Delaware County, Ohio - Chapter 8: Banks and Banking, 1908

Chapter 8: Banks and Banking

The citizens of Delaware County have been mi >st fortunate in having the banking business of the community in the hands of men who have proven themselves not only honorable, but capable and conservative financiers. They have safely piloted the banks of this county through all the panics and financial storms which have periodically swept over the country, so that the history of banking in Delaware G unty has yet to record its first failure. In making this statement, we except, of course, the first attempt at banking which from the following account of its brief career, seem-, at this late date like a joke, while it illustrates the loose business methods of those early times. X' ' nne but the founders of this bank suffered by its untimely collapse, and their anguish. probably was largely mental.

The first bank in Delaware was organized about 1S1 7, and was called the Bank of Delaware. It was a bank of issue. William Little was the principal stockholder; Moses Bvxhe. Sr., was president, and Leonard H. Cowles was cashier. Mr. Cowles, who was a son-inlaw of Moses Byxbe. Sr., was one of the earliest resident lawyers of Delaware, a graduate of Yale and a classmate of John C. Calhoun. The bank was opened in a building which stood on the northeast corner of Sandusky and William Streets, where the transfer station of the Columbus. Delaware & Marion Railway now is.

After the bank had been in business a fewdays. Mr. Little concluded to examine its condition and assets. He went to the bank and asked the cashier what his success was, and receiving a favorable answer, asked the cashier if he was loaning any money. "Oh, ves !" said the cashier, "Lots of it." Mr. LJttle then requested to see the notes. "Oh!" replied the cashier, "I didn't take any notes; I just charged the loans up on the books." Mr. Little, becoming suspicious that the institution was being run rather loosely, stepped into the back room, where he found the bills of the bank piled up on a table. He gathered them all up, wrapped them in a paper, put the bundle under his arm, and going into the front room, said to the cashier. "You may lock the door; this bank is broke." We commend that method of winding up the affairs of a bank without the vexatious delays of a resort to receivers and courts.

One of the bills iff the bank, in some miraculous way, weathered the storms of pioneer days, and was found under the floor of the old Court House when it was torn down. It is now in the possession of Hon. John D. Van Deman, and through his courtesy we are able to show the accompanying photographic reproduction of this most interesting relic.

The Delaware National Bank. The following history of this bank, including the banks that preceded it. is given substantially as it was written by Mr. Sidney Moore, shortly before his death. The necessarv data has been added to make the chronicle complete to the present time. On February 14, 1845. tne General Assembly passed an Act entitled, "An Act to Incorporate the State Bank of Ohio and other Banking Companies." Under the provisions of this Act, a Board of Bank Commissioners, consisting of Hon. Gustavus Swan and others, met on March 18th, and organized a Board of Control, electing Mr. Swan as president, and Joseph Olds as secretary. On June 14. 1845. thirty-three persons organized the Delaware County branch of the State Bank oi Ohio, with a capital stock of $100,000. At subsequent meetings of the Board of Control, to and including June 19, 1845. applications to establish branch banks at seven cities and t> wns were bled. Among those making application, the one from Delaware was accepted by the Board of Control, and the Delaware County Branch of the State Bank of Ohio commenced business on October 12, 1845. At a meeting of the stockholders, Hon. Hosea Williams, William Little, B. Powers. W. D. Heim and C. Howard were elected directors Judge Williams was elected president, and B. Powers, cashier. Sidney Mm ire. Jr., was appointed teller and bookkeeper. Judge Williams was president of the bank until the expiration of its charter in 1865. Mr. Powers served as director and cashier until 1855, when he resigned as cashier, and was succeeded by Sidney Moore, who filled the position until the expiration of the charter.

