History of northern Wisconsin, containing an account of its settlement, growth, development, and resources; an extensive sketch of its counties, cities, towns and villages, their improvements, industries, manufactories; biographical sketches, portraits of prominent men and early settlers; views of county seats, etc., Part 145

Author: Western historical co., Chicago, pub
Publication date: 1881
Publisher: Chicago, Western historical company
Number of Pages: 1052

USA > Wisconsin > History of northern Wisconsin, containing an account of its settlement, growth, development, and resources; an extensive sketch of its counties, cities, towns and villages, their improvements, industries, manufactories; biographical sketches, portraits of prominent men and early settlers; views of county seats, etc. > Part 145

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BANKS AND BANKING.

The Batavian Bank-Is the oldest existing banking institution of the city. It was organized in November, 1861, now over twenty years ago, under the State banking law of Wisconsin, by Mr. G. Van Steenwyk, then State Bank Comptroller, who became its presi- dent, and has ever since been continued in the same office. Mr. E. E. Bentley has been an employe of the bank for upward of fifteen years, during the last twelve years as its cashier, and having served in every eapac- ity, has great experience in the details as well as in the general management of the business of the bank. The bank has, during all these eventful years of varying

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HISTORY OF NORTHERN WISCONSIN.

prosperity and disaster, weathered all financial storms unharmed, and invariably enjoyed a large share of the business patronage of the city and surrounding coun- try. It justly attributes its success to careful admin- istration, combining conservative management with as great liberality to its customers as sound business prin- ciples do admit. Its large and prosperous business is doubtless the tribute which an appreciative community pays to its fidelity to sound principles. During the past years, it has more than once stood a bulwark be- tween the safety of the community and commercial disaster, always recognizing that it owes a higher duty to its patrons and the community than to its stock- holders. Its principal owners have from the organiza- tion been its managers, giving their personal attention to its affairs. Trained for the business, with years of experience, the bank stands by their efforts to-day with unblemished record and in the enjoyment of extraor- dinary prosperity. It has a capital of $50,000 and a surplus of $10,000, which the managers stand ready to increase, if at any time the business interests of the city, in their judgment, demand it. Its deposits are ranging between $400,000 and $500,000. Prospering as it does, it hopes confidently, following its honorable and straightforward course, to continue in the enjoy- ment of the confidence experienced during so many years, as one of the leading financial institutions of the Northwest, having been recognized as such for many years, not only in this State and country, but also in Europe, where it has extensive and valuable connec- tions.

The La Crosse National Bank .- Was established and began business January 3, 1877, with a paid-up capital of $100,000, and is regarded as one of the re- sponsible monetary corporations in the State. The bank pays no interest on deposits, deeming this policy preferable to the declaration of much larger dividends resulting from an increase of deposits by the payment of interest thereon, as it renders the bank much stronger, and absolutely safe in case of panic. Less hazard and less profits is the motto of the directors ; security to depositors their aim. The bank has now about $20,000 in surplus and undivided profits, and is doing a prosperous and increasing business. The pres- ent officers are : G. C. Hixon, president ; G. R. Mon- tagne, vice president ; S. S. Barton, cashier; G. C. Hixon, B. B. Healy, G. R. Montague, George Edwards, Charles Michel, John Pamferm and S. S. Burton, di- rectors-all being residents of La Crosse, not borrowers of money, and representing a capital estimated at $1,000,000.

Holley & Borreson .- The banking house of Holley & Borreson, established July, 1879, is composed of John M. Holley and Emil N. Borreson. Besides tran- sacting a general banking business, the house effects first class fire insurance, and sells passage tickets to and from all parts of Europe, in which latter depart- ment they have already built up one of the most flourishing and reliable agencies in the Northwest. Both members of the firm are in the prime and vigor of life, and by energy, prudence and sterling integrity, are establishing such a business and reputation as entitle them to a prominent place among the sound fi- nancial houses of the city.

RAILROADS.

The Chicago, Milwaukee & St. Paul Railroad .- The Legislature of Wisconsin, while the present flourishing State was yet a Territory, early took cognizance of the inestimable value of railroad facilities, and suggested measures which have since crystallized into corpora- tions. The present corporation was chartered April 2, 1852, for the construction of a road from Milwaukee to La Crosse. Timothy Burns, S. T. Smith and B. Healy, of La Crosse, and others, commissioners. Di- rect communication between the lakes and the Missis- sippi was sought at an early period in the history of Western railway undertakings, but the project existed in the fertile brains of men without capital, and it was not until "after many days " that its complete fruition was realized.

