USA > Minnesota > Hennepin County > Minneapolis > Compendium of history and biography of Minneapolis and Hennepin County, Minnesota > Part 40
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The name chosen, the Northwestern, was sug- gested by the name of the wide territory that the institution was destined later to serve-the North- west. It has apparently been an inspiration through- out its existence, as the growth of this territory, re- markable though it has been, has been accompanied by a parallel growth of the bank assuming its name.
In September, 1872, the new institution opened its doors to the publie. The location that had been chosen as the most advantageous site in the financial district was 100 Washington Avenue South. The capital had been placed at $200,000, but this amount sufficed for a few years only. It was increased in 1876 to $300,000, and at varying periods thereafter, as the need arose, to $500.000. $1,000.000. $1.250,000. $2,000,000, and finally, in 1909, to $3,000,000. Its present capital, surplus, and undivided profits are $5.698,000.
Towards the close of the '80s the volume of the
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HISTORY OF MINNEAPOLIS AND HENNEPIN COUNTY, MINNESOTA
bank's business had increased to the point of over- taxing the offices at Washington Avenue. Following the up-town tendency they were removed, therefore, in 1891, to the newly completed Guaranty Loan, now called the Metropolitan Life, building. In the year following, 1892, the institution was granted its sec- ond charter. This renewal, besides indicating the passing of a twenty-year period of its life as a na- tional bank, marked the close of a first epoch of very substantial progress, and the beginning of a second even more notable. Its deposits had increased from $50,000 to $3,000,000. Minneapolis had grown rapidly, having arrived at a population of 200,000. The strategic location of the city and its increasing railway facilities were making it the important mar- ket of the Northwestern States. As for the North- west, the eyes of the whole nation were attracted by its vast development.
The bank had, indeed, already experienced a growth during its first twenty years that justified the comprehensive name, the Northwestern, chosen by its founders. Through the agency of its leading spirits, its career had been closely identified with that of its territory. The story of the reclamation of Mississippi water power at Minneapolis, of the modernization of the milling industry and the estab- lishment of its international supremacy in the Flour City, of the building up of Northwestern grain, him- ber, and mercantile businesses, is epitomized in such names, taken from the list of the bank's directors, as Van Dusen, Pillsbury, Janney, Peavey, Welles, Backus, Morrison, Dunwoody, and Wyman.
Further, the institution developed an unusual amount of striking financial talent. S. A. Harris, entering the bank in 1879, spanned in nine years all the offices from assistant cashier to president. James B. Forgan and David R. Forgan, each join- ing the management in the capacity of cashier, one in 1888 and the other in 1892, have attained national reputations, James B. Forgan being now (in 1914) president of the First National Bank of Chicago, and David R. Forgan the president of the National City Bank of the same city. Gilbert G. Thorne, who was elected cashier in 1896. is now vice president of the National Park Bank. New York. Edward W. Decker, entering the service in 1887, and Joseph Chapman in 1888, both as messengers, now hold the office of president and vice president in the bank of their first choice. As for junior talent, it is said that there have been more young men graduating from this bank to official positions in Northwestern banks than from any other bank in the United States .:
The roll of the presidents of this first charter period records that Dorilus Morrison was succeeded in 1875 by H. T. Welles. Mr. Welles served thirteen years, being followed by S. A. Harris. who was suc- ceeded in turn by George A. Pillsbury, in 1890. Among the directors elected during this twenty-year period were W. H. Dunwoody, Woodbury Fisk, Thomas Lowry, Winthrop Young, J. A. Christian. Anthony Kelly, M. B. Koon, F. H. Peavey, G. W. Van Dusen, O. C. Wyman, and T. B. Janney.
A season of national financial depression was ushered in by 1893, the first year following this epoch of great beginnings. The Northwestern, thanks to the soundness of its policies and the wisdom of its management, withstood the ordeal with excep- tional success. At the close of the year Mr. David R. Forgan, in the customary annual report of the cashier, made the following statement: "The past year has been a trying one. Not only had extraordin- ary care to be exercised in loaning money, but the financing, while New York banks had virtually sus- pended, was a constant worry. So many banks were failing all over the country that the ordinary routine work of sending checks and collections became a re- sponsibility requiring the most careful watching. The fact that we passed through the panic without losing a dollar, a check, or a collection by a suspended bank, I think not only reflects credit upon the man- agement, but shows that every member of the staff attended to his duties and followed his instructions carefully and intelligently." During the few years of national stagnation that attended this difficult year in 1893, it is significant that the deposits of the Northwestern not only maintained their high level but that they showed a steady increase. When gen- eral conditions at length became normal, the growth was rapid.
