USA > Ohio > Cuyahoga County > Cleveland > A history of Cuyahoga County and the City of Cleveland, (Vol. 1) > Part 66
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While we can hardly claim him as a Cleveland writer, yet he comes into our history by reason of having been at one time a writer on the Cleveland Leader, Opie Read. Read was a writer on the Leader when Cowles was editor. He has written many books. He was born in Nashville, Ten- nessee, and edited the Arkansas Gazette in 1878-81 and in 1883 established the Arkansaw Traveler, a humorous publication. After serving on the Leader he went to Chicago and engaged in literary work as a writer of books. His works include "A Kentucky Colonel," "A Tennessee Judge," "The Wives of the Prophet," "An Arkansas Planter." "Old Ebenezer," "Old Jim Lucklin," "The Son of the Swordmaker," "The Mystery of Margaret," "Tom and the Squatter's Son," "The New Mr. Howerson" and many others. His address is the Press Club, Chicago.
CHAPTER XXXIII FINANCIAL CLEVELAND
"Where there is no vision the people perish."
It is a particularly interesting time to write of the financial history of Cleveland, when there has just been opened to the public (May 19, 1924) the new Union Trust Building, the second largest office building in the world, containing thirty acres of floor space, and the largest banking room in the world, "a marvel of beauty and symbol of prestige and power." On the opening day 136,453 persons visited the bank and nearly that number the second day. The Union Trust Company is the fifth largest trust company in the United States and the oldest trust company in Ohio and has deposits of $230,000,000 and resources of $270,000,000.
The site of the building at the corner of East 9th Street and Euclid was in the not far distant past the site of a frame dwelling of a Cleveland physician, but there was also a business character to it for it was his office as well. In the evolution of progress the Lennox Building took the site, but that was some years after for the locality for many years was considered too far out of town for business purposes. On that account it was not considered very valuable. The Union Trust Company paid $3,500,000 for the land, and the building cost $12,500,000 more. It is twenty stories high, being 100 feet higher than Niagara Falls and the radio towers on its roof are 375 feet above the street. Among the flower pieces at the opening was a massive bright motto, which embosomed the words "Vision, Courage, Faith." These words are particularly appropriate, for the men who have shaped the financial destinies of Cleveland have had these attributes, to which may be added many more, including fidelity. Samuel H. Mather, T. P. Handy, William A. Otis and John W. Allen, of the early generation, with many more, and Samuel Mather, H. P. McIntosh, J. J. Sullivan, Myron T. Herrick, Fred H. Goff, J. R. Nutt, Charles A. Otis and a multitude of others, of a later time, are good types.
Often criticised by men who fail to get certain accommodations that they desire, often charged with favoritism and an undue precaution in their management, it is a recognized fact that on the banks and the banking laws of our country has depended much of the prosperity of America, and to the bankers of Cleveland much credit is due from the days when there was little banking done until the present time.
Among the men who laid the first foundations of Cleveland's financial structure was T. P. Handy. He was born in Paris, Oneida County, New York, in 1807. He studied in the academy of his native town and instead of attending college took a position, at the age of eighteen, in a bank at Geneva, Ontario County, New York. Five years later he moved to Buffalo to assist in organizing the Bank of Buffalo, and was teller there one year. In 1832 he came to Cleveland for the purpose of resuscitating the Commercial Bank of Lake Erie, which was organized in 1816 and the charter of which had been purchased by Hon. George Bancroft of Massa-
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chusetts. Thus the great historian and statesman was the owner of the first Cleveland bank at one time. Mr. Handy acted as cashier, brought new life into the bank, and it prospered until 1842, when the charter expired and the Legislature refused to renew it. We say it prospered but it had passed through the financial crash of 1837. This crisis or panic worked a hardship to both the banks and their customers. The Commercial Bank of Lake Erie was compelled to accept real estate in the settlement of the estates of its insolvent customers and it became one of the largest land owners in the city. When from the failure of the Legislature to
T. P. HANDY
extend the charter it became necessary to close the affairs of the bank, Mr Handy was chosen to divide the property, mostly real estate, among the various stockholders. He did not complete this task until 1845, but in the meantime he had established a private banking house under the name of T. P. Handy and Company. In 1845 he organized the Commercial Branch Bank, a branch of the State Bank of Ohio, then dominant, with a capital of $150,000. William A. Otis was its first president and Mr. Handy took the helm as cashier, afterwards succeeding Mr. Otis as presi- dent. In 1865 the charter expired and the assets were divided.
