USA > Tennessee > Davidson County > Nashville > History of Nashville, Tenn. > Part 32
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The Safe Deposit Trust and Banking Company was organized in 1883, with a capital stock of $80,000. The officers since its organization have been: President; John J. Houston; Secretary, J. Hill Eakin; and As- sistant Secretary, H. S. Bassett. It is located under the Capital City Bank, and has one of the largest and most thoroughly fire-proof vaults in the country, and rents compartments to the general public. A gen- eral banking business is transacted, and interest is paid on three months' deposits. This company acts as guardian, administrator, trustee, etc., and also as treasurer of various loan and building associations.
The Nashville Savings Company was established in 1863, by Thomas S. Marr, and it has always occupied its present office at the south-west corner of College and Union Streets. Mr. Marr is the principal owner of the bank, and carries on a general banking business, paying interest on deposits, and also deals largely in stocks and bonds.
The Nashville Savings Bank had its origin in 1863, in a brokerage business established by the Sax Brothers. In 1886 they changed it into a banking house under the above name. This bank has connections with all of the important banking establishments in the world, and occu- pies the old City Bank building on College Street. The Sax Brothers are natives of Prussia, and by their financial ability have built up a prominent and successful business. Julius Sax is President; and Max Sax, Cashier.
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BANKS AND BUILDING ASSOCIATIONS.
The Capital City Bank was organized March 16, 1889, under the laws of Tennessee providing for the organization of banks, with a view of confining its operations strictly to banking business. The charter mem- bers were: E. W. Cole, J. B. Hancock, W. A. Benson, P. P. Pickard, W. I. Cherry, W. I. Edwards, and S. A. Champion. The first meeting of these members was held March 20, 1889, J. H. Bruce being added to their number before officers were elected. The election of officers re- sulted as follows: President. S. A. Champion; Cashier, P. P. Pickard; Assistant Cashier, R. W. Miller; Chairman of the Executive Board, E. W. Cole. The capital stock of the company was originally fixed at $500,000, to be paid for in full as taken. The sum of $250,000 was or- dered to be sold, the balance remaining in the treasury subject to the or- der of the bank. The bank was opened for business May 1, 1889, and soon afterward the $250,000 ordered to be sold was taken and paid for. Since the original organization of the bank the Board of Directors has been increased until now it consists of twenty members as follows: E. W. Cole, S. A. Champion, P. P. Pickard, O. Ewing, J. H. Bruce, W. I. Edwards, F. T. Cummins, W. I. Cherry, J. B. Hancock, J. Cooney, P. A. Shelton, W. A. Benson, R. L. C. White, W. T. Hardison, J. L. Dismukes, J. Y. Crawford, and Edgar Cherry, all of Nashville; H. E. Palmer, Murfreesboro; H. H. Barr, Dresden; T. J. Edwards, Union City. On the first of January, 1890, the undivided profits amounted to $13,443.62. At the January meeting, 1890, $50,000 of the treasury stock was placed upon the market at $1.10.
The Merchants' Bank was organized under the State law in October, 1885, and opened for business November I, of the same year. J. N. Brooks was the President; John Woodard, Vice-president; and James McLaughlin, Cashier. The President and Cashier still remain in their respective positions. The capital remains as at first, $150,000. The ob- ject of organizing under the State law was to enable the bank to lend money on real estate mortgages, and to buy real estate notes, which Na- tional banks cannot do. The business of the bank has been very profit- able, and is constantly increasing.
The Bank of Commerce was organized January 1, 1888, with a capital of $60,000. The President of the bank was J. N. Brooks; and the Cashier, Charles B. Duncan, and there were eight other stockholders. This bank is a close corporation. It transacts a general banking busi- ness. Both Mr. Brooks and Mr. Duncan have had large experience in business and have been uniformly successful, and they are conducting a very successful business.
The Mechanics' Savings Bank was organized January 4, 1886, with a
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capital stock of $50,000. This institution transacts a regular banking business and receives deposits from fifty cents upward, upon which it pays interest if they are left in three months. The company also acts in the capacity of administrator, executor, guardian, and trustee. When first organized J. H. Yarbrough was President; William Porter, Vice-presi- dent; and C. W. Peden, Cashier. Mr. Yarbrough was succeeded by M. T. Bryan in 1888, and Mr. Peden was succeeded as Cashier by W. Durr in 1888. Mr. Durr resigned in December, 1889, and was succeed- ed by Charles Sykes, who is Cashier at the present time. The com- pany is popular with both large and small depositors. The present offi- cers are: Lewis T. Baxter, President; William Porter, Vice-president ; Charles Sykes, Cashier.