The Delaware County National Bank was organized under the Act of Congress, entitled, "An Act to Provide a National Currency," etc.. which was approved June 3. 1864. Articles of association for organizing this bank were signed January <>, 18(15, and an election of directors was held on the 10th of the same month. Hon. Hosea Williams, B. Powers. W. 1). Heim, 11. G. Andrews and Sidney Moore were elected. Judge Williams became president, and Sidney Moore was appointed cashier. March 1, [865, Hon. Hugh McCullough, comptroller of the currency, issued his Certificate of Authority to commence the business of banding, and on March 8th; the business of the old bank was transferred and assigned to the new organization. The charter -ranted at this time expired January 7, 1885, and was then renewed or extended for twenty years. The original Board of Directors served until 18(17. when Mr. Andrew^ resigned, and John R. Milliard was appointed in his place. The board as thus (.instituted continued until January 9, 1872, when John Wolfley succeeded Mr. Hilliard. No further change occurred in the personnel of the board until February 18, 1876, when Chauncy Hills was appointed to the vacancy caused by the death of Judge Williams on February 12th. On July 28, 1876, Hon. T. C. Jones became a director in place of B. Powers, resigned. On June 13, 1880, the same board was elected, except that V. T. Hills succeeded John Wolfley as a director. This board served until 1883. From that time until 1885, Messrs. C. Hills, T. C. Jones, V. T. Hills, Sidney Moore and Rev. John W. White composed the Board of Directors. Mr. White resigned in 1886, and W. Little took his place. No further change was made in the membership until the death of Hon. T. C. Jones, August 13, 1892. A. H. Jones was elected to the vacancy August 22, 1892, and no other change occurred in the board until September. 1900. when W. Little resigned. At this time E. I. Pollock was appointed cashier of the bank. In 1901, Messrs. C. Hills, V. T. Hills, A. H. Tones, Sidney Moore and H. J. McCullough were elected as directors. Mr. C. Hills died February 8, 1901, and on the nth of March following, L. L. Denison was appointed in his stead. The death of Mr. McCullough. June 2j, 1903, made the next change in the board, and E. I. Pollock was appointed as his successor, on August 17th. The Board of Directors as thus constituted was reelected January 12, 1904. The charter of this bank expired on January 6, 1905. and at that time it went into liquidation.

The Delaware National Bank began business on January 7, 1905. The application for a charter for this bank was made November 7, 1904, and was signed by Sidney Moore, V. T. Hills, L. L. Denison, A. H. Jones and E. I. Pollock. The charter was dated December 7. 1904. and an election was held on the 10th of the following month, at which time the number of directors was increased from five to seven, and the following board was elected: Sidney Moore. V. T. Hills, L. L. Denison, E. I. Pollock, Lewis Slack. T. J. Griffin and J. L. Anderson. The board continued without change until the death of Mr.

Moore on May 27, 1907. the vacancy thus created being filled by T. M. Thompson, who was elected on June 10. 1907. The present officers of the bank are: V. T. Hills, president; L. L. Denison, vice-president, and E. I. Pol- It ick, cashier.

The bank occupies a fine two-story building at 34 North Sandusky Street. This lot was deeded to the bank on February 13, 1868, by John R. Milliard, the consideration being $3,250. On the 17th of the following May. the president and cashier were appointed a ci immittee to make all arrangements for the erection of a building suitable for the business. In 1886, the building was remodeled, including the erection of a new front, and at that time was entirely refurnished. In 1905. the building was again remodeled, a new addition built to the rear of the building, and the old vault replaced with one thoroughly up-to-date in every respect. When this bank opened in 1905. it made a new departure, in starting a savings department. The following statement of the affairs of this institution dated February 29, 1908, may be of interest:

The following is the list of officers and their terms of service: Presidents, Hon. Hosea Williams, January 13, 1865, until his death, February 12, 1876: William D. Heim. February 14. 1876, until his death. January 8 [883; Sidney Moore, January 8. 1883. until his death. May 27. 1907. He was succeeded by V. T. Hills, who is now president. Vicepresidents, Chauncy Hills, January 9, 1877, to February 8, 1901 ; V. T. Hills, January 13, 1892, until his election as president on June 10, 1907: L. L. Denison, who now holds the office, became vice-president on last named date. Cashiers, Sidney Moore. January 13, 1865. to January 9, 1883; William Little, January 8, 1883. to September 1, 1900, when he was succeeded by the present cashier, E. I. Pollock.

The First National Bank. While this is not the oldest bank in Delaware, it was the first national bank established in this city under the "Act of Congress to Provide a National Currency, etc." The present institution is built, as it were, upon the foundation of The Bank of Delaware, which was organized August 3, 1857. under the provisions of the law fi ir incorporating State banks. The original stockholders were: Hon. H. Williams, B. Powers, P. D. Hillyer, Sidney Moore, Jr., C.

