Columbia Township (part 3 of 6)

During this time W. C. Barnhart was showing his hand as an organizer in the schools of Columbia City. He made no pretense of diplomacy but met the situation in a square fight, and to him is due the credit of bringing order out of the rather chaotic state into which want of organization had permitted the city schools to grow. He reduced the grades into a definite system and reorganized the high school to retain its commission. At the end of three years though doing splendid work he had made enough enemies to call for his successor and John C. Kinney was named in his stead.

Near the close of this administration James B. Humphreys came to Churubusco and was employed as principal of the town schools. He organized a few classes in the "higher branches" ; taught algebra, rhetoric and natural philosophy to the students who cared to do "advanced work" and to this beginning the high school at Churubusco owes its origin.

The trustees met in regular session in June 1885 and elected Alexander Knisely, countv superintendent of schools. That Mr. Knisely was the right man in the right place at the right time there has never been the slightest doubt in the minds of the people. No one in the history of the county has ever brought to the office hardier courage, better judgment, and a keener sense of honor. Gifted with a personality that was positive and unflinching, he set his face to the task of making teaching a distinct and separate problem for every teacher individually. He outlined and published the first course of study and made school work throughout the county uniform. He had a unique method of encouraging self-criticism 011 the part of teachers by putting his observations in question form, and the terse and pointed letters that the lagging teacher might expect seldom failed to hit the mark. Eighth grade commencements were held in every township: competitive declamatory exercises grew out of these among the children ; rousing school exhibitions were held at the count}- seat : and in every way the boys and girls were encouraged to do their best. County institutes were held during the mid-winter holidays for which the best instructors were employed and patrons attended in large numbers while teachers were required to render punctual attendance. Mr. Knisely's devotion to the cause of education is shown by his spending most of his own salary in the administration of the office.

The South Whitley high school was organized in 1886, and G. M. Naber was placed in charge. The following year the town was dignified by the construction of what was then the finest school building in the county ; and this material equipment made it possible for South Whitley to maintain educational leadership in the count}- f< >r a number of years. In 1888 L. H. Price was chosen principal, taught for two terms, and was succeeded by J. D. Merriman. In 1890 G. H. Tapy organized and taught a normal school in the G. A. R. Hall in the town of Etna and began work with fort}- pupils. He arranged to continue the school but at the close of the first term he was elected principal of the South Whitley high school.

W. C. Palmer became superintendent of the Columbia City schools in 1885 and for six years followed a vigwous policy in the administration of school affairs. The enumeration of children for school purposes in 1887 was 6,005. the highest mark in the history of the county; and this evidence of prosperity made imperative the construction in 1889 of the West Ward school building. \Y. W. Williamson in 1888 was chosen principal at Churubusco. He believed in the virtue of discipline; and. quoting his own words, "Government more or less civil constituted the center of the course of stud}-." His successor was A. R. Thomas, who held the position for three years.

M. Naber. Mr. Naber was a graduate of the State Normal School and during his incumbency gave methods of instruction much attention. A short time" prior to his election the new text book law became operative under whose provisions uniform books at practically half their former price were furnished under state contract upon the requisition of the township trustees and boards of education. The county superintendent became the accountant and was made responsible for the record of sales and remittances of these books. Mr. Naber proved a faithful official and devoted much of his time to the actual "field work" among the schools. He organized the "Teachers' Association" which held its annual meeting <m the two days following Thanksgiving Day, and he changed the date of the o mnty institute to some week in the autumn before the opening of the public schools. He developed the Teachers' Reading Circle in the institutes and encouraged the establishment of Young People's Libraries in every school district. In continuing the policv of his predecessor Mr. Naber intensified the work of teaching and his own energetic and tireless efforts were reflected by his teachers. In 1 89 1 P. H. Kirsch was chosen superintendent of the Columbia City schools. Though the details of school work were irksome to him he was in many respects an able man. having made original researches in biology and becoming an authority in ichthyology. The school enjoyed a gradual gr< iwth under his supervision and he was followed in 1897 by Miss Luella A. Melhinch. During this administration the principals at Churubusco were U. W. Keplinger. Paul Wilkie, L F. Chalfant, and G. H. Mingle. Each contributed to the organization of a three years' high school In 1895 G. H. Tapy was promoted to the superintendence- at South Whitley.

Burnside Clapham, who was also a graduate of the State Normal School was elected county superintendent in 1897 and held the office one term. He was decisive in character, positive in his convictions, and uncompromising toward opposition when he believed himself to be right. In 1897 a 'aw was enacted by the general assembly giving an applicant for teacher's license the option of having his papers graded by the county superintendent or the state superintendent. -The term of office was also lengthened to four years. Mr. Clapham gave his attention largely to grade work, making it his policy to withhold children from the high school until they had thoroughly mastered the work of the grades. He took an advanced position on school architecture, assisting Trustee J. L. Creager of Washington township, in constructing in district No. two the finest district school building in the county. In 1898 the South Whitley high school was commissioned and the same vear C. L. Hottel was chosen superintendent at Columbia City. He held the position seven years, giving the schools a quiet but safe administration. During this time the enliillment due to transfers from the country and promotions from the rural high schools leached one hundred twenty pupils, and the hig'h-school corps was correspondingly increased from two to five teachers.

In 1899 George H. Tapy, a graduate of Wabash College, was elected count}- superintendent. He at once began the solution of iwo Cuming problems; - the establishment of local high schools and the consolidation of the district schools that had become too small to do good work. Early in 1902 the people in Washington and Jefferson townships held mass meetings and decided to erect a high school building at the center of each township. "" The following year meetings were held in Etna township which resulted in a petition signed by ninety-five per cent, of the taxpayers asking the trustee to erect a commodious schoolhouse and to consolidate all the schools of the township. A little later Trustee Hugo Logan enlarged the school facilities of the village of Collamer by building a modern structure and transported to it the children of the adjacent districts. Additional teachers were added at Collins and in 1906 Trustee Elmer Nei contracted to have built a beautiful and commodious building at Coesse to accommodate all the school children of Union township. A high school had been previously organized at Larwill and for these schools a uniform course of two years' and three years' work was arranged through which all students could be regularly promoted into the graduating classes of the commissioned schools in Churubusco, South Whitley, and Columbia City. Bad roads are yet a hindrance to transportation but the intelligent and prosperous people who live in the country are awake on the subject of education and are demanding school facilities for their boys and girls equal to those of the city. During this administration the qualification of the teacher was gradually raised from proficiency in the common branches to graduation from the high school, and this broader view of school work is bringing with it better results.

In 1899 D. H. Richards became principal at Churubusco. The next year his successor, Claude Beltz, was given the title of superintendent, an additional teacher was added to the high school, and in 1903 the high school was commissioned by the state board of education. Mr. Beltz was followed by L. L. Hall and J. W. Colburn. At South Whitley O. H. Bowman, J. W. Coleberd, and W. W. Strain took charge in the order named. In 1904 the enlarging school sentiment in the county, and city demanded the construction of the magnificent building" in Columbia City now used exclusively for high-school purposes, the schools of the city at once leaped into a class with the best schools of the state, and M. W. Deputy, an energetic, scholarly man, placed in charge. The schools of Whitley county today rank high in Indiana. They have more than kept pace with the material development of the county. When we look back over the experiences, trials, failures and successes of seventy years we feel an honest pride in our attainments and our hearts grow warm in the faith of a yet brighter da}-. Old things have passed away and all things have become new. Our fathers looked forward to the realization of the thing's contemplated in their wise system, and we can prove ourselves worthy or our sires only by keeping our faces to the future in the anticipation and achievement of still better things for our sons and daughters.

What the future may bring does not concern the historian but lies within the domain of prophecy. But if the "signs of the times" are rightly interpreted the day will sometime come when one splendid and cornhand as well as the head, and above all modious school located in the midst of beau- where the true teacher will follow the pretiful grounds will grace the center of every cept and example of the Great Teacher in

Military History

The first military organization in Whitley county was a company of cavalry, of which each furnished his own equipment and mount. Then, 1852 to 1855, were organized a company of infantry and a battery of artillery and some of them were still in existence at the outbreak of the Civil war. They were for home protection and amusement, it affording the "young bloods" an opportunity to meet, have a good visit and show their ability as soldiers. It may be said that it was largely due to these volunteer organizations that Whitley county was able to furnish its full quota of soldiers during the Civil war, the training and military spirit of the former organizations had its effect and a strong martial spirit existed.

After the Civil war there was organized in the county a company of infantry with headquarters at South Whitley (Springfield) and was made a part of the state militia, the equipment being furnished by the state, though each individual member supplied his own uniform.

Among those who have lived in Whitley county who served in the war of 18 12 was David Hemmick, who was orderly under General Harrison. Thomas Walker.

who lived west of Columbia City, served in a Virginia regiment, as did James Jones. John Jackson, William James and a Mr. Maring were also soldiers in that memorable war.

Mexican soldiers who have resided in Whitley are Thomas Keeley, John Sleesman, William Smith, Joseph Crow, James Van Ness, Edward McMahon, Peter Mc- Mahon, William McMahon. Peter Howell, James E. Sargent and a Mr. Disbrow.