The Nashville Trust Company was organized September 3, 1889, with a capital of $250,000. It transacts business in the new Vanderbilt Law building on Cherry Street. Charles Nelson is the President; Joseph H. Thompson, Vice-president; and Herman Justi, General Manager. The company acts as administrator, assignee, guardian, receiver, trustee, etc., and rents boxes of various sizes to the general public in a burglar-proof and fire-proof vault.
The City Savings Bank was permanently organized May 5, 1890, with the following Board of Directors and officers: W. S. Settle, President; A. S. Williams, Vice-president; Wilbur Durr, Cashier; Edgar Cherry, W. P. Rankin, C. F. Sharpe, W. S. Duckworth, H. N. McTyeire, W. J. Allen, G. W. Davis, M. S. Cockrill, N. G. Rives, R. T. Morrison, W. R. Bryan, H. R. Coleman, G. W. W. Sweeney, R. L. Bell, Rich- ard Plater, William M. Butler, T. W. Crutcher, and E. R. Vernon. The bank commenced business June 1, 1890, with a capital of $100,000.
Nashville ranks first in the State as a banking center, as the following figures show: Banking capital in Nashville, $4,115,000; Memphis, $3,- 500,000; Chattanooga, $1,130,225; Knoxville, $845,000.
Building Associations, or as they are often aptly termed "People's Banks" because of their adaptation to persons of the smallest means, abound in Nashville, and are in a very prosperous condition.
The first building associations in Nashville were organized under the act of 1854 of the General Assembly of the State of Tennessee, but the war of secession coming on soon after interrupted their operations, and what the war failed to do the State Supreme Court in the case of C. E. H. Martin vs. the Nashville Building Association, reported in 2 Cold- well 418, completed by holding that their methods were illegal and a vio- lation of the usury laws.
Building associations then, as now, were in the habit of employing all the
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money paid into the association as stock payments, interest, etc., in paying off shares before maturity, which payment is often called and usually un- derstood as loaning money by the association. This lending of money is usually done by offering the sums on hand at stated periods, say once a month, to the members at a sort of auction. The one bidding the highest amount for the preference or priority of the loan gets it, and the sum so bid is called a premium, and is in addition to the six per cent. interest the borrower is required to pay on the loan thus effected. It was this premium that the Supreme Court found to be illegal and characterized as a device to evade the usury laws. The effect of this decision not only deterred others from being organized, but forced all then in existence into liquidation.
No further attempt was made to organize building associations until the general act of incorporation passed by the State Legislature in 1875. This act specifically provided for the incorporation of building associa- tions and expressly authorized the taking of a premium in the loan of their funds.
Under the act of 1875 the first building association to organize in Nash- ville, if not in the State, was the Rock City. It was chartered in May of that year, and had a very successful career for several years and until the dishonesty of its Secretary caused a temporary embarrassment, when it went into liquidation and is now being wound up without serious loss to any of its members.
The South Nashville Building and Mechanics' Association was the next to organize under the act of 1875, and then the West End Building and Savings Association, which was soon followed by the North Nash- ville Building and Savings Association, and it by the Nashville and Edgefield Building and Savings Association; the Security Building and Savings Association; the Peoples' Building and Savings Association ; the Cumberland Building and Savings Association ; the Tennessee Build- ing and Savings Association ; the Home Building and Loan Association ; the Equitable Building and Loan Association ; and the Farmers' Savings, and Building and Loan Association.
These several associations have issued and outstanding in the aggregate more than nine thousand shares and hold mortgage securities for loans made by them of about $800,000. This large sum represents in the main the earnings of the wage-worker, and at least ninety per cent. of the whole sum has been employed by the members in the purchase of homes, and in building, or in other improvements in and about the City of Nashville.