As a matter of fact, the second charter period, from 1892 to 1912, was a time of extraordinary growth for the institution. It acquired, indecd, a national reputation, its consolidations with other banks, as has been stated, assisting in thus raising its prestige among the great banks of the country. These consolidations may be noted as follows: On March 11, 1902, during the able administration of James W. Raymond, (who succeeded Geo. A. Pills- bury as president in 1898) the Northwestern pur- chased the business of the Metropolitan Bank of Min- neapolis. By its last statement before the sale, the Metropolitan showed a capital stock of $200,000, surplus and undivided profits $24.431.43, and indi- vidual deposits $1,188,049.75. Again, on June 6, 1908, the directors passed a resolution expressing the advisability of the purehase of the business of the National Bank of Commerce. Three days later this purpose was consummated. The capital of the ac- quired bank was $1,000,000, surplus $500,000, with a deposit liability of $6,650,036.67. On November 28th of the same year, the business of the Swedish- American National Bank was also taken over. The capital of this institution was $500,000, surplus $350,- 000 and its deposits, at the close of business on the dav of sale, were $3,769,619.15.
In a report to the shareholders at the close of 1908. the year of these latter two consolidations, Edward WV. Decker, then vice president, marked it as a won- derful year in the history of the bank: "The year has been in some respects the most important in our history. We began it with deposits of $12.900.000 ; we close with deposits of $25.500,000."
One more item is necessary to complete the record of the alliances of this bank with other institutions. The accommodations afforded by the functions of a
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HISTORY OF MINNEAPOLIS AND HENNEPIN COUNTY, MINNESOTA
trust company being found to be an increasing nced with a bank of its now commanding size, overtures looking towards an affiliation were made to the Min- nesota Loan and Trust Company at about this time. These efforts were successful and the desired affilia- tion was accomplished in 1909, the result being that the usefulness of both institutions was largely in- creased.
Midway in the course of this second twenty-year period, it was again found necessary to look for more commodious quarters. In 1902 ground space was leased on First Avenue Sonth, now Marquette, between Fourth and Fifth Streets. The new building that was erected thereon was completed in the sum- mer of 1904, and on July 25 of that year the busi- ness was transferred to the new offices. The build- ing is of steel skeleton fireproof construction. The facade is built of white Georgia marble; Italian marble is used in the interior, and the wood finish- ings are executed in Honduras mahogany. The affili- atcd Minnesota Loan and Trust Company occupies the connecting first floor of the adjacent Northwestern Bank building, a six-story structure acquired by the bank in 1909. This property is situated on the im- portant Marquette and Fourth Street corner.
The third charter, which served to mark the bank's fortieth anniversary, was received in 1912. This anniversary year was imposingly opened by a banquet given on January 4, at the Minneapolis Club in honor of President William H. Dunwoody and Vice President Martin B. Koon. Mr. Dunwoody had been elected to the presidency in 1903, succeed- ing James W. Raymond, and had been a director since 1876, while Judge Koon first entered the serv- ice of the bank in 1881 as director and had held the office of vice president since 1903. The banquet was especially noteworthy for the presence of men of high position in financial and commercial life, heads of great industries, and men of eminence in educa- tional and professional life, from all over the United States. This mark of honor was singularly timely, for only a short time later occurred the death of Judge Koon, and, two years later, that of his col- league.
Shortly after this gathering at the Minneapolis Club, Mr. Dunwoody was elected Chairman of the Board of Directors. He was succeeded in the presi- dency by Edward W. Decker, who, though still a young man, had long been connected with the bank. having joined the staff as a boy twenty-five years previously. After the death of Mr. Dunwoody, February 8, 1914, Oliver C. Wyman, President of the widely known firm of Wyman, Partridge & Company. and for twenty- two years a director of the Northwestern, was elected chairman of the board. The present officers (in 1914) are Edward W. Decker, president; Joseph Chapman and James A. Latta, vice presidents; Alex- ander V. Ostrom, cashier; Robert E. Macgregor, Huntington P. Newcomb. William M. Koon, S. H. Plummer, and Henry J. Riley, assistant cashiers.
