History of Chittenden County, Vermont, with illustrations and biographical sketches of some of its prominent men and pioneers, Part 55

Author: Rann, W. S. (William S.)
Publication date: 1886
Publisher: Syracuse, N.Y. : D. Mason & Co.
Number of Pages: 1054

USA > Vermont > Chittenden County > History of Chittenden County, Vermont, with illustrations and biographical sketches of some of its prominent men and pioneers > Part 55

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On the IIth of November, 1808, the salaries of the officers of the bank were fixed as follows : Each director was to receive $1.50 a day for all the time actually spent in performing his duties as director ; the president was to receive twenty-five cents for every 100 sheets of bills signed by him, and when necessarily attendant on business at some branch away from his residence, he was to receive $2.50 for every forty miles traveled, in lieu of other emolument. The cashiers were to receive not more than $500 a year. On the same day the treasurer of the State was directed to make the following payments for services during the previous year: To Titus Hutchinson, as president and di- rector, $459; James Tarbox, director, $84; Mark Richards, $79.50; Alex- ander Campbell, $73.50 ; Oliver Chapin, $60; William C. Harrington, $73 .- 50; Noah Chittenden, $III; John Curtis, $25.50; Elias Lyman, $45 ; Daniel Chipman, $82.50 ; John Willard, $75 ; Horatio Seymour, $90.

The anticipations of the friends of this institution were not to be realized. Notwithstanding the efforts of the State government to maintain it by repeated legislation, its affairs were soon found to be greatly embarrassed and the in- stitution insolvent. On the 7th of November, 1809, an act was passed mak- ing its bills a legal tender in payment of land taxes. Within five years from its establishment measures were adopted with a view to the winding up of its concerns. The Westminster branch was removed to Woodstock in 1811, and the Burlington and Middlebury branches followed in 1812. Among the di-

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HISTORY OF CHITTENDEN COUNTY.

rectors of the Burlington branch were Noah Chittenden, John Curtis and Will- iam C. Harrington ; the cashier was Samuel Hickok. By receiving the out- standing bills of this bank for taxes they were about forty years ago all called in and destroyed.

The scheme of conducting banking operations under the immediate super- vision and ownership of the State was thus discovered to be impracticable, and the work of establishing banks was left to individual enterprise. The failure of the State Bank did not seem to discourage the advocates of the institution, for by the year of 1838 there were twenty banks in Vermont, having an au- thorized capital of $2,200,000, of which the sum of $1,304,530 was paid in. Two of these concerns were in Burlington, viz., the Bank of Burlington and the Farmers' and Mechanics' Bank. The demand had been rather more than supplied, and a number of the experiments proved to be failures. In 1844 there were only seventeen banks in operation in the State. Four years later there were twenty-one, three of which, including the Commercial Bank, were in Burlington. In 1860 there were in the State forty-two banks, besides ten savings banks. The act of Congress introducing the national system cre- ated a new era in the financial world. Its advantages were patent to finan- ciers throughout the country. In 1870 there were forty national banks in Vermont, two in Burlington-the total capital in the State being $6,960,- 012.50.

The Bank of Burlington .- After the removal of the Burlington branch of the Vermont State Bank to Woodstock, in 1812, the residents of Chittenden county felt the necessity of an establishment of the kind here, and in 1816, through their agency, application was made to the Legislature for another branch at Burlington; but nothing was accomplished until November 9, 1818, when the Bank of Burlington was incorporated. We have not been able to procure all the information which we wished in regard to this institu- tion. It wielded a most beneficent influence in the entire State for nearly half a century. By the provisions of its charter its legal title was the " President, Directors, and Company of the Bank of Burlington," and its privileges were to continue until January 1, 1834. The capital stock of $150,000 was divided into 3,000 shares. Books for receiving subscriptions to stock were opened at Rutland and Burlington in January, 1819, under the direction of James D. Butler, Robert Temple, and Apollos Austin, at the former place, and Ebene- zer T. Englesby, Guy Catlin, and Luther Loomis, at Burlington. The direct- ors, numbering seven, were all to be residents of the State. Six per centum of the profits were to be paid semi-annually into the treasury of the State. On the 5th of November, 1830, the charter of the bank was extended to January I, 1849, and at two different periods after that the existence of the corpora- tion was protracted by legislative grace-viz., on the 8th of November, 1847, and on the 20th of November, 1861. The first president of the bank was

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TOWN AND CITY OF BURLINGTON.