During the year in which the corporation was char- tered, a meeting of the stockholders was convened at La Crosse, at which the company was organized, and Byron Kilbourn elected president. Early in the ensu- ing Spring, the work of surveying the line of road was commenced, starting at Chestnut street, in the city of Milwaukee. The road was generally regarded, both at home and abroad, as the most important venture in the State. Its direction from Milwaukee to La Crosse was esteemed by surveyors as peculiarly eligible, and as the future grand trunk line of the West, and when its completion was reached, with tracks diverging from the main road and traversing different parts of the best sections of the State, the conclusion seemed irre- sistible that the business would become immense. With this promise in view, little time was lost in com- pleting preparations for work, but every influence was employed to insure the early completion of the road.

During the year 1853, the survey to Kilbourn City was completed, and, late in 1854, the grading of the road to Germantown, its junction with the Fond du Lac Railway, was finished, during which year the Mil- waukee & La Crosse was consolidated with the Milwau- kee, Fond du Lac & Green Bay Road, an organization chartered in 1853. The work upon the road completed was of the heaviest character, costing an average of $20,000 per mile, with deep cuts, and grading in some places thirty-five feet to the mile. Another incident which rendered the work costly was the nature of the ground, the entire eighteen miles being through dense timber with a sub-soil of hard pan, a composition of fine gravel blended with blue clay, which, in most cases, was proof against plowing and blasting, and had to be loosened by manual labor. In fact, in many of the sections its removal was attended with more labor than the removal of solid rock, as will be realized when the statement that a cubic foot of the solid pan weighed 130 pounds.

Up to December, 1854, 8600,000 had been expended upon the road, raised from cash subscriptions, city bonds and farm mortgages. At the time, two-thirds of the grading from the junction to Horicon had also been completed, and four miles of track from the depot in the Second Ward, Milwaukee, laid.

The Winter of 1854-1855 was passed in the labors available at that season of the year, and the work was

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HISTORY OF LA CROSSE COUNTY.

pushed with all possible expedition. With the Spring, the force of its various departments was increased as necessity demanded, and a most gratifying progress was made throughout the working season. By August 1, 1855, a section of track twenty-five miles in length had been laid, and a large number of men were employed to prepare the gradings for track to Hartford, thirty-four miles west of Milwaukee. At the same time, the grad- ing between Noyes' Corners and Horicon was progress- ing rapidly, and proposals were advertised for the con- struction of the road from the former point to Newport on the Wisconsin River, but eighty miles from La Crosse. The prospects of the company, as will be ap- parent from these citations, were most brilliant, and those to be benefited by the improvement took courage in the outlook. This feeling was further augmented when, carly in September, 1855, the first train on the La Crosse & Milwaukee road started from the latter city and proceeded on an excursion to Schilesingerville, a station twenty-six miles west of the Cream City.

At this point, it would seem proper to recapitulate the work accomplished, as also what the corporation was destined to accomplish. Further west, beyond Schlesingerville is Hartford, and thence passing through a country rich in mineral and agricultural resources, Horicon is reached, where trains from Fond du Lac, from Stevens Point, Berlin and Waupun connect. Pushing westward again, the railroad reaches Beaver Dam and Fox Lake, and stretching over Portage Prairie, halts at Portage City, thence toward the great river of the West, debouching at La Crosse. During the remainder of the year, work was pushed with sur- prising energy, more indeed than at that period was usually manifested in the progress of similar enterprises. Its Board of Managers was composed of prominent, influential and energetie business men, who were deter- mined that the road should stand second to none in the country, and in their efforts they were ably seconded by W. R. Sill, long a resident of La Crosse, a gentleman of practical experience and unlimited enterprise, to whom the corporation is greatly indebted for the manner in which his important line of duties was fulfilled.

On September 12, 1855, the company ran an excur- sion train to Hartford, thirty-four miles from Milwau- kee, bringing the road to a part of the route whence it subsequently drew large amounts of revenue from the well-developed farming country adjacent, as also from the iron regions contiguous thereto. The advent of the road into the villages mentioned was at once felt, at both at those points and in Milwaukee. It afforded producers facilities for the shipment of their grains and stock. of which but a comparatively brief period before they had scarcely ventured to dream, and their employ- ment of these advantages was in no degree diminished by the knowledge that to their helping hands and the aid by them furnished in its incipiency the railroad was indebted for its success.

