USA > Michigan > Saginaw County > History of Saginaw County, Michigan; historical, commercial, biographical, Volume II > Part 81
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Citizens' National Bank
The second national bank to be organized at Saginaw City was the Citizens' National, which was chartered in October, 1880. Daniel Hardin was president, Lewis Penover, vice-president, and D. W. Briggs was cashier. The officers and C. Il. Green and Benton Hanchett composed the board of directors. Its capital was one hundred thousand dollars : and it did a general banking business including the "issuing of exchange upon the leading cities of this and other countries." On October 5, 1887, its surplus and undivided profits amounted to fifty-nine thousand two hundred and ninety-two dollars ; and its total resources were six hundred fifty-five thousand six hundred and seventy dollars. Not long after, because of differences among the directors, this bank was liquidated, the Bank of Saginaw and the Commercial National Bank resulting from the dissolution.
Saginaw County Savings Bank
The organization of this bank, which was the first of its class at Saginaw City, was effected on December 1, 1886, but it was not until February 1. 1887, that it began business with a capital of fifty thousand dollars. The banking office was located in the Parsons Block, at Hamilton and Ames Streets. In 1905 it removed its office to the old First National Bank building, at Hamilton and Court Streets, the national bank having dissolved several years preceding. Until January 1. 1907, the Savings Bank was purely a savings institution, but on that date the articles of association were changed to permit the transaction of a general commercial business. Like other local banks. it was absorbed by the Bank of Saginaw, Charles A. Khuen, its presi- dent and former treasurer, becoming vice-president and assistant cashier of the larger institution.
753
BANKS AND BANKING
TIT
SSEE
WIE DOLLARS
1
AGENT.
PRESIDENT
NOTE SCRIPT OF THE TITTABAWASSEE BOOM COMPANY
This script circulated as currency in the Eighteen-seventies and drew interest at the rate of ten per cent. per annum. At that time this was the prevailing rate of interest on loans, and savings deposits and certificates drew six per cent. interest.
The Strength of Saginaw Banks
It has been truly said that the banks of a city may be regarded as the guardian of the people's exchequer, and as a barometer of the growth and prosperity of any community. A wise, conservative banking system, tinc- tured with a progressive spirit, is one of the corner stones of financial pros- perity, and in this respect Saginaw is in the front rank of cities of its class. In times of panic and business depression our banks have ever stood the stress and strain without serious disturbance, and there has been a notable growth in the business transacted. that could come only from wise and conservative management.aided by steady progress of the community.
In 1907 the capital, surplus and deposits of the five national and State banks were as follows :
Capital $200.000.00
Surplus $563,478.00 65,243.91 128,198.82
Deposits $3,955,502.49 894,036.81
People's Savings
50,000.00
Commercial National
100,000.00
1,005,889.83
Bank of Saginaw
400,000.00
423,382.57
5,587,088.60
Saginaw County Savings.
50,000.00
94,976.51
873,015.02
$800,000.00
$1.275,279.81
$12,315,532.75
George L. Burrows & Company ( private bank, no report. )
A Comparative Statement
A condensed comparative statement of the Saginaw banks for 1897, 1907 and 1917, shows a remarkable growth of banking business in twenty years, and reflects the development of manufactures and mercantile trade of the city in that period :
Resources
Loans and discounts
May 14, 1897 $4,230,141.53 1,407,380.42
May 20, 1907 $7,352,428.19 4,549,062.99
March 5, 1917 $12,336.739.64 6,712,863.50
Bonds and stocks
Banking houses and other real estate
198,800.25
159,572.94
349,035.00
Cash and due from other banks
1.074,700.83
2,626,243.44
4.844,259.95
$6,911.023.03
$14,687,307.56
$24,242,898.09
Second National
754
HISTORY OF SAGINAW COUNTY
Liabilities
Capital stock $ 400,000.00
800.000.00
$1.300.000.00
Surplus and undivided profits
724,328.40
1,275,274.81 1.973,778.52 250,000.00
Circulation
267.815.00
296,500.00
95,736.07
Deposits
5.018,879.57
12,315,532.75
20,623,383.50
$6,911,023.03
$14,687,307.50
$24.242,898.09
The very satisfactory showing of the banks on March 5. 1917, the date of an official statement, is clearly evident from a casual study of the following figures presented in condensed form :
Resources
Loans and Discounts
Bonds and Stocks
Banking Houses $197,500 45,000
$2.435.412.78 1,394.048.04
German-American. .
1,080,371.56
740.041.54
31,800
454.762.33
People's Savings .. .
