History of Middlesex County, Massachusetts, with biographical sketches of many of its pioneers and prominent men, Vol. III, Part 21

Author: Hurd, D. Hamilton (Duane Hamilton) ed
Publication date: 1890
Publisher: Philadelphia, J. W. Lewis & co
Number of Pages: 1278

USA > Massachusetts > Middlesex County > History of Middlesex County, Massachusetts, with biographical sketches of many of its pioneers and prominent men, Vol. III > Part 21

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" Boston, March 21, 1865.

" This certifies that Hon. David K. Ilitchcock has deposited with me the sum of one hundred dollars towards the eodowment of a Free Public Library in Newton. The above sumi, which is the first subscription to- wards the object named, is subject to call on demand by the treasurer ou completion of such organization as is necessary for the safety and ac- complishment of the object above named.

"Signed H. D. BASSETT, President of the Newton Literary Associa- tion."

This money was paid into the treasury of the Newton Free Public Library, August 12, 1868.

The standing committee of the Association, at a meeting held March 22, 1865, decided that the time had come to take steps to joterest the general public in the matter of a free library, and Dr. Hitchcock, Dr. Bigelow aod G. W. Bacon were chosen as a comunttee to secure the co- operation of certain gentlemeo of standing and property, enlisting their support and influence in the enterprise. A public meeting was held April, 1865, at which Hon. D. K. Hitchcock was elected chairman and presided. Addresses were made by the president, Governor Bullock, Judge Russell and others. Much enthusiasm prevailed, and the matter of a free library was subsequently taken in hand by the citizens aod carried forward to the desired consummation, " The Newton Lite- rary Association," with its library, being merged in "The Newton Free Public Library."-EDITOR.]

HISTORY OF MIDDLESEX COUNTY, MASSACHUSETTS.

CHAPTER VI.

NEWTON-(Continued).

BANKING INTERESTS.

THE NEWTON NATIONAL BANK-The institution which now bears the name of " The Newton National Bank " originated as a State Bank, and was known as the "Newton Bank." It was first projected in the tall of 1847. At that time there was, with the ex- ception of the bank at Brighton, no such institution in this section of the county. The idea of establish- ing a bank in Newton seems to have been first sug- gested by Joseph N. Bacon, the president of the bank to-day. Mr. Bacon was in 1847 engaged in erecting a business block at Newton Corner, and it occurred to him that, in view of the activity in real estate which was making itself evident in the village, a bank would be found very useful to a large class of citizens. This notion he communicated to his friend, Hon. William Jackson, who, after some consideration, became convinced that the scheme was feasible, and together they concluded to carry out the project.

It was decided to try to raise a capital of $100,000. A meeting of prominent landowners and investors was shortly afterward, January, 1848, called at the residence of Mr. Jackson. At this meeting there were present, among others, Capt. Samuel Hyde, Otis Peltee, Capt. Joseph Bacon, Benjamin Dana, John H. Richardson, Levi Thaxter, Marshall S. Rice, Allen C. Curtis, Seth Davis, Amos Tenney, Joseph N. Bacon and William Jackson. This meeting adopted the plan suggested by Messrs. Jackson and Bacon, and $32,000 of stock were subscribed on the spot. This amount was within a short time increased to $42,000, but when this last point was reached the subscription seemed to have come to a standstill. By dint of personal solicitation, however, Mr. Bacon, aided by Mr. Jackson, succeeded, after considerable difficulty, in pushing the figures up to $87,000, some of the original subscribers increasing their amounts against their names now that the success of the enterprise scemed assured.

Meanwhile, the subscribers had beeu considering the questions of site, salaries, etc., and it had been decided that a separate building isolated in a public square, if possible, would be most desirable for safety-for it must be remembered that this was be- fore the day of time-locks-and the site which the bank has ever since occupied was selected as best fitted for a bank building.

The necessary preliminary steps having now been taken, the subscribers organized as stockholders on June 21, 1848, meeting in the vestry of the Eliot Church. The charter was accepted at this meeting, and the following Board of Directors was chosen :

William Jackson, John H. Richardson, Joseph Bacon, Levi Thaxter, Andrew Cole, Allen C. Curtis,

Otis Pettee, Marshall S. Rice, Pliny B. Kingman, Henry B. Williams and Edward Walcott. This board of directors met at the same place on June 26th, and elected William Jackson to be their president. They also appointed committees to engage a cashier and to make arrangements for a banking-house. A week later they voted to erect a building on the present lo- cation. The work of erection of the banking-house was pushed along very rapidly during the summer, so that October found the building ready for occupancy, and on October 10, 1848, the bank opened for business, and in its own house. Daniel. Kingsley, formerly of the Brighton Bank had been chosen cashier, and arrangements were made for procuring clerical as- sistance.

