USA > Texas > Harris County > Houston > A thumb-nail history of the city of Houston, Texas, from its founding in 1836 to the year 1912 > Part 6
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Mr. W. H. Bailey, a bright young newspaper man, began the publication of an afternoon paper called the Herald. This was a regular live wire and was fully charged all the time. Mr. Bailey believed in telling the truth all the time irrespective of whom the truth might be about and he did so in every issue of the Herald. No one was too high and prominent to escape criticism and censure if
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THE CITY OF HOUSTON, TEXAS
he deserved them. He played no favorites, but went after wrong-doers wherever discovered. The result was almost continual warfare for the first few months of the Herald's existence, and, what was more to the editor's satisfaction, an immense circulation for the paper. Subscriptions and adver- tisements poured in and the Herald became one of the leading papers in South Texas.
After a red hot existence of eighteen years the Herald was finally sold to Mr. M. E. Foster, who had organized the Houston Chronicle and who bought the plant and good will of the Herald. The Houston Chronicle began publication on Oc- tober 14, 1902, and it is no exaggeration to say that it was a success from its very first issue. Its editor and proprietor, Mr. M. E. Foster, was no novice, having been managing editor of the Hous- ton Post and having had large experience and train- ing. He has made the Chronicle one of the leading State papers and its influence is great both in Houston and throughout the State.
On May 18, 1880, a number of Texas editors as- sembled in the parlor of the Hutchins House and organized the Texas Press association. For four years the association met in Houston and then de- termined to meet each year in a different city. From a mere handful of members at the beginning the association has grown to be one of the largest and most important in the South and its annual meet- ings are looked forward to with pleasurable antici- pation by the members for they are always most profitable and enjoyable.
CHAPTER FIVE.
Houston's First Bank and Banker-The Great Banks of Today-Houston the Financial Center of the State-Houston's Great Trust Companies.
Houston's first bank was actually one year older than Houston itself, having received its charter from the Congress of Coahuila and Texas before Texas became a Republic. It was an ambitious corporation, too, having a capital stock of $1,000,- 000, some of which was actual cash, and its charter made it a bank of issue. Mr. S. M. Williams was its president and Mr. J. W. McMillan its cashier. Among the first acts of the Congress of the Re- public of Texas was a bill for the relief of the in- corporators of this bank, whereby their vested rights were recognized and protected. The institution was not popoular and constant warfare was made on it. It finally received its death blow when the Supreme Court annulled its charter.
Mr. T. W. House, Sr., Mr. W. J. Hutchins, Mr. Cornelius Ennis and others of the early mer- chants conducted banks of their own in connection with their cotton and mercantile business. In 1854 Mr. B. A. Shepherd opened an independent bank, engaging exclusively in the banking business and this was the first bank in Texas and Mr. Shepherd was the first banker. The million dollar bank re- ferred to in the foregoing paragraph had other features than banking, which leaves Mr. Shep-
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THE CITY OF HOUSTON, TEXAS
herd's bank the honor of being the first genuine bank. In 1873 Mr. Hutchins closed out his bank and devoted himself to his wholesale business. Mr. House reversed Mr. Hutchins' process in part, for while he did not close out his cotton and wholesale business, he separated them from his bank and gave the latter more of his attention. When Mr. House died in 1881, his oldest son, T. W. House, Jr., bought the interests of his brothers in the bank and devoted his whole time to its affairs. House's Bank soon became one of the greatest financial institutions in the State. During the great panic of 1907, due to many complications and circum- stances, it was forced to close its doors.
The City Bank of Houston began business No- vember 1, 1870, with a capital stock of $250,000. It did business for fifteen years, but in 1885 was forced to suspend payment and went into the hands of a receiver.