As indicative of the extent of the business of this bank a writer in the Outlook in March, 1912, may be quoted : "Every one whom I consulted on bank-
ing matters," says the writer, "named the North- western National Bank as the largest and most in- fluential of its class. As the Northwestern carries open accounts with hundreds of county banks scat- tered over the big territory between Wisconsin and the Pacific, its books furnish as fair an index as can be found anywhere, not only of the existing state of business in the concrete, but of popular feeling as well. ''
The total Minneapolis bank clearings for 1913 were $1,312,000,000. To compare this amount with the Northwestern's, it may be stated that the clearings of the latter werc, during the same year, $422,000,000, or nearly one-third of the total. This figure was an increase for the bank of thirty-cight millions over its previous highest total. A more complete idea of the bank's business, however, is given in its total volume of business, by which term is mcant the aggregate of all credits entered on its books for a specified time. In 1913 this figure amounted to $1,982,000,000, or nearly two billion dollars.
This narrative of the Northwestern National, as is the case with all bank narratives, necessarily runs much to names and statistics, but to the reflective reader these details are highly significant. Between the lines runs a story of vigorous, progressive enter- prise coupled with that wise discretion that builds a bank success. In the phrase "established in 1872," which phrase is sometimes used to characterize the bank, is condensed a world of meaning. It implies strength and victory, bitter fights against pioneer con- ditions, and success over the obstacles imposed on the banks of a generation and more ago. The vic- tories of the Northwestern have served chiefly to harden its fiber into greater strength.
That this bank's duty towards its stockholders has been generously performed is shown by the fact that dividends averaging over cight per eent annually, or more than five and a half million dollars, have been paid since its organization. Dividends have never been passed. To the public the bank has al- ways endeavored to give the benefit of a banking service of the highest excellence. Among other items evincing this service it may be noted that a ladies' department, for many years a deservedly popular feature, was established in 1901. In 1905 a savings department was established, the Northwestern being the first of the national banks in Minneapolis to make this development. That a special care has been shown towards its employes is instanced by the pension system inaugurated for their benefit in 1911.
THE SECURITY NATIONAL BANK OF MINNEAPOLIS.
Messrs. T. A. Harrison, H. G. Harrison, and William M. Harrison, brothers, after a long busi- ness career in St. Louis and its vicinity came to Minneapolis in the later fifties and soon thereafter engaged in the lumbering business. On the death of William, about 1875, the two surviving brothers dis- continued the lumbering business, and having had extended experience as directors and officers of banks in Belleville, Ill., St. Louis, Mo., the First National
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HISTORY OF MINNEAPOLIS AND HENNEPIN COUNTY, MINNESOTA
Bank, St. Paul, and in Minneapolis banks, they de- cided to start a new bank in Minneapolis. They en- listed the cooperation of several of the leading busi- ness men in the city and organized the Security Bank of Minnesota, a State bank, which opened for busi- ness January 2, 1878, on the northwest corner of Hennepin Avenue and Third Street, with a paid in capital of $300,000 and with a board of seven direct- ors: T. A. Harrison, president; H. G. Harrison, vice president ; Joseph Dean, cashier; C. E. Vander- burg, J. M. Shaw, Franklin Beebe, and W. W. Mc- Nair, directors.
The Security Bank soon had a fair share of the banking business of the city and within three years had increased its paid-in capital first to $400,000, then to $1,000,000. It continued to occupy the bank- ing building on the corner of Third Street and Hen- nepin Avenue until 1890 when it removed to the Guaranty Loan Building, on Second Avenue South and Third Street, where it continued until the fall of 1906 when it removed to its present quarters in the Security Bank Building. The Security Bank of Min- nesota was conducted under its state charter as a State bank until June 1, 1907, when, pursuant to the laws of the United States, it was converted into a national banking association under the name the Security National Bank of Minneapolis, and has since been operated as a national bank. The stockholders from the first were careful to select conservative men for directors and officers of the bank and there have been few resignations.
In addition to a Board of Directors, the officers of the Security Bank consist of a president, four vice presidents, a cashier and three assistant cashiers. All of the present officers of the bank have been many years in its service. Mr. Perry Harrison has the longest record of continuous service, having entered the bank's employment in 1878 as messenger.
