Adams County, Nebraska - Chapter 13: Banks and Banking, 1916

Chapter 13: Banks and Banking

Early banking in Adams County was conducted through private enterprises. Probably the first institution was that of A. H. Bowen and James Laird who began banking operations in connection with their law business in Juniata. This was in 1873. A section of the law ofiice was jjartitioned off for banking purposes and the equipment was one of extreme simplicity. This enterprise was conducted by the two lawyers for only a few months.

During the latter part of 1873 or early in 1874 J. J. Worswick associated with a man by the name of Wells launched a banking enterjirise at Hastings. The firm of J. J. Worswick & Company was the first banking institution to operate in Hastings. The St. Joseph & Grand Island Railroad, then called the St. Joseph & Denver City, terminated in Hastings and Mr. Worswick opened his bank for the purpose of financing the extending of the railroad to Grand Island. The firm failed in its enterprise in about a year after its opening. This bank Avas located on First Street at the rear of the lot which is now 101 North Denver Avenue. Worswick was an Englishman, jovial, and a lover of hunting. He returned to England following the collapse of his prairie venture, and his partner returned to Omaha.

During this year, however, 1873, there was established a bank destined to survive the inicertainties of tlie new country and to continue its life unbrokenly until the affairs of the county reached a state of stability. This was the Adams County Bank, which was the beginning of the present First National Bank. Tliis bank was organized late in the year 1873 by J. S. ^Iclntyre who came to Hastings from Clarinda, Iowa.

The vicissitudes of the early banks only reflected the inicertainties of the earlier settlers. There was a demand for loans to develop the young comity but the nature of the securities and the problematical state of the future tended to send interest rates soaring, and this condition continued more or less until after the drought of 1894. and the jjartia] droughts of other years. Not until after the introduction of winter wlieat as one of the i^rincipal crops of the community did affairs become stable. In the jieriod extending from about 1878 to about 1885 interest on farm loans ran as high as 12 per cent per annum, while interest on chattel mortgages ranged from one to four per cent per month.

On more than one occasion bankers were at tlieir wit's ends in grappling witli the problems confronting them. The low prices and crop failures prevailing around 1894 and 1896 caused some of tlie i'armers so much discouragement that they were disj)osed to yield their farms to meet the mortgages which they bore, and in some instances bankers of the county purchased supplies for their customers in order to tide them over to the better times which the more courageous felt sure were lying just ahead. When the Adams County Bank, the forerunner of the First National, was purchased by A. L. Clarke and George H. Pratt, some five years after its o])ening in 1873, the deposits in the institution aggregated between seven and eight thousand dollars. In the statement issued by the First National INIay 1, 1916, the deposits are given as $1,7'27,'236.18. This growth in deposits marks the development of the country in wealth and the consequent establishment of business confidence.

The deposits of the three national banks of Hastings - the First National, the German National and the Exchange National - as shown by their statements made February 28, 1896, aggregated $381,88.5.42. Ten years later, November 12, 1906, the statements of the same three banks show aggregate deposits of $2,101,217.76, while the total of the deposits in the four banks oiierating in Hastings at that time amounted to $2,307,141.49. On ]May 1. 1916, deposits in the four banks of Hastings - the First National, German National, Exchange National and the Bank of Commerce - totalled $3,484,038.20. On the same date about three thousand two hundred dollars was on deposit in the Postal Savings Bank. The Bank Register of the Credit Company of New York gave the total deposits in the ten Adams County banks operating in towns outside of Hastings at $790,000 in June, 1915. From the insignificant deposits of the private banks of the county established in 1873 the aggregate in 1916 is considerable in excess of four and one-quarter millions of dollars, distributed among fourteen banks all of which bear evidence of being upon a thoroughly stable basis. Taking the 1915 statements of the banks outside of Hastings, and the May 1, 1916, statements of the latter, the aggregate of the deposits is $4,274,038.20. to which must be added about three thousand two

The Adams County Bank which was organized in the latter part of 1873 by J. S. JNIcIntyre was located in a small frame building in Hastings. It fronted east on Hastings Avenue at about the location of the present First National Bank Building. In the early daj^s two men were able to attend to the business of the bank. Mr. Mclntyre sold the bank to George Hazzard and in 1877 it was converted into a stock companJ^ The principal stockholders were George Wilkins, Samuel Alexander and Oswald Oliver. Soon afterward it was purchased by A. L. Clarke and George H. Pratt and in 1881 it was reincorporated as the First National Bank with a caj^ital of $25,000. In 1879 the frame building w^as supplanted by a twostory building built of red brick and erected at a cost of about eight thousand dollars. The red brick building was torn down in 1903 and the present building was erected at a cost of $40,000.