A. Powers and W. E. Moore. These men. with the exception of W. E. Moore, constituted the Board of Directors. On August 10, 1857, Mr. Hillyer was elected president and C. A. Powers, cashier. The bank opened for business in what is now the Hotel Donavin block on North Sandusky Street. At that time the first floor was reached by a short flight of steps from the sidewalk. The application for the charter of the First National Bank was signed by seventeen persons. The charter was granted on February 2T,, 1864. Hon. Hosea Williams,

B. Powers. H. G. Andrews, Isaac Day and Sidney Moore, Jr., composed the first Board of Directors. On January 16, 1864. the First National Bank took over the business of the Bank of Delaware, and on January 18th, B. Powers was elected president and W. E. Moore, cashier. J. E. Gould became cashier nil February 15, 1876, and on January 8. 1884, he was succeeded by G. W. Powers. B. Powers resigned as president on February 16, 1880, and C. B. Paul was elected to fill the vacancy. Mr. Paul continued to serve as president until his death. January 11. 1901. and on January 17th. Hon. J. D. Van Deman. who is now president, was elected to the office. The other officers of the bank at the present time are: M. Miller, vice-president; G. W. Powers, cashier; R. B. Powers, assistant cashier. The present -Board of Directors is composed of the following gentlemen: Hon. J. D. Van Deman, M. Miller, G. W. Powers, H. W. Jewell. VV. M. Miller and L. W. Battenfield. Of the seventeen men who applied for the original charter of this hank, only three are now living - V. T. Hills. M. Miller and W. E. Moore.

The lot at 26 North Sandusky Street, on which the bank is now located, was purchased in 1865 for $1,700, and the building was erected in that year. The bank began business in their new building on January I, 1866. The building was remodeled in 1883, and plans have been made for the erection of an addition to the rear of the building this year, and a large vault embodying the latest improvements will also be built at the same time.

Assets

This bank has been justly distinguished for its conservative management. It has never parsed its dividend, and in all the financial panics which have disturbed the country it has never failed to meet, on demand, all claims up n it. Depositors have felt that their money was as safe in the keeping of this bank a-- it would lie in the vaults of the government.

[867, as a result of the efforts of Henry A. Welch, a co-partnership was formed fur conducting a banking business in Delaware, under the name of the Deposit Banking Company. The following men were members of the company : H. W. Pumphrey, William G. Williams. H. M. Carper, Hon. John D. Van Deman, E. R. Thompson, William Warren, Sr., Archibald Lybrand, John Brundige, S. P. Shur, J. J. Shur and Henry A. Welch. The bank opened for business in December. 1S69. The business was continued as a co-partnership until May 14, 1890. when it was incorporated under the State Banking Law. The following are the names of the incorporators: S. P. Shur, Prof. W. G. Williams. H. A. Welch, R. G. Lybrand and Samuel Lybrand. At the first election after the incorporation, the following officers were elected: S. P. Shur. president; H. A. Welch, vice-president; N. P. Ferguson, cashier; R. R. Welch, assistant cashier. The following named gentlemen have filled the various offices of the bank down to the present time: Presidents. H. W. Pumphrey, John Mendenhall. Archibald Lybrand and S. P. Shur, who now fills the office. Cashiers, H. A. Welch until 1896; X. P. Ferguson, Fred T. Jones, and from 1898 to April 1, 1908, R. M. Avery was cashier. The latter was succeeded by A. S. Conklin. H. W. Jones is the present assistant cashier. The present board of Directors comprises the following gentlemen : S. P. Shur, president ; Christian Riddle, vice-president; R. M. Avery, cashier; R. G. Lybrand, E. J. Healy, W. M. Heseltine and A. S. Conklin. Since its incorporation, the bank has been paying interest on time deposits. The bank has a capital, $50,000; surplus and undivided profits, $37,300; deposits, $414.0 o; cash and due from banks, $138,700; loans. $316,400; Delaware County and City bonds, $32,858.

The Delaware Savings Bank Company which is the oldest savings bank in the county. is patterned after The Fremont Savings Hank. in which President Hayes was largely interested. He recommended something of the kind for his native city, and with this in view, the following gentlemen. Chauncy Hills. H. J.