Without attempting to analyze the various views held by citizens at the outbreak of the Civil war, it is sufficient to say that the great body were in accord with the suppression of the rebellion and took early action toward advancing the Union cause. Stirring editorials in the Republican and the News, a Democratic paper, led to enthusiastic meetings where patriotic speeches were made and resolutions passed pledging loyal support to suppress the rebellion. A volunteer company was enlisted, its roster appearing on another page.

Liberty poles were raised in every township, great gatherings of people attending and dozens of flags could be seen flying to the breeze from a central point of vantage. May 7. 1 86 1, the ladies presented a silk

This company was attached to the Seventeenth Indiana Regiment and was sent into West Virginia. I. B. McDonald, who went out as its second lieutenant, an uncompromising Democrat and the third man to enlist, wrote stirring and patriotic letters that produced effect when read at home; and soon other companies were being raised. October 17th Captain Cuppy's company, which became Company E, Forty-fourth Indiana Volunteer Regiment, and which was raised largely in Richland township, marched from South Whitley to Columbia City, where it took rail for Fort Wayne, the rendezvous of the regiment, and was mustered in November 22, 1861.

November 21, 1861, Captain Peter Simonson secured the mustering in of the Fifth Indiana Batten- Light Artillery, which had been raised largely by Judge James C. Bodley. who had but recently served as judge of the district court and who became Captain of Company K, Eighty-eighth Indiana, and who later lost his life by the explosion of a cannon while at home and assisting' in the celebration of some war victniw.

At the time of the first draft Whitley count\- was posted as being about one hundred and fifty men short. Though by special efforts this was reduced to about twentyfive, who were provided for by draft. Scenes similar to what were witnessed in evenstate transpired : but the quota was filled without serious difficulty, the district marshal keeping the necessary machinery in motion.

Considering the influences and the rabid condition of the public mind, so many not yet being settled in policy, no future citizen of this county may blush for failure to thoroughly perform the duty demanded of its people. Nearly one thousand men went from the small county, a remarkably small number of them acting otherwise than to reflect credit and honor upon its escutcheon.

While no Whitley county men attained remarkable distinction, a few were promoted to responsible position. I. B. Mc- Donald was made a captain in the regular army by President Lincoln, served with distinction on the staff of General Milroy and final!}- was promoted to be lieutenant colonel of the Sixth West Virginia Veteran Cavalry.

Captain James C. Bodley was advanced to be major of his regiment. Captain Stough. the first man to enlist in the count}-, was a man of great patriotism and was made major in the field for gallant service. He was captured, confined in Libby and while there was promoted to lienteuant colonel, but never wore the bars, as he gave up his life while still a prisoner. October 29, 1863.

Idic drafts of Jul}- and December. 1864, demanded four hundred and eighteen men from Whitley county. Strenuous efforts were put forth by the citizens and the bounty was increased so that $1,192 could be had for one year's sen-ice. As drafted men received no bounty, the inducement was such that this county soon filled its requirement and these drafts did not affect it.

were appointed superintendents of soldiers' families and to provide for their wants: Cleveland, B. H. Cleveland ; Richland, A. F. Martin; Troy, A. M. Trumbull; Washington, Martin Bechtel ; Columbia, F. H. Foust ; Thorncreek, H. S. Cobaugh ; Jefferson, John W. Crowell ; Etna, Alanson Tucker : Union, Francis Mossman ; Smith, Francis Tully.

They were ordered to make inquiry into the condition of soldiers' families and report to the county auditor what was necessary for their support and should register name of wife or other person in charge of the family and auditor then to draw orders accordingly each month as long as the necessity existed, not more than three dollars per month for wife and one dollar for each child.

In addition to what the county did for soldiers' families nearly every township had regular organized societies looking after soldiers' families, furnishing them necessaries of life as well as money. Richland township was the first township to organize such a society, October 23, 1861.

When the war ceased. May 1, 1865, Whitley county had put ninety-two more men in the field than the calls of the President had required, all told. Every other county in northern Indiana was seven to eighty-nine behind their quota.

The Eleventh Indiana Regiment contained several Whitley county men and did excellent service early in the war. particularly at Forts Henry and Donelson, at Shiloh. Corinth, Yazoo Pass, siege of Vicksburg and later in the battles of Winchester and Fisher's Hill.

Whitley county, first fought at Greenbrier, Virginia, and then at Corinth, Mississippi, against Forrest and Bragg. In February, 1863, it was mounted and armed with Spencer rifles. It was prominent in all the most sanguinary battles of the Atlanta campaign, was active in "the Wilson raid" and without aid captured Macon, Georgia, securing one major-general, three brigadier-generals, three thousand prisoners, sixty pieces of artillery, three thousand small arms, etc. It had a glorious record anil one to which any descendant of one of its soldiers may point with pride. It was and is an honor to have belonged to the Seventeenth. Company E received seventy-five recruits during its service, as is seen in its roster, which is here appended.

The Forty-fourth Regiment, of which Company E was from this county, had also a creditable record. Captain Cuppy was killed, as was George Weemer, first lieutenant. Oliver P. Koontz and William H. Hildebrand were his successors in command.

The regiment was mustered into service November 22, 1861, under Colonel Hugh B. Reed. It suffered severely in the attacks on Forts Henry and Donelson, being under fire constantly at the latter place from the thirteenth to the 1 6th of February and on the evening of the 15th it forced General Buckner back into the fort as he made a sortie to escape and charging up the works where its heaviest loss occurred.

In the two days' battle of Shiloh it lost thirty-three killed and one hundred and seventv-seven wounded. It had long, arduous marches after Perryville. It was in Stone River. Chickamauga and Mission Ridge, losing eighty-two killed, wounded and miss- ing in these last two battles. In October, 1863, the regiment was detailed for provost duty at Chattanooga and there remained till mustered out in September, 1865. It lost three hundred and fifty killed and wounded and fifty-eight by disease.

Company B, Seventy-fourth Indiana Volunteer Infantry, Captain James E. Sargent, was mustered in August 21, 1862. Captain Sargent was a Mexican soldier, became a saddler in Columbia City and was the second man to enroll for service in the rebellion in Whitley county. He was first lieutenant of the first company, resigning to raise another company, which he commanded until the close of the war. He died in recent years at Fort Wayne. No more gallant man is credited to Indiana.

The Seventy-fourth pursued Bragg in Kentucky and fought the famous John Morgan. It occupied Gallatin, Tennessee, and was active in the Tullahoma and Chattanooga campaigns. It was one of the first regiments engaged at Chickamauga and one of the last to leave the field, where it lost twenty killed and one hundred and forty wounded and missing. It lost eighteen killed and wounded at Mission Ridge. It fought at Buzzard's Roost, Dallas, Kenesaw and Lost Mountain. At Jonesboro its brigade carried the enemy's works, capturing four pieces of artillery and seven hundred prisoners. It marched with Sherman to the sea, on to Savannah, Raleigh and Richmond, rounding out a remarkable record with a final march in the "grand review."

where it suffered a severe loss. Its action was such as to draw commendation for its steadiness and good conduct from Rosecrans. The enemy retreating, the regiment lay at Nashville till it moved in December to participate at Stone River January 1st, 2d and 3d, 1863, making the final charge late on the third, driving the enemy from its cover, its colonel, Humphrey, being among the wounded. Lying at Murfreesboro and Winchester it was ready for its brush with General Polk's command at Dug Gap, Georgia. Its division was first to open the battle of Chickamauga on September 19, forming after two days' engagement Rosecrans's rear guard on the retreat to Chattanooga.

Its charge at Mission Ridge brought compliments from General Thomas, it being one of the first to plant its flag on the enemy's works. It pursued and captured a battery at Ringgold, Georgia.

It felt the heaviest fighting in the Atlanta campaign, including Tunnel Hill, Buzzard's Roost, Resaca, New Hope, Dallas, Kenesaw, Chattahoochie. Peach Tree Creek. Atlanta, Utoy Church and Jonesboro. It pursued Hood for two hundred, miles, retraced its march and on to Savannah. In advance, March 19th, it was attacked at Bentonville, where it experienced one of the hottest little fights, losing thirty-nine men. It, too, marched before the national officials and on every hand drew shouts of praise.

Company F. One Hundredth Indiana Volunteer Regiment, under Captain Abram W. Myers, Colonel Sanford J. Stoughton, went out November. 1862, was in the Vicksburg campaign and with Sherman at Jack- son. It turned the flank of Bragg's army at Trenton, Georgia; at Mission Ridge it lost one hundred and thirty-two men killed and wounded. In the Atlanta campaign it marched and fought for one hundred days.

Company D, One Hundred and Twentyninth, Captain F. M. McDonald, served creditably the last year of the war. Its severest service was in pursuit of and battles with Hood, losing heavily at Franklin. It was transferred to Moorhead City and after a fight at Wise's Forks did provost duty at Charlotte, North Carolina, till mustered out in August, 1865. - John H. Slagle commanded Company G, One Hundred and Forty-second, which served in the battle of Nashville, where it did duty till July, 1865.

The One Hundred and Fifty-second was organized March 16, 1865, under Colonel Wheldon W. Griswold, Company I, Captain John M. Albright, being from Whitley county- Its service was post and garrison duty in Virginia, Charlotte, Stevenson Station, Summit Point and Clarksburg till August 30, 1865.

