USA > Michigan > Wayne County > Detroit > The city of Detroit, Michigan, 1701-1922, Vol. I > Part 66
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The Second National Bank was organized on a liberal scale in 1863 with capital of $500,000, which was increased two years later to $1,000,000, making it one of the largest national banks in the West. Sen. Zachariah Chandler was interested in its organization, and its first board of directors contained other men of political, as well as business prominence. They included C. H. Buhl, Eber B. Ward, Henry P. Baldwin. James F. Joy, Allan Sheldon, John Stephens, Chauncey Hurtbut, Duncan Stewart and N. W. Brooks. Henry P. Baldwin was the first president and Clement M. Davison, cashier, both serving for many years. The bank was to an unusual degree conducted by the directors, who met daily. When its first twenty-year charter expired the bank was reorganized as the Detroit National and at the end of the next twenty years it became the Old Detroit National. The American Exchange National was taken over by the Old Detroit in 1912. Previous to its merger with the First the Old Detroit had capital of $2,500,000, deposits of $23,000,000 and resources $26,396,000.
The merger of these two institutions under the name of the First & Old Detroit National Bank took place in 1914. It then became one of the strongest
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national banks outside of the financial centers of New York and Chicago, and has increased its business steadily since then. When the June, 1920, statements were made, it had capital and surplus of $7,500,000, deposits $79,496,000. The bank until 1922 occupied a larger part of the first floor of the Ford Building. In 1919 it brought the Pontchartrain Hotel property, corner of Woodward Avenue and Cadillac Square and in February, 1922, completed on the site the tallest bank building in Michigan. This, one of the most costly blocks in the city, will be primarily for the use of the bank, the First National Association, a stock and bond organization established under the auspices of the bank, and the Central Savings, which will be combined with the First and Old Detroit. In January, 1922, the name of the institution, First and Old Detroit National, was officially changed to the First National Bank in Detroit. Emory W. Clark is president, with a long list of directors, vice presidents and a cashier.
WAYNE COUNTY AND HOME SAVINGS BANK BY CLARENCE M. BURTON
The record of the Wayne County and Home Savings Bank is one of con- tinued progress from its start. The present institution is a combination of several prosperous banks consolidated in order to give greater power for the transaction of business and to unite under one head all of the various activities that pertain to banking at the present time.
It came into existence just at a time when Detroit was awakening to the necessity of more banks, and of a kind of bank not known up to that time.
It, at first, was a savings bank exclusively. The violent antipathy against all banking institutions that started with the failure of the banks of 1836, and continued unabated for many years, began to subside in 1857. The state constitution of 1850, while acknowledging the necessity of banks, undertook to so hedge around their management, that the Legislature was nearly powerless to aid them. Only two banking institutions, for Detroit service, were chartered between 1837 and 1857. The views of the public were so far changed by 1857 that a general banking law was passed and adopted, as required by the eon- stitution, by a general vote of the people.
Then began efforts to collect money for organization. Although the neces- sity was felt, confidence was lacking. No banks were organized. In 1861 came the War of the Rebellion and the organization of National Banks.
For a time it was thought that the Federal Banks would be sufficient, but there was no provision for taking care of the savings of the laboring people, nor was there any provision for loaning money for the building of homes. No money could be obtained for aiding a family in distress by loaning money on a mortgage on their real estate.
Private bankers and money loaners took advantage of the situation and the rate of interest rose far above the legal limit of ten per cent. Several unim- portant amendments were made to the law of 1857 and all of them were sub- mitted to be voted upon and were approved at the elections. It was found that it was too difficult to follow a bill through the Legislature and then submit it to a general vote in order to amend the law. Much time was taken and energy wasted. The constitutional provision did not work properly. In 1862 an amendment to the constitution was submitted to the people and adopted.
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This simplified the bank law so that amendments could be made by a two- thirds vote of the Legislature.
In 1869 an act was passed by the Legislature permitting the establishment of Savings Institutions. This aet did not pretend to permit the establishment of savings banks but the organizations were more in the nature of Building associations. Several institutions were organized under this law, but the act was so uncertain that none of the so-called "Banks" were willing to continue under the provision of the aet.
