Professional and industrial history of Suffolk County, Massachusetts, Volume II, Part 38

Author: Davis, William T. (William Thomas), 1822-1907
Publication date: 1894
Publisher: [Boston, Mass.] : Boston History Co.
Number of Pages: 952


USA > Massachusetts > Suffolk County > Professional and industrial history of Suffolk County, Massachusetts, Volume II > Part 38


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" This loss incident to the average transactions of savings banks is especially and wantonly aggravated, not by those who from time to time deposit their surplus carnings only to be withdrawn in case of absolute necessity, but by those who abuse this charity by temporarily depositing large sums in several banks when interest is low and stocks high, and withdrawing as soon as the rise of money and the decline in stocks allow of a more profitable investment.


"To prevent this abuse of savings banks, imposing extra work and responsibility upon unpaid benevolent trustees, and entailing certain loss of assets, no person is allowed to deposit in more than one bank in Great Britain, under pain of forfeiting his deposit, and to prevent fraudulent trusts, no person making a deposit as trustee can withdraw such deposit except in the presence of and with the receipt of the other party. To lessen the loss consequent upon immediate withdrawals and immediate conversion of stocks into cash in times of depression, notice is demanded proportionate to the amount to be withdrawn.


" These are wise precautions, tending to limit the privileges of sav- ings banks to those who need them, and tending to secure to those who withdraw and to those who leave their deposits, repayment of principal and interest; but there still remains the fact that savings banks are peculiarly exposed to losses without compensating gains.


"The tariff of an insurance company -fire, life or marine-is ad- justed so as to leave a profit on an average of gains and losses, founded


406


SUFFOLK COUNTY.


upon the statistics of many years; the value of their investments is not affected by fire or death or disasters by sea, and yet the fire companies with all their accumulated profits could not withstand a conflagration, nor conld the life companies endure a prolonged visitation of the cholera. Much less could any savings bank, without any accumulated profits, and whose range of investments, necessarily limited, and forced upon the market when money is tight, declining rapidly with every sale, cash any considerable portion of its deposits, principal and interest, and at the same time guarantee principal and interest to the remaining depositors, unless a considerable reserve fund be accumulated ont of the interest received.


"A surplus or reserve fund is needed to guard against insolvency from the fluctuations of values and the normal conditions of a savings banks, without anticipating any prolonged panic which might exhaust any reserve the banks would deem reasonable, and drive the savings banks to suspend, as did some of those in Holland a few years ago, owing to the great decline in government stocks; or to demand an ex- tension, as in France in 1848.


"We must legislate for the good of the whole, not for individuals, and a large reserve is essential for the safety of the whole body of de- positors.


" The maximum deposit upon which interest is allowed abroad ranges from $200 in the French to $750 in the English banks. Here it has gradually run up from $500 to $1,600, and while the latter limit seems unnecessarily large, if a low rate of annual dividends is insisted upon and fraudulent trusts prevented, the prowlers who prey upon this charity may be driven away and this advanced limit only availed of by persons who deserve the privilege. In New York one rate of interest is allowed on all sums not exceeding $500, one per cent. less on surplus over $500 and up to $1,000, and one per cent. less on the excess over $1,000.


" The defalcations in the savings banks in Great Britain from 1844 to 1857 amounted to $1,330,000, of which the depositors lost about one- half, the balance was made up by government and the trustees, but the distrust and recklessness caused by these freqnent and wide-spread frauds was out of all proportion to the pecuniary loss. As the most effectual safeguard against malversation, it was enacted that not less than two persons, being trustees, managers, or paid officers employed for this specific purpose, shall be present on all occasions of public


1847


107


SAVINGS BANKS.


business and be parties to every transaction of deposit and repayment so as to form a double check on every cash payment, and this pre- caution, practiced in many of our savings banks, should be enforced in all of them.


" The responsibility of trustees has been the subject of much diseus- sion and legislation in England, where their function is limited to superintendence and to the faithful transfer of the funds to and from the Government Commission, and not extended, as here, to their judicious investment. At one time trustees were made pecuniarily liable to a limited extent, but at present, as in 1828, they are only accountable for wilful neglect or default.