The Winter of 1855-56 witnessed its completion to Horicon, as also the survey of the road to La Crosse. The business had begun to increase after the first train left Milwaukee, in August, the carnings up to January 1, 1856, amounting to §32,134.18, and the estimated receipts for that year, to $400,000.

In December, 1856, the directors submitted a de- tailed report of the cost, condition and resources of the road which went very fully into the operations of the company for the year then closing. The road was then running to Fox Lake, but completed to Portage, a dis- tance of ninety-five miles from Milwaukee, or nearly half way to the Mississippi River. Contracts for the building of the road from Portage to La Crosse, it was contemplated, would be executed in January next en- suing, and the line completed in eighteen months there- after. The results arrived at by the circular, it may be stated briefly, that the company, when its divisions were completed entire, would own upward of 400 miles of track, affording ample business to pay good dividends, even if built in the usual way by stock and debt, but which, by the sale of lands granted by the State, would eventually cost the stockholders nothing, or at worst 333 per cent., and paying 20 per cent. divi- dends on par.

Early in 1857, the surveys of the western division of the road, extending from Portage to La Crosse, were sufficiently advanced to justify putting that line. under contract upon favorable terms, with the under- standing that the same should be completed by October 1, 1858. The same year, the cars began running from Milwaukee to New Lisbon, one day's travel from La Crosse ; the contract for work on the line to Tomah was executed and labors commenced, after the comple- tion of which the route to the Mississippi was regarded as comparatively casy. But this was not accomplished until the undertaking had been subjected to difficulties and embarrassments invariably the attendant concomi- tant of enterprises of value and importance. The affairs, it was claimed, had been mismanaged, much money sacrificed in usurions loans and sales of stocks as collaterals, etc., and other sins of commission and omission been endured, which had retarded the build- ing of the road, affected the public confidence, and en- tailed incalculable though not permanent injury.

Early in October, 1858, the road was completed to La Crosse, the formal opening occurring on the 14th of that month, and being attended by guests from all parts of the country, who were received and enter- tained by the military, fire and civic associations, after which the trip was continued to St. Paul by steamers.

Selah Chamberlain, into whose hands the road passed as lessee, September 27, 1857, continued to ope- rate it as such until 1860, when he surrendered control to Bronson & Sulter, the trustees of the second mort- gage bondholders. At that time, an order had been made in the United States District Court, appointing Hans Crocker, receiver of the division from Portage to La Crosse ; he was subsequently appointed to a similar capacity on the Eastern Division, taking possession of the entire road, June 11, 1860. He remained in charge for three years, when the Western Division was trans- ferred to the Milwaukee & St. Paul, a corporation or- ganized May 5, 1863, by Isaac Seymour, Horace Galpin, David H. Hughes, William P. Gould and George Smith, of New York, and Ashael Finch and William H. White, of Milwaukee.

In 1865, the route from La Crosse to Winona was surveyed by H. I. Bliss, at the instance of citizens of the latter city. In 1867, the Winona cut-off was built

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HISTORY OF NORTHERN WISCONSIN.

by the Chicago & Northwestern, and used by the Chi- cago, Milwaukee & St. Paul Companies until 1872, when the latter built the line through Minnesota, hence to St. Paul, and has since utilized that branch in con- junction with their line to Portage, Milwaukee and Chicago.

The Southern Minnesota Division .- Those convers- ant with the facts aver that there is no enterprise or interest at present existent to which La Crosse owes so muehl of its prosperity, both past and present, as the Southern Minnesota Railroad. It is this which enables merchants to supply the rich country through which the road passes, making La Crosse its business town and capital. The road is essentially a La Crosse en- terprise, the plan of its building having originated with Col. T. B. Stoddard, a pioneer citizen, and first Mayor of the city. He intended La Crosse should be the eastern terminus, the depot located in the southern part of the city, with a bridge crossing directly to the Minnesota shore from Isle La Plume, the western terminus to be at some point on the Missouri River, in Dakota. This route was deemed feasible and valuable, and the projectors of the enterprise secured not only the encouragement, but also the co-operation of all to whom the plans were submitted.

As a result of the efforts thus briefly cited the Leg- islative Assembly of the Territory of Minnesota adopted an act providing for the incorporation of the Root River Valley & Minnesota Railroad Company, bearing date March 2, 1855. Edward Thompson, Samuel McPhail, James Smith, Edward Bell, Ole Knudson and others were named as corporators, and clothed with such privileges and immunities as belong to similar prerogatives.