The Fifth Indiana Battery, Light Artillery, Captain Peter Simonson, Henry Rankin first lieutenant, Alfred Morrison, second lieutenant, consisted of six guns and one hundred and forty-eight men, mustered in November 22, 1861, and December 26th was at Louisville, where it joined Mitchell's Division, Buell's army. April nth it occupied Huntsville, Alabama, capturing stores and three railroad trains. Two guns were put on platform cars, run ahead of engines for seventy miles each way on the Memphis & Charleston Railroad, destroying bridges in return. Only instance on record of reconnoisance by railroad of artillery in enemy's country. August 24th had six hour artillery fight at Stevenson, where it was sent to protect removal of government stores, which was done under its cover. Fired six hours at Chaplin Hills and November 31st at Stone River lost heavily. The commanding general reports : "Captain Simonson managed his battery with skill and courage, doing good execution. Lost two guns, but not till horses had been killed and guns rendered useless." At Chickamauga lost one man killed, nine wounded, two prisoners, twenty-six horses, two guns. At Waldron Ridge had to haul guns and caissons up hills with ropes, one hundred men to the gun, but made three and a half miles in one and onehalf days. Held that commanding position till February' 24th, when assigned to Stanley's division. During Atlanta campaign battery constantly - in the front - Tunnel Hill, Rocky Face Ridge, Resaca, Adairsville, Kingston, Cassville, Pine Mountain, Kenesaw Mountain, New Hope Church, Peach Tree Creek. Atlanta and Jonesboro.

Peters Simonson was a civil engineer and came to Columbia City to assist in the survey of the Pennsylvania Railroad. He was in command of all artillery in General Stanley's division. No braver man ever lived. One of the Rodman guns of this battery fired the ball at Pine Mountain that killed the famous Bishop General Polk.

Dougall. mustering officer, and Michael Sickafoose, post commander. Comrade Daniel Meyers suggested the name George W. Stough, which was accepted. The post has continued in a flourishing condition, its commander at present being D. R. Hemin ick.

This list is from Col. I. B. McDonald's private record, heretofore unpublished, and is the only complete roster of Whitley county soldiers in existence. The Colonel has spared no time or means to make it perfect and complete. It has had his great care and attention for more than forty-four years.

Company G. I. N. G.

A company was organized through the efforts and influence of John Adams, then postmaster at Columbia City, also an aide on the staff of Governor Claude Mathews with the rank of lieutenant-colonel. In the organization he spent much time and money and can feel well paid for his efforts as the organization still exists. This company, consisting of three officers and fifty men, was mustered into the state service on the 28th day of June. 1895, becoming Company C, Fourth Regiment Infantry, till April 26. 1898. The state furnished all equipment and paid all expenses, but the officers and men received no compensation unless when called into active duty. During the spring of 1898, when the call was made for volunteers to serve during the Spanish-American war. this company was among the first to respond. The call was made at 1 1 :3c p. m., April 25th, an,d this company was in camp reporting for duty at Indianapolis at 3:20 p. m. April 26th. It. as Company G, One Hundred and Sixtieth Indiana Volunteers, entered upon active training for hard field duty and was examined and mustered into the United States service on the 12th day of May, becoming a part of the One hundred and Sixtieth Indiana Volunteers. This regiment served till the close of the war and was then sent to Cuba to do garrison duty and served one year, all told, being mustered out of the service on the 25th day of April, 1899. This company and regiment saw no active service, but has the distinction of being one of the best regiments called for the war. Also, the regiment traveled more miles and was in more camps during the war than any other volunteer troops in the United States service at the time, with the exception of those regiments that were afterward sent to the Philippines.

After the muster out there was a movement started by Captain Harrison, Lieutenant Clapham and others to reorganize the old company and the same was mustered into the state service May 15, 190°- and was known as Company G, Third Infantry, Indiana National Guard. This company is still in the service and through the efforts of its officers has the reputation of being one of the most efficient in the state.

Company

This company was organized at Columbia City, Whitley county, on June 28, 1895, and was assigned as Company G, Fourth Regiment, Indiana National Guard.

Cost Of The Civil War

During the greater part of the years of the Civil war, the government expenses amounted to a million and a half dollars a day and at the end of the war the public debt amounted to $2,808,549,437.55. This debt must be extinguished with interest accruing. Indirect or tariff tax was laid at a merciless rate on everything and no persons would attempt to compute the tax thus paid by a county, a township, municipality or an individual. Direct internal revenue or excise tax was also levied upon articles manufactured within the country, nearly if not quite as great, and in addition congress had been driven to enactments to provide revenue, that were more grievous than either of the others, because more easily ascertained and more directly collected.

These two items alone cost almost six times Estimating according to the rule em- the amount levied and collected for the supployed for calculating the population in the port of the common schools. There were middle of a decade, there were in 1865 other large expenditures, such as bounty, etc. 12,564 people in the county, or 2,512 voters. At a very conservative estimate, the Civil This revenue tax levied and collected within war cost the county of Whitley at least one the county for national purposes therefore and one-third the entire assessed valuation amounted to one dollar and forty cents plus of all her real estate in in 1865. And in this for each person, or over seven dollars for estimate we do not consider the burden of each voter, or over ten dollars for each poll tariff taxation.

Banks And Banking By Martin L. Galbreath

The permanent place of operation or the definite locality of the operator, the act or operation of dealing" in money, the operation or business of a banker, the method he adopts in carrying- into execution the various operations required in carrying out the details of his methods and the persistent and strict observance of these principles in the conduct of monetary operations may well be styled "Banks and Banking."

However interesting and instructive as these various commercial doings may appear, it is not the purpose of this article to enter this broad scope of useful research, but merely give a brief synopsis of the time and place of some of the ancient bank operations as a preliminary to the more detailed features of "Banks and Banking" in Whitlev county.

Banking, like all other enterprises, could not have been much needed nor required until public sentiment and commercial necessity had developed to a degree which made it possible for their existence, yet the origin dates back to a remote time in the world's history. The practice of loaning money for interest is a part of the old Mosaic law which reads, "If thou lend money to any of ni)r people that is poor by thee, thou shalt not be to him as a usurer, neither shalt thou lay upon him excess usury," and as it was also said by the Divine Teacher after the days of the Xew Testament, "Thou oughtest to have put my money to the exchangers and then at my coming I should have received mine own with usury."

yond the shadow of a reasonable doubt that there was a banking establishment in the ancient city of Babylon as early as 604 B. C, which did a commercial business of the great Euphrates river that would have done no discredit to the Bank of England. Not long since it was my good fortune to be put in possession of a fine series of articles on this subject, showing that banking was well understood at Athens nearly as early as at Babylon.

Italy was one of the leaders in banking in the middle ages and in fact the English word "bank" comes from the Italian word "banco," which means a "bench" and points to the fact that while the first bankers were conducting their business they sat upon benches as the Hindoo money changers do to this day. All of us know more or less of the Bank of England. It was founded by the greatest financier of his day, William Patterson, on July 2j, 1694. This mighty financial concern stands practically alone as a bank, there being nothing superior to it in the civilized world. It constitutes a category of itself. It is operated and ruled by a governor, a deputy governor anil twenty-four directors. Its original capital was fi .200,000, or about $6,000,000. It is a bank of issue. It is often called upon to help the government in its need of financial assistance, and in return the government frequently comes to the monetary rescue of this bank. With all of its gigantic power and worldwide possessions it has seen its days of distress and its prosperous seasons of success. Its vicissitudes have been frequent and great, and the day of adversity has shadowed at times its prosperous life. In 1696, when but two years old, it was forced to suspend payment of its notes, and in 1797 and 1820 it was restricted from making its payments in gold. The directors of this bank meet every Tuesday for the purpose of fixing the rate of discount and for the adjustment of any and all matters relative to its successful operation. Coming nearer home, we find that the Bank of the United States was established in 1790, although it was not incorporated until 1816. This great American institution passed through many and varied changes as the outgrowth of conditions arising- from the development of the country in general, and from the rise and fall of different political parties springing up along the line of our phenomenal expansion.

National Banks

During the stormy times of the Civil war the present national banking system was instituted, which is based upon the principle that United States bonds to an amount equal to the capital stock of the bank shall be purchased by the stockholders of any proposed bank and be placed on deposit with the comptroller of the currency at Washington, as a positive, tangible security to the issue of the said bank. For many years but ninety per cent, of the amount of bonds so deposited was issued in currency for the bank's use. but of more recent years the entire amount of the face of the bonds thus deposited has been issued in bank notes if desired by the stockholders of the bank : however, five per cent, of the issue is held in reserve by the comptroller as a guarantee ag'ainst losses by notes not returned for redemption. By this method of procedure a

The individual states of the Union had their own system of banking prior to the great Civil war, each being a thing of itself and a bank of issue and in many cases its notes were poorly secured, thus making sure a great loss to the holder thereof at the slightest commercial provocation or depression.

We think it will not be amiss here to briefly refer to our own state banks during this period of financial uncertainty and depression as a compliment to our credit, and to those in charge of our commonwealth at this critical time. The notes issued by the state banks of Indiana during this perilous season had almost a sterling value everywhere.

Our bank notes were never rejected by any of the other states nor by any individual. so well was their virtue known. They passed in payment of debts at all times and at par.

