Howard County, Indiana - The whole text, 1909 (part 5 of 9)

They established a packing plant on the east side of town next to the P., C. & St. L. Railroad, buying hogs and slaughtering them and curing and shipping the meat and lard. They continued this business for perhaps ten years. They also established and carried on an extensive grocery store establishment. They also bought grain at the Lake Erie elevators, known then as the Jay & Dolman warehouse. They also established a private bank, known as the T. Jay & Company banking house, which was continued until after the First National Bank was established in 1865.

Mr. Jay was prominent in the industrial life of Kokomo until his death. After his death the business was continued under the firm name of Russell, Dolman & Company. Some of their earlier lines of business were discontinued. Buying and shipping of grain was their chief business. Mr. D. P. Davis was their gentlemanly foreman at the elex'ator and was a very expert grain inspector.

Making Brick

The brick industry has been of more or less importance from very early times in the county. There has been an abundance of good clay in all parts of the county and in the earlier times cheap fuel everywhere - wood.

Captain Harry Stewart is the authority that his father, Heniy C. Stewart, was the pioneer brick manufacturer of Kokomo. About the year 1847 he had a brickyard at the northeast corner of the intersection of High (Superior) and Buckeye streets. He obtained the clay for the bricks from Buckeye and Washington streets at the bluff of Wild Cat, the road supervisor allowing him to take the clay in making the cut for a roadway to the creek. The next year his brickyard was changed to the southwest comer of a six-acre tract of land lying just north of Walnut street, and whose western boundary was near Webster street. Wood was used for fuel. Mr. Stewart relates that instead of using the old-fashioned - as now known - mixing or tempering wheel, that oxen were used. They were driven round and round in the mud, tramping it until thoroughly mixed. The oxen would step in the steps made in former rounds and thus would work the mud into ridges and ruts. To overcome this the driver would reverse the direction of the oxen. The first brick masons in Kokomo were John Albright and Harles Ashley, and the first brick buildings were built in 1848; one a store building on the corner where the Darby block now stands, and the other a blacksmith shop.

The limestone industry has also been of considerable importance from very early times. John and Charles Morrow, brothers, began the quarrying of building stone nearh^ sixty years ago on Pete's branch, near the present Defenbaugh stone quarry, on a somewhat limited scale, but sufficient to supply the demand for several miles around. A little later they also began burning lime to supply a demand for that article in plastering and stone and brick building. The first lime was burned on log heaps. Logs twelve to sixteen feet in length were cut and piled in heaps four or five feet high and to a length of fifteen or twenty feet, and upon the top of this heap several wagon loads of limestone were heaped and then the log heap was fired. \\'hen the heap was well fired and the mass of stone became hot the popping and exploding of the unbroken stone was like diminutive artillery. This was allowed to bum down and cool and made a fair article of lime. Somewhat later two kilns were erected for burning lime, and a far better quality of lime was burned with less fuel. In later years the demand for the stone for various building purposes consumed practically all the stone quarried, and, being more profitable than the lime business, the burning of lime was discontinued.

The Morrow brothers sold to George \\\ Defenbaugh in the early sixties and he operated and developetl the quarries until his death in 1906, doing an extensive business in building and crushed stone.

First Macadam Streets

\\'hen Kokomo began building macadam streets the demand for broken stone increased amazingly and a stone quarry was opened on the east side of the L. E. & ^^^ Railroad. ab(iut forty rods snuth of Wild Cat creek. A vast quantity of stone was taken out and hauled upon the streets and there broken by hand. After this was abandoned another quarry was opened on the west side of the railroad opposite the abandoned Cjuarry. A power stone crusher was introduced and the manufacture of crushed stone was commenced. This plant has been operated on an e.xtensive scale for several years by

J. "SI. Leach & Company. The demand has heen lieavy the present season for crushed stone for shipping and home use in building macadam roads.

In recent years the K., M. & \\'. traction Hne opened a stone quarry on West Markland avenue, just west of Courtland avenue, for crushed stone for their raih'oad tracks.

During the past year L. B. Hodgin and others have operated and expanded the business of the plant until they have been compelled to operate it day and night and are now arranging to expend ten thousand dollars for new machinery and improvements.

Following Henry C. Stewart in the making of brick have been many. Chief of these have l^een ^^'illiam B. Morgan, on the north side, and John AI. Leach, on the suuth side. Mr. Morgan died several years since and his business has been discontinued.

Soon after Kokomo began her rapid growth, because of the discovery of natural gas in her midst, John M. Leach & Company. foreseeing the demand and perhaps already realizing it for a far greater supply of brick, erected a brick plant on the L. E. & W. Railroad just south of the city and began the manufacture of brick on a large scale, and found a ready market for his entire output. Several years since he had used all the clay within the immediate neighborhood of the plant and the company was compelled to go back from thq plant to buy clay and to ship it to the plant. For shipping purposes they operate a dummy railroad, having a small locomotive and a number of small railroad dump cars. For several vears they used natural gas for fuel in burning bricks : a few years since they changed to coal.

house above the city near the Ohio street bridge, and another at the north end of the stone quarry on the west side of the railroad. About fifteen years since they began the manufacture of artificial ice, using the natural ice to supplement the artificial in supplying the trade. Soon they were able to supply the demand with the artificial ice and they discontinued the storing of natural ice. Their original factory was on the south side of Wild Cat creek, near the east side of the Lake Erie Railroad. Their business had so increased that in the year 1903 they built a large, substantial brick building fronting on Main street and east of the original one for their ice factorv-. This is a modern, up-to-date ice factory.

In the manufacture of ice they use distilled water taken from a well drilled eighty-five feet into the limestone. The stratum of water at this level seems to be inexhaustible. A test, made in 1901, near the ice plant well, of two eight-inch wells in this water stratum, showed that, pumping at the rate of two million gallons of water every twenty-four hours, the water could not be lowered below a given level. This test was made to determine the location of a municipal waterworks plant.

When Kokomo Was Young

Prior to the fall of 1886, Howard county was solely an agricultural community and Kokomo and the other towns of the county were trading points. Kokomo was a thrifty town of about four thousand people and was located wholly upon the north side of Wild Cat creek. There were no factories as Kokomo of today knows them. There were several small factories supplying local demands. The citizens were wideawake and progressive and doing well in a moderate way. About this time natural gas, which had been known in Pennsylvania and Canada for a number of years.

was being developed in Ohio in and about Findlay. No effort had as yet been made to learn if it underlaid Indiana territor_v. Some enterprising Howard count}- citizens determined to make a test. Accordingly a paper, which can hardly be called a subscription paper but rather a memorandum of an agreement, was drafted as follows : "KoKOMO, Indiana, March 22. 1886.

"The object of this paper is to ascertain if there are a sufficient number of persons in this city willing to subscribe one hundred dollars each for the purpose of boring for gas a distance of not less than two thousand (2,000) feet. The names of those willing to subscribe the above amount ($100), pro\'ided the scheme is properly and satisfactorily organized, are as follows : A. G. Comstock. D. C. Spraker, J. C. Blacklidge, J. ]\I. Leach, S. Davis & Sons, Amistrong-Landon Company, R. O. \\'ilson, J. C. Dolman, John W. Slider, E. Quaintance, Russell Dolman & Company, J. O. Henderson. J. McLean Moulder, W. H. Sellers, J. A\\ Cooper, J. B. Michener, Henry Hunt, Dixon & Company, Bell & Purdum, \A^ A. Stuart, G. W. Defenbaugh, George Stidger."

A. Y. Comstock and D. C. Spraker did most ai the work of circulating the paper and securing subscribers. Although the citizenship of Kokomo and vicinity were liberal and progressive, they did not fall over each other in their eager haste to sign this agreement to pay one hundred dollars for boring a deep hole into the ground. Probably none of them had ever seen a real for-sure gas well. Some of them remembered the attempt to make a hole near the old Cromwell mill, and that, after going down several hundred feet, the tools became fast and the project had to be abandoned.

in such matters, but found he was up against the real thing in securing the necessary signatures. The work of promoting this venture was commenced in March and it was mid-September before the necessary twenty-two subscribers were obtained and the preparations for boring the two-thousand-foot hole were completed and the actual drilling commenced.

After the work of circulating this paper had commenced, Init during the long wait while the necessary twenty-two men were being hunted, the first producing natural gas well in Indiana was drilled in near Eaton, in Delaware county.

The contract for drilling the well was let and the first "rig"' ever seen by citizens of Kokomo was put up on the south side of Wild Cat, in a cornfield belonging to A. F. Armstn^ng, near the southwest intersection of Armstrong avenue and ^^'ater street.

All that section of country lying south of Wild Cat creek and west of the Lake Erie Railroad was then farm land and few and far between were the farm houses.

On the 6th of October the drill penetrated Trenton rock and natural gas burst from its confinement and gas well Xo. i was a reality. The gas was cased in and a pipe elbowed off about twentyfi\-e feet from the well and ignited. Thousands of people came {ram far and near to see the wonder. It was not a large producer; the flames did not shoot high in the air; neither did it roar s(i tremendously as did some of the mammoth wells drilled in later ; but the well, such as it was, was easily worth going miles to see. It was not necessary to "bore two thousand feet." Gas was found in the Trenton rock at a depth of a little more than nine hundred feet. All the subsequent drillings discovered the gas deposits at practically the same depth. Arrangements were soon made for drilling well Xo. 2 at a distance of about eighty rods southwest of Xo. I. Xo arrangements had as yet been made for utilizing the find. The news, however, went out over the country like wild fire that gas had been found at Kokomo and people of various classes began fiocking to Kokomo.