" The savings banks in Great Britain are subject to frequent unap- prized audits and inspections, a process more simple and practicable there than here, because limited to the accounts and cash, the funds being, as I have stated, in the custody of a government commission, but all the more important here as including the value of investments, and perhaps practicable if a board of at least three upright and com- petent commissioners are selected and adequately compensated for the service.


" An inspection and comparison of the books of depositors with the bank ledgers has been urged as the only thorough mode of testing the accuracy and verity of the entries, but although most desirable it was found to be 'impracticable except in very small banks. A uniform system of bookkeeping is insisted upon in England, and should be prescribed here, in the interest of the banks, the inspectors and de- positors."


William Phillips, the first president of the Provident Institution for Savings, was succeeded by Gardiner Greene. The presidents succeed- ing the latter in order of service have been as follows: Jonathan Phil- lips, Peter C. Brooks, William Appleton, James Savage, Francis C. Lowell, John A. Lowell, James S. Amory, William Perkins and Col. Henry Lee, the last named having served since 1881. James Prince continued as treasurer until his death, February 14, 18221. His suc- cessors, with time of service, have been Elisha Tichnor, four months; Gardiner Greene, three years; James Savage, fourteen years and six months; P. Wainwright, thirty-five years, and C. J. Morrill, the present treasurer, with nineteen years of service. The secretaries to the board of investment who followed Mr. Savage, the first official in that capa- city, have been James Bowdoin, Benjamin Guild, Robert C. Winthrop,


408


SUFFOLK COUNTY.


William Parsons, Edward Wigglesworth, Amos A. Lawrence, Charles Brown, William T. Andrews, Henry Lee, Francis E. Parker, William S. Dexter, Edward I. Browne and Henry Parkman, the last named having served since 1882.


The following figures, compiled from the records of the bank, will show the growth of the Provident Institution for Savings from July, 1817, to the same month of 1893:


Open Accounts.


Amount Due Depositors.


Open Accounts.


Amount Due Depositors.


1817, July.


S 20,038.00


1856, July


28,334


$ 5,454,413.74


1818,


106,080.19


1857.


29,177


5,913,399.18


1819,


187,315.92


1858,


28,239


5,793,758,50


1820,


304,956.19


1859.


30,039


6,312,$19.09


1821,


481,839.57


1860.


31,594


6,805,843.03


1832,


610,459.48


1861,


30,803


6,809,061.14


1823.


503,540.15


1862,


30,468


6.861,466.94


1824,


570,675.88


1863.


32,678


7,605,720.55


1825,


678,854.08


1864,


32,998


8,076,800.35


1826,


715,435.67


1865.


31,883


1,922, 181.34


1827,


+02,817.23


1866,


31,52.1


7,986,417.24


1828,


879,365.07


1867,


32,443


8,615,562.41


1829,


7,033


947,594.53


1868,


31,758


9,251,278.51


1830,


7.744


1,055.439.84


1869


32,406


10,236,344.91


1831,


8,618


1,227,267.47


1870,


32,996


11,165, 938.21


1832,


9,742


1,441,932.92


1871,


33,394


12,019,134.40


1833,


10,790


1,618,492.18


1873,


34,222


13,222, 257.31


[83-1,


11,495


1,686,202.17


1873


32,330


12,887,157.15


1835,


12,425


1,860, 055.25


1874,


31,863


12,881,510.41


1836,


13,303


2,036,287.03


1875,


22,943


18.750,509.16


1837,


12,874


2,010,376.31


1876,


38,789


16,561,819,56


1838,


12,960


1,966,301.91


1877,


42,631


18,619,916.04


1839,


13,751


2,101,931.97


1878,


4.1,308


18,128,911.44


1840,


13,760


2,143,823.91


1879.


49,201


19,682, 188.28


1841.


14,961


2,887,018.61


1880,


56,519


22,438,946. 14


1842,


15,025


2,360,212.41


1881.


61,051


23,962,550.56


1843,


15,328


2,887,356.61


1882,


63,480


24,416,963.87


1844,


17,716


2.735,598.09


1883,


65,327


24,830,037.45


1845,


19,007


3,023,742.03


1884


67.542


25, 410,954.50


1846,


19,295


3,098,295.70


1885,


69,228


26,027,344.33


1847,


20,245


3,302,510.85


1886,


1848,


21,339


3,336.361.30


1887,


72,938


27, 120,866.35


1849,


20,393


3,269,991.77


1888.


