uc 1 -NRLF ¥B bE? t, «nt 111 ; FIRST NATIONAL BANK OF CHICAGO CHARTER NUMBER EIGHT H I STORY 1913 ft 5 Q X THE FIRST NATIONAL BANK OF CHICAGO Digitized by the Internet Archive in 2008 with funding from Microsoft Corporation http://www.archive.org/details/firstnationalbanOOcookrich > I ' «■ ' .' c' ' ' ' t ' t r r r r ' FIRST NATIONAL BANK BUILDING Northwest Corner Dearborn and Monroe Streets THE FIRST NATIONAL BANK OF CHICAGO Charferflumber F&kf ^AAr/efAis/oru of it's progress /re JAe dan on wA/ehi/ opened for business, Jitfy 1, 18 63. /o the/ \same dafena/facenrnru, /a/er,un/Au/A/cA/sin- ^rorpora/edasAe/rA/ spftfiefjrs/7rus// satrajavwhs/ •••: BanF/ \;\W\v \ Z\>/ *• \\» » •■• '• ..•'.'.••'• \ / / '.'''••"'' .' ' •»•« I •»••••• • • CHICAGO. rmnJedfor friva/e Circulation amonjz /Ae s/ocA holders and patrons o/^heBcmk 191£ • • •.,.■• •~i ».*•••» « • , - « • * » »&*$ G^ CHICAGO M. A. DONOHUE & CO. THE FIRST NATIONAL BANK OF CHICAGO President James B. Forgan Vice-Presidents Howard H. Hitchcock Frank O. Wetmore Emile K. Boisot August Blum Charles N. Gillett Charles H. Newhall M. D. Witkowsky Arthur W. Newton Cashier Henry A. Howland Assistant Cashiers William H. Monroe Edward S. Thomas John P. Oleson H. H. Heins A. C. C. Timm William J. Lawlor John F. Hagey R. F. Newhall George H. Dunscomb Auditing Department H. L. Droegemueller, Auditor Clerical and Bookkeeping Departments William H. Monroe, Ass't Cashier Credit and Statistical Department J. W. Lynch, Manager Discount and Collateral Department Charles M. Walworth, Manager Foreign Exchange Department John J. Arnold Charles P. Clifford Manager Assistant Manager Law Department Edward E. Brown John Nash Ott Attorney Assistant Attorney Transit and General Books Department Charles R. McKay, Manager 264196 DIRECTORS FIRST NATIONAL BANK AND NATIONAL SAFE DEPOSIT COMPANY Benjamin Allen Samuel W. Allerton A. C. Bartlett E. K. Boisot William L. Brown Augustus A. Carpenter D. Mark Cummings James B. Forgan James J. Hill H. H. Hitchcock Marvin Hughitt E. T. Jeffery William J. Louderback Harold F. McCormick Edward Morris Charles H. Morse Eugene S. Pike Henry H. Porter, Jr. Norman B. Ream John A. Spoor Bernard E. Sunny Wm. J. Watson Frank O. Wetmore Clarence M. Woolley Also Directors and Members of the Advisory Committee of the FIRST TRUST AND SAVINGS BANK OFFICERS OF THE FIRST TRUST AND SAVINGS BANK James B. F organ, President Emile K. Boisot, Vice-President Lotas Boisot, Trust Officer Burt C. Hardenbrook, Cashier Robert D. Forgan, Treasurer David V. Webster, Secretary Frank M. Gordon, Manager Bond Department Roy C. Osgood, Assistant Trust Officer C. G. Fleager, Assistant Treasurer A. W. Converse, Assistant Secretary Robert L. Davis, Manager Real Estate Department Edward E. Brown, Attorney John Nash Ott. Assistant Attorney PREFACE THE First National Bank of Chicago opened its doors for business on the first day of July, 1863; its character has never changed. Upon the completion of a half -century's serv- ice — successful to itself and of value to the community — marked by growth coincident with that of Chicago, this history is presented. It is essentially a record of the past and but suggests the facilities and organization which has been built up year by year, until in equipment, in personnel of management, in the high standards which mark its daily routine, the bank stands as a model product of the National Bank Act. Not only is it a monument to those who laid the foundations and whose wisdom and prudence have made the name a synonym for strength and safety, but to those also who day by day maintain its reputation and its traditions, striving that the honored name may be handed down without stain to their successors. Under the authority of the board of directors a history of the institution, prepared by Henry C. Morris, was published in 1902, from which, with but little alterations, has been taken the record up to the renewal of the bank's second charter. The present reviewer acknowledges the obligation to Mr. Morris, and to the officers of the bank, who by criticism and advice have aided in the preparation of the volume. Guy Wickes Cooke. Chicago, 1913. ILLUSTRATIONS \ Opposite Page I. The First National Bank Building - Frontispiece II. Edmund Aiken ----------- 10 The First President III. The Bank's First Building --------18 Southwest Corner Clark and Lake Streets TV. Samuel M. Nickerson -26 The Second President V. The Bank's Second Building - - - - - ... 34 Southwest Corner State and Washington Streets VI. Ruins of the Second Building - - 42 After the Fire of 1871 VII. The Bank's Third Building --------50 Northwest Corner Dearborn and Monroe Streets VIII. Lyman J. Gage 58 The Third President IX. James B. Forgan -----66 The President X. Official Staff of 1910 --- 74 ' ' ' '..••■*>'■. The First National Bank of Chicago FINANCIAL conditions existing in Chicago at the out- break of the Civil War were not in the least flattering. Although in November, i860, the situation had been most auspicious, yet within two months after that date, by reason of the decline in southern securities, the notes of Illinois banking corporations were at a serious discount, and local banks unanimously refused to accept those which were considered the most doubtful in value. The total volume of the notes of all the banks having offices in Chicago at the close of 1861 was slightly less than $150,000, a sum utterly insufficient to satisfy the demands of the community; hence bills issued outside of the state, and not redeemable within its boundaries, were necessarily put in circulation. Indeed, the city was soon notorious as the center from which great quantities of this paper were scattered broad- cast. Thus the people suffered, trade was uncertain, and business was prosecuted for the next eighteen months under difficulties. Meanwhile the discussion of the proposed National Currency Act was progressing at Washington, and the divergence of opinion, aroused throughout the country by its consideration, THE FIRST NATIONAL BANK OF CHICAGO was showing that many well-informed financiers were looking forward to an improvement in monetary affairs, should such a measure ever become law. Some of these men resided in Chicago, and during the winter of 1862-63 they frequently met and talked over the prospects of the projected legislation. Prominent among them were Edmund Aiken, then about fifty years of age, and sole member of the private banking firm of Aiken & Norton; Samuel M. Nickerson, a young man of thirty-two, who had only recently arrived here, and was temporarily engaged in the distilling business; Byron Rice, a capitalist; Samuel W.AUerton, a packer; Benjamin P. Hutch- inson, a member of the Board of Trade, and several others. The place of these informal gatherings was usually at the office of Aiken & Norton, in Room I of the old Board of Trade Building, on the northeast corner of La Salle and Water streets. Chicago had at this time a population approximating 150,000 and it was evident to those endowed with reasonable foresight that this city was destined, as the years advanced, to attain a higher and higher degree of prosperity. It was likewise ap- parent that the banking facilities then existing, even in those days of civil strife, were inadequate ; moreover, the institution which should first prove itself worthy of public confidence would, when the war closed, have an enormous advantage over all competitors. The community had outgrown its infancy; conditions had been modified ; there was not merely room for, but an urgent need of, a well-organized bank, with ample capital and under a management both honest and skilled in the theory and practice of banking. The movement was opportune, and these men were thor- oughly fitted to grasp its possibilities. With the passage of [8] THE FIRST NATIONAL BANK OF CHICAGO the National Currency Act, and its approval by the President, the little group of Chicagoans felt that the hour for action had come. Not a single day was needlessly lost in perfecting their plans. The first step of which official record exists is the meeting of the interested parties, presumably in the office of Aiken & Norton, on May I, 1863. Upon that occasion formal articles of association, as prescribed by law, were adopted. The chief provisions were: that the name of the corporation should be " The First National Bank of Chicago ;" that the capital should be $100,000, and might be augmented to a sum not in excess of $1,000,000; a two-thirds vote of the board of directors being always requisite for such a purpose; the additional stock to be distributed pro rata among such of the stockholders as might wish to take their respective shares. Thirty per cent of the original subscriptions was to be taken and paid for at once, and the remainder at such times as should thereafter be de- termined. The directors were fixed at nine, their qualifications to be the ownership of stock equivalent in value to five per cent on the first $100,000, and one per cent upon any increase of capital over such amount. The term for which the associa- tion was formed was limited to expire on April 30, 1882, being nineteen years from the date of this instrument. The signers and the number of shares held by each of them were, respectively: M THE FIRST NATIONAL BANK OF CHICAGO Shares Shares Edmund Aiken 175 Samuel M. Nickerson 100 Byron Rice 50 Samuel W. Allerton .... 100 Benjamin P. Hutchinson. . 175 John B. Sherman 100 Tracy J. Bronson 100 James C. Fargo 50 George N. Kennedy 50 Samuel G. D. Howard .... 100 All, with one exception, were residents of Chicago ; George N. Kennedy lived at Syracuse, New York. Pursuant to the articles of association, the stockholders assembled on May 7, 1863, at the office of Aiken & Norton, and thereupon elected as directors, to serve until the second Tuesday in January, 1864, the following named gentlemen: Samuel W. Allerton, Tracy J. Bronson, Samuel M. Nickerson, Byron Rice, Benjamin P. Hutchinson, Edmund Aiken, Samuel G. D. Howard, James C. Fargo, and John B. Sherman. The board thus constituted, having at once met, chose Edmund Aiken president, and James C. Fargo vice-president. Sub- sequently, on May 22d, Messrs. Hutchinson, Howard, and Nickerson were appointed a committee to assist the president in completing the organization and making other preliminary arrangements. On May 27th, $30,000 of the capital having been paid in, that fact was communicated to Hon. Hugh McCulloch, Comptroller of the Currency. The original in- tention had been to open the doors of the establishment on June 1st, but some unexpected delays occurred. The Comp- troller likewise did not finally act upon any of the applications before him until June 22d. On that date he empowered several banks to begin business, signing almost simultaneously the necessary authority. The First National Bank of Chicago was the eighth institution to receive his approval. On June 26th the board of directors voted that the activities of the [10] 1 > 1 ' ' * J >>' ''>',' > 1 EDMUND AIKEN THE FIRST NATIONAL BANK OF CHICAGO bank be inaugurated on July I, 1863, in the rooms formerly occupied by Aiken & Norton, which had been secured for this purpose. At the same time a resolution to increase the capital to $250,000 was passed. Prior to this date, James C. Fargo had sold his stock, and was thus disqualified from holding office. To succeed him as vice-president, Samuel M. Nicker- son was, upon motion of B. P. Hutchinson, chosen on June 29, 1863; then entering upon that period of indefatigable service in behalf of the bank which was to extend over more than a third of a century. At the same meeting Edward E. Braisted was appointed cashier. The Chicago Daily Tribune of June 30, 1863, conta*ined the following announcement: "The First National Bank of Chicago goes into operation tomorrow, July 1st, E. Aiken, Esq., President, and E. E. Braisted, late of the Loan & Trust Co., Cashier. The stock- holders are among the most active and substantial business men, representing our merchants, lumber, produce, and stock dealers, with a number of our leading capitalists. The bank opens with a cash capital of a quarter million of dollars, and a further increase will be added as the wants of the business public shall require. The president has long been known to the business community as one of our most active and prudent bankers, and the stockholders and the public are fortunate in the selection of a gentleman for so important a position, who so thoroughly understands the business of the city. The bank will open at the former office of the president, No. 22 La Salle street, immediately north of Coolbaugh & Co.'s Bank, north- west corner of Lake." [11] THE FIRST NATIONAL BANK OF CHICAGO From the day of its inauguration the institution was ac- corded a favorable reception by the people, and during the first three months of its existence, gradually gained strength. The earliest published statement of its condition appeared on October i, 1863, as of the close of business September 30th, and showed as follows: ASSETS Loans and discounts $149,650.00 United States bonds (par value) 91,000.00 Cash Resources: Due from banks (Eastern exchange) $109,773.73 Checks for clearing house 68,597.12 Cash on hand 60,828.13 239,198.98 $4791848.98 LIABILITIES Capital stock $205,000.00 Undivided profits 1,759.49 Deposits 273,089.49 $479,848.98 From this modest beginning one of the largest financial institutions on the western hemisphere has developed. The next incident of importance was the election of E. G. Hall, on November II, 1863, as a director to succeed James C. Fargo, who had resigned. Already the rooms occupied by the bank were becoming too small, and unfitted for its growing business; the officers were looking for new quarters. At the meeting of the board, December 8th, the action of the presi- dent in leasing a portion of the main floor in the Exchange Block, at the southwest corner of Clark and Lake streets, for five years, at an annual rental of $4,000, was approved. This [12] THE FIRST NATIONAL BANK OF CHICAGO address remained unchanged until the end of 1867. On the same day the directors also passed a resolution ordering from the Comptroller of the Currency the sum of $200,000 in cir- culating notes. The first regular annual election of directors was held on January 12, 1864. It may not be without interest to mention the names of the stockholders and the number of shares re- spectively held by them at that time. The secretary of the meeting reported the vote cast by those present or represented by proxy as follows: Shares Shares E.Aiken 212 M. Talcott 100 Byron Rice 70 Samuel D. G. Howard .... 70 Henry M. Wilmarth 30 W. N. Brainard 50 Benjamin P. Hutchinson. . 