USA > Maine > Kennebec County > Waterville > The centennial history of Waterville, Kennebec County, Maine, including the oration, the historical address and the poem presented at the celebration of the centennial anniversary of the incorporation of the town, June 23d, 1902 > Part 32
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the elder Mr. Emery purchased a building which stood upon the college campus and had been used as a workshop by the students, and moved it to the south side of North street, just west of Hay- den Brook. Here he began the business of pulling wool from sheep's pelts, and here it has been continued to the present time. From about 1860 to 1892 the business of tanning the skins was also conducted. From 3,000 to 10,000 skins were handled annu- ally and from three to five men employed.
About 1840, and for several years thereafter, B. F. Blanchard employed from twelve to fifteen men slaughtering cattle and dressing and shipping the meat. This went chiefly by boat to Boston. The tallow also was rendered and shipped to the same market. The establishment was located on the bank of the Ken- nebec a short distance below the bridge, and near the present site of the wheel-house of the Lockwood Company's No. 1 mill.
The manufacture of carriages and sleighs was once carried on quite extensively in Waterville. Purmot Hill, whose des- cendants continue to reside among us, conducted such a business from 1820 to 1873, on the east side of Main street, nearly oppo- site the location of the central fire station. Some eight or ten men found constant employment in Mr. Hill's shop.
About the same time Samuel Stilson was engaged in the same line of business on the north side of Temple street, about where Augustus Otten's bakery now stands. Excellent work was done in both these establishments and the product was readily disposed of at home and in neighboring towns.
For ten or twelve years Waterville supported a manufactory where men's thick boots were made. Dunn & Harvey were the first proprietors, beginning work about 1849 or 1850. They car- ried on the business in a large wooden building on the present site of the Masonic Block, on the south side of Common street. They employed about twenty-five men in the shop and as many more outside. The senior partner, Wm. Ellery Dunn, died about 1857 when J. C. Merritt and Company purchased the business. The latter firm continued till about 1860 when the shop was closed.
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HISTORY OF WATERVILLE.
THE HOLLINGSWORTH AND WHITNEY COMPANY.
An important enterprise, established and operated entirely by a foreign corporation and located outside of Waterville, yet con- tributes in so high a degree to the prosperity of our city as to merit a place in this chapter. The Hollingsworth and Whitney Company, operating large pulp and paper mills in Gardiner, Maine, decided about 1891 to enlarge their business by building additional mills in some other location. Their attention was turned toward Madison at first, and negotiations looking to the purchase of the lower privileges on the Kennebec at that point, were begun. The owners were the Manufacturing Investment Company who had previously erected a large sulphite mill on the next power above. Failure to agree on some points affecting the purchase by one company of the product of the other com- pany's plant, brought negotiations to an end, and Winslow was suggested as a desirable location for the new mills. The Lock- wood Company's upper power was unoccupied, and the "Island" on the Winslow side of the river, opposite Colby College, was an excellent site on which to build. This entire property was soon purchased, and in 1892 the ground-wood mill and the paper mill were erected, and a dam and head gates built at the head of the island. About 450 men found employment here. Seven years later a sulphite mill was added, and the number of men employed has increased to 675, who receive in wages about $30,000 per month. In addition to the water power, both steam and electric power are used. The latter is supplied by the Union Gas and Electric Company.
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CHAPTER XVI.
BANKING IN WATERVILLE.
By HORATIO D. BATES, Cashier Merchants National Bank.
Since early in its history, Waterville has enjoyed ample bank- ing facilities. The old Waterville Bank founded in 1814 fur- nished all of the circulating medium then required and a surplus to loan in Boston. In 1831 the Ticonic was organized to suc- ceed the Waterville, occupying the field alone until 1850, when another bank called the Waterville Bank was started. The Peo- ples began business in 1855, and in 1876 the Merchants was added to the list, but the closing up about that time of the Water- ville National left the number of banks the same as before. The need of a depository for savings was met by the founding of the Waterville Savings Bank in 1869 and in 1887 The Waterville Loan and Building Association commenced business. In 1889 the charter of the Waterville Trust Company was granted to W. T. Haines and his associates, but the company did not com- mence business until 1893. In the present year of Waterville's centennial we have four commercial banks, the Ticonic, Peoples, and Merchants National Banks, and the Waterville Trust Com- pany, having a combined capital of $500,000, surplus and undi- vided profits of $187,868, business deposits of $620,000 and loans including stocks and bonds of $1,600,000. There are three depositories of savings: The Waterville Savings Bank with deposits of $1,200,000, and the savings department of the Trust Company with deposits of $592,452, and the Loan and Building Association with capital dues of $85,608.
