History of the city of Omaha, Nebraska, Part 63

Author: Savage, James Woodruff, 1826-1890; Bell, John T. (John Thomas), b. 1842, joint author; Butterfield, Consul Willshire, 1824-1899
Publication date: 1894
Publisher: New York, Chicago, Munsell & Company
Number of Pages: 1020

USA > Nebraska > Douglas County > Omaha > History of the city of Omaha, Nebraska > Part 63

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The Omaha & Chicago Bank was granted a charter February 10th, 1857. H. B. Sackett, now a resident of Council Bluffs, was president and J. V. Schell, cashier. Its place of business was in the Western Ex- change Fire & Marine Insurance Company Building, southwest corner of Twelfth and Farnam Streets. This bank was in existence between five and six years, W. J. Kennedy closing up its affairs in 1864.

In the history of Omaha already referred to, appears an advertisement of "William Young Brown, real-estate agent and ex- change broker. Money loaned for capital- ists." This party, in 1858, brought the head office of the bank of Tekamalı to Omaha. This was a chartered institution, and its fail- ure a little later is said to have entailed

more loss on the general public than any other of the early banks of Omaha.

In the first issue of the Omaha City Times, June 11, 1857, is found the following adver- tisement: "Gridley & Co., F. Gridley, J. II. Kellom-new banking house-The subscribers having, formed a copartnership for the purpose of conducting a general banking business at Omalia, would respect- fully give notice that while awaiting the erection of their banking office, they can be found at the office of O. D. Richardson, Esq., first office west of the Pioneer Block. We respectfully ask of the business men and citizens of Omaha and vicinity, generally, a due share of their deposits and business. Money Loaned. Drafts on New York, St. Louis, and all of the Eastern cities; gold and silver bought and sold on reasonable terms. Collections made and remitted for at current rates of exchange." This firm was in business for about three years.

John McCormick was in business in 1857 at the present site of the Arcade Hotel, on Douglas Street just east of Thirteenth Street, and continued to do a money-loaning busi- ness for four or five years. It is said that he had more money than any one else in Omaha at that time.

Samuel E. Rogers, now vice-president of the Merchant's National Bank, was a banker and real-estate broker, with an office at the corner of Douglas and Eleventh Streets, in 1857. H. C. Rariden & Co., were bankers and land-agents, with an office on Harney Street, in 1857 and 1858. The Nebraska Land & Banking Co., Fleming Davidson, president, R. C. Shain, cashier, were in busi- ness February 1, 1858. G. C. and J. J. Monell, under the firm name of Monell & Co., carried on a business as bankers and land agents in 1857. Their advertisement also appears in the Omaha Times of date August 12, 1858. Artemus Sahler & Co., bankers, dealers in Eastern exchange, land warrants and real estate agents, were in business in 1858. Smith & Parmalee were

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HISTORY OF THE CITY OF OMAHA.

also in the business of loaning money during the years above named.

Two firms who started prior to some of those named above, outlived the first period of Omaha's banking history-Barrows, Mil- lard & Co., and Kountze Bros. The former started a land agency on Ilarney Street, in 1855, the firm consisting of Willard Bar- rows, of Dubuque, Ezra Millard, of Sioux City, and J. H. Millard, of Omaha. From the locating of land warrants and handling of exchange the firm gradually drifted into regular banking. In 1860 Smith S. Cald- well joined the firm, and in 1862, J. HI. Mil- lard withdrew. There was no further change in this firm until after the close of the first period of this history.