The earlier ones were men who were interested in exploitinggas wells, either in drilling gas wells or in leasing lands for gas wells and forming companies for piping and selling the gas. Another class of men were those who foresaw a rise in real estate because of the "find" and who rushed in to buy for the rise - the land speculator - and another class were the manufacturers, who were looking for a bonus and cheap fuel, ^\'ell X'o. 2, when drilled in. was a producing well and the belief was confirmed that Kokomo was in natural gas territory.

In the spring of 1887 real estate was on a boom. Several syndicates from abroad had come in and invested in Kokomo and adjacent Howard county real estate. The John Sherman or Mansfield syndicate was the leader in the amount and character of its investment. The John M. Hamlin or Hamlin-Patterson syndicate was a close second. Several Kokomo people awoke to the fact that Kokomo real estate was a good thing to possess and the active competition rapidly ad\-anced real estate. There was no less activity among natural gas men : lands were leased for gas, the lessor agreeing to pay so much per well annually so long as it producetl gas in merchantable quantities, generally agreeing to drill a gas well for each forty acres of land within stated times, agreeing also to pay an animal rental of a certain price per acre until the wells were drilled. Companies were organized to pipe the gas to points where it could be used and to sell it when so piped. The Kokomo Natural Gas & Oil Company was organized to furnish Kokomo with gas.

The first years of these natural gas companies they were very liberal in their terms of sale, giving all a flat rate of one dollar per month for cook stoves, and one dollar and fifty cents for first heater, one dollar for second heater and seventy-five cents for each additional heater per month for seven months each }'ear; and the supply was not sparing, either.

About the same time factory men began to appear, seeking locations in the gas belt and free fuel and a bonus in cash or its equivalent as an incentive to come. Meanwhile several rigs were busy drilling wells, and practically all wells drilled east of a line extending southwest through the west line of Kokomo were producing wells, some of them being of mammoth proportions, notably one, known as the Shrader well, located on the Fred Schrader farm one and one-half miles southeast of Kokomo. This was probably the strongest producer in this gas field. W'hen turned open and the gas ignited it sent up a great circular flame sixty to seventyfive feet in height, with a great roar that could be heard for miles. It lighted up the country for miles around and the farmers harvested wheat after nightfall by its light.

The Hon. Daniel W. Voorheis, who was at Kokomo engaged in a cause in court, soon after this well was drilled in was taken out one evening to see it. After witnessing the wonderful display of the burning well he declared it to be a sight worth a trip half across the continent to see. People were very wasteful of the gas in the first years after the discovery. They acted as if there was an inexhaustible quantity. Strong wells were opened and fired and permitted to burn for weeks, sen'ing no good purpose except to light up the country. The writer recalls that the B)-ron Reed well south of town burned for several weeks, lighting up the country for miles around and rendering the roads fairly light for a distance of three or four miles out from town. In addition the farmers had large flambeaus burning throughout the night. Thus an immense quantity of this, the best of all fuels, was wasted. Practically all the factories were operated by this fuel for se\-eral years. In addition two large pipe lines were put in to convey the gas to Chicago. Another line carried it to Logansport, another to Frankfort and Lafayette and another to Peru. It appeared that everyone was making a heroic effort to exhaust the supply in the shortest possible time. And yet the suggestion at that time that the supply would be exhausted was scoffed at.

Extending The Pipe Lines

The pipe lines that carried Howard county gas from home were: The Lafayette, which passed through Tipton county and into southeastern Howard. Murdock was at the head of this company ; the Logansport line, which, passing to the west of Kokomo, entered the gas field on the Colonel Blanche farm and extended east on the south line of Center township and thence eastwardly almost to the east line of the county, with branches to the south reaching into Tipton count^^ Hon. S. P. Sheerin was at the head of this company and it drew away the gas for about eight years. Their leases provided that the landowner should have a well drilled within one year from the making of the lease ; it provided for a well for each forty acres of land, the deferred wells to be drilled at intervals of one year each; that the company was to furnish the owner or his tenant free gas for domestic use and to pay two hundred dollars annually for each well so long as it produced gas in merchant- able quantities and to pay a rental for the land not drilled on. This company leased nearly all lands on the south side. The Indiana Natural Gas Company had their pipe lines laid diagonally thniugh Howard township to the pumping station west of Greentown, thence east into Grant county, and had the central and eastern parts of the county leased for. The Peru pipe line extended into the northeastern part of the county ; the Kokomo Natural Gas Company covered the country adjacent to the city: the Plate Glass Company had a large pipe line reaching east from their factor}- sexxral miles: the J. ]\I. Leach Company went east from the brick plant intu Grant county: and the manufacturers' line extended east fmm Xorth street to Jackson township. These several pipe lines were busily engaged in draining away the gas supply. Fur several years the pressure has been diminishing and the supjjly is mnv largely exhausted.

The Indiana Natural Gas Company, to comply with a provision of the statute that the business of the natural gas compan.ies should be to supply Indiana cities with gas before shipping to foreign points, laid a system of gas mains in Kokomo soon after going into the gas field, established an office here and sold gas in competition with the other company. Later, when the wells of the Kokomo company were exhausted, they supplied the Kokomo company's mains with gas and have been the chief source of the supply of gas for citizens of Kokomo since. For several years both companies furnished gas for the flat rate, but for the past six or seven years there has been a meter rate service of twenty-five cents per thousand feet. Not only has the rate been higher, but the ser\-ice has been inadequate at times and the citizens of Kokomo are largely turning to coal for heating purposes.

ing natural gas to factories and is now quite extensively engaged in furnishing gas for domestic use at a flat rate of three dollars for cook stoves and four dollars and fifty cents for heaters per month.

Pumping St.Vtions

Tu transport the gas in pipe lines to Chicago and other distant points required additional pressure and thus pumping stations along the pipe line was necessary. The main pumping station on the Indiana Natural Gas Company's line (Chicago) was located on the north side of the Kokomo and Greentown gravel road, on the west side of Wild Cat creek, one and one-half miles west of Greentown. A large, well-huilt pumping plant was constructed and a town plat was laid off atljoining, and quite a number of neat homes were built for their employes. Pipe lines from the various parts of their gas field converged to this plant. Recently, because of the failing pressure in the gas field, pumps have been put in the wells and the wells are now sooner exhausted by the jnimpingprocess.

Xow, after twenty-two years' use, the natural gas supply is largely exhausted. The reckless waste of the early years, the wholesale use of it in the factories and shipping it a\\a\- in many pipe lines have done a perfect work and the people nf Howard county are now almost deprived of the liest fuel for domestic use Nature ever furnished.

The first factory to locate at Kokomo because of the finding of natural gas was the Kokomo \\'indow Glass Compan}-. Richard Heagany, president. This company was subsidized by tine donation of a site at the northeast intersectoin of North street and the L. E. & \V.. Railroad, and a cash bonus paid by individual subscription. Tliey used natural gas in the making of the glass and did a good business for a few years, when a tire cumpletely destro3ed the buildings. The company did not rebuild but removed to Hartford City and established a window glass factory at that point.

Those who had contributed to the cash bonus for locating the factory at Kokomo were very much disappointed at this action and discussed the advisability of taking legal steps to compel the return of the money thus paid out, as the company had acted in bad faith in taking the money and then moving- away, presumably to get another cash bonus. The plant was built in 1887.

Paper Mills

Another plant located and built in 1887 was the Kokomo Strawboard plant. This plant was built by Seiberling & Williams, on a ten-acre tract of land on the New London gravel road about one mile southwest of the city.

This plant was subsidized by two thousand dollars by the Kokomo Improvement Company and was expended in the purchase of the ten acres of land from A. F. Armstrong. The plant consisted of several large brick buildings with all the necessary machineiy for converting straw into paper board and apparently was a very permanent improvement.

This factor}' used natural gas for fuel and for several years did a good business and used a vast quantity of straw, making a market for all of the straw for many miles around. For several years Mr. Thomas Bauer was a familiar figure among the farmers of the county in buying their straw. The old Cromwell millrace was utilized in filtering the water with the waste from the strawboard mill.

used in bleaching the straw and board and escaping in tlie refuse from the mill poisoned the waters of ^^'ild Cat, rendering the water unfit and dangerous for stock to drink, and that the refuse killed the fish in the stream. Finally suit was brought to prevent the allowing of the refuse to go into the stream. Damage suits were threatened. This uprising extended almost to the west limits of the C(iunt}-. Meanwhile the American Strawboard Company had been fomied for taking over into one great corporation all the strawboard plants, and the Kokomo plant had thus been absorbed. Because of this opposition the Kokomo plant was closed and has since remained closed, except for a short time it was operated as a boxboard factory. It is not at all likely that the factory will ever again be operated. The silent walls only remain of this once active industiy.

In the succeeding year two other paper mills were located south of the strawboard mill, on Kokomo creek. The first to locate was the woodpulp mill, with G. P. Wood as president. This mill converts quaking asp, second growth cottonwood and buckeye timber into wood pulp for the manufacture of paper. For several years after the location of this factory large quantities of buckeye and cottonwood timbers were purchased of the farmers of the county.

