USA > Oregon > Multnomah County > Portland > History of Portland, Oregon : with illustrations and biographical sketches of prominent citizens and pioneers > Part 38
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FINANCIAL INSTITUTIONS.
commercial banking business of the State, some of them having many subsidiary institutions all over Oregon and Washington which are tributary and feeders to the Portland banks.
It is safe to say that Portland, at the present time, has as strong banking institutions as any city in the United States of equal population. All are doing a safe business and are conducted on a conservative basis, and the people of Portland take pride in their management and reputation. As there are no State laws requiring the publication of the deposits or capital of State banks and private bankers or those of foreign banks doing business in Oregon, their present condition and aggregate strength cannot be accurately ascer- tained. The following is a summary of the condition of the six national banks of Portland taken from the last report of the United States Comptroller of the currency for the year ending in December, 1888: Total paid up capital, $1,250,000; surplus fund, $187,500; undivided profits, $573,359.64; individual deposits (excluding govern- ment deposits), $3,627,497.79; loans and discounts, $3,717, 789.12; invested in United States bonds, $825,000; total liabilities, $7,209,- 734.65; while the lawful money reserve was more than double the amount required by law. These figures reveal the remarkable healthful condition of the national banks of Portland. Indeed, there has never been a failure or suspension of any national bank in Oregon.
The following table will show the available banking capital of the city for the year ending December, 1889, compiled from reliable sources :
OREGON BANKS
CAPITAL.
SURPLUS AND UNDIVIDED PROFIT.
First National
$ 500,000
$ 700,000.00
Ladd & Tilton
250,000
450,000.00
Commercial National .
250,000
136,740.23
Oregon National
200,000
30,000.00
Portland Savings.
125,000
120,000.00
Ainsworth National
100,000
26,954.96
Portland National
100,000
18,207.13
Merchants National
100,000
15,000.00
Oregon Capital
$1,625,000
$1,496,902.32
1,625,000.00
Total Oregon Capital
$3,121,902.32
406
HISTORY OF PORTLAND.
BRITISH BANKS.
Bauk of British Columbia.
$2,425,000
$ 557,750.00
London and San Francisco
2,100,000
315,000.00
$4,525,000
$ 872,750.00
4,525,000.00
Total British Capital
$5,397,750.00
Total Oregou Capital
3,121,902.32
Grand Total
$8,519,652.32
The average standing deposits in the ten banks named above is equal to $10,000,000, which, with the legitimate banking capital and the capital of the various loan companies of the city would make the present available banking resources of Portland fully $20,000,000, a statement based on a conservative rather than over estimate.
A Clearing House was opened in Portland, July 15, 1889, and froin that date we are enabled to give the reports for the first twenty- four weeks of its existence.
CLEARINGS.
BALANCES.
July, two weeks
$2,966,641.26
$ 657,167.63
August, five weeks.
7,273,339.84
1,563,332.65
September, four weeks
6,110,056.71
1,051,479.87
October, four weeks
7,895,075.99
1,347,030.33
November, five weeks.
9,651,097.99
1,972,803.49
December, up to 28th, four weeks
7,733,979.16
1,517,534.88
$41,630,190.95
$8,109,348.85
Banking statistics such as the above are conceded to furnish the best possible gauge for determining the real condition of a city's commercial standing, and Portland's exhibit in this regard places her, according to population, as a trade center, unsurpassed in the United States.
In mortgage banking the success of the Oregon and Washington Trust Company from 1873 to 1880, when it was consolidated with the Dundee Mortgage Company at a premium of seventy per cent. profit, caused foreign mortgage companies to seek investment on the North Pacific Coast. In 1880 the Pacific Loan Company of Liverpool, and the Dundee Mortgage and Trust Investment Company, of Scotland, entered the field. Subsequently the American Freehold and Land Mortgage Company, of London, and the New England Mortgage Company, of Connecticut, followed by
407
FINANCIAL INSTITUTIONS.
the American Mortgage Company, of Scotland, in 1881 and the Oregon Mortgage Company, in 1883, all of which opened offices at Portland. These companies had a combined capital of over $3,500,- 000 invested in the State of Oregon and Washington Territory, which was the means of developing, to a great extent, the lands of Eastern Oregon and Eastern Washington, supplying the new settlers, who arrived from 1879 to 1883, through the building of the Villard system of railroads, with money to improve the vast tracts of land which was then opened up for settlement. Their aggregate strengtlı, however, alarmed the granger portion of the State Legislature and in December, 1882, a special mortgage tax law was passed, declaring that all mortgages should be taxed at their face or par value. The effect of this law has been, in the main, harmful. The companies previously named immediately called in all matured loans and have greatly reduced their investments since the law went into effect. That the development of the resources of the country has been retarded by this legislative attempt to decrease the profits to the mortgagor, is an acknowledged fact. Foreign capital, in a great measure, has sought other fields, while the mortgage demand being much greater than the supply, has caused a higher rate of interest to be maintained than would have been the case if competition for mortgage securities had prevailed.