756,969.44
517.370.85 36,735
420,931.78
Commercial Nat'l
781,861.00
265,682.80
38.000
130.105.02
12.336.739.64
$6.712,863.50
$349,035
$4,844,259.95
Liabilities
Capital
Surplus, etc. $896.130.30
Premium, Cir., etc.
Bank of Saginaw. . $500,000
Second National
500,000
696,745.09
200,000.00
Deposits $9,940,803.42 6,093,845.88
German-American. .
100.000
62.975.93
2,149,999.50
People's Savings .. .
100,000
120,523.70
1,511,483.38
Commercial Nat'l. .
100,000
197.397.50
927,251.32
$1,300.000
$1,973,778.52
$345,736.07
$20,623.383.50
On January 1. 1918, the capital and surplus, cash and reserve, and de- posits of the five Saginaw banks and one trust company were :
Bank of Saginaw
Capital and Surplus $ 1,434,529.30
Cash and Reserve $ 2.812.374.32 1,048,807.94
$10.614,850.55 0,209,888.12
American State Bank
161.299.58
535.883.12
2,298,298.16
People's Savings Bank. .. . . 218.121.43
288,829.77
1,334,106.30
Commercial Nat'l Bank. ..
200,996.21
246,089.54
986.240.53
Saginaw Valley Trust Co ...
250,000.00
46,791.38
100,109.05
$ 3,493,321.00
$ 4,978.776.07
$21.543.492.71
bank of Saginaw. . $5.217,675.23
Second National
4.499,802.41
$3,572,087.78 1.011,680.52
$85,730.07
Deposits
Second National
1,228,375.38
Probably few cities of the size of Saginaw can show a more substantial growth in the business of its banks. In twenty years the capital, surplus and undivided profits of our banks have doubled, and the deposits have quadrupled now exceeding twenty million dollars. In the same period the loans and discounts have trebled, investments in bonds and stocks more than quadrupled, and the cash resources increased from one million and seventy- four thousand to four million eight hundred and forty-four thousand dollars. These figures certainly reflect the thrift and prosperity of the people, and encourage the hope that a still brighter era is opening for this city.
Premium and reserve for int.
Reserve
755
BANKS AND BANKING
Bank of Saginaw
The standing of every community is to a certain degree based upon the soundness of its banking institutions, and the progress made upon the broad yet conservative management of its bankers. The Bank of Saginaw has been a tower of strength in the upbuilding of Saginaw, and is one of the pillars upon which the commercial rating of the city depends. It was organ- ized in 1888, succeeding to the business of the Citizens National Bank which was one of the leading banks of Saginaw City.
The Citizens National Bank was organized in 1880 by the later Daniel Hardin, Washington S. Green. L. Penoyer and others, and conducted an active and prosperous business, its safe and conservative methods commend- ing it to the confidence and approval of the citizens of Saginaw and vicinity. Transacting a general banking business, loaning money on approved security, discounting acceptable commercial paper, issuing exchange upon the leading cities of this and foreign countries, and paying careful attention to collections, the bank built up a large business. The officers were: D. Hardin, presi- dent : L. Penoyer, vice-president ; and D. W. Briggs, cashier ; and the bank- ing office was located at 406 Court Street.
The Board of Directors was composed of the officers and W. S. Green. of Green, Ring & Company. Green & Noble, Green, Hardin & Company and the Tobacco River Lumber Company; P. Bauer, the well known clothier ; and G. K. Grout, an attorney of twenty years experience. The condition of the bank on October 5, 1887, as shown in a published report, had a paid-in capital of one hundred thousand dollars, a surplus fund of twenty-five thou- sand dollars, and undivided profits of thirty-four thousand three hundred dollars, while its resources amounted to six hundred fifty-five thousand, six hundred and seventy dollars.
Upon acquiring this valuable banking business the Bank of Saginaw, with a capital and surplus of two hundred thousand dollars, was in a position to extend its field of legitimate banking, and accommodate the large lumber- ing interests in extensive timber land deals and in huge lumbering operations. The directors were: Aaron T. Bliss, Myron Butman, Peter Bauer, Arthur Barnard. W. S. Green. Benton Hanchett, Thomas Merrill, Clark L. Ring and James E. Vincent. The increasing business of the bank was in charge of Myron Butman, president ; Benton Hanchett, vice-president ; D. W. Briggs, cashier ; and .1. 1). F. Gardner, assistant cashier.