The same act provided for the election of officers when $50,000 should have been subscribed to the stock of the corporation, and two per cent. paid thereon ; for the purpose of complying with this provision, the incorporators convened on July 4 following, when the charter was accepted, and subscription books opened.

In 1867, the road reached Rushford, thirty miles from Grand Crossing ; and, in 1868, Lanesboro became the temporary terminus. During these years, the traffie of the road was, of course, confined to the coun- try immediately tributary to Root River; but, with every foot of rail, the expansive power of the road increased fourfold, and the efforts to secure capital to push the road further west were amply successful.

In this connection, it should be stated that La Crosse contributed $50,000 toward building the road, at a time when it was creeping with the feeble tread of infaney up the narrow valley of Root River.

During the Winter of 1869-70, the gap between Lanesboro and Ramsay was in part graded and pre- pared for iron, which was immediately laid ; and, in the Fall of the latter year, the track was in running order from Grand Crossing to Wells, a distance of 1473 miles.

Later, it was completed to Winnebago City ; but, as years advanced, financial and other troubles crowded upon the company with the usual results. The work of extending the road westward was suspended, and came to an abrupt termination ; the stock depreciated in value ; foreclosure suits were instituted and prose-

cuted ; a Receiver was appointed, and its outlook was anything but promising. Fortunately for La Crosse, however, it finally fell into the hands of careful and honest men, and they managed it with an ability rarely witnessed in like cases. Its revenues increased; its stock appreciated in value, and its stability became un- doubted.

The Dubuque Division-Was purchased from the Chicago, Clinton, Dubuque & Minnesota corporation in February, 1881, and has since been operated by the St. Paul Company. The road was commenced in October, 1870, and grew out of a desire on the part of Dubuque to connect that section with points in Minne- sota, as far north as St. Paul. The necessity of this medium of communication was apparent to all, though it was not until discriminations made by the Illinois Central against Dubuque became apparent, that a decision was reached. It resulted in the creation of a company whose object was the building of a road along the west bank of the Mississippi to Minnesota, with a branch extending south, and to be known as the Dubuque, Bellevue & Mississippi road, having its terminus at Chicago.

On October 4, 1870, ground for the former road was broken at Eagle Point near Dubuque, and in the follow- ing Spring operations on the Dubuque and Mississippi route began. Some time after, arrangements were concluded with the Chicago, Burlington & Quincy road, and the corporate name of Dubuque & Mississippi was changed to Chicago, Clinton & Dubuque, with a capital of $1,500,000, and the Dubuque & Minnesota to the Clinton, Dubuque & Minnesota, with a nominal capital of $70,000,000.

In the Fall of 1871, the roads were consolidated ; in 1873, it was purchased under foreclosure proceedings by the bondholders, re-organized as the Chicago, Clin- ton, Dubuque & Minnesota Railroad, and completed the same year to Clinton and La Crescent with a branch up Turkey River to Elport.

It was operated by this organization until February, 1881, when, as stated, it was disposed of to the Mil- waukee & St. Paul.

Chicago & North- Western .- The Territorial Legisla- ture of 1848 chartered the " Madison & Beloit Railroad Company," with authority to build a railroad from Beloit to Madison only. In 1850, by an act of the Legislature, the company was authorized to extend the road to the Wisconsin River and to La Crosse, and to a point on the Mississippi River near St. Paul, as well as from Janesville to Fond du Lac. Its name was changed by legislative authority to the " Rock River Valley Union Railroad Company." In 1851, the line from Janesville not being pushed as the people expected, the Legislature of Illinois chartered the " Illinois & Wisconsin Railroad Company," with authority to con- solidate with any railroad in Wisconsin. In 1855, an act of the Wisconsin Legislature consolidated the Illi- nois and Wisconsin Companies with the Rock River Valley Union Railroad Company, and the new organ- ization took the name of the " Chicago, St. Paul & Fond du Lac Railroad Company." In 1854, and pre- vious to the consolidation, the company had failed and passed into the hands of the bondholders, who foreclosed and took stock for their bonds. The old managemeut

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HISTORY OF LA CROSSE COUNTY.

by A. Hyatt Smith and John B. Macy was superseded, and William B. Ogden was made President. Chicago was deeply interested in reaching the Upper Mississippi region, then being peopled rapidly, by a line of railroad to run through Madison to St. Paul, in Minnesota. Its favorite road was started from Chicago on the wide (six feet) gauge. This was changed to the usual (four feet eight and one-half inches) width, and the work was vigorously pushed, reaching Janesville in 1855. The partially-graded line on a direct route from Janesville to Madison was abandoned. In 1852, a new charter was obtained, and the "Beloit & Madison Railroad Company " was organized, to build a road from Beloit via Janesville to Madison. A subsequent amendment to this charter left out Janesville, and the Beloit branch was pushed through to Madison, reaching that city in 1864.