300 George C. Walker 50 E. G. Hall 70 Tracy J. Bronson 150 T. H. Seymour 50 Samuel W. AUerton 150 S. B. Roath 30 Henry M. Shepard 50 John M. Williams 50 Samuel M. Nickerson 100 A. Hurd 50 Horace M. Singer 100 Whereupon it was announced that Messrs. Edmund Aiken, Benjamin P. Hutchinson, Samuel W. AUerton, Samuel M. Nickerson, Byron Rice, Samuel G. D. Howard, Tracy J. Bron- son, John B. Sherman, and E. G. Hall had been duly elected for the ensuing year. The board immediately met and chose the former officers to succeed themselves. As suggestive of the conservative views which then pre- vailed among the managers, the resolution of the directors of January 23, 1864, reciting that "no loan shall be made with or without collateral to any individual or firm to exceed $50,000 [13] THE FIRST NATIONAL BANK OF CHICAGO without the approval of the board," should be noted. During the spring of the same year the stock was gradually augmented to $600,000. The bank was now on a healthy, sound, and pros- perous basis. The men who had brought it into existence were naturally desirous of realizing some direct return. On May 2, 1864, the first dividend was declared. The net earnings for the period prior to the preceding day, free of tax, were found to be equal to sixteen per cent of the capital, while the holders of the first three thousand shares issued also received pro rata the five per cent premium which had accrued on the United States bonds. Such a result of one year's work may well be envied by financiers of the present generation. Soon after- ward it was determined to increase the volume of the circulat- ing notes, as soon as practicable, to $400,000. On October I, 1864, the principal items included in the official statement were: Loans and discounts, $809,730.94; United States bonds, $441,500; cash resources, $681,819.65; capital stock paid in, $600,000; undivided profits, $66,752.88; circulating notes, $320,000; deposits, $946,579.95. On No- vember 15, 1864, a dividend of ten per cent was distributed. During this autumn the capital was fixed at $750,000 and the circulating notes at $600,000 in value. Augustus W. Wheeler was appointed assistant cashier on November 7th. The next year opened with memorable action by the board of directors, when, on January 2, 1865, it voted to increase the capital stock to $1,000,000, the highest limit provided by the articles of association. Under date of March 9th the cashier certified to the Comptroller of the Currency that the full amount had been paid ; $100,000 of this additional sum was relinquished for allotment to new stockholders. [14] THE FIRST NATIONAL BANK OF CHICAGO On February 10, 1865, A. W. Wheeler severed his connection with the management, having previously resigned as assistant cashier. The United States Treasurer certified, February 24, 1865, that the bank had on deposit bonds to the total of $632,- 000, of which $572,000 were as security for circulation, and $60,000 to cover public moneys in its possession. Another important event was the approval of the charter and constitu- tion of the Chicago Clearing House Association. By this act the institution became a member of that organization. A further semi-annual dividend of ten per cent was declared for May 1st, it being the last paid at that date. To conform with the more usually prevailing practice a resolution was adopted in November, 1865, that dividends should thereafter be payable on the first days of January and July respectively. During 1865 there had not been any change in the board of directors. At the beginning of 1 866 all the old members, except S. G. D. Howard, were re-elected; in his stead Franklin D. Gray was named. At this same time the bank experienced another modification in its personnel through the voluntary retirement of the cashier, E. E. Braisted. This gentleman had rendered great service in helping to place it upon a safe founda- tion. His successor does not appear to have been at once selected. Charles J. Schmitt was, however, appointed assistant cashier on January 9th, and seems to have performed the duties of the higher post during several ensuing months, until, on December 3d, Cornelius R. Field was chosen to fill it. At the opening of the next year (1867), a serious blow was sustained in the death of President Aiken, who died suddenly of heart disease on January 12th, being then in the fifty-fifth [15] THE FIRST NATIONAL BANK OF CHICAGO year of his age. Under his management the institution had, within a brief period, grown to be one of the leading financial institutions of the West ; its original projector, he had brought it to its present prosperous condition. Hence, fear was naturally expressed that his sagacity and counsel might be missed. Fortunately, however, in the emergency, the person well equipped and thoroughly fitted to assume these arduous labors was at hand. On January 23, 1867, Samuel M. Nicker- son was promoted to the presidential chair, while Franklin D. Gray was elected vice-president. For the next thirty years and more these two men were associated in the direction of the bank. For them both its interests became their chief care. The one as the executive head, the other as his adviser, counselor, and friend, strove long and strenuously to advance the welfare of the corporation which they so ardently cherished. At the annual meeting held this same month, in the place of Messrs. Bronson and Sherman, George C. Walker and Mancel Talcott were named for the board of directors. Subsequently, on March 4th, Henry B. Lewis was designated to succeed Mr. Aiken for the remainder of the unexpired term. At a slightly later date (June 24, 1867) George Webster was also chosen vice Benjamin P. Hutchinson, resigned. The most important transaction of this era was the pur- chase of the lot on the southwest corner of State and Washing- ton streets. Vice-president Gray, who was charged with the negotiations, secured the transfer of this piece of ground — measuring fifty-five feet on State street by eighty-four feet on Washington street — during the last week in March, 1867, for the sum of $83,500, being equivalent to $1,500 per foot on the State street frontage. The conditions of payment were one- [16] THE FIRST NATIONAL BANK OF CHICAGO fourth cash and balance in three equal installments, payable one, two, and three years after date, bearing interest at the rate of seven per cent. In September, a building committee, consisting of Messrs. Nickerson, Walker, Gray, and Talcott, was appointed. A fire-proof edifice was projected, which was furnished and occupied in the spring of 1868. As described in Industrial Chicago: "The old First National Bank building, on the southwest corner of State and Washington streets, was completed in 1872 at a cost of $295,000, $75,000 of which was spent on restoration after the fire. It was considered a fire-proof house — iron, stone, and brick being the exclusive material, but it did not prove itself so in the presence of the great fire of 1871, for the inner vaults were the only portions of the building untouched by fire. Part of the walls fell in and the iron work was twisted or melted. It was a Florentine building, with balustraded portico in cut-off and pediment from the cornice. Prior to the introduction of modern houses the old First National Bank was considered a rare architectural work, and was spoken of in connection with the Palmer, Tremont, Field, and other leading houses." At the close of business on December 31, 1867, the principal items, as shown by the statement subsequently published, were: Loans and discounts, $1,978,532.39; deposits, $2,125,- 069.83; capital, $1,000,000; surplus, $100,000; profit and loss, $120,477.83. The annual election of 1868 resulted in the choice of the same directorate and officers. On March 2d, Byron Rice resigned from the board, and two months later Henry H. [17] THE FIRST NATIONAL BANK OF CHICAGO Porter was elected to succeed him. About this date Messrs. Gray and Webster, together with the president, were, pursuant to the provisions of the by-laws, as then lately amended, ap- pointed to serve as a "discount committee." During the summer of 1868 a momentous change in the personnel of the active managers occurred. On July 13, the resignation of Cornelius R. Field, as cashier, was accepted, to take effect on the first of August following. Before the last mentioned day, Lyman J. Gage, then assistant cashier of the Merchants' Loan and Trust Company, had been chosen his successor. Thenceforth the names of Mr. Gage and the First National Bank of Chicago were for many years synony- mous. On September 7, 1868, the by-laws were again revised so as to provide for a finance committee, in the place of the discount committee, to be composed of the president, cashier, and one other director, to the care of which the details of financial policy were intrusted, besides the authority to discount bills, notes, and other evidences of debt, and to buy and sell bills of exchange. Mr. Walker was thereupon appointed as the third member. At this time, among all the financial institutions of Chicago, the First National Bank was, as it appears from current statis- tics, in the lead in capital and surplus ; in loans and discounts, and in deposits, the Union National Bank alone surpassed it. In 1869 George C. Walker and Henry B. Lewis retired from the board of directors, their places being filled by Frederick Crumbaugh and Daniel Thompson. Henry R. Symonds was, on January 4th, chosen assistant cashier. [18} > > >> ' » > , , , . ' ' > • 1 > > THE BANK'S FIRST BUILDING Southwest Corner Clark and Lake Streets r r c r f THE FIRST NATIONAL BANK OF CHICAGO On October 9, 1869, the formal report to the Comptroller was as follows: ASSETS Loans and discounts $2,381,957.79 United States bonds (par value) 767,050.00 Building, fixtures, and furniture 312,885.05 Cash resources: Due from banks $312,135.74 Checks for clearing house 232,069.57 Cash on hand 555,872.53 1,100,077.84 $4,561,970.68 LIABILITIES Capital stock paid in $1,000,000.00 Surplus fund 200,000.00 Other undivided profits 72,712.88 Circulation notes from Comptroller 597,270.00 Deposits 2,691,987.80 $4,561,970.68 At the meeting of January 15, 1870, Edward F. Lawrence and Lyman J. Gage were elected directors to succeed Messrs. Hall and Webster. Henry H. Porter was placed on the finance committee, and Messrs. Nickerson, Porter, and Gage were appointed to remodel the by-laws of the association. Owing to the adoption of a policy of greater conservatism, the loans and discounts, as well as deposits, at this date show a distinct shrinkage; they were, respectively, $1,862,262.91 and $1,793,167.56. On January 10, 1 87 1, the stockholders in annual session adopted several amendments to the articles of association, the principal provision being for such increase of the capital as might be voted by a two-thirds majority of the board of [19] THE FIRST NATIONAL BANK OF CHICAGO directors from time to time until in the total it should aggre- gate $3,000,000. The number of directors was also fixed at not less than five nor more than thirteen. All the retiring members, with the exception of Daniel Thompson, were re- elected ; in his stead Benjamin F. Allen was chosen. The same officers as heretofore were again named. Subsequently, at a meeting of the board, on February 6th, a new series of by- laws was voted. The great fire of October 9, 1871, swept over the bank structure, although the walls were left standing, and a portion of the interior was unharmed. For temporary purposes quarters were found. First in the old Burlington Warehouse, at the corner of State and Sixteenth streets, then in a building on Wabash avenue, between Congress and Twelfth, and after- wards in a frame structure on the north side of Washington street between State and Dearborn, some one hundred feet east of the latter thoroughfare, on the site of the old Crosby Opera House. On January 1, 1872, business was again transacted in the old edifice, which at that time had been thoroughly restored. The safes and vaults had withstood the heat of the flames; not a security, note, or paper of any value was destroyed, and the books were intact. The special com- mittee appointed by the directors to ascertain the total loss sustained, as the effect of this memorable calamity, reported that it did not exceed $250,000, of which $100,000 represented the damage to the building. During 1872 only one change occurred in the directorate, Nelson Morris being elected to succeed Frederick Crumbaugh. Charles Hitchcock was also in August of this year appointed legal counsel, and the City Bank of London was in June [20] THE FIRST NATIONAL BANK OF CHICAGO designated as foreign correspondent. On December 25th the sum of $100,000 was transferred to the surplus fund. The financial condition of the bank at the opening of the next year, which was to be remarkable as one of depression and panic, was excellent. The statement made at the close of 1872 showed : ASSETS Loans and discounts $2,493,063.06 United States bonds (par value) 675,800.00 Building, furniture, and fixtures 264,361.38 Cash resources: Due from banks (Eastern exchange). . $549,058.04 Cash on hand 921,152.55 1,470,210.59 $4,903,435.03 LIABILITIES Capital stock paid in $1,000,000.00 Surplus fund 300,000.00 Other undivided profits 204,959.15 Circulation notes from Comptroller $602,300.00 Less amount on hand 14,315.00 587,985.00 Dividend unpaid 250.00 Deposits 2,810,240.88 $4,903,435-03 On February 28, 1873, the First National Bank of Chicago had: Loans and discounts, $2,560,897.42; deposits, $3,477,- 880.12. The worst days of depression did not come until autumn. Through these trials and tribulations the institution passed unharmed and intact. Not for a moment were its doors closed, or the slightest hesitation shown in meeting the demands of its depositors. After the crisis had been successfully weathered, its prestige was so greatly enhanced that it was [21] THE FIRST NATIONAL BANK OF CHICAGO at once recognized as the foremost bank in Chicago and the West. To the fidelity and courage of the cashier, Lyman J. Gage, the happy issue from these painful ordeals was chiefly due, as is most fittingly testified in appropriate and eulogistic language upon the record book of the association. With just pride he, in his official capacity, made the following report, as specially required by the Comptroller of the Currency. This document, memorable in the history of the corporation, de- serves reproduction here: Special report of condition at close of business October 13 th and November 1st, made to the Comptroller of the Currency November 10, 1873: October 13 th November 1st Loans (not including demand) $1,772,435.02 $2,007,178.51 Demand loans 723,200.00 769,000.00 United States bonds on hand 58,800.00 55,150.00 Due from reserve agents 306,923.15 265,309.99 Due from other banks and bankers ... 