Very little quaking asp timber is grown in the county. The spruce timber used in the mill was shipped from northern ]Michigan, two large shiploads or cargoes being used each year.

The Newman Paper Company building was built adjoining the woodpulp mill and after a short time Mr. Newman sold out to Wood & Miller and the combined factory became known as the Kokomo Paper Company and the Kokomo Woodpulp Company, with I. N. Miller, president; G. P. Wood, secretar\': and C. L. Wood, treasurer. The two plants, including buildings and grounds occupied bAr the btisiness. covers three acres. They manufacture

In the year 1888 William C. Smith, from Rockford, Illinois, came to Kokomo seeking a location for a bit factory in the gas belt. He was then engaged in operating a factory of this kind at Rockford. Upon arriving at Kokomo he fell in with J. R. Hall, Wick Russell and Garah Markland, innocent-appearing men but hustlers, who, providing a good conveyance, took him out past and beyond the extensive fami lands of A. F. Armstrong, on the south side, through Markland and Russell's farm lanes "beyond Pete's branch and almost to the blufifs of Kokomo creek, so far out that all that was visible of Kokomo was the top of the court house tower, and here in a beautiful woods pasture these gentlemen assured Mr. Smith would be an ideal location for a bit factory. It was at a point where the three farms owned by these gentlemen touched each other. Mr. Hall told Mr. Smith that if he would locate on his side he would donate six acres, including a part of a clover field : ]\Iessrs. Russell and Markland said they would each give three acres more, and actually talked this shrewd business man into locating there. Be it remembered that this location was awa}- out in the countr}- and in the interior of three farms, more than a quarter of a mile from any street or highway. When the writer of this expostulated with Hall, while sur\-eying the site, and asked him how he could do such an act, he replied: "I intend to make this one of the most beautiful parts of Kokomo."

The Bit Works

The Rockford Bit ^^'orks was built that same year and commenced a prosperous career that has continued to the present. The plant is a large, permanent brick structure. \\'. C. Smith was presi-

In 1892 Henry C. Davis and his son, Henry C, Jr., bought an interest in the factory. In 1893 <^hey and H. A. Bruner bought in all outstanding stock. They manufacture augurs, augur bits and carpenter chisels. The present floor space is about 25,000 square feet. In 1892 the number of men employed was from thirty to forty. In 1908 the number is one hundred and tifty to one hundred and sixty, and the pay-roll is eighty thousand to one hundred thousand dollars per year." The cpital stock is seventy-five thousand dollars. The officers are: H. C. Davis, president; H. A. Bruner, viice-president ; H. C. Davis, Jr., treasurer; George L. Davis, secretary: George J. Costello, superintendent.

Indiana Tumbler And Goblet Company

The Indiana Tumbler and Goblet Company came to Kokomo from Greentown in 1900 and became known as the Kokomo Glass Manufacturing Company, after having burned out at Greentown. This plant was organized at Greentown in 1894 by D. C. Jenkins, who had many years' experience in the glass manufacturing business, and knows the business from all sides. The Kokomo Glass Manufacturing Company's plant was burned out in June, 1905. The plant was not rebuilt at once, as the company debated the rebuilding proposition at great length. Many of the skilled operatives moved away to other towns having similar factories. At last, by the citizens of Kokomo offering them a liberal bonus, they resolved to rebuild under a reorganization known as the D. C. Jenkins Glass Company. They accordingly rebuilt in 1906.

Tlie output is a full line of glass table ware, milk bottles, fish globes and a general line of machine-made goods. They have two to three men on the road selling to jobbers. Seventy-five per cent, of their output is sold in carload lots. The officers are : D. C. Jenkins, president ; Addison Jenkins, secretaty and treasurer.

The Kokomo Wood Enameling Company was organized and the building erected about the year 1890. Thomas Bauer, the hustling straw buyer of the Kokomo Strawboard Company, was the leading spirit in this enterprise. This industry was located on the southernmost of the factory sites platted in Hamlin's Highland addition. Its output was the various kinds of enameled wooden ware made from hardwood lumber, as knobs, handles, etc. It was claimed bv the managers of this concern that they used five hundred thousand feet of hardwood lumber annually. They bought great numbers of beech and sugar tree logs and thus made a considerable market for a class of timber that had not heretofore sold for lumber. the plant was operated as an enameling industry, the kilns were \-isited with two or three disastrous fires. It was capitalized at fifty thousand dollars and employed one hundred men.

Kokomo Rubber Company

The Kokomo Rubber Company was organized and incorporated in 1895 and put up the first building forty by one hundred feet, two stories and basement, and began the manufacture of bicycle tires January i, 1896. Each year afterward an equal floor space was added for seven years. Now the floor space is one hundred thousand square feet and employs two hundred and twentyfive men. It is incorporated for two hundred thousand dollars.

The pay-roll is one hundred thousand dollars annually. D. C. Spraker is president and manager, Milton Krouse is vice-president, George W. Loudon is secretary, D. L. Spraker is treasurer. The manufactures are bicycle tires, automobile tires and a specialty is made of solid vehicle tires for buggies. The product is known as Kokomo tires the world over. Shipments are made not only to all parts of the United States, but to foreign countries as well. This plant is located on the Lake Erie & Western railroad, just south of Markland avenue and fronts on Main street.

The Great Western Pottery Company was established in 1893 on West Morgan street by the present owners, the two Conrad brothers and Coxon, who is superintendent. The original size was four kilns. It now operates ten places. The buildings cover ninety thousand square feet of floor surface. When the factory was first built it was the only one west of Pittsburg. Nine years ago this company secured the same kind of a factory at Tifhn, Ohio, which has seven kilns, and has practically the same output.

The Kokomo plant employs one hundred and fifty men, ninety per cent, of whom are skilled workmen. The pay-roll is about ten thousand dollars per month. Their output is sanitary pottery ware and their shipments are in carload lots.

The Globe Stove and Range Works was organized in 1898. The plant is located on the P., C. & St. L. railroad and their grounds extend from the railroad to Market street and south from Broadway. The company began in a modest way, but have continuously grown and expanded until the plant now consists_of six large and substantial fireproof brick buildings. The buildings are all practically new, steam heated, electrically lighted and well ventilated. The growth of this industry has been constant and is a credit to the management and the citv and ccmntv as well.

Twent_v years ago the Charles Brothers came to Kokomo preaching the gospel of tomato growing. ]\Ir. A. A. Charles was especially enthusiastic in telling Howard county farmers what possibilities were in store for them in growing tomatoes on their fertile acres and recounted what had been done in Jersey and incidentally stated that he stood ready to help them by starting a canning factory.

The promoters of the Brookside addition proffered these gentlemen a site for a factory and as a further encouragement made a donation of some choice lots. A considerable number of farmers agreed to grow acres of tomatoes at so much per ton, where they had heretofore been content with a single plant, and the canning industry had a beginning in Howard county. During these twenty years it has been a profitable business both for the grower and the packer. The Charles Bros, operated the Brookside Canning Factory for several years with eminent success, canning sweet corn and peas as well as tomatoes.

Canning Factories

W. A. Bowlin and others operated a canning factory on the New London pike at the north end of Courtland avenue for several years, canning peas, corn and tomatoes. John Gennebeck and others started a third plant near the strawboard mill, which later passed into the possession of parties who have organized the Kokomo Canning Company and has been enlarged and improved until it is one of the best plants in the State.

two years later. Upon the death of j\Ir. Kelly ^^^ A. Bowlin took charge of the property for a season and subsequently it was operated under the trusteeship of the Kokomo National Bank until the present company was formed in February, 1904, with a capital stock of twenty-five thousand diillars. the members nf which were ; T. C. McReynolds. L. J. Kirkpatrick, W. \\'. Barnes, J. W. Barnes. J. W. Learner, E. L. Danner, F. C. Falk and C. \\\ McReynolds. The plant was then located at the corner of Water street and Courtland avenue. In March, 1906, the company doubled its capital stock and bought out Grafton Johnson, owner of the Brookside and Howard County canning factories, the Kelly plant for the most part being removed to the grounds of the Howard County plant, which had in the start been the property of John Gennebeck. In the end Mr. Gennebeck had ceased the active ownership of this industry and G. W. Landon, W. F. Ruddell and Grafton Johnson took it in charge. It was during this period that the Howard County and the old Charles, or Brookside, canning industries were consolidated. Grafton Johnson operated the two consolidated properties, which he soon acquired, for some time, when the three plants were consolidated, as stated, in 1906. The grounds include six and one-half acres, about three acres of which is covered with buildings. The plant represents an investment of one hundred thousand dollars, and has never paid less than ten per cent., and sometimes double, on the capital stock. The active manager, who began the operation under combined discouragements, is C. W. McReynolds, recently elected president of the State Canners' Association.

It has facilities for packing a hundred thousand cans of vegetables in a day without touching the ingredients with the hands. All is done by machinery.

Homer Sailors and W. J. Dixon began a fourth packing plant in 1907 on the L. E. & W. railroad in the Park View addition. The canning industry in Howard county has proven to be as good as its most sanguine promoters promised.