The bill for the establishment of Savings Banks was introduced in the Legislature early in its session in 1871 and was carefully watched by those of Detroit who were interested in it. It was an amendment of the law of 1857. It was enacted March 31, 1871, and became operative July 16th, following. It provided that the capital stock of each bank should not be less than $50,000.00, of which three-fifths should be paid in. It could receive money on deposit from mechanies, clerks, servants, married women, minor children and others. One peculiarity of the law was that married women and minor children were authorized to act independent of the husbands of the women or the guardians of minors. This was a very early emancipation of these classes of persons. The affairs of the bank were to be managed by "Trustees or Di- rectors" and the early officers selected were deemed "trustees." All such banks were to be designated as Savings Banks. The Banking Department was under the State Treasurer.
Immediately upon the passage of this law a number of Detroit citizens got together and signed a call for a publie meeting to organize a Savings Bank. The call was dated April 10th, 1871, and the meeting was to be held April 28th, 1871, in the office of T. W. Palmer in the Merrill Block.
The banking law did not become operative until ninety days after the final adjournment of the Legislature, so that there was ample time to perfect the articles for the organization of the institution before that date. The prominent feature of the bank, a plan that was then adopted and ever afterwards closely . adhered to, was that it should be strictly a savings bank; that no commercial business should be transacted; that the loans of the bank should be on mortgages and collaterals and not on endorsed paper.
Its first president was William B. Wesson, who was one of the chief organizers and principal stockholders. He was an extensive land owner and dealer. He did more than any other single individual of his time in providing homes for people of small means. That Detroit for many years was known as the City of Homes is largely due to Mr. Wesson.
The secretary and treasurer at the first organization was Samuel Dow El- wood. He had been in the city and connected with it for many years. He was one of the Argonauts of '49 and for a short time carried on a bank at Petrolia in Canada. With these exceptions most of his business life was spent in Detroit, managing a book store until the formation of the Wayne County Savings Bank in 1871. Of the several men in the organization, he was the only one who had had any previous banking experience. It was largely through his efforts that Mr. Wesson became interested, and his ideas of the operation of such a bank entirely agreed with those of the president.
The capital stoek of the new bank was fixed at $50,000.00, the lowest amount allowed by the law. The articles of association were drawn up and dated September. 18th, 1871, and the stock entirely subscribed for and the articles
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WAYNE COUNTY AND HOME SAVINGS BANK
PEOPLES STATE BANK
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filed with the State Treasurer. The list of incorporators differed but slightly from the list attached to the original call. The incorporators were:
William B. Wesson, S. Dow Elwood, Jacob S. Farrand, Stanley G. Wight, Paul Gies, David Knapp, Jerome Croul, William C. Duncan, Francis Adams, Martin S. Smith, David M. Richardson, Lemuel P. Knight, John B. Suther- land, John J. Bagley, George F. Bagley, William A. Moore, Dexter M. Ferry, Herman Kiefer, Traugott Schmidt, Jefferson Wiley, Thomas W. Palmer, Kirk- land C. Barker.
Only thirty thousand dollars was paid in at the time of the opening of the bank.
The building on the northwest corner of Congress and Griswold Streets was erected about 1852 by the firm of Crane and Wesson (Albert Crane and William B. Wesson). This building was at first called the Crane and Wesson Building, but when Mr. Crane moved to Chicago, the partnership practically ended and the building then became the property of Mr. Wesson and was known by his name. When preparations were being made to organize the new bank and a location was needed, the Wesson Building was raised from its foundation and another story placed beneath it. It was the first effort in Detroit to raise or move a brick building. In the basement or first floor of this building the Wayne County Savings Bank was first opened for business on Monday, October 2nd, 1871.
The first board of trustees consisted of John J. Bagley, Jerome Croul, J. B. Sutherland, Jefferson Wiley, M. S. Smith, S. G. Wight, D. M. Ferry, Paul Gies, L. P. Knight, William B. Wesson, Traugott Schmidt, D. M. Richardson, William C. Duncan, T. W. Palmer, Herman Kiefer, Francis Adams, K. C. Barker, George F. Bagley, J. S. Farrand, David Knapp, William A Moore, and S. D. Elwood. It would have been impossible to have searched the city through and have found a better or more representative list of directors.
These were all responsible and well known business men of the place. From among their number they elected William B. Wesson, President; Dr. Herman Kiefer, Vice President; S. Dow Elwood, Secretary and Treasurer; and William A. Moore, Attorney.
