USA > Nebraska > Douglas County > Omaha > History of Omaha from the pioneer days to the present time > Part 24
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HISTORY OF OMAHA.
senate-in 1854 and in 1858. He participated as a delegate in the first Iowa state republican convention, and also in the national convention in Chicago at which Abraham Lin- coln was nominated and for whom he voted. President Lincoln rewarded Mr. Saunders with the appointment of governor of the territory of Nebraska, in 1861. On the day - of his assassination, April 14, 1865, President Lincoln
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HON. ALVIN SAUNDERS.
signed Governor Saunders' commission for a second term. Mr. Saunders. as governor of the territory, was called on to raise troops for service against the rebellious south as well as to fight the Indians upon the frontier. The territory had neither money nor credit, but by his energy and executive ability Governor Saunders raised over 3,000 troops for the union army, and also defended the frontier from the Indi-
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HISTORY OF OMAHA.
ans. When Nebraska was admitted as a state in 1867, Gov- ernor Saunders retired for a time from public life, with the exception of being a delegate to the national convention which nominated Grant and Colfax in 1868. Meeting with financial disaster in his banking enterprises, in response to the urgent request of his many friends he became a can- didate for United States senator, to which high position he was elected in 1877, his term expiring in 1883. During his term as senator he was always a hard worker in the inter- ests of his constituency. He secured to Nebraska 600,000 acres of land by the rectification of the northern boundary line of the state, and it was due to his efforts that a labor school for Indians was established on the Pawnee reserva- tion. Mr. Saunders has always taken great interest in every enterprise for the welfare of Omaha. He was chair- man of the bridge committee of citizens who secured to Omaha the location of the Union Pacific bridge. He was the vice-president of the Omaha & Southwestern railway, and one of the original stockholders in the Omaha smelting works, as well as in various other enterprises which have had wonderful success, thus adding materially to the growth and development of the city. As president of the board of regents of the high school, Mr. Saunders was mainly instru- mental in securing the erection of the high school building. Since 1883 Mr. Saunders has devoted himself to various bus- iness enterprises in Omaha, and has to a considerable ex- tent recuperated from his financial losses of 1875. Although he could have taken advantage of the bankrupt law, he re- fused to do so, preferring the more honorable course of meet- ing his obligations in full as soon as time and circumstances would permit.
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HISTORY OF OMAHA.
CHAPTER XXVIII.
FINANCIAL INSTITUTIONS.
THE PIONEER BANKS-THE PANIC OF 1857-THE BANKS OF TO-DAY-MAGNIFICENT BANK BUILDINGS-OMAHA .AS A SOLID FINANCIAL CENTER.
The first general banking business done in Omaha was carried on by the Western Exchange Fire and Marine In- surance company, which opened an office in the spring of 1855 *. The Bank of Nebraska was organized June ?, 1856, and was located at the southeast corner of Farnam and Twelfth streets. Barrows, Millard & Co., who estab- lished a general land agency in 1856, also carried on the in- surance and banking business to a limited extent. Nearly every bank in the territory was wiped out of existence by the panic of 1857, the Western Exchange Fire and Marine Insurance company being the first to succumb to the pres- sure. The banks, which in those days were denominated "wild-cat," issued and circulated their own paper. Several private banks were started in Omaha during the period from 1857 to 1860, among which were those of Samuel E. Rogers, Smith & Parmalee, and Gridley & Co., but these were all short-lived. The Kountze Brothers, who began business in 1857, just after the panic, still survive, and are to-day among the most prominent bankers of the country. In 1858 William Young Brown opened a bank of issue at the cor- ner of Eleventh and Farnam, but went into liquidation in the course of a year or two. J. A. Ware & Co. did a bank- ing business at the corner of Thirteenth and Farnam for five or six years, beginning in 1865. Among the defunct banks of Omaha may be mentioned the Central National, which was organized in April, 1868. It wound up its affairs in January, 1871.
The banks of the Omaha of to-day are ranked among the most solid financial institutions of the country. Their steady growth and prosperity are indicative of the substantial progress of the city from year to year. It is a remarkable
*See page 152.
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HISTORY OF OMAHA.
fact that for over a quarter of a century Omaha has not had a bank failure. Nearly all the banks are conducted by men who have grown up with the city, who have made their money here, and who have earned the reputation of careful and honest financiers through long years of steady work and strict attention to business. Magnificent bank buildings have been erected during recent years, adding much to the material wealth and metropolitan appearance of the city.
There are seven national banks, seven private banks, four savings banks, and several loan and trust companies. The capital and surplus of the national banks are as follows:
Omaha National
Capital $1,000,000
Surplus $350,000 100,000
First National.
