USA > Ohio > Cuyahoga County > Cleveland > A history of the city of Cleveland: its settlement, rise and progress, 1796-1896 > Part 29
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The Merchants' Branch Bank of the State Bank of Ohio was organized June 25th, 1845, also with a twenty years' charter. P. M. Weddell was chosen president, and Pren- tis Dow, cashier. Its successor was the Merchants' National Bank, which was formed on December 27th, 1864, but did not commence business until February 7th, 1865, when the original bank ceased operations. T. P. Handy and W. L. Cutter were re-elected to the respective positions of president and cashier. In that year the bank was made the United States depository for the receipt of public money. The charter of the Merchants' National Bank expired on December 27th, 1884. Its successor, the Mercantile National Bank, was organized December 10th,
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1884, and commenced business on the 29th of the same month. This bank soon completed and occupied an elegant new building on "the old corner," where Mr. Handy and the Commercial Bank of Lake Erie joined fortunes in 1832; the old building, which was torn down to give place to the new, having been erected in 1851.
The Commercial Branch of the State Bank of Ohio was organized in September, 1845, with the usual twenty years' charter. William A. Otis was made president, and T. P. Handy, cashier. It opened its doors for business on November 25th, of the same year, in a block on Superior street, near Water street. The Commercial Branch Bank was wound up March Ist, 1865, on the expiration of its charter, and the Commercial National Bank, which had been organized December Ist, 1864, in preparation for this event, assumed the business on the same day. Its charter was renewed in 1884, and the bank was continued with no change of management or of stockholders. In 1869, the Commercial National Bank moved into its own quarters in the National Bank building, which had been jointly erected by it and the Second National Bank, on the corner of Superior and Water streets.
The charter of the Cleveland Society for Savings was issued on April 4th, 1849, and on August 2nd of the same year the new institution was opened for business. John W. Allen was chosen president, S. H. Mather, secretary, and J. F. Taintor, treasurer. In a short time, Mr. Taintor withdrew, and the two offices were combined in Mr. Mather, who spent the remainder of his life in devoted attention to the interests of the society, being its president at the time of his death. While there is much that might be said in high praise of all the banking institutions now under consideration, and while the majority of Cleveland banks have been managed with fidelity, honesty, and satisfactory results to their stockholders, it is permissible to make special reference to this one, which has made a re- markable record -- especially as it was founded on what was, in those days, an experiment in western finance. The
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Society for Savings differs from most banks and savings and loan associations, in that it has no capital, and that the profits go to the depositors.
Its origin is a matter of more than passing interest. Early in 1849, Charles J. Woolson, the father of Miss Woolson, who has won such deserved fame in literature, was talking with S. H. Mather, then a member of the
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SOCIETY FOR SAVINGS BUILDING.
Cleveland bar, and in the course of the conversation, Mr. Woolson suggested to Mr. Mather that an institution modeled after some then in existence in the East, would be a benefit to Cleveland, and especially to its poor. The idea abided with Mr. Mather, and after he had given it proper consideration, he consulted with other gentlemen, and the result was, that a charter was procured and the
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bank opened for business. Its beginning was humble. Part of a room, but twenty feet square, in the rear of the Merchants' Bank, was secured, the rest of it being used as desk room by others. The first deposit was made by Mrs. D. E. Bond, in the sum of ten dollars. The busi- ness gradually increased, and after the objection the public holds to all experiments, had worn off, the success of the Society was a settled fact. In the fall of 1857, it became necessary to remove to a more commodious building, and that afterwards occupied by Everett, Weddell & Co., on the corner of Bank and Frankfort streets, was secured. In 1867, their first block on the Public Square, which the Society had built, was completed and moved into, and at a later date the magnificent new building projected by the Society on the Public Square, at its junction with On- tario street, was completed and occupied. In a financial sense, the Society was long since counted one of the strongest and most successful of the banking institutions of the West.
The charter of the Bank of Commerce was issued in 1844 or 1845, but no bank was then established. In 1853, it was purchased by H. B. Hurlbut, and the bank set in motion. Parker Handy was chosen president, and Mr. Hurlbut, cashier. In a short time, Mr. Handy resigned, and Joseph Perkins was elected in his place. In May, 1863, it was changed to a national bank, and took the title of the Second National Bank, the law then requiring the use of numerals instead of names. Mr. Perkins and Mr. Hurlbut continued in their respective offices of president and cashier. On the renewal of its charter in 1882, the old name was re-adopted, and it was thenceforth known as the National Bank of Commerce.