Kountze Bros. started December 10, 1857, just after the panic of that year, Augustus Kountze having been previously the presi- dent of the Bank of Dakota. The firm origi- nally consisted of Augustus and Ilerman Kountze, but a few years later included also two other brothers, Luther and Charles. Their first banking house consisted of a small one-story building of but a single room on the north side of Farnam between Twelfth and Thirteenth Streets, larger quar- ters being afterwards secured in a building which stood near the corner now occupied by the Nebraska National Bank. W. H. S. Hughes, now manager of the Omaha Clearing llouse, entered the service of Kountze Bros., as book-keeper, December 26, 1859, and re- mained in the employ of that firm and its successor, the First National Bank, for more than a quarter of a century. In the rear of Kountze Bros', banking room stood a big safe, fastened by means of hasp and staple and a padlock. The purchase and sale of gold, mined in Colorado, was a considerable part of the business transacted by the bank in the early days, and the shelf extending along the east side and north end of the building was frequently covered with tin pans filled with the precious metal. Mr. Hughes and Luther Kountze slept in the

bank as a guard. Upon the occasion of the burning of Lawrence, Kas., during the war by the infamous guerilla, Quantrell, it was reported that he and his band contemplated a raid upon Omaha, and in order to secure additional protection for the bank, the win- dows were provided with heavy iron bars. The Kountze Bros. established a branch bank in Denver in 1862, under the management of Luther and Charles-now the Colorado National Bank, and five years later estab- lished the New York Banking House of Kountze Bros., of which Augustus Kountze was long the head, his brother Luther being associated with him in the management. Charles Kountze is president of the Denver bank. Ilerman Kountze has long had the management of the Omaha establishment.

At the commencement of the second period of this history, in 1863, there were but two banking houses in Omaha-Barrows, Millard & Co. and Kountze Brothers-both located at Twelfth and Farnam Streets. 'The former occupied a portion of the first floor of the two-story and basement brick building that stood at the southwest corner of Twelfth and Farnam, and was a landmark of the city until torn down, in 1886, to make room for the present United States National Bank building. Willard Barrows withdrew, and the firm name was changed to Millard, Caldwell & Co., in 1864, C. W. Hamilton, who had been with the firm as bookkeeper since 1861, being then admitted as a partner. May 1, 1868, Ezra Millard retired from the firm, and the name was changed to Caldwell, Ilamilton & Co., Mr. M. T. Barlow being admitted a partner. In 1883 another re-or- ganization was effected, and

THIE UNITED STATES NATIONAL BANK started with a paid up capital of $100,000 which, in 1886, was increased to $250,000. The following year the magnificent stone structure now occupied by the bank was erected on the site of the old building. It has a frontage of sixty-six feet on Farnam Street and a hundred and thirty-two on Twelfth, is

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five stories high, and is fitted up with all the modern improvements for bank and office buildings. The present officers of this bank are: Charles W. Hamilton, president; Milton T. Barlow, cashier; C. Will Hamilton, assist- ant cashier. The present capital stock of the United States National is $400,000. Mr. Caldwell died June 26, 1884.

THE FIRST NATIONAL BANK.

August 26, 1863, the First National Bank, of Omaha, opened for business, with a capi- tal of fifty thousand dollars, Edward Creigh- ton, president; Herman Kountze, vice presi- dent; Augustus Kountze, cashier; II. W. Yates, assistant cashier; and succeeded to the business of Kountze Brothers. This was the first bank to organize under the national banking law, in Nebraska, and among the earliest in the country, its charter number being 209. It occupied for its first banking house the one-story frame building at the northwest corner of Twelfth and Farnam, formerly occupied by Kountze Brothers.

FIRST OUTUND BANK Of OMAHA

BANK

EXCHANGE

IGOLD DUST

AND

BOUGHT & SOUD CORNERDOWN

DAUG HT

The building was about twenty-two by fifty feet, with a square front. On its windows were the legends: " Gold Dust and Govern- ment Vouchers Bought," " Exchange Bought and Sold." The bank occupied these hum- ble quarters until the fall of 1866, when it moved to the southeast corner of Thirteenth and Farnam, occupying what, at that time, seemed palatial quarters in a two-story brick building, which it continued to occupy until torn down in 1886 to make way for the

present five-story and basement brick and stone fire-proof structure, which ranks as one of the best and most convenient office build- ings in the West, and cost about $300,000. The banking room takes up the greater por- tion of the main floor, and is all that can be desired in the way of appointments and conveniences. The building is sixty-six by one hundred and thirty-two feet, with a banking room sixty-two feet wide, ninety feet long and twenty-one feet high. The present officers of the bank are: Herman Kountze, president; John A. Creighton, vice president; Frederick II. Davis, cashier; W. Il. Megquier and H. E. Gates, assistant cashiers. The capital stock has been in- creased to $500,000.