A savings bank was a new thing for Detroit, but the officials were so well known that great confidence was reposed in it from the very start and the savings deposits began to eome in at once.
The business grew so rapidly that in a few years it became apparent that new and larger quarters for the bank would be needed. The land on Congress Street just west of the Wesson Building was occupied by Dr. Nehemiah Stebbins as a residence. The capital of the bank was increased to $100,000.00 and with the additional money the Stebbins lot was purchased in September, 1875, and a new building begun for a banking house and offices. Into this new building the bank moved on the 15th of December, 1876.
The bank, by amended articles of association, changed its name to the Wayne County and Home Savings Bank, April 29th, 1913. It continued to occupy the Congress Street quarters until the new building was completed at the corner of Michigan Avenue and Griswold Street. The Congress Street lot was sold January 1st, 1916, but the bank retained the right to occupy the premises for some time.
The Wayne County Savings Bank had but three presidents during its sepa- rate existenee. The first president, William B. Wesson, served from 1871 till
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his death June 18th, 1890. S. Dow Elwood succeeded him and served until his death in 1898. His successor was Charles F. Collins, who remained president until the consolidation in 1913 and has since that time been chairman of the Board of Directors.
HOME SAVINGS BANK
The Home Savings Bank was organized in 1888. The first meeting of the stockholders of the proposed bank was held at the office of William C. May- bury, November 8th, 1888, and forty-one persons were present. Carlton H. Mills presided and J. S. Schmittdiel was chosen secretary.
It was resolved to name the new bank the "Home Savings Bank of Detroit." The following persons were then elected directors:
James McGregor, W. J. Gould, Charles C. Yemans, C. C. Blodgett, George W. Radford, William C. Maybury, Carlton H. Mills, E. Ferguson, C. V. Bryan, Augustus Rouff, Waring H. Ellis, John S. Schmittdiel.
Two days later the directors met and elected James McGregor, President; William C. Maybury, Vice President; and John S. Schmittdiel, Cashier. It was resolved to rent the banking office at the southerly Griswold Street entrance to the MeGraw Building, for the bank. It was at first intended to fix the capital of the bank at $100,000.00 but on December 11th, 1888, the capital was increased to $200,000.00.
On the second day of January, 1889, the bank opened for business.
The property on the northeast corner of Michigan Avenue and Gris- wold Street was owned by Robert P. Toms. Mr. Toms at his death devised it to his wife, Sarah C. Toms, and from her it passed to her sister, Mrs. Julia F. Owen. A building was erected on this site, the inside portion being occupied by Mr. Waring H. Ellis, who was a tobacconist, the corner being occupied by the bank. The quarters were better and more commodious than the old location.
The building was completed and occupied by the bank May 30th, 1894. The ground floor only was used for banking purposes and the upper floors were rented for offices. The land was leased by Mrs. Owen to the Home Savings Bank, March 2nd, 1892, and the lease was assigned to the Home Savings Bank Building Co. in 1893 and again assigned to James McGregor in 1895. In 1911 the bank purchased the land and in 1913 became the owner of the leasehold interest as well.
James McGregor, who had served as president of the bank since its organi- zation, died February 19th, 1909, and at the meeting of the directors on March 3rd following, Julius H. Haass was elected president to succeed him.
The prospects of the new bank encouraged the directors to begin the erection of a larger and more commodious building on the Michigan Avenue and Gris- wold Street corner and the Home Bank was moved to the Hammond Building, April 14th, 1914, and the old building was taken down and the present building erected. At that time the bank was divided into three sections: The Home Bank in the Hammond Building, the Michigan Bank in the Moffat Building and the Wayne County Bank in its old quarters on Congress Street.
The Michigan Bank soon surrendered its location to the Security Trust Company and moved across the street to the Hammond Building. On the 20th day of December, 1915, the three banks were united in the new building at the corner of Michigan Avenue and Griswold Street.
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MICHIGAN SAVINGS BANK
The bank was organized February 17th, 1877, and opened its doors for business on the second day of April in that year. Its original capitalization was $60,000, which was increased to $150,000 May 1st, 1882.
The first board of trustees consisted of :
Thomas McGraw, Archibald G. Lindsay, Nicol Mitchell, Newell Avery, Julius Stoll, Joseph Kuhn, George Peck, H. Kirke White, George W. Balch, William Perkins, Jr., Horace M. Dean, Samuel R. Mumford.