In 1888 the Opalescent Glass Factory was located upon one of the factory sites platted by Mr. R. E. Patterson in the Hamlin Highland addition. A Mr. Henry, with a Frenchman skilled in the art. secured this site in donation and proceeded to erect buildings and began the manufacture of this glass. After a short time he sold out to local men, who secured 'the skilled services of Mr. Francois. This is not a large concern, but is a good business and very profitable. The capital stock is twenty thousand dollars and employs twenty men and has a monthly pay-roll of eight hundred dollars.

Of the various manufacturing industries that have located in Koknmo probably none have obtained so wide celebrity as the automobiles. Kokomo is widely known as the Automobile City. This fame has resulted from the two automobile factories located here.

The first was located here ten years ago. in 1898, just south of the rubber works. Like the rubber works, it had a modest beginning, but grew rapidly and is now a leading industry. It is said to be the oldest automobile factory in the United States. It is also said that Mr. Edwood Haynes is the pioneer automobile inventor of this country. In the beginning the Apperson Bros, were manbers of this automobile firm and it was known as the Haynes-Apperson Company. Somewhat later the Appersons withdrew and began the manufacture of automobiles independently. The Haynes cars have been entered in many races in competition with machines made in the best factories of this and foreign countries and have always given a good account of themseh^es, especially along endurance lines.

The Apperson Automobile Company is located on South Main street on the south side of ^^'ildcat, where the Riverside Machine \\'orks were located. The Apperson Bros, were the proprietors of this machine shop and when they decided to embark in the automobile business independently they converted the works into an automobile industry and erected a large three-story brick building and began the manufacture of automobiles on a large scale. Their machines are noted for power and speed. Their business is increasing rapidly and steps have been taken recently to greatly enlarge the factory.

Pittsburg Plate Glass Company

Probably the most important of Kokomo's industrial concerns has been the Pittsburg Plate Glass Company plant because of its size, the long time it has been here and the amount of business done. This company was organized in 1888 and located on the east side of the P., C. & St. L. railroad and south of Vaile avenue. avenue.

The founders and promoters of this enterprise were individual capitalists, of whom Monroe Seiberling was chief. Conger and others helped, but Seiberling came here and made this city his home for years and did much in various ways for the material uplift of the city. He also associated some of the business men of this city with the company in building this plant. It has at all times been a large employer of labor, employing about five hundred and fifty men. and having a monthly pay-roll of thirty thousand dollars. This factory was an earlv and heavv user of natural gas and had its own natural

Several years after the founding of this company the Pittsburg Plate Glass Company, a corporation formed for the purpose of combining all plate glass companies under one management, bought the stock of this company and made it a part of the Pittsburg Plate Glass system. Kokomo has been fortunate in that the plant has b-een operated almost continuously since its absorption in this system. The plant is now being rebuilt and otherwise improved, bringing it up to date and giving assurance to Kokomo that it will still continue to be a live plant and furnish employment for the men of the plate glass district.

About fifteen years since some young men came to Kokomo from Ridgeville looking for a good business location for the manufacture an,d sale of the Whitney woveu wire fence machine and of the wire for weaving the fence in place. They also planned to weave the fence in their facti^ry and sell it in rolls to fence builders. They located their factory at North and Union streets and soon were doing a fine business in the sale of machines and in building and selling different styles of fence, including many beautiful designs of ornamental fence.

A few years since a number of the business men and manufacturers of the city decided that it would be a profitable and wise thing to greatly enlarge this business by building a plant to make the wire used in the fence business and to greatly enlarge the fence building department, and thus the Kokomo Steel and ^^"ire Company was formed. The stock is very largely held by Kokomo and former Kokomo citizens. It is an independent company and is handicapped by being compelled to bu}- billets from the steel trust. The ciimpany has two plants, the fence plant on North street and the mill proper on West Markland avenue. They manufacture plain and galvanized fencing wire, wire rods, barljed wire, market wire, wire nails, staples, wire fencing, etc. They ship their goods to all parts of the L'nited States, Canada and Mexico. Both plants give employment to a large number of men. A. A. Charles is president: A. V. Conradt, vice-president : George \\'. Charles, treasurer, and J. E. Fredrick, secretary.

J. B. i\[ichener established the Star Machine ^¥orks on North Main street in 1874 and did a general repair business for various kinds of machinery, employing twelve men and doing a business of twenty-fi\-e thousand dollars per annum. After his death the business and plant passed into the control of the Standard Motor Company. This company continued the repair business and manufactured small gasoline engines and saw swedges. In 1904 the K., 'M. & ^^'. Traction Company purchased the plant for a repair shop and car laarns. In 1906 the Superior Machine Tool Company occupied the building used for the repair of machinery, being a building thirty by three hundred feet. The company is engaged in the manufacture of upright drills. They are in position to do all kinds of repair work and the building of special machinery.

Ford & Donnelly, at the corner of North and Buckeye streets, have been operating a machine and repair shop for many years. These machine and repair shops are very useful industries to the people of Howard county.

The Knerr Board and Paper Company's plant is located north of North street on the L. E. & W. Railroad, and is one of two like mills owned and operated by Cincinnati parties. The manufactures of the company are folding paper box boards, binders and trunk boards and double board used for bookbinders' and shipping cases. The plant employs seventy-five hands.

Jiorrow S History Kokomo Bale Tie Company

The Kokonio Bale Tie Company, formerly known as the Schild Fence Company, is located on North sti-eet hetween the L. E. & W. and the P., C, C. & St. L. railroads and manufactures the Schild fence, bale ties for baling hay and straw and fami gates, and is prepared to furnish standard makes of telephone and telegraph wires and wires for cement posts. The company handles plain and galvanized fence wire, barbed wire, nails and staples and high carbon coil spring wire. Fifteen men are employed.

Of the many industries not already mentioned and contributing to the industrial life and growth of Kokomo and to the prosperity of Howard county may be mentioned the Columbia Pottery and Manufacturing Company, north of Morgan street, on the L. E. & \y. Railroad : the Kokomo Brass Works, on North Smith street, the Kokomo Box Company, located on North Smith street, occupying the Petroleum Hoop Company's former plant; the Kokomo Hoop and Lumber Company, at west end of Mulberry street ; the National ?vlitten Works, East High street; the Ulrich Manufacturing Company, \\'all street; the Colonial Brick Company, East High street; the Kokomo Cash Lumber Company, West Elm, adjoining the L. E. « \\' Railroad ; the Pinnell-Stroup Lumber Company, Buckeye street between Elm and Broadway streets.

It is claimed that the manufacture of the Hoosier Standard grain measures is the oldest manufacturing business of the county. This was commenced at Greentown in 1853 by Joseph M. Loop and removed to Kokomo in 1877 and continued by John N. Loop, the son.

Floriculture

of Philadelphia, Pennsylvania, and engag'ed in floriculture on Enst Jefferson street in a modest \\a_\-. His business met a popular demand and grew rapidly until now he has seventy thousand square feet under glass, all fragrant with blooms of all kinds. ]\Ir. Coles does a large and profitable business. Mr. Coles is an active competitor at the state fairs for premiums in his department and wins a large share of the first premiums. Coles, the rose man of Kokomo, is giving the city a good name abroad. His place is known as the Maple Hill Rose Farm. Since Mr. Coles introduced the business into this community three other greenhouse plants have sprung up. Fred Kelly, on East Sycamore street ; Tom L. Knipe, on East Markland avenue, and W. A. Bitler, South Buckeye street.

That this business is doing a good work among the people of the city and surrounding country is evidenced by the many homes that are rendered beautiful and attractive througlmut the growing season by the many cultivated blooming plants surrounding the home and in the winter season by indoor blooming plants.

The Traction Company

The Kokomo, Marion & Western Traction Company is the successor of the Kokomo Railway and Light Company and was organized in 1902 and besides furnishing interurban trafific operates the city street car system, lights the streets of Kokomo and provides electric lights for the homes of her citizens. The street car track mileage of Kokomo is ten miles and six street cars are run upon these lines for the regular service. There are fifty miles of electric light wires in the city and fourteen hundred consumers of electricity for light and power, where five years ago there were but three hundred and fifty. The power house is a large brick structure along the E. E. & W. Railroad, rendering- it easily accessible with fuel.

The city is amply provided with a water works system taking water from a series of deep Avells in a seemingly inexhaustible supply of good water.

Kokomo and Howard county possess more of the material advantages of life and fewer of its disadvantages than almost any other like community. As has already been noted, its lands and improvements are of the very best : the city of Kokomo has a ver}' large number of very busy factories of the verj- best kinds, affording steady employment to thousands of workmen. While the greater number of her factories were built for the consumption of natural gas for fuel when the gas began to fail they were changed to bum coal and practically all are now fitted for burning coal.

Some eighteen years ago a belt railroad was built from the P., C. & St. L. Railroad around the south side of the city, reaching nearly all of the factories on the south side and providing them with convenient railroad facilities. The other factories of the city have been provided with railroad switches, spurs and side tracks until nearly all Kokomo factories are reached by railroad cars and can have coal direct from the cars. Rates have been made at the coal mines and \\ith the railroads until the factories are able to have cheap fuel.