The character of the issue of our banks was practically established before its distribution. The state had agents in the east busily engaged in detailing the character of our securities and strengthening the faith of the money centers in the sincerity of our purpose. This good work was due almost in the entirety to the efforts of two men whose names the financiers of today hold in reverence. We refer to the late Hugh Mc- Culloch and I. F. D. Lanier, now the head of the great financial concern of Winslow. Lanier & Co., of the city of New York. The latter was a state agent in the east and in a position to come in direct contact with the money centers and their operations, thus fitting him well for the directing of our monetary affairs toward an end worthy the dignity of a state. In order to accomplish this work Mr. Lanier spent liberally of his. own personal means in the maintenance of a high standard of excellency in our state money, and the fact that not a dollar was lost to a single citizen of the United States, by virtue of a bad, unsecured bill cropping out from a bank of Indiana, seems to have been sufficient gratifictaion to him for all the money and effort so lavishly bestowed.

The Columbia City National Bank

November 26, 1867, marked the beginning of the banking- business in Whitley county. Before that time no one was doing a strict banking" business in the county, althougii Franklin H. Foust, a successful merchant since 1852, received deposits for safe keeping, issuing- therefor a simple receipt payable on demand. This was followed by making settlements for traders, stock dealers and local merchants of their eastern accounts. But it was not until 1867 that Mr. Foust discontinued merchandising and turned his entire attention to banking.

The close of the war and the return of the soldiers gave a new impetus to industry along all lines in Whitley county and a regular banking institution was one of the needs of the time. The bank was opened in a room fourteen by twenty feet, now occupied as a part of the Harter restaurant. Associated with Mr. Foust in this venture was Adam Wolfe, of Muncie, Indiana, and the firm name was F. H. Foust & Co. Mr. Wolfe retained his interest in the bank until his death in 1892. The office equipment of the original bank consisted of a large Hall safe and some plain office furniture, but these met all demands for the time being. It was a private bank and had the fortunes of the partners behind it.

The New Building First Depositors

The first depositor was James Taylor. Other depositors within a few days of the opening- were the following well known citizens of Whitley county: C. D. Waidlich, H. S. Cobaugh, James S. Collins, J. O. Adams, Richard Collins, Nathan Levi, A. Y. Hooper, Taylor & Boyd, Eli W. Brown, Linvill & Edwards, Eyanson & Bro., Henry Swihart, N. D. Torbert, Samuel Freidger, Josiah Archer, Dr. M. Ireland. Jonathan Keirn. Henry Zumbrun, Colonel I. B. Mc- Donald, William Reed, M. E. Click, Samuel Raber, Augusta V. Ireland, William Walters, Ben Steinfield, A. Kramer, Judge Richard Knisely, Jeremiah Stiver, G. W. Harley, Samuel Braden, Warren Mason, S. G. North, Otha Clark, John J. Rhodes, Jacob Pentz, John A. Kaufman, Solomon Miller, Gove Davenport, H. C. Yontz, William Walker, William W. Kepner, J. H. Kepner, F. M. McDonald, Charles Shuh, W. A. Geiger, Dennis Walters, Zeph Johnson, Julia Mauk, A. L. Sandmeyer, F. P. Gruesbeck, A. J. Stouffs, James M. Barnes, Daniel Hively, James Shaw, Fred Magley, Charles Compton, Levi Waugh, M. D. Garrison, Joseph Waugh, W. M. Hughes. A. A. Ricker, Francis Tulley, Sarah Nickey, Joseph Egolf, George K. Hurd, Christian Lucke, W. M. Crowell, K. C. Hamilton, Michael Sickafoose, B. F. Ream, John

By the year 1870 the bank had outgrown the quarters in which it was started. Banking was no longer an experiment in Whitley county, it had become a necessary institution. The wealth of the community was rapidly increasing, a new railroad was being constructed through the county, and Mr. Foust and his partner prepared to meet the needs of the public by providing more commodious quarters for the bank. The result was that in 1S73 the handsome brick and stone building at the corner of Main and Van Buren streets was erected as the permanent home of what was then known as the Columbia City Bank. The building was planned by Mr. Foust with special reference to convenience and safety. The bank vaults, constructed under Mr. Foust's personal supervision, were fire proof and burglar proof and at the time were the best and most substantial of any in the state north of Indianapolis.

The year 1873 was one that the old bankers of the state will never forget, and the resources of the Columbia City Bank passed through a trial such as was never known before or since. The New York correspondent of the bank failed and a large reserve deposit was tied up. The Chicago banks refused to do business with the country banks, and the Fort Wayne banks held all the currency they could get. Unaided and alone Mr. Foust paid every check

Becomes A National Bank

After the death of Adam Wolfe Mr. Foust made a settlement with the heirs of his deceased partner and became the sole owner of the Columbia City Bank. He continued to conduct the bank as a private institution until his increasing years reminded him that if his life work was to live after him his bank should be organized as a national bank. Application to incorporate under the national banking laws of the United States was approved by the comptroller of the currency and the nth day of April, 1904, the Columbia City National Bank opened for business with a capital stock of fifty thousand dollars, the majority of which was held by Mr. Foust. Other stockholders and directors were S. J. Peabody. Andrew A. Adams, William H. Magley, Benton E. Gates and Cleon H. Foust. The officers were Franklin H. Foust, president ; S. J. Peabody, vice-president; William H. Magley, cashier, and Cleon H. Foust. assistant cashier. No change has been made in the officers, but Judge Walter Olds, of Fort Wayne, and Albert B. Tucker, of Etna, became stockholders and were in January, 1907, elected directors.

Condensed Statement

In the report to the comptroller of the condition of the bank at the close of business on January 26, 1907, the bank made the following statement :

The First National Bank Of Columbia City

This popular bank has the pre-eminent distinction of being the largest institution of its kind in the county and was established in 1873. Realizing the need of greater facilities for local banking in the city and countv than were then enjoyed, Elisha L. McLallen, a retired merchant and capitalist of Larwill, his brother, Henry McLallen, of the same place, then county treasurer, and Theodore Reed, of Columbia City, formed a banking association named E. L. McLallen & Co. Mr. Reed retired at the end of the first year, disposing of his interest to the other members of the firm.

previously purchased from Hon. Thomas Washburn the row of dilapidated wooden building's standing" on the north side of Van- Buren street opposite the court house and they thereupon erected what is known as the Central block. The banking department of this building was designed and constructed by the members of the firm, who spared no means to make it the best protected bank building in this part of Indiana, thoroughly equipped and modernized for commercial banking. The vault in this structure is of solid burglar-proof masonry extending fourteen feet below the ground floor, is the first vault ever built in the county, and it contains the first burglar-proof steel safe installed in the county. After having made prearrangements as stated, the business was launched on April i, 1874, and that "opening day" found the new firm installed in its new and commodious quarters under the name of "The Fanners' Bank," E. L. Mc- Lallen & Co.

From the first the firm, encouraged by the substantial people of the community, met .with confidence and success and its growth has ever since been steady and continuous. Its business has increased with the development of its resources, as the city and county have progressed, until it has become an important factor in maintaining our phenomenal expansion. The fact that it passed, unaided, through varied financial depressions and monetary disturbances for the third of a century explains in a measure at least the magnificent patronage it now enjoys. In the latter part of 1889 the junior members, E. L. McLallen, 2d, and W. F. McLallen, were admitted to partnership. The greatest blow the personnel of this institution has ever sustained occurred in March, 1895, when without warning' the senior member, E. L. McLallen, 1st, while apparently in perfect health, was stricken with apoplexy and fell dead at the door of his private consultation room in the rear of the offices. His sudden death was an inestimable loss to the institution which he had helped found and to the community as well. In the summer of that year H. De Witt McLallen became an active member of the firm.

For three generations or more the Mc- Lallens have been bankers in a true commercial sense, having controlled large financial transactions for themselves, and they have ever bear a class of men to whom the less successful could appeal for financial guidance. Perhaps the business sagacity and the progressive spirit of the operators of this bank has in no instance been more in evidence than in a change of their affairs somewhat recently made. Aware of the unstable character of a private bank, uncontrolled by any state or federal authority, the firm decided to "nationalize" the institution, which was accordingly done February 2, 1904, when the Farmres' -Bank was reorganized and chartered as "the First National Bank," of Columbia City, under No. 7132. It has a capital stock of $50,000, all fully paid, which is all held by the Mc- Lallens except an allotment which was fittingly apportioned at this time to Thomas L. Hildebrand, who has been identified with this bank for over seventeen years and who on the above date was made assistant cashier. The business proportions of this bank can be well adjudged from an examination of its last current statement, which was issued at the close of its business hours on

The officers of this bank are as follows : Henry McLallen, president ; E. L. McLallen, vice-president; H. De Witt McLallen, vicepresident; Walter F. McLallen. cashier; Thomas F. Hildebrand, assistant cashier.

The South Whitley Bank, John Arnold & Co

The next and third bank organized within the limits of the county was that of the bank at South whitley known under its firm name of John Arnold & Co.

For many years one of the leading families of South Whitley was that of the Arnolds. They came to the county with other pioneers and various members of the family located at different parts of the country in and about the village of Springfield, now called South Whitley. John Arnold located upon a tract of land lying on the south bank of Eel river about four miles east of South Whitley, which had been given to him by his father.

