USA > Michigan > Branch County > History of Branch county, Michigan, with illustrations and biographical sketches of some of its prominent men and pioneers > Part 37
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"Sealed with our seals, and dated the 8th of December, one thon- sand eight hundred and thirty-seven.
" Whereas, an association has been formed under an act entitled an ' Act to organize and regulate Banking Associations,' approved March 15, 1837, with a capital stoek of one hnodred thousand dollars; and whereas, the said association is to be known and designated by the name of the Back of Coldwater, and the office for the transaction of the business of said bank is located at the village of Coldwater, in the County of Branch, in the State of Michigan ; and whereas Lorenzo D. Crippen, Philo D. Crippen, Win. H. Cross, Loren Marsh, Thomas Dougherty, Morgan L. Collins, Walter W. Prentice, Daniel O. Hoyte, and Lewis Goddard have been duly elected the directors of the said Bank of Coldwater, by the subscribers to the capital stoek of said as- sociation, in the mode presented in said act ; nuw, therefore, the con- dition of this obligation is sneh, that if the said Bank of Coldwater, punetually, on their becoming due, pays all debts which may be con- tracted by said association or its agents, and shalt discharge all liabili- ties which may exist against it, and if the said Bank of Coldwater shall faithfully redeem at the time, and in the manner prescribed by the act above referred to, all notes and obligations issued by it, then, aod in that case this obligation to be void. Otherwise in full force and virtue. Exeented the day and year aforesaid. In presence of
" LORENZO D. CHIPPEN, " PHILO HI. CRIPPEN."
The career of the Coldwater Bank was not solely affected by the times. There were other and more internal causes which determined results in its case. The specie of this bank was similar to that of others under the same system. It existed only on paper: it never saw the bank. The certificate of a Mr. Brown, of Detroit, showing the requi- site specie in American half-dollars was deposited in his bank to the credit of the Coldwater Bank, did the work. This satisfied the examining officers, and the certificate was returned to Mr. Brown, it having been loaned fraudulently, there having been no specie to represent it iu his bank or elsewhere. Before the issue of bills a new election of
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HISTORY OF BRANCH COUNTY, MICHIGAN.
directors was had, by which a majority of the directors were non-residents in the interest and control of Goddard and Ware. It had been agreed in the organization of the bank that Coldwater should have a majority of the direc- tors, and the Detroit parties a majority of the stock, and this new election was a violation of the arrangement. George Nichols removed here before he was elected di- rector, and was in Goddard and Ware's interest, and being enshier gave the Detroit parties inside control. Goddard was the ruling spirit. It was the special bnsi- ness of toddard and Ware to organize banks, as they had done in other places, for the sake of what might be made from them. Goddard was a man about forty years of age, while most of the other directors were under thirty. He had established one bank at Brest, just north of Mon- roe, on the lake, and intended making it a great commercial and maritime centre. Under this regime and in the con- trol of these men, the bills of the Coldwater Bank were issued to the amount allowed by law, as the writer has been informed. In legitimate banking these bills would have been properly paid out in making loans. There was no specie in the vaults to redeem them. Goddard had another theory with regard to these new bills, just fresh and crisp from the printers. He was a man of financial theories,- too much so for our Coldwater merchants, farmers, lawyers, and doctors. His system, which he promulgated to the pioneers of Branch County, especially directed to the direc- tors of the bank, was as follows : he declared it was not necessary for a bank to have specie of its own; a bank should create specie. The pioneer stockholders and direc- tors living to-day will tell you how he bewildered and influenced them by his logical reasoning on creating specie.
" What," said he, " is a bank good for unless it is well enough conducted to create its own specie ? In order to create specie of your own you must exchange your circu- lation for it ; you must take your bills away from home so they will be slow in returning for redemption, taking away the specie you have created. The way to obtain this specie by exchange is to get the bills of other banks with your bills, take these bills of other banks to their counters, get the gold on them and bring it home, and put it in your own vaults. In this way you have created specie, and have provided the bank with the material for redeeming your bills ; and I can show you how to do it."