The facilities for shipping coal to the factories here are good now, but promise to be better in the near future. The city in a little more than twenty years has quadrupled in population. All that country south of Wild Cat , which was farm land when the bit factory was located, is now improved city properties, with paved streets, city water and city lights and the bit factor,- itself, which was then

Kokomo Rubber Works Trouble Over Railrc-Vd Bonds

A matter over which there seems tn have been considerable dissatisfaction at the time, grew out of the building of the Indianapolis & Peru Railroad. It appears that the company lacked fifty thousand dollars of having money enough to finish the road to Peru and were unable to sell their bonds. The company therefore decided to ask the counties through which the road was being built to aid by loaning the credit ©f the counties, that is, while the railroad bonds could not be sold, the bonds of the counties could be sold. The company therefore proposed that if the counties would issue bonds and loan the money thus raised the company would reimburse the counties as soon as possible for the loan. In accordance with this plan, nn the 2 1st of August, 1851, C. D. Murray and William J. Holman. representing the company, came before the commissioners and asked them, for the county, to issue bonds to the amount of ten thousand dollars and take railroad stock to that amount on condition that the other counties raise the balance. The board took the matter under consideration until the next day. when they agreed to do so, provided the county could be indemnified against loss by any failure of the company.

To meet this condition the following persons entered into a written obligation to indemnify the county against loss in the ratio of the respective amounts subscribed by each, nn condition tliat if they had to pay the losses the stock should be theirs :

^^'hereupon the board ordered the auditor to subscribe for four hundred shares of stock at twenty-five dollars each, and that county bonds bearing ten per cent, interest and to run for ten years be issued to the amount of ten thousand dollars. The bonds were subse- Cjuently issued and were signed by Tence Lindley, Richard Nixon and John Knight. Certificates of stock were issued on delivery of the bonds.

At the December term. 1853. C. D. Murray, agent of the Peru & Indianapolis Railroad Company, came before the board and represented that the Peru & Indianapolis Railroad and the Indianapolis & Madison Railroad companies had consolidated their interests, that this consolidation was a sufficient guarantee for the payment of the bonds and interests due the county and therefore moved that the certificates of stock be canceled and the guarantors be released. The commissioners made an order in accordance with the motion; the certificates were surrendered as collateral and the giiarantors were released as securities.

The company for a time continued to pay the interest and partial payments on the principal. But the road was being operated in a new and sparsely settled region, which at best could furnish but a limited amount of business. Their business was not sufficient to pay a large operating expense and to pay ten per cent, interest on a large debt besides. The company therefore was forced into bankruptcy and the road was sold. The failure of the railroad company caused the county to lose the balance unpaid of the ten thousand dollars originally advanced to the company, which was about six thousand dollars, principal and interest. There was considerable criticism of the board for releasing the guarantors.

This criticism by those pioneers throws a strong side hght upon tliem. They have appeared heretofore as men of great generosity and broad sympathy for each other, that the privations of the new country had developed a spirit of broad friendship and unselfishness that rendered them incapable of taking advantage of another's generosity. It has been repeatedly asserted that they freely left their own work to help another without any thought of pay or help in return ; but here we have an instance of certain public-spirited citizens of the community, pledging large amounts for an entei-prise that will help the entire community all alike, and which will be worth many times its cost, being held responsible for this debt by their fellow citizens and the commissioners, who released them criticized for doing so.

It manifestly would have been unfair to have held these few men responsible, who were no more benefitted than others, for this debt when it was of vast general benefit to the whole county.

This instead of being reckoned a misfortune to the county, was probably the best investment ever made. It was the pioneer railroad and gave the county an early direct line to the business center of the state.

The Doxey Factory

Another matter over which there was much dissatisfaction was the Doxey factory matter. In the spring of 1874 C. T. Doxey, of Anderson, came before the city council and represented that he was looking for a location for a large factoi-y and that if Kokomo wanted it she could have it by offering proper inducement. After returning home he sent the following letter which more fully explains his sclieme :

"Gentlemen - Enclosed please find a plan of heading, sta\e and bent factory, which I have now arranged to put up at this place. The building will be brick, iron roof. Will be the largest and best arranged of any in the state and perhaps the best in the United States. Propose to make circled heading from beech and red oak ; lead keg staves and heading and oil barrel staves and heading. The above machinery will all be placed on first floor. The second story propose to use for bent work. My engine is from eighty to one hundred horse power ; will use two large boilers. The machinery to be all new or good as new. The factory will employ from forty to eighty hands besides those who may be engaged in cutting and hauling timber. It makes a market for your elm, red oak and beech timber ; and as have built three factories of this kind and have had four years' experience, and have had perhaps the largest trade in cooper business of any one in the state, think it would be safe in saying, 'It will be a success."

"Have a good location here and in locating at your city will be a loss in many ways. Would respectfully make the following proposition : If your city will donate five thousand dollars, one-half to be paid when building is completed and one-half when it is in operation, will locate at Kokomo. It may require from forty to sixty thousand dollars to carry on the business. Will bind myself to have said factory in operation by the ist of September this year. Would come at once. What action on the above proposition you choose to take, please do so tonight, as I have part of the machinery purchased and want to commence the building at once. Very respectfully yours. C. T. Doxlev."

was appointed to look after the matter. It is supposed to have acted favorably on the proposition, as we find this record, September 4, 1874:

"Gentlemen - Your committee which was appointed to examine the stave and heading factory of C. T. Doxey would respectfully report that said factoi-y is now in operation according to the terms of Mr. Doxey's contract. Signed by committee.

There was not a little opposition to making this donation by some of the most substantial citizens, who asserted that it was illegal and bad policy to hire factories to locate here with money from the city treasury. The other party contended that property would be benefited by locating factories here and that the only real fair way to subsidize them was by taxation. As there was an overwhelming sentiment for locating factories at Kokomo, and thus to increase industrial activity, the donation prevailed and Doxey's factory got the five thousand dollars.

The factory operated for a few years and then from some cause stopped. The machinery was moved away and for several years the silent buildings bore mute testimony to where Doxey's factory had been. The proprietors of Kirkpatrick & Scott's addition to Kokomo had made a liberal land donation to the factoiy expecting the operation of the factory would cause that part of Kokomo to build up. The closing of the factory stopped business in that part of town and there was no more market for lots. The closing of this factnrv was the sorest disappointment Knknmo has experienced.

In the abundant i^rosperity of the past twenty years and in the location of many much more important factories than Doxey's ever was she had well-nigh forgotten this experience. The historian now consigns it to a place with the window glass company and the strawboard company and is glad that these are all.

Early Financial History By Milton Garrigus

Like all other states of equal age, Indiana has tinkered with many kinds of currency and learned by bitter experience. An interesting and intelligent review seems to require starting with colonial times and tracing theories, trade, banking laws and panics in nation and state to 1861.

Great Britain required its American Colonies to trade exclusively with the mother country and to import manufactured articles in English ships, levied duties and required them to be paid in specie, forbade them to start banks, coin money, manufacture clothing, hats, iron or paper; to sell lands to any but British subjects, and to export only in English vessels. But the enterprising inhabitants built vessels and carried on a circuitous trade with the West Indies, thus obtaining Spanish gold and silver for use, and bartering exports for necessary supplies. This was the chief dependence of the colonies for turning their industries to account. England, in 1764, to- raise revenue, laid a lieavy tax on this West India trade. This led to a clandestine trade and. with other impositions, finally to the Revolutionary war.

ships or navy. A coast more than a thousand miles long to defend ; not a fort or fortification ; not a bank ; no money or treasury ; no army or mihtary supphes, and without credit, pitted against the wealth and prestige of England, the greatest naval power of the world. And we were also handicapped by a wilderness in the rear of our scattered settlements filled with murderous savages, ever ready to burn and massacre the settlers. We had no strong central government, only a loose confederation of independent governments. Congress was nearly powerless, a sort of advisory board rather than a legislature. The states were jealous of Congress and of each other. The most necessary and excellent measures could not be enforced. In war money is indispensable. Congress issued paper money, treasury notes, continental currency, as it had no constitutional power to raise money by taxation, and had no commerce. During the first year of the war six million dollars of paper were put in circulation; in 1776, nineteen million dollars more; in 1777, thirteen million dollars more; in 1778, sixty-three million, five hundred thousand dollars; in 1779, one hundred and forty million dollars; making a total of two hundred and forty-one million dollars.

To this volume was added the notes issued by the states. An inevitable increase in prices followed, with a depreciation of the value of paper money. In 1779 a dollar in paper currency was worth only twelve cents in specie, and a year later only three cents. All specie disappeared from circulation. Congress had pledged the faith of the nation to redeem this flood of paper. It repudiated its pledge and passed a resolution to redeem all bills of credit at onefortieth of their face value.

was an opponent of paper money. He estalilished the Bank of Xorth America at Philadelphia with a capital of four hnndred thousand dollars, which was of great service to Congress. The army was on the verge of starvation and nearly naked for lack vi shoes and clothes.

Coxventiox Of Delegates

The Confederation, without general authority and witli the conflicting interests and theories of independent states, was seen to be a failure. So a convention of delegates was called to re\ise the Articles of Confederation. It assembled at Philadelphia, with Washington as its President. It was found to be utterly impracticable to amend them, and the delegates fc^rmed a constitution, to be in force when ratified by nine states. At once two political parties were formed. Those who favored ratification were called Federalists, those opposed, Anti-Federalists. The leaders of the Federalists were Washington, Hamilton, Madison, Franklin, Harry Lee, Randolph. John ^Marshall and Jay. The Anti-Federalists were led by Patrick Henry, Richard Henry Lee, Samuel Adams. Jefferson. Elbridge Gerry. George Clinton. James ^Monroe and George ]\Iason.

