USA > New Jersey > Passaic County > Paterson > History of Paterson and its environs (the silk city); historical- genealogical - biographical > Part 45
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39 | Part 40 | Part 41 | Part 42 | Part 43 | Part 44 | Part 45 | Part 46
Samuel Smith came to this country from Ireland in 1827, when he was twelve years of age. He was associated for a number of years in Paterson with the builders of machinery, frequently having an interest in the profits, but he did not begin business exclusively for himself until 1878, when he began the manufacture of steam boilers on Railroad avenue, near Greene street. The business prospered and increased until it became one of the im- portant manufacturing establishments of the city. At his death, March 28, 1888, he was succeeded by his son, Charles R. Smith.
Joseph C. Todd was one of the pioneer machinists of early Paterson. He was born in Somerset county, New Jersey, March 2, 1817, and came to Paterson in 1836. He was employed in several of the machine shops of the day and for some years carried on successfully the manufacture of steam engines and various other kinds of machinery. He died April 16, 1905.
CHAPTER VI.
The manipulation of the fibre of flax-The Barbour Brothers' flax spin- ning company an offshoot of their large establishment in Ireland. The high tariff induced them to manufacture in this country-The growth of Paterson's largest single industrial plant-The manipula- tion of the fibre of jute.
The name of Barbour has been associated with the spinning of flax for many long years. The first of that name to engage in the manufacture of
358
PATERSON AND ITS ENVIRONS
textiles was a native of Paisley, Scotland, who for some years devoted him- self there to his industry. A number of reasons induced him to remove to Ireland and that his judgment in effecting the removal was good was soon evidenced by the large and increasing mills in Lisburn. It is here that the Barbours for several generations have manufactured thread. There was a world-wide demand for the product of their mills and it was but natural that the United States should afford them an excellent opportunity as a market. The high tariff imposed during the civil war materially increased the prices of their goods and this to such an extent that they concluded it would serve their purpose better to manufacture in this country. Two of the four brothers accordingly came to these shores to look the field over. They decided on Paterson as the seat of their future energies and in 1864 purchased a mill which had been used for some years by John Colt in the manufacture of cot- ton. Machinery was built and some of it imported from Ireland, and the new establishment soon had a pay-roll numbering several hundred hands. Every available inch of space was occupied, but the supply of output re- mained low compared to the demand. So in 1877 the block bounded by Grand, Prince, Spring and Slater streets was bought and a mill erected ; this was doubled in the following year and then additions were made from time to time until the whole block was covered with one large brick building em- ploying several thousand hands. The water supply of the city at that time was in a very uncertain state, the water company having only a limited sup- ply of water and that for a limited number of years. So the Barbours bought a small pond on the top of the mountain some miles distant, enlarged the pond and then led its waters to a reservoir nearer the city, from where it was carried to the mill. Now they were certain of a reliable water supply and the interest on the expense incurred was less than they would have been com- pelled to pay to the water company for a supply from that source. As an investment, and for the use of other manufacturers, they erected the Granite mill and for some years this was occupied by makers of silk; but the time came when the Barbours needed the floor space, and silk was compelled to yield to flax. More recently the works have been increased by the purchase of a part of the dismantled Rogers locomotive works.
The usual chapter in the history of new enterprises, one telling of early struggles and later painful endeavors, cannot be written into the history of the Barbour Brothers Flax Spinning Company. The Barbours had the brains and the energy, the market was ready for them and so all that re- mained was manufacturing and exploitation. The two brothers who estab- lished the industry in this country were Thomas and Robert; both were born at Hildon, near Lisburn, Ireland, the former July 14, 1832, the latter Sep- tember 24, 1824. Thomas attended to the business end of the proposition and soon became a commanding figure in commerce in the metropolis. Rob- ert spent most of his time in Paterson, looking after the manufacturing. Robert died on March 24, 1892, and ten years later, on March 25, Thomas followed his brother to the grave.
C
Lnge In H. B. Hanic Sure, Nowfirk
Romas Darbo
THE ITW YORK PURWO LIZZANY
F
..
GRAND ST.
GRAND & PRINCE STS.
OF THE BARBOUR
FLAX
SPINNING C
SPRUCE ST.
1
.
