Freeborn County, Minnesota - Chapter 13: Banks and Banking, 1911

The first effort of the pioneer was to secure his location and to there erect a habitation. The question of livelihood was one of immediate importance and no sooner was the pioneer and his family provided with a place to live, however poor or tem¬ porary, than he began to break the ground for crops. Mills for grinding the grain and sawing lumber were also an early necessity, and as there were many articles of daily need which the soil did not produce, the establishment of general stores could not long be delayed. But even in the most primitive com¬ munity money is a vital need. The money lenders followed fast in the footsteps of the pioneer. Before long it became apparent that there must be some sort of an institution of financial ex¬ change. Private banks were usually established as an adjunct of some other business. Some continued for a few years only, but others gradually assumed the importance of national or state institutions. This to a large extent is true of the early history of Freeborn county. Today the county is on a sound financial basis and the prosperity of the community is shown by the financial statements of the various banks which handle the money of the people at large. The county now has four national banks and fourteen state banks.

The First National Bank of Albert Lea is the pioneer bank ot southern Minnesota. Starting as a private bank, it has grown to its present proud position. Its growth and prosperity has been contemporary with the growth and prosperity of Albert Lea. Its officers never lost sight of the fact that Albert Lea had a great future; that it was destined to be the metropolis of southern Minnesota, and they have been foremost in aiding any and every enterprise which would contribute to that end.

Beginning in a small way, when only a village of a few hun¬ dred inhabitants, the late Frank Ilall started a small bank in the year 1867 in the corner of his store in the same building now occupied by the Irvin cigar store, giving it the name of the Banking House of Frank Hall, with C. B. Kellar as his cashiei . He latei built a one-storv brick building on the corner now occupied by the First National bank, moving his bank into this new building. Mr. Hall having so many kinds of business run¬ ning at the same time, found it impracticable to give much of his time to the banking business and soon after moving into the new building, disposed of his interests to the late Hon. H. D. Brown, who ran the business as a private bank under the name of the Banking House of H. D. Brown, retaining Mr. Kellar as his cashier. The business continued increasing rapidly, when a few years later D. R. P. Hibbs, now the efficient president of the Albert Lea State bank, was taken in as a partner and the busi¬ ness continued in the same building under the name of IE D. Brown & Co., they retaining Mr. Kellar as their cashier.

In 1892 the H. D. Brown Company's hank was merged into the Albert Lea National bank, with H. D. Brown as president, D. R. P. Hibbs as vice-president and C. B. Kellar, cashier. It had a very successful period of ten years, paying large dividends at the beginning and the stock doubling in value, when it con¬ solidated in February, 1902, with the First National bank, with H arry Jones, president; D. R. P. Hibbs and Vegger Gful brandson, vice-presidents; C. B. Kellar, cashier, and Alfred Christopherson, assistant cashier, the combined capital and surplus of the two banks being $120,000.

The latter bank was the one established by the late Hon. Gilbert Gulbrandson in September, 1886, and was very success¬ ful from the start. At the time of the consolidation Harry Jones was president ; Vegger Gulbrandson, vice-president, and Alfred Christopherson, assistant cashier; the office of cashier had been vacated previously by the death of the late lamented August Paulson. In January, 1903, Harry Jones, president, and D. R. P. Hibbs, vice-president, resigned their official positions in the con¬ solidated First National bank and C. B. Kellar was elected presi¬ dent ; Vegger Gulbrandson, vice-president, and Alfred Christo¬ pherson, cashier.

The bank has been conservatively managed and the business has increased rapidly, as will be shown by the following compara¬ tive statements in periods of about ten years, more or less :

The now home of the First National bank is modern in its equipment, is provided uith the latest improved safes, fireproof* vaults, with burglar alarm attachments, and carries a large line of burglar and hold-up insurance. In addition, its officers and employees are all heavily bonded, offering to its patrons the most perfect security in their dealings with the bank. Its directors are composed of the most careful and conservative business men that can be found in the city, men who have great faith in the future development and prosperity of the city, as is evidenced bv the erection of the handsomest as well as the most commodious bank building to be found in Minnesota outside of the Twin Cities.

C. B. Kellar, the president of the bank, was born in Wisconsin, moved to Minnesota with h is parents in 1856, settling on a farm near this citv. After serving an enlistment in the army he attended Oberlin College and afterwards began work in the banking business where he has since continuously served for forty-four years, probably being the oldest banker in the state in point of service.

Vegger Gulbrandson, the vice-president, while not active in tin* management of the bank s affairs, adds much to its strength. He is one of the wealthiest residents of the county. Aside from li is banking interests he has large farming interests, and also has many other investments in this city and county.