The Merchants Bank of Cleveland, also a branch of the State Bank of Ohio, and commonly called the Merchants Branch Bank, was organized as well in 1845. It began with a capital of $100,000. The first board of directors were P. M. Weddell, Prentiss Dow, Harvey Rice, H. P. Weddell
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and Sherlock J. Andrews. P. M. Weddell was president and Prentiss Dow cashier. Like the Commercial Branch Bank it closed its business in 1865.
Now come the national banks, beginning a new era in the financial history of the country. Among other services performed by the state banks was the issuing of paper money. It will be remembered that in their time it was a common thing for the merchant to keep a customer waiting for a long time while he looked through a volume to ascertain whether the bill presented for the payment of goods was of value. This currency had
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no backing except the bank of issue and many banks had failed and the money was worthless. It was not a question of counterfeit or genuine money alone that must be regarded but the solvency or insolvency of the bank that issued it. Quotations were given also, and state bank money ranged in value from a few cents on the dollar to par. So tradesmen and others provided themselves with a paper currency record to avoid loss from accepting bad or depreciated money.
The successor of the Merchants Branch Bank was the Merchants National Bank, organized in February of 1865. Its first board of directors included Thomas M. Kelley, T. P. Handy, Melancton Barnett, William Collins, James F. Clark, Samuel L. Mather and William Bingham. T. P. Handy was president, and W. L. Cutter, cashier. It began with a capital stock of $500,000. It was made the United States depository for public
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money. Its location was at the corner of Bank and Superior streets in a building bought from the old company for $35,000. The successor of the old Commercial Branch Bank was the Commercial National Bank of Cleveland. This was organized also in 1865. It started with a capitaliza- tion of $600,000. The incorporators were William A. Otis, Amasa Stone, Jr., Levi Benedict, William J. Boardman, Dudley Baldwin and Dan P. Eells. This bank occupied quarters in the Atwater Building until the completion of the new building at Bank and Superior, which was built jointly by the Commercial National and the Second National banks at a cost of $180,000. Dan P. Eells was the first president and Augustus S. Gorman was the first cashier. In the 'SOs Eells was still president, Amasa Stone, vice president, and Joseph Colwell, cashier.
The City Bank, a branch of the State Bank of Ohio, sprang from the Firemens Insurance Company, a corporation having power to transact a general banking business, but without the power to issue paper money. It was incorporated in 1845 with a lease of life of twenty years. It was capitalized at $150,000. Elisha Taylor, Reuben Sheldon, Stephen Whit- taker, C. L. Camp, Moses Kelley, William Milford, Charles Patrick and W. T. Smith were the first directors. Reuben Sheldon was president, and T. C. Severance, cashier. This bank closed in twenty years at the expira- tion of its charter, having the satisfaction of knowing that its money issued as a branch of the Ohio State Bank was quoted at par.
Its successor, the present National City Bank, was organized in 1865 with a capital of $200,000. The incorporators were Lemuel Wick, H. H. Coit, S. Ranney, L. F. Lyman, Otto Boise, A. Pomeroy, S. Newmark, S. B. Day, Moses Kelley, H. K. Day, B. H. Babcock, J. F. Whitelaw and William T. Smith. Lemuel Wick was the first president, and John F. Whitelaw, cashier. Its place of business on Superior Street was first occupied by the Firemens Insurance Company, second by the City Bank, and then by the National City Bank. In the '80s W. P. Southworth was president and Mr. Whitelaw still cashier and S. Newmark retained his place as a member of the board. In the '90s John F. Whitelaw was presi- dent, T. W. Burnham, vice president, and E. R. Date, cashier.
In 1917 there were seven national banks and twenty-five state banks, savings banks and trust companies in the city. Now the National City Bank has the distinction of being the only one left of the original National banks of Cleveland, the era of consolidation having united the others with trust companies of larger resources for the more efficient service due to the necessities of Greater Cleveland and its environs. Its present location is the northeast corner of Euclid and East Sixth Street, in the National City Bank Building, formerly the Garfield Building, which it has recently purchased and fitted up with excellent and commodious banking rooms. The present officers of this historic bank are president, H. V. Shulters, chairman of the finance committee, C. A. Paine, vice president and cashier, C. B. Gates, vice president and trust officer, C. B. Reynolds. E. H. Gehlbach and W. T. Ross are also vice presidents. There are twenty-five directors. The resources of this bank are over $25,000,000.