THIE OMANIA NATIONAL BANK.

In 1866, Mr. Ezra Millard, at that time senior member of Millard, Caldwell & Co., organized the Omaha National Bank, with a paid up capital of $50,000, Ezra Millard, president, and Joseph N. Field, cashier. Mr. Field came to Omaha and signed the first currency of the bank, but never actually filled the position of cashier, which was practically vacant until January of 1867, when it was filled by the appointment of J. Il. Millard. The Omaha National opened for business July 1, 1866, in a one story frame building about twenty by forty, located in the street at the northwest corner of Douglas and Fourteenth. The bank room was about twenty by thirty, separated by a board partition from the parlor in the rear, which was also used as a bedroom. The counter, which extended from the front window to within about two feet of the par- tition, was of pine boards painted white in the front, the top covered with black oil cloth. A large fire-proof safe, with a burg- lar proof chest in the bottom, was conspicu- ous against the white partition in rear of the banking room. The furniture was marked by its simplicity rather than its ele- gance. The safe was not considered trust- worthy enough to leave a very large amount

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HISTORY OF THE CITY OF OMAHA.

of money in it over night. It was enstom- the Omaha National cashed checks on the United States National (the successor of Millard, Caldwell & Co.) to the amount of $22,295.96, and the United States National took in checks on the Omaha National to the amount of $85,790.80. The capital stock of the Omaha National has been increased to 81,000,000. Joseph H. Millard is presi- dent; W. B. Millard, vice president; Wil- liam Wallace, cashier; Richard Carrier and Edward E. Balch, assistant cashiers. ary for one of the bank employees, before the day's business began, to secure a good sized bundle of currency from the more secure vault and burglar proof safe of Mil- lard, Caldwell & Co., and, having disguised it by wrapping it in an old newspaper, to walk unconcernedly through the streets from Twelfth and Farnam to Fourteenth and Douglas, as though carrying a bundle of old clothes. The package seldom contained less than $20,000; when business was over for The Central National Bank of Omaha was organized in April, 1868, with a capital of $100,000, John McCormick, president; James G. Chapman, vice president; James M. Watson, cashier; Ben B. Wood, teller. This bank went into voluntary liquidation in Jannary, 1871, its business being merged with that of the Omaha National, Mr. Wat- son, the cashier, taking a position with the Omaha National, which he held for a num- ber of years. the day, the ceremony of the morning was again gone through with, to get the funds of the bank to a place of safety for the night. This was kept up until January 1, 1867, when the bank occupied its elegant and commodious, and for those days, extrava- gant quarters, at the corner of Thirteenth and Douglas, now occupied by the Omaha Savings Bank. The working force of the bank during the first six months consisted of the president, the book-keeper (who was MERCHANTS NATIONAL BANK. also general all round office man) and the In the fall of 1866 J. A. Ware & Co. opened a banking office at the northwest corner of Thirteenth and Farnam. The firm consisted of J. A. Ware, a banker of Nebraska City; Posey S. Wilson, who had been Mr. Ware's cashier for two years, and John W. Hugus, of Omaha. The capital employed was between $40,000 and $50,000. The business was successful, and a deposit account of $100,000 to $200,000 secured. In November, 1867, Mr. Wilson went to Cheyenne, W. D. Morton, a brother of J. Sterling Morton, taking his place at Omaha. In July, 1868, Mr. Wilson sold his interest in the firm of J. A. Ware & Co. to Mr. Ware and Mr. IIugus, and they in turn sold out to Governor Alvin Saunders, Ben B. Wood and others. who started the State Bank of Nebraska, succeeding to the business of J. A. Ware & Co. teller, who was also messenger boy, janitor and general assistant. From an old book used as a blotter on the counter of the Omaha National Bank the first six months, an idea may be gained of the amount of the clearings of the Omaha banks in the fall of 1866. October 25th, the settlement of checks for that date showed the Omaha National had checks on the First National Bank amount- ing to $5,561.63, and the First National had checks on the Omaha National to the amount of $105.25, leaving a difference of $5,156.28 in favor of the Omaha National. On the same day, the Omaha National had checks on the firm of Millard, Caldwell & Co., to the amount $314.92. In contrast with this may be given the business of October 25, 1892, when the Omaha National had checks against the First National to the amount of $129,- 840.30, and the First National had checks The State Bank of Nebraska started with a paid up capital of $50,000: Alvin Saunders, president; J. R. Porter, vice president; Ben drawn on the Omaha National to the amount of $195,695.07, leaving a difference of $65,- 855.77 to be adjusted. On the same day . B. Wood, cashier. The capital was afterwards