In its equipment and facilities for doing an extensive business the Bank of Saginaw is unexcelled ; and its history shows a constant growth. Not only has it gained a high place in the confidence of the people and extended its business along progressive and safe and conservative lines, but it has added greatly to its prestige and the volume of its transactions by the acquisition of other and smaller banks in Saginaw, by absorption and consolidation. Its advancement in this regard is very marked, no less than five prosperous insti- tutions having been brought under its management. This expansion has resulted in a general broadening of its operations, and it reaches out to every section of the city for increasing business, and at the same time affording banking facilities to business men and others never before directly served by any bank.
The first bank to be consolidated with the Bank of Saginaw was the First National Bank of Saginaw, whose president was Ammi W. Wright, of Alma. This amalgamation took place carly in 1898, and added a considerable busi- ness to that of the former bank. At this time Thomas W. Stalker, cashier of the First National, joined the official force of the Bank of Saginaw. For about eight years he held the position of first assistant cashier, but ill health com- pelled him to resign.
756
HISTORY OF SAGINAW COUNTY
BANKO SAGINAW
EAST SIDE OFFICE OF THE BANK OF SAGINAW
On January 1, 1899, the American Commercial & Savings Bank, of which William Barie was president, sold its business, good will and banking prop- erty to the Bank of Saginaw. The East Side office of the latter bank, which had been established December 12. 1897, was thereupon removed into the banking office of the American Bank, and Ilugo G. Wesener, former cashier, assumed the office of assistant cashier. The business of the older bank was thus greatly increased, and from this time began to be regarded as a large factor in financial affairs of the East Side.
The policy of encouraging consolidation of the banking interests was continued, and in May, 1907, the extensive business and valuable banking office of the Savings Bank of East Saginaw, on Genesee Avenue, was taken over by the progressive Bank of Saginaw. This was a master stroke, as the amalgamation added a large savings bank business to the latter bank, and at once made it the largest and most powerful banking institution in Saginaw Valley and, indeed, in the whole eastern and northern sections of the State. and it is now the largest bank in Michigan outside of Detroit. The deposits of the Bank of Saginaw at that time exceeded five and a half million dollars, and its total resources exceeded six and a half millions.
Still not content with the magnificent business thus attained by these consolidations and by the natural increase in business due to careful and
757
BANKS AND BANKING
conservative conduct of its business, the bank absorbed the savings bank business and property of the Saginaw County Savings Bank, a solid and suc- cessful institution which had been founded by the late Richard Khuen, Aaron T. Bliss, Isaac Parsons and others, nearly thirty years before. This consoli- dation resulted in Charles A. Khuen, former treasurer of the savings bank, being elected vice-president and first assistant cashier of the Bank of Sagi- naw, a position he has since held. In 1915 the business of the private bank of George L. Burrows & Company, the oldest banking institution in the valley, was taken over by the big bank, further reducing the number of banks in this city.
To keep pace with the expanding business and offer superior facilities for the accommodation of the people, the bank purchased the property at the corner of Court and Hamilton Streets, and in 1911 and 1912 erected a fine modern banking office, splendidly equipped with every appliance and con- venience for the rapid and successful conduct of its large business on the West Side. Meanwhile, the business of the East Side office, which had become extensive, had been moved into the fine banking office of the old Savings Bank of East Saginaw, which offered superior facilities for conducting an increasing business.
The expansion, so far as office equipment and conveniences, did not cease here, and in 1912 the bank purchased the private bank of Lockwood & Barnard, at South Saginaw, which had been established several years before. Soon after a new and complete banking office was erected at the corner of Fordney and Center Streets, the center of the business section. Not long
SPACIOUS AND CONVENIENTLY ARRANGED BANKING OFFICE AT 310-12 GENESEE AVENUE
758
HISTORY OF SAGINAW COUNTY
after another branch office was established at North Saginaw, in a modern business block which had been built some time before by the late Aaron T. Bliss, once governor of Michigan. The total assets of the Bank of Saginaw are now (1918) in excess of thirteen million dollars.
The officers of the Bank of Saginaw, in 1918, were: Benton Hanchett, president ; Otto Schupp, vice-president and cashier; C. A. Khuen, vice-presi- dent and assistant cashier : S. S. Roby, F. J. Schmidt, A. B. Williams, R. T. Wallace, assistant cashiers; and J. Hollandmoritz, auditor. The directors were : Benton Hanchett, 11. B. Allen, William Barie, Arnold Boutell, Charles E. Brenner, Edgar D. Church, William C. Cornwell, Fred J. Fox, Theodore Iluss, C. A. Khuen, J. G. Macpherson, E. A. Robertson, Otto Schupp, G. M. Stark, William J. Wickes and George W. Weadock.