M. L. Crippen, a gentleman of rare business ability, saw the fallacy of Goddard's plan, and objected ; but Goddard and Ware had a majority of the directors, and consequently controlled the bank. Goddard very generously offered to give the bank his valuable time to go on the pilgrimage to exchange bills for bills and bills for gold, thus creating specie. So he and his coadjutors had their way, and he was permitted to take away twenty thousand dollars to create specie with, and also five thousand dollars as a personal loan. This event happened the winter or spring of 1838, most of it being taken the day the bank opened. About forty-one years have gone into history since that eventful day to the Coldwater Bank, when its distinguished and able financier, Louis Goddard, tanght the directors and stockholders of that corporation how to create specie. Forty-one years since the day in the early springtime when
Louis, with all due complaisance and financial bearing, gathered up the new, crisp bills before the signature of cashier and president were scarcely dry, and graciously taking leave of officers and directors, quietly walked out of the little one-story, wooden bank-building with his twenty-five thousand dollars, one-fourth the nominal capital of the bank, into the streets of the embryo village, with its wooden stores, wooden hotels, and wooden residences, nodded benignantly to chance acquaintances on the street, and took, no doubt from the "Central Exchange," the old-fashioned stage for the West, for the generous purpose of creating specie for his friends and the Coldwater Bank. About forty years have passed away since then, and the Coldwater Bauk and the Coldwater people, who once knew him so well, have known him no more forever. Longer than the Israelites wandered in the wilderness has he been away from his Coldwater home. He never returned or sent back any of the bills he took away, payment in whole or part for them on any of the precious specie he had created. Of course he was an honest fellow, and is no doubt now among some of the Western tribes, creating specie. His friend Ware, of Detroit, believed implicitly in the system of Goddard, and for the good of the corporation also took away twenty-five thousand dollars, of which five thousand was a loan, the twenty thousand to be used to create specie with. But he took it some little time after the first depletion. It had depreciated in value, so that he restored seven thousand dollars he could not pass, converting seven- teen thousand dollars for his own use. Each of the Detroit stockholders made a loan of five thousand dollars the night of the day the bank opened. So did a Mr. Collins, of To- ledo. lle also took two thousand dollars to exchange for specie, which was the next week restored to the bank for redemption in the original package, he having paid his own debt with it. George Nichols took enough with which to build a new house opposite the present Presbyterian church. Mr. Mandel, the teller, from Detroit, truly said, " They broke the bank the first night." The president, Mr. L. D. Crippen, and his brother, Philo H. Crippen, struggled hard to keep the bank afloat, even becoming personally respon- sible to the amount of twenty thousand dollars, but without success. The bills were finally taken for twenty-five cents on the dollar, and in 1838 the bank failed entirely. Like all the wild-cat bank-bills of the day, they were never redeemed.
Beside the Coldwater Bank there were three efforts to organize one in the village of Branch, the principal mover in the matter being Mr. Jodl Burlingame, the father of Ilon. Anson Burlingame. His financial project, however, never met with success.
The financial highway traveled by our Michigan pio- neers, described in this paper, illustrates the weakness and dangers of the system described, and, as a contrast, brings out the strong points in the national banking system. To reach our present system, with its sound basis and stable currency, we have passed along a road which has been strewn with the ruins of corporations, business firms, and individuals. It is to be seriously hoped we shall not have to travel it again, and that by a more intelligent legisla- tion we can say that Oxenstierna would be in error to say
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HISTORY OF BRANCH COUNTY, MICHIGAN.
of us, " My son, it takes very little wisdom to govern the world."
The foregoing interesting and comprehensive history embraces copious extracts from a paper on early banking in Branch County, by Hon. C. D. Randall, the manuscript of which he has kindly loaned us.
THE COLDWATER NATIONAL BANK.
The Coldwater National Bank was organized May 30, 1865, by Henry C. Lewis, David B. Dennis, George Starr, Artemas Allen, Charles Upson, Charles B. Jones, Alonzo Waterman, Daniel Thompson, of Coldwater; David R. Cooley, of Union City ; and Cyrus G. Luce, of Gilead,-a preliminary meeting for the purpose of subscribing to eap- ital stock having been held May 20, 1865. Seven directors were elected at the meeting held May 30, and the following officers were elected, namely : Ilenry C. Lewis, President ; Daniel B. Dennis, Vice-President ; George Starr, Cashier ; and they still continue to act in their respective offices. The stock of the bank has changed hands frequently, but, singularly, the number of stockholders has always remained just twelve. This bank succeeded the Exchange Bank of Dennis & Starr, and was the outgrowth of the first bank- ing institution in Coldwater, the "wild-eat" Coldwater Bank having closed its doors in 1838, along with all others of that ilk in Michigan. Lorenzo D. Crippen and Clinton B. Fisk opened the first office, doing an exclusive banking and exchange business, under the name and style of the " Exchange Bank of Crippen & Fisk." They sus- pended payment in the fall of 1857, and were succeeded by Fisk & Lewis (Clinton B. Fisk and Henry C. Lewis) ; they by Lewis, Bidwell & Miles (Henry C. Lewis, Alonzo F. Bidwell, and Ines G. Miles) ; they by Lewis & Kellogg (Henry C. Lewis and George A. Kellogg) ; they by Lewis & Starr (Henry C. Lewis and George Starr); they by Clarke & Starr ( Edwin R. Clarke and George Starr) ; they by Dennis & Starr (Daniel B. Dennis and George Starr) ; they by the Coldwater National Bank. Mr. Starr, the cashier of the present bank, was with Crippen & Fisk as book-keeper, in 1856, and has continued with each sue- cessive firm or bank.