วันด้วยร้าน
359
INDUSTRIES
Thomas had one son, William, who distinguished himself more than any of his forebears had done. He effected a combination of the Barbour inter- ests, abroad and on this side of the Atlantic, under the name of the Linen Thread Company, a corporation which soon afterwards obtained control as the selling agents of numerous other textile manufacturing concerns in the United States He was one of the promoters and largest owners of the United Shoe Machinery Company, and many other thriving concerns owe their inception and prosperity to him. He died in New York City, March I, 1917; his son, Robert, has charge of manufacturing in Paterson ; two sons, William Warren and Frederick K., are at the office in New York, the former as president and the latter as assistant treasurer of the Linen Thread Com- pany. The oldest son, Thomas, is a professor in Harvard, attached to the Peabody Museum.
Robert Barbour was succeeded by his son J. Edwards, who for some years was president of the Barbour Company and had charge of manufac- turing in Paterson until the advent of the son of William. His father had erected a flax mill at Allentown, Pennsylvania, and operated it independent of the Paterson enterprise. In 1909 J. Edwards Barbour concluded to em- bark into business for himself and so he sold out his Paterson manufactur- ing interests to the other Barbours and looked after the work in the Allen- town mill, subsequently erecting a flax works in Paterson, near Lake View.
The origin of the Dolphin mills in Paterson was due to an idea conceived by a Scotchman in his native home that it would be a paying enterprise to manufacture hemp on a large scale in this country. He convinced several of his acquaintances of the feasibility of his enterprise and, with the assist- ance of capital partly contributed by men interested in the shipping busi- ness in New York, established a hemp manufacturing mill in Paterson. The owners of the mill were seldom seen in Paterson and then only for a day or two; so the company was soon known as the "Scottish Company," although the title displayed at the entrance of the works was "American Hemp Manufactory." In 1850 jute was added to the raw material handled and soon became the principal. The mills are located on Spruce street and have been added to from year to year until they have become one of the important industries of the city.
PUBLIC "
5
TTT
The Paterson Savings Institution.
BANKING INSTITUTIONS.
Early struggles in the domain of finance-Several attempts which resulted in failures-The wrecking of a Trust Company-Modern institutions which have proven successful to all concerned.
For many years in early Paterson the keepers of stores did a banking business, necessarily on a very limited scale. The first venture, solely for the purpose of providing banking facilities, was made in 1815, when the Pater- son Bank was incorporated. Daniel Holsman was the first president and Andrew Parsons the first cashier. What was at that time considered a pre- tentious building was erected for the bank at Nos. 217, 219 and 221 Main street. It was known for some years as the "Old Bank." After a precarious existence of some years, Judge Garrabrant Van Houten was induced to take the presidency. He had been one of the first subscribers to the stock and, having managed so well various trusts committed to his care, it seemed natural that he should be chosen president when a man of judgment and means was needed to restore the confidence of the people. For several years he held that position at the modest salary of $500 yearly, and contributed not only his time and ability, but largely of his personal resources, to sustain the bank, amid all sorts of discouragements, until the burden became too onerous even for him, and so finally, on June 2, 1829, he instructed the cashier to close its doors. Every obligation of the bank was met. In 1834 it was revived, with John Travers for president and J. M. Redmond as cashier, but it soon met a tragic end through the operations of a famous forger, Rathbun, of Buffalo.
The People's Bank was incorporated in 1834, the first president being Alexander Carrick, the senior member of the firm of A. & R. Carrick, cotton manufacturers. James Nazro was the first cashier, succeeded by Henry C. Stimson. The bank began operations on the corner of Bank and Ryerson streets and moved thence to Van Houten street, near Cross ; its next location was at No. 172 Main street, from where it removed to Market street, oppo- site Prospect street. It finally acquired the quarters on Main street which had been previously occupied by the Paterson Bank. Robert Carrick suc- ceeded his brother as president and was followed in succession by George Seeley, Judge D. B. Ogden and David Burnett. Its failure in 1851 aroused a storm of popular indignation with threatened riotous demonstrations, espe- cially about the residence of Mr. Stimson, on the northwest corner of Mar- ket and Church streets.
The Mechanics' Bank was incorporated in 1832 and two years later its charter was repealed. Its guiding spirit was a Dr. Sherman, of New York, who placed Paterson men in the offices in order to inspire local confidence Dr. Sherman was subsequently convicted of fraudulent banking in New York and sent to prison.
362
PATERSON AND ITS ENVIRONS
The Paterson Savings Bank was incorporated in 1848, but the small volume of its deposits showed that it never attained public confidence. In 1867 the cashier was found to be $8,000 short and the directors wound up the affairs of the bank without serious loss to any one.