The connection of the present officers with the bank is, briefly stated, as follows :
F. A. Chamberlain :- President from 1892 to 1915. F. G. Winston :-- Vice President from 1911 to 1915. Perry Harrison :-- Vice President from 1898 to 1915. E. F. Mearkle :--- Vice President from 1895 to 1915. J. S. Pomeroy :- Vice President from 1913 to 1915. Fred Spafford :- Cashier from 1913 to 1915.
George Lawther :- Assistant Cashier from 1905 to 1915.
Stanley H. Bezoier :-- Assistant Cashier from 1907 to 1915.
Walter A. Meacham :- Assistant Cashier from 1911 to 1915.
MINNEAPOLIS TRUST COMPANY.
Among the financial institutions that meet a real and growing demand in the community and that are important factors in aiding to push forward the de- velopment and improvement of the city, the Minneap- olis Trust Company occupies a prominent position and commands attention by the strong hold it has upon the confidence and regard of the community and the conservative and careful business methods whereby it secures and maintains that hold.
This useful and progressive institution was founded in 1888 and had its offices in the Kasota Building, at the corner of Hennepin Avenue and Fourth Street, until 1894 and for a number of years thereafter on the corner opposite at 331 and 333 Hennepin.
It was organized by one hundred of the leading citizens of Minneapolis, its first official staff consisting of Samuel Hill, president ; Thomas Lowry, first vice president ; H. G. Morrison, second vice president ; Clarkson Lindley, secretary and treasurer, and these gentlemen, together with James J. Hill, H. F. Brown, A. F. Kelly, Daniel Bassett, Isaac Atwater, A. H. Linton, C. G. Goodrich and Charles A. Pillsbury constituted its first Board of Directors.
The capital stock of the company at the beginning of its operations was $500,000.00. It is now $1,000,- 000.00, and the present surplus (1913) is $100,000.00.
The officers at this time are :
President and trust officer, Elbridge C. Cooke; vice president and treasurer, Robert W. Webb; vice presidents, James S. Bell, C. T. Jaffray, William G. Northup; secretary, D. I. Case; assistant secre- tary and treasurer, Benjamin Webb; assistant trust officer, A. B. Whitney; assistant treasurer, H. O. Hunt.
Its Board of Directors is composed of the following : Howard S. Abbott, James S. Bell, E. L. Carpenter, Hovey C. Clarke, John Crosby, Wm. H. Dunwoody, Isaac Hazlett, James J. Hill, C. T. Jaffray, J. R. Kingman, Cavour S. Langdon, W. A. Lancaster, W. C. Leach, F. W. Little, W. L. Martin, Wm. G. North- up, A. F. Pillsbury, Geo. F. Piper, F. M. Prince, John Washburn, F. B. Wells, Elbridge C. Cooke, Ben- jamin Webb, Robert W. Webb.
The offices of the company are now at 109 Fifth Street South. A new building is in course of erec- tion between its present location and the New York Life Building. During the erection of that building the company will occupy temporary offices in the New York Life Building, as during the construction of its new safety deposit vaults the transaction of business in its present quarters will be rendered im- possible.
When completed the new safety deposit vaults of the company will be thoroughly up to date. Con- tracts have been let to the Diebold Safe and Lock Co., and the vault construction will be most modern in every respect as to shell, electric protection, steel lin- ing, doors, time locks, etc. The boxes will be of more generous size than those usually furnished and will be equipped with interchangeable locks such as are now being put in in the best institutions in the country.
The resources of this large and growing institution aggregate a total of over one million and a half dollars, including a guaranty fund with the State Treasurer of a quarter of a million dollars. This guaranty fund stands as a surety for the faithful performance of its duties in all its fiduciary relations and is accepted by the State of Minnesota in lieu of bonds.
The company does no banking business and its de- mand liabilities are practically nothing.
Its trust obligations arc represented by deposits in
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HISTORY OF MINNEAPOLIS AND HENNEPIN COUNTY, MINNESOTA
various banks in its name as trustee and by securities held by it in its name as trustee in caeh partieular trust.
The names of the men at the head of it furnish suffi- cient guaranty of its ability to carefully and honestly manage its business and to meet every requirement of conservative and legal investment of the funds in- trusted to it.