$4,151


27,818,444.37


1850.


21,347


3,466,717.92


1889,


$6,530


$8,170,738.94


1851,


23,312


3,916,026.50


1890.


80,059


29,834,768.29


1852,


24,552


4,279,619.18


1891,


82,7012


30,895,566.47


1853,


27,959


5.032,579.55


1892,


86,952


32.733,364.53


1854,


28,867


5,383,864.78


1893,


$9,401


31.160,482.39


1855,


27,441


5,140,673.63


26,548,203.29


400


S.ITINGS BANKS.


INSTITUTION FOR SAVINGS IN ROXBURY.


The Institution for Savings in Roxbury and Its Vicinity was incor- porated February 22, 1825. The persons named in the act of incorpo- ration were Nathaniel Dorr, Charles Davis, Jonathan Dorr, Isaac Dorr, John Lemist, Enoch Bartlett, Eliphalet Potter, John Bartlett, Samuel J. Gardner, Joseph Curtis, Ralph Haskins, Samuel Guild, Samuel Doggett. John Prince, David S. Greenough, Ebenezer Crafts, Stedman Williams, Benjamin Weld, William H. Spooner, Benjamin Billings and Jonathan Richards. David S. Greenough was chosen the first presi- dent of the bank and John Bartlett treasurer. The first board of trustees was composed of A. A. S. Dearborn, Nathaniel Dorr, John Lemist, Edward Bartlett. Samuel G. Gardner, Ralph Haskins, Benja- min Billings, Ebenezer Seaver, Joseph Harrington, Samuel Guild, Samuel Doggett, Ebenezer Crafts, Benjamin Weld, William N. Spooner, Henry Gardner, Jonathan Richards, David A. Simmons. Sherman Leland and Jonathan Richards.


Following will be found the names of all who have served as presi- dents of this institution from the beginning to the present time with period of service :


David S. Greenough .1825 to 1826.


John Lowell,


1826 " 1834.


Nathaniel Curtis. 1834 " 1838.


John B. Jones. 1838 " 1854.


Samuel Guild. 1854 - 1862.


Almon D. Hodges. 1862 " 1815.


Moses H. Day.


184 - 1880.


Arthur W. Tufts.


.1880 - 1892.


John D. Williams 1892 to present time.


The treasurers have been as follows:


John Bartlett. 1825 to 1829.


P. G. Robbins 1829 - 1833.


Charles Hukling 1833 - 1834.


D. A. Sigourney 1831 - 1813.


William Whiting 1843 - 1867.


Edward Richards. 1864 to present time.


'The present officers of the bank not already named are Jonathan French, Walter H. Cowing, and Augustus Richardson, vice-presi 32


410


SUFFOLK COUNTY.


dents; Robert G. Molineanx, assistant treasurer; and Jonathan French, John T. Ellis, William H. Brockett, Augustus Richardson, Phineas B. Smith, Alonzo W. Folsom, Louis Arnold, John D. Williams, Samuel Little, Danforth C. Hodges, W. F. Day, Solomon A. Bolster, Walter HI. Cowing, Atherton T. Brown, and John G. Stetson, trustees.


The condition of this bank, as reported October 31, 1892, was as follows:


ASSETS.


Public funds as per schedule


91,676.43


Loans on public funds


55,760.00


Bank stock as per schedule


210,067.09


Loan on bank stock 3.000.00


Railroad bonds as per schedule


640,500.00


Loan on railroad stocks


50,000.00


Railroad notes


-175,000.00


Real estate by foreclosure


267.26


Loans on real estate


1,790,890.51


Loans on personal security


1,910,300.00


Loans to counties, cities or towns (notes)


282,000.00


· Deposits in banks, on interest


219,076.62


Cash on hand


· 37,483 21


Total


$5,266,021.15


LIABILITIES.


Deposits


$5,528,889.20


Guaranty fund


207,500.00


Interest account


29,631.95


Total


$5,266,021.15


The number of open accounts at date of foregoing report was 14,31 :. The amount of deposits for the year ending at that time was $1,306,- 829,00, representing 14,629 deposits. During this same period, $1,169,869,22 was paid ont to depositors.