165,141.25 163,350.05 Exchange for clearing house 252,389.73 349,304.22 National bank notes 80,000.00 100,000.00 Fractional currency 7,985.26 6,131.28 Coin 81,147.92 56,286.48 Legal tender 900,000.00 865,000.00 Capital 1,000,000.00 1,000,000.00 Circulating notes outstanding 587>575-°° 586,480.00 Deposits of all kinds 3,149,622.14 3,421,273.42 Due to banks and bankers 1,054,402.38 1,198,598.75 Questions. Answers. Did your bank suspend currency payments? No. Did your bank partially suspend currency pay- ments? No. On what day did the bank suspend? Did not suspend. [22] THE FIRST NATIONAL BANK OF CHICAGO After this date remarkably few changes occurred in the membership of the board of directors. In 1874 H. M. Wil- marth succeeded B. F. Allen. In 1879 Horace M. Singer was elected in place of Mancel Talcott, deceased. Mr. Talcott had died in May, 1878; as "one whose long and devoted serv- ices were always marked by the high qualities of personal integrity, and intelligent appreciation of the true interests of the institution," his loss was keenly felt. A notable event is the action taken on December 30, 1879, in reference to new quarters. At a meeting of the board of directors, held on that day, Mr. Porter called attention to the cramped appearance and the existing inconveniences in the office arrangements, and it was voted : "Whereas, the increase of business of this bank impera- tively demands increase of room and facilities to properly ac- commodate it, therefore, "Resolved, that the president and cashier be and they are hereby appointed a committee to ascertain and report upon the feasibility of procuring more, whether by the alteration of present building and purchasing adjoining lot, or by the sale of present building and the purchase of new lot." The project of enlarging the structure then occupied by the institution was soon found impracticable; consideration was therefore given to the selection of another site. During the summer of 1880 the decision was gradually reached that the northwest corner of Dearborn and Monroe streets, where before the fire the post-office had stood, would be an admirable loca- tion. This lot was school property. In the original proposi- [23] THE FIRST NATIONAL BANK OF CHICAGO tion made to the Board of Education it was contemplated to take a lease for fifty years with an additional option of twenty years, and to erect a fire-proof building, of which the upper floor should be rented to the board and to the public library. It was also necessary to buy out the leasehold interest held by J. H. Haverly in the old post-office building, then known as the Haverly Theatre. Arrangements had been completed in accordance with these plans, when in June, 1881, a change in policy, due to certain provisions of the National Banking Act, was adopted. It was determined to organize, as a subsidiary corporation, the "National Safe Deposit Company," with a capital of $300,000 divided into three thousand shares of $100 each. The bank in its corporate capacity subscribed for $299,100 of this stock, the remainder being taken by its di- rectors as individuals. The new company was substituted as lessee in the pending transaction. The annual rental for the lot during the first five years was fixed at six per cent on a valuation of $345,000, and it was stipulated that the edifice to be constructed should cost not less than $300,000. This offer was accepted and the agreement, as executed, began to run from July 1, 1881. Since then several reappraisements of the ground have been made. The bank itself in time took from the National Safe Deposit Company a lease of the main floor of the block then immediately erected. The new quarters were occupied on November 27, 1882. Again to quote from Industrial Chicago : "The First National Bank building is a six-story and base- ment structure, Romanesque in style, with basement and first story in vermiculated stone and the upper stories in pressed brick; a Roman-Doric portico shows two polished granite [24] THE FIRST NATIONAL BANK OF CHICAGO columns on either side corresponding with pilasters carrying a heavy entablature and balustrade. In the central and corner pavilions the horizontal style of the recessed sections merges into the vertical. The portico extends to the level of the second principal floor, and piers in the corner project, corresponding with it, thus carrying the high basement and first floor in one story. The second and third stories are also carried in one by pilasters, and the fourth, fifth, and sixth are compressed into one story for architectural effect; the two windows of the sixth story in each corner pavilion and three in the central pavilion showing the round arch finishing a section. The cornice is becoming, and the parapets above it, in the pavilions, render the sky-line perfect. This house oc- cupies the site of the ' Honest Building* which was restored after the fire and used up to 1882, when it was torn down. The bank hall, occupying the first floor, is lighted by a great court. While the mural decorations and furniture are of the highest class, they are lost in the business air which pervades this hall, so that to pick them out one must visit the bank with that sole object." On November 7, 1881, resolutions were passed, in accord- ance with which the capital stock was increased to the sum of $2,000,000, the additional amount required being rapidly sub- scribed. Thus the bank, while approaching the original term of its existence, was daily growing and developing in every direction. Nor were those charged with the conservation of its interests indifferent or ungrateful to the men upon whom the routine labors fell. The corporation early manifested its ap- preciation of faithful and arduous service. A pleasing custom, soon observed by the board of directors, was that of voting, [25] THE FIRST NATIONAL BANK OF CHICAGO upon the recurrence of every new year, substantial gifts to the officers and employees who were toiling for success and greater achievement. This practice gradually arose, until at the close of 1 88 1 perhaps the largest sum ever thus bestowed was appropriated ; $20,000 was then distributed. Merit and ability were likewise always rewarded by increase of salary and cor- responding promotion. Several instances might be cited of men, who from the ranks, have risen to lucrative and control- ling positions. With the advent of 1882 the association was necessarily obliged to anticipate the early discontinuance of its activities or at least its technical reorganization. The hope had been cherished that Congress would pass a measure enabling national banks to prolong the term of their existence, or renew their charters upon conditions which might permit them to retain their corporate identity. But such action was not taken. The bill for that purpose pending in the spring of 1882 was long and tediously debated. The first of May, when the privileges of "The First National Bank of Chicago, Number 8," would expire, was not many weeks distant. After serious considera- tion, it was therefore determined to be best that the institution should go into voluntary liquidation. Its property was offered for sale ; it was resolved that its doors should be closed on Saturday, April 29, 1882, and all other requisite formalities were executed. Its assets, of course, were without delay transferred to its legal successor, known as "The First National Bank of Chicago, Number 2670." The books were balanced and a complete settlement of affairs was made, the stockholders, in conclusion, receiving $294.12 for every share held. Such is the record of prosperity enjoyed by this establish- [26] ' I SAMUEL M. NICKERSON THE FIRST NATIONAL BANK OF CHICAGO ment during the period of its first organization, extending from 1863 to 1882; of their success, the men who attained it may- well be proud. For nearly twenty years they had wisely and diligently worked in harmony; to another term of equal length they were eagerly looking forward, for the second corporation, while then by law newly created, was in the personnel of its membership still one and the same. [27] THE FIRST NATIONAL BANK OF CHICAGO THE new organization was completed on April 25, 1882, when the subscribers to the stock met, adopted a series of by-laws, and elected a board of directors. The incorporators, together with the number of shares respectively held by them, were: Shares Samuel M. Nickerson .... 7100 Lyman J. Gage 2334 George N. Culver 100 Matilda P. Nickerson .... 200 Thos. P. Smith 310 George W. Higgins 350 Henry E. Sawyer 200 Moses W. Gray 120 Roland C. Nickerson 20 Henry H. Porter 300 Edward F. Lawrence 220 Nathaniel K. Fairbank. . . 300 Mary H. Talcott 600 Horace M. Singer 600 William W. Kimball 28 Samuel W. Allerton 1864 Jane A. Brooks 100 Shares Franklin D. Gray 450 Edward C. Sawyer 60 Charles H. Curtis 100 Isaac Eldridge 40 Magdelina P, Sample .... 50 George T. Smith 300 Richard J. Street 12 Harry C. Sawyer 10 Nelson Morris 1000 Henry R. Symonds 2250 Henry M. Wilmarth .... 400 Theodore A. Shaw 100 Stephen B. Roath 100 Sarah Morris 172 John M. Williams 50 William J. Wilson 100 George P. Sanford 60 The total capital was thus $2,000,000, divided into twenty thousand shares of $100 each. The articles of associa- tion provided that the charter should run for twenty years, or until April 25, 1902; that the capital might be augmented, upon certain conditions, to a sum not to exceed $10,000,000, and that the number of directors should be not less than five nor [28] THE FIRST NATIONAL BANK OF CHICAGO more than fifteen. The first board chosen consisted of Samuel M. Nickerson, Edward F. Lawrence, Nelson Morris, Franklin D. Gray, Henry H. Porter, Lyman J. Gage, Samuel W. Aller- ton, Henry M. Wilmarth, Horace M. Singer, and Henry R. Symonds, all of whom, but the last named and additional member, had served under the old regime. When the directors assembled they elected Samuel M. Nickerson president, and Franklin D. Gray vice-president. Lyman J. Gage was ap- pointed cashier, and Henry R. Symonds assistant cashier. From this list of names it is at once apparent that the present corporation was in every respect not only the continuation but the counterpart of its predecessor. Theoretically and legally they were different entities, but practically they were one and the same institution. On May I, 1882, John J. Knox the Comptroller of the Currency, authorized the commencement of business under charter known as Number 2670, and that day the bank reopened its doors, in the same well-known quarters, the entire assets having been transferred by purchase from the liquidated to the new organization. Aside from the radical change which had thus occurred, this year was also in several respects notable. Within one week after the events just related, the decision was taken, on May 6, 1882, to increase the capital stock to $3,000,000, a resolution which was speedily effected. The sale of the old building on the southwest corner of State and Washington streets, for the sum of $230,000, was concluded on June 5th. On June 26th the policy of declaring quarterly dividends was adopted, the first of two per cent being ordered payable at the end of that month; on the same day Henry M. Kingman was appointed assistant cashier. One of the most important incidents in the [29] THE FIRST NATIONAL BANK OF CHICAGO history of the association happened September 4, 1882. Upon this occasion Franklin D. Gray resigned as vice-president, a position which he had honorably and successfully held since 1867. Lyman J. Gage, formerly cashier, was promoted to be his successor. However arduous the duties of Mr. Gage had heretofore proven, they were thenceforth to be multiplied many fold; for the principal executive management was now confided to his care. Henry R. Symonds was chosen cashier, Henry M. Kingman assistant cashier, and Richard J. Street second assistant cashier. At the meeting of December 26th the surplus of $100,000 was doubled, and an appropriation of $20,000 made for New Year's gifts to worthy and meritorious employees. At the annual session of the stockholders on January 9, 1883, the board of directors was increased by one additional member, and Augustus A. Carpenter was chosen to fill the place. In the spring the banking rooms were first lighted with electricity. The generally excellent facilities then enjoyed for doing business are evidenced by the national bank examiner, who writes, "The office arrangements are far superior to those of any other institution in the country." The rule of requiring all employees to give bond was likewise now adopted. An ad- ditional sum of $100,000 was, in December, carried to the surplus fund. Otherwise the year was uneventful in the domestic affairs of the corporation. Attention should never- theless be directed to the fact that the bank, as appears from a comparison of the reports submitted to the Comptroller of the Currency, had then attained fourth rank among all the finan- cial establishments of the United States. [30] THE FIRST NATIONAL BANK OF CHICAGO During 1884 not anything of importance, save the further increase of the surplus by $100,000, is to be noted. The state- ment of condition made in December, 1884, showed: ASSETS Loans and discounts $10,068,871.00 United States bonds (par value) 80,600.00 Other bonds and stocks (market value) 544,850.00 Bank building 500,000.00 Cash resources: Checks for clearing house and cash on hand 8,283,339.00 $19,477,660.00 LIABILITIES Capital stock paid in $ 3,000,000.00 Surplus fund 400,000.00 Other undivided profits 350,607.00 Deposits 15,727,053.00 $19,477,660.00 The election of directors for 1885 resulted in the return of the former members of the board ; but the circle was soon to be broken, for on February 27th, Henry M. Wilmarth was called to his last rest. For eleven years he had faithfully conserved the welfare of the institution; his associates in its management united in testifying to "the high integrity and clear apprecia- tion of principle which marked his every act and word in this relationship." In the following autumn Eugene S. Pike was chosen to fill the vacancy. At this time the official records first mention the arrange- ment of the bank for serving its employees their daily lunch in the building. In the report of the national examiner, dated September, 1885, a paragraph appears, wherein it is stated that [31] THE FIRST NATIONAL BANK OF CHICAGO a kitchen, a dining-room, cooks and stewards being provided, "the entire force from president to janitor take their midday meal on the premises." This scheme is still in force. Before the close of the year an additional $100,000 was carried to the surplus fund, and a contribution of $500 voted to the memorial window to be placed in the Second Universalist Church of Chicago in memory of the late Mancel Talcott, who for a decade was a member of the board of directors. During 1886 the bank was silently but steadily growing. On February 13, of that year, the Clerks' Savings Association was formed for the benefit of employees, upon whose savings, under certain restrictions interest at the rate of five per cent per annum was allowed. The Association is still existant. On March 31st the bank joined with its associate institutions in recommending to the Comptroller that Chicago be designated, pursuant to the act of Congress of March 3, 1887, as a central reserve city; such action was taken in due course. Slightly later $250,000 was likewise added to the surplus, a similar amount being once more appropriated for the same purpose in June, 1888. In January, 1888, Horace M. Singer retired, after nine years' membership on the board of directors, and Orville Peck- ham, long employed as special counsel, was chosen to succeed him. Mr. Peckham served until 1890, and again from 1891 to 1892. During 1889 c asn prizes, aggregating in the total $600 annually, were also inaugurated, to be awarded to such clerks as should, during any one year, prove themselves the most