USA > Missouri > Jackson County > Kansas City > Kansas City, Missouri : its history and its people 1808-1908 > Part 16
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The Progress club is a Jewish organization. The first meeting called in 1881 was for the purpose of promoting sociability and culture among the Jews. About 40 responded and became charter members. The following offi- cers were elected: B. A. Flineman, president; Sam'l Latz, vice president; Harry Benjamin. secretary and Harry Ezekiel, treasurer. The first meetings and gatherings were held on the third floor of the John Taylor Dry Goods company. Three years later the club moved to a hall on Twelfth and Main streets. Here they remained for seven or eight years until sufficient funds were raised to erect the present club house, which is on Washington near Tenth street. This club represents the cultured strata of Jewish society and has always aimed at the highest and best in social functions. The present member- ship is about 150 with the following men holding office: Al Rothenberg, pres- ident; Theodore Griff, vice president; E. Allbright, secretary; Dan Lyons, treasurer.
The City club was organized Washington's birthday, February 22, 1908. On that day about 50 business and professional men met at the Sexton hotel and the club was organized with this purpose: "To aid through its own efforts and co-operation with other agencies and with those in authority in getting the things efficiently done which tend to promote the public welfare of Kansas City." Alexander New was made president; C. W. Moore, vice president; and D. L. James, treasurer. The organization has nothing whatever. to do with politics and reform; the idea is merely to help the civic authorities
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in perfecting plans which have been passed upon by the council. Municipal affairs are the chief topies of discussion at these luncheons. The ordinance for the registration of dairies was one of the first matters to be pushed through. The club has had such people to address them as: Minnie Maddern Fiske, B. Fay Mills and John Spargo. The present officers of the club are: Presi- dent, Henry F. Hoit; vice president, Charles Sumner; secretary, Henry D. Faxon ; treasurer, Thornton Cooke.
The Midday club. generally speaking, is a noon day edition of the Com- mercial club, with a membership limited to 400 business or professional men in good standing. The club was organized in March 8, 1908 and has its rooms on the entire fourteenth floor of the Commerce building. The idea of the club is to have a place where these different men may meet to plan and dis- cuss business over the luncheon table. The man of to-day realizes that every minute counts and he feels that even during this one hour he must not leave his business. In this way the club rooms are the start and finish of many a business enterprise. The officers are: Hugh C. Ward, president; Charles W. Ar- mour, first vice president ; Ford Harvey, second vice president; H. L. Harmon, third vice president; W. R. Clarke, secretary ; and O. C. Snider, treasurer.
CHAPTER X.
BANKING AND
FINANCE.
In the years of Kansas City's early history the nearest banks were in Lexington, and to that point prospective borrowers and holders of large checks and drafts were compelled to go. In the winter season very little business requiring exchange was transacted. Occasionally such accommodations were obtained from the government at Fort Leavenworth. Branches of banks organized under the state laws were established early in the '50s in Liberty, Missouri, and Independence, Missouri, and the banking facilities for Kansas City business men were brought much nearer home. In a few years Kansas City without banks had become more important commercially than the neigh- boring towns that boasted of banking facilities. Since the year 1856, when the first bank was established, Kansas City has steadily increased in importance as a banking center. The banks of Kansas City are important factors in the financial development of the West.
The first banking house in Kansas City was that of Northrup & Chick, established in 1856. In the preceding year these wholesale merchants, who had acquired a high standing in financial circles and who held large deposits
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for the people of town and country, opened an office for buying and selling exchange, and this grew into the first bank in the city that has reason to be proud of its institutions of this elass. Northrup & Chick sold their bank to J. Q. Watkins & Co. in 1865.
A branch of the Mechanics' Bank of St. Louis was established in Kansas city in 1857. The business of this institution during the first few years of its existence was satisfactory. The troubles attending the Civil war redueed profits and eaused complications, but in spite of numerous difficulties the bank continued business until 1871, when its affairs were closed.