500,000
Merchants' National.
500,000
100,000
Nebraska National.
400,000
50,000
Commercial National
300,000
27,000
U. S. National
250,000
28,000
Union National
100,000
..
. .
$3,050,000
$655,000
In the list of thirty-two clearing house cities, Omaha ranks about sixteenth. The Omaha clearing house was established by the national banks in 1884, and the clear- ings have steadly increased from the beginning. For the year ending December 31, 1888, the Omaha clearings amounted to $175.166,464.
The capital of the private banks is as follows: Bank of Commerce, $500,000; McCague Brothers, $300,000; Douglas County bank, $100,000; Bank of Omaha, $100,000; Citizens' bank, $50,000; Mechanics' and Traders', $50,000; Omaha Banking company, $40.000: total, $1.140,000.
The following are the loan and trust companies doing business in Omaha: Lombard Investment Company, capi- ital $1,500,000; Anglo-American Mortgage and Trust Com- pany, $1,000,000; Omaha Loan and Trust Company. $500,- 000; Omaha Real Estate and Trust Company, $500,000: Showalter Mortgage Company, $300,000; American Loan and Trust Company, $300,00); Home Investment Company, $250,000; Union Trust Company, $180,000; Mead Invest- ment Company, $100,000; Provident Trust Company, $25,- 000: total capital, $4,655,000.
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HISTORY OF OMAHA.
The United States National bank claims the honor of being the oldest established banking house in Omaha, and its history is of an interesting character. This bank is the outgrowth of the firm of Barrows, Millard & Co., which was composed of Willard Barrows, Ezra Millard, J. H. Millard and S. S. Caldwell, who began business in 1856. In the spring of 1858 Barrows, Millard & Co. moved into the Western Exchange build- ing, southwest corner of Far- nam and Twelfth streets, formerly occupied by the UNITED STATES DEPOSITORY Western Exchange Fire and Marine Insurance company. UNITED STATES NATIONAL BANKET It is a singular fact that a banking business has been carried on uninterruptedly at this corner from the spring of 1855 up to the present time. THE OLD WESTERN EXCHANGE In 1865 Mr. C. W. Hamilton, who in 1862 had entered the service of Barrows, Millard & Co. as book-keeper, became a member of the firm, the name of which was
then changed to Millard, Caldwell & Co. In 1868 another change was made. Mr. Hamilton purchased the interest of Mr. Ezra Millard, and the firm-name then be- came Caldwell, Hamilton & Co. This old-established pri- vate banking firm, which was organized in 1856, was re- organized in 1883, as the United States National bank, with Mr. Hamilton as president. The capital was increased in 1886 to $250,000. In the spring of 1887 the historic two- story, old-fashioned brick structure known as the Western Exchange building, which had been erected by three or four gentlemen connected with the Nebraska and Iowa ferry company, was torn down, and during the summer a modern bank building was reared upon its site. The new building has a high basement, with a superstructure of five stories. It is constructed of Ohio blue stone, is fire-proof, and is equipped throughout with all modern conveniences. In architectural design it presents a beautiful and imposing appearance, and is one of the most notable buildings in Omaha. It has a frontage of 66 feet on Farnam street and 132 on Twelfth street. This building cost $130,000, and was erected by the heirs of the Caldwell estate as a memorial of
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HISTORY OF OMAHA.
the late Hon. S. S. Caldwell, who was for many years a member of the firm of Caldwell, Hamilton & Co. The design of the building is in accordance with the ideas of Mr. Caldwell, who had determined to erect for the
U.S.DEPOSITORY
U. S. NAT. BANK
NATIONAL
BANK
1
AMERICAN LOAN AND TRUST CO.
AMERICAN SAVINGS BANK. AMERICAN L&T CO
I. & I. HODGSON, JA., ARCHITECTS.
THE UNITED STATES NATIONAL BANK BUILDING.
bank such a structure as its permanent home. Mr. Hamil- ton, president of the bank, is a safe, conservative business man, and has the confidence of the entire business commun- ity, in which he has resided during the greater part of his life. Milton T. Barlow, cashier of the United States National, began his banking career in Omaha as a clerk for Barrows, Millard & Co. in 1863. During the years 1865-66 he had
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HISTORY OF OMAHA.
charge of the cash. When the firm was changed to Cald- well, Hamilton & Co., in 1868, Mr. Barlow was admitted to partnership upon the same terms as Mr. Hamilton had been taken in as a partner in the firm of Millard, Caldwell & Co. Upon the reorganization as a national bank Mr. Bar- low was elected cashier. During all the years that he has been connected with this bank he always made friends for the institution by his suave and gentlemanly conduct, and has helped materially in various other ways to increase its patronage. C. Will. Hamilton, who was elected assistant cashier in 1886, is a son of Mr. C. W. Hamilton. He was born and raised in Omaha. Since his graduation from Georgetown college he has been connected with the United States National, and is thoroughly conversant with all the details of the banking business.