efficient, exact in their duties, and the most apt in dis- covering errors. In order to determine the recipients, a com- plete system of daily marking was instituted. [32] THE FIRST NATIONAL BANK OF CHICAGO Attention may here also be especially directed to the bond and foreign departments, the business of which was already at this date being kept entirely separate and distinct from the other divisions of the bank. On December n, 1889, the statement of condition showed: ASSETS Loans and discounts $15,803,617.00 United States bonds (par value) 57,200.00 Other bonds and stocks (market value) 881,550.00 Real estate, furniture, and fixtures 500,000.00 Cash resources: Checks for clearing house and cash on hand 12,357,180.00 $29,599,547-00 LIABILITIES Capital stock paid in $ 3,000,000.00 Surplus fund 1,500,000.00 Other undivided profits 797,107.00 Deposits 24,302,440.00 $29,599,547-00 The Very last day of the year $250,000 was again voted to the surplus fund. At the annual meeting of the stockholders on January 14, 1890, Norman B. Ream was elected a director in the place of Mr. Peckham; otherwise the board remained unchanged. One sign of rising prosperity during the year was the increase in the rate of the quarterly dividends from two and one-half per cent to three per cent. For some time previously they had been declared at the former figure. When the board of directors met, on January 23, 1891, to [33] THE FIRST NATIONAL BANK OF CHICAGO organize, the following letter from President Nickerson was presented and read: "Before proceeding to the election of officers for the ensu- ing year, I wish to state that should you decide to elect me president, it must be with the understanding and notice that I shall resign the office whenever Mr. L. J. Gage shall be relieved from his duties as president of the World's Fair, and can devote all his time to the affairs of this bank; and when that time arrives I shall take pleasure in co-operating with you in electing him to take my place, if you then decide to do so. It would be my desire to continue as a director of this bank, and co-operate with you in working for its interests and success. It is not my intention to engage in any other business. I have arrived at a time of life when I feel it to be my duty to delegate to younger heads and hands the responsibilities that are involved in the position I have held in this bank for the past twenty-four years as president, and four years previously as vice-president, which covers the entire time since its organization in 1863. The success which has attended this bank is known to you all. For this I have to thank the directors and other officers, who, by their advice and labor, have made this success possible. Thank- ing you for your many evidences of confidence and goodwill, and hoping that the future success of the bank may, under your direction, be equal to or better than the past, I await your de- cision as indicated above." Mr. Nickerson was then re-elected to the presidency. On June 30, 1 89 1, he resigned; whereupon the following resolution was unanimously adopted: M Resolved, that the thanks of the stockholders of this bank [34] THE BANK'S SECOND BUILDING Southwest Corner State and Washington Streets THE FIRST NATIONAL BANK OF CHICAGO are justly due to Mr. Samuel M. Nickerson for the efficient and faithful manner in which, for so many years, he has discharged the duties of president of this institution. "In accepting his resignation this day tendered, this board desires to place on record its high appreciation of his adminstra- tion. We congratulate ourselves, however, that in his retire- ment from the office of president, the bank will still retain in him as a director the wise counsel which his long experience has so well qualified him to give." The board forthwith proceeded to elect Lyman J. Gage president. The other officers then chosen were: first vice- president, Henry R. Symonds; second vice-president, Henry M. Kingman; cashier, Richard J. Street; assistant cashier, Holmes Hoge; George D. Boulton was appointed manager of the foreign exchange and bond department. The resignation of Henry H. Porter, who had been a director for thirteen years, was likewise accepted, and Orville Peckham, as heretofore noted, designated temporarily to succeed him. Before the close of the year another serious loss was suffered in the death of the second vice-president, Henry M. Kingman, who for a long period and in several capacities had been in the employ of the bank. He died on December 16, 1891. At the meeting of the board, on the 29th of that month, appropriate resolutions were unanimously adopted. They read in part: << Resolved, that this board deeply feels that in him (Henry M. Kingman) the bank has lost a long tried servant, in whom the highest integrity was united with a clear and wide com- prehension of his work and responsibility as a banker and bank officer, and admirable industry and address in the performance [35] THE FIRST NATIONAL BANK OF CHICAGO of that work. As citizens in the same community in which he lived, we lament his death as a loss which must be heavily felt in the wide sphere of usefulness beyond that special field which he shared with us; and individually we mourn him and re- member him with affection as a true and helpful friend." At the opening of 1892 a new force entered the councils of the institution. James B. Forgan, formerly cashier of the Northwestern National Bank of Minneapolis, Minnesota, then became a director, and likewise second vice-president. He was not, however, destined long to remain in this latter position, for the way was soon free for his promotion. The hand of time was being heavily laid upon those who had faithfully and arduously served the interests of the corporation. On March 26, 1892, the bank was called to mourn Henry R. Symonds, its first vice-president, who had been connected with it for nearly a quarter of a century. The directors, at the sug- gestion of Mr. Allerton, formally testified to their grief in these words : "His clear comprehension of the great trust imposed upon him; his earnest application to duty; his scrupulous regard for the interests he represented; his prudence, fortitude, and courage, made his official life most effective and valuable." In due course James B. Forgan was chosen first vice-presi- dent and Roland C. Nickerson was selected to succeed Mr. Symonds on the board. On October 25, 1892, the sum of $300,000 was subscribed to the bonds of the Columbian Exposition, this amount being the proportionate share of the institution upon the basis of a [36] THE FIRST NATIONAL BANK OF CHICAGO total of $2,300,000 to be contributed by all the banks of the city, reckoned at the rate of five per cent on their capital and surplus. At the close of the year $1,000,000 more was trans- ferred to the last-mentioned fund. During 1893 Frank E. Brown was elected second assistant cashier. Owing to the large accumulation of old books, papers, and records, a special storehouse for them was erected about this time. The statement of condition on December 19, 1894, showed: ASSETS Loans and discounts $17,884,431.00 United States bonds (par value) 778,636.00 Other bonds and stocks (market value) 1,605,378.00 Real estate, furniture, and fixtures 675,000.00 Cash resources: Checks for clearing house and cash on hand 14,725,241.00 $35,668,686.00 LIABILITIES Capital stock paid in $ 3,000,000.00 Surplus fund 3,000,000.00 Other undivided profits 316,135.00 Deposits 29,352,551.00 $35,668,686.00 Throughout 1895 the continued depression in all lines of business was severely felt. For a number of years the institu- tion had phenomenally prospered. Hence it was without any grave misgivings that the directors faced the existing financial crisis. Nevertheless they did not deceive themselves with any false views or rosy-hued dreams. They met conditions as they found them, and having decided to rid the books of all [37] THE FIRST NATIONAL BANK OF CHICAGO doubtful and worthless assets, they resolutely determined to take the stockholders into their full confidence. To this end, after due deliberation, it was, on August 2, 1895, voted: "Resolved, that the officers of this bank be, and they are hereby directed to transfer one million of dollars from the credit of surplus account to the credit of profit and loss account, and then to charge into the latter account such items of real estate as have been taken by the bank in settlement of claims ; also such items of impaired notes and bills as may in their opinion be bad, or such proportion thereof as they may deem necessary to bring the same to the value of a fair cash realiza- tion, together with any items of stocks or bonds of doubtful value; and they are hereby directed to make a full report of all such items as charged at the next regular meeting of this board. "Resolved, that the address to stockholders indicative of this action, here submitted by the president, be adopted and spread upon the records, and a copy thereof be sent to the stockholders, to wit: Chicago, III., July 30, 1895. We submit herewith, for information of shareholders, the follow- ing statement of facts: This bank (present organization) began business May 1, 1882, practically thirteen years ago. Since that date it has paid: To shareholders in the way of dividends $4,245,000 In city, county, and state taxes for its shareholders 792,000 It has to the credit of surplus account 3,000,000 And in undivided profits 2 15,000 Total net earnings $8,252,000 [38] THE FIRST NATIONAL BANK OF CHICAGO Average earnings per year, say $634,000 Average annual percentage of profits on its capital of $3,000,000 21.13% Average dividends paid to shareholders 10.88% Average dividends for last six years 12.00% "It has now been determined by the directors to transfer $1,000,000 from surplus account to the credit of profit and loss, and then charge into the latter account items of impaired bills, stocks of uncertain value, together with sundry items of real estate falling into the bank's hands through settlement of claims, etc., so that such items will no longer be reckoned as live assets of the bank, but as realized upon, will again appear to the credit of profit and loss in the amount of their actual realization. With the million dollars put aside out of the ac- cumulated profits and thus applied, the result of the bank's business as to profits would appear as follows : Profits paid in dividends $4,245,000 Profits paid in taxes 792,000 To credit of surplus account 2,000,000 To credit of profit and loss 215,000 $7,252,000 Average net profit per annum 557,846 Average per cent of earnings on capital of $3,000,000 18.59% "The officers and directors are moved to this action by a desire to keep the assets clear of doubtful values. With the usual average of surplus earnings in excess of dividends made, the directors believe that such items of doubtful value might be taken care of, as actual loss is defined, but they think it better to adopt the bolder, broader policy herein indicated. The growing burden of taxation is severe enough if levied only [39] THE FIRST NATIONAL BANK OF CHICAGO against absolute value. The reduction of surplus should save one-sixth of the local taxes, the full amount of which last year was $90,250. "We have been passing through a period of shrinking values and commercial depression, unparalleled in twenty years. Whether this period is fully past cannot yet be determined with certainty. Until so determined it will be our policy to restrict operations and to carry large cash reserves against all con- tingencies. Net profits may be somewhat less than could be desired, but we see no reason why our established rate of dividend, three per cent, quarterly, cannot be continued, with a growing balance to the credit of profit and loss account at each quarterly period." This action placed the institution on a thoroughly sound basis. There was no undue inflation. Every figure was warranted by the facts, and the road was again clear for further unimpeded advancement. Toward the close of this same year (1895) an arrangement was perfected with the other banks in the clearing house approving the use of clear- ing-house certificates, in case of need, but none were issued. Upon the election of Mr. McKinley in 1896, it was at once suggested that Mr. Gage should enter the new cabinet as the recipient of the treasury portfolio. In due time the offer was made and accepted. The assumption of this post naturally necessitated the severance of his relations with the bank. At a meeting of the board of directors, held on February II, 1897, Mr. Gage tendered his resignation and it was thereupon unan- imously voted: a Whereas, Lyman J. Gage, president of this bank and a [40] THE FIRST NATIONAL BANK OF CHICAGO member of this board, has tendered his resignation of both positions in order that he may enter the Cabinet of President McKinley : "Therefore resolved, that, deferring to his wish, which we are aware signifies no selfish preference, but springs from a high sense of public duty, we hereby accept these resignations, to take effect at the close of business February 15th next, the time mentioned by him. In thus yielding to the request of Mr. Gage to sever a connection that has existed for thirty years, and submitting to the deprivation of his counsel and official direction in the management of the bank, we desire to bear testimony to the universal respect and affection felt for him by all his associates, as well as to express our appreciation of the tact, ability, and probity which he has so faithfully used to develop the strength of this institution, and which with his many other rare qualities signalize him as a citizen. "As he leaves us to become Secretary of the Treasury, a position for which his peculiar fitness has been so generally recognized by the whole country, we are filled with the hope that his efforts in the broad field of national affairs will be marked by the same success that has distinguished his career as a banker. "Resolved, that this resolution be spread upon the records of the bank, and that a copy be given to Mr. Gage." With the retirement of Mr. Gage from all connection with the bank, it was expected that James B. Forgan would succeed him as the head of the institution, but owing to the condition of this gentleman's health at that time, and his enforced ab- sence for this reason in Europe, the immediate fruition of these [41] THE FIRST NATIONAL BANK OF CHICAGO plans was deemed impracticable. A temporary arrangement was therefore reached in the resumption of the presidency by Samuel M. Nickerson and the continuance of James B. Forgan as vice-president, with the understanding that the latter would be elected to the presidency as soon as his health should have sufficiently improved. George D. Boulton, who had for many years been serving in various capacities, was chosen to succeed Mr. Gage on the board of directors, and was likewise elected second vice-president. In December, 1898, the bank suffered loss in the death of Edward F. Lawrence, who, since 1870, had sat almost con- tinuously on the board of directors, and had, during that entire period, rendered distinguished and valuable