A branch of the Union Bank of St. Louis was organized in Kansas City in 1857. The business of this bank, like that of the branch of the Mechanics' Bank of St. Louis, was entirely satisfactory up to the time of the Civil war. In 1861 the Union Bank removed its Kansas City funds to St. Louis and elosed up the affairs of the branch establishment. Thomas Johnson, a well- known pioneer of western Missouri, took an important part in the affairs of this bank in the Civil war, at one time going to Leavenworth, Kansas, with the bank's cash and securities in order to insure their safety.
The Kansas City Savings association was organized in April, 1865, with a capital of $20,000. In 1873 Dr. James Buchanan Bell, who had been identified with the banking interests of Chillicothe, Missouri, became the president, and C. J. White cashier. W A. Powell afterward bought the in- terest of Dr. Bell and became president of the association. The capital was inereased at different times and the organization inereased in strength. Dr. W. S. Woods bought Powell's interest in 1881 and beeame president. The statutes regulating banks were changed by the legislature so that the stock- holders found it expedient to surrender their charter as a savings bank and organize as the Bank of Commerce. The capital then was $200,000. An organization was effected in 1881. The affairs of the old bank were absorbed by the new and the former officers were retained. In the summer of 1887 the bank was placed under government control and became known as the National Bank of Commerce.
J. Q. Watkins & Co. purchased the pioneer banking business of Northrup & Chick, the transaction being made in 1865. The firm continued business until December, 1877, when its interests were sold to the National Bank of Kansas City. W. H. Seeger, afterward the second vice president of the Union National Bank, was eonneeted with the Watkins bank.
The old First National bank was organized in 1865 and two years later Howard M. Holden bought a controlling interest in the institution and became the cashier This bank was prosperous and in 1872 its capital was increased to $500,000, its eapital up to this time having been only one quarter million dollars. In 1872, when the increase was made, Mr. Holden became the
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president; M. W. St. Clair was made cashier, and W. H. Winants was chosen assistant cashier. The First National temporarily suspended payment. Sep- tember 25, 1873, as a result of the financial panic of that year. A short time later it was reopened and became the chief promoter of the grain and cattle business. The bank was compelled to close its doors again January 29, 1878, and passed into the hands of a receiver appointed by the comptroller of the currency. The bank had become the correspondent of a large number of western banks at this time, and its suspension naturally brought about much embarrassment, but the unmarketed products found purchasers in the East, and the currency necessary to move the salable grain and cattle soon was at hand. James T. Howenstein was first appointed receiver for this bank and Walter J. Johnson succeeded him, closing up the bank's affairs in 1881. The depositors were paid in full.
The Mastin bank was organized in February, 1866. This state organi- zation, with deposits aggregating $1,300.000. closed its doors August 3, 1878. It was a private banking house originally under the name of John J. Mastin & Co. It was organized in 1871 under the state laws, with Seth Ward as president.
The German Savings association was organized in February, 1868, with a capital of $100,000, twenty per cent of which was paid in. Anthony Sauer was president of this association and Henry J. Huhn was cashier. The Union German Savings bank also was organized in 1868, with a capital of $100,000. Peter W. Ditsch was president and John S. Harris cashier. These two banks were consolidated in 1871, with Henry Tobener as president and under the name of the Union German Savings bank continued business until 1873, when final failure came.
The Kansas City National bank opened for business November 27, 1871, and continued until November 13, 1875, when it went into voluntary liquida- tion. This institution had no connection with the National bank of Kansas City. John B. Wornall was the first president of the Kansas City National bank and D. L. Shouse was the first cashier. In the cessation of business its affairs were transferred to the Bank of Kansas City, in 1875, which in 1878 became the National Bank of Kansas City. The Commercial National bank began business June 3, 1872. Operations were continued until February 11, 1878, when the affairs of the bank were placed in the hands of a receiver.
The Bank of Kansas City was organized in 1875 with J. S. Chick as president. It became a national bank in 1878 under the name of the National Bank of Kansas City. From 1884 to 1887 it was the largest bank in the city, and when the panic of 1893 came its deposits were about four million dollars. These deposits were rapidly witdrawn, causing the bank to close its doors in July of that year. The following October the bank was re-opened with J. S.
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Chick as president and J. Q. Watkins, Jr., as cashier. Business was continued until March, 1896, when the doors were finally closed and the affairs of the bank placed under the direction of John Perry, government receiver. All of the depositors were paid in full, 6 and 55-100 per cent interest being paid on the face of all claims.
