Madison County, Illinois - Chapter 40, 1912

Financiers And Capitalists

Early Capitalists of the County - Business Effect of Lovejoy's Murder - Benjamin Godfrey, Simeon Ryder and Others - Alton National Bank - Richest Per Capita Town - Granite City - Opulent Land Owners.

While in Madison county wealth has ac¬ cumulated, its manhood has not decayed. Each decade shows a very material increase in its assessed valuation and as the representa¬ tives of each generation have served their allotted time and gone to their reward, their places are taken by others equally as strong, as virile and as keen in business knowledge.

A county is considered good or bad as one can or cannot make money and is afforded a safe home for his family in a God-fearing, law abiding community. Madison county has always been a good country and now offers extraordinary inducements to the industrious and ambitions of any nationality. With its cheap fuel, raw materials, and excellent freight rates, it promises to soon be one of the leading manufacturing counties of the state, second to but few. Its rich soil offers marvel¬ ous opportunities, when the latest methods of farming are followed and small farms in¬ tensively cultivated have been substituted for the present method of large ones, extensively cultivated. It needs capitalists and financiers to erect the factories and develop the soil and the result will be more capitalists and

Whether or not a man is wealthy is a comparative expression. In some localities one may be "p'assing rich with forty pounds a year." With the same money in a large world he is unnoticed and unknown. Still wherever he may be, the man who in comparison with his neighbors is possessed of the most money, is the capitalist of that locality and looked up to accordingly. In speaking of capitalists, it must be remembered that it is not his money that is looked up to as much as his skill and genius in making the money. That is where the man and the brain are shown. There is as much gray matter in the brain of one who can make a small fortune with meager oppor¬ tunities as in one who makes more with larger opportunities.

Madison county has been very fortunate in having had many men who were either financiers or capitalists. Their lives in many instances read like fairy tales but it is impos¬ sible to refer to them at length in an article of this nature or give any extended list of them, especially as many of their biographies appear elsewhere in this work. Its failures have been few and in the main free from adverse criticism. In the making of the county she can present a long list of men who, being

Closely identified with the history of Illi¬ nois and the west is our county seat, Edwardsville, laid out in 1816, the county being estab¬ lished in 1812. The residence of many of the prominent men of that day, a land office was established there and all who wished to settle anywhere north of the Kaskaskia district must enter lands at that place. Some of those mak¬ ing entries did so for homes, others for specu¬ lation, but none of them, even the most sanguine, dreamed of the land becoming worth two hundred dollars or more an acre within less than one hundred years.

As an example of its class of citizens might be mentioned Ninian Edwards, a resident from 1818 to 1824. At times, a territorial governor, a state governor and a United States senator, he also engaged extensively in the mercantile business, having no> less than eight or ten stores in as many places in Missouri and Illinois. He established stores at Kaskaskia, Belleville, Carlisle, Alton and Springfield, in Illinois, and at St. Louis, Franklin and Chari¬ ton in Missouri.

In the thirties, Alton was one of the cen¬ ters towards which enterprising and ambitious men of means turned. Up to the time of the panic of 1837 and the murder of Lovejoy, its population was being rapidly increased by an influx of men, bringing with them not only money but brains to devote to the upbuilding of the city and the state. At that time Alton probably possessed a larger percentage of high class men, men of education, men of refine¬ ment, men of means than any city old or new in the country. But the panic and the murder stemmed the tide and diverted it to other localities not so well favored by nature.

On the one hand, a set of men have contended that he was a martyr, giving up his life to protect free speech and the liberty of the press ; on the other hand, others equally as respect¬ able, equally law abiding, with an equally high sense of honor, have maintained that he con¬ fused license of the press with the liberty of the press and by coming to Alton and insist¬ ing on publishing his doctrines he invited mob law and himself brought his murder on his own head. Be that as it may, the fact remains that these two events, the panic and the mur¬ der, changed the destiny of Alton and Madi¬ son county temporarily, but after many years they are again coming into their own.