WARREN INSTITUTION FOR SAVINGS.


The Warren Institution for Savings stands twelfth among the 184 savings banks of the State in years, it having been chartered in 1829. It is the eighth as regards the total amount of its deposits, and it can also be said of the Warren Institution for Savings that it has never closed its doors to depositors, and never, since it was incorporated, passed a semi-annual dividend or called in a loan, except for breach of its condi- tions on the part of the borrower. Its management from the beginning


411


SAVINGS BANKS.


has been conservative, so much so, that at times it has been termed "old fogy," but the history of the institution shows the wisdom of this careful management of its finances, and among the savings banks of the State none is considered more safe or substantial than the Warren In- stitution for Savings, of Charlestown. Many of our prominent citizens have been connected with it since it was chartered, and are to-day, their counsel so shaping its affairs as to promise a long continuance of the able management of the past and present.


Warren Institution for Savings was organized in 1829, and was the first savings bank established in Charlestown. There are in existence to-day in the State but eleven savings banks whose charters antedate that of the Warren, and they are the Provident of Boston, established 1816; Salem Savings Bank, established 1818; Newburyport Savings Bank, established 1820; Roxbury Savings Bank, established 1825; New Bedford Savings Bank, established 1825; Lynn Institution for Savings, established 1826; Springfield Institution for Savings, established 1827; Worcester County Institution for Savings, established 1828; Provident Institution for Salisbury and Amesbury, established 1828; Fall River Savings Bank, established 1828; and Plymouth Savings Bank, estab- lished 1828.


The act incorporating the Warren Institution for Savings was passed by the House of Representatives February 20, 1829, and received the signature of Governor Levi Lincoln the following day. In the act the names of the incorporators are given as follows: David Stetson, John Sweetser, Loammi Kendall, Elisha L. Phelps, Joseph Hunnewell, John M. Robertson, Lot Pool, James K. Frothingham, Henry Jacques, Simeon Flint, Edward Adams, Joseph Carter, Thomas Pike, Reuben Hunt, John Gregory, Benjamin Brintnall, and Benjamin Whipple.


April 28, 1829, the first election of officers was held, which resulted as follows: President, Timothy Walker; vice-presidents, Isaac Warren, Chester Adams, Abraham R. Thompson, Thomas Kettell, David Dev- ens, James K. Frothingham; trustees, David Stetson, Reuben Ilunt, David Fosdick, Geo. Bartlett, John Soley, Oliver Holden, John Harris, Benjamin Whipple, Thomas J. Goodwin, Henry Jacques, Isaac Mead, Leonard M. Parker; treasurer, Thomas Marshall; secretary, John J. Fisk.


In the sixty-three years that have elapsed since the first board of of- fieers assumed the direction of the affairs of this institution, many changes have taken place. Of the first board not one is alive to-day,


-112


SUFFOLK COUNTY.


neither is there a single survivor of the incorporators, or of any of the members of the institution admitted prior to 1839. In 1839 there were admitted to membership James Dana, James Adams, Charles Thomp- son, William Tufts, Edward Lawrence, Richard Frothingham, Henry K. Frothingham ; the last named is the only one of these now living.


Timothy Walker, the first president, held office until 1835, and was succeeded by John Skinner, who held the office until 1840. He was succeeded by Benjamin Thompson, who held the office until 1843. Chester Adams held the office from 1843 to 1850, and Nathan A. Tufts from 1850 to 1855. In 1855 James Adams was elected president, and he held the office a quarter of a century, until his death in 1880. Tim- othy T. Sawyer, the present incumbent of the office of president, was elected Mr. Adams's successor in 1880, he having been a member of the institution since 1846.


The first treasurer of the institution, Thomas Marshall, held the of- fice until 1843, and was succeeded by Henry Jacques, who was treas- urer four years-until 1842. Samuel P. Skilton next held the office three years, 1844, '48 and '49, and Henry L. Jacques in 1849, '50 and '51. He was succeeded by Joseph F. Tufts, who held the office in 1831, '52, '53 and '54, and next came John Skilton, who held the office eleven years, from 1854 to 1865. In 1865 George F. Tufts was elected treas- urer, and he still occupies that position.