The Houston Savings Bank, organized in 1874, suspended payment and closed its doors in 1886. The public lost very little money by the failure of this bank or by that of the City Bank, which had occurred the year before. The First National Bank was organized in 1866 by Mr. B. A. Shepherd and Mr. T. M. Bagby, the latter being its first presi- dent. On the death of Mr. Bagby, Mr. Shepherd became president and when he died his son-in-law, Mr. A. S. Root, succeeded him. A few years ago Mr. Root died and Mr. O. L. Cochran, another son- in-law of Mr. Shepherd, became and is still presi-
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dent. This bank is one of the strongest institu- tions in the country. Its original capital was $100,- 000. In 1906 this was increased to $500,000. In 1909 the stock was again doubled and in 1912 it was increased to $2,000,000. Its business has also shown a phenomenal growth, having about doubled in three years. September 1, 1909, its deposits were $4,764,967. September 1, 1910, the deposits had grown to $6,421,938. Four months later, January 7, 1911, they were $7,953,096. Two months later, March 7, '1911, they were $8,432,907. On April 18, 1912, the deposits were slightly under $9,000,- 000, or to be exact, $8,973,999.80. The home of this bank is one of the handsomest buildings in the city. It is only eight-stories high, but it has an im- mense floor space, larger than any bank in the South. It has a fine frontage on Main street and runs back for more than half a block on Franklin avenue. In addition to this, it has an ell that ex- tends from the Franklin side far back towards the middle of the block. The entire first, or ground floor is used by the bank while the other seven stories are used as offices. The building is of rein- forced concrete, steel structure and is fire-proof in every way. It has its own water supply, derived from a large artesian well. It also has its own heat- ing and electric light plant. There are three large and rapid elevators and the building is equipped from top to bottom with every device that con- tributes to the comfort and convenience of its ten- ants. The officers of the First National Bank are:
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THE CARTER BUILDING
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THE CITY OF HOUSTON, TEXAS
O. L. Cochran, president; J. T. Scott, first vice president; H. R. Eldridge, second vice president; W. S. Cochran, cashier; W. E. Hertford and F. E. Russell, assistant cashiers.
It was exactly twenty years after the organiza- tion of the First National Bank before another was organized. This was the Commercial National Bank, organized in 1886, with a capital stock of $500,000. This bank did an immense business and had large deposits. It was recently merged with the South Texas National Bank.
The Houston National was the third national bank organized in Houston. It was chartered in 1889, but in 1909 obtained a new charter under the name of the Houston National Exchange Bank. This bank has a most extraordinary record. Its capital stock is only $200,000, while its surplus and undivided profits amount to three-fourths of its capital stock. It has deposits of very nearly four million dollars. The officers of the Houston Na- tional Exchange Bank are: Joseph F. Meyer, president; M. M. Graves, vice president; Henry S. Fox, Jr., active vice president; Joseph W. Hertford, cashier; F. F. Dearing and W. B. Hil- liard, assistant cashiers.
The South Texas National Bank was the fourth national bank organized in Houston. It obtained its charter in 1890. On March 2, 1912, the South Texas National Bank absorbed the Texas Commer- cial National Bank. The new bank thus formed became the South Texas Commercial National
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Bank, with a capital of $1,000,000. Nineteen days after the consolidation the deposits of the new bank were $11,000,000, while the capital and surplus amounted to nearly $2,000,000.
The home of this bank is one of the finest and, architecturally, most beautiful buildings in the South. The front of the building is perfectly plain, but is of the purest marble. There are four col- umns supporting the main pediment, each turned from a solid slab of marble, the shafts of each being twenty-two feet long. The interior of the building is more beautiful than its exterior. Only the finest marble and ornamental bronze were used in the in- terior finish and the result is most pleasing. The high arched ceiling is an attractive feature. Only the very best artists and superior workers were em- ployed in finishing this building and the results ob- tained by them speak volumes for their taste and skill. The following are the officers of the South Texas Commercial Bank: Chairman of the board, Charles Dillingham; president, W. B. Chew; active vice president and cashier, B. D. Harris ; vice presi- dents, James A. Baker, John M. Dorrance, J. E. McAshan, Thornwell Fay and Judge T. J. Free- man. Assistant cashiers, August De Zavalla, P. J. Evershade, Paul G. Taylor. There are twenty- five directors, being the directors of the two con- solidated banks. They are: James A. Baker, F. A. Heitmann, Conrad Bering, O. T. Holt, R. Lee Blaffer, R. S. Lovett, Horace Booth, H. F. Mc- Gregor, Chester H. Bryan, J. E. McAshan, W. B.
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THE CITY OF HOUSTON, TEXAS
Chew, C. H. Markham, James D. Dawson, J. V. Neuhaus, Charles Dillingham, Edwin B. Parker, John M. Dorrance, S. C. Red, Thornwell Fay, Daniel Ripley, Thomas J. Freeman, Cleveland Sewall, B. D. Harris, J. J. Settegast, Jr .