Among the people who were being added to its population were many from the New Eng¬ land states, thrifty, capable, enterprising men, but when the advice was thundered through the east, ''Go' around Alton - avoid it as you would Sodom and Gomorrah," this immigra¬ tion ceased. Either the panic or the murder would effectually act as a barrier to future progress, but both coming together fell as a deadly blight on the community. Just think of Alton at that time and what a potent factor in finance and commerce it bade fair to be. It gave promise of becoming the commercial center of the Mississippi valley. Its popula¬ tion contained many of the brightest minds of the country, its wharves were crowded with steamboats, its stores filled to overflowing with merchandise. In the commencement of 1837 with a population of about 2,500, it contained twenty wholesale and thirty-two retail stores. In 1831, according to the Rev. J. M. Peck, building lots sold for from twenty to one hun¬ dred dollars, lots being sold this low on condi¬ tion that good buildings should be erected on them within one year on penalty of a forfeit¬ ure. In 1837 best stands for business near the river sold at from three hundred to four hundred dollars per front foot; lots more re- tired for private residences, from one hundred to fifty and twenty-five dollars per foot. Stores rented from fifteen hundred to four hundred and dwelling houses from six hun¬ dred to two hundred. Rather a handsome increase in six years. Some of the large whole¬ sale stores did a business of from two hun¬ dred and fifty thousand to half a million dol¬ lars annually. Not large figures in this day when houses count their sales by the millions, but in that day and age these figures were colossal. It is hard for us to realize at the present time what an important factor Alton was in the commerce of the west during the thirties, when the largest mercantile houses were located here, importing direct from Europe and with a large and growing trade with New Orleans. Its merchants and financiers were active, aggressive and pushing out for new business for their own enrichment and for the upbuilding of the town. Their ventures were not always successful but the spirit of financial domination was here. A case in point is referred to by Gov. Thos. Ford in his history of Illinois. It was an ef¬ fort to corner the lead business of the west by the Alton captains of industry, which reads as follows : "The stock in the State Bank having been taken, it went into operation under the control of Thomas Mather and his friends in 1835. The Alton interest in it was very large. Godfrey Gilman & Company, merchants of Alton, had obtained control of a large part of the stock; enough in case of divi¬ sion to control the election of directors. To conciliate them, the bank undertook to lend its aid to build up Alton in rivalry of St. Louis. At this time a strong desire was felt by many to create a commercial emporium in our own state and it was hoped that Alton could be made such a place. As yet however, nearly the whole trade of Illinois, Wisconsin, and of the upper Mississippi was concentrated in St. Louis. The little pork, beef, wheat flour and such other articles as the country afforded for export, were sent to St. Louis to be shipped. All the lead of the upper and lower lead mines was shipped from or on ac¬ count of the merchants of St. Louis. Ex¬ change on the east to any amount could only be purchased at St. Louis and many of the smaller merchants all over the country went to St. Louis to purchase their assortments.

"The State Bank undertook to break up this course of things and divert these advan¬ tages to Alton. Godfrey Gilman & Company were supplied with about $800,000 to begin on the lead business. By their agents they made heavy purchases of lead and had it shipped to Alton. Stone, Manning & Company, another Alton firm, were furnished with several hun¬ dred thousand dollars with which to operate in produce and Sloo & Company obtained large loans for the same purpose. The design of the parties, of course, was not accomplished. Instead of building up Alton, enriching its merchants and giving the bank a monopoly of exchanges on the east, these measures re¬ sulted in crushing Alton, annihilating its mer¬ chants and breaking the bank. The Alton merchants, however, commenced operations on the moneys furnished by the bank, and they were so anxious to obtain a monopoly of purchases that prices rose immediately. The price of lead rose in a short time from two dollars and seventy-five cents to four dollars and twenty-five cents per hundred. This did not appear to be the best way of monopolizing the lead trade. Therefore, Godfrey, Gilman & Company furnished their agent in Galena some two or three hundred thousand dollars to purchase lead mines and smelting estab¬ lishments. This agent was a manly, honorable and honest man, but wild and reckless in the extreme. He bought all the mines and smelt¬ ing establishments he could get and some lots in Galena. He scattered money with a profuse and princely hand. The effect was apparent in a short time. Property in Galena rose in a few months more than two thousand per cent.

While such great exertions were being made to divert the lead trade to Alton and while such lavish expenditures at Galena raised its price there, they could not keep up the price in the eastern cities, its destined market. The lead was kept in store in New York a year or two in hopes the price would rise. The owners were at last compelled to sell at a great sacrifice and the operation ruined all con¬ cerned. Stone, Manning & Company and Sloo & Company were equally unfortunate.