Alfred Christopherson, cashier of the First National bank of Albert Lea, Minn., is an Albert Lea boy, being born and raised in that city. On tin* completion of his school work he entered the employ of the First National as clerk, during the presidency of Gilbert Gulbrandson, and has been connected with the institution since being promoted to the position of cashier in 1903. He has been actively engaged in the banking business and has organized and is directing several of the smaller banks in the vicinity, hold¬ ing the office of president in the State Bank of Clarks Grove and in the State Bank of Oakland. He is also more or less identified with other financial institutions and has been the means of assist¬ ing several that are a credit to Albert Lea. He is a trustee and the treasurer of The Albert Lea College, one of the few educa-- tional institutions in the northwest that are devoted to the educa¬ tion of women only.

The Citizens' National Bank, of Albert Lea. In the month of February, 1893, T. Y. Knatvold and H. N. Brown formed a co-partnership and organized a bank firm known as Knatvold & Brown, with a capital of $10,000.00 paid up in cash. In the spring of 1894, C. L. Swenson was taken in by the firm and served as its cashier. They continued in business until in the spring of 1900 when they sold to one C. A. Ransom, who con¬ ducted the business as a private bank with C. A. Ransom as president and C. L. Swenson as cashier, A. C. Erickson, assistant cashier, and Alberta Mann, stenographer, until in the spring of 1902 when the bank was organized and incorporated into a national bank with a capital of $50,000.00, surplus $5,000.00, with the following officers: C. A. Ransom, president; B. H. Knatvold, vice-president ; C. L. Swenson, cashier ; A. C. Erickson, assistant cashier. In January, 1904, Edward Olson succeeded C. A. Ran¬ som to the office of president, and the business of the bank has been conducted since the year 1904 with the following officers managing : Edward Olson, president ; B. H. Knatvold, vicepresident ; C. L. Swenson, cashier ; A. C. Erickson, assistant cashier ; Alberta Mann, stenographer ; A. C. Hartz and Oscar Olson, book-keepers.

From the establishment of the bank to the present time, it * has at all times made a steady and healthy growth and today has a capital of $50,000.00, with a surplus and undivided profits of $17,929.95, and deposits aggregating $562,967.34, with loans and discounts aggregating $483,195.51 ; total figures of state¬ ment showing a footing of $678,290.28.

The Albert Lea State Bank was organized May 16, 1902, and opened for business on that day as an entirely new institution - the first state bank to be opened under the state banking laws in Albert Lea - with a paid in capital of $50,000.00, and with the following officers: D. R. P. Hibbs, president; Y. Gillrup and F. W. Barlow, vice-presidents; D. C. Armstrong, cashier. For a number of months the bank occupied the Blackmer store build¬ ing, or until the old First National bank building was purchased, and it then remodeled the front and extended the building in the rear to accommodate the business in proper form, and still occupies the building.

come as lie wished, as he intended spending his winters in the south. At this time, D. C. Armstrong, formerly cashier, was elected president and Mr. Hibbs made first vice-president, Mr. Harlow resigning. In 1904 it was found necessary to increase the office force, and H. F. Wittmer and A. F. Wohlhuter were elected assistant cashiers. On the election of D. C. Armstrong as presi¬ dent A. F. Wohlhuter was elected cashier, and in 1910 Mr. Wittmer left to take over the management cashiership of the bank at Kiester, Minnesota.

There have been few changes in the board of directors, and tin* bank has won a good business and standing in the city and county and today has its capital at $50,000.00, surplus fund earned at $10,000.00, the required amount, and has never passed a dividend period, having paid to the entire satisfaction of all stockholders, and the management feels justly proud of the record so made. Its savings department has grown steadily and the abstract business now occupies the time of one man entirely, it having been found advisable to have both Air. Hibbs and Mr. Gil hup appointed bonded abstractors so that the work could be handled properly and promptly. The management looks for¬ ward to a steady and solid growth and careful attention to business earns the favorable opinion of all the county.

The Freeborn County State Bank was organized June 1, 1907. with a capital of $25,000.00 and opened for business on August 13, 1907, in the Wiegand building, at the corner of Broadway and William street, in the City of Albert Lea. The incorporators and directors of the bank were: Charles Soth, Charles E. Paul¬ son and Howard II. Dunn. The first officers consisted of the following: President, Charles Soth, vice-president, Howard H. Dunn: cashier, Charles E. Paulson, and assistant cashier, Robert Anderson. On the death of Mr. Soth. June 9, 1908, Charles E. Paulson succeeded to the presidency, and Henry Soth became a director.

The bank has enjoyed a steady and continuous growth since its organization. The farm loan business of Naeve & Soth and later of Charles Soth has passed under the management of the bank, and this department has the most extensive farm loan business in this part of the state.

The Citizens State Bank of Glenville, was chartered by the state banking department to open for business December 15, 1910, with a capital of $10,000.00.