The banking office was in the McGraw Building on the southwest corner of Lafayette Boulevard and Griswold Street. Thomas McGraw, then owner of the McGraw Building, was the first president of the bank, and Samuel R. Mum- ford was the first secretary and treasurer. Mr. McGraw resigned the presi- dency in 1880 and George Peck was elected president and retained the office by continued reelection until his death, and Mr. Charles C. Jenks was elected to the office and remained there until the consolidation with the Wayne County and Home Savings Bank, October 21st, 1914. The banking office was moved from the McGraw Building to the Moffat Building in 1908.
The establishment of branch banks in different parts of the city for the accommodation of districts remote from the principal bank in the down town district was a matter unheard of in Detroit or elsewhere up to the year 1889. On May 1st of that year the Home Savings Bank opened a branch at the inter- section of Junction Avenue and the Michigan Central Railroad crossing. The idea was well liked and the branch soon became popular. This is probably the first branch bank opened by any bank in the country. The branch bank was later moved to Michigan Avenue at the Western Market and is now known as the Michigan Avenue Branch.
MICHIGAN NATIONAL BANK
The Michigan National Bank was organized under the National Banking Law. The stock of the bank was purchased in the interest of the stockholders of the Wayne County and Home Savings Bank, December 22nd, 1916. The banking office was located at the corner of Mack and St. Jean Avenues and was converted into a branch bank December 30th, 1919.
WAYNE COUNTY AND HOME BANK OF HIGHLAND PARK
Another bank, the stock of which is. owned in connection with the Wayne County and Home Savings Bank, is the Wayne County and Home Bank of Highland Park. It was opened for business in its own building on the corner of Glendale Avenue and Hamilton Boulevard, November 3rd, 1920.
The capital is $100,000.
The directors are: Julius H. Haass, George Wiley, John A. Mercier, John M. Donaldson and Clarence M. Burton.
The officers are Julius H. Haass, President; George Wiley, Vice President; Hugh R. Burns, Vice President and Cashier; and Raymond W. Ladendorf, Assistant Cashier.
TRUST COMPANY
There was another law passed by the Legislature in 1871 for the organization of Trust Companies. Under this act there was incorporated January, 1872, the Trust, Security and Safe Deposit Company of Detroit. Vaults were fitted up in the rear of the Wayne County Savings Bank on the corner of Griswold and Congress Street and four hundred boxes were prepared for leasing. The
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law under which the company was organized permitted it to carry on a general trust business. In the words of the act of the company "shall have power to accept and execute any trust which may be created by instruments in writing, appointing such corporation trustee, and to act as such trustee in all matters embraced in such trust; to take and receive from any individual or corporation, on deposit for safe keeping or storage, gold and silver plate, jewelry, money, stocks, securities and other valuable property, and may have power to collect coupons, interest and dividends on said securities and to rent out the use of safes and other receptacles on their premises upon such terms and for such compensation as may be agreed upon; to become security for administrators, guardians or other trustees or persons, in cases where, by law or otherwise, one or more securities are required, for a rate of compensation, and upon such terms and conditions as shall be established by the directors of such corporation."
This is the first Trust Law of the State of Michigan and the Trust, Security and Safe Deposit Company of Detroit was the first trust company in the State. Trust companies, as operated at the present time, were unknown in Michigan in 1871 and for many years thereafter and this Trust Company confined its operation to owning and managing and renting the vaults and boxes mentioned. The capital was $250,000, of which $30,000 was paid in. The stockholders were nearly the same as those of the Wayne County Savings Bank.
The directors, with the consent of the stockholders, sold all of the property of the corporation, including its franchise, to the Wayne County Savings Bank, July 7th, 1900, and filed a dissolution of the company January 5th, 1901.
SAFETY DEPOSIT VAULTS
As this bank was the first in Detroit to establish safety deposit vaults to be leased to customers for the protection of their valuables, so it has kept pace with all the modern improvements in that line. These vaults are in the Main bank building at the corner of Michigan Avenue and Griswold Street beneath the bank. Rooms for the accommodation of patrons are well apportioned and abundant. The vaults are marvels of fine and artistic work and are guarded and protected by everything that is necessary to make them secure. There are at present 7,602 boxes. There are also safety deposit vaults in Boulevard and Woodward office.