services. The following resolution attests the love and esteem in which he was held. n- 'Resolved, that we now express our deep and abid- ing sense of the loss which has befallen this institution which he loved and served, and ourselves as his colleagues and friends. His service as a director was made of uncommon value by the excellence of his business judgment, and the large measure of time which he devoted to the bank willingly and without stint. His methods were ever straightforward and honorable, bearing the mark of his fine integrity and open and generous character. He won the confidence of all who knew him by deserving it. He was a public-spirited and useful citizen, giving freely of his time and means to promote the best interests of Chicago." At the next annual meeting of the stockholders George T. Smith was chosen a director to succeed Mr. Lawrence. [42] RUINS OF THE SECOND BUILDING After the Fire of 1871 THE FIRST NATIONAL BANK OF CHICAGO In the spring of 1899, at the instance of Vice-President J. B. Forgan, an important step in accord with modern thought and policy was taken. A committee was, on March 28th, ap- pointed to consider the feasibility of establishing a system of pensions for old employees; if advisable, it was directed to prepare and submit to the board the outlines of a plan to effect this purpose. One month later a report favorable to the project was presented, and the adoption of a set of rules was recommended. On October 31st Mr. Nickerson verbally stated to the board of directors his intention again to retire from the presi- dency at the beginning of the next year. Before the close of 1899 another veteran of prominence and distinction in its affairs also severed his official connection with the institution. At the meeting of December 26th the resignation of Franklin D. Gray was read and accepted, with the following formal expression : a 'Resolved, that in taking this action we desire to express to Mr. Gray and to place upon our records our sense of the faithfulness and value of his long service, and to thank him therefor in the name of the bank. He has been a director in the present bank from the date of its organization, prior to which time he had served the original First National Bank of Chicago since 1866 in the same capacity, making a practically continuous service of some thirty-three years. For fifteen years he was also vice-president of the original bank. This long and honorable connection is now severed with regret on both sides and at Mr. Gray's request; and the thanks of this board in behalf of the bank are hereby tendered to him." [43] THE FIRST NATIONAL BANK OF CHICAGO Upon this same occasion, and in view of his impending re- tirement from the active control, a formal request was made of Mr. Nickerson that he sit for a life-sized oil portrait to be hung upon the walls of the president's room. In due course this picture was painted and presented by him as a gift to the institution. On January 9, 1900, the stockholders elected Otto Young to succeed Franklin D. Gray, resigned, and Charles H. Conover in the place of Roland C. Nickerson, on the board of directors. Thereupon James B. Forgan was chosen president; George D. Boulton, vice-president; Richard J. Street, cashier; Holmes Hoge, Frank E. Brown, and Charles N. Gillett, assistant cashiers; Emile K. Boisot, manager of the foreign exchange and bond department; John E. Gardin, assistant manager of same department, and Frank O. Wetmore, auditor. Augustus A. Carpenter, a member of the board for seven- teen years, tendered his resignation on June 26, 1900, the directors testifying that "we desire to express to him our high appreciation of him as a man and as a director of this bank during his long term of service, and to thank him for these valuable services. He entered the directory of this bank on January 9, 1883, and has served thereon continuously up to the present time. We deem it a privilege to have been associated with him in the bank's affairs, and the severance of his con- nection with us causes deep feelings of regret." A momentous change was now on the eve of achievement. Consolidation of capital had become the prevailing characteris- tic of the age. With the increase in the magnitude of industrial corporations, the financial interests of the country must keep [44] THE FIRST NATIONAL BANK OF CHICAGO pace. In order to afford the accommodation at times required by manufacturing and commercial establishments of the first rank, the department of credit must be organized on a similar scale. The appreciation of these truths necessarily demanded the extension of the facilities of banks, notwithstanding the fact that they may already have been in the enjoyment of large resources and the best possible equipment. Speedily and efficaciously to satisfy these requirements it seemed most expedient in such instances to unite the energies of two or more pre-existing institutions. In accordance with this tendency, the First National Bank and the Union National Bank, both veterans and old-time rivals in the financial world of Chicago, entered into negotiations during the spring of 1900, for the purpose of determining upon what basis they might combine their forces. In June, 1900, President Forgan, together with Directors Smith and Young, were appointed on the part of the former to meet the representatives of the other bank for a preliminary discussion of the proposition. Pursuant to the suggestion sub- sequently made by this committee, a call was issued, on June 19th, to the stockholders, summoning a special meeting for July 24th, to consider the advisability of augmenting the stock of the First National Bank to $5,000,000, and for such other action as might be taken. On the day appointed the stockholders assembled, passed the requisite resolutions to fix the capital at $5,000,000; and enlarging the number of directors to fifteen, as provided in the by-laws, elected John H. Barker, William L. Brown, D. Mark Cummings, and John A. Spoor, all formerly on the directory of the Union National Bank, as the additional members. David [45] THE FIRST NATIONAL BANK OF CHICAGO R. Forgan, lately president of the Union National Bank, was elected to fill the vacancy occasioned by the resignation of Mr. Carpenter, and further chosen senior vice-president. August Blum, formerly cashier of the liquidating bank, was like- wise named one of the assistant cashiers to rank second in point of seniority. With these proceedings and the purchase of the assets of the Union National Bank — the new stock of the First National Bank, issued for such purpose, being subscribed by the former stockholders of the retiring institution — the amalgamation was effected September I, 1900. As a record of the magnitude of the transaction and the interests involved, it seems appropriate to show the respective conditions of the two banks just prior to this event. The statement of the First National Bank on June 29, 1900, showed: ASSETS Loans $28,710,352.00 United States bonds (to secure circulation) 700,000.00 United States bonds (to secure U. S. deposits) 300,000.00 United States bonds on hand 234,550.00 Other bonds 4, 572,497.00 Cash and exchange 21,757,276.00 $56,274,675.00 LIABILITIES Capital and surplus $ 5,000,000.00 Undivided profits 673,802.00 Circulation 554>33o.oo Deposits 50,046,543.00 $56,274,675.00 [46] THE FIRST NATIONAL BANK OF CHICAGO The Union National Bank, on the same date, reported: ASSETS Loans $10,140,410.00 United States bonds (to secure circulation) 700,000.00 Other bonds 197,802.00 Cash and exchange 6,017,871.00 Real estate and fixtures 3 14,805.00 Premiums on United States bonds 31,550,00 $17,402,438.00 LIABILITIES Capital and surplus $ 2,370,000.00 Undivided profits 74,703.00 Circulation 350,000.00 Deposits 14,607,735.00 \ $17,402,438.00 After the consolidation had been concluded, the statement of the First National Bank on September 5, 1900, read: ASSETS Loans $39,2 19,804.00 United States bonds (to secure circulation) 1,000,000.00 United States bonds (to secure U. S. deposits) 300,000.00 United States bonds on hand 174,080.00 Other bonds 5,530,291.00 Cash and exchange 29,793,035.00 $76,017,210.00 LIABILITIES Capital and surplus $ 7,000,000.00 Undivided profits 1,517,040.00 Circulation 533 ,300.00 Deposits 66,966,870.00 $76,017,210.00 [47] THE FIRST NATIONAL BANK OF CHICAGO At the annual election of 190 1 the first complete board of directors chosen under the new regime was composed of Samuel M. Nickerson, Samuel W. Allerton, Nelson Morris, Eugene S. Pike, Norman B. Ream, James B. Forgan, George D. Boulton, George T. Smith, Otto Young, Charles H. Conover, John H. Barker, William L. Brown, D. Mark Cummings, John A. Spoor, and David R. Forgan. The officers then named were: Presi- dent, James B. Forgan; vice-presidents, David R. Forgan and George D. Boulton; cashier, Richard J. Street; assistant cashiers, Holmes Hoge, August Blum, Frank E. Brown, Charles N. Gillett; manager of foreign exchange and bond department, Emile K. Boisot; assistant manager, John E. Gardin; auditor, Frank O. Wetmore; attorney, Orville Peckham; assistant attorney, James D. Woley. In the practical working of the bank a slight change sub- sequently occurred. On June 25, 1901, the foreign exchange and bond business was separated into two distinct departments. Of the former John E. Gardin was appointed manager, and Max May assistant manager; of the latter Emile K. Boisot re- mained in charge as manager. As indicative .of the magnitude of the transactions of the bank during 1 901, it may be noted that in that year the average number of items handled each day was 64,402 ; the total volume of business aggregated $8,199,570,400; the out-of-town items collected daily averaged 11,030; the clearings during the entire year were $1,550,471,975.78, equivalent to $5,000,000 per day. The total annual clearings of all the Chicago banks were $7,756,372,455.31, showing that the share of the First National Bank therein was one-fifth. As indicative of the growth both of the bank and the city the clearings for 19 12 [48] THE FIRST NATIONAL BANK OF CHICAGO may be quoted; for the First National Bank they were $3,- 309,322,58048 while for Chicago the figures were $15,380,- 795,541.82, this bank having 21.5 per cent of the total. The tendency toward the amalgamation of financial forces, as illustrated in the consolidation of the Union National Bank with the First National Bank, was still further exemplified in the spring of 1902 by the absorption of the Metropolitan Na- tional Bank in the latter institution. The management of the Metropolitan — in itself of large proportions, as measured by the standards of quite a recent day — deemed it for the best interests of those identified with it to seek association with some larger bank. After a prosperous existence of eighteen years it was considered advisable to combine its strength with that of its well-known competitor. Thus it came to pass that after the usual negotiations and formalities attendant upon such a transaction the merger was accomplished. In the last officially published statement, dated April 30, 1902, the Metro- politan National Bank showed assets and liabilities as follows : RESOURCES Loans and discounts $14,727,611.61 Overdrafts secured and unsecured 4,758.83 United States bonds (at par) 1,000,000.00 Other stocks and bonds 860,233.33 Due from banks $3>°97>655.oo Cash and checks for clearing 7,002,948.89 10,100,603.98 Due from United States Treasurer 42,000=00 $26,735,207.75 [49] THE FIRST NATIONAL BANK OF CHICAGO LIABILITIES Capital stock paid in $ 2,000,000.00 Surplus fund and undivided profits 1,626,287.98 National bank notes outstanding 834,150.00 Dividends unpaid 1,504.50 Deposits 22,273,265.27 $26,735,207.75 Shortly after the consolidation, which was finally con- summated on June 2, 1902, the statement of the First National Bank, issued upon the call of the Comptroller of the Currency July 16, 1902, reads: ASSETS Loans and discounts $60,714,406.72 United States bonds (par value) 1,794,740.00 Other bonds and securities (market value) 7,802,249.44 Cash resources: Due from banks (Eastern exchange) $15,238,725.99 Checks for clearing house 3,024,650.22 Cash on hand 19,626,408.04 Due from United States Treasurer. 169,000.00 38,058,784.25 $108,370,180.41 LIABILITIES Capital stock paid in $ 8,000,000.00 Surplus fund 4,000,000.00 Undivided profits 2,095,966.41 Discount collected but not earned 378,268.78 Special deposit of United States bonds 200,000.00 Circulating notes received from Comp- troller $996,000.00 Less amount on hand 265,810.00 730,190.00 Dividends unpaid 7,796.00 Deposits 92,957,959.22 $108,370,180.41 [50] I ■ > 1 > > » J , • 1 •' • ■ I , I I > J 1 THE BANK'S THIRD BUILDING Northwest Corner Dearborn and Monroe Streets . . I , • THE FIRST NATIONAL BANK OF CHICAGO As a part of the arrangement for the union of the two banks, Elbridge G. Keith, Adolphus C. Bartlett, and William J. Watson, formerly directors in the Metropolitan National Bank, were chosen to represent the interests of the liquidating institution upon the directorate of the First National Bank. Charles H. Conover at the same time retired from the board of the latter. All the former officers of the First National Bank were retained; of the gentlemen lately associated with the Metropolitan, other than those already mentioned, Howard H. Hitchcock was elected a vice-president to rank third in seniority, and Edward Dickinson as assistant cashier, likewise to be third among those occupying such positions. In both consolidations positions for the clerical forces, corresponding as nearly as possible to those held in their respective institu- tions, were provided in the First National Bank, provision being made for credit in the pension fund for previous service. At the close of the year 1902, the surplus was increased by the transfer of one million dollars from the profit and loss account. The bank's charter was extended under date of April 25, 1902, for a period of twenty years, in accordance with the Act approved July 12, 1882, formal consent having been secured from shareholders, representing more than two-thirds of the stock outstanding. In recognition of the desirability of a larger board of directors commensurate with increased and growing business the articles of association were amended to provide for twenty-one members, the following gentlemen, chosen at the annual meeting in January of 1903, served throughout the year, being re-elected January 12, 1904: [5i] THE FIRST NATIONAL BANK OF CHICAGO Samuel W. Allerton, A. C. Bartlett, James B. Forgan, Nelson Morris, Norman B. Ream, William L. Brown, John H. Barker, David R. Forgan, Samuel M. Nickerson, George T # Smith, Geo. D. Boulton, D. Mark Cummings, Elbridge G. Keith, Eugene S. Pike, John A. Spoor, William J. Watson, Otto Young, James H. Hyde, Charles Deering, Henry H. Porter, Jr., George F. Baker The era marked by consolidations may be fairly regarded as having closed. The story of a new epoch equally remark- able, but in other directions, remains to be told. [52] THE FIRST NATIONAL BANK OF CHICAGO WHEN the First National Bank originally occupied quarters at the northwest corner of