The bank proved a success from the start. Its cap- ital, as has been said, was limited to $100,000, which was finally subscribed in full and was all paid in by November 2, 1848. The first report of the condition of the bank was made at the directors' meeting of March 26, 1849, and showed net earnings of $4472. A divi- dend of three and a half per cent. was accordingly declared and $972 carried to the reserve fund.

It was in this year of 1849 that a somewhat singu- lar incident occurred. Two sheets of bills disappeared most unaccountably. In those days, as in these, the bank-hills were signed by the president and cashier, and it was then not unusual for these officers to per- form this formality at their homes in the evening. Now it so happened that one night President Jackson, after signing a bunch of bills, put them under his pil- low for safe-keeping, but in the morning when he re- turned the bills to the bank he overlooked two sheets of them which he had left in his bed. The disap- pearance of the bills was a deep mystery to the bank officers until some days after, when, on Mr. Jackson's inquiry, his servant-girl confessed to finding the bills and appropriating them. One of the sheets was re- covered and the other was charged to profit and loss. The directors soon after this passed a vote that the bills should at all times thereafter be signed at the banking-house.

The second dividend was four per cent., and $2270 was carried to the reserve, and soon after the stock- holders voted to petition the Legislature for an increase of capital. This was in October of 1849, and in April of the following year, an act of Legisla- ture having been obtained, the directors voted an in- crease of capital of $50,000. This amount was all paid in by June 4, 1850.

Business continued good for many years. Between 1849 and 1859 the deposits gradually rose from $12,000 to $47,000. The amount of paper discounted also increased largely-from $193,000 in 1849, to $284,- 000 in 1859. During these ten years the semi-annual dividends were uniformly four per cent., and the re- serve was constantly growing.

In this period the presidency of the bank twice changed hands. William Jackson, who had been the

NEWTON.

first president, and whohad seen the bank attain suc- cess under his careful management, died in February, 1855, and Hon. Levi Thaxter was chosen to fill the vacancy. Mr. Thaxter's failing health, however, did not allow him to hold the office long, and in the fall of 1857 he resigned, and Joseph N. Bacon, one of the original projeetors and founders of the bank, was elected to the presidency, which position he has ever since held. Mr. Bacon had been a director since 1850, and during Mr. Thaxter's illness had done a large share of the president's work.

The number of directors had originally been eleven, but this number was, in 1849, cut down to nine, in 1852 to seven, in 1855 to six, and in 1857 to five. But in 1860 the number was restored to seven, and has sinee remained there.

The Boston business of the bank had for several years been done through the Suffolk Bank, which was the depository of most of the New England banks. But in 1855 the Newton Bank joined in the general secession of the country banks from the Suffolk, sub- scribed $5000, and subsequently $2500 more, to the capital of the new "Bank of Mutual Redemption," and in 1858 transferred its deposit to this new insti- tution.

In this period of the bank's history came the tem- porary suspension of specie payment, which affected the whole country in 1857. Money had been tight for some time and the suspension had been, to a cer- tain exteut; foreseen. On the morning of October 14th, of that year, Mr. Bacon, the president, went to Boston as usual to make the exchanges, and on ar- riving there learned that the Boston banks were then deliberating whether to suspend or not. Within an hour he learned that suspension had been decided upon. This was before the days of the telegraph and telephone, and the quickest way to get word out to Newton was by railroad. There was no train to Newton for an hour or more, so he took the horse- car for Watertown, and arrived at the bank ten min- utes before it closed for the morning, and half an hour before steam-cars were due. News of the sus- pension of specie payment by the Boston bauks had not yet reached Newton, so that there had been as yet no unnsual demand at the bank, but the news was certain to arrive with the train from the city and unless some action was taken before the re-opening of the bank at two o'clock, it was sure to be stripped of its specie during the afternoon. This being the case, it became necessary to call immediately a meet- ing of the directors. This was not an easy thing to do at that time of the day, when most business men would be in the city ; but after some difficulty a quorum of the Board of Directors was got together in a special meeting, and just before the bank opened for business in the afternoon it was voted to suspend specie payment owing to similar action having been taken by the city banks. Only one deposit had been withdrawn that morning in anticipation of this sus-

pension, and within a few days, when it was seen that it would be but temporary and confidence was partially restored, this deposit was returned into the bank by its owner. Following again the lead of the Boston banks, the Newton Bank resumed specie pay- ment December 17th of the same year.

