History of the city of Dayton and Montgomery County, Ohio, Volume I, Part 59

Author: Drury, Augustus Waldo, 1851-1935; S.J. Clarke Publishing Company, pub
Publication date: 1909
Publisher: Chicago : S. J. Clarke Pub. Co.
Number of Pages: 966


USA > Ohio > Montgomery County > Dayton > History of the city of Dayton and Montgomery County, Ohio, Volume I > Part 59


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In November, 1850, Daniel Beckel, William Dickey and Joseph Clegg opened the Farmers' Bank in the Ohio block on Third street, west of Kenton street. In 1852 Mr. Clegg and Mr. Dickey withdrew and the bank was moved to the north- east corner of Third and Jefferson streets, where Mr. Beckel conducted it alone until its close in 1854.


The Miami Valley Bank, an incorporated bank, was started in 1851 with Daniel Beckel, Nathaniel Strong, James McDaniel, Daniel A. Haynes and Joseph Clegg as directors. Daniel Beckel was president and S. C. Emley cashier. This bank started in room 3 in the Ohio block, but was afterward moved up on Third street near Main in the room formerly occupied by the Dayton Bank, where it finished its existence.


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The Dayton Bank, which started out so bravely in 1845, only lasted seven years. In 1850 President Jonathan Harshman, Sr., died and Cashier Valentine Win- ters resigned, and in 1852, it closed, most of its business being taken over by the New Exchange Bank, which Valentine Winters, Jonathan Harshman, R. R. Dickey and James R. Young started in the same year. In 1853 R. R. Dickey and J. R. Young withdrew and in 1857 Mr. Harshman did likewise. Mr. J. H. Winters was then taken into the firm and under the name of V. Winters and Son it built up a prosperous business which was turned over to the Winters National Bank, January 1, 1882.


It thus will be seen that in the early fifties, there were two incorporated banks, the Dayton Branch of the State Bank and the Miami Valley Bank, doing business besides the three private banks conducted by Joel O. Shoup, Daniel Beckel and Harshman and Winters. J. H. Winters, in a paper read before the Dayton Board of Trade on Tuesday, February 21, 1888, gave a vivid and most entertaining ac- count of how banking was conducted in the early fifties, and as they are personal recollections there can be nothing better done than to give liberal extracts from his address. He says : "The private banks, or as they were not infrequently called 'shaving shops,' did the bulk of the business. The Dayton Branch Bank made collections, bought and sold exchange, received deposits, but paid no interest therefor and loaned money at six per cent, the charter limit, but frequently re- ceived a higher rate by directing its impecunious customers to make their paper payable in New York instead of here, so that when the note matured the maker would be compelled to pay the same in exchange or its equivalent. This would or- dinarily give the bank an additional one per cent on its loan which, under the high taxes of the "crowbar law" of that day, was no unimportant item, though it was claimed that such procedure was an indirect violation of the State Bank char- ter. Tradition tells us that its discount committee met but once a week and that on these occasions the lives. characters and prospects of the borrower and his en- dorsers, and of their immediate friends and relatives underwent a searching examination."


This was a time of great inflation and the currency of those days bore such euphonious names as "wild cat," "red dog," and various other colored canines, and Mr. Winters relates a funny incident that happened in their bank during the height of the excitement caused by the bursting of the inflation bubble. He says : "While conversing with John McCracken, city editor of one of our daily papers, a farmer entered the bank followed by a large, lean and hungry looking yellow dog. The dog stretched himself near the stove for a nap. The farmer having finished his business left the bank and closed the door after him with a slam. This woke the dog, and missing his master, he sprang up and without stopping to consider possible consequences, bolted directly through the plate glass of the front door and followed by a shower of glass was last seen heading for Springfield at breakneck speed. McCracken, while fairly bursting with laughter, called out, 'How's that, John, for circulation? Yaller dog issue, isn't it?' "


It seems there were times when the banks had more money than could be used by local merchants and they purchased the paper of merchants in neighborhing cities, some of which was not as gilt-edged as represented, judging by the follow- ing incident related by Mr. Winters. "Mr. Joel O. Shoup, a neighboring banker,


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offered our firm some of the paper of Ezekiel Ross, of Cincinnati. As our firm hesitated about taking the paper, Mr. Shoup became somewhat excited and bring- ing his fist down on the table with great force, exclaimed : 'Winters, any man hav- ing the money who would not discount old Zeke Ross' paper ought to be hung.' To avoid this alternative the paper was taken, and is still held by the purchasers."