In 1885 the usury question was for the second time brought to the
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courts in the case of Margaret Patterson vs. Working-men's Building and Loan Association, reported in 14 Lea 677 of Tennessee State Supreme Court reports. In this case the Supreme Court, in an elaborate opinion by Judge Cooper, reviewed the whole building association law in Tennes- see and other States, and held the exaction of a premium to be legal and valid. This decision, which throughout is commendatory of building associations and their general plan of doing business, gave an impetus to them and inspired a confidence in them that has largely increased their number and volume of business.
The Farmers' Savings, and Building and Loan Association was organ- ized November 22, 1889, and commenced business January 15, 1890. This is the only National association in Nashville, and hence a brief statement of its business plans is presented in this volume. The general plan is virtually the same as that upon which local organizations are based, except that the money of investors in one locality is advanced to borrowers in another. Originally the association confined its loans to improved, productive farm lands, but early in 1890 it decided to loan money on improved city and town property. The difference between the method of deciding who shall be entitled to borrow the money on hand to be loaned is that in local associations it is assigned to the high- est bidder, while generally in the National associations each applicant awaits his turns and loans are made in the order in which applications are received at the home office. The field of operations of this associa- tion covers all of the Southern States, and it already has agencies estab- lished in most of them. The authorized capital of this association is $20,000,000, and each share is $100. The officers of this association are: Lewis T. Baxter, President; J. H. Bruce, Vice-president; W. K. P. Wilson, Secretary; Frank Porterfield, Treasurer; James C. Brad- ford, Attorney; and W. H. Raymond, Manager of Agencies.
CHAPTER XIII.
TRANSPORTATION.
Roads, Barges, and Keel-boats-Early Hack Lines-Steam-boat Company-First Notice of a Steam-boat-Steam-boat "General Jackson"- Nashville Bridge Company-Steam-boats Built at Nashville-Steam-boating, Its Golden Era-Navigability of the Cumberland- Cumberland River Improvement Convention-Turnpikes-Bridges-Nashville and Chatta- nooga Railroad-Louisville and Nashville Railroad-Street Railroads.
W HEN the first settlers arrived on the Cumberland River there were no roads in the country, nor other means of communication such as are known to civilized communities. The character and condition of the roads as they are found in any country are an indication and an index of the state of civilization to which that country has arrived. Cheap com- munication and easy transportation are essential to the full enjoyment of nature's bounties and the possession of such manufactured articles as are required to satisfy the many wants of man in a civilized and prosperous state of life. It is therefore interesting and valuable to note the condi- tion of roads, river transportation, and railroads in any country, or in any part of any country, at such periods in history as may be necessary to show the progress made from time to time.
Previous to the introduction of flat-boats and keel-boats on the Cum- berland River travel and transportation were by means of horses and va- rious kinds of vehicles. Goods were either packed on horses' backs or hauled in wagons from Baltimore and Philadelphia and other Eastern cit- ies to Nashville from 1790 to nearly 1810, and to some extent up to that time, a period of twenty years from the settlement of the place. The wag- ons were drawn by six horses, and carried usually about four tons, the price for hauling being $10 per hundred pounds. Cotton was sometimes car- ried to Baltimore for $5 per hundred pounds. Better roads were neces- sary to cheaper prices, and hence every effort that could be reasonably made was made to improve the roads. The Government rendered assist- ance in cutting roads through the wilderness. On November 22, 1806, Hon. Gideon Granger, Postmaster-general of the United States, adver- tised in the Impartial Review for the opening, grading, and improving of the road laid out under direction of the Secretary of War, between Nash- ville and Grindstone Ford, on Pierre River, in the Mississippi Territory. The road was to be divided into three parts, and separate proposals re- ceived for each part: from Nashville to the Tennessee River, one hun- dred and twelve miles; from the Tennessee River to Loonachitta Creek
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(a branch of the Big Black River), one hundred and thirteen miles; and from Loonachitta Creek to Grindstone Ford, one hundred and fifty-five miles. The road was to be cleared of all trees, logs, and brush to a width of twelve feet, and made passable for a wagon. All streams not over forty feet wide were to be bridged, and the banks of streams more than forty feet wide were to be shelved or "sloped" down, so that they might be passable for a wagon. ' The work was to be completed by October I, 1807. R. J. Meigs and Thomas Wright were the judges as to whether the work was done according to contract.
