USA > Nebraska > Douglas County > Omaha > Omaha: the Gate city, and Douglas County, Nebraska, a record of settlement, organization, progress and achievement, Volume I > Part 27
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possibility of such an act, that they did, on organizing their two institutions, place in the banks gold and securities exceeding the amount of money issued by them
"The consequence has been that their bills have been and are regarded as a safe circulation both at home and abroad. But so large are the advantages which these banks secured and yielded to their stockholders that at the last session of the Legislature the Government was importuned for other similar charters for institutions like these all over the territory, by parties whose responsibility was doubted. The Legislature passed acts chartering eight of these banks, but the Government vetoed all the bills. The House passed two over his veto, the others were lost. The excitement, both in and out of the territory, was very great, in so much that Nebraska money fell into disrepute and both banks in Omaha thereupon began to draw in their circulation, and they have redeemed nearly all of it. Hereafter they will bank on some other circulation than their own."
The United States National Bank-the oldest bank in the State of Nebraska by succession-is the outgrowth of a land agancy opened on Harney Street in 1855 by the firm of Barrows, Millard & Company, composed of Willard Barrows, of Dubuque, Iowa, Ezra and Joseph H. Millard. The following year the firm began doing a banking business. In 1860 Smith S. Caldwell entered the firm as a partner and the name was changed to Millard, Caldwell & Company. Eight years later another change was made. Charles W. Hamilton, who had been with the firm as bookkeeper since 1861, was admitted to partnership in 1864, and when Ezra Millard withdrew on May 1, 1868, the name was changed to Caldwell, Hamilton & Company.
Under this name the bank continued until October 2, 1883, when it opened as the United States National Bank, with a capital stock of $100,000 and the fol- lowing officers: Charles W. Hamilton, president; Smith S. Caldwell, vice president; Milton T. Barlow, who became a member of the old firm in 1868, cashier. Mr. Barlow was president of the bank from January 1, 1897, to January 1, 1915. Victor B. Caldwell, a son of the first vice president, was cashier of this bank from 1896 to January 1, 1915. He was then elected president and served until his death on December 26, 1915, when Mr. Barlow again succeeded to the presidency. The other officers of the bank on April 1, 1916, were: Wil- liam E. Rhoades and George Haverstick, vice presidents; Robert E. Morsman, cashier ; Joseph C. McClure and Gwyer H. Yates, assistant cashiers ; Gurdon W. Wattles, chairman of the board. On a statement issued by the bank at the close of business on March 7, 1916, the capital stock is shown to be $1,000,000; sur- plus and undivided profits, $835,812.26; circulation, $450,000; deposits, $15,661,- 620.22. The building recently erected by the United States National, at the northwest corner of Sixteenth and Farnam streets, is one of the best appointed bank buildings in the West.
The First National Bank is the successor of the private banking house of Kountze Brothers, which started in business on December 10, 1857, August Kountze having before that time been the president of the Bank of Dakota. The firm at first consisted of Augustus and Herman Kountze, but a little later two other brothers-Luther and Charles-became partners and assumed the management of the branch bank in Denver in 1862. It afterwards developed into the Colorado National Bank. The first quarters occupied by Kountze Broth-
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ers was a small, one-story frame building on the north side of Farnam Street, between Twelfth and Thirteenth streets. In the rear end of the single room stood a large, old-fashioned safe, fastened by means of a heavy iron hasp and a padlock. Such a safe would be considered poor protection now, but it was looked upon as impregnable then.
On August 26, 1863, the reorganized firm of Kountze Brothers opened as the First National Bank of Omaha, with a capital stock of $50,000. Edward Creighton was the first president; Herman Kountze, vice president; Augustus Kountze, cashier; H. W. Yates, assistant cashier. This was the first bank in Nebraska to organize under the national banking laws, its charter number being 209. It occupied the old quarters of Kountze Brothers until the fall of 1866, when it removed to the first floor of the two-story brick building on the south- east corner of Farnam and Thirteenth streets. Twenty years later that building was torn down to make room for the five-story structure, on the main floor of which the bank fitted up new quarters, then considered the best in the city. In 1915 the bank purchased the lot at the southwest corner of Farnam and Sixteenth streets, formerly occupied by the old board of trade building, erected thereon a fourteen-story office building, with new quarters for the bank on the main floor.