A few words in explanation of the "crowbar law" may not be out of place here. The legislature had passed a very onerous tax law and the banks refused to pay the taxes. To meet this condition the county treasurers were authorized to invade the banks and take the tax money, using a crowbar if necessary to break in. The banks never rendered necessary this desperate expedient but would place the amount of the taxes in a sack and leave it lying around where the treas- urer could pick it up. This was done to emphasize their protest against the law, and it was successful, because in a couple of years the law was declared invalid and the taxes were refunded.


In 1860 Reuben Harshman and John H. Gorman started a private bank, which ran until "Black Friday."


Reuben Harshman, who spent most of his time in New York, was badly caught in the whirl on that disastrous day and the bank went under. It made a very bad failure, paying only one and three-fourths cents on the dollar and is the only one which ever occurred among Dayton banks.


When the national banking law was passed by the congress on February 15, 1863, Dayton responded immediately and on June 22, 1863, the First National Bank commenced business and on June 29th, of the same year, the Second National Bank opened up. It is a matter of great pride to the citizens of Ohio to know that this state led in the organization of national banks. On August 20, 1863, there were fifteen national banks in Ohio with an aggregate capital of $3,043,000, while in all the rest of the Union there were seventy-five national banks with a total capital of $3,710,000. The First National Bank of Cincinnati was the largest of all with a capital of $1,000,000, while the Second National Bank of Cleveland, was the second with a capital of $600,000.


The directors of the First National Bank were Simon Gebhart, Thomas Par- rott, Caleb Parker, John L. Martin, Daniel E. Mead, Samuel Marshall, George W. Shaw and Josiah Gebhart. Simon Gebhart was president and Gabe Harman, cashier.


In 1870 this bank sold out to Simon Gebhart, Gabe Harman and W. B. Gebhart, who continued the business as a private bank under the name of Gebhart, Har- man and Co. In February, 1883, this business was taken over by the City National Bank, the first directors of which were Simon Gebhart, Gabe Harman, W. B. Gebhart, Ezra Bimm, H. C. Graves, P. M. Harman and Joseph R. Geb- hart. Simon Gebhart was president and Gabe Harman cashier. Of the original board of directors H. C. Graves and Joseph R. Gebhart are still serving at this writing (1909). In 1894 Simon Gebhart was succeeded as president by W. P. Callahan, who died in 1903 and was then followed by Thomas De Armon. Gabe Harmon served as cashier until his death in 1894, when W. B. Gebhart was elected to that office.


THE SECOND NATIONAL BANK received charter No. 10 and its first board of di- rectors was composed of Jonathan Harshman, James Perrine, George W. Kneis-


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ley, T. S. Babbitt, W. P. Huffman, Robert Chambers, L. R. Pfoutz, N. B. Darst and D. C. Rench. Jonathan Harshman was president and D. C. Rench cashier.


It started business June 29, 1863, at 28 North Jefferson street, where it re- mained until 1869, when removal was made to the northwest corner of Third and Jefferson streets. In January, 1869, W. P. Huffman became president and Charles E. Drury, cashier, these gentlemen continuing in those offices until the bank liquidated in 1882.


THIRD NATIONAL BANK. The same parties then organized the Third Na- tional Bank, which took over the business of the old Second National Bank. The following composed the first board of directors : W. P. Huffman, Daniel Keifer, Thomas S. Babbitt, Eugene J. Barney, George W. Kneisley, John K. McIntire, Ru- fus J. King, George W. Shaw, Charles E. Drury. W. P. Huffman was president and Charles E. Drury, cashier. In January, 1888, John K. McIntire was elected president and in January, 1909, Rufus J. King was elected to succeed him, Mr. McIntire having died during the preceding year. At the time of his election Mr. King was in his ninetieth year but was yet a hale and vigorous man both mentally and physically. Charles Rench succeeded Mr. Drury as cashier September 2, 1890.


