Richardson County, Nebraska - Chapter 18, 1917

Chapter 18

During the pioneer era of Richardson ctxint}- there were ikj bank^ and very little banking business done except such as was conducted by the early merchants of those days. The history of I)anking in Nebraska properly begins with the organization of Nebraska Territory in 1854. The country was then undergoing an era of inflation wliich reached its flood tide in 1857 and then came to an inglorious iinish, for the simple reason that there was practically very little real money in the territory and nothing in the way of genuine assets upon which the banks could rest secure. The new states and territories of the West were a fertile and prolific field for "wild cat" banks and Nebraska had her share of these banks, which were permitted to issue their own paper money, with little or no assets behind them. A number of banks were chartered by the state during the second session of the Legislature in December, 1855, and .\bel Downing Kirk, a Richardson county pioneer, who erected the first business house in .Vrcher, the first county seat, and a member of this Legislature, was a member of the committee which had the establishment of the first banks of the territory in charge. During the session of the territorial Legislature, held in 1857, a number of other banks were chartered, which lasted no longer than their predecessors. Along came the panic of 1857. which practically wipeil out the greater number of the new banks, their number still further diminishing until the Civil War era. During 1857 there were four banks in operation in Nebraska: in 1858 this numlier had been increased to six; the numjjer diminished to Iiut two banks in 1859 and in 1861 there was Ijut one of the chartered hanks in operation. Money, which had never Ijeen plentiful in the territory, became more and more scarce and emigration was checked and brought practically to a standstill during these years. In 1865 there were seven banks doing business, this number was increased to twentv-eight by 1873 and there was no further increase of banking institutions until the early eighties and after the country had recovered somewhat from the disastrous panic of 1873. .Since the early eighties there has been a steady increase in tiie numl^er of banks in the state, along with the great increase of material wealtli in all sections of the state. The Civil War period brought considerable real money into the territory because of the deflection of the trade route from Kansas-Missouri through Nebraska. Banks were established to care for the money needs of travelers and freighters, and monev became plentiful instead of being a rarity.

Banking Needs Of The Pioneers

Banks were not needed during the pioneer days of Richardson countv, for the very simple reason that there were very few people who had monev other than that which they could keep in a strong box at home or carry about with them. What little banking was done was taken care of bv the merchants and traders.

For many years after the coming of the pioneers to Richardson count\- the business in this line was transacted at St. Joseph or Atchison. It is claimed that- the first to make a move to establish a bank in Falls City was B. F. Lushbaugh, who came down here either from Nemaha or Otoe county. His efforts went so far that he liad a room prepared and had provided the necessary stationery, but for some reason or other the 1)ank was never opened.

The first bank that did open its doors in Falls City was a private bank and was located on the site of Peter Kaiser's place, on the west side of Stone street, between Sixteenth and Seventeenth streets. A small brick building, the first of the kind to be built on the townsite, was located there a distance of nine or ten feet back from the present front line of the buildings on that street. In this place the Keini bank and, what was later known as the Keim & Grable bank, was located. At about the same time the Hinton bank, also a private bank, was opened for business and was located on the same street, but a few doors from the former. These two pioneer institutions of the kind served for several years the purpose for which they were established, but unhappily, owing to the looseness and lack of safeguards in the laws controlling banks in those days and business conditions controlling in the country at large at the time they met the fate of many other institutions throughout the West and were forced to discontinue lousiness. These banks were established in 1872.

Present Banks In Richard.Son Countv

Richardson county now has a total of sixteen banks, located as folic .w: First National Bank, Falls City. Richardson County Bank, Falls City.

Ivills City State Bank, I'alls City. JJume State Bank, Humboldt. Xational llaiik <>i Humboldt, Humboldt. . State Bank of Humljoldt, Humboldt. The Dawson Bank, Dawson. Bank of Salem, Salem. Bank of Rulo, Rulo, V'erdon State I'ank, \'erdon. Farmers and Merchants Bank, X'erdon. The State Bank of Stella, Stella. I'armers State Bank, Stella. - Citizens Bank, Shubert. Jv'irmers State Bank, Shubert. Barada State I'ank, Barada.

The following, taken from the twenty-tifth annual report of the secretary of the state banking board of the state of Nebraska, for 1916, shows the real-estate and other loans, capital and surplus, net profits and deposits of the state banks of this county, X(ivenil)cr 17, 1916: Real-estate loans, $327,912.23: all other loans, $2,093,837.34; capital, $419,500; surplus, $128,- 700: net undivided profits, $30,128.71; deposits, $2,787,997.98.