The lack of banking facilities in Paterson, immediately after the failure of the People's Bank, attracted the attention of several speculators in New York City. These came to Paterson and, having induced some of the promi- nent citizens to permit the use of their names as directors, organized the Cataract City Bank. The bank issued notes to the full extent permitted by law and continued a precarious existence for some years, until in 1860, when its doors were closed. An examination of the affairs of the bank showed that the little capital invested had been dissipated; the depositors sustained an almost complete loss, fortunately not very great. Three of the managers were sent to State prison for fraudulent conduct.
The National Bank of Paterson, organized in 1862 and occupying a building on Main street, opposite Fair, depended altogether on New York for its capital and management. In 1865 a difference of opinion arose among its directors as to whether the bank should be reorganized ; as no agreement could be reached, the bank closed its doors, but all claims were paid in full.
In 1872 James F. Preston came to Paterson from Hartford, Connecti- cut, and, largely with the assistance of capital from his former home, organ- ized the Merchants' Loan and Trust Company under a special charter which contained some remarkable provisions. Chief among these was the right to exact usury. In order to evade the State law fixing the maximum rate of interest that could be charged, the charter contained a provision permitting the bank to require the payment of a bonus on loans. The bank officials did not disguise the real nature of this charge and in the books appeared columns of figures referred to as "usury." Another provision of the charter per- mitted the bank to advance money, with the finished products of mills and factories as security. This was intended to be of material assistance to the manufacturing interests of the city. The bank opened a savings department, paying seven per cent. on deposits. William Ryle was elected president, but resigned some time after as a token of his disapproval of the manner in which the business of the bank was conducted. In 1876 the bank gained unenviable notoriety on account of its connection with the tax frauds of the city. Sev- eral of the tax assessors had been in the habit of assisting the tax collector in making his collections. The books in the collector's office, to which the assessors had access, were copies of the books in the office of the assessors. By dropping the last figure from the valuation and also from the amount of taxes due, the latter were reduced to ten per cent. of what they should have been and the city lost a great many thousands of dollars by this way of manipu- lating the city books. In all such cases the taxes were paid in currency, rather a peculiar way of doing business, certainly on the part of a bank. What became of the ninety per cent. lost by the city may be easily imagined. The crisis came in July, 1877, when Robert McCulloch, one of the directors and a heavy depositor, determined to secure himself. He presented a check
THE NEW TOYA PUBLIO LIJA487
TILDEN FYUND MENO
---------
First National Bank
13331311
363
BANKING INSTITUTIONS
for $28,000 and asked for currency ; he was accommodated, but when a few hours later he presented another check of similar figures, the bank had no currency left and its doors were closed. An examination of its books showed that on the evening before its failure the directors, McCulloch not being present, tried to secure whatever they had on deposit to their respective accounts, by selling to themselves what few valuable securities were left. Under threat of court proceedings these securities were subsequently re- stored and the directors received only the percentage obtained by other de- positors. Their indictment resulted in acquittal, the State having failed to show guilty intent. The cashier, Preston, and one of the directors, were indicted for fraud in having advanced to a woman in New York about $30,000 on no better security than the furniture she bought with the money, this furniture being used in a house the woman had leased in New York. The assistant cashier was also indicted, but never brought to trial ; he fled from the jurisdiction of New Jersey to a State of which a near relative of his was lieutenant-governor ; when extradition papers from New Jersey were presented, the governor declined to honor them. Preston was sentenced to State prison, the director indicted with him and who had approved of the loan escaping with the payment of a fine. The bank occupied what was considered at that time a pretentious building, erected for it on the corner of Market and Hotel (now Hamilton) streets, the site at present occupied by the United States Trust Company.