Dissensions and irreconcilable theories of government existed between these parties. Hamilton advocated a strong go\-ernment. a national bank, a protective tarifif - in short, a nation with one supreme head. Jeflferson contended for state's rights, or state sover-

Hamilton at once proposed that the government should assume the war debts of the states, and proceed to fund the same, and to establish the national credit. He advocated a national bank nf the United States. Congress adopted his views, including a protective tariff. Daniel Webster said of Hamilton: "He smote the rock of the national resources and abundant streams of revenue burst forth. The fabled birth of Minerva from the brain of Jupiter was hardly more sudden than the financial system of the United States as it burst from the conception of Alexander Hamilton." He declared we should legislate for American interests, and so raised funds for the treasury by customs duties on imports. The national bank was established by Congress in 1791 with a capital of ten million dollars, the charter to run twenty years, and the government to own onefifth ()f the stock. The cimflict between the two schools, or parties, made a theoretical and practical \\-ar, which exists with some modifications to the present time. The Separatists, or State's Rights party, larought the Union to the verge of destruction by civil war. The national school which ^^'ashington and Hamilton founded has triumphed and the national principle is now supreme.

A National Mint

A nati<jnal mint was established in 1792 at Philadelphia for the creation of a uniform metallic currency, which had not theretofore existed, and the lack of which had caused great inconvenience. The metallic currency in common use in the United States consisted of a variety of English, French and Spanish coins - shillings, crowns.

dollars, moidores, joes, half joes, pistareens, picayunes and small Spanish coins of six and one-fourth, twelve and one-half, eighteen and three-fourths and twenty-five cents, respectively, which came handy for odd change. The paper currency consisted of thirteen kinds of notes, issued by as many different states. The system of coinage by the mint was the first monetarj' system of the United States. It was decimal, with the dollar as the unit. Both gold and silver were legal tender. The standard was double. The gold dollar contained 24.75 grains of pure gold, stamped in pieces of ten dollars, five dollars and two and one-half dollars, denominated, respectively, eagles, half-eagles and quarter-eagles. The silver dollar contained 371.25 grains of pure silver. The ratio was 15 to i, that is, the weight of the silver coins was fifteen times that of the corresponding gold coins of the same denominations that being the then market price, the mint price was made to correspond with it. Since that time the ratio has changed often, as the market price of the two metals shifted until the last few years.

When the charter of the national bank expired, in 181 1, the Virginia school of politicians prevented its renewal. The bank had been a great success, but they contended that it was unconstitutional. The want of such an institution was severely felt during the War of 18 1 2. The excellent currency which it had supplied to the country was withdrawn and its place taken by a currency issued by state banks, which quickly sprang into existence in large numbers. From iSii to 1 81 6 state banks increased from eighty-eight to two hundred and forty. The flood of paper which they issued could not be redeemed in specie. There was no penalty for refusal to redeem, nor any real check to prevent the issue of bills far beyond the legal limit, and most of the banks were compelled to suspend specie payments.

capital of thirty-five millions, instead of ten millions, and the government was to hold seven millions of the stock and to appoint onefifth of the twenty-five directors thereof.

The Federalists opposed rechartering the bank, while the "Anti's," then called the Republicans, heartily supported it - the two political parties having thus completely changed sides on this proposition. The bank was chartered for twenty years. The public moneys deposited in its vaults averaged six or seven millions, its circulation twelve millions and its discounts more than forty millions a year. Its annual profits were more than three millions annually.

The parent bank was at Philadelphia. It had twenty-five branches and more than five hundred employes, and they disbursed the entire revenues of the nation. Its stock often sold at forty per cent, premium. In every county of the Union and in every country on the globe were its stockholders. One-fifth of the stock was owned by foreigners, and one-fourth was held by women, orphans and by trustees of charity funds. So high and unquestioned was its credit, its bank notes were good as gold in every part of the country. A man could travel and pass these notes in London, Paris and in every place in the world without discount, and could sell them at a premium at the remotest commercial points.

The state of Marjdand attempted to ta.x the circulation of the national bank, but the Supreme Court of the United States, in the case of McCullough vs. Maryland, in an opinion written by Chief Justice Marshall, denied the authority of a state to pass such tax laws, and upheld the cnnstitutinnality of the bank and its charter.

and thus limited the authority of the states and exalted the power of the general government, greatly to the disgust of the State's Rights Republicans, who had rechartered the bank, and to the satisfaction cf the Federalists, who had originally chartered a United States bank.

Early Eaxks Ix Ixdiaxa

Indiana had no distinctive currency of its own. But in 1814 the territorial legislature chartered two banking institutions, one at Vincennes, which was to have a capital stock of five hundred thousand dollars, and one at Madison, with a capital of seven hundred and fifty thousand dollars. Their bills were soon put in circulation and added to the flood of currency that had been coming into the territory from the general government. When the war with Great Britain ended, the large disbursements by the govemment ceased, and financial distress followed. During the war specie payments had been suspended by the banks, which had issued far more paper currency than they could redeem. The general government had disbursed in this territor\- a large amount, most of it in bills of Ohio banks.

The constitutional convention in Indiana met and inserted a provision in the organic law for a state bank with branches, including the banks heretofore established at Vincennes and Madison, and making the bank of Vincennes the State Bank on January i. 1817, which was by act of the state legislature, with an additional capital of one million dollars, with enlarged powers. Of the ten thousand shares of new stock, three thousand seven hundred and fifty were reserved for the state. Branches were established at Vevay, Brookville and Corydon. The bank was badly managed and for its reckless proceedings the legislature, in 1821, by suit, canceled its charter, for the reasons that it contracted debts double the amoimt of its deposits and issued, with a fraudulent purpose.

more paper" than it liad the means of redeeming, and that it declared and paid large dividends to the stockholders while it was refusing to pay specie for its notes. This crash came while the state was still suffering from the great depressit.n following the end of the war with Great Britain. E\-ery kind of husiness was prostrated. It was estimated that during the years 1821, '22 and '2}, at least one-fourth uf the population died or removed from the state. Prior to that time the price of government land had been two dollars per acre, and Congress, thinking to stay the tide of disaster, reduced the price to cine dollar and a cpiarter per acre, which only added to the ruin, for it reduced, in the same proportion, all the land in the state held by individuals. In 1832 the state began its system of internal improvement. It borrowed several million dollars in the East, employed large numbers of men, started another artificial era of prosperity, and speculation ran rife again. Michigan had a very liberal banking law, and her banks issued bills in large numbers, while most of those banks had nothing to redeem the notes they issued.

The contractors on the canals and other public works in this state secured this cheap Michigan money and used it nearly altogether in paying their laborers. Thousands of dollars of this currency were paid out weekly by the contractors, and soon nodiing else was afloat in Indiana. The merchants were compelled to take it. but did so at a heavy discount, the laborers who earned it always getting the worst of the bargain. The merchants had to have it to pay their debts. Then merchants, millers and others issued bills, or "shin-plasters," only redeemable in merchandise at the store or mill of the issuer. These were of no value only in the neighborhood. Most of the millers and merchants became bank-

In 1834 the legislature chartered the State Bank of Indiana to run twenty-five years. It was modeled somewhat after the United States National Bank. It was a complete monopoly, for during its existence no other bank could operate in the state. It was to have a capital of one million six hundred thousand dollars in shares of fifty dollars each, and the state agreed to take one-half of the entire capital stock.

The state was to borrow the sum of one million three hundred thousand dollars. Of that amount eight hundred thousand dollars were to be used to pay the state's share of the capital stock, and the remaining five hundred thousand dollars were to be loaned out at six per cent, interest to individual subscribers to the stock, to assist them in paying for the same. The bank was required to hold the dividends on this stock and pay the same to the state in discharge of the interest accruing, and to reimburse the state for the loan. The bank was not at any time to suspend specie payment. The branches were to be mutually responsible for the redemption of all bills issued, but each branch was to have its own profits. No notes of a less denomination than five dollars were to be issued. The state was to elect the president and one-half of the directors, the stockholders to elect the remaining directors. The only tax that could be levied on the bank or its stock was provided for in its charter. This tax amounted to twenty-five cents annually on each one hundred dollars of the stock, and was to be deducted from the dividends and retained in the bank. If the bank failed to make money no tax was paid ! The panic of 1837 struck the country soon after the bank got into operation, and it was compelled to suspend specie payments, but its credit remained good and its bills were taken everywhere at their face value. The panic was a bad one. and business in all parts of the country was wrecked.

One who swung the cradle in wheat harvest received thirty-seven and one-half cents a day, or a bushel of wheat, at his option. In 1842 the legislature ordered the bank to resume specie payment, and from that date it was ready to meet all demands for the redemption of its notes.

A National Road

In President Monroe's administration Congress passed a bill appropriating the means necessarj^ for the construction of a National Road across the Alleghanies from Cumberland to Wheeling, and the state of New York took the lead in internal improvements by constructing a splendid canal from Buffalo to Albany, a distance of three hundred and sixty-three miles, at a cost of seven and a half million dollars, taking eight years to complete it. There was a great financial crisis in 1819, which disturbed and distressed the country.