Statement of Condition At the Close of Business, December 31, 1917.
Resources
Liabilities
Loans and Discounts. . $ 5,991,813.01
Capital Stock 5 500.000.00
Bonds and Mortgages ..
3,470,708.66
Surplus
700,000.00
Banking Houses, etc .. .
202.242.93
Undivided Profits 234,529.30
Cash and in Banks ..
2,812,374.32
Bills Payable & Prem. 427,759.07
Deposits
10,614,850.55
$12,477,138.92
$12,477,138.92
BAWE' OF' SAGINAW
THE WEST SIDE OFFICE OF THE BANK OF SAGINAW
759
BANKS AND BANKING
The Saginaw Valley Trust Company, Saginaw, Michigan.
This strong and well managed trust company, the youngest of Saginaw's financial institutions, received its charter from the banking department of the State of Michigan, and opened its doors for business on January 3, 1917. The capital stock as originally subscribed was two hundred thousand dollars, and the surplus fund was fifty thousand, a financial backing of ample strength to enable the company to handle any and all business that may be entrusted to it.
If this of itself were not sufficient to create for it a permanent feeling of security and stability among the people, its list of more than one hundred stockholders, who comprise the most substantial and successful business men of Saginaw and Eastern Michigan, would certainly place the institution in the forerank of Michigan trust companies.
Its first board of directors consisted of George A. Alderton. William J. Orr, Samuel E. Symons, W. J. Rachow, Benjamin G. Appleby. William B. Baum, W. T. Cooper, Peter Drummond. Otto Dittmar, Joseph W. Fordney, Julius R. Liebermann, Charles E. Lown, August C. Melze, Harry E Oppen- heimer, John 11. Qualman and William C. Wiechmann, of Saginaw ; and William C. Fitzpatrick. Frank W. Blair and John P. Hemmeter, of Detroit ; C. F. Bach, of Sebewaing ; H. A. Chamberlain, of Standish, and George M. Nason, of Chesaning, Michigan.
Its first officers were: George A. Alderton, president ; W. J. Orr, S. E. Symons and W. J. Rachow, vice-presidents; W. J. Rachow. secretary ; William Meissner, assistant secretary : William B. Baum, treasurer; and Charles F. Peckover, manager of the abstract department.
The banking house of the Saginaw Valley Trust Company, conveniently located at 109 South Jefferson Avenue, is well appointed and properly ar- ranged for the transaction of business which comes to its several departments. At the front is the conference room and office of the secretary, adjoining which is the savings department with its burglar proof vaults. In the large space at the rear of the office is the Abstract Department, in which is filed the only complete set of abstract books of Saginaw County. The department is in charge of competent and experienced clerks, who make abstracts of title. check up and extend old abstracts, and attend to business of this nature.
The company does a general trust business and acts as executor under wills. administrator of estates, trustee for bond issues or for minor children ; receiver or assignee, registrar and transfer agents for corporations, and in all other recognized trust capacities. There is a large field in this section of the State for the exercise of these functions, and this company is perfectly equipped to care for all the business offered.
A feature of the Savings Department is the liberal form of its Certifi- cates of Deposit, which yield interest at the rate of four per cent. per annum. Certificates are issued in any amount from one hundred dollars and upward, and may be sent through the mails without risk of loss or theft. Interest is computed from date money is received ; and if funds are not withdrawn the certificates automatically renew each year, the holder receiving the interest semi-annually by mail as long as the deposit continues. All the necessary records of certificates are kept by the company, thus relieving the holder of watching interest dates. The certificates are the direct obligation of this company, secured by the capital stock. surplus, and an additional stock- holders liability of two hundred thousand dollars.
At the annual meeting of the stockholders, on December 11, 1917. the number of directors for the second year was reduced to seven ; and the officers were re-elected, with the exception of treasurer whose office was combined with that of the secretary.
760
HISTORY OF SAGINAW COUNTY
THE SECOND NATIONAL BANK BUILDING
The Second National Bank.
The Second National Bank of Saginaw was organized and incorporated in December, 1871, and has successfully passed through the financial vicissi- tudes of the past forty-eight years, with an unbroken record of conservatism, fair-dealing and absolute safety to its depositors.