"I think the bank must have lost by all its Alton operations nearly a million of dollars and was nearly insolvent before the end of the second year of its existence though the fact was unknown to the people. The Democrats helped to make the banks, but the Whigs con¬ trolled the most money, which gave them the control of the banks. The president and a large majority of the directors and other offi¬ cers were Whigs; just enough of Democrats had been appointed to avoid the appearance of proscription. Thus the Democrats were de¬ feated at least once in the contest for the 'spoils' and probably it will always be thus when long purses are to decide who are the 'victors.' "

Of course, Governor Ford being a Jack¬ sonian Democrat and 'forninst' banks and the business men above mentioned being in the main Whigs, the governor's statements may be taken Cum grano salis.

You will notice that these men were capi¬ talists, were endeavoring to corner the lead market and form a practical trust. The "Bet¬ ter than thou arts" of that day exclaimed, no doubt, "Anathema maranatha" on these men and their works; thus history repeats itself. If it had happened in this day and age what an opportunity would have been given to those who cant about civic and business righteous¬ ness to hold up their hands in holy horror. What an opportunity for the yellow press to have bespattered the participants with their slime, exercising their license of the press ; how the muckrakers could have disported in the leaves of the magazines published for rev¬ enue only and what an opportunity for Execu¬ tives to issue diatribes inveighing against the predatory rich and swollen fortunes ! And as they were Whigs or the Republicans of that day, what a congregation they would have made in which to pass the hat to save doubtful states !

It must be remembered that the firms above referred to were composed of men whose in¬ tegrity was not questioned. They entered into a reputable business venture which, unfort¬ unately, proved unsuccessful.

Among the early financiers who cast their lot with Alton and stood by her through good report and evil report were Captain Benjamin Godfrey and Captain Simeon Ryder. It is a singular coincidence that both should have been born in Chatham on Cape Cod, Massa¬ chusetts, that both followed the sea and be¬ came captains of ships and that both should have come to Alton, Captain Godfrey coming from Mexico, via New Orleans, and Captain Ryder from New York. They each married twice, their second wives being sisters, the Misses Pettit of Hempstead, Long Island. Captain Ryder, when a captain at twenty-two, had his vessel, out from Cadiz, Spain, boarded by pirates and completely looted. Captain Godfrey in Mexico had all his savings taken from him by bandits. They each built a rail¬ road, among the first in Illinois, and to finance the building of those roads at that time was as gigantic a proposition as to finance a transcon¬ tinental line in this day and age. They were both successfully engaged in commercial pur¬ suits and their activities were not confined to the state and city alone but to the whole west¬ ern country. Captain Godfrey's life has been written many times and is well known. He left a lasting monument to himself in Monticello Seminary and to him belongs the honor of being one of the projectors of the Alton and Sangamon Railroad, now a part of the Chicago and Alton Railroad, and bringing it to a successful completion.

Captain Ryder went to sea as a boy and was captain of a ship before he was twenty-one. In 1830 he abandoned the sea and locating in New \ork City, he went into the commercial shipping business. At the end of four years his health failing, he sold out and in the fall of 1834 moved to Alton, Illinois, with a capital of about $50,000. Here he regained his health, built a large stone warehouse and went into the wholesale general merchandise business and was for twelve years one of the leading mer¬ chants of southern Illinois. He took the first steps to build the Terre Haute and Alton Rail¬ road, now a part of the Big Four Railway, completed it in 1854 and was its first president. He was also president of the Alton, Marine & Fire Insurance Company for seven years.

Winthrop S. Gilman, of the firm of God¬ frey, Gilman & Co., eventually removed to New York and engaged in the banking busi¬ ness very successfully. While in Alton he left his imprint on the commercial life of the city.

James S. Stone, for some years in the shoe business with E. L. Dimmock, removed to Boston and, engaging in the manufacturing and mercantile business, became a wealthy and prominent citizen.

Charles Phinney engaged in the grocery business in Alton, in 1838, and conducted a wholesale house until his death in 1904 at the age of ninety-four years, an active business career of sixty-six years, a period seldom, if ever, surpassed.

General Semple and Major Hunter were active in the founding and upbuilding of Alton and their additions to the city still bear the names of Sempletown and Hunterstown. A long roll could be made of those who achieved financial success and among them might be named Captain Joseph Brown, mayor both of Alton and St. Louis, who stated in an address that during the war he had made one thousand dollars a day for four hundred consecutive days.