One of the most essential needs of the early pioneer was that of a grist mill and accordingly the citizens of Springfield early in the spring of 185 1 started a subscription for the purpose of raising a fund to induce some one to undertake the establishment of a flouring mill on the river at that place. True to their former progressive business instincts, John Arnold and some of his brothers looked upon the proposition with favor, and as an outgrowth of their discussion they erected a saw mill during the year of 1852.

This venture was fraught with such marvelous results and was productive of such indispensable utility to the settlers of the surrounding" country that the flouring mill proposition was undertaken the following year and culminated in the erection of a mill on the present site of the mill now owned and operated by the South Whitley Mill Company. In conjunction with the two enterprises mentioned the Arnolds erected a fine one-story brick business house at the northeast corner of Front and State streets in the village and from it commenced the retail mercantile business.

The country store flourished under their careful management like their previous ventures, until it soon became apparent that greater facilities were extremely necessary for the adequate handling of their commercial interests and accordingly John Arnold and his brother Jesse founded a private bank at North Manchester in the summer of

1871. For seven years this bank was successfully operated in connection with their business interests at South Whitley, until some of the younger members of the family had been admitted to the various interests involved in their operations and a second private bank was organized and opened its doors for business in a fine two-story brick building built for that purpose and located on the southeast corner of Front and State streets, just opposite the Arnold store.

This bank was not organized under the law, but was a private or partnership bank, the partners being John Arnold, of South Whitley, and Jesse Arnold, of North Manchester.

This bank enjoyed the confidence of the people of the community from the start and had become an important factor in the commercial interests of South Whitley.

About the time this bank was organized, or in 1878. the Arnolds divided their business interests and the bank at North Manchester was made a national bank, with Jesse Arnold as its president, and the bank at South Whitley was managed directly by John Arnold, who pursued the best plans known by him to build up a banking business on lines to maintain the confidence of the patrons of his concern.

In October, 1880, he was stricken with a fever, resulting in his death after a brief illness. His death was a great shock to the community. The people had learned to know him as a kind hearted, benevolent citizen and the rectitude of his conduct had merited him an everlasting remembrance by the people of South Whitley. During the quarter of a century of an active business career John Arnold had accumulated considerable property, both personal and real, and by the terms of his last will and testament his possessions were placed under the control of his wife, and his son James was called home from college to assist in the active management of the business. After a few vears some changes were made and the bank was thereafter operated under the name of James Arnold and Company, and was known as the South Whitley Bank, but for convenience of management the records of the bank named James Arnold as president. Jesse Arnold, vice-president, and Thompson Arnold as cashier. The last named was a son of Jesse Arnold and was practicing law at Marion, Indiana, but gave up his practice to take a position in the bank at South Whitley. For ten years or more James had direct charge not only of the bank, but led in the business operations of the flouring mill, besides the handling of a large elevator, which had been erected by the Arnolds in conjunction with the mill. Besides the foregoing business enterprises, James became interested in some personal affairs and formed a partnership with Simeon Huffman in the lumber business and operated this business from Grassy creek, Fulton county, under the firm name of Arnold & Huflman. In 1887. he was elected township trustee of Cleveland township which greatly increased his undertakings and responsibilities. During his term of office he built the magnificent public school building now owned by the corporation of South Whitley in which the public schools are now conducted. During the summer of 1893 large amounts of grain were bought and shipped by the Arnold Mill Company and many bushels were placed in storage in the mill and elevators owned and operated by the Arnolds, all of which necessarily required large sums of money. So great indeed were the needs of the bank for ready money that their deposit with their correspondent in New York and Chicago had ebbed to such a low tide that in June two drafts drawn on their Chicago account went to protest. This unfortunate and most disastrous occurrence soon became known among the local bankers of the country and ultimately came to public notice which was the direct cause of heavy withdrawals from the bank and a run on the institution was averted only by the assurance of the Arnolds that they were amply able to meet any demand made upon them, and that they had three dollars' worth of assets to every dollar of liability, and by the further action of a large number of responsible citizens signing an article of agreement binding themselves to discharge any obligation of the bank that might not be liquidated by it on demand. (This agreement was soon afterward rescinded.)

The action of the citizens of the town in coming to the aid of the bank in June, in a measure quieted the apprehensions of depositors, but there continued to be a quiet withdrawal of deposits, until October following, when it became apparent that their little financial craft had drifted so far from the moorings of the founders, that a return to the golden haven of splendor and plenty was but a dream of idle hope and on the third day of October, 1893, James Arnold went to Columbia City and made a full statement of the bank's condition to his attorney. A. A. Adams, still insisting that the bank was solvent. It was the judgment of the attorney that for the protection of creditors a receiver should be appointed without delay, and accordingly the case of Jesse Arnold vs. James Arnold, for the appointment of receiver, was filed and the papers were taken the same day by Mr. Adams to Albion and presented to Hon. Joseph W. Adair, judge of the thirty-third judicial circuit, who was holding court at that time in Noble county. James Arnold, the defendant, was present in court, admitted the truth of the facts set out in the complaint and consented 'to the appointment of a receiver. William B. Fox, of South Whitley, was named as receiver and took charge of the bank on the morning of October 4, 1893, after giving the required bond. Ford Grimes and Francis B. Moe were appointed appraisers and spent more than a week in listing the assets and liabilities of the bank. The assets consisted of three hundred and nine items of personal property, real estate, notes, mortgages, overdrafts and cither claims., amounting in all to eighty-two thousand eig-ht hundred thirty-five dollars and forty-five cents face value. Such a large part of the listed assets were considered worthless that the appraisers valued the same at nineteen thousand five hundred twenty-eight dollars and sixty cents.

The liabilities scheduled embraced six hundred and thirty-eight items, aggregating the sum of one hundred and thirteen thousand seven hundred fifty-nine dollars and fourteen cents, showing an excess of liabilities over assets of thirty thousand nine hundred twenty-three dollars and sixty-nine cents, as listed and an excess of ninety-four thousand two hundred thirty dollars and fifty-four cents as appraised. On the 13th of

November, 1893, Mr. Fox resigned as receiver, and Martin L. Galbreath was named by the court as his successor and Hon. A. A. Adams was retained as council for the new receiver. No sooner was the task of administering said trust commenced than it appeared that the appraisement was even too high and that the inventory was inaccurate. Notes considered good were found to be copies, the originals being hypothecated to secure loans or depositors. More than four thousand dollars of good notes held by the bank were for advances made to farmers, who had wheat deposited in storage with the Arnold Mill Company, also in the hands of a receiver and held by the bank as security to such advances, were offset by wheat receipts after a test case had been broug'ht on one of such notes, and the court holding that all of the notes marked "secured by wheat in mill" could be paid by tendering to the receiver wheat checks amounting to the value of such notes, allowing fifty-six cents per bushel for the wheat, which was selling for that price upon the day the bank failed, and consequently by this decision the available assets of the bank fell off over four thousand dollars and the resources of the mill company were correspondingly increased. It also developed that collections had been made for local and foreign houses, and remittances delayed. In a case broug'ht to determine the standing of such claimants, it was held by the court that all such collections constituted a trust fund, and the claimants were preferred creditors. This further depleted the small cash balance with the receiver, and in the end, there was nothing for the regular depositor.

An event in the settlement of this disastrous failure was the sale of the remaining securities at public auction, by order of court, at the office of the receiver in South Whitley, which occurred on Wednesday, January 30, 1895. This was an eventful day in the history of the Arnold bank. David L. Shinneman was the auctioner. This day of all others was one of universal sympathy among the victims of this illfated bank. No strangers sought to profit by the losses of those now in distress and the bidders were simply left alone to purchase their own obligation if they so desired. One judgment of three hundred dollars was sold for twenty dollars. Another of nearly four hundred dollars went for thirty dollars. The overdraft of James Arnold, the president of the bank, of four thousand four hundred sixteen dollars and twenty-eight cents and appraised at seven hundred dollars was knocked down for the frightful pittance of twenty-five cents, and was regarded upon that day as going at a premium. The overwdraft of the First National Bank of Huntington which had been appraised at two thousand three hundred fifteen dollars and seventy-eight cents was shown to be a false entry on the books and subsequent developments showed that in fact James Arnold owed the said bank nearly twelve thousand dollars. The overdraft charged against J. L. Snell, of Sidney, amounting to four thousand fifty-one dollars and appraised at two thousand dollars was more than offset by wheat receipts, commissions for services and other items of indebtedness. Snell was the Arnold agent conducting a grain business for them at Sidney, a little town over in Kosciusko county. The unsecured notes of James Arnold amounting to seventeen thousand five hundred dollars sold for sixteen dollars and fifty cents. Thompson Arnold, the cashier, had an obligation to the bank as shown by the books of nine thousand, three hundred dollars which was sold for fifty-nine dollars and twenty-five cents.

The above are but few of the more important items constituting the remnant sale of the once flourishing banking house of James Arnold & Company. The items sold in this sale had a face value of fortythree thousand seven hundred three dollars and forty-two cents and they yielded to the creditors the paltry sum of two hundred thirty dollars and eight cents. The bank building and office fixtures were sold to Jerry F. Schell, as the agent of Andrew Shorb, for three thousand dollars, and finally came into the possession of F. H. Foust, I. B. Rush and F. S. Remington, constituting the firm of Foust, Remington & Company.