In his first annual message President Jackson took strong grounds against rechartering the Bank of the United States. He thought it inexpedient and unconstitutional, and recommended that the old charter should be allowed to expire by its own limitation in 1836. The partisan elements of the country, which for some years had been whirling about in a chaotic condition, was resolved into two great factions of Whig and Democratic. The old Federalist party, under whose auspices the government was organized, had lost control of national affairs when John Adams retired from the Presidency, but it lingered along for some years. On the other side, the line of political descent had begun with the anti-Federalists, who, after opposing the national constitution and the administrative policy of Washington and Adams, became, under the lead of Jefiferson, the "Republican" party, but soon exchanged that name for Democrats. The arbitrary' measures of President Jackson alarmed tlie country and consolidated all opposition elements into a compact phalanx, known as \\'higs, under the leadership of Clay and Webster.

Surplus Fund Distributed

The national debt having- been paid, in October. 1833. President Jackson ordered the surplus accumulated fund of the United States Bank, amounting to about ten million dollars, to be distributed among thirty-five pet state banks, to be so distributed in four quarterly installments, reserving about five millions for government use; and it was so distributed between the states, i. e., the first three installments. The fourth was never distributed, as the government ran short of funds and had to issue and sell bonds to raise money to pay the expenses of the government.

The new state depositories were instructed by the secretary of the treasury to loan the money freely, and having millions to dispose of, which was easily borrowed, speculation spread with a furore : and with a hope of getting deposits of government funds, many banks were established in the various states. In 1830 there were only three hundred and thirty state banks in the country. By 1837 they had increased to six hundred and thirty-four, and the capital had expanded from sixty-one million dollars in 1830 to nearly two hundred and ninety-one million dollars in 1837. These were all banks of issue of paper currency which, in 1837, amounted to one hundred and fort}--nine million dollars. Behind this vast amount of paper money there was, in 1837, only thirty-eight million dollars of specie. The banks had loaned in proportion to their issue of paper. In 1830 their loans were two hundred million dollars, and in 1837 five hundred and twenty-five million dollars. The deposits of funds had been made among the states in proportion to their representation in Congress by President Jackson. The general idea seemed to be that the way to get rich and prosperous was for the country to establish banks, issue currency and loan money. The inflation of the currency, prices and debt-making went liand in hand. Everybody bouglit government land as the most promising investment, and paid for the land with bank notes. Again and again these bank notes went from the land office to the deposit banks as go\'ernment funds, and were loaned out again to the speculatoi's to buy more land. It was a perpetual circle. In 1832 the receipts from the sale of lands were two million six hundred and twentythree thousand dollars: in 1834 they were four million eight hundred and fifty-seven thousand dollars: in 1835, fourteen million seven hundred and fifty-seven thousand dollars : and in 1836, twentyfour million eight hundred and seventy-seven thousand dollars. Importation of foreign merchandise increased in the same enormous proportions. It was a universal carnival. In this way, on January i, 1837, the surplus for distribution to the states was thirtyseven million four hundred and sixty-eight thousand eight hundred and fifty-nine dollars. Xominally it was in the banks, but really it was in the hands of borrowers. The government took this surplus from the deposit banks to distribute it to the several states. The banks had to collect it. and a general collapse followed. Fortunes disappeared over night. The whole South was bankrupt. Tens of thousands of workmen lost their employment. Everybody was in debt.

Great Demand For Specie

The President sought to stop the exchange of public lands into "inconvertible paper." He ordered that nothing but specie should be received for public lands. This order created an extraordinary demand for specie, drew it from the great centers of commerce, where it was needed to uphold the credit of the banks, and this

Specie circular was the last straw on the back of the banks and commerce, and under it they went down. Indiana and all the other states suffered. The bills of the State Bank were the only good paper money. The state had borrowed large sums of money in the East to cari-y on its schemes of internal improvement. Specie was scarce and the state full of depreciated currency. Neither the people nor the state could get money. As a measure of temporary relief the legislature, in 1839, authorized the issue of state scrip to the amount of a million and a half dollars, to bear six per cent, interest and to be receivable for taxes.

This "scrip" was issued in bills of five and fifty dollars, had a dog's head engraved thereon and w-as printed on red paper, and was known as "Red Dog" currency.

At first this scrip was well received, but as it had no redeemer in prospect it soon was worth only forty or fifty cents on the dollar. The issue of scrip by the state led to further inflation of the currency. Merchants, millers, contractors on public works and plank road companies all went into the business of making paper money. The scrip was issued in bills as low as twenty-five cents, the highest being for three dollars. It was mostly printed on blue paper and was styled "Blue Pup" to distinguish it from the "Red Dog" of the state. Business men went down in the crash, and as most of the merchants were large purchasers of farm products, and owed large sums to farmers, their failures pulled down the farmers and the court calendars were mainly taken up with mortgage foreclosures. The most active men were the sheriffs, endeavoring to find buyers for property under foreclosures.

The United States constructed the National Road from Baltimore to Wheeling and a similar turnpike from Washington to \Mieeling. via Cumberland: thence through Zanesville, Ohio, and Indianapolis to St. Louis. It had been agreed by the federal gov- eminent that two per cent, of the proceeds of sales of land should be applied to the making of roads in Ohio, Indiana, Illinois, Missouri, Alabama and Mississippi. The Michigan road was surveyed in 1828 from New Albany to Michigan City. One mile wide along the same, of the public lands, was set aside by the government to pay the cost of making this road, and the sale was held in October,

183 1. The construction was begun, under the authority of the state, in 1830, and it was cut out two hundred feet wide. Ten alternate sections of land were granted by the general government along its route for the construction of the Wabash and Erie Canal, March 20, 1827, and its construction was begun in 1832. The sale of land was held at Logansport in October, 1830. The terms of sale were one-fourth cash, the balance on seventeen years' time, with six per cent, interest. The long time granted prevented the canal commissioners from realizing much with which to then go on with the work. The Indiana legislature passed a bill February 9,

A further grant of public lands was made by the government, seven miles in width, off of the west side of the Miami Reserve, to aid in the completion of the canal. This grant was made to the state. The state issued scrip, or wildcat money, on white paper, called "White Dog," from the figure and color of the paper. The state agreed to receive such paper in payment for said land, which was sold to individuals to be paid for in installments, with interest. This land was rapidly settled up.

Indiana Near Bankruptcy

out a great scheme of internal impro\'ements, and for several years had defaulted the interest upon her bonds. By this course her credit had been destroyed and the prosperity of the state seriously checked. Most of the bonds were held in Europe and the holders were clamorous for the payment of the interest, and the state was out of funds. The legislature passed an act for the settlement of the bonds on a new basis. J. F. D. Lanier, a noted banker, was selected to proceed to Europe and lay the proposition before the bondholders. His mission was successful and the load of debt was lifted.

In 1837, when the government called for the transfer (if a large per cent, of the government funds, then held by the banks, to Washington. Mr. Lanier was the selected agent of the State Bank to take eighty thousand dollars in gold to \Vashington. He went by steamer to Wheeling, and from there across the mountains alone in a stage-coach chartered for the purpose.

Under the authority of the constitution of 1852 the legislature, in 1853. passed a free bank law, and, in 1855, a charter was given to the Bank of the State of Indiana. Governor Wright vetoed both of these bills, but they were passed over his veto. The panic of 1857 occurred throughout the country. \\'ithin a very few years after this new bank law passed many banks were started in Indiana, one of which, "The Indian Reserve Bank." was located in Kokomo, at the southeast corner of the public square. David Foster was president and Harles Ashley was cashier. It was supposed to have been robbed one night, and it ceased to exist. Banks sprung up everywhere, and the state was fairly deluged with a flood of practically worthless currency issued under this general banking law. Many of them had no banking house or actual place of business. They made no pretense to being banks of deposit, their only mission being to issue and float bills. A few men would get together.

pnrcliase a few thousand dollars' worth of the depreciated bonds of some far-away municipality, deposit them with the auditor of state and receive authority to manufacture paper money. They would issue bills to an amount two or three times greater than the value of the securities deposited, put them in circulation, and these bank officers and directors would disappear, leaving the holder of the notes to mourn their disappearance. The discount of the notes changed almost daily, so that the bill worth eighty cents today might bring only sixty cents tomorrow. This money was called "Wildcat." This flood of money caused reckless speculation. Every merchant or business man had to keep for ready reference a periodical known as a "Detector and Bank Note Reporter," in which the rates of discount on the bills on the various banks were daily given.

Many thousands of dollars were lost by the people who had accepted these "shin-plasters" as money. Merchants, millers and other traders issued them. The banks failed one after another, and as their notes and other worthless currency had driven all the good currency out of the state the result was very disastrous. Business was checked at once, all building stopped, new enterprises were smothered and old ones crippled. Nobody would take the "free bank" money, and as there was no other in circulation in the state, nobody could pay debts.

The people of the United States are, or should be, so happy and thankful that the country has finally escaped from the ocean of troubled finance and stands today on the solid ground - the "gold standard" - and all our currency as good as gold the world over.

We are a Nation, not a Confederacy of sovereign states. The school of experience has been a costly one, and all our people should profit by it.