The First National bank is the successor of the private banking house of Kountze Brothers. It was in 1834 that Augustus Kountze, then a young man, left the old home at Osnaburg, Stark county, Ohio, to seek his fortune in what was then called the far west. Locating at Muscatine, Iowa, he engaged in the real estate business. In the summer of 1855 he came to Omaha on a tour of inspection, and believ- ing that the place was destined to become a large and prosperous city, he made several investments in real estate. Early in the spring of 1856 he returned to Omaha and made it his home until 1872. He was joined here in the fall of 1836 by his brother, Herman Kountze, and the younger brothers, Luther, Charles B. and William followed from time to time, until the five brothers had located either in Nebraska or Colorado. William Kountze, who came to Nebraska in 1858, died the same year at Dakota City. The Kountze brothers having invested quite largely in real estate found it very unsalable after the financial panic of 1857, and, seeing a good opening for a bank in Omaha, as nearly all the banks in Nebraska had failed, they began the banking business in the fall of that year under the firm- name of Kountze Brothers, and continued as such until August 26, 1863, when they organized the First National with a capital stock of $50,000. This was the first bank organized in Nebraska under the national banking law. The first officers of the bank were Edward Creighton, presi- dent; Augustus Kountze, vice-president, and Herman
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HISTORY OF OMAHA.
Kountze, cashier. Later on Herman Kountze was made vice-president, and Augustus Kountze became cashier. Upon the death of Mr. Creighton, Herman Kountze was elected president, which position he has held ever since.
The Kountze brothers began their banking business in a small one-story frame building, which stood on the lot now occupied by Shiverick's furni- ture store, on Farnam street. It was in this frame shell that the the First National was born and had its home for a number FIRST DUTHIS BANK OMAHA BANK of years. On the windows were the signs: "Exchange Bought EXCHANGE ICOLO DUST AHD and Sold." "Gold Dust and Gov- BOUGHT ernment Vouchers Bought." In those days the dealing in gold dust and government vouchers was carried on quite extensively FIRST NATIONAL BANK, 1863. and formed a large part of the banking business. The growth of this bank is shown by the steady increase of the capital from $50,000 to $500,000, with authority to increase it to $2,000,000. This institution is also a United States depository. The following are the present officers and directors: President, Herman Kountze; vice-president, J. A. Creighton; directors, A. Kountze, A. J. Poppleton, W. A. Paxton, J. M. Woolworth, John A. McShane, F. H. Davis, cashier; W. H. Megquier and H. E. Gates, assistant cashiers.
Early in 1886, in response to the demand for increased facilities, owing to the great growth of business, the First National decided to tear down its building, at the southeast corner of Farnam and Thirteenth streets, and erect upon the site a magnificent structure of the most modern design. The old building, a substantial two-story brick, which had been occupied for quite a number of years, was accordingly vacated and torn down in the spring, and soon the work of rearing in its place one of the largest and handsomest bank buildings in this city was begun. The enterprise was pushed as rapidly as possible, and was completed in July, 1888. The building has a frontage of 66 feet on Farnam street and 132 feet on Thirteenth, and is six stories high.
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HISTORY OF OMAHA.
The architecture may be called modern Romanesque as adapted to public buildings, and presents a very metropoli- tan appearance. The basement and first story are of granite from Maine, while the upper stories are of St. Louis pressed brick. The arched granite entrance on Farnam street and the vestibule are upon a scale of magnificence that strikes the eye with admiration. The walls and ceiling of the vesti- bule are of Italian marble. A broad flight of marble stairs leads to the banking room. On the east are two passenger elevators, while on the west is a beautiful iron stairway lead- ing to each floor. The banking room is 62 feet wide, 90 feet long, and 21 feet high, well lighted and ventilated. The directors' rooms and bank parlors, located in the northwest corner, are models of neatness, while the private rooms for customers are in the northeast portion of the banking room. The floor of the lobby is of white Italian marble, the re- mainder of the floors being of hard wood, while the wains- coting and fixtures are of choice Mexican mahogany, the fixtures being made from special designs. The wainscot- ing is seven feet in height, richly panelled and carved, forming a strong dado for the wall surface. The walls and ceilings are handsomely decorated in strict harmony with the general surroundings. The desks form a hollow square. On entering the banking room the president's desk is on the right, while the cashier's comes next. The various departments are arranged around the square, with a view to the greatest convenience. There are three sep- arate and distinct vaults in the south end of the banking room. One of them, the book vault, is 8x8x16 feet and furnished entirely with iron shelving. Next to this is the money vault of the bank, being 8x8x8 feet and is built of the best quality of chrome steel and is entirely burglar-proof. Inside of this vault are nine separate burglar-proof safes, each furnished with the latest im- proved locks. The outside doors of this vault are made of the best chrome steel and consist, first, of a wicker or day door, next an inside burglar door and then a massive out- side door, all of which are furnished with the finest burglar and time locks. Above these vaults is a storage vault 8x8x24 feet. The outside of these vaults has an iron armour, while the money vault is one of the best equipped and safest in the country, as it is without doubt absolutely burglar- proof.