The Arnold Criminal Trials

The legislature of 1891 enacted a law making it a felony for bankers to receive deposits after insolvency. Probably the first case tried under this law, and certainly the first case reaching the supreme court of the state, grew out of the failure of the South Whitley Bank.

Soon after the truth about the real condition of the Arnold bank became known, there were rumors of criminal proceedings being instituted, and during the last week of the year [893, upon an affidavit made in Huntington county, a warrant was issued for the arrest of lames Arnold, but was

The grand jury called at the February, 1894, term of the Whitley circuit court, returned a large number of indictments against James Arnold. Jesse Arnold and Thompson Arnold. A number of these indictments were for receiving deposits after they knew the bank to be insolvent. Lorenzo D. Fleming, of Ligonier, was prosecuting attorney and appeared for the state, assisted by Thomas R. Marshall, as special counsel employed by the county to prosecute the Arnold cases. Mr. Marshall retired from the case near the end of the trial owing to the serious illness of his mother, who never recovered, and his law partner, P. H. Clugston, concluded the prosecution and made one of the best efforts of his life.

For Jesse and Thompson Arnold, H. S. Biggs and L. W. Royse, of Warsaw, and A. A. Adams, of Columbia City, appeared. The attorneys for the Arnolds filed a motion to quash the indictments for receiving deposits after insolvency, upon the ground that the act of 1891 was unconstitutional by reason of an incomplete title. Judge Van Fleet, of Elkhart, was called to hear the motion and after hearing extended arguments, sustained the motion and quashed the indictments. The state took an appeal to the supreme court, where the case became a celebrated one, and was finally reversed, the constitutionality of the act being upheld.

Jesse Arnold, while included in the indictments was never molested in any way. on acocunt of his age and a very general feeling that he had no guilty knowledge of the management of the South Whitley Bank. Thompson Arnold was by the same grand jury indicted for conspiring with James and Jesse to fraudulently procure from "divers citizens of Whitley county" money to be deposited in the bank, by making false representations as to the solvency of the same. He was tried at the November, 1894, term of the Whitley circuit court and on the 5th day of December, 1894, was found guilty by a jury, who assessed his punishment at one year in the state prison and that he pay a fine of twenty-five dollars. The attorneys for Arnold presented a number of dilatory motions all directed to the proposition that the jury had made his term of imprisonment one vear when the minimum provided by law was two years. The result was. after much argument, that the court. Judge William L. Penfield. declined to pronounce sentence on the verdict of the jury except as the same related to the fine. He held that the verdict imposing imprisonment for one vear was void, but that part imposing the fine was regular and therefore the verdict must stand as to the fine. Again the state appealed to the supreme court and again the ruling of the trial court was reversed, and Thompson Arnold was then sentenced to serve one year in the state's prison.

The Whitley circuit court has probably never known a case which excited such popular interest and was conducted throughout with such skill, as the case against Thompson Arnold. After the expiration of his term of imprisonment. Arnold returned to North Manchester, where he re-entered the practice of law until his death which occurred April 3, 1903.

The Bank Of Churubusco

Earl}- in the summer of 1888 a well dressed gentleman made his appearance in Churubusco and it was soon learned that it was a well educated and wealthy mute looking for a location for the establishment of a bank. Meeting with encouragement he returned to his home at Sturgis, Michigan, and arranged his business affairs, returning to Churubusco in the course of ten days he established the first bank of the town in a little wooden building on the present site of the meat market of Emerick & Madden. This little private bank had a capital of $10,000,00 and did a nice business, being managed by Mr. Thomas Beals. cashier. A fire broke out in the town one day and Mr. Beals over-exerted himself in an effort with other citizens to extinguish it, and resulted in a severe case of pneumonia, from which he died. After this occurrence the affairs of the bank were closed out and the business was suspended.

Churubusco now fell a victim of the notorious Zimri Dwiggins, of Rensselaer, Indiana, who formed a chain of banks all over the country and drained them into his Columbia National Bank, established in Chicago for the purpose. Dwiggins was the cleverest captain of high finance who ever operated in the country. What happened at 'Busco was enacted at a large number of other places in the country.

He comes with a little safe, a little furniture and a few books, rents a building and calls it a bank. In it may or may not be ten dollars or a hundred. It isn't business particularly he is looking for. as he couldn't attend to it if he had it. It's confidence he is looking for. He installs a bland, modest, in fact, delightful gentleman who is faithful in his attendance a Sunday-school and public worship and sits idle the entire week. Finally the citizens begin remarking what a very nice man he is and once in a while some one buys a draft for a dollar and a quarter and another deposits fifty cents to the account of his little boy. Finally Dwiggins comes and' calls on the people, attends Sunday-school one Sabbath and remarks how much better he is doing than he expected, when everybody knows that he knows he hasn't made a cent, but the leaven is working and he is making - headway. So matters go along until the bank actually does a little business, but the profits from it for a month would not buy a breakfast for the manager. Dwiggins comes again, more pleased than ever with the business he is getting and is now ready to begin operations. He suggests that while he is doing well he proposes to organize a bank under the state laws and give the offices to the citizen stockholders. In fact, put the management all in their hands.

Many whom he approached did not have a thousand or two idle, or at least to spare. Why bless you it isn't their money he wants doesn't need it, has plenty to run the bank but wants influence. Just draw your note to the bank, deposit it and in a year or two the profits will pay it and you will he a banker - free. Admirable scheme. The hank is organized, directors, president, vicepresidents and all are citizens who give the bank credit and standing - but Dwiggins' man still handles the money. The bank now begins to do business in earnest. Officers and stockholders are responsible and they and their friends soon see deposits running into the thousands. The same is going on at many other points. The morning papers announce the closing of the Columbia National at Chicago and our friend who wields the cash at Churubusco with tearful eyes tells that nearly all the local bank's cash is up there and if it is true he is ruined, as everything he has in the world is invested here. He calls a meeting of the panicstricken depositors and stockholders and tries to explain why all the bank's cash is up there. The upshot is that he and a kindly, benevolent old gentleman are sent up to Chicago to investigate. They are met by Dwiggins and wined and dined and it was fully explained that the Columbia National's troubles were but temporarv and it would resume in a few days.

The committee returned fully satisfied and seemed to satisfy others. More money was raised to put the local bank on its feet, but somehow things did not work right, except that more money went mysteriously to Chicago or elsewhere and one morning the cashier was as if the earth had swallowed him.

Stockholders who paid in a thousand were liable to the depositors for another thousand under the double liability law and likewise those who had deposited a note for a thousand must pay it two fold. The depositors thus got their money and the stockholders held the sack. The Columbia National did not open again.

Among the assets of the hank was the note of Ira J. Chase, Governor of Indiana, for fifteen hundred dollars. This was the preacher governor - of course, he never paid it nor did he or Dwiggins land in the penitentiary.

O. Gandy & Company Bank, South Whit

In March. 1894, following the Arnold failure, O. Gandy, of Churubusco, and Theodore Mayer, of South Whitley, rented the Arnold bank building with its fixtures and started a private bank. The firm occupied this building until it was sold, at which time the}; rented the Johnson building on the west side of State street, now occupied by the Eastom restaurant. This room was rearranged and new and complete furniture and fixtures added. These quarters were occupied until 189S, when the bank was moved into the Edwards building at the corner of State and Mulberry streets, where it is now located. This bank has been a progressive institution and. has taken on many side lines, among which is the flouring mills at Collamer, the grain elevators located on' the Nickel Plate tracks, besides handling real estate and vehicles of various kinds. This bank was reorganized in 1905 and is now operating under the laws of Indiana as a state bank under the name of "The Gaudy State Bank."

The following statement will show the strength of this bank at the close of business hours on January 26. 1907, and the names of the present officers :

On the 2 1st day of March, T895. a deed to the Arnold Bank Building was made by Andrew Shorb to Franklin H. Foust, Francis S. Remington and Iredell B. Rush, who had organized themselves into a partnership under the name of Foust, Remington & Co.. for the purpose of conducting a commercial banking business in South Whitley.

This building had been occupied by the Gandy bank, which now moved across State street into the Johnson building. The new firm remodeled the offices and built a splendid large burglar-proof vault in the rear "I the main office and added all of the modern conveniences necessary to complete a well arranged banking house, and commenced business soon thereafter. The affairs of the bankwere placed in charge of Mr. Remington.

who remained in control until his death, which occurred on June 2j, 1902. After the death of Mr. Remington his son, James E.. who had been an employee in the bank for some years, was placed in charge and the affairs were continued until the bank was reorganized into a state bank and a number of farmers and other business men were admitted to the new organization. Mr. Rush and the Remington interest retired at the time of the new organization.

The new organization is operated under the name of "The Farmers' State Bank" and is in the hands of careful and competent men and is doing a splendid business for its short existence, only having commenced operations in May, 1906. The last statement made by this bank upon call of the state will show its condition at the close of business hours on the 26th day of January. 1907.

The Provident Trust Company, Of Columbia City

This institution is the only one of its kind in the county. The articles of association under which it is operating were filed with the secretary of state on the 22d day of December, 1899, and its opening was on the 1 8th day of January, 1900, thus it commenced with the new century.

It has a capital stock of $25,000.00 and arrangements have been made to double the stock after March 1st of the present year. All of its stock is held by citizens of Whitley county. The present officers are as follows and have been in control ever since the original organization :

President, David B. Clugston ; first vicepresident, S. J. Peabody; second vice-president. S. P. Kaler; secretary, Walter F. Mc- Lallen; assistant secretary, W. T. Binder; general manager. M. L. Galbreath.