The "Galena & Chicago Union Railroad Company" had built a branch of the Galena line from Belvidere to Beloit previous to 1854. In that year it leased the Beloit & Madison road, and from 1856 operated it in connection with other roads which they controlled. The consolidation of the Galena & Chicago Union and the Chicago, St. Paul & Fond du Lac Companies was effected and approved by legislative enactment in 1855, and a new organization called the "Chicago & North- Western Railway Company " took their place.

The " Baraboo Air Line Railroad Company." was in- corporated in 1870, to build a road from Madison, Columbus or Waterloo via Baraboo to La Crosse, or any point on the Mississippi River. It organized in the in- terest of the Chicago & North Western, with which com- pany it consolidated, and the work of building a con- necting line between Madison and Winona Junction was vigorously pushed forward. Lodi was reached in 1870, Baraboo in 1871, and Winona Junction in 1874. The ridges between Elroy and Sparta were tunneled at a great expense and with much difficulty. In 1874, the company reported an expenditure for its three tunnels of $476,743.32, and for the 129 1-10 miles between Madison and Winona Junction of $5,342,169.96, and a large expenditure yet to be made on it. In 1867. the Chicago & Northwestern Company bought of D. N. Bar- ney & Co. their interest in the Winona & St. Peter Railway, a line being built westerly from Winona, in Minnesota, and of which 105 miles had been built. It also bought of the same parties their interest in the La Crosse, Trempealean & Prescott Railway, a line being built from Winona Junction, in La Crosse County, to Winona, Minn. The latter line was put in operation in 1870, and is twenty-nine miles long. With the com- pletion of the Madison branch to Winona Junction in 1874, it had in operation a line from Chicago, via Mad- ison and Winona to Lake Kampeska, Minn., a distance of 623 miles. The " Green Bay & Minnesota Railroad" built a line from Onalaska, a station on the Chicago & Northwestern road, seven miles north of La Crosse, to the city of La Crosse in 1876, and the Chicago & North- western road acquired the right to use that track, thus connecting its road with the chief city of Wisconsin on the Mississippi River. The first train of the North- western Railway ran into the city of La Crosse over this extension on the first day of April, 1876. Albert Keep, of Chicago, is president of the Chicago & North-

western Company, and Marvin Hughitt, a gentleman of great railroad experience, is general manager.

Green Bay & Minnesota Railroad .- The line of road operated by this company extends from Fort Howard to the Mississippi River, opposite Winona, Minn. This line is 216 miles in length, and was built through a sparsely settled and heavily timbered section of the State. It began under most discouraging circumstances, yet was pushed through by the energy of a few men at Green Bay and along its line. It was originally char- tered in 1866, as the " Green Bay & Lake Pepin Rail- road Company," to build a road from the mouth of the Fox River, near Green Bay, to the Mississippi River, opposite Winona. But little was done except the making of preliminary surveys in 1870.

During 1870-71, forty miles were constructed and put in operation ; in 1872, 114 miles were graded, the track laid, and the river, opposite Winona, was reached, sixty two miles further, in 1873. In 1876, it acquired the right to use the track between Winona and Ona- laska, in La Crosse County, known as the " Winona Cut-off," and belonging to the Chicago & Northwestern Railway Company, and built a track from Onalaska to La Crosse a distance of seven miles, thereby connect- ing their road with the chief city of Wisconsin on the Mississippi River. The city of La Crosse aided in this extension by subscribing $75,000, and giving its corpo- ration bonds for that amount. A change in the name of the corporation is contemplated, to take place at the next election of officers, on the 1st of September, 1881, when the corporation will become the "Green Bay, Winona & St. Paul Railroad Company.

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Author: Western historical co., Chicago, pub Publication date: 1881 Publisher: Chicago, Western historical company Number of Pages: 1052

Author: Western historical co., Chicago, pub
Publication date: 1881
Publisher: Chicago, Western historical company
Number of Pages: 1052