As heretofore mentioned the Dayton Branch of the State Bank in 1864 was reorganized into the Dayton National Bank with the following directors: Peter Odlin, J. H. Achey, Horace Pease, G. W. Rogers, Harvey Conover, Herman Geb- hart, Joel Estabrook, Dr. H. Jewett, T. A. Phillips. Peter Odlin was president and C. G. Swain cashier.


The following have been the presidents of this stanch old bank:


Peter Odlin, 1865; J. H. Ackey, 1872; W. H. Simms, 1886; R. C. Schenck, 1898; S. W. Davies, 1902 to present time (1909). The following is the list of cashiers : Charles G. Swain, 1865; H. C. Heistand, 1866; W. S. Phelps, 1869; James A. Martin, 1884; C. L. Hubbard, 1898; R. S. Wilcock, 1906 to present time (1909).


MERCHANTS NATIONAL BANK. In 1870 some of the men who had been in- terested in the First National Bank, whose business had just been taken over by Gebhart, Harman and Company, conceived the idea of starting a new national bank and The Merchants National Bank was the result. This bank opened for business February 15, 1871, with the following gentlemen for directors: Caleb Parker, D. E. Mead, Samuel Marshall, John Powell, J. W. Dietrich, James Applegate, E. D. Payne, N. Ohmer and J. C. Peirce. John Powell was president and A. S. Estabrook cashier.


D. E. Mead succeeded John Powell as president in January 1873, and served until his death in November 1891. J. C. Peirce was chosen to serve the unexpired term as president but in January 1892, Alexander Gebhart was elected president and continued in that office until his death in July 1909, after which E. A. Dan- iels was elected in August 1909, as his successor. A. S. Estabrook served as cashier until his death in November 1905, when Thomas W. Gable was chosen cashier, but on account of sickness was unable to serve and died early in 1906. In April 1906 Charles W. Slagle was chosen cashier.


WINTERS NATIONAL BANK. As stated elsewhere the business of the banking firm of V. Winters and Son was transferred to the Winters National Bank, Jan-


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uary 1, 1882, and the following gentlemen composed its first board of directors: Valentine Winters, Sr., J. H. Winters; E. M. Wood; Samuel Craighead; J. D. Platt; Lewis B. Gunckel, James Stockstill, Jacob Decker ; J. M. Phelps.


J. H. Winters has been president of the bank from the beginning until the present time (1909). J. C. Reber was the first cashier and was succeeded in 1904 by Frederick A. Funkhouser.


FOURTH NATIONAL BANK. On January 12, 1888, the Fourth National Bank commenced business on the northeast corner of Third and Jefferson streets with the following directors: E. J. Barney, J. W. Stoddard, W. E. Crume, Edward Canby, C. J. Ferneding, Torrence Huffman, Houston Lowe, W. J. Shuey and J. B. Thresher. J. B. Thresher was the first president and Ziba Crawford cashier.


In January 1898, Mr. Houston Lowe withdrew from the board and was suc . ceeded by Mr. S. J. Patterson. In January 1904, W. F. Hockett succeeded Mr. W. E. Crume who had died a short time previously and in January 1909 Mr. Hock- ett retired from the board and E. C. Harley was elected in his place. In January 1893, Torrence Huffman became president and J. B. Thresher was elected vice- president. C. L. Hardman succeeded Ziba Crawford as cashier in January 1895, and in August 1903 he resigned, his successor being W. F. Hockett.