There are no defalcations to record in Waterville's banking history, and the nearest approach to failure was the scaling down
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HISTORY OF WATERVILLE.
of 121/2 per cent, in the deposits of the Waterville Savings Bank and the passing of one dividend in 1876. With this exception our banks have weathered all the financial storms, have paid good dividends, and are to-day in exceptionally strong condition. Our city is the banking center for North Vassalboro, China, Albion, Corinna, Hartland, Newport, Burnham and Clinton, and has a share of the business of Dexter and Fairfield. Banking conditions at present are very favorable. Although rates for money are not as high as in past years, the volume of deposits is larger than ever before, and the local demand for funds makes it unnecessary for the banks to buy notes of Boston brokers, a class of paper in which there is a much greater chance of loss than in loans made to home borrowers. The banks at the present time are charging six per cent. on most loans, a five per cent. rate being made to large depositors or on loans of good size with choice collateral. The Savings Bank and the Trust Company, on its time deposits, are paying depositors three and one-half per cent. and the Savings Bank charges six per cent. on its real estate loans. The national banks are holding a minimum of two per cent. bonds as security for circulation, all having sold their twos down to this limit within a year, tempted by the high prices. The growth of the banking business since the industrial awaken- ing of the town is shown by the increase in deposits and loans since 1876, in which year the four national banks reported deposits of $126,000, and loans of $524,000, against business deposits at the present time in the three national banks and the Trust Company of $620,000, and loans of $1,600,000. The increase of savings deposits in the same time has been from $400,000 in the Savings Bank to $1,792,452 in this bank and the savings department of the Trust Company, and $85,608 capital dues in the Loan and Building Association.
There have been several attempted robberies of Waterville banks. The 'Ticonic, when located in the little building south of Ticonic Row, was twice entered, but the vault withstood the efforts of the burglars. Before the days of time locks an attempt was made to enter the house of Mr. Homer Percival, then cashier of the Peoples Bank, then living in the house on the corner of Spring and Elm streets, now occupied by Dr. C. W. Abbott. It happened that there was sickness in the house that night and the
359
HISTORY OF WATERVILLE.
robbers were frightened away by the lights and the people mov- ing about. It was thought that the intention was to force Mr. Percival to go to the bank and open the safe.
An attempt to rob the Waterville National Bank was made on the night of November 22, 1876, the bank at that time being located in the second story of a wooden building at the south corner of Main and Silver streets, where the Milliken Block now stands. A circumstance favorable to the attempt was that a lecture was given in town hall that night by Theodore Tilton. The four men concerned in the affair got permission to leave their team at Luke Brown's on the corner of Pleasant and Mill streets, saying they were going to the lecture, and their presence on the street excited less suspicion than it otherwise would. Augustus Wood, the night watchman was approached by these men about twenty minutes of eleven and before he could make an outcry was gagged and thrown down, after being put upon his feet and led blind-folded to a shed in the rear of the Catholic church. Here his gag was removed, his keys taken and he was obliged to answer all the inquiries put to him as to his beat, etc. The gag was then put in his mouth and he was securely bound with window cord. Two of the gang then went to the bank and were climbing up to reach a rear window when George H. Vigue, a private watchman, came toward the bank looking for Wood, whom he had been in the habit of meeting at stated times while on his beat. L. D. Carver, now State Librarian, had an office on the same floor as the bank and slept in a room in the rear. He was awakened by the robbers and heard one say, "There's that cussed private watchman, let's go and do for him." Mr. Carver took his revolver and without waiting to dress, rushed down the stairs. Before he had reached the sidewalk the men had seized Vigue, one striking him a heavy blow on the head. He suc- ceeded in breaking away from them however, and to use his own expression, "hollered like a loon." The men ran down Silver street, their flight hastened by two shots from Vigue's revolver. They went to the place where the other men were and then all escaped in the team which had been left at Mr. Brown's. Vigue's outcry brought a number of people from the Williams house, and before long a general alarm was rung. When it was learned. that the robbers had escaped, a search was made for
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HISTORY OF WATERVILLE.
Wood, who was found by J. Fred Hill where the robbers had left him. The next morning Levi Dow and Fred Hill followed the track of the team as far as Augusta, the traces and the testi- mony of the people along the road showing that the ride was a fast and furious one. Though this happened nearly twenty-six years ago, Dr. Hill well remembers the remark of Dr. Hanson when Constable Dow came to the Institute for him the next morning : "Well, Mr. Hill, if you think you had rather be a detective than a scholar you may go, and your education is entirely sufficient for the business." No arrests were ever made in connection with this affair which was the talk of the town for a long time.