Houston's fifth national bank was the Union National Bank, organized in 1905. This bank represents three original banks. The Union Bank and Trust Company was chartered in 1905. In 1908 it absorbed the Merchants National Bank. When this was done the bank took its present name and was chartered as the Union National Bank with a capital of $1,000,000. This bank is one of the strongest banks in the South and does an immense business. The twelve-story steel, reinforced concrete granite and brick building of this bank is one of the finest and most attractive buildings in the city. There are twelve stories above ground and an im- mense basement, thus making the building prac- tically thirteen stories. The basement and ground floor are used exclusively by the bank, while the other stories are devoted to modern offices. The basement is fitted up as elegantly as other parts of the building and besides the huge vaults, contains private rooms for the patrons of the bank. There are safety vaults and store rooms for the safe keep- ing of bulky valuables.
The building is entirely independent of all out- side utilities, having its own artesian water supply, its own heating and electric light plant and its own chilled air system for use in the summer. There
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are several large elevators in the building, thus making access to every floor an easy thing. In- cluding the ground the building cost almost ex- actly $1,000,000. The officers of the Union Na- tional Bank are: J. S. Rice, president; T. C. Dunn, George Hammen, W. T. Carter, Abe Levy, J. M. Rockwell, Jesse H. Jones and C. G. Pillot, vice presidents; DeWitt C. Dunn, cashier; D. W. Cooley and H. B. Finch, assistant cashiers.
Houston's youngest national bank, the Lumber- mans National, seems to have been something of an absorber and consolidator itself. It was organ- ized and chartered in 1907 with a capital of $400,- 000. When two years old it absorbed the National City Bank and the next year the American National Bank and Trust Company liquidated and turned over its business to the Lumbermans Bank. This bank is one of the strong financial institutions of Houston and of South Texas, and does an immense business. The officers of the Lumbermans Na- tional Bank are: S. F. Carter, president; Guy M. Bryan, active vice president; H. M. Garwood and W. D. Cleveland, vice presidents; Lynn P. Talley, cashier; M. S. Murray and H. M. Wilkens, assist- ant cashiers.
The fact that Houston is the real financial cen- ter of the State is shown by the report of the Treas- ury Department in Washington issued February 20, 1912. In the report the standing of six leading cities is given and Houston occupies first place with
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a wide margin over her nearest competitor, Dallas. The figures for these cities are:
Houston-Loans and discounts, $22,628,110; lawful money reserve, $3,728,112; individual de- posits, $22,425,250.
Dallas-Loans and discounts, $17,221,605; law- ful reserves, $2,021,996; individual deposits, $17,- 556,376.
Fort Worth-Loans and discounts, $12,277,281; legal reserves, $1,277,660; individual deposits, $10,237,269.
San Antonio-Loans and discounts, $9,073,658; lawful reserves, $1,716,011; individual deposits, $9,105,007.
Waco-Loans and discounts, $5,832,276; lawful reserves, $711,567; individual deposits, $5,113,521.
Galveston-Loans and discounts, $3,901,517; lawful reserves, $764,253; individual deposits, $3,- 609,664.
The foregoing pages tell of Houston's financial strength, but they tell only one-half of the story. Banks represent the commercial and business life of a community, their condition giving in concise form the extent and volume of trade in a way that can be understood by all. In the very nature of things, banks, no matter how great and strong, can not add to the physical and material growth of a community except indirectly. Banks prosper by lending money for short periods on commercial pa- per and similar securities. Their collaterals must be such as can be easily turned into cash on short
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notice. Lands, mortgages, vendors lien notes and such things, considered gilt edge securities the world over, are not so considered by banks. The law even goes so far as to prohibit National banks taking land as security for loans.
It is for the purpose of handling just such busi- ness as the banks can not or will not handle, that trust companies are formed. There is an indirect community of interest between the banks and trust companies, but there are no conflicting interests. One represents the financial and trade conditions of the community while the other represents the ma- terial growth, expansion and development of the community. No bank is willing to undertake to do the many things that modern business methods de- mand shall be done. Such things are entirely with- out the province of banks. It is for the purpose of doing these things that trust companies have been formed. The trust companies perform a dual duty. They care for and conserve estates placed in their charge, and they also afford a source from which may be obtained long time loans. Usually these loans are made for the purpose of improving and developing intrinsically valuable property; the property itself being taken as security for payment of the debt. The length of the loan, the rate of in- terest paid by the borrower and the absolute security afforded by the property, held as collateral, make such a transaction a safe and sure investment for the trust company, while the reasonable interest, paid by the borrower and the long time given him
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THE CITY OF HOUSTON, TEXAS
in which to pay back the loan, make the transaction a very advantageous one for the borrower.