UNION SAFE DEPOSIT AND TRUST COMPANY. In 1887 some gentlemen later identified with the Fourth National Bank, had incorporated the Union Safe Deposit and Trust Company for the purpose of building a storage vault for val- uables. They opened up in the room adjoining the bank, on the same day that the bank opened, and did quite a business in renting boxes in their vaults for the keeping of valuable papers and for a number of years had a monopoly in this respect. In July, 1900, the business was taken over by the Fourth National Bank and the company liquidated. Its directors were: E. J. Barney, J. W. Stoddard, Edward Canby, C. J. Ferneding, Torrence Huffman, Geo. J. Roberts, Col. J. D. Platt, W. J. Shuey, J. B. Thresher.


THE DAYTON SAVINGS BANK was organized and incorporated February 24, 1874, and its place of business was on East Fifth street in the room now oc- cupied by the Germania Building Association. Its trustees were C. F. Kneisley, Charles Burroughs, Joseph Durst, Daniel Slentz and J. L. Prugh with C. F. Kneisley as president and J. W. Dietrich, cashier. Its founders had hoped to do a large savings bank business with the working men but the building associations had become too firmly intrenched and that branch of the business never amounted to much. However, it did a fair amount of commercial banking with the mer- chants of that part of town and in 1889 it was merged into the Teutonia National Bank, which opened business on the northwest corner of Fifth and Jefferson, July 15, 1889. The first board of directors was composed of the following gentle- men : Louis H. Poock, Edward Pape, W. S. O'Neill, Harry Coleman, Fred Rei- bold, John Dodds, Charles E. Swadener, Adam Lessner and Joseph A. Wortman. Edward Pape, Sr., was president and Louis H. Poock, cashier.


In January, 1891, Fred Reibold was elected president and he in January, 1902, was succeeded by Edward Pape, Sr. In January, 1904, J. D. Whitmore succeeded Mr. Pape, and in January, 1908, J. Edward Sauer was made president. Joseph Schumacher was made cashier in July, 1890, and is still serving at this time ( 1909).


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By 1890 all the banks in the city had become national banks and the business of the city was taken care of by them until 1903. For several years in other cities a new competitor had appeared in the fields, namely, the Trust Company. These companies, organized under state laws, could do about everything that a national bank could and much more besides and were meeting with great success wherever started. There was considerable talk of starting one in Dayton but the move- ment was not regarded with much favor by the national banks and it lagged somewhat.


A. E. Appleyard, of traction fame, opened up one, however, on Third street, near Jefferson called The Southern Ohio Trust Company, installed some mission furniture, hired some clerks and then waited for the good people of Dayton to bring in their money. But none came and in a short time Appleyard's traction roads became bankrupt and his trust company expired without costing anybody anything except himself.


THE FIRST SAVINGS AND BANKING COMPANY was incorporated under the Ohio Bank laws and opened up November 7, 1903, in the room fitted up by Appleyard for his trust company. The directors were: George Schantz, Eugene Wuichet, Horace A. Irvin, Joseph J. Schaefer, Obed W. Irvin, Lewis Kette, Daniel W. Alla- man, Charles W. Bieser, Francis W. Gruen. Obed W. Irvin is president and F. W. Gruen cashier.


DAYTON SAVINGS AND TRUST COMPANY. In 1903, Mr. A. J. Conover and Mr. Grafton C. Kennedy organized the Dayton Savings and Trust Company, fitted up a room at 108 south Main street and opened for business in January, 1904. The board of directors was composed of the following: A. J. Conover, G. C. Kennedy, H. C. Kiefaber, Henry Hollencamp, L. D. Reynolds, W. M. Whitmore, Theodore Fluhart, S. W. Davies, Adam Lessner, Walter L. Kuhns, John P. Breen, William T. Wuichet, Fred H. Rike, William Gamble, William Stroop, with A. J. Conover as president, and William R. Craven, cashier and secretary.


FARMERS AND MERCHANTS BANK. In 1906 interests connected with the West Side Building and Loan Company opened a bank at the south west corner of Third and Williams streets in the same room with the building association, which is called the Farmers and Merchants Bank. It is not incorporated and hence is classed as a private bank. J. W. Kreitzer is president and C. S. Billman, cashier. The directors were A. L. Shearer, William H. Shank, Henry Webbert. T. M. Pexton and J. M. Withoft.