Cornelius P. Van Ness, who was succeeded in 1820 by Ebenezer T. Englesby. In 1849 Mr. Englesby was succeeded by Philo Doolittle. The last president was Hon. Levi Underwood. The first cashier was Andrew Thompson, who remained in the office thirteen years and was then followed by R. G. Cole. His successor, Charles A. Sumner, was the last incumbent.

In consequence of the establishment by Congress of the national banking system, the Legislature of Vermont, on the 22d of November, 1864, passed an act providing that any bank under State laws which should " become an asso- ciation for carrying on business under the law of the United States should be deemed to have surrendered its charter," after complying with certain require- ments therein specified. It was further provided that every such bank should be continued a body corporate for a term of three years after the time of the surrender, for the purpose of prosecuting or defending suits brought by or against it, and of enabling it to close its concerns and dispose of its property, but not to continue the regular business of banking under the laws of the State. This act, in conjunction with the policy pursued by Congress of taxing the issues of State banks so highly as to effect a considerable diminu- tion in their profits, conduced to the more rapid establishment of national banks. The Daily Times of Burlington, on the 17th of February, 1865, con- tained the following : "The Bank of Burlington, we learn, is now engaged in winding up its affairs preparatory to changing to a national bank. It is un- derstood that the new bank will have a capital of $300,000, to be increased to $500,000." The institution went out of existence on the Ist of January, 1868, by the proclamation of Governor Paul Dillingham, annulling the char- ters of all State banking institutions in Vermont. The last officers were as follows: Directors, Levi Underwood, L. M. Hagar, O. J. Walker, C. M. Spaulding, W. W. Hoyt, E. C. Loomis, O. A. Dodge ; president, Levi Under- wood ; cashier, C. A. Sumner ; teller, Charles A. Converse.

The Bank of Burlington started upon its career on the north side of the square, and shortly afterward occupied a two-story building on the site of the Howard Opera House.

The First National Bank of Burlington .- The Bank of Burlington was re- organized in 1859, and its bills were called in. As we have seen, measures were taken in 1865 to convert it into a national bank. Accordingly, in the early part of 1865, the First National Bank was organized by the election of the same officers that last served the Bank of Burlington. It had a capital of $500,000. It occupied the site of the Howard Opera House for a year or two, and in 1867 erected the building now occupied by the Howard National Bank. It was absorbed by the Merchants' National Bank in 1870.

United States Branch Bank .- In 1830 a branch of the United States Bank was established here, and continued business until the expiration of the char- ter of the parent bank, in 1840. It was situated in the building now occupied

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HISTORY OF CHITTENDEN COUNTY.

by the Burlington Savings Bank. Its officers were Heman Allen, president, and Thomas Hockley, cashier.

The Farmers' and Mechanics' Bank .- This institution was incorporated on the 6th of November, 1834, with a capital stock of $150,000, divided into 3,000 shares. The charter named as commissioners to receive subscriptions William A. Griswold, Archibald W. Hyde, John Peck, Harry Bradley, and George P. Marsh, of Burlington, John Smith, of St. Albans, and Joseph Clark, of Milton. The business of this bank was conducted in the building now occupied by the Burlington Savings Bank. Its several presidents, in order, were John Peck, Frederick Fletcher, and Torrey E. Wales, now judge of the Probate Court. Its cashiers were Thomas Hockley and Charles F. Warner. It wound up its affairs in January, 1868.