THE OLD WATERVILLE BANK.
The banking history of Waterville dates from 1814, in which year theold Waterville Bank wasorganized and its charter granted by the legislature of Massachusetts. This was the first banking institution commencing business above Augusta on the Kennebec river and served besides Waterville, Skowhegan, Norridgewock and other up-river towns. At the first meeting of its directors, held at the dwelling-house of Nath'l Gilman, Esq., on the 21st day of March, 1814, Mr. Gilman was chosen president and served in this capacity for the nineteen years of the bank's exis- tence. A small, one-story, wooden building was erected for the use of the bank, its location being just south of Ticonic Row on lower Main street. The original bank building was occupied also by the Ticonic Bank, the successor of the Waterville until 1865. This building afterward was moved to Ticonic street and was used as a dwelling-house until destroyed by fire.
The first board of directors of the bank consisted of Mr. Gil- man, Asa Redington, Samuel Redington, Thomas Rice and Daniel Cook. Among others who later served as directors were Asa Redington, Jr., Lemuel Paine, Timothy Boutelle, Jonathan Farrar, Moses Appleton, Joseph Southwick, Calvin Selden, Thomas B. Coolidge, Samuel Weston, James Stackpole, and John Ware of Norridgewock, great uncle of John Ware of this city. Asa Redington, Jr., was first cashier. He was elected July I, 1814 and served until September, 1818. The highest salary he received was $500. He was succeeded by his father, Asa Red-
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HISTORY OF WATERVILLE.
ington, who served from September, 1818 to November, 1826. His salary was $500 until July, 1826, when on plea of the poor business done by the bank it was reduced to $250. When the senior Redington was chosen cashier in 1818 his place on the board of directors was taken by his son, they thus exchanging places. Asa Redington, senior, evidently did not care to serve at the small salary granted him in 1826, and upon his resigna- tion Alpheus Lyon was elected, November 2, 1826. Mr. Lyon's pay was $300 until November, 1829, when it was reduced to $200. Asa Redington was chosen, on Mr. Lyon's resignation, to his old place as cashier, January 18, 1830, and continued to July, 1832. Daniel Cook was the last to fill the office. He was elected, July I, 1832, and voted a stipend of $100 for undertaking to close the affairs of the bank. The profits of country banks in those days were from the loaning of their circulating notes, so the first busi- ness engaging the officers of the bank was the signing and issuing of its bills, and a good portion of the money seems to have found ready borrowers. The bills were signed by president and cashier and bore a blank space in which it was customary to write the name of some person as payee. For example, at one direc- tors' meeting it was voted "To fill up five hundred three dollar bills payable to D. Cook." So these notes were made payable to D. Cook or bearer and then loaned to any one whose note was discounted by the bank. The bills were redeemable in specie at the bank's counter and the constant problem was to keep them in circulation. At times loans were made of the banks circulation on ninety days with a charge for interest of only half that time, the object being to keep the bills away from the bank and its redemption obligations.
The strength of banks issuing currency was not so carefully considered as in the laws madeat a later period and itappears that quite an amount of the stock in this bank was issued upon credit. That is, the stockholder subscribed for his shares and gave his note in payment for part or whole of the stock, leaving it with the bank as collateral. The legislature of 1833 passed a banking act in which this practice of loaning by banks on its own shares was prohibited. There is constant reference in the records of the Waterville Bank to these loans on hypothecated shares and they appear to have been an annoying feature of the business. There
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HISTORY OF WATERVILLE.
was a constant endeavor to get them paid up or reduced by restricting the amount per share which should be loaned upon them. The Waterville Bank, however, was not a "wildcat" bank, and its bills seemed to have a good standing in their time, and provision was made for the outstanding remnant when the bank went out of business. The only statements of the bank's con- dition that have been preserved bear the dates 1814 and 1815 and the one of latest date, February, 1815, is given herewith. The capital of the bank appears to have been increased to $100,000 subsequent to this report, the records showing a reduction from that amount later.
ASSETS.
Real estate
$ 2,200 00
Stamps
100 00
Loans
55,156 36
Bills of other banks
1,514 00
Treasury note
1,000 00
Specie with Prest.
3,270 95
Specie with Cashier
2,581 54
$65,822 85
LIABILITIES.
Capital Stock
$50,000 00
Bills in circulation
11,425 00
Profits
1,583 97
Deposits, individual.