In the meantime the capital stock of the bank has been increased to $500,000. At the beginning of the year 1916 the First National reported $1,179,920 in sur- plus and undivided profits, and deposits of $9,352,070. The principal officers of the bank at that time were as follows: F. H. Davis, president ; C. F. Kountze, vice president and chairman of the board; L. L. Kountze, vice president; T. L. Davis, cashier.
The Omaha National Bank was organized in 1866 by Ezra Millard, the senior member of the firm of Millard, Caldwell & Company and the first president of the new institution. Joseph N. Field was the first cashier. This bank opened its doors for the transaction of business on July 1, 1866, in a one-story frame building, which stood in the street near the intersection of Fourteenth and Douglas streets. It was about 20x40 feet, with a small room cut off at the rear end by a board partition, the rear room being used as parlor and bed room. The counter in the bank was of pine boards painted white in front, the top being cov- ered with black oil cloth, and extended from the window to within about two feet of the board partition above mentioned. Although this bank boasted a "fire proof safe, with a burglar proof chest in the bottom," it was not considered safe to leave a large amount of money in it over night. Consequently, every after- noon, about closing time, one of the bank's employees would carry the greater part of the cash on hand over to the vault of Millard, Caldwell & Company. Next morning it would be carried back. On these occasions the currency was usually wrapped in an old newspaper and the messenger passed through the streets with as little concern as though the package under his arm contained some trivial purchase instead of several thousand dollars.
On January 1, 1867, the Omaha National removed to the room at the corner of Thirteenth and Douglas streets, afterward occupied by the Omaha Savings Bank. Some years later the bank erected the building now known as the Bromley Block at No. 208 South Thirteenth Street, where it remained until it removed to its present quarters at the northeast corner of Seventeenth and Farnam streets,
@ UNITED # STATES @ NATIONAL @ BANK @ BUILDING.
UNITED STATES NATIONAL BANK BUILDING, OMAHA
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in the building erected in 1888 by the New York Life Insurance Company, which was purchased by the bank for $605,000 and remodeled for banking purposes. A statement made to the comptroller of the currency on March 7, 1916, by the officers of the Omaha National gives the capital stock as being $1,000,000; sur- plus and undivided profits, $1,024,443.32 ; circulation, $1,000,000, and deposits of $16,093,760.90. The officers of the bank at that time were: J. H. Millard, presi - dent ; W. H. Bucholz and Ward M. Burgess, vice presidents ; J. DeF. Richards, cashier; Frank Boyd, B. A. Wilcox, Ezra Millard and O. T. Alvison, assistant cashiers.
The Merchants National Bank dates its beginning from the fall of 1866, when the firm of J. A. Ware & Company opened a private banking house on the north- west corner of Thirteenth and Farnam streets. The firm was composed of J. A. Ware, of Nebraska City; John W. Hugus, of Omaha; and Posey S. Wilson, who had been associated with Mr. Ware for some two years as cashier. In November, 1867, he was succeeded in the business by W. D. Morton and the following year the bank was sold to Alvin Saunders and his associates, who reorganized it as the State Bank of Nebraska, with a paid up capital of $50,000; Alvin Saunders, president; J. R. Porter, vice president; Benjamin B. Wood, cashier. The capital was soon afterward increased to $100,000. In 1876 Mr. Saunders withdrew and Frank Murphy succeeded to the presidency.
In the fall of 1882 the bank was reorganized and opened its doors on the morning of October 2, 1882, as the Merchants National, with a capital stock of $100,000. The first officers under the new regime were: Frank Murphy, presi- dent; Samuel E. Rogers, vice president; Benjamin B. Wood, cashier; Luther Drake, assistant cashier. The prosperity of the bank was such that in August, 1885, the capital stock was doubled; in April, 1887, it was increased to $300,000 ; a month later to $400,000, and in May, 1888, to $500,000. In that year the build- ing at the northeast corner of Thirteenth and Farnam streets was erected by the bank, where it is still located. At the beginning of the year 1916 this bank reported a capital stock of $500,000; surplus and undivided profits of $890,670, and deposits of $5,968,550. Luther Drake was then president; F. T. Hamilton. vice president ; F. P. Hamilton, cashier.