THE NORTH, DAYTON SAVINGS BANK was organized in 1909 by Mr. John N. Lemmon and commenced business June 5. 1909, at the corner of Valley and Ohio streets. Its first board of directors was composed of the following gentlemen : Joe Kramer, John N. Lemmon, Dr. F. A. Duckwall, David L. Pickrel, Jr., Dr. R. A. Bunn, Sam H. Thal, Joseph Zehnder, Fred Lauterbach, Gottlieb Schutzler, George V. Geis, Philip Hock. Joe Kramer was the first president and John N. Lemmon the first cashier. On July 30, 1909, Mr. Lemmon died after a surgical operation and was succeeded as cashier, by Mr. A. C. Jackson.


THE MARKET SAVINGS BANK was organized early in 1909 with the following directors : Theodore H. Lienesch, Dr. C. H. Breidenbach, Edward Philipps, John C. Shea, Jacob A. Oneth, Jacob C. Dressler, William F. Smith, Joseph E. Lenz, William F. Adelberger and Judge C. W. Dustin. It opened for business December


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I, 1909, at the northeast corner of Wayne avenue and Richard street with the following officers: Presidents, Theodore H. Lienesch; First Vice President, Dr. C. H. Breidenbach; Second Vice President, Edward Philipps; Secretary and Attorney, John C. Shea; Cashier, Joseph S. Bade.


It will be seen that at the present time, 1909, there are twelve banks in the city, seven national, four state and one private. Their standing and methods of doing business are known to the community. The older banks passed safely through the disastrous panic of 1903 and the sharp and sudden crisis of October and November 1907, tried the temper of all of the banks and found them equal to the test. It has been conclusively proven that the banking affairs of Day- ton are conducted on a very high standard of safety and conservatism and that they are all worthy successors of that stanch old craft, The Dayton Manufactur- ing Company.


BUILDING ASSOCIATIONS.


DAYTON BUILDING ASSOCIATION, NO. I, was organized March 23, 1867. This was the first organization of the kind established in Dayton. Its business office was in the basement of the German Reformed church, at the corner of Clay and Cass streets. Its first officers were: President, Carl Bremer; Vice-President, Albert Geige; Treasurer, Frederick Naumann; Secretary, Jacob Decker; and Attorney John H. Stoppelman. In this association each member had but one vote without any reference to the number of shares he held. The shares were one hundred and twenty-five dollars each, and one of the special features of the asso- ciation was that all payments had to count back to the date of the organization, no matter when made. The officers of the association were as follows : Presidents, Peter Lenz, 1868 and 1869; John Roder, 1870 to 1873 inclusive. Vice-Presidents, John Schoen, 1868; John Roder, 1869; Augustus C. Meyer, 1870; William Stock, 1871; Gottlieb Eberhardt, 1872; Frederick Horn, 1873. Secretary, Louis H. Poock, 1868 to 1873 inclusive. Treasurers, Philip Walz, 1868; Henry Wete- kamp, 1869; Philip Walz, 1870; Henry Beddies, 1871 to 1873 inclusive. Comp- trollers, Frederich Steinbruegge, 1869; John Jauch, 1870; Frederich Stein- bruegge, 1871; Joseph Burwinkel, 1872. Assistant Secretary, Henry Hueffel- mann, 1873. Cashiers, Jacob Gruenewald, 1869 and 1870; Frederich Seeger, 1871 and 1872; John Weissmantel, 1873. Attorney, J. L. H. Frank, 1868 to 1873 inclusive. The affairs of this association were wound up August 26, 1873, at which time there was a dividend of fifty-four cents per share to be made, or in the aggregate $566,23 to be divided among the members after they had re- ceived back their original investment.