.FIRST. NATIONAL BANK
MENDELSSOHN, FISHER ' LAWRIE, ARCHITECTS.
THE FIRST NATIONAL BANK BUILDING.
291
HISTORY OF OMAHA.
In the basement is a commodious lunch-room for the exclusive use of the employes of the bank, together with toilet-room and storage capacity. Located in the basement are the safety deposit vaults, the main entrance to which is on Thirteenth street, for the use of the patrons. This vault is 8x8x16 feet, built of the same material as the money vault of the bank, and contains 600 boxes. The doors and locks leading to the vault, as well as the vault itself, are absolutely burglar and fire-proof.
The four upper stories of the building are admirably ar- ranged for offices. The corridors have marble floors, marble wainscoting and door casings of the same material. The offices are finished in oak. Toilet accommodations are pro- vided, finished in marble and supplied with the latest improved sanitary appliances.
The entire building is fire-proof, the floors being con- structed of iron beams and tile arches, while the partitions are of hard terra cotta blocks. The cost of the structure was about $300,000.
The Kountze brothers, who are so widely known as among the most successful financiers of the country, are the sons of Christian Kountze, who, when a young man, emigrated from Saxony to the United States. Two years after his arrival in this country he married Margaret Zerbe, a native of Pennsylvania, and located at Osnaburg, Ohio, where he engaged in mercantile pursuits and continued in business at the same place until his death, a period of about forty years. Christian and Margaret Kountze raised a fam- ily of ten children-five sons and five daughters. The sons all received an excellent business training in their father's store, and when they left home one by one they were well equipped for the battle of life. As has already been related they all came to this western country. In the fall of 1862, Luther Kountze went to Denver, and opened a bank under the name of Kountze Brothers-the senior members being Augustus and Herman. He was soon joined by Charles B. Kountze. In 1866 they organized the Colorado National Bank of Denver, and have ever since remained in the con- trol and management of that institution. In 1867, Luther Kountze went to New York, and the next year established- a banking house under the firm name of Kountze Brothers, with Augustus and Herman as the senior members. The
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HISTORY OF OMAHA.
business grew so rapidly that in 1872 it required the atten- tion of another member of the firm, and accordingly Augustus left Omaha and took up his permanent residence in New York, assuming, in connection with Luther, the management of the bank in that city, which is still contin. ued under the old firm name and includes the four brothers.
Augustus and Herman Kountze, having grown up to- gether, have from boyhood had many interests in common. In the early days they bought considerable property in the river towns of Nebraska, but none of the Missouri river ventures proved profitable except the Omaha investments. They also had large holdings of lands in Iowa and Minne- sota, and at a later period they invested heavily in Ne- braska lands. Still later they bought considerable real estate in other places, principally in Chicago and Denver, and also invested in Texas pine and grazing lands. Augustus and Herman Kountze have been identified with the business interests and progress of Omaha and Nebraska from the pioneer days until the present time, and have taken an active part in everything tending to the material welfare of the city and state. They were largely interested in the Omaha & Northwestern railroad, now a part of the Chicago, Minneapolis, St. Paul & Omaha, and have also been interested in railroads in other portions of the coun- try. Augustus Kountze was also treasurer, for a number of years, of the then territory of Nebraska, and was one of the incorporators of the Union Pacific railroad, as well as one of its directors, and later on held the appointment of a United States government director of this railroad, and at the time of its location he was largely instrumental in se- curing for it the right of way and terminal facilities in Omaha. During his residence in Omaha he was engaged in the banking interests of the firm, including those named, with the branches at Central City, Colorado, and Chey- enne, Wyoming. The Kountze Memorial Lutheran church, of Omaha, to which he was a most generous contributor, was named in honor of his father. After Augustus went to New York, Herman took the management of the affairs of the firm in Nebraska, Iowa and Minnesota. The new First National bank building is another monument of their enterprise, and to Herman Kountze largely belongs the credit for its erection. Mr. Herman Kountze is a large owner of
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OS DUNBARGOING
28
MENDELSSOHN, FISHER & LAWRIE, ARCHITECTS.