Previous to the organization of national banks the cur- reney in use in this locality was issued by banks doing business under State laws. There were about sixteen hun- dred kinds of bills, and nearly as many more counterfeits raised and altered, every business man being supplied with " bank-note reporters," for ready reference. Few bills were taken without being eritically examined and passed upon by a good judge as to their genuineness and soundness. Exchange on New York on such mixed money was sold at from one to three per cent. at a time. When the currency was nearly all from Illinois and Wisconsin, exchange went up to seven per eent. ; this Illinois and Wisconsin currency was based upon Southern State stocks, and became known as " Red Dog," so much red ink was used on them. The minimum rate for loans on business or accommodation paper was two per cent. per month ; from that rate up to five per cent. per month was taken to supply the demand and credit of the borrower influencing the rate. In 1856, Fisk posted upon his show-case,
" Arch says of late He's raised the rate Of this sort of shaving,"
which brought the lowest rate on small loans up to three per cent. per month. " Arch" was Fisk's teller,-Arch. M. Gibson.
Crippen & Fisk suspended payment in 1857, at which time there was a panic and general crash all over the United States. But few banks went through without suspending specie payments. General resumption was brought about in a few months by popular demand and the inherent strength of the banks. The panic of 1857 was precipitated upon the county by the failure of the Ohio Life and Trust Company, doing business in New York, and proving un- sound. Crippen & Fisk settled with all their ereditors in full, no loss having been sustained by any dealer with them or any of their successors. The first " fire- and bur- glar"-proof safe in this county was used by Crippen & Fisk, and is now in the judge of probate's office. Messrs. Lewis & Kellogg, considering better security against fire and thieves desirable, had a vault of brick and iron built in the banking-office, and purchased one of the best burglar safes then made, and placed it inside of the vault. The Coldwater National Bank wanting still further security, purchased in 1870 a small burglar safe, and placed it inside of the safe bought by Lewis & Kellogg. It being necessary to keep pace with the ingenuity of burglars and thieves, the Coldwater National Bank, in 1876, had a new safe made with all the latest improvements,-a safe within a safe, both especially strong, of welded hard and soft steel. These safes are locked with a combination lock, having no key or key-hole; the outer safe has also a time lock, which has two of the best watch movements in it, and when set to lock and unlock at certain hours it does its work auto- matically, requiring only to be wound up once in forty- eight hours. This lock has also a "Sunday attachment," so that the safe is kept locked on that day. The cost of this time lock is four hundred dollars. The greater portion of the loans of the Coldwater National Bank are made out of the county, and some loans are made out of the State, which indicates a surplus of capital for this locality. The banks have been of great benefit to this county in furnish- ing eapital to move its stock, grain, and products, promot- ing and facilitating business generally. The present board of directors of the Coldwater National Bank are IIenry C. Lewis, David B. Dennis, Chas. Upson, and Geo. Starr, of Coldwater ; Wm. P. Hurd, of Union City; and Jonathan Ilolmes, of Bronson. The bank has a large surplus to meet contingent losses.
THE SOUTHERN MICHIGAN NATIONAL BANK.
This bank was organized in accordance with a special permit from the comptroller of the currency before, under the national system, banking was made free. The articles of association are dated the 27th day of November, A.D. 1871, and are signed by Stephen S. Cutter, Caleb D. Ran- dall, Julins S. Barber, Cyrus G. Luce, Henry Safford, Lester E. Rose, Edwin R. Clarke, John O. Pelton, David C. Powers, Luther F. Hale, Charles A. Spaulding, Robert F. Mockridge, Simon B. Kitchel, Alonzo Waterman.
W
1
RESIDENCE OF H. C. FENN, COLDWATER, BRANCH CO., MICH.
4
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HISTORY OF BRANCH COUNTY, MICHIGAN.
Thomas W. Dickinson, and Hibbard F. Jones. The cap- ital was fixed at $110,000, with the right to increase the same to $200,000. All the parties above named were originally stockholders in the bank, except Dr. S. S. Cutter, who signed for Robert Reade, Esq., of New York. The other original stockhollers, for whom other persons signed the articles, were Daniel E. Dyer, of Dansville, N. Y .; D. C. Smith, Shelbyville, Il. ; J. Sterling Smith, New York City; Lois Smith, of Bethel, Vt. , Olivia Safford, of Coldwater; Mary Rodman, of Cleveland; Isaac Mains, Coldwater; Emeline Barber, Coldwater; Thomas Smith, Coldwater; N. P. Loveridge, Coldwater ; Orlando Wilder, Orland, Ind.