Dearborn and Monroe streets in 1882, they were considered ample for a long term of years. The National Safe Deposit Company, the entire capital stock of which was then owned by the bank, had erected upon ground leased from the Board of Education an edifice especially for the accom- modation of the First National Bank. During the twenty years following the business of the bank increased in an ever-ascending ratio, and gradually the space used by it became more and more crowded — although both the basement and some other portions of the building had been taken for various purposes — until at length the neces- sity for relief by the construction of an entirely new edifice became imperative. The decision was therefore taken, that the erection of a new building upon the present site and such adjoining ground as might be secured by purchase was not only necessary, but perfectly feasible. Pursuant to this plan, after considerable negotiation, the National Safe Deposit Company bought, at an approximate cost of one million dollars, the two properties on Monroe street just west of the ground held under lease, on which stood the Montauk Block, a structure ten stories high, one of the earliest skyscrapers built in Chicago, and the build- ing of Bradner Smith & Co., a wholesale paper house; which included a frontage of one hundred and twenty-three feet, and with the one hundred and eight feet leased from the Board of [53] THE FIRST NATIONAL BANK OF CHICAGO Education, makes a total of two hundred and thirty-one feet frontage on Monroe street controlled by the bank. The frontage on Dearborn street is one hundred and ninety-one feet. Upon this entire property, including an area of forty-four thousand one hundred and twenty-one square feet, a building eighteen stories in height was erected, inclosing more than ten and one-half millions of cubic feet. The cost, estimated at five million dollars, was provided by an increase in the capital of the National Safe Deposit Company to the sum of two million five hundred thousand dollars, one half of which was retained by the bank and the other half was subscribed by the bank's shareholders, and by the issue of a similar amount of four per cent bonds. Though the expense exceeded this es- timate considerably, the company was able to successfully carry the burden, and later when justified by its earnings, capitalized the value by a stock dividend of forty per cent, amounting to $1,000,000. The building practically fronts on four sides, there being an alley on the north and a court on the west. There is also an interior court measuring sixty by ninety feet, thus providing ample light and ventilation. The construction is entirely fire- proof. The exterior walls are faced with granite and the court walls with white enameled brick. In general the design of the building is in the old Roman style. The first three floors, sixty feet in height, which are occupied by the bank and its affiliated institutions, are marked by a cornice supported on massive Doric pilasters, forty feet in height, inclosing the arched openings of the bank proper. The aggregate height of these three lower stories is equal to that of an ordinary five story building. The banking room is [54] THE FIRST NATIONAL BANK OF CHICAGO thus clearly indicated; and its appearance is imposing and in proportion to its magnitude. Above this point the exterior treatment consists of windows simply spaced to suit the offices of the typical floors. The interior finish is entirely of ma- hogany and white marble. The design is severely simple in keeping with the natural quality of granite, which material is used for the entire fronts of the building. Good and impressive proportions are relied upon for general effect and merely ornamental treatment is everywhere avoided. The purpose is to suggest the strength and dignity of this great financial institution. There are two main entrances to the bank and office build- ing. The principal one is from Dearborn street. Here the vestibule is sixty feet wide, eighty feet deep and entirely finished in marble, with the grand staircase of broad, easy steps ascend- ing twelve feet from the street level to the banking-room floor. On each side of the staircase five elevators connect with the upper floors of the building. The entrance from Monroe street has proved nearly as important. The vestibule here is twenty-four feet wide by fifty feet deep, with a broad staircase to the bank and seven elevators to the offices in the building. The main banking-room occupies the entire second floor, together with an additional floor immediately above, over- looking it through a central court. Architectually, these stories are treated as a unit. The main entrance by the grand staircase from Dearborn street is through an archway opening immediately into the central court, measuring sixty by eighty feet. It is surrounded by an arcade, and roofed over at a height [55] THE FIRST NATIONAL BANK OF CHICAGO of sixty-five feet with a crystal plateglass dome, thus being brilliantly lighted. From this court staircases and a private elevator connect with the First Trust and Savings Bank and safe deposit vaults. The National Safe Deposit Company occupies sixteen thousand one hundred and four square feet of space on the ground floor, with entrance through the vestibule on Dearborn street. The Safety Deposit Vault itself measures forty-two by fifty feet, comprising an area of two thousand one hundred square feet, and contains fourteen thousand boxes, provision being made for additions when required. Coupon-rooms, committee-rooms, and reception-rooms for men and women are provided. The office, vestibule, and all other appointments are thoroughly in keeping with the general tone of the building and finished in white marble and mahogany. During its erection business uninterruptedly continued in the old structure until the first portion of the new building on the west half of the Monroe street frontage was completed. The bank on December 5 and 6, 1903, removed into this finished section, opening for business on Monday, December 7. The old building at the corner of Dearborn and Monroe streets was then demolished and the remainder of the new edifice finally completed May 1, 1905. The foresight and wisdom of those considering the future needs of this great institution were never more fully demonstrated than in the housing of the many-sided business. With most impressive architecture has been combined practical utility so perfectly that today, more than a decade since the plans were drawn, men whom experience makes authoritative pronounce this banking room unsurpassed in all the world. [56] THE FIRST NATIONAL BANK OF CHICAGO SCARCELY had the steel and granite of the new build- ing marked the sky line of the city when there was conceived in the minds of those directing the affairs of the bank an idea pregnant with greater possibilities than any action taken since the organization of the association. This idea culminated on December 18, 1903, when the directors declared a special dividend of $12.50 per share, amounting to $1,000,000, to pay in the capital stock of the First Trust and Savings Bank, a corporation organized under the laws of the State of Illinois. Though the two banks are separate and distinct as corporations, yet by the close associa- tion it seems both logical and fitting that in these pages the progress of the one be chronicled with that of the other. During the months preceding an agreement had been con- summated by and between James B. Forgan, David R. Forgan, George D. Boulton, Howard H. Hitchcock and Richard J. Street, as trustees, parties of the first part, and Otto Young and all the other stockholders of the First National Bank of Chicago. This agreement, bearing date November 2, 1903, states in its preamble, that " It is deemed to be for the interest of the stock- holders of said The First National Bank of Chicago that a savings bank and trust company should be organized under the laws of the State of Illinois, which shall be continuously owned by the per tens who shall from time to time be the shareholders of record of the said national bank, or such other bank as may from time to time succeed to said national bank's good-will and business, in proportion to the respective holdings of record [57] THE FIRST NATIONAL BANK OF CHICAGO of the stock of said national bank (or its successors as aforesaid,) for the purpose, in part, of transacting for the patrons of said national bank certain branches of business usually or often transacted by banking institutions, but not clearly included within the corporate powers of said national bank; and to that end it is desirable to secure the consent in writing of all the shareholders of said national bank to the plan for the organization of said savings bank and trust company and the ownership of its stock and the management of its affairs." The document then provides for the consent of share- holders ; the name and capital of the corporation ; the holding of the stock by the president, three of the vice-presidents and the cashier of the national bank, as trustees; the manner of distribution of dividends ; the continuation or termination of the trust; the liability of those beneficially interested; the payment of the capital stock; that the beneficial interest shall be evidenced by endorsement on the certificates of the national bank; that the stock of the two banks shall be inalienable during the life of the trust ; and, finally ; that the directors of the savings bank shall be directors of the national bank. The unanimous concurrence of the comparatively numerous and widely separated shareholders of the First National Bank was deemed essential, but, eventually all difficulties were over- come and satisfactory and binding consent secured from all. Submitted to the Comptroller of the Currency and to the Auditor of the State, the plan received the sanction of both officials. The latter's license to do business is dated December 24, 1903, and four days later the First Trust and Savings Bank opened for business on the ground floor at 115 Monroe street, in the completed section of the First National Bank Building. [58] LYMAN J. GAGE « ' •< < > THE FIRST NATIONAL BANK OF CHICAGO The officers of the new institution were James B. Forgan, president; David R. Forgan, vice-president; Emile K. Boisot, vice-president and manager; David V. Webster, assistant sec- retary; and Robert D. Forgan, assistant treasurer, serving under a directorate and advisory committee, of which the board of directors of the First National Bank comprised the member- ship. Three principal divisions of the bank's business, the Bond department, the Savings department and the Trust department, were organized at the outset and have since con- tinued, each distinct in character but working together for the benefit of the bank and its patrons. Success, in a measure unprecedented in the annals of Chicago finance, came to the First Trust and Savings Bank from the beginning. In the first seven days after its doors were opened 1089 savings accounts had been started, all the deposits showing a total of $3,195,591. A statement issued under date of March 22, 1904, in response to the call of the Auditor of the State gives the following figures : RESOURCES Bonds on hand $3,290,756.29 Loans and discounts 3,516,426.42 Cash and due from banks 1,574,664.05 $8,381,846.76 LIABILITIES Capital $1,000,000.00 Undivided profits 68,286.55 Savings deposits $2,033,720.42 Other deposits 5,279,839.79 7,313,560.21 $8,381,846.76 On the twenty-ninth of the same month Louis Boisot was [59] THE FIRST NATIONAL BANK OF CHICAGO appointed Trust officer, the staff otherwise continuing without change to December 27th, when D. V. Webster and R. D. Forgan were promoted, respectively to be secretary and treasurer. B By the close of the year the savings depositors numbered in excess of ten thousand, while deposits had reached a total of $17,931,056. This volume of business, far even in excess of expectations, made increased space desirable, almost essential, and the adjoining frontage on Monroe street was secured, giving a banking-floor then thought to be adequate for some years to come. This outline of the origin and early progress of the First Trust and Savings Bank though brief, has covered a time of some import in the parent institution, and in reverting to the latter, this introduction will permit the concurrent considera- tion of the affairs of both. A number of changes in the official staff had marked the period of transition from the old to the new building. On December 29, 1903, John E. Gardin resigned as manager of the Foreign Exchange department, Max May being appointed his successor, with Fred I. Kent as assistant manager. Mr. May held the post only until the following autumn, upon his resignation Mr. Kent assumed the duties of the office. Frank O. Wetmore, the bank's auditor since the creation of that position, was appointed, on June 28, 1904, assistant cashier, succeeding Edward Dickinson, resigned. M. D. Witkowsky was made auditor. The loss of George T. Smith to the board is recorded in the minutes of meeting of November 29, 1904, as one "whose [60] THE FIRST NATIONAL BANK OF CHICAGO death had deprived the bank of an able and conscientious director who had devoted his most efficient service to its interests." At this latter meeting the tendency of the bank to create rather than follow precedent was again exemplified by the board's adoption of a plan, previously submitted by President Forgan for consideration. So incisive is the analysis of the defects then existing, so unique in banking the remedy in- volved, that this report, scientific in its deductions, compre- hensive in its scope, is here given in detail: "The proper organization of the work of the official staff of the bank is a subject that has been frequently discussed with me by individual members of this Board. "The absorption of the Union National Bank (in 1900) and of the Metropolitan National Bank (in 1902), together with the rapid growth of the Bank's own business, has inter- fered with the proper development and effective organization of the work of the officers. Our chief aim has been to hold the business acquired through these consolidations and the efforts of the officers who came to us from these banks have been more especially directed to this end. In this we have been quite successful, more so than we thought possible when the consol- idations were under contemplation. The Bank's business had really outgrown the facilities of its office in the old building prior to the consolidation with the Metropolitan National Bank, and after that event were wholly inadequate. All this has kept us in more or less confusion, preventing a proper and effective organization of the work. Our efforts have been to diffuse and have lacked concentration and grasp. This has led to losses that might have been avoided had the watchful [61] THE FIRST NATIONAL BANK OF CHICAGO care and thought of the individual members of the staff been more directly concentrated on and restricted to such a portion of the business as each could reasonably be expected to master. " In other