The most interesting in its history, the closest to the people outside of what is called the business world, not doing a general banking business but holding the savings of an army of depositors, having received since it was founded nearly $300,000,000 in deposits and paying out annually in dividends large sums, is the Society for Savings in the City of Cleveland. Its story has been often told but it should have a prominent place in every history of the city.
Its inception dates from a casual conversation which took place in
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1848 between Samuel H. Mather and Charles J. Woolson. In the course of the conversation the question came up of providing a safe place for the peoples' savings. Mr. James Wood related to the writer that previous to this conversation an employee of Mr. Mather had asked him to care for a small sum which he had saved from his wages, suggesting that he might add to it from time to time. The casual talk of the two men resulted in action and on the 20th of March, 1849, just before the adjournment of the Forty-seventh Legislative Session of Ohio, an act was passed establishing the Society for Savings in the City of Cleveland. The charter was copied from that of the oldest savings bank in the United States, a New England benevolent institution without capital, managed by trustees with- out salaries in the interest of depositors only.
The incorporators were Samuel H. Mather, William A. Otis, Alexander Seymour, Daniel A. Shepard, Charles J. Woolson, Nathan Brainard, James H. Bingham, James A. Briggs, Henry W. Clark, Ralph Cowles, John A. Foote, James Gardner, John H. Gorman, Louis Handerson, Josiah A. Harris, Morgan L. Hewitt and Joseph Lyman. The society was organized in June, 1849, with the following officers: President, John W. Allen, vice presidents, Reuben Hitchcock, Dudley Baldwin and F. W. Bingham, secretary, Samuel H. Mather, and treasurer, J. S. Taintor.
It began business in the office of Mr. Mather, a room twenty feet square in the rear of the old Merchants Bank. Mr. Mather was paying $400 per year rent and the society agreed to share this with him by con- tributing $75. Office hours were fixed at two hours on Wednesday and two hours on Saturday to accommodate Mr. Taintor who was teller of the Merchants Bank. While treasurer, Mr. Taintor employed Dan P. Eells as bookkeeper, paying him, probably not a large compensation, out of his own pocket. The first depositor was Mrs. D. E. Pond, who on August 2, 1849, deposited $10.
The report of the treasurer for the first six months showed the ex- penses to have been $3, the cost of the sign that was put out. The expenses for the year were $46. No salaries were paid until July 1, 1850, when the secretary and treasurer were voted surplus earnings, after paying dividends and expenses, but not to exceed $100. They got $50 this year and the next the secretary got $170 and the treasurer $130.
For eight years the society occupied this little Bank Street office. At 4 o'clock each day, just as the Merchants Bank was closing, Mr. Mather would put all the assets of the society in a tin box eighteen inches long and deposit it in the bank vault for safe keeping, calling for it the next morning. This box is still in the possession of the society. Tradition has it that in the very start a cigar box was used and that the tin box was a later development. The aggregate of deposits increased from year to year and William A. Otis, who was president for eight years, once in an optimistic mood predicted that the deposits would some day reach $300,000.
When the Weddell House was built in 1857 the society got its own rooms with safe and vault. It outgrew these quarters and moved again and then bought land on the Public Square and built on the northeast corner there. This was said to be the first actual fireproof building in the city. This was the home of this historic institution until the building of the present massive bank and office building at Ontario and the Public Square, which in its strength and permanency is typical of the character of its builder. It may be added that the original charter was only for thirty years, but subsequent legislation has made it to extend indefinitely.
Among the presidents have been William A. Otis, Samuel Williamson, Samuel H. Mather, who was its first secretary, and Myron T. Herrick, who was its third secretary. Luther Allen served as secretary following
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Mr. Mather. The present officers of the society are Myron T. Herrick, chairman of the board, John H. Dexter, president, Howard M. Yost, treasurer, and R. T. Edison, secretary. A very capable and popular treasurer for many years was Albert L. Withington, who was later presi- dent. The guard, Lawrence Distel, once lieutenant of the life saving station, has served in the bank for thirty-six years.