In 1851, was formed the private banking house of Wick, Otis & Brownell. The partners were H. B. and H. Wick, WV. A. and W. F. Otis, and A. C. Brownell. In 1854, the Wicks purchased the interests of their partners and the name of the house was changed to H. B. & H. Wick. In 1857, Henry Wick bought out his brother, and having
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taken his son into partnership, the bank became known as Henry Wick & Co. E. B. Hale opened a private bank in 1852; in 1866, he formed a partnership by the admis- sion of W. H. Barris to the firm, and the name was changed to E. B. Hale & Co. The private banking house of Brockway, Wason, Everett & Co., commenced busi- ness in March, 1854. The partners were A. W. Brock- way, Charles Wason and Dr. A. Everett. It soon changed to Wason, Everett & Co., on the retirement of the senior partner; and when Charles Wason disposed of his interest and H. P. Weddell was admitted, the firm name became Everett, Weddell & Co. Through financial reverses, it closed up business in July, 1884.
The First National Bank was organized May 23rd, 1863, being one of the first half-dozen that came into life under the national bank law. The new concern was not alto- gether without a foundation of business in the start, as that of the private banking house of S. W. Chittenden & Co. was transferred to it. George Worthington was the first president, and S. W. Chittenden, cashier. The charter expired in June, 1882, and the bank continued under a re- organization which had occurred on May 13th, 1882.
The Citizens' Savings & Loan Association was opened for business August Ist, 1868, with J. H. Wade as presi- dent, and C. W. Lepper, treasurer. It was incorporated on the 16th of May of the same year, under an act of the Legislature "to enable associations of persons to raise funds to be used among their members for building homesteads, and for other purposes, to become a body corporate." The Ohio National Bank was organized January 1, 1876. Robert Hanna was the first president. The People's Savings & Loan Association, a West Side institution, was organized on March 2, 1869. Daniel P. Rhodes was made president, and A. L. Withington, secretary and treasurer. The South Cleveland Banking Company was organized in June, 1879; the Savings & Trust Company, May 8, 1883 ; the Cleveland National Bank, May 21, 1883; the Union National Bank, June 7, 1884.
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With the Greater Cleveland of this century-ending dec- ade, has come an increased demand for larger and more extended banking facilities. Capital, and faith in the city's future, have made generous and ample answer. An enumeration of the banking institutions in existence, at the close of 1895, may be made as follows: Broadway Savings & Loan Company, Brooklyn Savings & Loan Association, Central National Bank, Citizens' Savings & Loan Association, Cleveland National Bank, Cleveland Trust Company, Columbia Savings & Loan Company, Commercial National Bank, Cuyahoga Savings & Banking Company, Detroit Street Savings & Loan Company, Dietz, Denison & Prior, Dime Savings & Banking Com- pany, East End Savings Bank Company, Euclid Avenue National Bank, Euclid Avenue Savings and Banking Com- pany, First National Bank, Forest City Savings Bank Company, Garfield Savings Bank Company, German Amer- ican Savings Bank Company, Guardian Trust Company, W. J. Hayes & Sons, Indemnity Building & Loan Com- pany, Lake Shore Banking & Savings Company, Lorain Street Savings Bank Company, Marine Bank Company, Mercantile National Bank, Merchants' Banking & Storage Company, National Bank of Commerce, National City Bank, Ohio National Building & Loan Company, Park National Bank, Pearl Street Savings & Loan Company, People's Savings & Loan Association, Permanent Savings & Loan Company, C. H. Potter & Company, Produce Ex- change Banking Company, Savings, Building & Loan Com- pany, Savings & Trust Company, Society for Savings, South Cleveland Banking Company, State National Bank, Union Building & Loan Company, Union National Bank, United Banking & Savings Company, Wade Park Bank- ing Company, West Cleveland Banking Company, West- ern Reserve National Bank, Wick Banking & Trust Com- pany, Woodland Avenue Savings & Loan Company.95
95 The subjoined figures, taken from the "Cleveland Plain Dealer," of November 12, 1895, form a fitting comment upon the above list: "By the statement made of the condition of the twelve National Banks, Septem-
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It took Cleveland a long time to work up from its first bank to a Clearing House Association. The latter was formed on the 28th of December, 1858, its purpose being " to effect at one place, and in the most economical and safe manner, the daily exchange between the several as- sociated banks and bankers; the maintenance of uniform rates for Eastern exchange, and the regulation of what descriptions of funds shall be paid and received in the settlement of business." The following banks and bank- ers subscribed to the articles of association: Commercial
"THE FLATS" IN 1857.