words, our work has been generalized rather than specialized. Our efforts have not been properly nor econom- ically directed to accomplish the best results from the large volume of business we do and responsibility has been so divided that it has been impossible to fasten mistakes on anyone in particular. Besides this, there has not been sufficient op- portunity for the development and training of young men to fill the places of the senior officers, when in the ordinary course of events their services will be lost to the Bank. All this has been known to me as it has to most of you for some time. Not until now, however, when the facilities of our new office, rapidly approaching completion, afford the opportunity, have I seen my way to so re-organize the work of the officers under me as to get more effective and more satisfactory results from their services. " I now propose to specialize and divide the work by assign- ing to individual officers the care and management of the ac- counts of customers in specific lines of business. A senior and junior officer will work together in the management of all of the accounts in a particular line of business. It may be that they will be required to take charge of more than one line, but they will only be held responsible for the accounts in their particular line or lines of business assigned to them, and will be relieved of responsibility for the accounts in other lines, as- signed to other officers. "Each senior officer will be responsible for the credits granted in his division. A junior officer will be in constant [62] THE FIRST NATIONAL BANK OF CHICAGO touch with him and will attend to the details of the accounts under his direction. Both will be expected to use their best endeavor to work up new business in the special lines assigned to them, and will annually prepare a report to the executive committee embracing a statement of the condition of each account, with a report as to whether it is satisfactory or other- wise; also showing how the business of the bank has developed during the year in the special lines of business under their charge. In this way responsibility will be definitely fixed and the management can be judged by results. "I will personally keep in touch with the business, consulting with the senior officers, criticising the accounts under their charge and maintaining a careful supervision over them just as I have done in the past. This re-organization of the work should enable me to do my part more efficiently than has here- tofore been possible. The reports will be arranged so that two or three lines of business will be reported on each calendar month." The official organization became effective January I, 1905, with six divisions, twenty-six sub-divisions, seven departments, and officers, under James B. Forgan, president, as follows: Division A — David R. Forgan, vice-president; E. S. Thomas, assistant manager — collateral stocks and bonds; grain, flour and feed; meat products, live stock commission; coal; doctors and lawyers. Division B — George D. Boulton, vice-president ; Frank E. Brown, assistant manager — dry goods, millinery; woolens, clothing, cloaks; furnishing goods, hats and caps; jewelry and merchanishing sundries; transportation; and ladies' accounts. [63] THE FIRST NATIONAL BANK OF CHICAGO Division C — Howard H. Hitchcock, vice-president ; Charles N. Gillett, assistant manager — agricultural implements, bug- gies, automobiles and other vehicles; iron and steel products; lumber, furniture, etc.; manufacturing sundries. Division D — Richard J. Street, manager; Frank O. Wet- more, cashier — stone, brick, cement, contractors; wallpaper, paints, oils, glass, etc. ; boots, shoes, leather, hides and wool ; real estate and insurance; publishing, printing, engraving and paper ; miscellaneous. Division E — Holmes Hoge, manager; Charles H. Newhall, assistant manager — wholesale and retail liquors, brewers and brewers' supplies; tobacco; produce commission and cold storage; groceries, drugs, restaurants; bakers and hotels. Division F — August Blum, manager; Herbert W. Brough, assistant manager — banks and bankers. Law department — Orville Peckham, attorney; James D. Woley, assistant attorney; Bond department — Emile K. Boisot, manager; Foreign Exchange department — Fred I. Kent, manager; John J. Arnold, assistant manager; Auditing department — M. D. Witkowsky, auditor; Discount and Col- lateral department — E. J. Blossom, manager; Credit and Statistical department — H. A. Howland, manager; Clerical and Bookkeeping departments — William H. Monroe, assistant cashier. Notable even at this time of radical change is the appoint- ment of Frank O. Wetmore as cashier and that of William H. Monroe as the only assistant cashier. At the annual meeting of this year (1905) two new members, [64] THE FIRST NATIONAL BANK OF CHICAGO A. A. Carpenter, Jr., and Harold F. McCormick, were elected to the board, Mr. Nickerson withdrawing from its council. In May the board was again subjected to loss through the death of Elbridge G. Keith, president of the Metropolitan National Bank during the entire eighteen years of its existence, and since 1902 a director of this bank. From an appreciation upon the minutes is quoted: "We desire to record our appreciation of his noble char- acter and useful life and our deep sense of loss in his death. Mr. Keith was an example of the highest type of American citizen- ship. While conservative and successful as a banker, he was ever an energetic leader in any cause which had for its object the upbuilding of our city, the purification of our politics or the helping of the poor and needy. He commanded the af- fection as well as the respect of all who were associated with him and will long be remembered as one of the best citizens Chicago ever had." To fill the vacancy on the board Howard H. Hitchcock was elected. On December 26, George D. Boulton, who had served the bank in various capacities for forty years, resigned as vice- president and director. To this service and to the man was tendered, by the board, an expression of thanks and apprecia- tion with cordial wishes for health and happiness. On this same day were tendered the resignations of James H. Hyde as director and Frank E. Brown as assistant division manager. Assembled on January 9, 1906, the shareholders elected Emile K. Boisot and E. T. Jeffery to fill the vacancies on the board, the personnel otherwise remaining as before. The resignations just noted made essential a rearrangement of the [65] THE FIRST NATIONAL BANK OF CHICAGO staff. Frank O. Wetmore, cashier, was placed in charge of Division B, with M. D. Witkowsky as assistant manager, the latter being succeeded as auditor by Arthur W. Newton; Henry A. Howland became assistant manager of Division C, E. A. Erickson assuming the duties of manager in the Credit and Statistical department. In the First Trust and Savings Bank on the same date Burt C. Hardenbrook was appointed manager of the Bond department and on March 31, 1906, after this bank took charge of the First National Bank building, as agent for the National Safe Deposit Company, Robert L. Davis was appointed manager of the real estate department. The year was remarkable in the annals of Chicago finance as that in which the banking institutions of the city assumed the obligations of two insolvent banks and a trust company which had been dominated and wrecked by their president. So abhorrent were the conditions found, and so unable public officials under existing law to cope with possible recurrences of the situation, that there was appointed by the Chicago Clearing House Association an examiner whose duty included the examination of members of the association and all other banks which clear through members. The innovation, an unqualified success, has been an important factor in maintain- ing the credit of Chicago's banks upon the highest plane. From the standpoint of earnings as well as in volume of deposits the year 1906 was most satisfactory. The former, due largely to the high rates of interest prevailing during the year, exceeded $1,400,000, enabling the directors to transfer $1,000,000 from profit and loss account to the surplus fund. For the first time in the records of the association the deposits averaged in excess of one hundred million dollars. At the [66] > t > 3 > > » J , ■ > . 1 , , > > » J * » > t JAMES B. FORGAN THE FIRST NATIONAL BANK OF CHICAGO close of the year the management reported, with great satis- faction, that the organization of the bank's business into divisions, inaugurated two years previously, had justified every expectation entertained at the time of its inception. Under the new system the business of the bank had been handled with greater efficiency and with more satisfactory results, both to the bank and to its clients, than could have been accom- plished under the methods formerly in vogue. The period had been a triumphant vindication of a plan of bank-management in which this bank was the pioneer. The First Trust and Savings Bank had kept up its phe- nomenal growth and very satisfactory earning capacity. The capital account was doubled by the transfer of one million dollars from the surplus, leaving one-half million dollars in the latter account, thus placing the bank on a broader capital basis, in keeping with its increased business. But with this material success came losses, not measurable by money value, but none the less severe. Otto Young, since 1900 a member of the board, was removed by death on No- vember 30, 1906. On December 24, 1906, David R. Forgan resigned as director and vice-president, having occupied both offices since the absorption of the Union National Bank, also severing all connections with the First Trust and Savings Bank. Holmes Hoge, manager of Division E, also resigned upon the same date. To fill the vacancies on the board were elected James J. Hill and Benjamin Allen. At the opening of 1907 changes again take place in the official staff : Howard H. Hitchcock as senior vice-president is in charge of Division A; F. O. Wetmore and August Blum are made [67] THE FIRST NATIONAL BANK OF CHICAGO vice-presidents; Charles N. Gillett being appointed cashier. Charles H. Newhall becomes manager of Division E with John P. Oleson as assistant manager. A. W. Newton takes up duties in Division D as assistant manager, being succeeded as Auditor by H. L. Droegemueller, and W. J. Lawlor is made assistant manager in the Credit and Statistical department. The entire board, without change, continued until the death of Nelson Morris on August 27, 1907, terminating a service which had been uninterruptedly given to the bank for over thirty-five years. To the institution he was ever a tower of strength, a wise and conservative counselor; to its management he was, in truth, an inspiration for all that leads to honorable ends. At the September meeting of the board Edward Morris was elected to fill the vacancy. The brief, but violent, panic of 1907 cannot, for these pages, be better described than by quotation from President Forgan's address at the bank's annual dinner: "We have finished another year's voyage on the great sea of time and our good old ship, the First National, with its sister ships, the First Trust and the National Safe Deposit Company, have come into port undamaged by the stress of the storm they experienced towards the end of the voyage. It is a great satisfaction to us, the officers of these good ships, that we have not only taken care of our own craft but have been able to afford assistance by throwing out a life-line here and there not only to other financial craft of our own description, but to many ships of commerce caught in the same storm. "At the beginning the weather was fair, the sailing smooth and the prospects bright for one of the best and most profitable [68] THE FIRST NATIONAL BANK OF CHICAGO annual voyages in our history. We had not gotten more than half way, however, when clouds appeared on the horizon which grew darker and darker until they broke in one of the fiercest financial storms within the memory of man. We were com- pelled to adopt means for safety and self -protection to which we were unaccustomed, never before having had to resort to them. Under the administration of a hard-working and de- voted Clearing House Committee these means have been so administered in Chicago that they have brought the whole of the Chicago financial fleet through the storm without the loss of a single ship and with but few wrecks among the vessels of commerce. We were not, of course, able to bring our cargo entire into port. A considerable part of our Walsh consign- ment, or assignment, had to be thrown overboard in the mid- ocean of contingency and some other commercial consign- ments that went bad on the voyage had to be unloaded into the lifeboat of Debit Contingent, from which, however, we look for considerable salvage. "After this trying experience and the buffeting we have gone through, what remains of the cargo is in good condition and the net result of the voyage is highly satisfactory to our own immediate craft and their owners. As we show up in our annual statements no one could think that we had weathered a tornado or breasted a heavy sea. We came into port with colors flying, not a leak sprung, not a sail rent, not a spar broken. Undaunted by our strenuous experience and not un- duly elated with our success, but with renewed confidence in our ships and in their organization and with the brightest hopes, we have started out on the voyage of 1908 with full assurance that our past records will be fully maintained what- ever conditions may be." [69] THE FIRST NATIONAL BANK OF CHICAGO The year closed with the transfer of one million dollars from profit and loss account to the surplus fund, concrete evidence that the effects of the panic were not serious. When the first call of the succeeding year was made by the Comptroller of the Currency the effects of the stringency so far as deposits were concerned had passed. At the close of busi- ness February 14, 1908, the First National Bank reported: ASSETS Loans and discounts $65,640,599.91 United States bonds (par value) 4,491,000.00 Bonds to secure U. S. deposits other than U. S. bonds. 1,696,000.00 Other bonds and securities (market value) 7,257,436.01 National Safe Deposit Co. stock (bank building) . . . 