The bank incorporated in 1863 as the First National Bank of Cleveland succeeded the banking house of S. W. Crittenden and Company. It was capitalized at $125,000 and its first officers were Philo Scovill, James Pannell, George Worthington, Benjamin Harrington, S. W. Crittenden and A. J. Spencer, directors, George Worthington, president, William Hewitt, vice president, and S. W. Crittenden, cashier. After Worthington died William Hewitt was president. In 1872 Philo Scovill was chosen president. He died three years later and was succeeded by General James Barnett. Its place of business was the Perry Payne Building on Superior Street. In 1906 we find it on Euclid Avenue, a short distance from the Public Square, in a fine building of its own, and with a capital of $2,500,000, a surplus of $750,000 and deposits of $23,000,000. Its list of officers included many of recognized financial standing in the city, John Sherwin, president, Thomas H. Wilson, A. B. Marshall and Fred J. Woodworth, vice presidents, Charles E. Farnsworth, cashier, and John R. Geary, Joseph R. Kraus, John H. Caswell, George N. Sherwin, Horace R. Sanborn and B. R. Bruce, assistant cashiers. This bank is now merged in the Union Trust Company, of which we have spoken.
The Second National Bank organized in 1863 with a capital of $600,000, which was soon increased to $1,000,000, has never suffered by reason of the fact that it was the thirteenth national bank to be organized in the United States. Its first officers were Amasa Stone, J. H. Wade, Stillman Witt, George Perkins, George B. Ely and H. B. Hurlbut, directors, George Perkins, president, and H. B. Hurlbut, cashier. This bank is not now in existence.
The Citizens Savings and Trust Company was established in 1868 and in 1906 was the oldest and largest trust company in Ohio, having a capital and surplus of $6,000,000 and total assets of $42,000,000. Its officers at that time were Horace Andrews, C. W. Bingham, T. W. Burn- ham, Alva S. Chisholm, H. B. Corner, G. A. Garrettson, Thomas S. Grasselli, Kaufman Hayes, J. H. Hoyt, M. B. Johnson, Ralph T. King, Bascom Little, D. Leuty, Samuel Mather, William G. Mather, H. R. Newcomb, D. Z. Norton, James Parmelee, James Speyer, Andrew Squire, N. O. Stone and J. H. Wade, directors, J. H. Wade, chairman, H. R. Newcomb, president, J. R. Nutt, secretary, and E. V. Hale, treasurer. There were four vice presidents and an advisory board of thirty-eight members. A fine building owned and occupied by the bank at Euclid and East Ninth Street was its home. This bank was an important factor in the merger of banks that formed the Union Trust Company and its build- ing was the home of the great trust company before its large new building was occupied. The first officers were J. H. Wade, president, T. P. Handy and E. M. Peck, vice presidents, and it was capitalized at $1,000,000.
The Ohio National Bank was organized in 1876 with a capital of $600,000. It commenced business in the Atwater Building. Robert Hanna was the first president. The officers in the '80s were A. Cobb, James Farmer, E. P. Morgan, D. A. Shepherd, F. W. Leek, O. A. Brooks, John McClymonts, William S. Jones and Alva Bradley, directors, and John McClymonts, president. Like the Second National this bank has been merged with others and has no separate existence.
The Peoples Savings and Loan Company, established in 1871 at the
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corner of West 25th (Pearl) and Franklin with a capital of $100,000, is the oldest bank on the west side. Daniel P. Rhodes was the first president and A. L. Withington was the first secretary and treasurer. By 1906 it had grown, had a capital of $200,000, undivided profits of about $145,000 and had deposits of $4,293,000. The officers at that time were: President, R. R. Rhodes, vice presidents, L. Schlather, W. C. Rhodes and George H. Warmington, secretary and treasurer, Henry Kiefer, assistant, P. J. Huegle, Jr. This is now the People's Branch of the Cleveland Trust Company, having been united to that great trust company with its many branches, in the era of general consolidation, which has followed the era of the national banks.
The Broadway Savings and Trust Company, which had in 1906 a cash capital of $300,000 and a surplus of $250,000, is now a branch of the Union Trust Company. It is located at Broadway and East Fifty-fifth Street. The officers in the year mentioned were C. A. Grasselli, president, O. M. Stafford, secretary and treasurer, and William Urquhart, cashier. Its board of directors included George H. Hodgson, S. Prentiss Baldwin, John Hirsius, George F. Gund and Dr. J. H. Lowman.
The Woodland Avenue Savings and Trust Company, located at Wood- land and East Fifty-fifth Street, had in 1906 a capital of $250,000 and a surplus of $150,000. Its president and secretary and many of the directors were the same as the Broadway Savings and Trust Company. This is now a branch of the Cleveland Trust Company.