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increased to $100,000. Mr. Saunders retired from the presidency in 1876 and was suc- ceeded by Frank Murphy. The State Bank of Nebraska was succeeded by the Merchants National Bank of Omaha, October 2, 1882, with a paid up capital of $100.000: Frank Murphy, president; Samuel E. Rogers, vice president ; Ben B. Wood, cashier; Luther Drake, assistant cashier. August 10, 1885, the capital was increased to $200,000; to $300,000 April 26, 1887; to 8400,000 May 5, 1887, and to $500,000 May 3, 1888. Its building, at the northeast corner of Farnam and Thirteenth, erected in 1888, at a cost of $180,000, is one of the landmarks of the city.

OMAHA SAVINGS BANK.

In 1882 there was organized in this city the first exclusively savings institution in Nebraska-the Omaha Savings Bank, which began business September 4th of that year in the Millard Hotel building, but moved into the quarters vacated by the Omaha National Bank, at the southwest corner of Douglas and Thirteenth, when that institution took possession of its fine structure on Thirteenth Street. The first officers of the savings bank were: James E. Boyd, president; William A. Paxton, vice president; Charles F. Man- derson, managing director; John E. Wilbur, cashier. The present officers are: Charles F. Manderson, president; L. M. Bennett, vice president; Francis W. Wessells, managing director; John E. Wilbur, cashier. The cap- ital stock is $150,000. From the date of its establishment this bank has had the confi- dence of the public to a marked degree, and its deposits have long since passed the mil- lion dollar mark.

NEBRASKA NATIONAL BANK.

In the spring of 1882, Henry W. Yates, who had been for nineteen years connected with the First National Bank, first as assistant cashier and afterwards as cashier, severed his connection with that institution, and with A. E. Touzalin organized the Nebraska Na- tional Bank, which opened for business

April 27, 1882, with a paid up capital of $250,000-the largest capital, at that time, of any bank in the State. Its present capital is $400,000. It occupied as temporary quar- ters a frame building, moved from the perma- nent site into the street for that purpose, formerly occupied by Brash's clothing store, and here the bank remained until its new building, costing sixty-five thousand dol- lars, was completed, July 1, 1883. The site, at the northwest corner of Twelfth and Far- nam, adjoins on the east that formerly occu- picd by Kountze Brothers, with whom Mr. Yates commenced his banking career in 1863. The first officers of the bank were: Samuel R. Johnson, president; A. E. Tonzalin, vice president; Henry W. Yates, cashier. Mr. Johnson retired from the presidency in No- vember, 1883, and was succeeded by Mr. Yates, June 7, 1887, Mr. Touzalin was made second vice president, Lewis S. Reed being promoted from a directorship to the active vice presidency of the bank. Mr. Touzalin died September 12, 1889. May 25, 1885, W. HI. S. Ilughes, who has probably seen more continuous bank service than any other per- son in Omaha, was appointed cashier, leaving the First National Bank, of which he had been bookkeeper since its organization, to go back to the locality where he commenced bank life over twenty-five years before. This was the first bank in Omaha to adopt the Corliss safe. At the beginning of the present year (1892) W. H. S. Hughes re- tired from the cashiership of the bank and was succeeded by Lewis Reed, R. C. Cush- ing becoming vice president.

THE COMMERCIAL NATIONAL BANK.