1,170 23
Deposits, United States
1.318 65
Deposits of assessors' money
68 00
Deposits to Cr. of I. G. Neal
257 00 ‹
$65,822 85
Interesting features of this statement are the small amount of deposits and the fact brought out that the president was custodian of part of the bank's funds. When specie was needed for busi- ness the directors passed a vote that a certain sum should be turned over by the president to the cashier, taking his receipt for the same. The president had a strong box in the bank in which he kept the money of which he had charge. It was the rule of the bank that every note, at least those taken of local borrowers, should bear not less than three names. The record of the seven- teen years of the bank's active existence, from 1814 to 1831 is
363
HISTORY OF WATERVILLE.
told quite fully in the minutes of the directors' meetings (the stockholders' records not having been preserved) and is typical of the country bank of that period. It would appear that there was not sufficient local demand for the bank funds after the first wants of the community were supplied, and large sums were placed in the hands of agents in Boston, to be loaned by them. There is record of $80,000 being intrusted to Chas. Scudder, a Boston merchant who enjoyed at one time the confidence of the
directors. Mr. Scudder evidently made some poor loans to others or to himself for in a settlement with the bank in 1821 he paid about $1,600 in cash on claims against him for over $20,000. The bank was also obliged to compromise a claim against Mr. Brooks, another Boston agent. The bank also had in Boston a correspondent bank where its circulation was redeemed and part of its funds lodged.
When the Suffolk system, so-called, was inaugurated it was the endeavor of the Suffolk bank to make itself a general redemption agent for the country banks, and each bank was expected to keep a sum of money there, without interest, to redeem its bills when presented. The Waterville bank did not take kindly to this arrangement and refused to keep a redemption fund with the Suffolk. Mr. A. A. Plaisted relates that his grandfather, Moses Appleton, went to Boston at one time with a large sum in specie for the purpose of taking up a like amount in bank bills held by the Suffolk. This bank, to punish the Waterville institution for not coming into the new arrangement refused to take the money and sent a clerk down by stage to demand specie at the bank counter, Dr. Appleton returning in the same stage, bringing back the coin. The bills were redeemed and the specie took another trip to Boston. In these early days there were no express companies and money was sent to Boston or brought home by any trusty person who happened to be mak- ing the trip by stage or otherwise. This service appears usually to have been voluntary and unpaid but there is a vote recorded at one of the directors meetings "that the cashier pay to Mr. Jos. Mitchell the sum of one dollar and fifty cents in consideration of his care and prudent management in bringing specie from Boston in January last." The banks capital after being made $100,000 was reduced in 1828 to $75,000 and to $50,000 in the following
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HISTORY OF WATERVILLE.
year. These reductions were evidently on account of the losses incurred in loaning the surplus funds of the bank. November 15, 1830, the directors voted to call a meeting of the stockholders on the Ioth of December to see if they would vote for an exten- sion of the charter or apply for a new one. The vote was in the negative and some of the men associated with the old bank applied with others for a charter for a new bank, a successor of the old Waterville, to be called the Ticonic Bank, which charter was granted, being approved April 1, 1831. The Waterville Bank commenced to liquidate in September, 1831, dividing then among its shareholders 60% of its capital and in August, 1832, 20% more was paid. At a directors meeting held July 8, 1832, at which meeting were present Asa Redington, Timothy Boutelle, Moses Appleton, Daniel Cook and James Stackpole, it was voted that the offer of the Ticonic Bank to settle the affairs of the Waterville Bank be accepted. The proposition was to take over from the old bank, notes and judgments owned by it and amount- ing to $7,368.55 and cash $2,845.89, amounting in all to $10,-
214.44. In consideration therefor the new bank agreed to redeem within fourteen years the Waterville Bank's outstanding bills, amounting to $3,914, and to pay over in cash $8,700. This cash divided among the shareholders on a basis of $50,000 cap- ital made a final dividend of $17.40 per share, making the total liquidating payments $97.40 per share. During its seventeen years of active business the bank paid dividends averaging 51/2% and should go down into history as paying its debts, dollar for dollar and as having a fairly profitable career.
TICONIC BANK.