It was in 1902 that the First National Bank purchased the Adams Count}' Bank which had been opened Ajsril 2, 1886, with William Kerr, president; J. M. Sewell, vice president and O. G. Smith, cashier. This bank was located at the southeast corner of Lincoln Avenue and Second Street, the present location of the Bank of Commerce. ^Vhile bearing the same name as the bank preceding the First National and out of which the latter grew, ]Mr. Kerr's bank was an entirely different organization. The capital stock of the Adams County Bank was $60,000.

Tlie capital stock of the First National Bank is now $200,000. Its officers are A. L. Clarke, president; W. A. Taylor, vice president; Fred Pease, cashier; W. B. Remer and O. A. Riley, assistant cashiers. The directors are A. L. Clarke, G. J. Evans, Ernest Hoeppner, W. M. Lowman, C. J. Miles, Fred Pease, G. H. Pratt and W. A. Taylor.

The Exchange National Bank has existed as a national bank since January 8, 1884. The beginning of the institution, however, dates back to October 14, 1877, when I. M. Raymond, A. S. Raymond and A. Yeazel opened the Excliange Bank, a private institution with a paid up capital of $10,000. These men were residents of Lincoln, in which city the Raymonds Avere wholesale grocers. I. M. Raymond Avas the president of the institution, and Mr. Yeazel came to Hastings to manage the business, and was a resident of the city for many years. INIr. Yeazel died early in the nineties.

figure it now stands. In 1891 W. H. Lanning became president of the bank, Charles G. Lane becoming casliier at the same time. JNIr. Lanning continued as president until 1909 when he retired and 31 r. Lane became the jj resident and David P. Jones the cashier. The Raymonds still continue their interest in the institution.

This bank began its business in a frame building near the site of its present location. It continued in the frame building mitil 188.3 when the Cameron Block was built. Upon the completion of that block the bank moved into the location which it now occupies. The present officers of the bank are: president, C. G. Lane; vice president, V. B. Trmible; cashier, D. P. Jones.

The Bank of Commerce is a state bank. It Avas opened for business August 1, 190.5, with a capital stock of $50,000. This bank is located at the southeast corner of Hastings Avenue and Second Street, and began business in the rooms occupied by the Adams County Bank of which William Kerr was the jiresident. At the time of organization the officers of this bank were: president, William Lowman; vice president, O. C. Zinn; cashier, F. E. Garratt. In April, 1915, the management changed and the controlling interest of the bank was purchased by J. S. INIarvel and J. W. JNIarvel, who came to Hastings from Hamilton County. The capital stock at present remains as it was originally, $50,000. The building occupied by the Bank of Commerce was remodeled during 1914 and 1915 at a cost of about $10,000. At this time a safety deposit vault was installed and modern conveniences for bank customers.

The German National Bank was organized June 24, 1887, with a capital stock of $50,000. Senator Charles H. Dietrich was president, W. ]\I. Lowman, vice president; W. H. Fuller, cashier, and John Slaker, assistant cashier. A nvmiber of years after organization ]Mr. Lowman sold his interest in the bank to Jacob Bernhardt, who became vice president. INIr. Bernhardt disposed of his interest to William JNIadgett who in turn sold to J. P. A. Black. Henry Siekmann succeeded Mr. Bernhardt as vice president. A few years afterward ]Mr. Bernhardt died at Depue, Illinois. In July, 1905, Senator Dietrich retired from the l)ank and \\'as succeeded in the presidency by J. P. A. Black Avho still retains the ]5osition. In October 1911, ]\Ir. Slaker. the cashier, who had been with the bank for twenty-four years retired. A. R. Thompson became vice president and J. H. Lohmann cashier. The i)resent officers are: J. P.

A. Black, president; A. R. Thompson, vice president; L. J. Siekmann, vice president; J. H. Lohmann, cashier and H. Welch, assistant cashier. In 1906 the deposits in this bank were $38.>,760 while in the statement of May 1, 1916, they aggregate !i>797, 117.83.

The German National Bank first opened its doors at 108 North Hastings Avenue, where it remained until 1889 when it removed to the present location in the building owned by ]Mr. Dietrich. At that time the building was a store building and before the installation of the bank was occupied by the dry goods store of Pickens & Hanna. In 190.5 the building was completely remodeled and new fixtures costing $.5,500 installed. In 1912 the furniture was further im^Jroved at a cost of about $4,000.

