000. capital and surplus; is one of the strong banks in Butler county; I. H. Neiman, president ; George P. Nei- man, cashier, and J. D. Joseph, assistant cashier, make a strong combina- tion. I. H. and G. P. Neiman are pioneers of the county, large land- owners and business men of exceptional character and capacity. Mr. Joseph is, at present, State senator from Butler county, and is not only a splendid banker but a splendid public man of unusual ability and unques- tioned patriotism.


Peoples State Bank. Whitewater; capital, $15,000; surplus, $10,000; W. M. Finch, president; G. B. Hanstine, cashier. W. H. Barker, one of the substantial men of the community, is vice president. The bank enjoys a growing and prosperous business. Benton State Bank, Ben- ton ; capital. SI0,000 ; surplus, $16,000; is one of the strong small banks of the county ; James Parks, president ; L. L. Lane, vice president ; Clyde McGrew. cashier. Mr. McGrew, the cashier, is recognized as one of the most careful, able and successful bankers in the county.


Towanda State Bank, capital. $10.000; surplus. $10,000; J. C. Kull- man, president; A. C. Higgins, vice president; F. W. Robison, cashier. Mr. Robison belongs to one of the oldest and richest families in the county and is one of the best business men in the county. He gives close personal attention to his business, and his bank is constantly grow- ing Potwin State Bank, capital, $14,000; surplus, $15,000; J. S. Joseph, president; H. A. Kaths, cashier ; J. O. Litner, assistant cashier. This bank was founded by William I. Joseph in 1904, and is a very strong institution. The president. J. S. Joseph. is one of the wealthy and able business men of the county, and is widely known for his integrity and ability.




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.