CONCORDIA BUILDING ASSOCIATION was organized March 23, 1868. Each share of this association was one hundred and fifty dollars. No member could hold more than ten shares, and no member had more than one vote, no matter how many shares he held. The first officers of this association were: President, George Neibert; Vice-President, Dr. Henry Weis; Secretary, A. Abicht; Treas- urer, Peter Lenz; Assistant Secretary, Louis H. Poock; Attorney, J. L. H. Frank. The subsequent officers were : Presidents, George Neibert, 1869 to 1872; Jacob Schmidt, 1873; Peter Lenz, 1874. Vice-Presidents, John Roder, 1869;


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Christian Schmidt, 1870; Christian Schoen, 1871; John Roder, 1872; John Schneble, 1873; Christian Schoen, 1874, Secretary, Louis H. Poock, 1869 to 1874 inclusive. Treasurer, Peter Lenz, 1869; Contantine Zwisler, 1870; William Leon- hard, 1871 and 1872; Christian Schmidt, 1873 and 1874. Cashiers, John Roder, 1870 and 1871; Edward Meissner, 1872; John Stroehler, 1873; George Jacob, 1874. Attorney, J. L. H. Frank, 1869 to 1874, inclusive. There were no officers elected for 1875, the affairs of the association being wound up April 22d, of that year, and the members going over to the Germania, a history of which follows:


GERMANIA BUILDING ASSOCIATION was incorporated April, 1873, with a capital of one million dollars, and has now enjoyed the confidence of its patrons more than thirty-six years. The policy of its management from the beginning has apparently been prudent and conservative and its present magnitude has grown far beyond the expectations of its original incorporators.


The authorized capital of the association is ten million dollars. Its assets, as shown by the last financial statement October 1, 1909, are over three million dol- lars, with a reserve fund of two hundred and fifteen thousand dollars to protect its stockholders and depositors.


Money is received upon stock and deposits which bear the highest dividend and interest rate consistent with safety. Loans are made upon first mortgage security on real estate located in Montgomery county. Much of the success and prosperity of this association is attributed to its management which consists of the following officers :


President, Henry W. Meyer; Vice-President, William H. Kuhlman; Treas- urer, George Deis; General Manager, Charles H. Meyer; Secretary, Fred W. Schoen; Assistant Secretary, Robert Albers; Attorney, Carroll Sprigg.


Its office is located at No. 430 East Fifth street, at which place business is transacted each day from 8:00 o'clock a. m. to 4:00 o'clock p. m., and Saturdays, from 8:00 a. m. to 8:00 p. m. Board meeting are held each Monday evening at the office of the association.


The directory consists of the following persons: Henry W. Meyer, William H. Kuhlman, George Deis, F. A. Requarth, August Meyer, Carl A. Karstaedt and Charles H. Meyer.


THE MUTUAL HOME AND SAVINGS ASSOCIATION was organized in 1873, for the purpose of raising money to be loaned among its members for use in buying lots and houses, in building and repairing houses, and for such other purposes as were authorized by law.


The capital stock of the association was at first one million dollars. In 1881, it was increased to two million dollars, and in 1884, it was raised to five million dollars. The last increase was in 1888, when it was made to ten million dollars.


From 1873 to 1880, the association had a continual struggle for existence, but in the latter year it began to prosper, and ever since that time, as may be inferred from the rapid and great increase of its capital, it has made rapid strides of progress.


The officers, at the time of organization, were as follows: President, William H. Dill; Secretary, Josiah E. Boyer; and Treasurer, James Anderton.


This organization continued until 1874, when Mr. Boyer resigned the secre- taryship, and after a short interval, A. A. Winters was elected secretary to fill


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the vacancy. A year or two later, Mr. Dill removed from the city and resigned the presidency, and Josiah E. Boyer was elected to the place. In 1880, James C. Reber, the cashier of Winters National Bank, succeeded Mr. Anderton as treasurer.


No further change was made in the officers until 1893, when A. A. Winters became general manager and William H. Kimmel, secretary. On the death of A. A. Winters in 1895, S. Rufus Jones was made general manager to fill the va- cancy. In 1903, Jonathan H. Winters, president of Winters National Bank, suc- ceeded James C. Reber as treasurer. On the death of Josiah E. Boyer in 1905, John E. Viot was elected president.




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