The Alton National Bank and its predeces¬ sors have as long a continuous record of a banking business as can be shown by any bank in the state and we might say in the United States ; a record of safe conservative banking, always aiding in the upbuilding of this section as much as was consistent with such conserva¬ tism and with giving its depositors the maxi¬ mum of security. And it has been a family affair.

Dr. E. Marsh, the president of the Alton National Bank, and its predecessors for many years, came to Alton in 1832 and engaged first in the drug business and afterwards in bank¬ ing. Upon his death in 1877, he was succeeded in the presidency by Samuel Wade, who had been vice president. Mr. Wade came to Alton in 1831, engaging first in the lumber business and afterwards successfully engaged in pork packing. He was four times mayor of the city, an example to future generations of busi¬ ness men taking some interest in public affairs for the betterment of the community.

Upon Mr. Wade's death, Mr. C. A. Cald¬ well, Sr., became president, until his death in 1895. He also was mayor of the city. After Mr. C. A. Caldwell's death, Mr. E. P. Wade, son of the former president, became president, and Mr. C. A. Caldwell, son of the former president of the same name became cashier. Mr. E. P. Wade, during his long life, has been preeminently Alton's most valued citizen. He is very highly esteemed for his sound judg¬ ment, his moral and social virtues and for his punctilious fidelity in the discharge of his duties. But little need be said of the present cashier, save that he is the peer of the former officers of the bank and to those who have been acquainted with their personality, this speaks volumes.

The Alton Mutual Insurance and Savings Company was chartered February 12, 1853, and in September, 1859, also organized a banking business which became the First Na¬ tional Bank in 1865. It continued in business until 1882 when it sold out to the Alton Na¬ tional Bank. Mr. Daniel D. Ryrie was made secretary of the company in 1853. When it was succeeded by the First National Bank, he became cashier of the new bank, which posi¬ tion he occupied until his death. Mr. Ryrie was born in Wick, Scotland, and came to Al¬ ton with his family in the Fall of 1837. He first clerked in stores in Alton and St. Louis until 1848 or 49, when he went into the whole¬ sale grocery commission and forwarding busi¬ ness in Alton with his brother John A. Ryrie,

The Mitchell Brothers, John J. and William H., came to Alton in early days and commenc¬ ing in a small and obscure way, made a name for themselves as masters of finance. They afterwards removed from Alton, John J. going to St. Louis and William H. to Chicago, where wider fields presented themselves for their activities, and died possessed of more than ordinary wealth. A son of William H. Mit¬ chell, also John J., is now president of one of the largest and most solid banking institutions in Chicago.

With the Mitchells was associated both here and in Chicago, William H. Reid, a nephew. Eminently successful in both places, he will be remembered for many generations as the donor to Monticello Seminary of the magnifi¬ cent Elinor Reid Memorial Chapel.

Two other brothers, James T. and John N. Drummond, made their beginnings in Al¬ ton in the manufacture of tobacco and estab¬ lished a fame for their brands, known all over the United States. James T. removed to St. Louis when they changed the location of their factory, but with the exception of a two years' residence in St. Louis, John N. continued a citizen until his death: Great success crowned their work. George S. Myers, who was their partner for a time, removed to St. Louis and engaged in the tobacco manufacturing busi¬ ness under the firm name of Liggett & Myers and died recently, many times a millionaire.

Arba Nelson and John E. Hayner laid the foundation of their success in the hardware business and when Mr. Hayner died he left a very large estate accumulated in the mer¬ cantile business, banking and manufacturing.

Among the lawyers, the name of Judge Henry W. Billings presents itself as the most prominent among them as being both a good business man and a fine lawyer. After grad¬ uating at Amherst, he studied law under Judge Foote of Cleveland, Ohio, and was admitted to the bar in that city. Coming west, he finally removed to Alton in 1845 where he lived until his death, which occurred April 19, 1870. He was fifty-five years old. As an attorney, Judge Billings ranked among the first of southern Illinois ; and there were lawyers in those days. As a business man, he amassed an ample fortune, every dollar of which was honestly earned.

In Edwardsville, the banking business of West & Prickett has stood for years preemi¬ nent for business success and business integ¬ rity. Their banking house was established in 1867, and after Mr. West's death the business was continued by Major W. R. Prickett.