In June, 1807, Oliver Johnson was one of the enterprising advertisers. He was keeping the lower ferry near Nashville, and had an excellent sta- ble, plenty of forage, and a good blue-grass and clover lot. In order to induce travel by the lower ferry, he said that the road from the forks at Jeremiah Hinton's to Nashville was shorter than that to the upper ferry, as was shown by the certificate of Samuel Weakley, Esq., Surveyor of Davidson County, who had surveyed both roads. According to this sur- vey, the road by the upper ferry was three miles one hundred and forty- one and a half poles, while that by the lower ferry was only three miles forty-three and three-fourths poles.
It was about this time that barges began to come up the Cumberland River. According to the best authority obtainable, James Stewart and James Gordon brought the first barge up the river from New Orleans, laden with a general assortment of groceries, including sugar and coffee. George Poyzer, in October, 1807, advertised "the fast-sailing boat ' Mary,' " as taking on board freight for down the river, then lying below the upper ferry. Stump, Rapier & Turner also ran a barge to New Or- leans. These boats continued to be the only reliance of merchants for river transportation for several years.
In October, 1814, Richard Rapier & Co. advertised that " the new and stanch-built barge 'General Jackson,' ninety tons burden, would sail for Natchez and New Orleans about the Ist or 15th of the following De- cember; " and Hynes & Fletcher advertised the barge "Ætna," eighty tons, as sailing for New Orleans about the same time as the "General Jackson."
On May 10, 1815, the barge "General Jackson " had just arrived from New Orleans, with a large cargo of brown sugar and rum; also rice and fresh acid, which were offered for sale at wholesale and retail. It thus appears that it required from December 15 to May 15 to make the trip from Nashville to New Orleans and return, a period of five months. When the " Richard H. Barry" made the trip one way in sixty days, whereas previously it had taken ninety days, there was great rejoicing.
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The arrival of a barge was an event of no small moment in those days, which the whole town turned out to witness.
Long before steam-boating was an accomplished fact on the Cumber- land River there was considerable interest taken in the subject. This in- terest began to manifest itself in 1807, toward the latter part of the year ; and a few facts which presented themselves to the minds of the people at that time, related here, will serve to show upon what that interest was based. On August 17, 1807, Robert Fulton's steam-boat left New York for a trip up the Hudson River, between 1 and 2 o'clock P.M. At 10 in the evening she was opposite Tappan, a distance of twenty miles; and in the morning at 6 o'clock she was opposite Poughkeepsie, thus having made the distance (eighty-five miles) in sixteen hours. This voyage was made solely by the force of steam, and in opposition to both wind and tide. The velocity of the boat was therefore on that occasion a trifle over five miles per hour, and it was estimated that it could make a prog- ress of two miles per hour against the current of the Mississippi River. It could therefore be seen that steam navigation would be a very great acquisition to the commerce of the Western rivers.
While waiting for steam-boats to arrive on the Cumberland it is neces- sary to devote a little time and space to other means of travel. On June 1, 1815, James Stewart established a hack line from Nashville to Robert- son's Springs and to Sander's Springs. His hack left Nashville every Monday morning at I o'clock, arriving at Walton's at I P.M., and at Robertson's Springs at 3 P.M. Returning it left Robertson's Springs at I A.M. Tuesday, and arrived at Nashville at 2 P.M. the same day. It left Nashville on Fridays at 9 A.M., and arrived at Sander's Springs at I P.M. the same day. Returning it left Sander's Springs on Satur- day at 9 A.M., and arrived at Nashville at I P.M. the same day. The rates were for each passenger to Robertson's Springs, $2, and the same to return. To Sander's Springs the rate was $1.50 each way. The hack-office was at McKiernan & Stout's shop, on Water Street, where those wishing to engage passage were obliged to apply, register their names, and pay in advance for a seat, which was then assigned to each one thus paying in advance. Should more register than the hack could accommodate, those registering first had the preference of seats, and those remaining had the preference for the next week.