The Commercial Bank. - The Commercial Bank was incorporated on the 8th of November, 1847, with a capital stock of $150,000. The commissioners appointed to receive subscriptions to stock were Silas H. Jenison, of Shoreham, Harry Bradley, Asahel Peck, Charles D. Kasson, and Charles Russell, of Bur- lington, Hampden Cutts, of Hartland, Joseph Clark, of Milton, Lawrence Brainerd, of St. Albans, and Erastus Fairbanks, of St. Johnsbury. It contin- ued in business until December 31, 1867, when it closed up, and on the follow- ing day returned its capital stock to the shareholders. The presidents of this bank were Harry Bradley, Dan Lyon, L. E. Chittenden, Carolus Noyes and Samuel Huntington ; cashiers, Martin A. Seymour, Charles P. Hartt and Ver- non P. Noyes. The last teller was Samuel A. Drew. Immediately after the winding up of the affairs of this institution Vernon P. Noyes established a pri- vate bank, and purchased the building and effects of the Commercial Bank. This business terminated by the death of Mr. Noyes in September, 1885. The several cashiers were Robert Wright, David N. Burton, and John E. Lavrell. The banking house is on the north side of the square.

The Burlington Savings Bank. - The oldest banking institution now doing business in Burlington is this savings bank, which was chartered on the 6th of November, 1847, the corporators being John N. Pomeroy, Wyllys Lyman, Henry P. Hickok, Carlos Baxter, Henry Loomis, Dan Lyon, William W. Peck, Sion E. Howard, William H. Wilkins, jr., Thomas H. Canfield, Edward C. Loomis, John H. Peck, Philo Doolittle, Henry Leavenworth and James W. Hickok. The presidents of the corporation have been John N. Pomeroy, Geo. W. Benedict, Henry Loomis, L. B. Englesby, Moses Morse, W. R. Vilas, Na- thaniel Parker, Morillo Noyes, and Henry Loomis, present incumbent. The president of the board of trustees is S. M. Pope. The trustees are S. M. Pope, Henry Loomis, C. F. Ward, W. G. Shaw, John L. Mason, C. P. Smith and Geo. W. Wales. The list of treasurers is as follows : James W. Hickok, A. S. Dewey, William L. Strong, and the present treasurer, C. F. Ward, who began his offi- cial duties in January, 1865, and is the oldest trustee in the bank.

455

TOWN AND CITY OF BURLINGTON.

The deposits of this institution now amount to about $1,500,000 to be dis- tributed among about 4,800 depositors. The business was at first conducted in a building on the west side of Court-House Square, owned then by James W. Hickok. It was removed from the upper story of that building to the ground floor. Thence it was taken to the store of A. S. Dewey, on Church street, and from there to a room over the hardware store of A. G. Strong. The next removal was to the tailor shop of C. F. Ward, now forming a part of the Merchants' National Bank. In 1868 it followed the Farmers' and Mechanics' Bank in the present building, which is the property of the treasurer. The building was erected by the United States government for the Branch Bank in 1830, and contains one of the finest vaults in the State.

The Merchants' National Bank. - This bank is the successor of the Mer- chants' Bank, which was chartered by the State of Vermont on the 10th day of November, 1849, with a capital stock of $150,000. The commissioners ap- pointed to receive subscriptions to stock were the following : Timothy Follett, of Burlington, Stephen S. Keyes, of Highgate, Porter Baxter, of Derby, Eras- tus Fairbanks, of St. Johnsbury, Paris Fletcher, of Bridport, Samuel Adams, of Grand Isle ; and John Bradley, David A. Smalley and William L. Strong, of Burlington. The first directors were Timothy Follett, Eli Chittenden, Albert L. Catlin, Timothy F. Strong, George B. Shaw, David A. Smalley, and Nathan B. Haswell.