Axd Representative Citizens

The bank opened for business on July 27, 1891. with the following directors and officers: C. Hills, H. ]. McCullough, John Powell, B. W. Brown, F. P. Hills, H. M. Perkins. J. H, Grove, Charles Brundige and R. K. Willis. H. M. Perkins, president; B. W. Brown, vicepresident ; C. O. Little, cashier. A new field seemed to have been opened up. and the bank immdiately started on a prosperous career. The opportunity to make large or small cleposits that could be withdrawn at any time, was immediately taken advantage of by a great number of Delaware County's thrifty people. Many of the thousands of accounts which have been opened with the bank are in the names of children, some of whom, today, have reached the age when they can realize what foresight their parents displayed years ago.

This bank has paid to its depositors over $130,000 in interest since its organization, and its deposits have steadily grown, until now they are larger than the deposits of any bank in the county. The present officers and directors of the bank are: Dr. A. J. Lyon, presilent ; Prof. C. B. Austin, vice-president ; F. P. Hills, cashier since January 1. 1892; W. H. Bodurtha, assistant cashier. Besides the president, vice-president and cashier, the following men are members of the Board of Directors: Charles Brundige. Hon. B. F. Freshwater, Colonel J. Al. Crawford, \Y. Shawaker, T. C. Jones and J. E. McCullough. The following is the statement of the bank's assets and liabilities on February 29, 1908:

The Farmers Bank. Sunbury, Ohio. This bank was organized in October. 1S72, with a capital of $50,000. The original stockholders were E. Kimball, John Hall, Alanson Knox, George Armstrong, George Grist, E. R. Thompson, O. D. Hough and B. Moore. The first officers were : Elias Kimball, president : W. A. Thompson, cashier. The directors were Elias Kimball, E. R. Thompson. Alanson Knox, O. D. Hough and B. Moore. Mr. Kimball died soon after the organization of the bank, and was succeeded in the presidency by Mr. Moore. In 1875, Mr. O. H. Kimball became cashier. We have been unable to secure a connected history of the bank since the last named date, or a statement of its financial condition for publication. The following gentlemen are the present officers : John Landon, president ; J. J. Stark, vice-president. These gentlemen, with C. W. Parton and G. J. Burr, are the directors. Owen A. Kimball is cashier.

The Bank of Ashley was established in 1884, and is owned by the private banking firm of Sperry & Wornstaff. It has resources of $150,000. Both members of the firm are men of wealth. Mr. Sperry devotes his entire time to the banking business, while Mr. Wornstaff's time is occupied in looking after his large farming interests.

The Farmers Savings Bank Company, of Ashley, is a State bank, incorporated August 26, 1904. It was opened for business on February 9, 1905. It has a capital stock of $25,000, and on August 7. 1907, its depositwere $128,943.56. The following gentlemen are the officers of the bank : President. W. Slack; vice-president, T. J. Cole: cashier. F. E. Whipple; assistant cashier. F. ]. Rilev. Directors: W. Slack, I. F. Wilt. II. I',. Blair, T. 1. Cole. B. F. McMaster, Isaac Clark. R. D. Mc- Gonigle.

The Bank of Galena Company, of Galena, was incorporated in January, 1902. Its capital stock is $50,000, and its cash capital paid in is $25,000. The following are the directors and officers of the hank: William D. Miller, president; John II. Dustin, vice-president; J. J. Adams, cashier; George W. Bright,

The Ostrander Banking Company, of Ostrander, Ohio, was organized in March, 1903, under the hanking laws of Ohio. W. H. Carr is president, and William Harris is cashier. The directors are W. H. Carr, J. C. Maugans, Marion Kirkland, H. W. Rittenhouse and J. I. Adamson. The resources of the bank amount to $141,000. Since its organization, the bank has had a healthy growth and gives substantial promise for the future.

Building and Loan Association. As far as the records show, the first association incorporated in Ohio was "The Delaware Building Association" of Delaware. The articles of incorporation were filed with the secretary of the State on February 20, 1867. There were few such institutions in the State at that time, and these were modeled on the German plan. Building and Loan Associations soon became very popular in the cities of Ohio. The original idea was to furnish cheap money, on long time, to poor people, thus enabling them to purchase or to build homes, or to pay off indebtedness on homes already acquired. Hundreds of people in Delaware have reason to bless these beneficent institutions. Nothing ever gave a greater stimulus to the building of homes in our city than the old Delaware Building Association.