The Nebraska National Bank was organized in the spring of 1882 by Henry W. Yates and A. E. Touzalin. Mr. Yates had been connected with the First National for nearly twenty years, first as assistant cashier and later as cashier. He was therefore experienced in all lines of the banking business. When the bank opened on April 27, 1882, Samuel R. Johnson was president ; A. E. Touza- lin, vice president, and Mr. Yates, cashier. The Nebraska National was at first located in a frame building, which had formerly been occupied as a clothing store, and which was moved into the street until the present bank building at the northwest corner of Twelfth and Farnam streets could be completed. The institution is still occupying these quarters. At the beginning of the year 1916 the capital stock was reported as $200,000; surplus and undivided profits, $III .- 090; deposits, $1,332,140. F. W. Clarke was then president; C. F. Coffee, vice president ; H. W. Yates, cashier.
The Corn Exchange National Bank is a comparatively recent institution. It was organized in 1909, with a capital stock of $300,000, and opened for business at the southwest corner of Fifteenth and Farnam streets, where it is still located.
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The officers of this bank at the beginning of the year 1916, according to the Bankers Directory, were as follows: W. T. Auld, president; H. S. Clarke, Jr., vice president; L. H. Tate, assistant cashier. The captital stock was reported the same as at the time of organization ; surplus and undivided profits, $104,200; deposits, $1,337,700.
The youngest bank in the City of Omaha is the State Bank of Omaha, which was organized in 1912 under the banking laws of the State of Nebraska. Its first place of business was on the northeast corner of Seventeenth and Harney streets, opposite the courthouse, but in the winter of 1915-16 it removed to the City National Bank Building, at the southeast corner of Sixteenth and Harney. The capital stock of this bank on January 1, 1916, was $300,000 ; surplus and undivided profits, $60,000; deposits, $3,000,000. A. L. Schantz was then president; J. R. Cain, Jr., vice president; F. N. High, cashier.
NEW BANKS
On April 1, 1916, two new banks in the City of Omaha were in process of organization, viz .: The Commercial State Bank, which will occupy the corner room of the Wead Building, on the southwest corner of Eighteenth and Farnam streets, and the Central State Bank, which is remodeling the building on the southeast corner of Sixteenth and Dodge streets for its home. John F. Hecox, formerly of Chicago, is in charge of the organization work of the former, and A. S. White (vice president) of the latter. Among the stockholders of these banks are some of the city's substantial business men and capitalists.
SOUTH OMAHA BANKS
With the establishment of the Union Stock Yards and the platting of South Omaha in 1883-84, a large volume of business was drawn in that direction in connection with the live stock trade and the increase in population in the thriv- ing suburb. The result of this activity has been the establishment of several banks in that district. The oldest of these is the South Omaha Savings Bank, which was organized in 1888, with a capital stock of $25,000 and has been in con- tinuous business since that time. On the first of January, 1916, the surplus and undivided profits was just four times greater than the original capital stock, and the bank carried deposits of $300,000. H. C. Bostwick was then the executive head of the bank; Truman Buck, vice president, and F. R. Getly, cashier.
The Packers National Bank, located at 4939 South Twenty-fourth Street, was organized in 1890. It has done a prosperous business ever since it was founded and in March, 1916, reported a capital stock of $200,000; surplus and undivided profits of $125,000, and deposits of over two millions of dollars. The officers of the bank at that time were: J. F. Coad, president ; W. J. Coad, vice president ; H. C. Nicholson, cashier.
The Live Stock National Bank began business in 1907. It has a large patronage among stockmen and at the beginning of the year, 1916, reported a capital stock of $200,000; surplus and undivided profits, $75,460; deposits, $3.011,430. The officers of the bank then were: L. M. Lord, president; W. A. C. Johnson and T. E. Gledhill, vice presidents; T. W. Thomas, cashier. The
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bank is located at the intersection of Twenty-fourth and N streets, within easy access of the Union Stock Yards
The Stock Yards National Bank was organized under its present name in 19II. It is located in the Exchange Building and succeeded to the business of the old Union Stock Yards National, which was organized a short time after the stock yards were opened. H. C. Bostwick was president of this bank at the begin- ning of the year 1916; J. C. French, vice president ; J. B. Owen, cashier. At that time the capital stock was $750,000; surplus and undivided profits, $723,000 ; deposits, $6,183,000.
In 1914 the Security State Bank was organized and opened its doors for busi- ness at number 4805 South Twenty-fourth Street, where it is still located. Although the youngest bank in South Omaha, it is doing a flourishing business and on January 1, 1916, reported a surplus and undivided profits fund of $10,000 and deposits of $420,000. The capital stock of this bank is $100,000, with W. A. Rathsack, president; E. V. Svoboda, cashier.