The bank is a local institution having fifty stockholders among the business men and farmers in and near Glenville. It has a board of seven directors and the officers are : H. Houg, president: C. L. Swenson, vice-president, and A. P. Sawyer, cashier.

The First State Bank of Glenville. August 1, 1899, A. II. Bender moved to Glenville from Waucoma, Iowa, and with his uncle, W. H. Stone, owner of the Bank of Waucoma, Iowa, as partner, started a private bank at Glenvillk known as the Bank of Glenville, which commenced business September 20, 1899, and continued till August 1, 1907, when they sold out to the Glenville State bank, which had been organized about two months pre¬ viously by Charles Soth and others, of Albert Lea, Minn. After being out of business for a year, during which time he took a trip through the west, Mr. Bender came back to Glenville and with Mr. Stone, bought the Glenville State bank, taking posses¬ sion August 17, 1908. The bank was continued under that name till October 1, 1908, when the name was changed to The First State Bank of Glenville and has continued under that name and the same ownership since.

First National Bank, Alden. This bank was started in 1892 by M. D. Hawver, president ; and J. S. Ulland, cashier, as a private bank. C. L. Todd succeeded J. S. Ulland as cashier in 1893, and Ralph 0. Olson succeeded C. L. Todd as cashier in 1894. The bank was organized as a state bank in 1895. Soon after, NY. H. Walker succeeded M. D. Hawver as president, and still continues as such. When the bank was organized Peter Hansen was elected vice-president, and still retains that office. Ralph O. Olson continued as cashier until December of 1910, when he was elected vice-president, which office he still holds. The state bank was converted to a First National bank in 1903, with a capital of $30,000.00, and the following officers were elected at the annual meeting in January, 1911: W. H. Walker, president; Ralph O. Olson, vice-president ; Peter Hansen, vice-president ; O. N. Hoel, cashier ; Alfred P. Christensen, assistant cashier. Directors are as follows: W. II. Walker, Peter Hansen, John Rasmussen, Matt Olson, Ralph O. Olson, Henry Steele, O. N. Hoel, and Fred Hartmann. The capital and surplus is now $43,000.00.

Security State Bank, Alden. This bank was organized May 4, 1904, with a capital stock of $10,000.00, with James McConnell, E. P. Greeley, W. H. Walker, Matt Olson, and Ralph O. Olson as directors; E. P. Greeley, president; James McConnell, cashier. On June 5, 1909, James McConnell resigned and A. C. Paulson was elected in his place. The bank today has deposits of $65,000.00, a surplus of $2,000.00, and is gaining and in healthy condition.

The State Bank of Hartland was incorporated October, 1902, with a capital stock of $10,000. Officers were elected as follows : J. C. Cheney, president; E. H. Stensrud, vice-president; E. O. Nervig, cashier. The first two officers are still in office. E. O.

Xervig resigned as cashier in January, 1906, and his place was taken by John J. Hanson, who held the position until September, 1930, when he resigned. Helmer Stensrud was then appointed cashier. The bank has a surplus fund of $7,000. The statement rendered at the close of business January 7, 1911, was as follows: Resources - Loans and discounts, $116,936.34; overdrafts, $527.54; banking house, furniture and fixtures, $3,500; cash resources, $35,737.61; total, $156,701.41. Liabilities - Capital stock, $10,- 000 ; surplus fund, $7,000 ; undivided profits, $107.01 ; deposits, $139,594.48; total, $156,701.49.

The Manchester State Bank was incorporated October 10, 1906, Charles Soth, A. O. Moen, Ole M. Olson, G. O. Myran. T. E. Noble, Bennett Asleson, P. O. Slette, John Xilson, Charles E. Paulson, H. Christopherson, C. H. Christopherson, Alfred Christopherson, K. H. Slette, John A. Severson, G. Haakenson, L. O. Hartz, J. A. Thykeson, Henry Soth and H. H. Dunn being the in¬ corporators. It has a capital of $10,000 and is located in the village of Manchester, seven miles north of Albert Lea on the Minneapolis & St. Louis railroad. The home of the bank is a mod¬ ern brick building which it has occupied since December, 1907. The first board of directors of the bank consisted of the follow¬ ing : Charles Soth, O. M. Olson, Charles E. Paulson, Bennett Asleson, G. O. Myran, Alfred Christopherson and Henry Soth. The first officers were : President, Charles E. Paulson ; vice-presi¬ dent, O. M. Olson; cashier, Henry Soth, and these men, with the assistant cashier, whose office has since been added, are still the officers of the bank. ITenrv Soth was the active manager of the bank until the fall of 1908, when R. C. Paulson was elected assistant cashier, since which time the bank has been managed by him.