From 1859 until the breaking out of the Rebellion the bank was still more prosperous. After paying a semi-annual dividend of fonr per cent. for ten years, a dividend of four and one-half per cent. was voted in March of 1859, and this rate was kept up until September, 1861, when it fell off to three per cent. for a time.

The presence of the Civil War is indicated in the bank records only by temporarily reduced dividends, and by the following vote, which was unanimously passed by the directors on April 18, 1861: " In view of the present national emergency, this bank tenders to the Commonwealth a loan of $25,000,"-a monu- ment to the patriotism of the directors and their con- fidence in the government. During the war, as has been said, the dividends fell off. Four successive semi-annual dividends of three per cent. were paid, but were followed in the fall of 1863 by one of three and one-half per cent. and in 1864 by dividends of four per cent.

The National Bank Act of 1863 was not regarded with very general favor by the stockholders, who voted seventy to sixty-six, not to become a national bank under its provisions. The act of 1864, however, met with general acceptance, and in October of that year the stockholders voted unanimously-ninety-nine votes heing cast-to authorize the directors to take. the necessary steps to become a national bank under that act. The directors soon after this voted to organ- ize as a national institution, the articles of association as a national bank and the organization certificate were duly signed, and in January, 1865, the cashier was instructed to forward to the treasurer of the United States a sufficient amount in United States bonds to receive $100,000 in national currency. The " Newton Bank " ceased to exist as such at the close of business March 31, 1865, and commenced business as the "Newton National Bank " on the following day.

The bank now entered upon a long period of great prosperity. Just at the time of its conversion into a national institution an extra dividend of eight per cent. was declared, the balance available for division having been nearly $27,000. This extraordinary div- idend was followed by successive semi-annual pay- ments of five per cent., which continued, with but one slight interruption, for eleven years, from 1865 to 1876. The only instance in this period when the semi-annual dividend fell below five per cent. was in March, 1870, the capital having recently been increas- ed from $150,000 to $200,000. The dividend that month dropped to four per cent., but the wisdom of the increase of capital was soon made apparent by

HISTORY OF MIDDLESEX COUNTY, MASSACHUSETTS.

additional business and a speedy return to five per cent. dividends, on the enlarged capital.

The bank was without the services of a regularly appointed cashier during a part of 1874 and 1875. Daniel Kingsley, who had faithfully and efficiently performed the duties of that position during the twen- ty-six years since the organization of the bank, was, in 1874, so disabled by continued sickness that he was obliged to give up work. In September of that year, at the annual meeting, although still without the ser- vices of a cashier, the directors did not elect any one to take the position, hoping that Mr. Kingsley might yet be able to return to work. This state of things lasted until the spring of 1875, when B. Franklin Bacon, who as messenger and later as assistant cash- jer, had been connected with the bank from its be- ginning was chosen to take the higher post made vacant by the prolonged illness of Mr. Kingsley. Mr. Bacon has held the position ever since and has most acceptably filled the place of his predecessor.

The history of the bank from 1876 to the time of writing, 1890, may be shortly stated. Owing to the large increase in the number of banks, and the low rate of interest obtainable, the dividends fell off, as has been the case with all banks ; but with a better rate for loans the earnings and dividends are once more increasing satisfactorily. The bank has never in its history " passed " a dividend. The semi-annual payments have run as low as two per cent. and once as low as one and one-half per cent., but they are now three per cent. and the earnings are constantly in- creasing. The salary expense account has never been large. On the contrary, in comparison with the amounts paid the officers of similar institutions in the county, the salaries in the Newton Bank have been small. When it began business the amount paid yearly for salaries was $1500. This has been increased as the business has grown and now amounts to $5300 per annum, this sum paying for the services of the cashier, president, bookkeeper and messenger. The banking building has been twice enlarged to meet the needs of the bank and of the savings institution which occupies a wing of the same building. The bank's Boston correspondent is now the Maverick National Bank.

The statement of the condition of the bank at the close of business March 31, 1890, just prior to the payment of the last semi-annual dividend of three per cent., shows the deposits to be $237,291.23; dis- counted notes, $376,094.96 ; surplus, $40,000 on capi- tal of $200,000; circulation, $45,000; dividend No. 50, $6000 ; and undivided profits, $3164.19.