Hiland R. Hubbard, comptroller of the currency, under date of Jan. 16, 1872, issued his certificate, authorizing the association to commence business.
The first board of directors consisted of Henry Safford, E. R. Clarke, J. S. Barber, C. D. Randall, L. F. Hale, D. C. Powers, and C. G. Luce. The first officers elected were C. D. Randall, President ; C. G. Luce, Vice-President ; Lester E. Rose, Cashier ; and A. Sidney Upson, Teller and Book-keeper. .
The bank opened for business in the banking-rooms in the Southern Michigan Hotel block, on the 19th day of February, 1872, and continued there until the new bank building erceted by the association, on the corner of Chi- cago and Mouroe streets, was completed, to which the business was removed in the fall of 1872.
The officers of the bank continue the same, and so does the board of directors, except that on the resignation of of Rev. Henry Safford, Mr. R. F. Mockridge was elected to the vacancy.
On the 27th day of June, 1873, by a vote of the directors, the capital stock of the bank was increased $55,000, making the capital 8165,000 There has been a surplus fund created, by additions each six months, to the amount of $18,000, making the capital and surplus $183,000. The capital is the largest of any in the State south of Detroit. The correspondents of the bank are, in New York, the Importers' and Traders' National Bank ; in Detroit, the Second National Bank and the American National Bank ; and in Chicago, the First National Bank.
At this date the circulation of the bank is $99,000, and the loans and discounts, $178,756.15. The bank has $110,000 in bonds, to secure circulation, deposited with the United States treasurer.
FARMERS' MUTUAL INSURANCE COMPANY OF BRANCH COUNTY.
The mutual plan, as indicated by the title of this eom- pany, is the foundation-stone of its organization, which was effected Jan. 21, 1863, no policies having been issued, however, until July of the same year.
Its first officers were Philo Porter, President ; JJohn S. Strong, Secretary ; Directors, Asel Brown, Stuart Davis, Moses V. Calkins, George W. Van Aken, Edward W. Phettiplace. The number who by insurance are consti- tuted members of the company are two thousand and sev- enty, and the amount of property at risk is 83,814,643.
The officers are John Allen, President ; J. C. Pierce, 19
Secretary ; Directors, John H. Jones, Lawrence Rheabot- tom, L. D. Clark, James Ritchie, William M. Tyler.
COLDWATER GAS-LIGHT COMPANY.
This company was first formed in 1860, the stock having been divided among five shareholders, namely. A. W. Parkhurst, H. C. Lewis, I. G. Parkhurst, D. S. Harring- ton, and Artemus Allen. The capital stock at that time was 25,000 dollars, which was, in 1868, increased to $10,000. The company has seven miles of street-main pipe and 250) consumers. They have also a machine for ernshing coke, for which there is a considerable demand in the city. The works were built in 1861, and are located on Chicago Street, with a well-appointed office facing the street.
The present officers are I. G. Parkhurst, President ; A. J. Crippen, Secretary ; D. B. Dennis, Treasurer ; Di- rectors, R. M. Reed, C. G. Johnson, N. P. Loveridge.
TIIE FIRE DEPARTMENT OF COLDWATER.
The first effort to establish a fire department in Cold- water occurred in the year 1856, and in August of that year, after several preliminary meetings, the Excelsior Fire Company, No. 1, was organized, with the following names on its early roll : J. T. Pratt, James Bame, Henry C. Fenn, B. M. Bordine, Frank Marsh, J. IT. Edwards, R. F. Mock- ridge, A. M. Gibson, E. W. Markham, W. R. Foster, L. C. Marsh, Albert Chandler, J. W. Gilbert, M. A. Crippen, J. R. Champion, J. S. Gibson, David Thompson, C. B. Fisk, D. W. Barns, C. Vanness, Jacob Smith. A coul- mittee, consisting of C. B Fisk, R. F. Mockridge, and J. H. Edwards, was chosen to draft a constitution and by- laws. Later the following officers were elected: C. B. Fisk, Foreman ; HI. C. Fenn, First Assistant ; James Baue, Second Assistant; R. F. Mockri lge, Secretary ; E. W. Markham, Treasurer; Jacob E. Smith, Steward. We find, by the records, that from time to time new names were enrolled, until the company became in numbers a powerful organization.