Branch Bank, Merchants' Branch Bank, Bank of Com- merce, City Bank, Forest City Bank, Wason, Everett & Co., H. B. & H. Wick & Co., Whitman, Standart & Co., and Fayette Brown. T. P. Handy was elected president
ber 28th, 1895, the combined capital stock paid in amounted to $9,458, 250; the surplus to $2,699, 769; the deposits $24,391,423, and the loans $27, 710,- 654; and on October 7th, the twenty-six State Banks and Savings Socie- ties showed a combined paid-up capital of $5,078,960, with surplus and undivided profits $4,054, 877; deposits $48,691,080, and loans $34, 852, 768. Taking the combined deposits of all the banking institutions, as above, the amount reaches the enormous figure of $73,082,503, which is more than one-third the deposits of all the banks in the State of Ohio."
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and W. L. Cutter, secretary. T. P. Handy, Lemuel Wick and Fayette Brown constituted the executive committee.
The banks of Cleveland have had rather less than their share of failures, burglaries and defalcations, although a few relics of that character have been discovered, in this search into the records of the past. The first discovery partakes more of the character of the legendary than of the hard solidity of historic fact. It pictures the senior Leonard Case, in the days when the Commercial Bank of Lake Erie was housed in a portion of his dwelling, sitting on his hearthstone, with a hatchet, ready to brain an indus- trious burglar who was working his way in with a spade; but, as no use was made of the hatchet, it is to be sup- posed that this primitive burglar was warned away, or found the task greater than the possible stake. Or, per- haps, the bank broke up before he completed the tunnel, and he desisted, lest possession of the bank should make him responsible for its liabilities.
Of a more definite character is the attack made by de- termined men on the old Canal Bank, which exploded into thin air, in the early part of November, 1854. Those were exciting times to men who held the paper money then afloat, and who made haste to get rid of it, in fear that it might turn to worthless paper in their hands. So com- mon was the explosion of weak concerns that the "Plain Dealer," in those days of Gray, dug from its cellar a relic of the "Hard Cider Campaign," a cut of a log-cabin being blown up, and published it from day to day over the an- nouncement of each crash. The evaporation of the Canal Bank was not unexpected, and we read in the "Herald " of November 9, 1854, the calm announcement that "the failure of this bank excited no surprise in this city." "During the day, " adds this unmoved chronicler, "a crowd was about the door, where a force of police were stationed to prevent any disturbance." The "Plain Dealer " of the same date seems to have found some indorsement of its financial doctrines, in this and like failures, as it treats the Canal wreck in a cheerful strain. It says: "About
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the Canal Bank, yesterday, there was not only a large, but a greatly interested crowd. The bill-holders, who got the gold for their notes, were arrayed in smiles, and con- trasted, most ludicrously, with the grim-visaged deposi- tors, who got nothing."
Isaac L. Hewitt, H. W. Huntington, and W. J. Gor- don were appointed assignees, but objection being raised to Mr. Huntington, he gave place to the late E. F. Gay- lord. There seems to have been no headlong rush for the position of assignee, as it was offered in succession to Franklin T. Backus, Philo Chamberlain, H. N. Gates, and George Mygatt, and as often declined. There was great excitement for a few days, and the old men of Cleveland tell the tale in a Homeric strain, wherein lies an intima- tion that, though these modern days have their share of stirring events, they are not such as saw the fall of Troy, or Dr. Ackley's raid on the outer and inner walls of the Canal Bank vault. But even Dr. Ackley had his prede- cessor. On the day preceding the failure, a fresh-water captain named Gummage had deposited one thousand dol- lars, the result of the season's labor and danger on the great lakes. When told that his cash was swallowed up, he became desperate, and proceeded to a desperate reme- dy. Arming himself, he entered the bank and demanded his money. When it was refused, he said: "It is all the money I own in the world, and I will have it or I will kill you!" He meant what he said and looked his meaning, and his cash was handed over without parley. No one ever proceeded against him, in law or otherwise.