In April, 1816, the question of organizing a steam-boat company be- came one of pressing interest. An advertisement was published in the Nashville Whig on the 30th of that month, earnestly requesting all those who were in favor of organizing such a company in Nashville to meet at the court-house at 4 P.M. on May I, to consider on what basis such a
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company should be established, and the best way of effecting an object. which would be in every way of so great an advantage to the country. On the 7th of that month a short article appeared in the Whig as follows: "It must be truly gratifying to every person to witness the rage for in- ternal improvements which at present pervades the citizens of the West. Steam-boat companies are already formed or forming in every section west of the Alleghanies. In less than one year at least a dozen steam- boats have been put in successful operation or are now ready to run. The spirit of Tennessee is up, and we hope in a few months to see the banks of the Cumberland lined with these powerful and useful engines."
A town meeting was held May 1, 1816, of which Thomas Claiborne, Esq., was made Chairman; and Alfred Balch, Secretary. The follow- ing resolutions were adopted :
"I. That this meeting is deeply impressed with both the necessity and the advantages of building one or more steam-boats to run from Nashville to New Orleans, and from Nashville to Pittsburg.
" 2. That a committee of five persons-to wit, Jenkins Whiteside, Wilkins Tannehill, General William Carroll, Major Christopher Stump, and Captain Alpha Kingsley-hold a correspondence with such compa- nies or persons as they may deem proper to ascertain the cost of one or more steam-boats to be built at Nashville.
" 3. That said committee draw up articles of association for the purpose aforesaid, to be submitted to the consideration of a public meeting to be held at the court-house in Nashville on Saturday preceding the third Monday of May, instant," or in other words on Saturday, May 16. It is not believed that the proceedings of this proposed public meeting were published in the papers of that day, as no publication of the kind could be found.
October 15, 1816, James Jackson and Richard Rapier formed a co- partnership and gave notice that the barge "General Jackson" would leave Nashville as early in December as the state of the water would per- mit. Young & Green had several large keel-boats suitable for the New Orleans trade which they wished either to sell or freight on accommodat- ing terms. In December the announcement was made that the barge " Walk Water" would leave for New Orleans on January 10, 1817. It is plain that the barges and keel-boats then in use were in the habit of making but one round trip each year between Nashville and New Or- leans, leaving here in December, usually, and returning in May or June. J. & R. Woods announced that the barge "Mary" would leave Nash- ville on December 10, 1817; and on the same day "the elegant and fast- sailing schooner-rigged barge 'Dolphin,' 105 tons burden," sailed for
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New Orleans, Nathaniel A. McNairy & James Stewart, proprietors. The rates for landing at the wharf are indicated by the announcement that W. Barrow had purchased of Colonel Robert Weakley one-half of the upper ferry, fixed up the landing, etc., and the rates would be for each boat loading or unloading, $1; for each barge, $1; and a reasonable time would be allowed for loading or unloading.
The first notice of a steam-boat having any connection with Nashville was published in the Nashville Whig March 28, 1818, as follows: "The steam-boat 'General Jackson' is owned by General Carroll and Mr. Whiting, of this place, and is thus handsomely noticed in the Louisville (Ky.) Herald of the 13th inst .: 'We are much gratified in announcing the arrival at this place on Sunday last [the 8th ] of the steam-boat " Gen- eral Jackson," Captain Hopkins, six days from Pittsburg, bound for New Orleans. Were we to judge from outward appearance, we should pro- nounce her one of the best boats on the Ohio River. She is intended as a regular trader between Nashville and New Orleans,'" etc.
The steam-boat arrived at New Orleans on the 28th of May, and on returning up the rivers came to Nashville, but the exact date of her ar- rival here cannot be learned; however, as the Nashville Whig, on the 8th of August, of that year, stated that there was already one steam-boat in operation as a regular trader between Nashville and New Orleans, and another building at Nashville which would be running by the follow- ing winter, and there was also one building at Pittsburg for the trade be- tween Nashville and New Orleans, which would commence running in the following spring-that is, as there was one steam-boat in the regular trade previous to August 8, the first steam-boat to arrive here must have been the "General Jackson," and the time somewhere near the begin- ning of July .*
The steam-boat company which was building the second boat men- tioned by the Whig was organized in April previous. On the 25th of that month there was held a meeting of this company at 4 P.M. for the transaction of important business. All who felt an interest in the pros- perity of this country, and especially in that of the town, were much gratified at the organization of this company. On August 3, 1818, Thomas J. Reed, Treasurer of this company, called on each stockholder to pay $180. On June 9, 1819, M. Norvell, Treasurer, called on each stockholder for a payment of $200 to be paid on July 5, and on August
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