The Union National Bank, located for many years at 308 Euclid, was one of the great factors that entered into the formation of the Union Trust Company. It had in 1904 a capital of $1,600,000, a surplus and undivided profit account of $700,000 and $12.000,000 in deposits. Its officers at that time were E. H. Bourne, president, L. McBride, H. C. Cristy and J. F. Harper, vice presidents, and E. R. Fancher, cashier. Its board of directors were Leander McBride, Henry C. Christy, J. F. Harper, L. C. Hanna, F. A. Sterling, Leonard Schlather, George H. Worthington, C. A. Grasselli, E. J. Siller, I. P. Lamson, R. H. Jenks, J. R. Nutt, U. G. Walker, M. J. Mandelbaum and E. H. Bourne.
The Pearl Street Savings and Trust Company, with a capital stock of $1,500,000, and resources of $26,665,000, is the largest bank on the west side, passing ahead of the United Banking and Savings Company, at Lorain and West 25th Street, which has for many years led the west side banks. The Pearl Street Savings and Trust Company was incorporated in November, 1889, and opened for business in modest quarters a short distance from Clark Avenue on what was then Pearl Street, now West 25th Street. Its authorized capital was $100,000, but at the time of opening it had a paid up capital of only $50,000, but on the opening day, February 15, 1890, it received $50,000 in deposits.
The first board of directors included John Deobald, John M. Hirt, Frank Seither, Dr. F. W. Daykin, W. H. Humiston, Tom L. Johnson, Alfred Kellogg, Carlos L. Jones, Otto Leisy, J. H. Lindhorst, D. E. McLean, Leo Mayer, F. Muhlhauser, J. A. Smith and Henry W. Stecher. F. Muhlhauser was chosen president, and Smith Neville, secretary and treas- urer. The vice president was George Faulhaber. From the start its loans have been made largely to home owners in the region south and west of the bank and thus it has aided in building up this part of Greater Cleveland. In the number of its loans it ranks third in the city and hence its percentage of loans over the great banks of down-town Cleveland as compared with the resources is very great. It has more outstanding home loans than any bank in the city.
President Muhlhauser was succeeded in office by D. E. McLean, and on
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the death of Smith Neville, Henry W. Stecher took his place as secretary and treasurer. Mr. Stecher had had no previous banking experience, having been engaged in business as a druggist, but just how rapidly he learned the intricacies of the new business may be inferred from the fact that on the death of President McLean he was chosen president of the bank, which position he now holds. Like William A. Otis of the Society for Savings, Mr. Stecher had a conservative vision. In his report as secretary in 1896 he said : "The business shows a steady increase and the day is not far distant when the assets will reach $1,000,000. In his report the following vear he said : "The million mark does not appear so far away as it did a year ago."
SOCIEDY
NORTHEAST CORNER OF PUBLIC SQUARE Showing Society for Savings Bank, Chamber of Commerce and United States Postoffice.
The present home of the bank at the corner of Clark Avenue and West 25th Street was built by the Pearl Building Company, an outside corporation in which officers of the bank were interested, but it is now the property of the bank. This bank has two branches, it having adopted the consolidation idea of the day but only in a small way compared with many of the larger institutions. Its home branch was at one time the Home Savings and Banking Company, which had been operating for many years at the corner of Broadview Avenue and Pearl Road. In 1923 a fine building was erected for this branch. The Home Savings and Banking Company was organized by F. A. Shepherd, who served as its secretary and treasurer, and who is now in charge of the branch. The Clark branch is located at Clark Avenue and West Fiftieth Street.
The officers of the bank are Henry W. Stecher, president, John L. Fleharty, John Beck, Leo Mayer, M. L. Ruetenik, A. F. Humel, J. V. Chapek, and F. A. Shepherd, vice presidents, W. J. Bauknet, treasurer, and
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F. J. Greiner, secretary. There are fifty-four directors and an advisory board of forty-five. Among these, other than the officers mentioned, are W. C. Astrup, William Spang, Harry Decker, Joseph J. Ptak, Charles Honecker, Herman Schmitt, J. A. Smith, N. O. Newcomb, Julius Spang, Dr. R. H. Sunkle, Dr. F. W. Daykin, C. F. Buescher, Hugo A. Leisy, C. R. Hildebrandt and Dr. L. C. Kintzler.
The Cleveland Trust Company, the second largest bank in Cleveland, has been a pioneer in the establishing of branches for the accommodation of its patrons. It has fifty branches and holds the distinction of having the largest number of depositors of any bank in any one city of America, and is second in the state as to its volume of savings accounts. It has one of the largest accumulations of trust funds in the state. It stands third in the United States in the number of its branches. When the bank began the establishing of branches, a test was made. New depositors were questioned as to their reasons for choosing the bank and the general answer was that they came to this bank in preference to others of good standing because of the convenience.
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