Dr. H. C. Ackley, who was as determined as he was eccentric, had a personal deposit in the Canal Bank, but laid no claim to it in preference over the other victims. He was, however, one of the trustees of the State Insane Asylum at Newburg, and had placed in the bank nine thousand dollars of the public funds. On the announce- ment of the suspension, he demanded this sum, which he did not get. He hurried to the sheriff's office and swore out a writ of attachment. Sheriff M. M. Spangler pro-
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ceeded to the bank, which was located on Superior street, near the American House, in the building now occupied by the "Leader," and took possession. "The keys of the vault being refused him," says the "Herald," "he pro- ceeded to break open the vault. The excitement, both inside and outside the bank, was intense while the work proceeded; but, to the credit of our citizens, no signs of riot were displayed. Dr. Ackley has a heavy deposit of his own, but has procured an attachment only on behalf of the State, claiming that unless its money is procured, the asylum at Newburg can not be opened for more than a year, and that during that time one hundred insane patients will be deprived of MAYOR H. M. CHAPIN. treatment."
Sheriff Spangler construed his duty to be the getting of the money, and when he found that brick walls and iron doors opposed the entrance of the law, he summoned sev- eral stalwart deputies, and, under the guardianship of Dr. Ackley, who is said by ancient rumor to have threatened to shoot the first man who interfered, laid down such lusty blows as had not been heard since Richard of the Lion Heart drove his battle-axe against the castle gates of Front-de-Bœuf. Sledge-hammers swung in the air, and came down on the brickwork with a crash; clouds of lime and mortar filled the room. The population of Cleveland could almost have been enumerated from those who crowded on the scene. The officers and clerks of the bank looked on, helpless to prevent, and in no posi- tion to aid. F. T. Backus, a part owner of the building, and the attorney of the bank, rushed in and ordered a halt, on the grounds of trespass. The sheriff replied that he had come for the money, and that it was a part of his offi-
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cial oath to get it. The blows still fell, and at one o'clock the outer wall of the vault was broken, and measures set on foot to break into the burglar-proof safe. Truces were held, from time to time, lawyers rushed here and there, with messages, advice, and papers; but the sheriff knew no law but that of his writ, and had but one purpose, which was to get at the cash. Finally, late at night, to save the safe from damage, the assignees gave up the keys, and the hard-earned money was carried away by the sheriff. There were $400 in gold and $1,460 in bills. The one hundred insane of Northern Ohio had their shelter for the year, and, if the stories of the day were well founded, the depositors were not the worse off for it, as very small re- turns were forthcoming, in settlement of their claims.
Sheriff Spangler, in a personal interview, some years ago, informed me that the excitement was intense, and the affair talked about for weeks afterward. He said that while he was hammering away, he was threatened with prosecution for damages by Mr. Backus, the attorney for the bank, and by its cashier and assignees; but the more they talked, the more determined was he to gain his point.
While Cleveland has been quite successful in the ma- jority of her banking ventures, she cannot be said to have been equally so in connection with the insurance compa- nies, which her citizens have established, from time to time. The main cause for their disappearance may be found in the great Chicago fire of 1871, that bankrupted a number and caused the winding up of others.
As early as 1830, the Cleveland Insurance Company was chartered, with power to do both an insurance and a bank- ing business. Edmund Clark was made president, and S. W. Chittenden, secretary. It was conducted for years exclusively as a banking concern, but reorganized as an in- surance company in 1861. It went by the board through the great fire above referred to. The Cleveland Mutual Fire Insurance Company was incorporated in March, 1849, was never very successful, and eventually wound up. In 1851, the Commercial Mutual Insurance Company was
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organized, was caught in the Chicago fire, reorganized as the Mercantile Insurance Company, and continued until 1890, when it reinsured in an Eastern concern, and went out of business. The Washington Insurance Company was chartered in 1851, failed, and wound up its career with a number of vexatious lawsuits. The City Insurance Company of Cleveland came into existence in 1854, but had a brief and by no means profitable existence. The German Fire Insurance Company was organized in 1859, and sent suddenly out of existence, because of heavy risks in Chicago. The Buckeye Insurance Company came in 1863, and was wound up in 1870. The State Fire & Ma- rine Insurance Company was organized in 1864, reorgan- ized as the State Fire Insurance Company, and afterwards reinsured its risks and went out of business. The Sun Fire Insurance Company opened operations in or near 1865, made an excellent record, and wound up its affairs in good order. Other companies of a later date were as follows: The Teutonia Fire Insurance Company, organ- ized in 1866, wound up after the Chicago disaster; the Midas Insurance Company, organized in 1866, reorgan- ized as the Forest City Insurance Company, and wound up in 1871; the Allemannia Fire Insurance Company, or- ganized in 1869, made an assignment and went out of ex- istence in 1874; the Hibernia Fire Insurance Company incorporated in 1869, and wound up in 1878; the Resi- dence Fire Insurance Company chartered in 1874, and wound up in 1877. The Board of Fire Underwriters of Cleveland was organized in June, 1846, with the follow- ing officers: J. L. Weatherly, president; C. C. Carleton, vice-president; H. F. Brayton, treasurer; George May, secretary. It continued in active existence until 1863, or 1864, when its functions ceased temporarily, or until 1866, when it was reorganized, and has since been in active operation. 96
96 Much of the information in the above is taken from an able and ex- tended article in the "Cleveland Voice," of January II, 1896, entitled "Insurance in Cleveland." The history of all these companies is there given in detail.