In the following pages we have aimed to present more in detail the history of each banking institution in Portland.
No change occurred in the firm of Ladd & Tilton, private bankers, from the time they commenced business, in April, 1859, until 1880, when Mr. Tilton withdrew. They commenced business at 73 Front street, and so successfully were they that, in 1861, the capital was increased from $50,000 to $100,000. A few years later the earnings of the bank turned into the business brought its capital up to $1,000,000. When the partnership was dissolved, that is, in 1880, bills receivable amounted to upwards of $2,500,000. As an evidence of the sound and safe business conducted by this concern, it may be stated, that when the bank made its statement, in 1888, there was less than $1,300 of this balance still outstanding. Business was conducted on Front street until 1869, when the present
408
HISTORY OF PORTLAND.
bank building, corner of First and Stark street was completed. The career of W. S. Ladd, who has been at the head of this financial house from the start, is so thoroughly given in other portions of this volume as to make further mention in this connection unnecessary. His close business calculation and powers of financiering have made possible the accumulation of the largest private fortune in the Pacific Northwest. He still personally superintends and manages his extensive interests with all the shrewd, far-seeing business sagacity which marked his younger years. Since the retirement of Mr. Tilton, Mr. Ladd's eldest son, William M., has been a partner in the bank. He inherits many of his father's traits, a strong will, perseverance and sterling integrity. He was prepared for college at Andover, Massachusetts, and graduated from Amherst College in 1878.
The First National Bank, as its name implies, was the first bank organized on the Pacific Coast under the national banking law, and remained for several years the only one. It was organized early in 1866 and opened its doors for business in May of the same year with a paid up capital of $100,000. L. M. Starr was president and James Steel, cashier. The opening was announced by advertisement in the Oregonian of May 9, stating that the bank was the designated depositary and financial agent of the government, and that exchange would be drawn on San Francisco and New York at favorable terms. For some time the bank occupied the upper floor of the building, No. 73 Front street.
In August, 1869, the greater part of the stock of the concern passed into the hands of Hon. Henry W. Corbett and Hon. Henry Failing, who have since so successfully controlled its destinies and extended its business. Its capital has been increased from $100,000 to $500,000, while its foreign business has been extended until now it has correspondents in ever important city in the world and has become the principal banking house of the city. Since 1869 Henry Failing has been president of the bank and Henry W. Corbett, vice president. The other officers are: G. E. Withington, cashier and H. J. Corbett, assistant cashier. The present building occupied by
409
FINANCIAL INSTITUTIONS.
the bank on the corner of First and Washington streets was erected in 1883 at a cost of $80,000, and is the finest bank building in the city.
The Bank of British Columbia is a branch of a London, England, corporation, which was founded in 1860 and has a capital of $2,425,- 000. The Portland banch was established in 1866 with E. Russel as acting manager. It has been very successfully conducted and enjoys a liberal patronage. For several years, George Good, a financier of well recognized ability, has had charge of the business in this city. The bank building, at the junction of A, Front and Vine streets, was erected in 1882 and cost $65,000.
The Oregon and Washington Mortgage Savings Bank was incorporated in 1876, with William Reid as president, and reorgan- ized in 1881. It has done a large amount of business, principally among the farmning population of the Willamette Valley, several million dollars having been loaned to this class during the first eleven years of the bank's existence. William Reid has continued as president ever since the organization of the bank. William Lowe is cashier.
The Portland Savings Bank was organized in 1880, and for the first two years of its existence was conducted largely as a matter of experiment. From a small beginning it has grown, however, to be one of the leading banks of the city. The first location of the bank was at the corner of Ash and Front streets, but at the end of the first year the demands of the business requiring larger quarters the bank was removed to the corner of Second and Stark. Here it remained until the completion of the elegant bank building at the corner of Washington and Second, where the bank occupies inost attractive quarters. The president of the bank is Frank Dekun1, who was also one of the incorporators of the institution. The other officers are W. K. Smith, vice-president, and H. C. Stratton, cashier. The board of directors is composed of D. P. Thompson, . W. F. Burrell, Frank Dekuwi, W. K. Smith, R. M. Wade, George H. Durham, S. A. Durham, C. A. Dolph, Ward S. Stevens, E. J. Jeffrey and Cleveland Rockwell. The bank has a paid up capital of $125,000, with a surplus and undivided profits of $120,000.