The business was started in a building erected by the corporation on the lower part of Water, now Battery, street. In 1857 it was removed to the build- ing now occupied by its successor, the Merchants' National Bank. On the 25th of April, 1865, the State bank was reorganized as a national bank, with a capital of $300,000, which in 1870 was increased by the absorption of the First National Bank to $700,000, and in 1876 reduced to its present capital of $500,- 000. Among the directors of this concern have been such men as Sidney Bar- low, Joseph Clark, J. D. Allen, H. L. Nichols, Lemuel B. Platt, S. M. Pope, William L. Strong and George F. Edmunds. For more than thirty years Henry P. Hickok was president. As a State bank the dividends paid amounted to $180,000, and under the national system they have been more than $900,000. The present organization is as follows : Directors, Edward Lyman, George Mor- ton, Hon. Torrey E. Wales, Charles W. Woodhouse and Lorenzo G. Wood- house. Charles W. Woodhouse is president and L. E. Woodhouse cashier.

The Howard National Bank was chartered on the 16th of June, 1870, with a capital of $200,000, which was increased in the following year to $300,000, the present amount. The first officers were Lawrence Barnes, president, F. M. Van Sicklen, vice-president, C. A. Sumner, cashier; directors, Lawrence Barnes, Obadiah Walker, Cyrus M. Spaulding, Joel H. Gates, F. M. Van Sick- len, Alonzo W. Allen, Edward C. Loomis, Amos Spear and Charles A. Sum- ner. The building occupied by this institution was constructed by the First

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HISTORY OF CHITTENDEN COUNTY.

National Bank in 1867, and is well adapted for the purposes of banking, being fire-proof, neat and commodious, and furnished with spacious vaults lined with walls of railroad iron. The present surplus and profit and loss fund is $54,- 500 ; loans amount to $501,221, and deposits range from $350,000 to $400,- 000. The affairs of the bank are managed with the most consummate care and ability, making the institution one of the most trustworthy in the State. The present officers are : Directors, Lawrence Barnes,1 F. M. Van Sicklen, C. M. Spaulding, Joel H. Gates and Edward Wells; president, Lawrence Barnes ; vice- president, F. M. Van Sicklen ; cashier, Curtis Wells, and assistant cashier, F. H. Fisher.

The Farmers' and Mechanics' Savings Institution and Trust Company, on College street, was chartered by the Legislature on the IIth of November, 1870, with a capital of $100,000, and with power to increase the same to $500,- 000, and to receive moneys on deposit or in trust, at such rate of interest or on such terms as may be agreed upon, the rate of interest to be allowed for de- posits not to exceed the legal rate. The institution is at present officered as. follows : Edward Lyman, president, and C. W. Woodhouse, treasurer.

The Burlington Trust Company was incorporated on the 8th of November, 1882, by the Legislature of the State, the corporators being F. M. Van Sick- len, Edward Wells, M. D. Cook, and B. B. Smalley, of Burlington, and A. C. Spaulding, of Jericho. Of the authorized capital of $50,000, $40,000 is paid in, and the residue will be paid in by February, 1887. The first officers were: President, C. M. Spaulding ; vice-president, B. B. Smalley ; treasurer, Curtis. Wells. According to the terms of its charter this company is authorized to receive and hold moneys and property in trust and on deposit from courts of law or equity, executors, administrators, assignees, guardians, trustees, corpor- ations, and individuals, upon such terms and conditions as may be agreed upon. Upon all individual deposits interest is allowed at the rate of four per cent., payable semi-annually, the interest compounding if not withdrawn. All de- posits not in excess of $1,500 are exempt from taxation to the depositor, the tax being paid directly to the State by the company. As with national banks, the stockholders of this company are liable for twice the amount of their stock. The affairs of the company, although transacted in the Howard National Bank office, are entirely distinct and separate from those of the bank.

The present officers are William Wells, president; B. B. Smalley, vice- president ; H. L. Ward, treasurer; C. M. Spaulding, B. B. Smalley, M. D. Cook, Joel H. Gates, William Wells, Edward Wells, and D. W. Robinson, di- rectors. The executive board elected by the directors consists of William Wells, C. M. Spaulding, and B. B. Smalley. The deposits now in the hands. of this concern amount to $432,294.23. There are about 1, 157 depositors.

1 Since the above was written Mr. Barnes's death has occurred.

J. F. Pesa

En HE ILL.

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TOWN AND CITY OF BURLINGTON.

INSURANCE.