The aggregate bank deposits of Omaha are approximately sixty-five millions of dollars, or about three hundred dollars for every resident of the city. All the banks have the reputation of being conservatively managed and are recognized as reliable financial institutions both at home and abroad. The general business of the banks is regulated in a great measure by the recommendations of the Omaha Clearing House, of which J. C. French is president; Luther Drake, vice president ; William B. Hughes, manager.
RURAL BANKS
For the convenience of the farmers of Douglas County and the business inen in the towns outside of Omaha, banks have been established in practically every village of consequence in the county. The rural banks all operate under the state laws, several of them having been organized since the law guaranteeing deposits in state banks went into effect in 19II.
The Bennington State Bank was opened in 1911 and on January 1, 1916, it reported a capital stock of $15,000, all of which was paid in; a fund of surplus and undivided profits of $3,000, and deposits of $125,000. Peter Bunz was then president ; John Dornacker, vice president ; F. W. Suverkrubbe, cashier.
The Bank of Benson was organized in 1904 with a capital stock of $25,000. The officers of this bank on January 1, 1916, according to the Bankers Directory, were as follows: J. A. Howard, president; N. H. Tyson, vice president; J. T. Pickard, cashier. At that time the bank carried deposits of $375,000 and had a surplus and undivided profits fund of $5,000.
The State Bank of Elkhorn is the oldest rural bank in the county. It was organized in 1888 and has therefore been in business for more than a quarter of a century. Its capital stock is $20,000; surplus and undivided profits, $5,500; deposits, $155,000. On January 1, 1916, J. M. Brunner was president; B. B. Baldwin, cashier.
Florence has two banks-the Bank of Florence and the Farmers State Bank. The Bank of Florence was organized in 1904 with a capital stock of $10,000, which still constitutes the capital of the institution. On January 1, 1916. this bank reported the surplus and undivided profits fund to be $10,240, and the
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deposits, $162,210. J. B. Brisbin was then president; Thomas E. Price, vice president; H. T. Brisbin, cashier. The building occupied by the bank was erected during the Mormon occupation, the bricks having been brought up from St. Louis by steamboat.
The Farmers State Bank of Florence was organized in 1909. On January I, 1916, G. F. Kritenbrink was president ; C. F. Kritenbrink, vice president ; C. B. Pilant, cashier. At that time the capital stock was reported as $10,000; surplus and undivided profits, $5,000; deposits, $110,000.
The German Bank of Millard was established in 1892. A. B. Detweiler was president at the beginning of the year 1916; William Von Dohren, vice president ; W. T. Detweiler, cashier. This bank has a capital stock of $15,000; surplus and undivided profits of $6,500, and deposits amounting to $177,000.
The Ralston State Bank is one of the new financial concerns of the county. It was organized in 1913 and began business with a capital stock of $15,000. On January 1, 1916, it reported deposits of $25,000, with C. M. Skinner, president; L. S. Packard, cashier. At that time the fund of surplus and undivided profits amounted to $500.
Valley has two banks. The oldest of these, the Valley State Bank, was organized in 1899. At the beginning of the year 1916 its capital stock was $25,000; surplus and undivided profits, $12,000, and deposits, $175,000. C. I. Rogers was then president; F. Whitmore, vice president, and F. C. Kennedy, cashier.
The Farmers State Bank of Valley was established in 1915 with a cpaital stock of $20,000. Being a new institution, it reported no fund of surplus and undivided profits at the beginning of the year 1916, when its deposits amounted to $25,000. Andrew Wicklund is president; R. M. Erway, vice president ; E. M. Warner, cashier.
The Bank of Waterloo was organized in 1905 with a capital stock of $15,000, at which figure it has remained. On January 1, 1916, the returns furnished by this bank for publication in the Bankers Directory show a surplus and undivided profits fund of $3,500, and deposits of $100,000. J. G. Seefus was then president; George Johnson, vice president; E. L. Lindquest, cashier.
In the ten rural banks of the county the deposits amount to about one million and a half of dollars. Compared with the metropolitan banks, in the amount of money handled and the volume of business transacted, they are small concerns, but they serve their purpose and are proportionately as important to their patrons as the great banks of the larger cities. They provide a safe place for the deposit of money not wanted for immediate use, assist the farmer to move his crops during the market season, the merchant to make exchanges, and through their relations with the city banks are a factor in the collection of bills.