As stated in Mr. Garrigus' article, the Indian Reserve Bank was the first bank organized in Howard county. The exact date of its organization and the date of its closing are not known, but appear to have been in the years just previous to the breaking out of the Civil war. Rumor says that one night while one of the bank officials was asleep in the bank building, some one stole in and took fifteen thousand dollars' bank funds ; that Howard county had funds on deposit there and lost.

No Banking Facilities

The bank of Thomas Jay & Company was organized early in the year 1861, and was the direct outgrowth of the coming to Kokomo of Thomas Jay, Rufus Dolman and Ithamer Russell, business men who associated themselves together as a firm for carrying on several lines of business. The town was without banking facilities and to meet this urgent need they began a private bank and continued it for several years, until after the organization of the First National Bank of Kokomo. These men contributed very largely toward the industrial development of Kokomo for many years. Thomas Jay was perhaps the leading man of the finn, and was not only active in promoting the several business lines in which the firm was engaged but actively assisted in public affairs, contributing liberally of money and assisting in various ways to help Howard county do her full share in the war of the Rebellion, and later as a member of the common council of the city of Kokomo worked for her interests. Ithamer Russell was pre-eminently the

Rufus Dolman, not so pronounced a hustler as Mr. Jay, nor so familiar a figiu-e in the banking houses of Kokomo, was a man in whose word and judgment the citizens of Kokomo and Howard county had great confidence. Rufe Dolman commanded the respect of the community to a marked degree. The several qualities of these men have been transmitted to their sons in marked degree.

The First National Bank of Kokomo was organized in 1865. This was the first bank organized in Kokomo under the government banking laws, with which a later generation has become so familiar as to consider the system a necessity and to regard it a matter of wonder how the people had a banking system without it. The charter was for twenty years, and at the expiration of the charter the stockholders, not wishing to continue the business, it went into voluntary liquidation and closed out a successful business career. This bank was located much, if not all of its time, in the southwest corner room of now the St. Francis Hotel. Mr. Russell, with his long, flowing beard, was a familiar figure at the cashier's desk.

The Howard National Bank was organized in 1879 with a capital stock of one hundred thousand dollars. The most active and influential men in organizing this bank were Richard Nixon, Samuel Davis, Nathan Pickett and A. F. Armstrong.

Nathan Pickett, except for a few months, in which Richard Nixon served as president, has been president since its organization. Richard Nixon, who took an active interest in its organization, except for the few months referred to above, held no other official position than that of one of its directors. Mr. Nixon was one of the county's earliest and most influential pioneers and was prominently connected with the county's commercial life, first engaging in business at New London and later in Kokomo. He also took an active interest in the churches and schools of the city antl was in ever)- way a worthy citizen, ^^'illiam P. Vaile was the earliest cashier. He resigned and went West and was succeeded by John A. Jay, who served in that position many years. After Air. Jay's promotion to the vice-presidency Ernest George was chosen as cashier.

The bank was located for many years in the Armstrong block, on the south side of the square. It was removed to a home of its own when the building at the northeast corner of the scjuare was completed. The first charter expired in 1899 and was renewed, the capital stock remaining the same. In the first }-ears of its history much of the capital stock was held abroad. This stock has since been bought by local parties and the stock is now held at home. In 1907 the surplus having increased to one hundred and fifty thousand dollars, one hundred thousand dollars of it was used in increasing the capital stock to two hundred thousand dollars. This bank is also a United States depository.

The Citizens' National Bank of Kokomo was organized October 8, 1889, with a capital stock of one hundred thousand dollars, and in December, 1907, was increased to two hundred thousand dollars. This bank is a United States depository.

The stock is owned entirely by Kokomo parties. Handsome dividends have been paid regularly. In eighteen years the surplus had grown to one hundred and fifty thousand dollars, and on the 1st of June, 1908, after increasing the capital stock one hundred thousand dollars, there remained fifty-four thousand dollars surplus.

'I'heir bank building- is at the southwest corner of Alain and [Mulberry streets. Richard Ruddell has been president of this bank since its organization. Mr. Ruddell had been a citizen of Kokomo and an active business man several years before becoming president of this bank. Formerly he had been a member of the Ruddell Brothers' Dry Goods Store Company at the northeast corner of the public scpiare.

The officers now are : Richard Ruddell, president ; George W. Landon, vice-president; Frank McCarty, cashier; R. F. Scherer, assistant cashier.

The Ivokomo National Bank was organized July 15, 1902, with a capital stock of one hundred thousand dollars, divided in the beginning among about five hundi'ed stockholders widely scattered over the city and county. This bank was promoted by George E. Bruner and John W. Barnes. George E. Bruner was the first president; John \V. Barnes, cashier; and Lex J. Kirkpatrick, vicepresident. January i, 1904, E. E. Springer succeeded Bmner as president. The year before Barnes had retired as cashier and E. E. Sanders chosen as his successor. W. A. Marsh was elected cashier and became Sanders" successor March 14, 1905. The stock has l)een considerably consolidated but is still largely held by residents of the county. One block only is held outside of the county and but three stockholders live outside of the county. Tlie bank is in a prosperous condition, is excellently located and is finely equipped. E. E. Springer and W. A. Marsh are president and cashier respectively. W. A. Marsh is a recent acquisition to the citizenship of the county, coming from Bluffton in 1905. E. E. Springer has been a resident of the county since childhood. He moved to Kokomo in 1884 and engaged in the real estate business and was very successful. He has been recognized as one of the most upright and solid business men of Kokomo for years.

Other Banks

In 1873 the private bank of ^^'aIker, Welsh & Company was organized with a capital of thirty thousand dollars. A. B. Walker was a well-known and highly respected citizen of the county. Mr. I. N. Welsh was a business man of good reputation of Eaton, Ohio. They did a good deposit and loaning business. They were not permitted by law to issue notes. During the panic of 1873 and following years, the bank's funds became tied up in real estate in such a manner that they could not be realized upon to meet the demands of depositors and the bank made an assignment, naming J. F. Elliott as assignee in the year 1878, who settled its affairs and closed out its business.

The Kokomo Ti'ust Company was organized December 3, 1902, with a capital stock of thirty-five thousand dollars, and on April i, 1906, was increased to fifty thousand dollars. It has a surplus fund of thirty-eight thousand four hundred and forty-two dollars after paying dividends. The departments of this company are the savings bank department, where money is received on deposit in three different ways : on certificates of deposit, on savings account and on checking account, on which interest is paid, but no commercial or active business account \yill be taken; second, the loan department, where money is lent on first mortgage security or good collateral, and where bonds, mortgages, and so forth, are bought and sold ; third, the insurance department, where fire, accident, plate glass, employers' liability, surety bond, and so forth, are written carefully and in the best companies; fourth, the real estate department, where they buy and sell real estate on commission and where their officers may be consulted freely as to values; fifth, the trust department, which manages all kinds of business of a trust nature. such as administrator or executor of estates, guardian, trustee.

receiver, commissioner, agent, and so forth, the services of which will be found much more desirable and the cost of service much more reasonable than that of an individual in this capacity; sixth, the renting department, where the company will take entire care of the renting of property, paying taxes, making repairs, and so forth, for nominal charges. The company is located on the west side of the square, opposite the courthouse. J'lmes D. Johnson is president ; W. E. Blacklidge, vice-president ; Fred. L. Trees, secretary-treasurer. The directors are William C. Purdum, C. A. Dolman, William H. Turner and Ed. S. Moore.

The First National Bank of Russiaville was opened as a private bank in 1898 by John H. Cox, R. C. Kincaid, T. L. Harris, Sheridan, Indiana, and John H. Collett, Indianapolis, with capital of seventeen thousand dollars. It was organized as a national bank in 1900, vvrith capital of twenty-five thousand dollars, and had lately fourteen thousand dollars surplus and undivided profits, with one hundred and two thousand dollars deposits. It owns and built its own banking house in 1900. The stock is now practically held by Russiaville citizens. R. C. Kincaid is president and H. M. Brubaker is cashier.

Strong Financial Institutions

Kokomo and Howard county are certainly fortunate in having in their midst such carefully managed and safe financial institutions, where their citizens can deposit money and be sure that it is safe and can be had again for the asking ; places where they can go when in need of money and upon giving reasonable security can be accommodated. These banks all receive deposits subject to check or certificates of deposit and issue letters of credit on foreign banks and do a general banking business, such as making loans and dis- counting- gilt-edged paper, etc. They have passed through the periods of panic without Inss to anyone. While the stress of the money famine of October, 1907, was on, the banks and trust company organized a clearing house association and issued certificates guaranteed by all. The association was protected by the deposit of gilt-edg'ed securities from the several members of the association. The certificates, while not currency in the fullest sense, were local currency ; that is, the local business concerns accepted them in payment of bills and factories used them in payment of wages and redeemed them as soon as their money was released from the large banks in Indianapolis, Chicago and New York.

During this period, while many depositors were nervous to the extreme lest they should lose their earnings, the Kokomo Trust Company called three disinterested citizens of Howard county to carefully audit their books and report to the depositors the actual financial condition of the company. They did so and found, and so reported, that the surplus was as large and all the securities were gilt-edged and that the affairs of the company were such that nothing short of a calamitous shrinkage of values would endanger the deposits of anj^one. A like examination of any one of the banks would doubtless have shown a like state of affairs. It is but simple justice to say that the financial houses of Kokomo and Howard countv are first class.