410
HISTORY OF PORTLAND.
The London and San Francisco Bank is a branch of an English corporation, with headquarters in London. It was established in 1882, and represents a paid up capital and reserve of $2,375,000. Under the direction of W. Mackintosh, manager, this institution has had a well deserved success in Portland.
The Merchants' National Bank is successor to the Willamette Savings Bank. The latter institution was incorporated in 1883, with James Steel as president, but, in 1886, it was changed to a commercial bank under the present name of the Merchants' National Bank. Mr. Steel was chosen president, and has continued to retain the position ever since. His connection with the bauk has largely contributed to its success. For many years he was cashier of the First National Bank and is not only a financier of acknowledged ability, but is a moving spirit in inany important enterprises which have been inaugurated in Portland during recent years. Associated with Mr. Steel in the management of the bank is J. Loewenberg, the vice-president, who is prominently identified with some of the strongest financial organizations in the Northwest. I. A. Macrum is cashier. The board of directors is composed of James Steel, J. Loewenberg, H. L. Hoyt, J. K. Gill, J. F. Watson, W. C. Johnson and I. A. Macrum.
The Oregon National Bank is the out growth of the Metropolitan Savings Bank, which was incorporated in September, 1882, with a capital of $150,000. Hon. Van B. DeLashmutt was the leading spirit in its formation, and was elected president. Under his able financiering the venture proved a success, notwithstanding the depressed condition of the country which immediately followed its inception. On the foundation of the success achieved, the Oregon National Bank was organized in June, 1887, with a capital of $150,000, which later on was increased to $200,000. Mr. DeLash- mutt was elected president, a position he has ever since retained. The other officers of the bank are George B. Markle, vice-president, and D. F. Sherman, cashier. The directors are: Richard Williams, George H. Williams, George B. Markle, W. W. Thayer, Van B. DeLashmutt, D. F. Sherman, J. H. Smith, H. Thielsen and C. H. Dodd. The Oregon National Bank has rapidly gained a large
411
FINANCIAL INSTITUTIONS.
business and holds a place in the foremost rank among the financial concerns of the city. The officers have in contemplation the erection of a new bank building which will be an ornament to the city and furnish adequate accommodations for the growing business of this institution.
The Portland National Bank was incorporated in May, 1884, and has been in successful operation ever since. Win. Reid is president and Win. Lowe, cashier. The directors are: William Reid, A. Reid, C. J. McDougall, John McGuire and F. E. Habershamn.
The Ainsworth National Bank was organized in 1885, with a capital of $100,000. This bank is located in the Ainsworth block, corner Third and Oak streets, a substantial fire proof building. In connection with the bank is a safe deposit vault for the storage of valuables, which is extensively patronized. The officers of the bank are: L. L. Hawkins, president; W. K. Smith, vice-president: J. P. Marshall, cashier. The directors are L. L. Hawkins, W. K. Smith, Preston C. Smith, J. P. Marshall and W. S. Charleston.
The Commercial National Bank commenced business January 4, 1886, with a capital of $100,000, which has since been increased to $250,000. D. P. Thompson the president of the bank is largely interested in country banks and has thus been enabled to draw around him an extensive clientage. Frank Dekum is vice-president, and R. L. Durham, cashier. The board of directors is composed of D. P. Thompson, Frank Dekum, R. M. Wade, E. S. Kearney, George H. Williams, R. Jacobs, L. White, Henry Weinhard, Cleve- land Rockwell, J. W. Hill, H. C. Wentman, J. B. David, W. F. Burrell, George H. Durham and R. L. Durham. This bank occupies a portion of the Portland Savings' Bank building, corner of Second and Washington streets.
LOAN AND TRUST COMPANIES.