The London State Bank was incorporated on March 24, 1908, with a capital stock of $10,000 and its management vested in a board of six directors. At its organization Fred Crisman was elected as president ; G. P. Meadowcroft, vice-president, and George Funda, cashier, to which offices they have each been re¬ elected at the last annual meeting. The bank is in a prosperous condition, having placed $1,000 in the surplus fund during the two years and pays 4 per cent on time deposits.

The First State Bank of Myrtle, capital $10,000, was organ¬ ized in the summer of 1907, the stockholders being the local farmers and business men of Myrtle and vicinity, together with prominent business men and bankers of Northwood, Iowa. The president is T. S. Hanson, who is also cashier of the AYorth County State bank of Northwood, one of the strong financial institutions of northern Iowa; the vice-president is Peter Nelsen, a promi¬ nent retired farmer living near Myrtle; the cashier is E. E. Dunn, who is very popular in the community and well qualified by many years of banking experience in Iowa and Dakota; the other directors are F. E. Dunn and A. A. Schumacher, substantial farmers living near Myrtle, and C. H. Beckett, who is vice-presi¬ dent of the Worth County State bank of Northwood, Iowa. That this bank is conducted along progressive lines is attested by the fact that it occupies its own brick bank building, fitted with modern furnishings, a hurglarproof vault and safe, and is still further protected by an electrical burglar alarm system recently installed. That this high class equipment and the strength and character of this bank is appreciated is evidenced by deposits of $50,000, which for a young bank in a small town is an eloquent expression of public confidence in the institution. The bank pays good dividends and lias at this time a surplus and undivided profit account of $2,000.

The First National Bank of Emmons was organized May 2, 1903, with a capital of $25,000. Its first officers were H. M. Martinson, president; P. M. Joice, vice-president, and N. H. Rasmusson, cashier. October 1, 1903, H. M. Martinson and P. M. Joice sold out their interest and H. H. Emmons was elected president and Alfred Emery vice-president. This institution has made a steady growth and has now an average deposit of $150,- 000 and a surplus of $8,000. The stock is distributed among over forty stockholders, most!}" farmers in the vicinity of Em¬ mons village. The present directors are S. L. Davidson. IT. H. Emmons, Alfred Emery, O. H. Knutson, William L. Nenge, Nick Nelson, N. H. Rasmusson, K. N. Troe and T. K. Troe. The offi¬ cers are H. H. Emmons, president ; Alfred Emery, vice-president ; N. H. Rasmusson, cashier, and T. K. Troe, assistant cashier.

The State Bank of Clarks Grove was' organized under the state banking laws September 1, 1903, with a paid in capital of $10,- 000, the following officers being elected: Alfred Christopherson, president; Hon. J. C. Johnson, vice-president, and Charles E. Paulson, cashier ; and they have continued in office to the present time. The above named officers, with Paul Hanson and Robert Anderson, constituted the first board of directors. The busi¬ ness of the bank has steadily grown, showing the prosperity and good standing of the community, and the venture was a profit¬ able one from the beginning. In 1904 a substantial brick build¬ ing was erected for banking offices. The deposits at the present time are over $90,000. The statement under date of January 17, 1911. is herewith given : Liabilities - Capital stock, $10,000 ; surplus, $4,000 ; profit and loss, $675.25 ; interest received, $303.18 ; exchange, $3.40; time certificates of deposit, $56,134.79; deposits subject to check, $30,873.70; cashier's checks, $4,600.33; total, $106,590.65. Resources - Loans and accounts, $75,890.89; bonds,

The Farmers State Bank of Gordonsville was organized in June, 1907, with $10,000 capital. L. Dwelle was elected presi¬ dent ; IF. T. Tove, vice-president, and J. L. Miller, cashier. The institution does a general banking business, and handles foreign exchange, steamship tickets to all the principal ports, insurance, collections and farm loans; and the officials are noted for their courtesy and sound methods. It is the policy of the bank to give its customers the best protection possible, and to this end no expense has been spared. The vault is protected by electrical steel lining and alarms, and is absolutely burglar proof as well as fire proof.

banking laws in February, 1911, with a paid up capital of $10,000, the stock being taken by reliable business men of Albert Lea and some of the residents of Oakland and vicinity. The board of directors are Robert B. Skinner, a retired miller ; Alfred Christopherson, cashier of the First National bank of Albert Lea ; Y illiam L. Palmer, M. D. ; Herbert E. Skinner, a successful real estate dealer, and Ben H. Clement, formerly assistant cashier of the First National bank of Albert Lea. The officers are Alfred Christopherson, president; Robert B. Skinner, vice president, and James L. Sorenson, cashier. A handsome and substantial brick building is being erected. The institution is one that will be a credit and convenience to the community and will materially assist in promoting the welfare of the section in which it is located.