Ticonic Bank was organized to succeed the old Waterville Bank although the business of the latter was not closed up until 1832. As will be seen by reference to the history of the older bank, the Ticonic took over the remaining assets of the Water- ville and agreed to redeem its circulation. The Ticonic charter bore date April I, 1831, and was granted to Moses Appleton, Isaac Stevens, Asa Redington, Jr., Jediah Morrill, Abel Hoxie, Calvin Selden, Warren Preston, Isaac Farrar and their asso- ciates. The charter provided that the capital of the bank should
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HISTORY OF WATERVILLE.
be paid in gold and silver, so the institution started on a sounder basis than the old Waterville with its shares issued partly on credit. The law under which the bank was organized also placed a restriction upon circulation, limiting the same to 50% in addi- tion to the amount of the capital stocks. The Ticonic therefore had authority after its capital ($50,000) was fully paid in, to issue bills to the amount of $75,000. The law also provided that banks should loan on paper bearing not less than two responsible names, that if after fifteen days of grace a bank failed to redeem its bills in gold or silver, the claim against it should bear interest until paid, at the rate of 24% per annum. Notes of the bank raised to a higher denomination were payable at the larger sum if presented by an innocent holder. The banking tax at this time was one per cent per year on the capital paid in. The first meeting of incorporation was held at the Waterville Bank Octo- ber 3, 1831, and at a meeting held January 2, 1832, a board of directors was chosen. The board consisted of Nath'l Gilman, Timothy Boutelle, Daniel Cook, Jediah Morrill and Alpheus Lyon. Nath'l Gilman was first choice for president but he declined to serve and Timothy Boutelle was elected. Daniel Cook was first cashier and the by-laws fixed his hours of service at 10 A. M. to I P. M., this arrangement being changed at a later date to something like the present arrangement, the hours of the national banks being 8.30 to 12 and I to 3. The first location of the bank was in the original building occupied since 1814 by the Waterville Bank. In 1865 a small wooden building located where the present building stands was purchased of Mrs. Bradbury who had occupied it as a millinery shop, and the bank remained in these quarters until 1875 when the present banking house was erected. The first return to the secretary of State made in 1833 shows deposits of $2,563; due to Suffolk Bank, $10,856, and loans of $93,332. In 1836 the capital of the bank was increased to $75,000. In 1846 a renewal of charter to 1857 was granted and in 1852 the capital was increased to $100,000. A further increase to $125,000 was made in 1855. In 1857 another renewal of charter was granted. In 1859 capital was reduced to $100,000, $15,000 of the reduction charged to loss account and $10,000 being paid to stockholders, a stock dividend of $8 per share, leaving the 1,250 shares at a par value of $80
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HISTORY OF WATERVILLE.
per share. December 27, 1864, the vote was passed to surren- der the charter granted by the State, and a national charter was then obtained. The records of directors subsequent to 1855 are missing but the record of dividends paid up to that time shows a prosperous business.
Presidents : Timothy Boutelle, 1832 to 1855 ; Jos. Eaton, 1855 to 1865; Solyman Heath, 1865. Cashiers: Daniel Cook, 1832 to 1834; Augustine Perkins, 1834 to 1849; Sumner Percival, 1849 to 1853; Edw. G. Hoag, 1853 to 1858; Aaron Appleton Plaisted, 1858. Silas Redington also served as cashier for a short time in 1858, before Mr. Plaisted's appointment. Beside those on the first board the bank was served as directors by Asa Redington, Moses Appleton, Simeon Mathews, Sumner Percival, Elah Esty, Samuel Appleton, Edwin Noyes, Samuel Doolittle, Edw. G. Meader and Chas. K. Mathews.
TICONIC NATIONAL BANK.
The Ticonic changed to a national bank in 1865, its charter bearing date January 2 of that year. The first board of directors was Joseph Eaton of Winslow; Solyman Heath, Samuel Doo- little, Edward G. Meader, Charles K. Mathews. Presidents : Jos. Eaton, 1865, January to September ; Solyman Heath, 1865- 1875 ; Samuel Appleton, 1875-1884 ; Nathaniel R. Boutelle, 1884- 1891 ; Chas. K. Mathews, 1891-1899 ; Geo. K. Boutelle, 1899 -. A. A. Plaisted was cashier from 1865 to 1896 when Appleton H. Plaisted, his son, was chosen, June 29. A. H. Plaisted was suc- ceeded by Hascall S. Hall, the present cashier, who was elected January 8, 1901, having served as assistant from January 2, 1898. Willard H. Parsons, assistant, was appointed February 14, 1901. The present board of directors is Geo. K. Boutelle, president ; Clarence A. Leighton, vice-president ; Joseph Eaton of Winslow, Charles Wentworth and William T. Haines. Others who have served as directors are: Dudley W. Moor. Henry R. Butter- field, Nathaniel Meader, J. H. Plaisted and H. L. Kelley. Mr. A. A. Plaisted served a remarkably long term as cashier of the Ticonic and Ticonic National, 1858 to 1896, a period of thirty- eight years. During nearly the whole of this time he performed all the duties of cashier without help and had no vacations. This
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