The wonderful growth of Houston during the last seven or eight years has led to the formation of trust companies here and Houston now has sev- eral of the strongest in the South.
The oldest trust company in Texas was organized in Houston thirty-seven years ago, in 1875. The history of those dark and stormy days would lead one to think that large financial schemes would have no place in them, and yet the Houston Land and Trust Company was chartered during the darkest days of the city. It was originally chartered as a land and trust company and did only a small and unimportant business for years. In 1889 it was reorganized and took out a new charter which en- abled it to do a regular trust and mortgage busi- ness. It is now one of the most important institu- tions of its kind in the country and does an immense and highly profitable business. Its business is strictly that of a trust company and in no way does it encroach on the business done by banks. The fol- lowing was the condition of this company at the close of business, March 31, 1912:
Capital stock $ 250,000.00
Surplus
340,000.00 Undivided profits 2,980.00
Time certificates of deposit 1,313,364.44
Accrued interest payable
13,063.66
Estate and trust account 104,827.27
Dividend No. 36, payable May 1, 1912.
7,500.00
$2,031,735.37
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The officers are: O. L. Cochran, president; R. E. Paine, vice president; P. B. Timpson, vice presi- dent; W. S. Patton, secretary and treasurer; O. R. Weyrich, assistant secretary.
The Southern Trust Company was organized in 1909 and began business in January, 1910. Its cap- ital stock was $500,000, but this was almost immedi- ately increased to $800,000. The success of this company has been phenomenal. It is only a little over two years old and yet it has earned over half a million dollars and has paid large dividends since its organization. Following is the statement of this company at the close of business April 18, 1912: Capital stock paid in $ 800,000.00
Surplus fund .
400,000.00
Undivided profits, net 168,278.21
Trust funds 6,466.10
Reserved for taxes, 1912 4,500.00
Bills payable and re-discounts 140,000.00
Certificates of deposits
177,300.00
Accounts payable
2,438.28
$1,698,982.59
The officers of the Southern Trust Company are: James L. Autry, president; Travis Holland, vice president; J. W. Powers, Jr., secretary ; Bev- erly W. Ward, assistant secretary; Ernest Carroll, treasurer.
The Texas Trust Company was organized in 1909 with a capital stock of $500,000. It at once established for itself a reputation for soundness and conservatism, which made at once towards its
THE CITY OF HOUSTON, TEXAS 105
success. The company was in active operation for slightly over two years and during that time paid dividends of 10 per cent and accumulated a surplus of very nearly a quarter of a million dollars. On September 1, 1911, the Texas Trust Company con- solidated with the Bankers' Trust Company, thus making the latter one of the greatest trust con- panies in the South.
The Bankers' Trust Company was chartered in 1909 with a capital stock of $500,000, and a paid in surplus of $25,000. The capital stock was soon in- creased to $1,000,000. The volume of business done by this company was very great and its success was phenomenal. September 1, 1911, the Bankers' Trust Company absorbed the Texas Trust Com- pany, at the same time increasing its capital stock to $2,000,000. This company transacts a general trust business and is fully equipped in all its depart- ments to meet the financial requirements of its patrons. It takes charge of real and personal es- tates, and acts as executor, administrator, receiver and trustee.
Following is the statement of this company, issued at the close of business April 18, 1912:
Capital stock $2,000,000.00
Surplus and profits (net)
881,638.23
Reserved for taxes 12,000.00
Demand deposits 44,102.35
Certificates of deposit
723,496.21
Cashier's checks
4,302.00
Trust funds
900,992.46
Re-discounts
12,973.35
Total
.$4,579,504.35
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The officers of the Bankers' Trust Company are: Jesse H. Jones, chairman of the board; J. S. Rice, president; Tom M. Taylor, N. E. Meador, J. M. Rockwell, James A. Baker, A. M. Levy, W. T. Carter, C. G. Pillot and J. W. Link, vice presi- dents; C. M. Malone, secretary ; F. J. Heyne, treas- urer and cashier; Burke Baker, bond officer; Wil- liam Malone, real estate officer; Andrews, Ball & Streetman, counsel.