The first secretary of the institution, John J. Fisk, held the office ten years, from 1829 to 1839, and he was succeeded by Thomas Browne, jr., who held the office in 1839, '40, '41 and '42. Henry Jacques then held the office one year, and he was succeeded by James K. Frothingham, who held the office from 1843 to 1864. Geo. F. Tufts then held the of- fice one year, 1864 to '65, and then being elected treasurer to succeed John Skilton, Geo. S. Poole was elected secretary, and he now holds the office, to which he was elected in 1865.


The following table, giving the number of depositors and the total amount of deposits at intervals of five years since the institution was incorporated, goes to show the gradual increase of the business since the first year of its existence :


Depositors.


Full Amount of Deposits.


1830


133


S 6,198.29


1835


֏11


83,101.41


1840


999


142, 170.62


1845


1,275


188, 160.94


1850


1,640


265,780.91


413


SAVINGS BANKS.


Depositors.


Full Amount of Deposits.


1855


3,028


610,948.57


1860.


-1,261


1,210,412.12


1865


5,749


1,601,525.85


18:0


2,796,978.27


1875


10,803


3,959,616.76


1880


11,279


1,239,927.15


1885


14,172


5,776,491.49


1890


16,288


6,908,853.52


1892


17,660


7,933.086.68


The following statement, submitted to the board of trustees, Octo- ber 1, 1892, shows the present condition of the institution :


DR.


Mortgages


83,686.500.00


Bank stocks


204,700.00


Cities and towns


1,109,830.00


U. S. bonds


250,000.00


Railroad bonds


550,000.00


Individual loans with collateral


1,825,450.00


Real estate


50,000.00


Cash


247.773.24


Expense account


8,833.44


Total


$7,933.086.68


('R.


Deposits_


$7,345.942.02


Guaranty fund


319,000.00


Interest account


97,558.04


Profit and loss


109,380.06


Rents


1,206.56


Total


$7,933,086.68


The present membership of the Warren Institution for Savings is 106, and its officers are as follows, the date against each name denot- ing the year he became a member of the institution: President, Tim- othy T. Sawyer, 1816; vice-presidents, Henry K. Frothingham, 1839; George Hyde, 1816: Henry Lyon, 1846; John Stowell, 1801 ; Isaac P. T. Edmands, 1868; Nahum Chapin, 1866; trustees, Thomas R. B. Ed- mands, 1868; John S. Whiting, IS;1; Charles E. Daniels, 1866; Nel- son Bartlett, 1845; John Turner, Is80; Charles F. Fairbanks, 1868; Thomas G. Frothingham, 18:0; Everett Torrey, 1868; Charles R. Lawrence, 18:5; William R. Austin, 1886; Nathan F. Tufts, 18;5;


414


SUFFOLK COUNTY.


Henry II. Chandler, 1820; treasurer, George F. Tufts; secretary, George S. Poole.


The present board of investment, which has, subject to the approval of the board of trustees, the entire charge of the finances of the institu- tion, consists of Timothy T. Sawyer, John Stowell, Nahum Chapin, Thomas R. B. Edmands, Nelson Bartlett, John Turner, Charles F. Fairbanks.


The membership of the institution is not restricted to depositors, section 2 of article I of the by-laws reading as follows: "Any citizen of this State may be elected by ballot a member of the corporation at the annual meeting, the name of such person having been proposed in writing to the secretary by a member of the corporation one month previous to such meeting ; and any person may cease to be a member by filing a written notice of his intention so to do with the treasurer three months at least before such meeting. No person shall continue to be a member after removing from the State, or becoming an officer in another such corporation."


The following incident goes to illustrate the benefit of savings banks and the rapidity with which deposits will increase if allowed to remain undisturbed. December 15, 1830, there was deposited in the Warren Institution for Savings by a person the sum of $12. Since that time it has remained undisturbed, the depositor neither adding to it or with- drawing any portion of the deposit. The interest has been compounded semi-annually, and to-day there stands to the credit of this depositor the handsome sum of $383.40.