The history of the organization of the First National Bank dates back to January, 1864. On the 29th of that month articles of association were entered into for the purpose of organizing a banking association under an act of Congress, approved April 25, 1863. Under these articles of associa- tion, George M. Stimson, F. A. Canfield, William A. Butler, Samuel Smith, Richard B. Chiswell and William Gledhill became associates to organize the bank. According to the articles of association the capital stock of the bank was fixed at $100,000. An election of directors was held on the 30th of Janu- ary, when the organizers were elected a board of directors ; William Gledhill was elected president and George M. Stimson cashier. It was also resolved that an instalment of thirty per cent. of the capital stock be called in. Mr. Stimson had been engaged in the banking business for a number of years, and the design of the organization of the First National Bank was to transfer his capital and management to a new institution under the National Banking Act. He subscribed for nine-tenths of the entire capital stock. The neces- sary permission to proceed with business had been obtained from the Bank Department in Washington and on the 27th of April the directors resolved to begin business on May 2, 1864. Mr. Stimson's health had failed in the meantime and it became apparent that his illness would prevent him from assuming the management of the bank. As he was the principal stockholder and the existence of the institution was supposed to depend entirely on his ability, the board of directors on the 8th of July resolved to go into liquida- tion and sent word to that effect to Washington. At this critical period Mr.
364
PATERSON AND ITS ENVIRONS
John J. Brown, who had been engaged in mercantile pursuits in the city for a number of years, enlisted the interest of a number of prominent citizens in an attempt to save the bank for the benefit of the people of this city. It was 110 easy task at that time to raise $100,000 in Paterson, but the importance of having a public bank of deposit and discount in this city impressed itself strongly on the minds of those to whom Mr. Brown spoke on the subject. Sufficient capital had been subscribed in the early part of September to induce the subscribers to urge the board of directors of the bank to hold another meeting and withdraw from the Bank Department in Washington the appli- cation to go into liquidation, and also to elect a board of directors of thirteen instead of six. This meeting was held on the 15th of September and the new stockholders proceeded at once with the preliminary steps towards the organization of a bank. These stockholders were Allen, Reynolds & Com- pany, George Denton, John Byard, David B. Beam, John J. Brown, Mrs. Ann Brown, Charles Godden, Curran, Bowering & Company, Jonathan S. Christie, Richard B. Chiswell, Wright Flavell, William W. Fairbanks, John Cooke, William Gledhill, Benjamin Crane, Henry B. Crosby, J. Johnson & Brothers, John Hodgson, Christian Huber, Josiah P. Huntoon, William M. Halstead, Charles Keeler, Henry M. Low, Peter Ower, Edo Kip, S. R. Mer- rill, Edward C. May, A. W. Rogers, Daniel Miller, John N. Terhune, John T. Spear, James M. Smylie, Lewis R. Stelle, John Swinburne, Mrs. Joseph N. Taylor, H. C. Stimson, Thomas Wilson, C. A. Wortendyke. A board of directors was chosen consisting of John Cooke, John Reynolds, Henry B. Crosby, John N. Terhune, Henry M. Low, John J. Brown, Jonathan S. Christie, Josiah P. Huntoon, John Swinburne, Patrick Curran, Edward C May, William Gledhill and George M. Stimson. The two latter were con- tinued from the old board, but Mr. Stimson's health continuing to be im- paired he resigned on the Ist of December and Mr. John C. Westervelt was elected in his place. The first meeting of the new board was held on the 17th of September and resulted in the election of Mr. John J. Brown as president. Mr. Jonathan S. Christie as vice-president and Mr. Edward T. Bell as cashier. On September 21, 1864, the reorganized bank opened its doors for business and on that day received $47,000 in deposits ; by the end of the year this sum had reached $256,000. The bank, from the 21st of Sep- tember, 1864. to February 1, 1866, occupied the premises which had been used by its predecessor. They were simply the parlors of the fine three- story brick building at No. 240 Main street, erected by C. G. Garrison, and formerly occupied by him as a residence. These had been, with little ex- pense, fitted up so as to serve the purpose of a limited business.
These premises, owing to the increase of business, became wholly in- adequate to the wants of the bank, and a lease was taken on premises now occupied by the Paterson Savings Institution. This place was at considerable expense remodelled and it was occupied by the bank from February 1, 1866, until April 27, 1871, at which time it removed to its present location.
365
BANKING INSTITUTIONS
The building there erected was entirely consumed in the great fire of February, 1902, but fortunately most of the books were saved. After a temporary sojourn in quarters afforded by the Paterson Savings Institution, the bank purchased the building on Church street, between Broadway and Van Houten streets, which had been erected by Drs. T. Y. and P. S. Kinne as offices for themselves, and it remained there until the completion of its present building.