The Postal Savings Bank was opened in the Hastings Post Office July 13, 1911. ]Mrs. J. S. Spriggle and C. Harrison Fergus, R. F. D. carrier No. 3, tossed a coin to determine who should be the first depositor. Mr. Fergus won and opened his account with a deposit of $1.25. By the end of the month the savings bank had thirteen dejiositors aggregating $235. When the bank was opened each dej^ositor was limited to $500 per year and not to exceed $100 in one month. In July 1916 the limit was raised to $1,000 with no restriction as to the amount ])er montli, provided the yearly aggregate does not exceed one thousand dollars. By January 1, 1912, the dei)osits amounted to $1,400; in 1914 at the same period they had climbed to about four thousand eight Hundred dollars. During 1914 there were many withdrawals for homebuilding so that January 1, 1915, the deposits amounted to about two thousand dollars. At the beginning of 1916 about three thousand one hundred dollars was on deposit in the postoffice. At this time the number of depositors are about forty-five. Several of the depositors have converted Itheir deposits into bonds which pay them interest at the rate of 2io', per annum. Regular deposits draw 2',.

In November 1881 two banks were established which were later consolidated, and the consolidated institution resulted in the only failure in the banking annals of Adams County. The Farmers & INIerchants Bank was organized by A. H. Cramer and Harrison Bostwick. The firm erected a Ijuilding at the southwest corner of Denver Avenue and Second Street. About the same time the City Bank was organized and was located in the stone block. L. II. Tower was the president and E. S. Fowler the cashier of the City Bank. Its ca])ital stock was $20,000. In October, 1883, the City Bank was reorganized as a national bank and became the City National Bank. Its capital stock was raised to $50,000. A. H.

Craiuer disposed of his interest in the Farmers & Merchants Bank to his partner, Harrison Bostwick in 1884 and the following year JNIr. Bostwick and Walter G. Clark of Omaha secured a controllinginterest in the Citj^ National Bank by purchasing the interests of L. II. Tower and E. S. Fowler. After the consolidation which came as a surprise to the remaining stockholders of the City National Bank, the institution continued vmder the latter name. Its officers were: president, Harrison Bostwick; vice president, C. J. Dilworth; cashier, W. G. Clark; assistant cashier, J. M. Ferguson. The directors were Harrison Bostwick, J. ]M. Ferguson, W. G. Clark, C. J. Dilworth, John Slaker, John JSI. I^'man and G. J. Evans.

Harrison Bostwick was prominently identified Avith politics and is said to have been a dispenser of railroad patronage. Rumors of indiscreet loans became rife, particularly regarding a brick manufacturing plant which was being developed at Brickton, and these resulted in a run on the bank August 12, 1890. Its doors Avere closed, but ui)on the recommendation of Bank Examiner Griffith the bank was reopened in the latter part of September after an assessment of 1.5 per cent had been levied on the capital stock. By the reorganization effected at this time E. ]M. Morseman of Omaha became president: G. J. Evans, vice president and A. W. Jones, cashier. Among the directors of this organization was William Neville of North Platte, father of the present democratic candidate for governor. Before the year Avas over, however. Doctor Lymer of Iowa was apjjointed receiver to Avind up the affairs of the institution. The deposits in the City National Bank were in excess of $3.50.000 and the failure resulted in much litigation. Some loss was entailed by depositors and the stockholders Avere heavy losers. Harrison BostAvick, the president, Avas a lawyer. At present he i-esides in Seattle, Wash., and is reported to have amassed a fortune.

In August, 1879, C R. Jones and J. M. SeAvell opened a bank in .Timiata. This Avas a private bank and after a number of years it Avas bought by George T. BroAvn noAv a resident of California. This bank became the Bank of Juniata in 1900 Avith A. L. Clarke president, George T. BroAvn, vice president, and C. J. Van Houten, cashier. These remain the officers of the bank except that the ])resent casliier is Mr. W. A. Taylor. The frame building in Avhich the bank ojierated for many years Avas destroyed by fire in the winter of 1908. The present brick building Avas erected soon afterAvards and was occupied by the bank in September, 1909. In June, 191.5, the Bank of Juniata had on deposit $9.5,000.

Hastings Building And Loan Association

The Hastings Building and Loan Association was organized in 1896 and incorporated Mav 2 of that vear bv Henrv Siekmann, A. L. Clarke, E. C. Webster. David B. l". Breede, J. H. Fleming, S. C. Heacox, G. H. Pratt, John Rees. S. E. Howard, H. C. Haverly and J. M. Tennant. Before the organization of the present association another similar organization was carried on for a time. The first organization was called the Hastings Land, Loan and Building Association. It had no connection at any time with the present association.

The association has an authorized capital stock of $1,000,000 divided into shares of $100 eacli. The assets on October 1. 1896. were $l,062.o0; at the present time tliey have increased to $22.3.000: while in 1906 they Avere $9.5,000. The present officers are H. C. Haverly, president; F. L. Pease, vice president; .John Snider, attorney; J. O. Rohrer, treasin-er and secretarv.