The American Trust Company is a young affair, being only about a year old. It was organized in 1911 with a capital stock of $500,000. This com- pany has banking privileges and intends taking full advantage of them. Its business at present is both bank and trust business and it bids fair to be one of the strong financial institutions of Houston, both as a bank and as a trust company. Its officers are: J. D. Hefley, president; J. E. Duff, vice president; N. B. Sligh, treasurer.
The Commonwealth Trust Company is Hous- ton's latest trust company. It has just been organ- ized, though it has not yet opened its doors for busi- ness. Its capital stock of $500,000.00 has been over-subscribed. Its charter is one of wide scope and gives it large privileges and an ample field of operation. The charter is that of the First State Bank of Hillsboro, Texas. Mr. W. E. Richards, the president of the present trust company, pur- chased the Hillsboro charter and at once organized The Commonwealth Trust Company. The officers of the company are: W. E. Richards, president;
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THE CITY OF HOUSTON, TEXAS
Exile Burkitt, active vice president; Horace Booth, Geo. W. Riddle, W. R. Allison, Monta J. Moore, W. H. Gill, H. H. Simmons, John H. Foster, John S. Callaway and R. E. Burt, directors.
The Continental Trust Company (without bank- ing privileges) is now in process of organization, here in Houston. This is to be one of the greatest and most powerful trust companies in the country. The capital stock of the company will be $1,000,- 000.00, while there will also be a paid-in surplus of $1,000,000.00 The prospectus of this company gives so clear an idea of the functions of a trust company, and particularly of the objects of the present company, that the following liberal extract is taken from it:
"The Continental Trust Company (without banking privileges) of Houston, Texas, has been organized to assist in supplying the urgent demand for a place of sufficient magnitude and strength to which application may be made for absolutely good first mortgage or vendor's lien loans; where per- sons seeking investments may expect to find good securities in amounts commensurate with their re- spective means available for employment; being a medium where the borrower and investor come to- gether; also where reliable information concerning relative values of property may be obtained with a view of creating closer relations with Eastern and foreign connections to the end of filling a distinct need incident to the upbuilding of a country already
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demonstrated to be resourceful and rapidly increas- ing in wealth.
"Practically every city in Texas is experiencing a large demand for gilt-edge first mortgage and vendor's lien loans, and trust companies in Texas, which are only a few in number, are unable to sup- ply but a small percentage of such demand. * The powers which the company will exercise are those of the soundest institutions of this character, omitting banking functions, and especially the re- ceipt of deposits subject to check. It will act chief- ly as intermediary between the investor and the bor- rower, between capital and those who need capital to develop the resources of Texas. Its profits will be derived from expert service which it will offer the investor, together with the assurance of its large financial responsibility in placing and safeguard- ing funds; and to those needing capital, by furnish- ing a market for securities and rendering assist- ance necessary to place them in such form as will make them marketable."
Mr. S. F. Carter, president of the Lumbermans National Bank; Hon. Jonathan Lane, Mr. John H. Thompson, vice president and general manager of the Guarantee Life Insurance Company of Houston; Mr. James F. Sadler, Jr., and other busi- ness associates of these gentlemen are prominent in organizing this company, so it is quite evident that its success is assured.
CHAPTER SIX.
Early Church Services-Organization of the First Churches-History of Church Building in Hous- ton-Houston Today a City of Churches.
When the Allens laid out Houston they set aside the quarter of a block on the northwest corner of Capitol and Main "for church purposes." The gift was to no denomination or sect, but was to all. A year or two later there was a small building erected on one of the lots and all denominations had the use of it. After the State House was built re- ligious services were held in one of its halls.
While there is a legend that the first religious service ever held in Houston was under the spread- ing branches of a tree that grew on Market Square, in 1837, the fact remains that the first authentic evangelical service was that which occurred in 1836. The fact is a matter of record that Rev. Mr. Mor- rell, an itinerant Baptist preacher, who came to Texas before San Jacinto, preached in Houston in 1836.
It is rather singular that with all the "hard cases" that were in Houston in the early days, and the consequent necessity for taking precautions for con- trolling them, the first vigilance committee formed in Houston should have been composed entirely of preachers and that the object of the committee should have been to guard the public against being imposed on by fraudulent preachers. Such was the case, however, and the "Preachers' Vigilance Com-
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