The business of insuring property against losses by fire received little encouragement in Vermont in the first quarter of the present century, and it is not known that there were any companies or permanent agencies in the State previous to 1825. In 1826 the Vermont Fire Insurance Com- pany began to issue policies. The headquarters of the company being at Middlebury, Ira Stewart, of that place, was made first president. The capital stock was $200,000. In 1825 the charter of the Ascutney Fire Insurance Company was granted, its capital being $200,000. The office was placed at Windsor. The Vermont Mutual Insurance Company, with its office at Mont- pelier, was organized and began issuing policies in March, 1828, and by Aug- ust 1, 1838, had issued policies to the amount of $21,408, 196. John Spalding was the president of the company. The year 1838 witnessed what may be termed the beginning of an epidemic of county insurance organizations. Rut- land, Addison, Bennington, Windham, Windsor, and Orange counties all had a separate association for the purpose of conducting the insurance business within their respective limits. The first mention of Chittenden county appears in 1846, when George A. Allen was one of the directors of the Vermont Mu- tual Fire Insurance Company at Middlebury. In 1847 Carlos Baxter suc- ceeded Allen, and was followed for the next few years by William Weston. Several local companies have been organized in Burlington at different times, which were short lived, and never performed business sufficient to deserve par- ticular mention.

General T. S. Peck is at present engaged extensively in the issuing of pol- icies to protect life and property from the losses of destruction. This agency was established in 1869, a few years after Mr. Peck's return from a four years' service in the war for the preservation of the Union. His first office was in the Bank block. The agency was begun in a modest way, but has been con- stantly increasing in proportions, and now fairly rivals any other agency in the State. The office was removed into a room in the rear of the Peck block in 1871, and to the present rooms about two years later. General Peck's suc- cess is owing to his unfailing fairness towards the companies he represents, and also towards those who obtained policies from his office. The aggregate assets of his companies are about $300,000,000.

The agency now conducted by Charles P. Frissell was established in 1846 by Salmon Wires, the pioneer agent of Burlington. His office was over the present drug store of R. B. Stearns & Co. Mr. Wires died in 1866, and Mr. Frissell came from Massachusetts under an arrangement with the companies, and, though not as partner, went in with R. S. Wires, son of the deceased. In 1874 T. F. Griswold and Mr. Frissell, under the firm name of Griswold & Frissell, succeeded R. S. Wires. In 1882 Mr. Frissell assumed entire control of the agency. For a number of years he has occupied his present office over

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HISTORY OF CHITTENDEN COUNTY.

the Howard National Bank. The aggregate assets of his companies are about $200,000,000.

The firm of Whitcomb & Fuller (W. H. S. Whitcomb and E. A. Fuller) was formed in 1874, succeeding a line of firms which was started in 1859, when the agency was established in Burlington. They represent the Equitable Life Insurance Company, which has thus had an agency here for twenty-six years continuously. The present firm assumed a general fire and accident business in 1874, and have kept pace with the agencies representing their com- panies throughout the State. Since 1874 they have paid out more than $2,- 000,000 for losses and claims, from which no litigation has ever resulted.

The Vermont Life Insurance Company was projected when the success of life insurance as a business was fully insured, the past having shown the op- portunities which were offered for the prosecution of a successful issue. The charter was applied for and secured at the fall session of the Vermont Legisla- ture in 1868. The corporators were Torrey E. Wales, Lemuel B. Platt, Samuel Huntington, James A. Shedd, Russell S. Taft, Rodney S. Wires, Na- thaniel Parker, Jo D. Hatch, George F. Edmunds, Omri A. Dodge, F. C. Ken- nedy, and Lawrence Barnes, all prominent citizens of Burlington. The capital stock was $50,000 in shares of twenty-five dollars each, payable in cash. In January, 1871, this was increased to $100,000. Dividends to stockholders were to be at the rate of three per cent. semi-annually. The amount of claims paid by the company has been more than $100,000. The business is confined to localities which possess the smallest proportion of malarial influences, and is quite large in all the eastern States. By this prudence in the selection of ter- ritory its death rate has been very low. The company issues installment bonds, endowment, life, term life, and savings endowment policies.