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The census enumeration of 1850 is a fair point at which to commence the general story of Cleveland for these later years, as it showed the presence of a population of 17,034. This indicated a steady and healthful growth for the ten preceding years. It was a period of present prosperity, and of promise for the future. The lake fleet was at its summit of popularity, and of service as a means of pas- sage, as the railroads had not yet begun to make the de- structive inroads of a later day. The stage coaches were kept busy, carrying loads of travelers to and from Cleve- land, manufacturers were reaching out and extending, the municipality was in a pro- gressive mood, and Cleve- YOUNG MEN'S CHRISTIAN ASSOCIATION. land had earned the right to be called a city in fact, as in name. Some additions, in a material and moral way, that were made during several succeeding years, may be briefly mentioned. The Lake Shore Foundry was estab- lished by Mr. Seizer, in 1850, and continued under his man- agement until 1866. The manufacture of organs was trava4 /05211 commenced by Child & Bish- op in 1852, and the concern Y. M. C. A. BUILDING, 1875. became eventually known as the Jewett & Goodman Or- gan Company. The Third Presbyterian Church was or- ganized, with thirty members, on March 25, 1850, and two years later changed its policy to the Congregational, and its name, to the "Plymouth Church of Cleveland." It was also in, or near, 1850 that a Young Men's Christian Asso- ciation was organized in this city, and a work commenced that has been productive of increasing good, through all the years that have since passed. Reading rooms were opened on Superior street, and the Association flourished until the breaking out of the Civil War, when a majority
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of the members answered the call of their country, and the Association passed into suspension, for lack of support. In 1866, the present Association was organized. In 1872, it opened rooms on the north side of the Public Square, and later moved to more commodious quarters on Euclid avenue, near Sheriff street. Still later, it erected and oc- cupied a handsome and commodious building on the cor- ner of Prospect and Erie streets. It has done great good in various ways, not the least of which has been the work among the railway men, and the opening and maintenance of a branch at the Union Passenger Depot.
In accordance with the provisions of the new State con- stitution, adopted in 1851, the General Assembly passed a law for the organization and government of municipali- ties within the State, repealing all the charters then in force. The chief change in the local government was the abolishment of the Board of Aldermen, an increase in the number of elected officials, and the establishment of a police court, the duties of which had been previously per- formed by the mayor.
William Case was elected mayor in 1850, and again in 1851, and Abner C. Brownell in 1852, the last chosen un- der the old charter. The city election of 1853 was one of unusual importance, as a number of new officials were added to the list of those chosen by the people. A special vote also was taken, to determine whether or not the city should expend four hundred thousand dollars for the erection of water works. Abner C. Brownell became his own successor, and the other officers first chosen under the new charter were as follows: Police Judge, John Barr; Clerk of Police Court, Orlando J. Hodge; Prosecuting Attor- ney, Bushnell White; Commissioners of Water Works, H. B. Payne, B. L. Spangler, Richard Hilliard; Directors of Infirmary, Orson Spencer, James Barnett, Alex. W. Wal- ter; Commissioners of Streets, A. McIntosh, J. M. Hughes, J. B. Wheeler; Marshal, Michael Gallagher; Auditor, J. B. Bartlett; Treasurer, William Hart; Solicitor, James Fitch; Fire Engineer, William Cowan; Harbor Master, C.
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