The Armour Brother Banking company was organized in 1878. A. W. Armour was president; S. B. Armour, vice president; and C. H. Prescott cashier. The business of the Armour Brothers Banking company was bought January 1, 1889, by the Midland National bank and the two banks were united under the name of the Midland National bank. Its officers were Witten McDonald, president; A. W. Armour, vice president; W. H Winants, cashier. The business of this bank was absorbed by the National Bank of Commerce in July, 1897.
The Citizens' National bank was organized in 1882, with J. A. Cooper as president and J. J. Squier, vice president. The latter afterward became pres- ident and manager of the bank. A. A. Whipple and S. J. Fitzhugh also were connected with the bank. In 1898 its business was sold to the Union National bank.
H. P. Churchill and others, in 1883, organized the Kansas City Safe Deposit and Savings bank. It failed in 1893, with liabilities amounting to about $2,000,000 having at that time about seven thousand depositors. In September, 1893, Howard M. Holden was appointed assignee for the bank.
The Traders' bank was established in 1883, James T. Thornton and others being associated in its organization The particular accommodation of cattle dealers and the handling of paper based on business of this character were the main purposes of the organizers. This bank was purchased by the Union National bank in 1887.
The leading banks of Kansas City had immense interests at the stock- yards from the time of the establishment of the great packing industries here. Before the organization of a bank at the stockyards this class of busi- ness was transacted by clerks especially appointed for that purpose. This system was not satisfactory, however, and, in order to supply a real need, the Kansas City Stockyards bank was organized in 1884, with a capital of $200,- 000. C. F. Morse, president of the Kansas City Stockyards company, was president of the bank, and M. W. St. Clair was cashier. In 1890 it was found that the capital was insufficient, and the bank was reorganized under the name of the Inter-State National bank.
The New England Safe Deposit and Trust company was organized and began business January 1, 1889, with a paid up capital of $100,000. A. W. Armour was president. J. F. Downing as vice president and A. W. Childs as treasurer were in active management of the business. The banking trust
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and safe deposit business of this concern has been very profitable, but a decision of the Supreme Court of Missouri to the effect that the charters of Missouri trust companies required them to pay interest on deposits caused the directory to separate the trust and safe deposit departments from the banking department This resulted in the organization of the New England National bank in 1896, with a capital of $200,000.
The bank of H. S. Mills was organized in 1889 with a capital of $100,000, January 1, 1889. After establishing a successful business, it was succeeded by the Western Exchange bank, organized under the laws of Missouri. The Aetna National bank was organized in March, 1890, and went into voluntary liquidation in March, 1893. The depositors were paid in full. The officers of this bank were: A. W. Allen, president; R. E. Talpey, vice president; R. J. Hawkins, cashier. The Metropolitan National bank was established in November, 1890, and at that time the German American National bank and the Mercantile bank were absorbed by it. In November, 1891, the Merchants' National bank also was absorbed by the Metropolitan National bank. R. W. Hocker and W. E. Hall retired from the management of the bank in January, 1895, being succeeded by J. K. Burnham as president and C. S. Morey as vice president and J. G. Strean as cashier. In May, 1897, the business of the Metropolitan National bank became a part of the National Bank of Com- merce, the depositors being paid in full.
The private banking house of Lombard Brothers was established in April, 1885, with a paid-in capital of $100,000. The partners in this bank were B. Lombard, Jr., of Boston, Mass., and James L. Lombard, of Kansas City, the latter having the active management of the bank's affairs. The deposits were about $600,000, and the business was profitably conducted until 1886, when the First National bank was organized. To the latter institution the interests of Lombard Brothers were transferred, James L. Lombard be- coming the president of the First National bank.
The Missouri Valley bank was established in 1878 and conducted a successful business for several years, but finally failed. It was the outgrowth of the Farmers and Drovers' bank, situated in the West bottoms of Kansas City, and which moved up town and became the Missouri Valley bank. The- odore Kraus was the first president and Robert J. Alther was the first cashier.