The Northwest Loan and Trust Company, and the Portland Trust Company of Oregon, both do a savings bank business. The former was incorporated February 2, 1887, with a capital of $150,- 000. It receives and pays interest on sums of one dollar and upwards, and also executes trusts of every description; acts as assignee, receiver, guardian, executor and administrator or in any other
412
HISTORY OF PORTLAND.
fiduciary capacity. The officers are George B. Markle, president; J. L. Hartman, treasurer, and W. G. Dillingham, secretary. The board of directors is composed of George H. Williams, Herbert Bradley, S. B. Willey, H. Thielsen, J. A. Sladen, C. A. Alisky, Thos. F. Osborn, D. F. Sherman, Geo. B. Markle, J. L. Hartman, Chas. F. Beebe and J. Thorburn Ross.
The Portland Trust Company was incorporated April 22, 1887. It receives deposits in sums of two dollars and upwards. Its officers are H. L. Pittock, president; A. S. Nichols, vice-president, and Benj. I. Cohen, secretary. These officers, with A. M. Smith, C. E. Sitton, Cleveland Rockwell, W. W. Spaulding, L. G. Clarke, Charles H. Woodward and A. F. Hildreth compose the board of directors.
INSURANCE COMPANIES.
During the last few years four local insurance companies have come into existence in Portland, and all of them are prosperous and on a solid financial basis. The oldest of these is the Oregon Fire and Marine Insurance Company which was incorporated in 1881 and has a paid up capital of $220,000. L. White is president; H. W. Corbett, vice-president and Edward Hall, secretary.
The Northwest Fire and Marine Insurance Company was incor- · porated in January, 1886, but did not commence business until the fall of 1887. It has a capital of $500,000. The officers are: J. Loewenberg, president; J. McCraken, vice-president; R . P. Earhart, secretary and manager; F. M. Warren, treasurer, and E. Everett, assistant secretary.
The Columbia Fire and Marine Insurance Company was organized in May, 1887, with a cash capital of $500,000. It engages in all the business pertaining to fire and marine insurance. The directory of the company includes: D. P. Thompson, Asabel Bush, Frank Dekum, H. Thielsen, Walter F. Burrell and John A. Child. The officers are: Frank Dekum, president; A. H. Breyman, vice-president, and Peter Outcalt, secretary.
The Pacific Fire Insurance Company of Portland was organized March, 1888, with a capital of $500,000. F. E. Beachı is president; Win. McFall, vice-president; J. A. Strowbridge, treasurer, and W. F. Brownton, secretary.
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413
THE PRESS.
CHAPTER XV.
THE PRESS.
Early Efforts to Start a Newspaper-Growth and Progress of the Oregonian- The Evening Telegram-The Western Star- Democratic Standard-Portland Daily News -Pacific Christian Advocate-Daily Evening Tribune-Oregon Herald-Portland Daily Bulletin-Daily Bee-Daily Evening Journal-Evening Post-Northwest News -Oregon Deutsch Zeitung-Staats Zeitung-Freie Press-List of Newspapers which Appeared from 1870 to 1880-Catholic Sentinel-The New Northwest-Portland Journal of Commerce-North Pacific Rural Spirit-East Portland Papers-The West Shore-Sunday Mercury-Sunday Welcome-Pacific Express-Oregon Times-The World-Newspaper Mortuary Record from 1880 to 1890.
DORTLAND has always had an industrious and vigorous press.
The fathers of the city were not slow to perceive that among the things necessary to build up the city and make it known to the world was an active and enterprising press, and very soon after the city was started there was an effort to establish a newspaper here. The project was talked of for a considerable time before means were found of carrying it into execution. It was no easy matter to find a man who would undertake the publication of a newspaper in so young and small a community, and who at the same time possessed the ability and energy necessary for such a work. In those days there . was not a newspaper in every village, as now. The business was yet to be created. Finally, towards the end of the year 1850, Col. W. W. Chapman, Hon. H. W. Corbett and others resolved that Portland must not wait longer for a newspaper, and that measures must be taken to establish one.
In the autumn of 1850, Messrs. Chapman and Corbett were in San Francisco on a variety of business relating to the new city of Portland. The newspaper was not forgotten. Their desire was to find a man who had the means of establishing a weekly newspaper and experience in conducting the business. Such a man fortunately was found in Thomas J. Dryer, the founder of the Oregonian. Mr. Dryer was a native of Ulster County, New York. He had worked on the country press in his State, and had become known as a vigorous writer. He was not a man of much literary culture, but
414
HISTORY OF PORTLAND.
had high intelligence and great energy, and by nature belonged to the west rather than to the east. He had just arrived in California and had brought with him a hand press and a small lot of printing material. Mr. Corbett, in pursuit of a man who would establish a paper in Portland, fell in with Mr. Dryer, and undertook to show him that Portland was just the place for him; just the place where he could make an outfit like his own available. Colonel Chapman joined in the effort, and Mr. Dryer was induced to come to Portland to start a newspaper.