In the extreme southeastern portion of the county lies Highland, in Helvetia township. Highland, without doubt, is the richest town per capita in the county and this might also apply to the township. The town is sur¬ rounded by fruitful farms, owned and tilled by an industrious, money saving people and in the town itself are a number who can count their wealth in six figures and some are near the million mark, if they do not exceed it.

The successful establishment of the Helve¬ tia Milk Condensing Company wrought wonders in the town. Disappointment after disappointment confronted them and ruin stared them in the face, until after many trials the secret of successfully condensing milk was found and now the products of the company are known the world over. This success brought with it wealth to those interested.

Among the people of capital whom the town has claimed as citizens are Louis Latzer, presi¬ dent of the Helvetia Milk Condensing Com¬ pany, who was originally a farmer, starting with very moderate means. John Wildi, re¬ cently deceased, was formerly secretary of the Milk Company and organized the John Wildi Milk Condensing Company of Maryville, Ohio, with a paid up capital of $350,000. Selmar Pabst was formerly cashier of the First Na¬ tional Bank of Highland. He came to High¬ land fifty years ago and started as clerk in a general store. Louis Kinne is president of the Lirst National Bank, also president of the C. Kinne Company, the largest mercantile establishment in the eastern end of the county. His father, Charles Kinne, was one of the pioneer settlers of Highland. George Roth, formerly in the hardware business, left a hand¬ some estate. Joseph Ammann, present cashier of the Lirst National Bank, was formerly successfully engaged in the general merchan¬ dise business. The largest interest in High¬ land, next to the Milk Condensing plant, is the Highland Brewery, founded some sixty years ago by Martin J. Schott. It is the only brew¬ ery on the Vandalia line between St. Louis and Terre Haute. The business has grown to enormous proportions and their product is dis¬ tributed all over the nearby counties.

Granite City, a flourishing manufacturing city, has had a marvelous growth in the last decade, but its capitalists have necessarily been non-residents. Unless all signs fail, when the next history of the county shall be written, it will show up a creditable array of resident men of money.

The accumulation of wealth has been by no means confined to the banker, the manufact¬ urer and the merchant. The fertile acres of unrivaled soil have proved great wealth pro¬ ducers to their owners who, governed by their faith in the inexhaustible richness of the land accumulated large tracts which during the life¬ time of the owners afforded all the comforts of life and enabled them, in many instances, to leave large fortunes to their descendants.

The Suppigers and Solomon Koepflo of Highland, pioneers in that section, were large land owners., The three Hoxsey brothers, James, Alexander and Archibald, settled in the Silver Creek country in 1817 and entered sev¬ eral thousand acres of land, of which about two thousand acres are still in the hands of the family. Archibald Hoxsey was the grand¬ father of the daring young aeronaut, Arch Hoxsey, who lost his life in California while making a flight in his machine.

Governor John Reynolds' father and uncle were both large land owners, as was also Col. Rufus Easton, the founder of Alton. Guy Morrison died owning several thousands of acres near Collinsville. He not only developed his own land, but also loaned money to his neighbors, not for the mere sake of the in¬ terest, but also to aid them in making their lands more productive. The Mitchell brothers, John J. and William H., owned about four thousand acres near Mitchell station. They are entitled to great credit for developing by draining the wet prairie country, a section admirably adapated for duck and snipe shoot¬ ing, but hardly fitted in its then state for profit¬ able farming.

from Kentucky in 1836 and entered large tracts of land. One of them gave to each of his children one thousand acres of land during his lifetime. The heirs were great developers and did not allow their land to lie idle.

George Barnsback came from Kentucky prior to 1820. During his lifetime he gave each of his children a quarter section of the best land in the county, which they developed and a great part of it is still owned by his descendants.

The Gilliams were among the earliest set¬ tlers, who acquired large holdings which they developed. Isaac Prickett, the father of Major W. R. Prickett, was a large land owner at his death.

William Montgomery, one of the earliest settlers, the Kinders and Z. B. Job, were great developers and builders-up of the farming sec¬ tions and died, each of them possessed of many acres. The Collins family, founders of Collinsville, were large land owners.

Gershom Flagg, an early settler, was also one of those who had faith in Madison county and showed it by accumulating farming prop¬ erty of extended acreage.

In our cities, towns and on the farms, are a large number of men, who after years of in¬ dustry and thrift have by their devotion to their business been enabled to retire from active life, to enjoy in their old age, the fruits of their labors, feeling sure that they can leave a goodly heritage to their children.