The Missouri National bank was organized in 1891, with a capital of $250,000. D. V. Reiger, who was chiefly instrumental in establishing it, was the first president, and R. D. Covington was the cashier. The bank was affected by the financial panic of 1893, and the doors were closed for a short time. Business was resumed and carried on until 1896, when the bank suspended and the affairs passed into the hands of a receiver. The German Savings bank was organized in 1891 by Dr. Joseph Feld. In 1893 its business
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HISTORY OF KANSAS CITY
was liquidated through the Mechanics' bank. The life of the Continental National bank was short. It was established in 1892, opening its doors August 2 of that year, and went into voluntary liquidation November 11 of the same year.
The Mechanics' bank was the outgrowth of the Mechanics' Savings bank which was organized in 1890 by Robert M. Snyder with a capital of $50,000. In 1893 it was organized as a state bank with a capital of $50,000. Robert M. Snyder was chosen president, and George P. Snyder, cashier; A. L. Mc- Bride, assistant cashier. This bank closed business January 31, 1900.
The German American National bank was organized in 1888, and was situated at Seventh and Delaware streets in a building that has been occupied by various financial institutions. J. K. Burnham was the president of this bank. W. F. Wyman, who was the vice-president at the time of organization, was succeeded in this position by J. W. Swain. Louis Bauerlein, the first cashier, was succeeded by J. G. Strean. The bank ceased business November 13, 1890, when its accounts, with those of the Mercantile bank, were turned over to the Metropolitan National bank.
The Mercantile bank was in business for several years until 1893, when its depositors were paid in full and the affairs sold to the Metropolitan National bank. Charles Russell was the first president, and after serving in this capacity for one year, served as vice president for about six months, at the end of that time retiring from active connection with the bank. E. L. Martin was elected president to succeed Mr. Russell. This bank purchased the Ger- man Savings bank from Dr. Joseph Feld. Its capital was $200,000.
The Merchants' National Bank of Kansas City was organized November 28, 1879, with a capital of $250,000. The incorporators and first board of directors were: Victor B. Buck, T. K. IIanna, Alvah Mansur, W. A. M. Vaughan, John C. Gage, John Long, F. L. Underwood and J. M. Coburn. The first officers were: F. L. Underwood, president; W. A. M. Vaughan, vice president, and J. M. Coburn, cashier. The capital was increased to $500,- 000 June 16, 1881. The only change in the organization at that time was the election of C. S. Wheeler to succeed Alvah Mansur. The bank was situ- ated at the corner of Missouri avenue and Delaware street until September, 1889, when it moved to the New York Life building. The capital was in- creased to one million dollars October 22, 1889, and the following officers were elected: W. B. Clarke, president : C. S. Wheeler, vice president; O. P. Dickinson, second vice president; J. W. Barney, cashier, and C. H. Rockwell, assistant cashier. The bank transacted a sucessful business until November, 1891, when the directors determined to retire from business. This con- clusion was reached after the collapse of the real estate boom had caused losses that might have been increased by continuance in business. The stock-
FIRST NATIONAL BANK BUILDING.
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. HISTORY OF KANSAS CITY
holders agreed with the directors, and the bank retired from business No- vember 7, 1891. All depositors were immediately paid, the board of directors retaining custody of the capital and surplus invested in loans and securities for collection and distribution to the stockholders.
The Bank of Grand avenue was established August 25. 1884, with a capital of $50,000 and a surplus of $50,000. L. A. Lambert was its first president, and Henry C. Lambert was cashier. In January, 1899, L. A. Lambert was succeded by Henry C. Lambert as president. J. W. Lambert became cashier. The Bank of Grand avenue was succeeded by the present organization, the German-American bank, in 1901. This bank's officers are J. W. Wagner, president; H. C. Lambert, cashier, and G. Kesting, assistant cashier, and the deposits amount to $1,000,000.
The American National bank was organized in 1886, with a capital of $250,000. It was reorganized in 1898, with a capital of $250,000. W. B. Grimes was its first president and H. P. Stimson its first cashier. This bank was closed for about seventy days in 1891, but was reorganized and again opened for business, the depositors being paid six per cent interest on their deposits for the time their funds were held. The stock of the American National bank was bought in June, 1902, by a group of Kansas City men, headed by William Huttig. Some of the men associated with Mr. Huttig were Colonel Willis Wood, William Kenefick and John Worthington. By permission of the Treasury department, the name of the concern was changed to the National Bank of the Republic. When the new institution opened for business in June, 1907, it had a paid up capital of one-half million dollars, with a cash surplus of $50,000. These were the officers: William Huttig, president; J. H. Berkshire, vice president; John Worthington, vice president, and John C. Hughes, cashier.