There was delay in getting the press and material shipped to Portland, but it finally arrived and was hastily put in order, and the first number of the Oregonian appeared December 4, 1850. It was a sheet of four pages, six columns to the page, and was to be published weekly. From that day to this it has never missed a weekly issue. Mr. Dryer was an aggressive and spirited, though not a scholarly or polished writer. The journals of that day gave little attention to reporting the ordinary incidents or affairs of their locality; news-gathering had not yet been developed into a science or business, and petty political discussion, consisting largely of personalities, and often descending to grossness, was the staple of the newspaper's work. Soon after the Oregonian was started at Portland the Statesman was started at Oregon City, and as one was Whig and the other Democrat, controversies soon became hot between them. During a long period their columns were filled with bitter articles against each other, and the personalities of journalism were carried to an extreme seldom witnessed elsewhere. Their remote positions from centre of news, and the fact that few things of importance were transpiring in so small a community, were other causes that led the Oregon journals of that period to devote their space so largely to petty contention and personal vituperation. But the "Oregon style" passed away in course of years, with the conditions that produced it.
The Oregonian, it is needless to say, was not a prosperous paper. Its earnings were small and debts accumulated, but means were found to carry it on from year to year. In 1853, Henry L. Pittock, who had just arrived in Oregon, across the plains, was engaged to
415
THE PRESS.
work upon the paper. He was a practical printer, a youth of steady habits and great industry, and upon him gradually fell the duty of publishing the paper. Mr. Dryer gave little attention to details; he wrote editorials when in the humor-usually when he wished to assail or retort on opponents-and yet the paper was a positive force in Portland and throughout Oregon, chiefly because it suited the humor of a considerable number of the people, and there was nothing else to take its place. Mr. Dryer, through its columns and through his activity in the small politics of the day, kept himself continually before the people; he was several times a member of the territorial legislature, where he was as aggressive as in the columns of his newspaper; and later he was a member of the convention that framed the constitution of the State. Meantime, Mr. Pittock, with the industry, perseverance and judgment that have since made him so conspicious as a manager in journalism, was attending to the details and " getting out" the paper week after week. In 1860, Mr. Dryer was chosen one of the electors on the Lincoln presidential ticket. The next year he was appointed minister to the Hawaiian Islands, and as he owed Mr. Pittock quite a sumn for services, the latter took the paper and soon started it upon that career which has since made it so successful and famous in journalismn. Mr. Dryer, after several years of residence abroad, returned to Portland, where lie died in 1879.
Upon undertaking to publish the paper on his own account, Mr. Pittock's first resolve was to start a daily. Two daily papers were already published in Portland-the Times and Advertiser; and each of these appeared to have a better chance for life than the Oregonian. But the patience, industry, application and skill of Mr. Pittock soon decided the contest in his favor. The first number of the Daily Oregonian appeared February 4, 1861. It was a sheet of four pages, with four columns to the page. As the civil war was just then breaking out great efforts were made to get news, and the energy of the Oregonian put it in the lead of its competitors. It was assisted also by its vigorous espousal of the cause of the Union, and people began to look to it not only for the news but for expression of their sentiments upon the great crisis. Simeon Francis, a veteran news- [27]
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HISTORY OF PORTLAND.
paper man from Springfield, Illinois, became editor, and held the place about one year, when he withdrew to accept a position in the armny. He was succeeded by Amory Holbrook, a very able man but an irregular worker, who held the position two years. During 1864 and part of 1865, various persons did editorial work on the paper, among whom John F. Damon, now of Seattle, and Samuel A. Clarke, of Salem, deserve mention. In May, 1865, Harvey W. Scott was engaged as editor, and has ever since held the position, with the exception of the interval from October, 1872 to April, 1877, during which the paper was under the charge of W. Lair Hill.
In 1872, Hon. H. W. Corbett bought an interest in the paper, which he held till 1877, when he sold it to Mr. Scott, who resumed editorial charge. Since that time the paper, under Mr. Pittock as manager and Mr. Scott as editor, has grown with the country, las increased in circulation and has fully established itself at the head of journalism in the Northwest. Of the importance of Portland as a city, of the extent of the business of Portland and of the super- eminent position of the city in the Northwest, there is no surer attestation than the pages of the Oregonian.
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