Pioneer Banking Houses

C. L. Keini, who was the father of the present editors of the falls City Journal, A. R. and Miss Genevieve Keini, was one of the pioneers in the banking business in Falls City. He came here from Pennsylvania, bringing with him an ample supply of funds, and in the month of Novemljer, 1871, opened a banking house in a small brick building since torn away to make room for a larger building and located on the present site of the Peter Kaisers place, between Sixteenth and Seventeenth streets on the west side of Stone street. The following spring H. B. Grable became a partner, and the business was conducted under the firm name of C. L.- Keim & Com])any and some time afterwards the style was changed to The Falls City Bank of C. P. Keim & Company. In 1873 these gentlemen Iniilt the house later occupied l)y them, directly to the north, a twenty- four b\- sixty feet brick, two stories and a full sized basement, w itii an elegant front, with large plate glass windows. The front room was al>out twentv-two bv fortv feet, with a finclv finished and conventientlv designed counter runuinc

The banking house of John Hinton, late of Luzerne county, I'ennsylvania. was opened by Smith & Hinton in the month of February, 1872, in a large room a few doors to the north of the Keim-Grable bank in a building, then occupying the present site of the Tefft shoe store and the later l.>cation of the First National Bank, opened in 1882. In April, 1873, ^If- Smith severed his connection with the bank and Mr. Hinton continuetl the business alone until August, when J. ]M. Peabody became the senior partner. Tn April, 1874, Mr. Peabody also withdrew and for a time Mr. Hinton continued, as before, alone. The house occupied by Mr. Hinton was a small frame structure, but was provided with a large lire-and-burglar-proof safe ;md all the other conveniences necessary to an up-to-date banking institution. He was later joined in the business by James L. Slocum, who until the present day has continued ever successfully in the l)anking business.

The population of the county in those days was but little below that of the present time and the two banking houses did remarkably well, with the exception of the year of the panic - 1873. During the year 1874 the l)usiness of the two houses was estimated at $700,000, the deposits being about $550,000.

First National Bank Of Falls City

The First National Bank of Falls City, which has always stood in the forefront of the leading financial institutions of Richardson county, was a successor of the banking house of Reuel Nims & Company. More money than could be furnished by private individuals was necessary to accommodate the large and growing increase of patronage, hence the change which necessitated the advent in the city of an institution to be organized as a national bank. The bank was organized just at the time when the line of the Missouri Pacific Railway Company was entering Falls City. This railway company had but just completed the work of laying the connecting links which bound in rails of steel the line between Kansas City. Mis- .souri and Omaha, and opened for business as the second line entering Falls City. The coming of the road gave birth to the new towns of \'erdon ant! Stella, besides bringing into closer touch the north part of the county to outside markets. Farm values were instantly and very materially effected and I'alls City's importance as a county seat greatly enhanced.

Xatidiial Bank of I'alls City, having complied with all the requirements of law so made and provided was "authorized to commence the business of banking."' The bank was opened for business about July i. 18S2. The bank organized with a capital stock of $50,000, with a privilege of increasing it to $200,000, if occasion required. The first officers of the bank were: President. Stephen B. Miles; vice-president, John W. Holt, ca.shier, Reuel Nims; assistant cashier, \^an S. Ashman; board of directors, J. Cass Lincoln, of Salem ; John W. Holt, and Reuel Nims.

The high standing of the personnel of the founders of this institution, coming, as they did, after the unfortunate and disquieting expe'rience endured under attempts made by others formerly to engage in this line of business, gave the new bank the instant prestige which has continued to this hour making, it one of the leading financial institutions in Nebraska.

The present officers of the First National Bank of Falls City are: President, Joseph H. Miles; vice-president, Arthur J. Weaver; cashier, J. S. Lord; assistant cashier. William Uhlig; assistant, G. S. Lyon; directors. Joseph H. Miles, Arthur J. Weaver, John H. Morehead. P. H. Jussen and William Uhlig.