The Wayne County and Home Savings Bank, on April 29th, 1913, had a capital of $2,000,000.00 and surplus of $2,000,000.00.
The capital was increased October 7, 1914, to $2,500,000.00; again April 6, 1916, to $3,000,000.00 and on May 26, 1920 was raised to $4,000,000.00.
The present officers of the bank and directors are as follows:
Charles F. Collins, Chairman; Julius H. Haass, President; George Wiley, Vice President; W. V. Moore, Vice President; Wm. S. Green, Vice President; Edwin J. Eckert, Vice President; Arthur E. Loch, Vice President; Rupert Pletsch, Vice President; George H. Johnstone, Cashier.
PEOPLES STATE BANK
The largest of the state banks have also been the result of consolidations. The general banking law of 1858 did not make adequate provision for savings banks, but in 1871 the law was amended by the addition of twelve sections, which remained in force until the general law of 1888 was enacted. The first bank organized under the amendments was the Peoples Savings Bank.
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THE NATIONAL BANK OF COMMERCE
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The Peoples State Bank had its beginning in 1871, when a company of ten men, including Francis Palms, Anton Pulte, John Schulte, William Foxen, Aaron Karrer, John Heffron, C. J. O'Flynn and M. W. O'Brien, subscribed $3,000 each, or a total of $30,000, and associated themselves as a banking company. These men had a vision of a popular "people's bank," standing for frugality and cooperation, and chose a bee-hive for the bank emblem. Mr. Francis Palms was chosen president, and Mr. M. W. O'Brien, who had been induced to close out his lumbering business in Saginaw, and come to Detroit to join in the new enterprise, was made cashier. The building at 55 Woodward Avenue, near Jefferson, was occupied by the new bank, where it opened for business January 2,1871.
Articles of amendment to the state banking law were passed by the legis- lature during that year, and the Peoples Savings Bank was organized under the new laws January 2, 1872. This was a most important year to the bank, as it not only incorporated under the new State Savings Bank Law, but doubled its capital to $60,000, and moved to the Telegraph Block, corner of Griswold and Congress streets, in the very heart of the "financial district." There it remained for nearly twenty years.
During the "panic of 1873," which threw many enterprises into bankruptcy, the Peoples Savings Bank not only stood the strain, but seemed to thrive in spite of discouraging financial conditions. In January, 1874, the capital stock was increased to $120,000, and in 1876 the bank again found it necessary to increase its capital-this time to $250,000, and five years later, in 1881, the capital stock was doubled, bringing it to $500,000. In November, 1886, Mr. Palms died, having served continuously as president for over fifteen years. In May, 1887, Mr. O'Brien was advanced to the presidency, being succeeded as cashier by Mr. S. B. Coleman.
In January, 1890, the bank moved to the Moffat Block, and the same year Mr. George E. Lawson was elected cashier, succeeding Mr. Coleman, resigned. In January, 1907, the bank amalgamated with the State Savings Bank, chang- ing the name to the Peoples State Bank. The State Savings Bank had been organized in 1883 by two Kentucky capitalists, Messrs. David Hamilton and T. S. Anderson. Having ample means, they found it unnecessary to seek local stockholders, but realizing their need of a cashier who was thoroughly acquainted with local banking, they tendered this position to Mr. R. S. Mason, who was then a paying teller in the First National Bank. Mr. Mason accepted the position, and later became one of the vice presidents of the consolidated banks. This bank opened for business at SS Griswold Street, and later moved to the Buhl Block and in 1890 to the Hammond Building. In 1889 Mr. Anderson resigned as president, and sold out his interest. He was succeeded in the presidency by Mr. George H. Russel, under whose administration a new building was erected at the corner of Fort and Shelby Streets, which was completed in 1900, and which is the present home of the Peoples State Bank. The consolidated banks opened as a united institution on June 1, 1907, with Mr. Russel as presi- dent.
In November, 1909, the United States Savings Bank was acquired by pur- chase. This bank had its beginning in 1877, when Andrew MeLellan and George Anderson started in the banking business in the basement of 92 Griswold Street, under the name of "Mclellan & Anderson, Bankers," and continued under this name until 1908, when the name was changed to the United States Savings Bank.
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