By special permission of the comptroller of the currency, a bank organ- ized in Kansas City in 1886 was given the name of the First National bank. Another institution of this name had been in existence, but had gone into the hands of a receiver and its affairs had been closed up. The second First National bank was a new and entirely separate establishment. James L. Lombard was president, the bank practically growing out of the banking house of Lombard Brothers. C. H. V. Lewis was the first cashier. E. F. Swinney became cashier in 1887.
In the summer of 1887 the Bank of Commerce, a prosperous financial institution which grew out of the Kansas City Savings association, was or- ganized under the national banking laws and the name became the National Bank of Commerce. In May, 1897, it absorbed the Metropolitan National bank. The Midland National bank, which in January, 1889, bought the business of the Armour Brother Banking company, was consolidated with the
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HISTORY OF KANSAS CITY
National Bank of Commerce in July, 1897. The officials of the latter named bank owned the capital stock of the Stock Yards Bank of Commerce and the Union Avenue Bank of Commerce, both of which were organized under the state laws. The business of the National Bank of Commerce increased until it became the largest bank west of Chicago, with one exception in St. Louis. It had a remarkably large clientage among the country banks tributary to Kansas City.
Overwhelmed by a wave of distrust that steadily wore away its resources, the National Bank of Commerce suspended business December 5, 1907. In about six weeks the bank had paid off nineteen million dolars of its deposits, reduced its loans three and one-half millions, cut down its cash resources eleven and three-quarter millions and sold two millions of high grade bonds, all in the effort to meet the demands upon it. . But there had been a continual drain, culminating in a clearing house debit balance of $400,000 that the bank was forced to meet.
George T. Cutts was appointed receiver December 17, 1907, and the work of reorganization began at once. After it became apparent that the bank would reopen, W. B. Ridgely, comptroller of the currency, was asked to become president of the reorganized institution. He resigned as comptroller of the currency to accept the offer. The capital stock was increased and the bank was reopened March 21, 1908, without loss to the depositors.
The Union National bank that succeeded the Traders' bank, was or- ganized in 1887 by David T. Beals, George R. Barse, C. W. Whitehead, F. L. LaForce, H. J. Rosencrans and others. It has grown to be one of the solid financial institutions of the West. In 1898 the business of the Citizens' National bank was sold to the Union National bank.
The Kansas City State bank was organized October 23, 1888, with a capital of $20,000. It grew to be one of the most important banks of its kind.
The Missouri Savings bank was organized in 1891, with a capital of $50,000. Watt Webb became president of this bank and W. S. Webb cashier. It had a surplus of $25,000, which, with its capital, was invested in United States bonds. The bank is prosperous and its affairs well managed by the following officers and directors: Watt Webb, president; W. S. Webb, cashier ; Eugene Carlat, Stuart Carkener, Oliver Carlat and W. L. Kessinger.
The Western Exchange bank, organized January 1, 1899, under the state laws, succeeded the bank of H. S. Mills, which was organized in 1889. Its successor organized with J. S. Lillis as president, and H. Koehler as cashier. This bank was capitalized at $100,000, and had a surplus of $10,000 and deposits aggregating $550,000. The present deposits of the bank are one' and one-half million dollars.
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The City National bank was opened February 2, 1900, with a paid-up capital of $250,000 and a surplus of $25,000. This bank began business under most auspicious circumstances. R. M. Snyder is president, J. G. Strean is vice president, and George P. Snyder is cashier. The bank owns its own building, the handsome structure at 545 Delaware street, formerly occupied by the National Bank of Commerce, and one suited to the purposes. Eleven days after the bank opened for business the deposits were over $400,000. The directors are John Long, J. Crawford James, Milton Moore and P. I. Bonebreak. The latter is the president of the Central National bank of Topéka, Kansas.
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