The Falls City St.A.Te Bank

The Falls City State Bank, while the youngest in years of either of the banks of Falls City, is one of the leading banks of the county. It \vas organized in 1895 by Silas P. Gist, of Salem, and William A. Greenwald, Thomas J. Gist, George Dorrington and William E. Dorrington, of Falls City, with William E. Dorrington as president: T. J. Gist, cashier; W. A. Greenwald, vice-president. The bank was organized with a capital of $50,- 000, which in the last few years has been increased to $75,000. The beautiful building in which the bank carries on business was erected in 1894-95 and is one of the most substantial business houses in the county. The present officers of the bank are: President, L. P. Wirth: vice-president, G. P. Greenwald; cashier, W. A. Greenwald; directors, E. P. ^VirtI^, W. A. Greenwald, G. P. Greenwald, S. P. Gist and T. J- Gist.

The Richardson County Bank was incorporated and commenced Inisiness in i88o. Its capital of $50,000 was all paid up in cash and it started in business with ample funds to meet the requirements of the city and country. As a result its Inisiness has grown since the day it opened its doors, and each year has seen its business larger than the preceding year. It now has a capital of $50,000 and a surplus and undivided profits of over $25,000.

This l.KUik was tirst lucated at 1509 Stone street, hut in 1887 it purchased the corner right south of the court house and erected thereon the tine and commodious three-story building which it now occupies. Its present officers have been with it for many years. George \\'. Holland has been its cashier from the start; J- L. Slocum, its president, came into the bank in 1882 and has gi\en it his constant attention since that date. J. R. Cain and \\'. H. Crook, two of its directors, also came into the organization at about the same time and have been associated with it every since. .\. I". Schaible, one of its assistant cashiers, came to the bank in i8g6, and I'.. I\. i'-aker, another of it assistant cashiers, in 1905. It has always been the policx' of the bank to make as few clianges in its officers or directory as possilile. The result is that each of its (ifficers and directors is well and personally aci|uainteil with all the citizens of the community.

During the time the bank has been in business it has passed through three panics, and at all limes was able to furnish assistance to those needing and deserving help. The bank has always pursued a conservative course in transacting liu>ines> and as a result, it has had but few losses, and \er\ little litigation. It is today the oldest bank in the county and one of the oldest in the state, it is what might be called a close corporation, there being but few stockholders, the large bulk of the stock being owned by its officers and managers. During the life of the bank it has had but two deaths in the ranks of its stockiiolders and directors. In 1901 \Villiani Schock, who had been vice-president of the l)ank, passed away; and in 1905. I'lzra J£. Mettz, who had lieen its assistant cashier since ]88i. was laid to rest. Since 1882 J. L. Slocum, J. R. Cain. \\. H. Crook and George ^^'. Holland ha\e been associated together in this bank, a period of thirty-five years. There is hardl}- a parallel case in the state of Nel^raska. where four men have been in such close relations for such a long time. When these men Ijecame associated together they were boys. The years have come and gone and now old age is beginning t(; show upon them, but they continue to render assistance in every way to make Falls City "the best place on earth."

The I5Arada State Bank

This bank is operating un.der state charter Xo. 924. The official report of the condition of the b.'ink at the close of business, Mav 7, 1917, shows:

This l);uik is operating under state charter Xo. 1306. The report of the ciindition of the hank at the close of Inisiness. Aug-iist 21, 1917, shows:

Farmers State Bank Of Shubert Home State Bank Of Humboldt

The Home State Bank of Humboldt, of which Claud M. Linn, of that city, is president, was organized on February i, 1915, by C. M. Linn, Otto Kotouc, S. M. Philpot. R. R. Philpot, Dr. George Gandy, Edward Uhri. Louis Stalder and Levi L. Davis. The capital stock was $25,000. The bank has had a steady and satisfactory growth from the day it opened its doors for business and is fast forging its way to the front rank of the banks of the county. It owns its own substantial brick building, which had been occupied as a banking house from the very early days of the town. It has lately been remodeled and new and modern fixtures installed. The deposits now ( 191 7) amount to a total of $300,000, and the total resources are $335,000. The bank makes a specialty of farm loans and does a general banking business. The present officers of this institution are: C. M. Linn, president: R. R. Philpot, vice-president; Otto Kotouc, cashier; Glen D. Jenkins, assistant cashier; directors, C. M. Linn, R. R. Philpot, Otto Kotouc, Dr. George Gandy and Edward Uhri. The unprecedented success of this banking house is very largely due to the personal supervision given it by the president, Claud M. Linn, who is rated as one of the most painstaking, shrewd and farsighted business men of the county. This bank is strictly a home institution, as its name indicates, the capital being held strictly b\- those who are actual residents of Humboldt and directly interested in the welfare and upbuilding of that city. A report of the condition of the bank at the close of business Augu.st 21, 1917, shows:

Liadii.Ities The Dawson Bank Of Dawson

The Dawson Bank of Dawson was established in 1887. the organizers being ]\I. Riley. B. S. Chittenden, Daniel Riley, M. B. Ryan, Thomas Fenton. Morgan McSweeny and Lawrence A. Ryan, with a paid-up capital stock of $10,000. The first officers of the bank were: President, M. B. Ryan; vice-president, B. S. Chittenden; the directors l)eing these and the aforementioned organizers. The present officers are : President, Daniel Riley ; vice-president, L. M. Ryan; cashier, Dan J. Riley; assistant cashiers, X. T. and Thomas R. Rilev ; the l)oard of directors, including these officers and Bryan Riley, Thomas M. Ryan anil T. R. Rilex". The bank statement at the close of Imsiness, August 21, 1917, shows:

Richardson Countv, Nebraska The State Bank Of Stella

Ihc one figure who stands out pre-eminent among otliers in llic hanking business at Stella is that J. Robert Cain, Sr. He went to Stella in 1886 and bought the Bank of Stella, owned by Hull & Ferguson, and the State- Bank of Stella, owned by Sweet Brothers, the purchase being made for a corporation: and Air. Cain has been personally identified with the bank from that time to the present. The consolidation known as the State Bank of Stella was (organized in January, 1886, wath the following incorporators: Solomon Jameson, James L. Slocum, George W. Holland, B. R. Williams, J. R. Cain, Sr., and Charles L. Metz. The bank was organized with a capital stock of $25,000 and Mr. Cain became cashier. In July, 1886. the capital was increased to $30,000 and later was increased to $50,000. Mr. Cain became president in 1907. The last statement showed capital st(jck, $50,000; undivided profits, $2,500, and deposits, $250,000. This splendid lianking house is one of the most substantial in the state and owns its own brick building, which is nicely furnished. The present otificers are: President, J. R. Cain, Sr. ; cashier, E. C. Roberts: vice-president, J. F. W'eddle : assistant 'cashier, H. \'. Davis: directors, J. R. Cain, James L. Slocum and J. F. Weddle.

State Bank Of Humboldt The Bank Of Rulo

This bank is operating under charter No. 354. The formal report of the condition of the bank at tlie close of business, .\ugust 21. 19 17, shows :

State Rank Of Verdon

This bank is operating- under charter No. 433. The formal report of the condition of the bank at the close of business, .August 2\. i()r7. shows:

Farmers And Merchants Bank Of Verdon

The Farmers and Merchants Bank of \>rdon is operating under state charter No. 821. A formal report of the condition of the bank at the close of business, August 21, 1917, shows:

A Local Insurance Company

The Richardson Count}- ]""armers Mutual Fire and Tj'glitning Insurance Company was organized in the month of June. 1887. the late Samuel Lichty having been the jiractical promoter of the same and leader in the movement that led to the general introduction of sucli companies in the state at large; for it was he who wrote the bill that was later introduced in the state Legislature by Henry Gerdes. at that time representing this district in the lower house, and the enactment of which paved the way for the organization of mutual insurance companies in Nebraska. 'Sir. Lichty also organized the Nebraska Mutual Lisurance Company, or Farmers Mutual of Nebraska, which provides fire, lightning and tornado insurance, the Richardson county company writing its storm insirrance through its present secretary, Hon. John Lichty, in this latter company. The Richardson company, which was formall\- incorporated under the laws of the state in i8yi. and which was originally backed by Samuel Licbtw L W. Harris, Cieorge -Vbbott and George W^atkins, began business with the aim of eventually writing $100, ODD insurance, but that figure was jjassed within a few months, and that company now has more than 1,000 policyholders and has in force more than $2,750,000 dollars of insurance. It is an assessment company and the losses are almost so wholly negligible that in 1916 a levy of two mills covered all assessments against the policyholders. The present officers of the company are : President, N. D. .\uxier, Verdon : secretary, John Lichtx , h'alls City; treasurer, Joshua Bloom, \'er(lon, and directors, besides the above-named officers, John .\hern, Shu!)ert : ^lartin Nolte, Falls City; S. H. Knisely, of Falls City; J. .V. Hartman, Rulo: Gus Duerfeldt, Barada; K. R. Draper, Dawson; John Holechek. HumlK.ldt, and F. F. Fwing, \'erdon. The offices of the company are kept open at Ivdls City.