Little Etna came from Washington township, Noble county, to Whitley county, in 1859. The causes which impelled the separation, the facts and proceedings are so well set out in the chapter on organization that an attempt to detail them here would be useless repetition. Etna is the smallest township in the county, two miles by six, composed of sections 25 to 36, in towship 33, range 8. It was surveyed at the same time as that part of the county lying directly south of it. When Noble county was organized in 1836, two years prior to the organization of Whitley county, there were about a dozen settlers in Washington township. The election organizing the township was held at the home of Joseph E. Adair, father of Hon. Joseph W. Adair, judge of the Whitley-Noble circuit, and was held April 3, 1837, and Mr. Adair was elected justice of the peace. His residence was in that part of the township remaining in Noble county.

The first settler was Agard, who came late in 1833 or early in 1834, settling near the Noble county line, north of Albert Tucker's farm. Following him came Kinney, who domiciled on what is now the Tucker farm. Both these gentlemen were from Vermont. Kinney was well educated and quite intelligent. His word was taken on all questions as some great constitutional lawyer in the United States senate. He expounded chimney corner law and was authority on ecclesiastical as well as secular and scientific questions. He taught the first school in the township in the winter of 1836 and 1837, in his cabin, near the present residence of Albert B. Tucker.

Agard's wife died in a few years and was the first burial in the cemetery laid off by Stephen Martin, just west of Dr. Scott's present residence. Both Agard and Kinney sold out and left the country many years ago. After these, settlers came thick and fast and it is impossible to enumerate their names in the order of their coming. Hugh Allison, Jacob Gruemlich, Abraham Goble, John Blain. Joshua Benton, James Campbell, Jacob Frederick, Robert Scott, John Scott, The weight of authority is that the Scotts were first after Agard and Kinney. These all came by or before 1836, and by 1841, all the land in the township was entered and much of it settled upon. John Scott came in 1833 and settled on the spot where the hamlet of Etna now stands. He had a large family of boys and girls, among which were three grown men. The same year they made a dugout canoe and fished in a little nameless lake, finding fish in abundance. The next year they made another canoe of the same sort and put it on another little lake to the south. When they would talk about going fishing, the)' would ask "Are you going to the old lake or the new one?" and thus they unconsciously gave names to both these lakes. Jacob Scott, who lived many years on the farm now owned by Ambrose Keister, may be said to have given the lakes their names. Benjamin Blair settled in the township in 1836, entering a piece of land south of Cold Springs, or Ormas. He partly cleared his forty-acre tract, grubbed it and built a cabin. In 1S38, he went up to the Haw Patch above Ligonier to help harvest wheat. He was a most excellent cradler and could make big wages for several weeks. He remained in that locality for a couple of years. In 1840 he married Nancy Hunt and came back to his cabin. He soon sold and moved to Elkhart county. Mrs. Blair died in 1846, leaving two daughters. During their residence in Elkhart county he was converted in a Wesleyan revival which was said to have been the most powerful ever known in northern Indiana. From this time he was mentally unbalanced. He was a man of good character, memory and natural ability, but very limited education. He soon felt himself called upon to preach, but his church would not give him license and this disappointment disturbed him very greatly. The death of his wife soon after, in addition to his already unbalanced condition, made him hopelessly insane, and from that on "Old Ben Blair" was as frightful a scare crow to the children as the celebrated fabled "raw head and bloody bone." He neglected his children and became a roving, noisy maniac. One daughter lived with her grandmother, Mrs. John Scott, at Etna, until the age of fourteen, when she went to her mother's people in Elkhart count}- and died. The other lived until maturity, married and went away.

He made a great noise and frightful noise, but was never dangerous. His insanity took form in preaching. He was always talking scripture but all his harangues were without point. He would approach the house of friend or stranger preaching with his voice in the higFest key and the children would scamper to cover. He would preach to a stump, a goose, pig, cow or stone as quickly as to a human being. He found welcome in many homes as an unfortunate insane, yet harmless wanderer and at times would talk intelligently for ten or fifteen minutes and again break out in noisy religious harangue, and if interferred with, would immediately leave the house. His favorite salutation on meeting friend or stranger was: "By the Grace of God!" He never begged but the people furnished him clothes and sustenance. He had several canes loaded full of coins of small denominations, medals, buttons, etc., and made the late E. L. McLallen custodian of them. Some of these may still be seen in the First National Bank at Columbia City. Mr. Mc- Lallen was g'ood to him and secured his undying friendship. He never belonged to any lodge but used to say that he and brother McLallen were the two highest Masons in the world. For nearly thirty years he was a wanderer over Elkhart, Whitley and Noble counties, preaching-, preaching, always preaching. He died in the earl}- winter of 1S73 in the Noble county poor house; his mind never having cleared, even in his last moments. He always requested to be buried -beside his mother and when death dame to his relief, kind friends laid him beside the dear one he so tenderly loved, in the Scott cemetery in Troy township, near the Etna township line.

The first mill in the township was a saw-mill built by Hugh Allison at Cold Springs, in 1837. It was of course the old up and down saw and ran by water. Crude though it was, it was considered a great improvement. Hall's mill, in Noble township, Henshaw's in York township, furnished the early supplies of lumber to the township. There were grist mills at Oswego and North Webster at a very early day,. antedating the Etna township settlements and the people of this part of the county were more fortunately situated than those in other parts. The Ryder mill at Wilmot, just across the county line, was built in 1848 and for many years was the most up-to-date mill in the country for many miles adjacent.

The first death was Mrs. Agard, the second was Jacob, son of Robert Scott. The third was Sarah Elizabeth Long, daughter of James W. and Katharine Long in 1838. The first marriage was Elisha Moore to Nancy Scott, in 1837, at the Scott home on the site of Etna town. The first wedding in the township after it became a part of Whitley county was Adam C. Johnson to Margaret Long, in i860.

The first steam saw mill was built west of the village of Etna and the next on the Hartup farm in the west part of the township. Abraham Goble conducted a tannery at his home in a very early day. The first school building was a log one built on the corner of Goble's farm and was first used the winter of 1837 and 1838.

The first church built in the township was right on the then county line, being in Noble county, now Etna township, on the south line of the southeast quarter of section 31. It has been known for many years as the Snodgrass church. It was built in 1840 and was on the farm of John Blain. The first burial in this cemetery was Thomas Long, brother of William C. Long, still in the township. The first services were held at the homes of John Blain and John Snodgrass. The church building yet standing, was built more than sixty-five years ago. The first worshipers here were the families of John Blain. John Snodgrass, Joseph Scott, James Scott, Thomas Kirkpatrick, Levi Belch and others. The denomination was called Associate Reform, and was reform from the old seceecler. It is from the old Scotch Presbyterian stock. No religious organization had a more noble parentage, better record or better people. They were old psalm singers. The church organization has gone down but the building never went to any other denomination. The society was organized by Rev. Robert Kerr. who lived at Oswego.

One of the very earliest burying places was on the Emanuel Fashlaugh farm in the southwest corner of section 30. It was called the Grumlick cemetery. Most of the bodies have been removed to Salem, across the line in Noble county, anil to other places. Most of the bodies remaining are of the Grumlick and Goble families.

The town of Etna was surveyed September 11, 1849, by John H. Alexander, for Lafayette Lamson, who was in business at the place. It consisted of eighteen lots, numbered from one to eig'hteen. The plat was acknowledged by Lamson. and recorded in Noble count}-, September 29, 1849. Though laid out by Lamson the land was owned by John Scott, and on the 2d day of October, 1849, John Scott and Elizabeth, his wife, conveyed to Lamson the entire surveyed town of Etna for the sum of forty dollars. Lamson named the town Etna in honor of the place he came from in Ohio, and when the township was stricken from Noble county it also took the same name. The lots are four and a half by nine rods.

November 19. 1878. Dr. S. S. Austin platted and recorded an addition to the town consisting of twelve lots, numbered consecutively 1 to 1 _>. Levi Adams was the surveyor. Lots i to 6 are ten rods bv four

Cold Springs was laid out and surveyed May 9, 1856, by Jacob Keefer, and was surveyed on that day by D. \\ . Myers, surveyor of Noble county. It consists of lots 1 to 16, seventy-four and a quarter by one hundred forty-eight and a half feet. Keefer did not acknowledge and record the plat until November 19, 1856, and on that day he and his wife, Maria Jane Keefer. conveyed lots 7 and 12 to the Free Will Baptist church, the consideration being that they should erect thereon a church fi >r the worship of Almighty God and allow any and all other evangelical denominations to hold services therein, without charge, when they were themselves not using it. This church is called "The First Church of Noble, Free W ill Baptist Church." It was organized in 1837, by Elder Pullman at the residence of John Prickett. in Washington township. Services were held in dwellinghouses and schoolhouses until 1853. They began building the old frame church in Cold Springs in 185 1. but as the people were poor and it was built entirely bv donation, was not finished until 1853. It was built when the town was platted and three years before the deed was made to the organization bv Keefer. .The congregation continued to worship in the first building until 1888. when the}' erected the present brick veneered church. The charter members were John Prickett and wife. Nicholas Prickett and wife. Paul Beezly and wife. Mr. Graham and wife. Andrew Humphrey and wife, and Mrs. Piper. The present trustees are B. F. Cooper, M. W. Bristow and E. E. Knapp.