The directors of the bank in 1919 are Edward T. Bell, Robert J. Nelden, Dwight Ashley, Charles L. Auger, Robert Barbour, E. G. Fullerton, Wil- liam B. Gourley, William Hand, Leopold Meyer, Henry H. Parmelee, Rob- ert Williams, C. M. Weil and Whitfield W. Smith. The officers of the bank are as follows : Edward T. Bell, president ; Robert J. Nelden, vice-president ; Whitfield W. Smith, cashier ; Frederick D. Bogert, assistant cashier ; Wilfred E. Riley, assistant cashier. The report of the condition of the bank on May 12, 1919, shows the following figures :
Time Loans $1,875,702 32
U. S. and Other Bonds. 2,328,526 25 Undivided Profits $1,170,875 34
Cash and Balances in Banks$1,827,438 37
Due from Treasurer U. S .. 15,800 00
Demand Loans 435,112 75
Capital Stock, Surplus and
Deposits
5,332,406 85
Circulation 288,079 50
The Passaic County Bank was organized in 1852 by Mr. George M. Stimson and a few friends and was conducted as a private bank, Mr. Stim- son holding nearly all of the $50,000 capital stock. In 1863 the capital stock was doubled. Among those who held stock was Mr. James Jackson, who at that time was engaged in calico printing and was also a member of the firm of Swinburne, Smith & Company, locomotive builders. A short time after the capital stock had been increased to $100,000, Mr. Jackson purchased a controlling interest and shortly afterwards became virtually the sole owner of the institution. When the National Banking Act was passed the bank was reorganized and assumed the name of the Passaic County National Bank. When Mr. Jackson died in 1870, Mr. Benjamin Buckley was elected president and the capital stock was increased to $150,000. Mr. Buckley retired from the management of the bank in 1881 and Mr. James Jackson, son of the for- mer president, was elected president; Mr. Jackson had been the cashier of the bank since 1872. The name of the bank was changed to the Second Na- tional Bank on April 14, 1874. In 1904 the bank opened a department for savings.
The directors elected in 1919 were William D. Blauvelt, J. Albert Van Winkle, William I. Lewis, Samuel S. Evans, Dr. Francis H. Todd, Louis A. Piaget, Charles Curie, Edwin M. Hopson, Felix G. Pittet and Gerald B. Jackson. The officers are: William D. Blauvelt, president; Samtiel S. Evans, vice-president ; Edwin M. Hopson, cashier; Wessels Van Blarcom, Roland G. Eves and Ernest E. Blauvelt, assistant cashiers. The report of the bank of May 12, 1919, shows the following figures :
366
PATERSON AND ITS ENVIRONS
Loans and Discounts. . $1,085,451 59
Capital Stock $250,000 00
Securities 3,745,894 60
Surplus and Profits. 398,608 65
Liberty Bonds and U. S.
Certificates 2,262,754 00
U. S. Bonds-to secure Cir- culation 100,000 00
Cash and Due from Banks, Etc. 859,903 29
Due from Treasurer U. S ..
6,000 00
Banking House and other Realty 220,000 00
The Paterson Savings Institution was incorporated April 2, 1869, pur- suant to the provisions of an act of the Legislature passed for that purpose. The statute limited the organization to an existence of twenty years, but at the expiration of that period its charter was further extended for fifty years by an act of the Legislature. The incorporators were John Reynolds, John N. Terhune, Edward C. May, John Hopper, Jonathan S. Christie, Robert Hamil, Henry B. Crosby, William W. Fairbanks, Patrick Curran, Josiah P. Huntoon, William Gledhill, Andrew Derrom, John Swinburne, John J. Brown and E. T. Bell. At a meeting of the incorporators held on April 29th of the same year they were elected a board of managers and held that office until the annual election in the following year. The capital stock of the insti- tution was fixed at $100,000 and ten per cent. of this was paid in. The sub- sequent payments of capital stock were made from the dividends declared semi-annually until May 17, 1892, when the full amount of the stock had been paid in.
The institution opened its doors for the transaction of business on May I, 1869, at No. 122 Market street, then called Congress street. Its banking hours were from 5 to 7 p. m. on Wednesdays and Saturdays, Mr. Edo I. Merselis then being the only clerk in the employ of the institution. On May I, 1871, the institution removed to No. 235 Main street and it was open daily from 10 to I and 2 to 4, and on Saturdays from 5 to 7. On May 1, 1872, the hours were changed from 10 to 4 and on Saturdays from 10 to 7. On May 1, 1887, the hours were changed again, being from 10 to 3, and Saturdays from Io to 7. Its present banking hours, from 10 to 3, and Saturdays from IO to 6, were established March 1, 1890.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.