The Board of Directors is composed as follows : Joseph N. Bacon, president ; George Hyde, B. Frank- lin Bacon, Charles E. Billings, Francis Murdock, W. Henry Brackett, John R. Farnum.

THE FIRST NATIONAL BANK OF WEST NEWTON .- The credit for the establishment of the First National Bank of West Newton is due Mr. James H. Nicker-

son. For a number of years he had carried on at West Newton a private bank under the name of " The Exchange Banking Company." The success of this private enterprise was so material, and its business grew so rapidly, that he was led to believe that there was an opening in Newton for another National Bank. He broached the project to a number of the leading residents of Newton, and it was received with so much favor, that he immediately took steps to carry out his plan. The result of his efforts was, that on January 1, 1887, the " First National Bank of West Newton " opened its doors. The capital was $100,000, and its place of business was Nickerson Block, Washington Street, West Newton.

The first Board of Directors was made up as follows : J. E. Bacon, A. L. Barbour, P. C. Bridgham, E. W. Cate, F. E. Crockett, A. R. Mitchell, J. H. Nicker- son, George Pettee, C. A. Potter.

The first president of the bank was Mr. James H. Nickerson, and Mr. Austin R. Mitchell was the first vice-president, Mr. M. L. Parker was the first cashier. The same officers and Board of Directors have been retained to the present time with two ex- ceptions. Mr. J. E. Bacon, after a service of some- thing more than a year, resigned from the Board of Directors, and Mr. B. F. Houghton was chosen to fill his place. Mr. M. L. Parker also resigned his posi- tion after a time, and Mr. E. P. Hatch now holds that office.

The bank has been in operation for so short a period of time, that there is little to say of it except that it has been transacting a profitable and growing business. The number of depositors has rapidly in- creased ; the amount of the deposits at the present time is about $200,000; and the increasing trans- actions of the institution have fully justified the belief of its projector, that the city of Newton was not only large enough to maintain two National Banks, but that the needs of the community required their existence.

THE WEST NEWTON SAVINGS BANK .- Soon after the opening of the First National Bank of West New- ton, it became apparent to the directors of that insti- tution that the establishment of a Savings Bank would be of benefit to the community. Steps were at once taken to secure one, and on March 10, 1887, Austin R. Mitchell, J. Upham Smith, Fred. E. Crock- ett, Edward W. Cate and Alfred L. Barbour were incorporated as the West Newton Savings Bank, with its place of business at West Newton, The bank began business May 1, 1887, with the following list of officers :

President, Anstin R. Mitchell; treasurer, James H. Nickerson ; clerk, Alfred L. Barbour ; trustees, Austin R. Mitchell, Benj. F. Houghton, Dwight Chester, Edward L. Pickard, Prescott C. Bridgham, Samuel Barnard, Fred. E. Crockett, Alfred L. Bar- bour, Edward W. Cate, Adams K. Tolman, George Pettee, Lyman K. Putney.

The officers of the bank still remain the same, ex-

NEWTON.

cepting that Messrs. Pettee and Putney have retired from the Board of Trustees, and their places have been filled by the election of Messrs. C. F. Eddy and F. E. Hunter. The business of the bank has been uniformly successful, the amount of the deposits has reached the sum of $140,000, and its future growth is no longer problematical, but is assured.

CHAPTER VII.

NEWTON-(Continued).

INDUSTRIES AND MANUFACTURES.

BY OTIS PETTEE.

OF the early history of the industries and manu- factures in the town of Newton, Massachusetts, pre- vious to the War of the Revolution, or in the Colonial period of the history of our nation, but little is known beyond a few traditions and an occasional record, or from recollections handed down from generation to generation. Nearly every farm-house had its hand- cards and spinning-wheels, and foot-power looms for providing clothing for the families from wool or flax ; and in the long winter evenings the ordinary duties of farm life would be laid aside, and a miniature fac- tory put in operation by the good housewives and daughters, before the blazing fires of winter upon the hearth, to spin and to knit or weave the fabrics for the next season's wear ; while the sires and the sons would be engaged at the bench, in their little work- shops, making and repairing their farming tools for spring time and summer's work; or very likely some of them were employed in making boots and shoes or other articles required to make the household comfort- able.