The Commercial National Bank of Omaha was organized by Mr. Ezra Millard, who had been associated with banking in Omaha from 1860; first as senior partner in the firm of Millard, Caldwell & Co., and later as organ- izer of the Omaha National Bank, in 1866, and its president from that time until Jan- uary, 1884.

The meeting for organization was held

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HISTORY OF THE CITY OF OMAHA.

April 7, 1884, in room 109 of the Millard Hotel. The capital stock was placed at $250,000. The first board of directors con- sisted of the following named gentlemen: Ezra Millard, Wm. G. Maul, Clark Wood- man, L. B. Williams, James W. Garneau, Samuel R. Johnson, A. P. Hopkins. The bank opened for business on May 1, 1884. At a special meeting of the board of direct- ors, held June 23, 1884, it was voted to in- crease the capital stock 850,000, making its paid up capital $300,000. This additional capital was paid in July 15, 1884. At the annual meeting in January, 1885, the board of directors was increased from seven to nine members. In August, 1886, Mr. Ezra Millard, the organizer and president of the bank, died at Saratoga, N. Y. This was a serious loss to Omaha, and was especially severe on the bank. Mr. Millard's long and honorable connection with banking in Omaha made him a power in the business commu- nity and a tower of strength to the bank. In July, 1888, the board of directors, who had, ever since the organization of the bank, been discussing a permanent location, pur- chased the northwest corner of Sixteenth and Farnam Streets for $92,000. The direc- tors next turned their attention to improv- ing their purchase, and the fall of 1888 was taken up with the discussion of plans of bank buildings. In December, 1888, a plan was agreed upon. In January, 1889, it was decided to increase the capital of the bank $100,000, and to have it called in by April 15, 1889.

The contracts for the new building were let in March, 1889, and the bank occupied its present beautiful and convenient quar- ters, May 1, 1890. The building is a land- mark in the city, and is distinctively a bank building. In August, 1890, Mr. Andrew Henry, who was connected with the bank since its organization, serving most of the time as a director, died at Columbus, Neb., the bank thus for a second time losing a valued counselor by death.

Its present board of directors is as fol- lows: E. M. Morsman, E. M. Andreesen, Charles Turner, Wm. L. May, Wm. G. Maul, Edwin S. Rowley, Charles E. Bates, Alfred Millard and A. P. Ilopkins. A. P. Ilopkins is president, Wm. G. Maul vice president, Alfred Millard cashier.

THIE AMERICAN NATIONAL BANK AND TIIE

M'CAGUE SAVINGS BANK.

The business of McCague Bros. was founded in March, 1880, at which time Jolin L. McCague opened a real estate office upon the southeast corner of Fifteenth and Doug- las streets. Six weeks later the office was removed to the second story of the Frenzer Block, opposite the postoffice, at which place the real estate business was continued for two or three years. In 1881, William L. McCague became identified with the busi- ness, as did also Alexander Charlton in 1882. September 1, 1883, the firm of Mc- Cague Bros. announced that from that date they would engage in banking. As soon as ground floor quarters could be secured in the Frenzer Block the business was removed, this removal taking place in the fall of 1883. During 1884 Mr. Thomas II. McCague be- came a member of the firm, the members then being John L. McCague, William L. McCague, Thomas HI. McCague and Alex- ander G. Charlton. From the date of the establishment of the bank to August, 1889, the business grew steadily until the Me- Cague Bros. bank became recognized as one of the solid banking institutions of the city. August, 1889, in order to accommodate the rapidly increasing needs, the banking busi- ness of McCague Bros. was divided into two institutions, viz: The American National Bank, with a paid up capital of $200,000.00, and The McCagne Savings Bank. The offi- cers of The American National Bank are: John L. McCague, president; A. R. Dufrene, vice president; llenry F. Wyman, cashier; E. C. Brownlee, assistant cashier, and the directory: John L. McCague, A. R. Dufrene, E. M. Morsman, R. S. HIall, W. S. Poppleton,

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Alexander G. Charlton and Thomas H. Mc_ Cague. The MeCagne Savings Bank has a capital of $200,000.00, of which $50,000.00 is paid up. The officers of this institution are: W. L. McCague, president; John L. McCague, vice president; Alexander G. CharIton, cashier; and the directory: John L. McCague, William L. McCague, Thomas II. McCagne, Alexander G. Charlton and .J. II. McCulloch. Since Angust, 1889, to the present time, the growth of the business has been very rapid. Both of the above insti- tutions occupy elegant and convenient quar- ters in the new building constructed for their use on the northwest corner of Fif- teenth and Dodge.