Life Insurance.1- Life insurance dates back several hundred years. There are life insurance companies in England to-day that are over one hundred and fifty years old, and whose assets are counted by the millions of dollars, that are still doing their work as faithfully and successfully as ever. The history of life insurance in this country goes back to the year 1812. In that year a com- pany was formed known as the " Pennsylvania Company for the Insurance of Lives," which is still in existence, but its business has always been small. In 1818 appeared the " Massachusetts General Hospital Life Insurance Company," which is still in existence with a small business. The first official record of the business of life insurance which was ever made in this country was in 1839. In that year "the New York Life and Trust Insurance Company" reported to the comptroller of the State of New York that it had paid six losses amounting to $6,500 and that it had 694 lives insured. "The Mutual Life Insurance Com- pany of New York " was organized in 1842, and commenced to issue policies in the city of New York in 1843. It was agreed that whenever a certain num-

1 Prepared by C. A. Castle.

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TOWN AND CITY OF BURLINGTON.

ber had made application and paid the first premium, the policies should be issued and should then become binding ; such was the beginning of that colossal company. It never had a dollar of stock. Its growth at first was slow and its methods crude. It borrowed most of its ideas from the English companies and there was little or none of the elaborate and scientific detail which charac- terizes life insurance companies at the present time. In 1850 six new life in- surance companies were organized, making some ten or eleven in all up to that date, all of whom with one exceptionI are still doing business. Among those last mentioned are the National of Montpelier, and the United States Life In- surance Company of New York. From 1850 to 1886, a period of thirty-six years, the growth of life insurance has been something wonderful. There are now, according to the reports of the Spectator, an insurance journal published in New York, forty-three life insurance companies doing a legitimate business, with assets exceeding the enormous sum of five hundred millions of dollars. A still greater amount has already been paid by these companies to their ben- eficiaries, and counting eight hours to the day, which are the usual business hours of these institutions, and then counting three hundred and thirteen work- ing days to the year, they are paying in dividends, death claims and natural endowments over fifty thousand dollars an hour. The policies in force cover about two billions of dollars. The history of life insurance in this country must necessarily be brief. Previous to 1850 it was harder to find a man car- rying a life insurance policy than to find a head of four-leaved clover, and the proportion was about the same. Even as late as 1860 such a thing as a man devoting himself to the business of life insurance was almost unknown. The war and the flush times immediately succeeding it gave a great impetus to life in- surance, and during the decade from 1860 to 1870 the older companies sent out traveling agents, and also established general agencies, several of them with their headquarters in Burlington. These in turn established local agencies both in this county and also throughout their agencies, which sometimes in- cluded not only the whole State, but also other States. On the first day of January, 1869, the Vermont Life Insurance Company of Burlington was or- ganized, with the following officers: Russell S. Taft, president ; Rodney S. Wires, vice-president ; Warren Gibbs, secretary. It started with a capital of $50,000, which was afterwards increased to $100,000. It issued its first policy to James A. Shedd, of Burlington, on the day of its organization. Its growth has been steady and its management conservative. Its present officers are W. H. Hart, president ; C. M. Spaulding, vice-president; C. R. Turrill, sec- retary, and E. W. Bushnell, superintendent[of agencies. The board of medical directors are Doctors A. P. Grinell, L. M. Bingham and John B. Wheeler. The executive committee are Hon. Daniel Roberts, Jo D. Hatch, C. M. Spaulding, J. A. Shedd and Edward Barlow. The board of auditors are F.

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History of Chittenden County, Vermont, with illustrations and biographical sketches of some of its prominent men and pioneers, Part 55

Author: Rann, W. S. (William S.) Publication date: 1886 Publisher: Syracuse, N.Y. : D. Mason & Co. Number of Pages: 1054

Author: Rann, W. S. (William S.)
Publication date: 1886
Publisher: Syracuse, N.Y. : D. Mason & Co.
Number of Pages: 1054