The following uniform was, by unanimous vote, adopted : " Red jacket, with double-breasted blue collar; sleeves turned over at the wristband and trimmed with blue; pleated on the back, with belt at the waist, a white star on each side of the collar and a figure one on the left breast."
In October of the same year a hose company was formed, limited to twenty boys, as follows: Finch Skeels, N. R. Champion, B. J. Wood, Orland Noyes, C. C. Egyleson, Edward Beach, James Swails, Geo. Ilolbrook, B. S. Tib- bets, A. Burns, George Baker, Henry Peckham, James Raymond, Gay Bennett, R. G. Chandler, later additions having completed the requisite number.
From the rather obsenre minutes we gather that at the time the engine was purchased, the manufacturer, Mr. L. Button, having come with the machine, placed it in work- ing order and instructed the firemen regarding its workings.
The records contain further mention of the various fires that occurred during a series of years, together with very complimentary allusions to the valorous deeds performed by the firemen on these occasions.
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HISTORY OF BRANCH COUNTY, MICHIGAN.
About the same date, or soon after the organization of the first engine-company, a hook-and-ladder company was formed. The records of this company are not accessible but from all the facts at our disposal it appears that J. G. Parkhurst was its first foreman. Its members were all well-developed, robust men and represented a strong social element in the city, and on occasions of parade or on visits to neighboring cities their distinguished appearance was a matter of much gratification.
During the summer of 1857 the department was invited to Hillsdale to participate in a grand firemen's parade, and the following year the same courtesy was extended them by the citizens of South Bend, Ind. On the latter occa- sion, IIon. Schuyler Colfax delivered the address of wel- come. The event is especially memorable as one which reflected great credit upon the Coldwater firemen and elicited from their entertainers very warm expressions of admiration.
The hook-and-ladder company boasted among its num- bers twenty men who weighed two hundred pounds each.
In 1864 another company was organized, called the Un- dine, of which Dr. W. W. Whitten was foreman, and in connection with it the Hope Hose Company No. 2. The engine belonging to this company was purchased at a cost of three thousand two hundred dollars, being regarded at the time as a fine piece of mechanism, and the hose-carriage was especially elegant in its appointments. This company was finally disbanded, and the engine disposed of at a greatly reduced price.
In 1866 we find in the records the following :
" Whereas, the Fire Department of Coldwater has kept pace with the growth of the eity, till it now nmiubers two fire-engine companies and two hose companies, And, whereas, the experience of firemen in varions cities of the Union has demonstrated the utility of their form- ing organizations known as " Fire Associations :" Be it resolved, that a committee of two be appointed from each company to consider the pro- priety of forming ' The Fire Association of the City of Coldwater,' for the purpose of maintaining that perfect harmony which has so happily existed in the department from its earliest organization, and to secure to all men that may be injured in the line of their duty as firemen, that every care and attention so requisite in the day of misfortune."
In July, 1872, a total change occurred in the organiza- tion of the department. The Undine Company having, as before stated, disbanded, a new steam-engine of the eele- brated Silsbee & Co.'s manufacture was purchased, and christened "The City of Coldwater," and the Excelsior Company lapsed into a new organization called " The City of Coldwater Steam Fire-Engine Company." The department under this reconstruction has proved its efficiency, and is justly a source of pride to the city fathers. The chief en- gineers have been successively R. F. Mockridge, E. W. Markham, M. M. Mansfield, I. P. Alger, William R. Foster, and the present incumbent, H. J. Drake. Its present officers beside the chief engineer are R. A. Hall, First Assistant Chief Engineer ; F. Schaeffer, Second Assistant Chief Engineer; L. A. Dillingham, Foreman; C. II. Wharton, Assistant Foreman ; Charles Lamb, Secretary ; Louis Slo- man, Treasurer ; George Wendell, Chief of Hose; C. S. Ball, Pipeman ; George Hathaway, Engineer of Steamer ; L. L. Johnson, W. G. Moore, George Wendell, Trustees.
MANUFACTURES.
AMERICAN CIGAR COMPANY.
Among the most extensive and profitable branches of industry in the city is the manufacture of cigars. The oldest of these establishments is the American Cigar Company, which was organized in January, 1873, with a capital of thirty thousand dollars. Its officers are L. M. Wing, President ; George Starr, Vice-President and Treas- nrer. It employs from forty to sixty men and women, and supplies principally the markets of Michigan, Indiana, and Ohio with its products. In 1878 one million six hundred thousand cigars were manufactured, and sixteen thousand dollars paid for labor during the year. The leading brand of cigars is the "American," and the company are also wholesale dealers in fine-eut, smoking, and leaf tobacco.
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