Hon. Timothy T. Sawyer, the president of the Warren Institution for Savings, isa native of Charlestown, where he has always lived since his birth, January 7, 1817. He was educated in its public schools, after leaving which he entered the employ of an uncle who carried on the hardware and ship chandlery business in Boston, and afterwards car- ried on the business himself for a number of years. In 1842 he cm- barked in the ice business as a member of the firm of Gage, Hittenger & Company, afterwards Gage, Sawyer & Company. He remained in this business until 1860, and then withdrew from active mercantile pursuits. Mr. Sawyer has always taken an active interest in matters calculated to promote the welfare and prosperity of his native place, and has been called by his fellow-citizens to fill many places of public trust. When Charlestown was a town he was a member of the Board of Assessors, of the Committee on Finance, and for several years a mem-


115


SAVINGS BANKS.


ber of the School Committee. After Charlestown became a city he served several terms in the Common Council and was elected president of that body in 1854, but declined the honor. In December, 1851, he he was elected mayor of the city, and served in 1855, '56 and '5 ;. Ile has also represented the city in both branches of the Legislature. Hle was chairman of the School Committee nine years, commencing in 1855. He was president of the Mystic Water Board for several years previous to annexation, and after the cities of Charlestown and Boston were joined he held the office until the Mystic and Cochituate Water Boards were joined and made the Boston Water Board, when he was appointed chairman of that board and held the office three years. He was pre- viously appointed a member of the Boston Fire Commission and held the office three years, and in 1882 he was again appointed a member of the Boston Water Board by Mayor Green, and held the office one year.


Mr. Sawyer was largely instrumental in establishing the Charlestown Public Library, which was opened in January, 1862, in the upper story of the building now occupied by the Warren Institution for Savings. He was president of the board of trustees of the library from the date of its organization until 1843, when it passed into the hands of the city of Boston. Mr. Sawyer retains a lively interest in the library and visits it frequently. He was the first president of the Charlestown Training- field School Association, in which organization he still takes much interest. Ilis connection with the Warren Institution for Savings dates from 1816. He has been a member of the board of trustees for thirty- seven years and of the board of investment thirty-four years, of which board he is now chairman, by virtue of his office of president, to which he was chosen in 1880, to fill the vacancy caused by the death of James Adams, who devoted twenty-five years of his life to promoting the prosperity of the institution.


The late Mr. Nathan A. Tufts was a member of the board of trustees twenty-nine years; Mr. James Adams forty years; Mr. Edward Law- renee forty-two years.


George F. Tufts, the treasurer of the institution, is also a native of Charlestown. In early life he was for some years in the employ of Lane, Lamson & Company of Boston, French goods importers, and afterwards with James Ilunnewell in the Sandwich Island trade. In 1855 Mr. Tufts visited the islands and made a trip round the world with the son of Captain Charles Brewer (Charles Brewer & Company). He has occupied his present position of treasurer for twenty-seven years.


116


SUFFOLK COUNTY.


George S. Poole, the secretary, is a brother of William F. Poole, the distinguished librarian, formerly of the Boston Athenaum, now the Newbury Library of Chicago. George S. Poole came to Charlestown from Peabody, Mass., in 1861, and was the first librarian of the Charles- town Public Library. While holding this position he was appointed an assistant in the Congressional Library. Washington, and served there two years until his election to the office he now fills in the bank, and which he has held for twenty-seven years.


THE SUFFOLK SAVINGS BANK FOR SEAMEN AND OTHERS.


The original title of this bank was The Saving Banks for Scamen in Boston, under which it was granted a charter by the Legislature March 4. 1833. It was the last bank incorporated prior to the passage of a general law relating to savings banks, and it is a peculiar fact that the word " bank " appears for the first time in connection with corporations of this character in its title, all previous charters having been granted to savings institutions. The first officers of the bank were: Pliny Cut- ler, president ; Daniel C. Bacon, vice-president : Thomas K. Davis, secretary; Samuel H. Walley, jr., treasurer; George Hallet, William W. Stone, George W. Crockett, James Means, Josiah W. Blake, Charles Sendder, Peleg Churchill. Charles H. Brown, William B. Reynolds, Benjamin Seaver. William Worthington, Benjamin Rich, Thomas Vose, William Goddard, Alfred Richardson, Enoch Train, William Sturgis, Thomas Motley, Newton Willey, Lot Wheelwright, Nathaniel Dana, William W. Motley, Phineas Sprague, and Henry K. May, managers.




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