DEFUNCT BANKS
Since the establishment of the Western Exchange and the Bank of Nebraska, mentioned previously in this chapter, a number of banking institutions have been organized in Omaha and did business for a time, but are no longer in existence. Some of these institutions failed, causing a loss to their stockholders and depositors, while others voluntarily wound up their affairs and went out of
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business. A successful banker of Omaha recently remarked to the writer that a history of these banks reflects no credit upon the city. This may be true in a certain sense, but an account of their career forms part of the history of the city and county. Some of these banks failed through bad management, but others were forced to yield to circumstances they were unable to control and the men at the head of such banks are entitled to sympathy rather than censure.
Going back to the state banking era, from 1854 to 1862, there were several private banking firms engaged in business in Omaha during that period. Among these may be mentioned Samuel E. Rogers, who was a banker and real estate broker in 1857, with an office at the corner of Eleventh and Douglas streets. Mr. Rogers was afterward connected with the Merchants National and is still living in Omaha. Gridley & Company, a firm composed of F. Gridley and John H. Kellom, engaged in the banking business in June, 1857, and continued for about three years. John McCormick conducted a money lending business for about five years, beginning in 1857. His office was on Douglas Street, just east of Thirteenth. H. C. Rariden & Company, "bankers and land agents," had an office on Harney Street for awhile in 1857-58. Dr. Gilbert C. Monell and his son, John J. Monell, conducted a private bank for a few months in 1857, probably extending into the succeeding year. Artemus Sahler & Company, Smith & Par- malee, and the Nebraska Land and Banking Company, of which Fleming David- son was president and R. C. Shain was cashier, were all engaged in banking about the same time. It is worthy of note that all these concerns were wound up without loss to any one.
The Omaha & Chicago Bank received a charter on February 10, 1857, with H. B. Sackett, president ; J. V. Schell, cashier. It occupied the quarters formerly used by the Western Exchange Fire and Marine Insurance Company, at the southwest corner of Twelfth and Farnam streets. For some five or six years it did an apparently prosperous business, when, like the proverbial clap of thunder from a clear sky, it closed its doors. Its affairs were wound up by W. J. Ken- nedy. This is said to have been the last of the wildcat banks in Omaha.
In 1858 William Young Brown, "real estate agent and exchange broker," came to Omaha with a flourish of trumpets and announced that he was engaged in lending money for capitalists. Shortly afterward he brought the main office of the Bank of Tekamah to Omaha, where it failed after a short but spectacular career, entailing a greater loss on the general public than any other bank failure in Nebraska up to that time.
The Central National Bank was organized in April, 1868, with a capital stock of $100,000; John McCormick, president; James G. Chapman, vice president ; James M. Watson, cashier; Benjamin B. Wood, teller. In January, 1871, the business of this bank was merged with that of the Omaha National, without loss to either stockholders or depositors.
During the decade from 1880 to 1890 no less than twenty-two banks were established in Omaha, none of which is in existence today. The first of these was the Omaha Savings Bank, which began business on September 4, 1884, in the Millard Hotel Building, with James E. Boyd, president; William A. Paxton, vice president ; Charles F. Manderson, managing director; John E. Wilbur, cash- ier. A little later Mr. Boyd retired from the presidency and was succeeded by Mr. Manderson. The capital stock of this bank was $150,000. The general
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depression of 1893 caused a depreciation in some of the assets of this bank and forced its suspension in 1895.
In March, 1880, John L. McCague opened a real estate office on the corner of Fifteenth and Dodge streets. Subsequently William L. McCague and Alexan- der Charlton became partners, and on September 1, 1883, the firm announced that it would engage in a general banking business. In August, 1889, the busi- ness was divided into two banks-the American National and the McCague Sav- ings Bank. The former had a capital stock of $200,000. It was taken over by the Union National Bank a few years later, and the savings bank department wound up its affairs and went out of business.
The Commercial National Bank was organized on April 7, 1884, with a capital stock of $250,000. Ezra Millard, who had long been associated with the Omaha National, was the first president. The bank opened for business on May 1, 1884. Upon the death of Mr. Millard in August, 1886, a change was made in the board of directors and in July, 1888, the southwest corner of Sixteenth and Farnam streets was purchased as a site for a new bank building, which was completed and occupied by the bank on May 1, 1890. In July, 1905, the business of this institution was merged with that of the United States National Bank.
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