The first cemetery was laid out by Stephen Martin in 1835, he being himself a surveyor. No plat of it was ever recorded and but little of it is now left. It was directly west of Doctor Scott's farm residence. There were quite a number of burials at the place, but quite early it was abandoned and the greater part of the bodies were taken up and moved to the Scott cemetery at the southwest corner of section 1, Troy township, and some to other places. As early as 1838, Robert Scott dedicated a plat on his farm for a cemetery. This is west of Cold Springs and in the center, on the east line of section 26. A number of bodies were removed from Martin's to this place. There are still a few burials of old families at the place.

The people of Etna have always been morally and peaceablv inclined. If there were no more litigation in the county than in this township the courts would close and the jail remain empty. The township has always been well supplied with churches and never had a saloon. Three different attempts have been made to run quart shops, but they soon suspended for want of patronage.

The change from Noble to Whitley county disarranged the school districts and while Etna is exactlv the right size for three schools the roads are and always have been wrong for the arrangement. Soon after the change five school houses were erected and five districts were maintained until the consolidation three vears ago.

These school districts were oddly arranged and no one seems to know when or how they came by their location, one of them being right on the Noble county line. Until very recent years the five schools were always as full as in the neighboring townships where four square miles constitute a district. Many pupils were from time to time transferred from Troy township and also from Noble county, their share of the tuition fund being paid to the trustee of Etna township.

Three years ago a large central school building- was erected at a cost of about twelve thousand dollars, just west of the town of Etna with four rooms and maintaining a high school with good standards. All the children of the township now go there, and from maintaining five schools and five school houses where there should have been only three, the township has changed to one central school building with four rooms and four teachers. Quite a number of pupils from Troy township and from Noble county are each year transferred to this place and materially assist in furnishing- the revenue. This move has put the township deeplv in debt, but ten or twelve vears will pay the debt which leaves the township in better financial shape than most town and city school corporations. The outlay was great in the start, but was fully justified bv the economy in the present system, together with the greater efficiency. Three school transfer wagons are run to carry the children from the remote parts of the township to school. All the school houses have been sold.

Olive Chapel, United "Brethren church, was organized in 1844. The first members were the Grumlich family. John A. Miller and wife and Toseph Welker and wife. The first minister was Rev. Todd. Other early ministers were Snepp, Hiker. Shomas, Had-

J. F. Martin, Seithman, Simons and Wood, each one year; Cleaver, two years; Eby. one year ; Cummins, three years ; Bell, two years ; W. F. Simons, two years ; Butler and Miller, each one year; Byrer, Riley, Mattox and Showley, each two years ; Fetro, three years : Sickafoose, two years ; Dunkle, one year ; Hill, two years. Rev. G. H. Hutchinson is present pastor.

Services were first held in homes and school houses. The present building was erected in 1880 at a cost of two thousand two hundred dollars. There are at present forty members. The present trustees are A. C. Brosman. H. Batz and A. Hines. The cemetery is known as the old Grumlich cemetery and a Mr. Grumlich was the first burial.

The Etna Methodist Episcopal church was organized in 1867 by Rev. A. Lacey. The first members were Virgil Barber and wife. Jacob Bowlby and wife, William Blain and wife and Hannah Scott.

The Baptist church two miles west of the town of Etna, called the First Troy Baptist church because it was organized near Troy Center in 1847, was organized with the following persons : Samuel, Sallv, Almond and Katharine Palmer. Joseph and Martha Walton, James Grant. Samuel Elder, J. H. Sowerman, Elisha S. and Lucinda Havens, Alfred and Betsy Jordan, Hiram, Sarah and Sarah A. Lambkin, Harvev and Mary Orcutt. Samantha Trumbull, Jemima Palmer. Elizabeth Campbell, James and

Eunice Latson, William James, Henry and Frances McLallen and Phebe Barnes, Fielding, Eliza and Zachariah Barnes. Among the early ministers were Revs. D. Scott, Ira Gratten, E. Barnes, Worth and Coyle. There was never a church building in Troy, services were generally held in the Troy Center schoolhouse.

The church was reorganized as the Etna township Baptist church December 20, 1862, with the following members : Harvey and Mary Orcutt, Joseph S. and Sarah Palmer, Saruch and Anna Benton, Anna Jones, Semantha Trumbull, J. L. and Mary McLeod. The present church building was erected in 1869 at a cost of twenty-four hundred dollars.

The towns because of their isolation have never made much headway. About all there is of Cold Springs is the church, a general store and a few dwelling houses.

Etna has two general stores, drug store, meat market, barber shop, hotel and blacksmith shop. Dr. J. William C. Scott is the only physician. The Grand Army of the Republic and Independent Order of Odd Fellows have each a hall and lodge. The lodge of Modern Woodmen use the Grand Army of the Republic hall. There are about sixteen dwellings. The township has five lakes, all in the east half of the township. Loon lake, the largest, covers the greater part of the east half of section 36, the southeast corner of the township. It also skirts corners of both Troy and Thorncreek townships and a great part is in Noble county. Dollar lake, about the center of the south half of section 25, is small and almost round, therein- resembling a silver dollar from which it takes its name. It used to he said it had no bottom, but it has been found to be comparatively shallow, from twenty to thirty feet deep, with a few quite deep places. Old lake covers about fifty acres in sections 36 and 35. We have already shown how it came by its name. It has an average depth of twenty-five to thirty feet. Brown lake, covering' some ten acres, is in the central west half of section 26. It is shallow with muck margins and marl bottom. It takes its name from the owner of the adjoining land. Indian lake, about the same size as Brown lake, is near the center of the northeast quarter of section 27, and is also a shallow marl muck lake.

On Wednesday, the 21st day of August, 1878, Mr. Halderman, who had a saw-mill near the west bank of Old lake, desiring a hired girl, Joe Nickerson, son of Elder Nickerson, of Wolf lake, who was working for him, offered to go and get one. The offer was accepted and Nickerson said he would stav till he found one. He went at once to Hills, about three-quarters of a mile northeast of Loon lake, and secured Katie Hill and started with her a little before dark, going in a boat across Loon lake and thence through the channel between Old and Loon. When near Old lake a dog began barking terribly and the owner listening heard a \\<uuan scream and a man trying to pacify her. This was about nine o'clock Wednesday evening. Nothing was thought of their absence. Hills supposing Katie was at w.i >rk at Haldermans and Halderman supposing Nickerson had not got the girl and went elsewhere. On Friday afternoon some boys fishing found the boat they had used. Nickerson's coat and a paper of tobacco being in the boat. Search began on land and water and it was now first discovered that they were gone. On Saturday evening the bodies of the two were found in ten or twelve feet of water twentv-five or thirty feet from the outlet of Old lake. There were no marks of violence on either body. The two had been engaged at one time, but owing to the dissolute character of the man she had broken the engagement.

Ey Henry H. Lawrence

The Grange had its origin in that period of general depression of the early 'seventies. Not only was there a great slackening of the commercial pulse but it extended everywhere and the unrest was perhaps greater in the rural districts than anywhere else. Farmers felt the_\- were not having what is now termed the "square deal" and that they were getting the worst end of the bargain in all lines. This culminated in the establishment of a great farmers' alliance called the grange and it spread with lightning rapidity all over the land.

Many who first entered the order were actuated by that excitement incident to great popular movements and not realizing the importance and true principles that formed its foundation soon dropped out throug'h

The first general move in Whitley county was in the early spring of 1874, when it swept the country like a tornado. The records show that in April of that year there were eighteen subordinate lodges or granges organized within the county, named and numbered as follows, as far as we have been able to determine from the records : Thorncreek, No. 278; Union, No. 649; Eel River, No. 689; Richland, No. 925; Blue River, No. 945 ; Lynn, No. 980 ; Fair Oaks, No. 991; Sugar Grove, No. 1075; Troy, No. 1 155; Washington, No. 1163; Jefferson. No. 1256; Sugar Grove. No. 1264; West Union, No. 1408; Coesse, No. 1625; Spring Run, No. 1892; Collins, South Whitley "and Pleasant Lake.

A large part of the more prominent and influential farmers and their wives, sons and daughters became members, some to remain true to its principles and others to drop out.

Immediately on the organization of these lodges the necessity for a county organization with general supervision was clearly apparent. A meeting was called in Columbia City and a county council was organized to have general supervision of the affairs of the order within the county. We need only to refer to the ups and downs of the order. Springing so rapidly into exist ence the rebound was sure to come, but the order has survived and is today a living and vital factor for good.

On June 22, 1878, those who were yet members of the council met in Central Hall. Columbia City, and organized in its stead a County Grange. It was first known as Columbia City Pomona Grange, No. 33, but was soon after changed to the Whitley County Pomona Grange, No. 33, and is still in good working order. No stated times are set for its meeting, but it meets as the business may require on the call of the executive committee, which consists bf a member from each subordinate lodge. These meetings are held as often as three weeks and some times not for two months. They are held at the different subordinate lodges and all members of all lodges in the county, being- members, participate in the proceedings and assist in deciding all questions. The meetings generally discuss questions of law and general welfare. The meetings of the county grange were at first called by the president and secretary.