THE OMAHA NATIONAL BANK BUILDING.
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HISTORY OF OMAHA.
residence property, and he has greatly developed the resi- dence portions of the city. He is also interested in the South Omaha land company and the Union Stock Yards, corporations which have made Omaha one of the solid bus- iness cities of the country.
The organization of the Omaha National bank was effected July 2, 1866. Ezra Millard was the first president, and the original directors were Ezra Millard, R. A. Brown, Joseph N. Field, S. S. Caldwell, J. J. Brown, Thomas Martin, and A. J. Simpson. In January, 1866, Mr. J. H. Millard became associated with the bank, and took the position of cashier. He has been president of the institution for a number of years. The bank occupies a handsome six- story building in the heart of the business center of the city. It has recently been materially improved in several respects, and now ranks with the best bank buildings in the west. This bank has a capital of $1,000,000, with authority to increase it to $2,000,000. Under the careful superintendence of President J. H. Millard, and his faithful associates, its business has grown to wonderful propor- tions. For the year ending December 12, 1888, its average deposits amounted to $4,000,360. It is one of the most solid financial institutions in the country. Hon. A. U. Wyman, ex-treasurer of the United States, is vice-president, and Mr. W. Wallace is the cashier, a position which he has held during a long period.
Another of Omaha's successful and enterprising banks is the Merchants' National, the successor of the State Bank of Nebraska, which was started in 1870, with Hon. Alvin Saunders as president, J. R. Porter, vice-president. and B. B. Wood, cashier. In 1876 Mr. Saunders retired. being succeeded in the presidency by Hon. Frank Murphy. The reorganization as a national bank took place October 1, 1882, the name being changed to the Merchants' National. In the spring of 1888 the bank moved into its new and elegant home at the northeast corner of Farnam and Thir- teenth streets.
The new building is one of the handsomest structures in Omaha. It is seven stories high, is constructed of brown stone and pressed brick, and is absolutely fire-proof. No expense was spared to make it in all its appointments one of the most complete bank buildings in the West. The
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HISTORY OF OMAHA.
architecture is of the Gothic style, and is peculiarly striking as it is the only specimen in the business center. It relieves the
L
D.C DUNBAR CO OMAAN
THE MERCHANTS NATIONAL BANK BUILDING. .
monotony that prevails in the plain architecture upon busi- ness thoroughfares. The Merchants' National has a capital and surplus of $600,000. Its average deposits during 1888
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HISTORY OF OMAHA.
amounted to $1,426,348. The officers are Frank Murphy, president; S. E. Rogers, vice-president; B. B. Wood, cashier; Luther Drake, assistant cashier.
The Nebraska National bank was organized in April, 1882, in response to a general demand for increased banking facilities. The city at this time was taking a new start, and the prospects of a rapid and substantial growth were unusually bright. The two principal organizers of the bank, A. E. Touzalin and Henry W. Yates, both shrewd and far-seeing men, took advantage of the situation, and in conjunction with a number of leading business men and firms, incorporated the institution with a paid-up capital of $250,000. At that time this was the largest capital of any bank in Nebraska. Its capital has since been increased to $400,000. The officers and directors are: H. W. Yates, presi- dent: Lewis S. Reed, vice-president; A. E. Touzalin, second vice-president; W. V. Morse, of W. V. Morse & Co., John S. Collins, of G. H. & J. S. Collins, and W. H. S. Hughes, cashier. Immediately upon its organization the bank be- gan the erection of a four-story and basement iron building, at the northwest corner of Farnam and Twelfth streets, for its permanent home. This structure was completed in 1883, and it marks the beginning of the fine building era in Omaha. Its architecture is strikingly attractive. Its erec- tion was indisputable evidence of confidence and faith on the part of the projectors in the future of the city. It had a telling effect upon the other banks, and the result has been the construction of several other magnificent bank buildings. The Nebraska National is more familiarly called "The Iron Bank," a name which appropriately indicates its financial solidity. Its first published statement showed : Loans and discounts, $90,209 ; deposits, $236,108. Its last statement, December, 1888, was as follows : Loans and dis- counts, $1,023,682 ; deposits, $1,542,105 ; capital and surplus, $152.000.
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