THE BANK OF OMAHA.

The organizers of the Bank of Omaha were A. Henry, of Columbus, Neb., and Thomas H. McCague, of this city, beginning business on Thirteenth Street near Jackson, under articles of copartnership dated Octo- ber 15, 1885. Mr. McCague remained with the bank only one year, and in September, 1888, Mr. IIenry sold the business to Frank Wassermann, Charles P. Needham and Peter Goos, of Omaha, who conducted a general banking business in the same building until June 5, 1889, when an assignment was made, sheriff William Coburn being appointed assignee to wind up the affairs of the bank.

UNION NATIONAL BANK.

The Union National Bank, of Omaha, began business July 1, 1886, with a paid up capital of $100,000. The following named gentlemen constituted the first board of directors: W. W. Marsh, J. W. Rodefer, Thomas Irwin, Wm. A. Smith, Wm. Flem- ing. The officers were: W. W. Marsh, pres- ident; J. W. Rodefer, cashier. The latter was succeeded November 25, 1889, by Charles E. Ford. This bank was first located in Masonic Block, on Sixteenth Street, and on November 25, 1889, moved to its present location at the southeast cor- ner of Dodge and Sixteenth Streets, occupy-

ing the quarters especially prepared for the Douglas County Bank, the business of which was absorbed by the Union National. The first six years of its existence this bank developed only a very moderate growth. On July 1, 1892, it increased its capital to $250,000. Mr. G. W. Wattles, of Carroll, Iowa, was at the same time elected vice president, in place of Mr. David Bennison, resigned. Mr. Wattles is active in the management of the bank. The changes last referred to seem to have been of substantial benefit to the bank, its business and deposits more than doubling between July 1 and December 1, 1892. Its present board of directors consists of: W. W. Marsh, David Bennison, Win. Fleming, W. A. Smith, Charles E. Ford. The officers are: W. W. Marsh, president; G. W. Wattles, vice pres- ident; Charles E. Ford, cashier; Charles Marsh, assistant cashier.

THE NATIONAL BANK OF COMMERCE.

The Bank of Commerce was the outgrowth of a private bank establishment, started by Frank B. Johnson and Robert L. Garlichs, in May, 1885, under the firm name of Gar- lichs & Johnson. Their place of business was on the west side of Sixteenth, between Cass and California Streets, capital fifty thousand dollars. September 1, 1886, they organized the Bank of Commerce-with George E. Barker, president; Robert L. Gar- lichs, vice president; and Frank B. Johnson, cashier-with a capital of $100,000, which was increased July 1, 1888, to $500,000. At this date the bank was removed to the Bar- ker building, corner of Farnam and Fifteenth Streets, and at the next election of officers Ellis L. Bierbower was elected vice presi- dent, to fill the vacancy caused by the retire- ment of Mr. Garlichs. April 14, 1890, the business was reorganized under the national banking act, as The National Bank of Com- merce, of Omaha; president, J. N. Cornish; vice president, George E. Barker; cashier, Ellis L. Bierbower; assistant cashier, W. S. Rector.

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History of the city of Omaha, Nebraska, Part 63

Author: Savage, James Woodruff, 1826-1890; Bell, John T. (John Thomas), b. 1842, joint author; Butterfield, Consul Willshire, 1824-1899 Publication date: 1894 Publisher: New York, Chicago, Munsell & Company Number of Pages: 1020

Author: Savage, James Woodruff, 1826-1890; Bell, John T. (John Thomas), b. 1842, joint author; Butterfield, Consul Willshire, 1824-1899
Publication date: 1894
Publisher: New York, Chicago, Munsell & Company
Number of Pages: 1020