The plan on which the association was based has been brought to the attention of Hon. J. D. Van Deman by a citizen of Dayton. He studied the plan, and with the aid of Mr. C. E. Hills, who was always a leader in all public enterprises, a Building Association in Delaware was started. A charter was obtained, as already started, and Messrs. Van Deman and Hills canvassed the city fur stock subscriptions. It is said that during this time. there was more figuring in interest and weekly payments, and calculating when the association would probably pay out than was ever seen before; the fences about town were covered with figures. The full amount of stock was soon subscribed, ami the association opened its doors with Hon. John D. Van Deman as president, and John J. Glover, now in the Department nf Justice, at Washington, as secretary.

The money was put up at auction, and loaned to the bidder offering to pay the highest premium above the rate of interest. The association was successful from the beginning, and being on the terminal plan, it paid out in a little over seven years. Many a family had a home through this institution who would always have been homeless were it not for its methods.

When the association expired by limitation. all the stockholders met in Templer Hall; the president cancelled all the mortgages and delivered them to the stockholders, who thus had their homes free from incumbrance. Other associations followed, but the first was the most successful of them all.

There are now two building and loan associations in Delaware, but their plan of organization and operation are quite different from the one we have just noted. Money is no longer put up at auction, nor are shares sold on the terminal plan. Money is loaned on mortgages in the regular way, at a stated rate of interest, the mortgagor having the privilege of paying any part or all of the principal at any time.

The People's Building and Loan Company was incorporated in October. 1885. by J. Hippie, James M. Jones. John Donahue. Hon. F. M. Marriott 'and H. L. Baker. At first its capital stock was $800,000; this was later increased to $1,000,000, and when this was all subscribed, the "stock in 1905, was increased to $2,000,000. When the company started, it did business like any other building and loan association of those days, charging a legal rate of interest, and in- addition, by putting the money up at auction, it secured a premium, which amounted to extra interest. A good many years ago this plan was abandoned, and a fixed rate of interest (seven per cent.) was charged. In November, 1899. the rate of interest was fixed at six per cent., and this rate has remained unchanged to the present time.

year by the stockholders for a term of three years. This board manages the affairs of the company. In October, [907, there were 1,644 members, and their depi sits amounted to $345,000. The value of loans outstanding was $354,971.09. The reserve fund for contingent losses was $12,179.85.

The present officers of the company are: C. Riddle, president; R. G. Lybrand, vicepresident; H. C. Clippinger, secretary; E. F. Young, assistant secretary, and R. M. Avery, treasurer. The following gentlemen constitute the present Board of Directors : C. Riddle. R. G. Lybrand. W. Kurrley, R. J. Pumphrey, J. G. Hoffman, James Ousey, J. H. Cunningham, I. E. Campbell and T. J. Griffin.

The company loans only on first mortgages on city and farm lands in Delaware County. Settlements are made semi-annually, and all sums paid in excess of the interest due are applied on the principal. The careful management of this company is indicated by the fact that it owns no real estate.

The Fidelity Building Association and Loan Company was incorporated January iy. 18S7, by H. J. McCullough, H. A. Welch. J. D. Van Deman and William T.

Gessner. At that time the capital stock was $400,000, and "it June 9, [890, this was increased to $1,000,000. The present Board of Directors is composed of the following gentlemen: D. H. Battenfield, D*r. W. P. Caldwell, Harry L. Clark. Robert J. Cox, M. Miller, Eugene P. Nash, F. J. R. Pfiffner, V. D. Stayman and John D. Van Deman. The officers are: D. H. Battenfield, president: V. D. Stayman, vice-president; Frank S. Watkins, secretary; R. B. Powers, treasurer. So careful has the management of this company been in making loans that at the present time it holds no real estate. This company is the only one in Delaware that loans money to build. The purposes of the company are well stated in the following paragraph, which we quote from its prospectus :

"It is the purpose of the company to place the resources of the investors at the disposal of the borrowing classes upon a safe, sound and equitable basis, affording the investor absolute security and a reasonable rate of interest, and the borrower convenient facilities for paying both interest and principal, with every safeguard that human ingenuity can suggest thrown around both."