The nature of this company's business and the key- mote of its policy is conservation of accumulated wealth.
And to this end it acts as executor, administrator, guardian, and trustee and is thoroughly equipped to manage estates and to make investments, having well organized bond, farm loan, and city loan depart- ments.
Its real estate department is under efficient man- agement and is equipped to care for the real estate business of the company in its various trust capaci- ties and for all clients who desire to transact their business in connection with real estate with a re- liable, efficient, and financially responsible agent.
The history of the company has been one of growthi. Its first and most important department is for the execution of trusts. It has added various depart- ments, necessary to enable it to properly carry out its trust functions.
The policy of the company is well defined in this regard, and it believes that the publie desires and will sustain a trust company in this community that is not complicated in any way with commercial bank- ing or the risks ineident thereto.
MINNESOTA LOAN AND TRUST COMPANY.
This institution, founded on May 1, 1883, was the first trust company organized northwest of Chieago. Its founders composed the law firm of Koon, Mer- rill & Keith, with Eugene A. Merrill, the firm's senior member, as the originator and leading spirit of the project. The company was organized in 1883, as has been stated, with Mr. Merrill as president, George A. Pillsbury as vice president, and Edmund J. Phelps as secretary and treasurer, these gentlemen also being direetors. The other directors at the beginning were : Thomas A. Harrison, Theodore B. Casey, John M. Shaw, Samuel A. Harris, Mart B. Koon, Joseph H. Thompson, Anthony Kelly, Frederick W. Brooks, Robert B. Langdon, Mortimer L. Higgins, Valentine G. Hush, and Nelson F. Griswold. Mr. Phelps retired as secretary and treasurer in 1892 and was succeeded by F. M. Prince, now president of the First National Bank.
The company has had a profitable business from the start, and, as the rates of interest have been higher upon the same classes of seeurities in the West than in the East, it has succeeded in attracting a large amount of Eastern capital to the city of Minneapolis and the State of Minnesota. Its reputation as a care- ful and judicious investment corporation has stead- ily grown until the present time, and during the more than thirty years of its history it has done a larger business in investing Eastern capital, and Western
eapital also, than perhaps any other corporation in the Northwest.
In the meantime, the company's business of acting as trustec, for which it was primarily organized, has increased with the growth of estates in the city and State; and it is in this field that the public is more benefited by the careful management and financial strength of the corporation than in any other. That this fact is appreciated is evideneed by the great num- ber of trusts which have already been satisfactorily administered by it as well as by the steadily increas- ing number and size of those which are committed to its care and management.
The original eapital stock of the company was $200,000. This was increased in the second year of its history to $300,000, and in 1885 to $500,000, fully paid. In 1909 the company affiliated with the North -- western National Bank, and at that time its capital was increased to $1,000,000. In addition it now has a surplus of $250,000. Moreover, the two institutions have a combined capital and surplus of $6,890,299.75, and deposits aggregating $31,302,630.43.
Mr. Merrill continued as president of the company for twenty-seven years, and since his retirement from that office he has served as chairman of the board of directors. The active officers in 1913 were: E. W. Decker, president; W. A. Durst, A. M. Keith, vice presidents ; H. L. Moore, secretary and treasurer ; H. D. Thrall, assistant secretary ; I. W. Chambers, assist- ant treasurer; S. S. Cook, cashier, and J. R. Byers, assistant cashier.
In the course of its business, with the view of mak- ing itself as broadly and practically useful to the community as possible, this great institution has established a safe deposit department. This has proven to be so popular and highly appreciated that it now has a greater number of patrons than any other city. A money deposit department has also been established, which allows interest on savings and i:1- aetive accounts. The deposits in this department at this time aggregate $3.000.000.
The conservatism of its board of directors and the prudent and judicious management of its affairs which characterized the earlier years of the com- pany's activity have continued throughout its his- tory. and. with its enlarged capital and elientele, and its affiliation with the richest and most influential and imposing national bank in the Northwest, its present business and rate of growth are greater than at any previous period. All trust funds and investments are kept separate and apart from the assets of the company, and every precaution is taken for the pro- tection of every customer in every way and to the fullest possible extent. These facts, however, are so well known that there is scarcely any need of stating them here, and none at all of dwelling on them.
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