The increase in the population of the Colonies brought with it a corresponding increase in the labor of producing supplies to meet the demands. The en- ergies of the early settlers were of necessity put forth to provide shelter, food and raiment for themselves, and a comfortable protection for their cattle and im- plements of husbandry. While the many were en- gaged in agricultural pursuits, a few who were endowed with mechanical iugenuity and inventive powers turned their attention towards better and more rapid and convenient facilities for simplifying the means of production. Power saw-mills were built to take the place of the old hand-pit saw and hewer's axe. Grist-mills displaced the mortar and pestle for grinding corn. Large factory buildings fitted with power machinery sprang up here and there, for the spinning and weaving of cotton and woolen fabrics, thus assigning the spinning-wheel with spindle and distaff to some quiet nook in the farmer's garret, nevermore to be disturbed by the nimble and cunning hands that used them.

In rambling over the town of Newton, and visiting the old historic spots, we find sufficient evidence to warrant the assertion that Newton can well and truly be placed in the front ranks of progress in manufac- turing industries, although but little was done during the Colonial period, beyond the erection of a few saw and grist-mills and forges.

The ruins of an old grist-mill a little to the north of the territorial centre of Newton, and quite near the junction of Walnut and Mill Streets (formerly known as Mill Lane), indicates very nearly the spot where the first power-mill stood. This mill was built on Smelt Brook by Lieutenant John Spring, in 1664, for grind- ing corn and other grains. Mr. Spring was an Eng- lishman by birth, and very early in life came to this country with his parents, who settled in Watertown, where he is supposed to have resided until he removed to Newton about the time he built the mill. He was an energetic man of more than ordinary ability. In addition to his occupation as a miller, he served the town as selectman, representative in the General Court a number of years, and sealer of weights and measures; and in various other ways made himself a valuable and honored citizen of the town of his adoption.

The precise length of time that Mr. Spring operated his mill solely on his own account is uncertain. There is a record previons to 1690 of the transfer of the property to John Spring, Jr., John Ward, Jr., Thomas Park and Captain Isaac Williams, each a quarter part. In the settlement of the Thomas Park estate in 1694, his part was set off' to his son Edward. In the division of Captain Williams' estate in 1708 his son Isaac received his share, who sold it to his brother Ephraim in 1722. John Ward, Jr., by will in 1727 gave his portion to his daughter's husband, Deacon William Trowbridge, who by will in 1744 gave it to his son, Thaddeus Trowbridge. In 1777 the property passed into the hands of Captain Edward Trowbridge. It is impossible to obtain the names of all parties engaged in the mill. A Mr. Brigham and his son George ran the mill in the early part of the preseut century. Their successors were Mr. John Bullough, Messrs. White & Bullough, Mr. John Jen- nings, Mr. Brackett Lord and probably others. This mill being the largest one in town, and centrally located, had a large share of the patronage. It con- tained two sets of mill-stones, a corn-cracker, and other apparatus for doing a large business.

The scarcity of water in the mill-pond in dry sea- sons prompted the owners of the mills to negotiate with the land-owners abutting upon the northerly side of Wiswall's Pond (now Crystal Lake), a short distance southerly and upon a higher level than the mill pond, to open a small canal from that pond to the mill-pond brook, as a feeder to supply the deficiency. This incroachment upon their rights caused the owners upon the other side of the Wiswall Pond to rebel, and after a few years the feeder was discontin- ued and filled up again.

HISTORY OF MIDDLESEX COUNTY, MASSACHUSETTS.

Mr. Bullough had an extensive trade from the home market. Mr. Lord was an operator in Western grains, and shipped large quantities to the Eastern market, to sell in bulk, or to grind for retail trade at the mill. Very soon after the death of Mr. Lord, in 1872, the mill was closed, and finally destroyed by fire, July 5, 1886.

In the Reverend Dr. Jonathan Homer's " History of Newton," published in 1798, we find the following ac- count of a brewery then in operation in the town ; and it is the only record of it that can be found. IIe says: " A very capacious brick building has lately been erected by General William Hull, for brewing ale and strong beer, and is occupied by an eminent English brewer. It is one of the most favorable situ- ations within the State for a brewery, as it is supplied with the purest spring water proceeding through tubes from living springs of superior quality, and from its situation upon the Charles river, it furnishes an easy and cheap conveyance of its manufactures to the capital." The brewery was partly in the ravine northeast from the Nonantum House, and near the Brighton line.

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History of Middlesex County, Massachusetts, with biographical sketches of many of its pioneers and prominent men, Vol. III, Part 21

Author: Hurd, D. Hamilton (Duane Hamilton) ed Publication date: 1890 Publisher: Philadelphia, J. W. Lewis & co Number of Pages: 1278

Author: Hurd, D. Hamilton (Duane Hamilton) ed
Publication date: 1890
Publisher: Philadelphia, J. W. Lewis & co
Number of Pages: 1278