The history of this old and sound bank rightly begins with a reference to the banking house of C. K. Robinson & Company, which was established in January, 1866. Its office was originally in a building erected on the ground where the old Exchange Hotel stood "before the fire." The capital of this private bank was twenty thousand dollars, composed of equal shares paid in by C. K. Robinson, Doctor George W. Fish, W. W. Woodhull and N. C. Richardson. C. K. Robinson was manager, and W. E. McKnight was teller and bookkeeper. In the Fall of 1867 Mr. Woodhull withdrew his interest, which was followed by the same action of some other partners, so that in December, 1870, Mr. Robinson was the sole representative of the original concern. In the following January Alice L. Coats, a daughter of Colonel W. L. P. Little, having invested five thousand dollars in the capital of the bank, became an equal partner with him.
761
BANKS AND BANKING
On March 12, 1872, the banking house of C. K. Robinson & Company was taken over by the Second National Bank of Saginaw. The capital stock was two hundred thousand dollars, and the first officers of the latter insti- tution were: C. K. Robinson, president ; Roswell G. Horr, cashier ; and W. H. Coats, assistant cashier. The directors were C. K. Robinson, R. G. Horr. A. B. Wood, George W. Morley and F. P. Sears. The banking office was conveniently arranged in a central location, adjoining the Bliss Block ( Mason Building ) on Genesee Street, which it occupied for nearly twenty-four years. Its success in the banking world was based on a due regard for the safety of its patrons and strict adherence to a narrow road of caution and integrity.
On January 1, 1896, the Second National Bank took over and absorbed the Home National Bank of Saginaw, which went into liquidation. This was an important move for the former bank, as it gained a large and profitable business, and its prestige was correspondingly increased. The bank thus fell heir to the oldest banking institution in Saginaw Valley, which traced its origin, through the old Merchant's National Bank, to the private bank of W. L. P. Little & Company which was established in November, 1855. It is a historical fact of some interest that The Second National Bank of Sagi- naw, and the banks to which it succeeded, have been in continuous business in this city for a period of sixty-three years.
The Second National Bank at once removed its banking office to the Home Bank Building, which is advantageously situated on North Washing- ton Avenue, near Genesee Avenue, close to the center of the city's business section. The banking office was remodled, enlarged and refitted throughout much to the improvement and convenience of the bank ; and alterations have since been made which have rendered the office well appointed and fully equipped for the transaction of a large business.
All branches of commercial banking, including foreign exchange, are conducted; and a savings department and safety deposit vaults are main- tained. Each department is managed by a competent head, with capable and courteous employees. The commercial department is located on the main floor, where the largest part of the bank's business is transacted. Here are also the offices of the president and cashier ; also a director's room. On the ground floor are the savings department and safety deposit vaults.
Interest on savings deposits is paid at the rate of four per cent. per annum, and savings accounts may be opened with a deposit of one dollar or more. A savings account will provide for emergencies which are likely to arise in the best regulated families. The husband and wife saving for less prosperous days, the child forming the habit of saving, the professional man laying away the fruits of an exceptional year, or the business man putting safely away his private income and surplus profits, should all open a savings account. For this purpose The Second National Bank offers every facility.
The bank gives particular attention to its Safety Deposit Vault Depart- ment, which offers absolute security against fire or burglary at a moderate rental. The boxes are of various sizes to meet every need ; and the vaults are in charge of a special custodian and afford the utmost privacy and protection.
The continued growth and influence of this bank, as indicated by its statements and the good will of its patrons, are very tangible evidences of the high regard in which the institution is held by the business interests in this section of the State. With ample capital. a wide banking experience and conservative management, this bank offers every reasonable inducement and facility which a commercial and savings bank can offer. It offers to its patrons the service of trained minds for advice in business matters, and many a Saginawian has received counsel as to the business that has been in- valuable and brought success to his efforts.
762
HISTORY OF SAGINAW COUNTY
This branch of its activities has brought The Second National Bank of Saginaw into close touch with commercial affairs, and has bound many patrons by ties of gratitude and obligation that are as real an asset as actual cash in making for strength and solidity. This bank stands for the best principles in banking, and not in the slightest degree does it deviate from this standard, public confidence and trust being exemplified in every way by those who come into touch with the institution.
In 1918 the officers of The Second National Bank of Saginaw were : George B. Morley, president: Walter S. Eddy, vice-president ; Albert H. Morley, vice-president ; Edward W. Glynn, cashier ; and Alfred H. Perrin, assistant cashier. The directors were George B. Morley, Walter S. Eddy. Stanford T. Crapo, Frank D. Ewen, Arthur D. Eddy, James B. Peter, William H. Wallace, Frederick Carlisle, Peter Corcoran, Charles A. Bigelow, and Elmer J. Cornwell.
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