1,250,100.00 Cash resources: Due from banks (Eastern exch.) . . . $20,123,676.92 Checks for clearing house 3,547,008.43 Cash on hand 21,219,220.28 Due from U. S. Treasurer 534,100.00 45,424,005.63 $i25,759,i4i.5S LIABILITIES Capital stock paid in $ 8,000,000.00 Surplus fund 7,000,000.00 Other undivided profits 744,658.24 Discount collected but not earned 436,290.80 Special deposit of United States bonds 2,827,000.00 Special deposit of other bonds 1,346,000.00 Circulating notes received $3,221,997.50 Less amount on hand 0.00 3,221,997.50 Dividends declared but unpaid 2,876.00 Reserved for taxes 16,000.00 Deposits 102,164,319.01 $125,759,141.55 [70] THE FIRST NATIONAL BANK OF CHICAGO The figures of the First Trust and Savings Bank on the same date were: ASSETS Bonds $10,847,145.35 Time loans on collateral 8,643,697.69 Demand loans on collateral $4,690,028.74 Cash and due from banks 9,823,808.45 14,513,837.19 $34,004,680.23 LIABILITIES Capital $ 2,000,000.00 Surplus and undivided profits 1,476,576.32 Time deposits $23,236,386.15 Demand deposits 7,291,717.76 30,528,103.91 $34,004,680.23 On January 14, 1908, Frank O. Wetmore was relieved of special duties as manager of Division B, in order that his services might be devoted to assisting the President in the supervision of all the credits of the bank. William J. Lawlor was appointed at the same meeting manager of the Credit and Statistical department, the staff otherwise remaining unchanged until toward the close of the year, when, on December 24, Fred I. Kent resigned and on the same day Richard J. Street, by resignation, terminated an active service which had continued more than forty years with credit to himself and profit to the institution. Promotions again marked the official staff at the opening of 1909. M. D. Witkowsky and A. W. Newton were appointed managers of their respective divisions; H. H. Heins and A. C. C. Timm were made assistant managers; John J. Arnold, acting manager, and Charles P. Clifford, assistant manager, [71] THE FIRST NATIONAL BANK OF CHICAGO took charge of the Foreign Exchange department, and John F. Hagey became assistant attorney. In the First Trust and Savings Bank, Frank M. Gordon was appointed assistant manager of the bond department. As the result of the business of 1909 the directors after pay- ing the usual dividends, again transferred one million dollars to surplus account, making the surplus equal to the capital. The First Trust and Savings Bank, having accumulated capital demanded by the growth of business, was placed upon a divi- dend basis and quarterly disbursements of four per cent upon its capital were made, thus placing shareholders of the national bank in receipt of dividends equivalent to sixteen per cent upon its stock. Since 1902 the capital had remained unchanged, but, in keeping with both growth and demand, an increase was deemed, by the directors, to be advisable. In accordance with this view a proposition to issue twenty thousand new shares to stock- holders of record at two hundred dollars per share was sub- mitted to the latter body, which voted at the annual meeting on January 11, 19 10, that the stock of the bank be in- creased to $10,000,000, the action to become effective April first. On this date the surplus was augmented by $2,000,000 making it equal to the capital, and the capital stock of the First Trust and Savings Bank was increased to $2,500,000. The articles of association were also amended to provide for increase of the board of directors to twenty-five, and Bernard E. Sunny, Clarence M. Woolley and Frank O. Wetmore were elected to membership. The only changes made in the official staff at this time were the appointments of John F. Hagey, formerly assistant attorney, to assistant manager of Division [72] THE FIRST NATIONAL BANK OF CHICAGO F, in place of Herbert W. Brough, who had died suddenly in the preceding December, and the promotion of John J. Arnold from acting manager in the Foreign Exchange depart- ment to manager. Roy C. Osgood was appointed assistant trust officer in the First Trust and Savings Bank. Demonstrated success had proved the divisional form of official organization thoroughly satisfactory, with the single exception that the titles, manager and assistant manager, un- usual as applied to bank officers, did not indicate either position or rank to customers or the public. In making the system permanent the board, on June 28, 1910, appointed Emile K. Boisot, Charles N. Gillett (who continued as cashier), Charles H. Newhall, M. D. Witkowsky and Arthur W. Newton vice- presidents, and Edward S. Thomas, Henry A. Howland, John P. Oleson, H. H. Heins, A. C. C. Timm and John F. Hagey assistant cashiers of the bank. Their duties remained as before, but the technical change undoubtedly added considerable prestige to the positions. Before the year closed the board was subjected to heavy loss in the death of John H. Barker, a man of unusual achieve- ment in the business world and a source of strength in the councils of the bank. On January 10, 191 1, Charles H. Morse was elected to succeed Mr. Barker, the board otherwise re- maining unchanged. New appointments made C. M. Wal- worth manager of the Discount and Collateral department, succeeding Edward J. Blossom, retired; and Edward E. Brown assistant attorney, a position for some time held, but without official title. If from sentiment alone, considerable importance attaches [73] THE FIRST NATIONAL BANK OF CHICAGO to the action of the Comptroller of the Currency on May 24, 191 1, in restoring the original designation, "The First National Bank of Chicago, Number 8," thus officially recognizing the continuing existence of the bank. By the close of 1910, more than sixty thousand savings ac- counts were upon the books of the First Trust and Savings Bank, which, with a larger volume of business in other de- partments, made imperative the demand for additional space. An area of slightly over three thousand square feet was available on the ground floor at the northeast corner of the building, which after necessary alterations was occupied in June of 191 1 by the Trust department, the space vacated being taken for the Savings department. With this acquisition the bank has a total frontage of fifty-seven feet on Dearborn street and one hundred thirty-eight feet on Monroe street, and nearly twelve thousand square feet of floor area. Plans under contempla- tion, which include the occupancy of the southeast corner, will add some sixteen hundred square feet to the ground floor area, with additional working space and vaults in the basement. On the recommendation of the directors the shareholders of the First Trust and Savings Bank at a special meeting held on December 19, 191 1, voted to increase the capital stock of the First Trust and Savings Bank to $5,000,000 by transferring $2 , 500,000 from surplus account the last day of the year. Each shareholder had now a beneficial interest of half a share in the First Trust and Savings Bank stock for every share of First National Bank stock owned; the ratio remains unchanged. The board and official staff of the First National Bank are again subjected to change. Charles Deering, on December 26, [74] > t ' , » OFFICIAL STAFF OF 1910 First row (seated) left to right: Messrs. Gillett, Wetmore, Boisot, Forgan, Hitchcock, Blum. Second row: Messrs. Monroe, Howland, Arnold, Timm, Newton, Blos- som, Hagey, Heins. Third row: Messrs. Oleson, Droegemueller, Newhall, Witkowsky, Lawlor, Peckham, Thomas, Clifford. THE FIRST NATIONAL BANK OF CHICAGO 191 1, resigned, being succeeded by William J. Louderback. Two weeks later George F. Baker also withdrew from the board, and Marvin Hughitt was elected to the vacancy. The most important promotion of 19 12 was the appointment of Henry A. Howland to the cashiership, succeeding Charles N. Gillett, the latter continuing as vice-president in charge of Division C, to which was also appointed William J. Lawlor with the title of assistant cashier. The force in Division F, handling the accounts of banks and bankers, was augmented by the appointment of R. F. Newhall and George H. Dunscomb as assistant cashiers, both of whom had been active in the work of this division. Charles R. McKay, manager of the Transit and General Books department, was made an official, and J. W. Lynch was placed at the head of the Credit and Statistical department. The retirement of Orville Peckham, who for more than thirty years had been the legal advisor of the bank, was followed by the appointment of Edward E. Brown as attorney and John Nash Ott, assistant attorney. In accordance with a policy adopted by the directors there was no division during 19 12 of the profits of the First Trust and Savings Bank. In lieu thereof special dividends equal to five per cent for the year on the capital stock of the First National Bank were paid out of its earnings. The First Trust and Savings Bank was thus enabled to increase its surplus account from $1,000,000 to $2,500,000. Should the earnings of the First National Bank permit, this policy will be con- tinued until the surplus of the First Trust and Savings Bank is equal to its capital. In the latter bank, on January 14, 1913, Louis Boisot was appointed vice-president, retaining the title of trust officer; [75] THE FIRST NATIONAL BANK OF CHICAGO Burt C. Hardenbrook became the incumbent of the newly created position of cashier, Frank M. Gordon succeeding him as manager bond department ; C. G. Fleager was made assist- ant treasurer, and Arlan W. Converse assistant secretary. It is interesting to note in the absence of change in board and official staff of the First National Bank that Samuel W. Allerton, binding the present to the past, continues as a di- rector, in which capacity he has served the bank continuously since the first organization, and to whom was issued certificate number one in 1863. The first statement issued upon call of the Comptroller in 1913, the semi-centennial year of the First National Bank, shows at the close of business February 4: ASSETS Loans and Discounts $85,586,825.73 United States bonds (par value) 2,359,000.00 Other bonds and securities (market value) 6,071,245.81 National Safe Deposit Co. stock (bank building) . . . 1,250,000.00 Cash resources: Due from U. S. Treasurer $ 925,450.00 Cash and due from banks 50,896,519.84 51,821,969.84 $147,089,041.38 LIABILITIES Capital stock paid in $10,000,000.00 Surplus fund 10,000,000.00 Other undivided profits 1,897,477.08 Discount collected but not earned 637,822.80 Special deposit of United States bonds 1,700,000.00 [76] THE FIRST NATIONAL BANK OF CHICAGO Circulating notes received $2,109,000.00 Less amount on hand 0.00 $ 2,109,000,00 Dividends declared but unpaid 1^965.75 Reserved for taxes 53,136.2 1 Deposits 120,689,639.54 $147,089,041.38 The First Trust and Savings Bank, reported at the same date. ASSETS Bonds $20,840,553.91 Time loans on collateral 18,643,773.64 Demand loans on collateral $12,291,620.94 Cash and due from banks 10,923, 713.65 23,215,334.59 $62,699,662.14 LIABILITIES Capital $ 5,000,000.00 Surplus and undivided profits 2,644,849.20 Reserve for interest and taxes 96,641.65 Time deposits $43,592,382.31 Demand deposits 11,365,788.98 54,958,171.29 $62,699,662.14 Half a century has elapsed since the passage of the National Bank Act, and the organization of the First National Bank of Chicago under its provisions. Some conception of the steady progress which the bank itself has made during this period — until now it has a balance sheet exceeding $145,000,000 — will be formed, still it may not be realized, without reflection, what a force it has been in the advancement of the city and the enormous territory commercially tributary thereto. While it has certainly profited by the phenomenal growth of the com- [77] THE FIRST NATIONAL BANK OF CHICAGO munity, it has on the other hand contributed in no small measure to the extension of the trade and the development of the material interests of those whom it serves. The past progress and present position of Chicago are in a great measure attributable to the sound condition of its prin- cipal representatives in the world of finance. Among these in- stitutions, the First National Bank and the First Trust and Savings Bank not only hold high rank by virtue of the volume of their business, but have also won universal recognition as safe and conservative, while they are at the same time not the less thoroughly equipped and fully cognizant of the needs and requirements of those who have made Chicago the great central market, and believe it a city of destiny. Without desire or intention to eulogize the First National Bank, or by induction the First Trust and Savings Bank, it is believed that some few words of satisfaction at its past career can be uttered. By reason of the excellent management which it has uninterruptedly enjoyed, the high financial policy which it has strenuously advocated, and the respect and esteem of the community which it has never sacrificed, this institution has attained a reputation well merited by its record. Appreciative of the consideration which it has received, and always anxious to conserve the best interests of those who in any way are con- nected with it, the First National Bank may still justly an- ticipate many long years of public service. If the experience of the past is a fair criterion upon which to hazard a prediction, a yet greater future is in store for the First National Bank of Chicago. [78] THE FIRST NATIONAL BANK OF CHICAGO MEMBERS OF THE BOARD OF DIRECTORS OF THE FIRST NATIONAL BANK OF CHICAGO From 1863 to 19 13 Aiken, Edmund - - - - 1863-1867 Allen, Benjamin - - - - 1906- Allen, Benjamin F. - - - 1871-1874 Allerton, Samuel W. - - - 1863- Baker, George F. - - - - 1903-1912 1900-1910 Bartlett, Adolphus C. - - 1902- Boisot, Emile K. - - - - 1906- Boulton, George D. - - - 1897-1905 Bronson, Tracy J. - - - - 1863-1867 Brown, William L. - - - 1900- Carpenter, A. A. - - - - 1 883-1 900 Carpenter A. A. Jr. - - - 1905- Conover, Charles H. - - - 1900-1902 Crosby, Isaac - - - - - 1876-1877 Crumbaugh, Frederick - - 1869-1872 Cummings, D. Mark - - 1900- Deering, Charles - - - - 1903-1911 Fargo, James C. - - - - 1863. Forgan, David R. - - - - 1 900-1 906 Forgan, James B. - - - - 1892- 1870-1897 Gray, Franklin D. - - - - 1 866-1899 [79] THE FIRST NATIONAL BANK OF CHICAGO Hall, Elbridge G. - - - - 1863-1870 Hill, James J. 1906- Hitchcock, H. H. - - - - 1905- Howard, Samuel G. D. - - 1863-1866 Hughitt, Marvin - - - - 19 12- Hutchinson, Benj. P. - - - 1 863-1 867 Hyde, James H. - - - - 1903-1905 Jeffery, E. T. 1906- Keith, Elbridge G. - - - 1 902-1 905 Lawrence, E. F., 1870-1876, 1877-1898 Lewis, Henry B. - - - - 1867-1869 Louderback, Wm. J. - - - 19 11- McCormick, H. F. - - - 1905- Morris, Edward - - - - 1907- Morris, Nelson - - - - 1872-1907 Morse, Charles H. - - - - 1911- Nickerson, Roland C. - - - 1892-1900 Nickerson, Samuel M. - - 1863-1905 Peckham, Orville, 1 888-1 890, 1 891-1892 Pike, Eugene S. - - - - 1885- Porter, Henry H. - - - - 1868-1891 Porter, Henry H. Jr. - - - 1903- Ream, Norman B. - - - - 1890- Rice, Byron 1863-1868 Sherman, John B. - - - - 1863-1867 Singer, Horace M. - - - - 1879-1888 Smith, George T. - - - - 1 899-1 904 Spoor, John A. - - - - - 1900- [80] THE FIRST NATIONAL BANK OF CHICAGO bunny, Bernard h>. - - - IQIO- Symonds, Henry R. - - - 1882-1892 Talcott, Mancel - - - - 1867-1878 Thompson, Daniel - - - 1869-1871 Walker, George C. - - - 1867-1869 Watson, William J. - - - 1902- Webster, George - - - - 1867-1870 Wetmore, Frank 0. - - - 1910- Wilmarth, Henry M. - - ■ ■ 1874-1885 Woolley, Clarence M. - - - 1910- 1900-1906 [81] THE FIRST NATIONAL BANK OF CHICAGO OFFICERS OF THE FIRST NATIONAL BANK OF CHICAGO From 1863 to 19 13 Presidents Edmund Aiken - - - - 1863-1867 Samuel M. Nickerson - - 1867-1891 Lyman J. Gage - - - - 1891-1897 Samuel M. Nickerson - - 1897-1900 James B. Forgan - - - - 1900- Vice-Presidents James C. Fargo - - - - 1863. Samuel M. Nickerson - - 1863-1867 Franklin D. Gray - - - - 1867-1882 Lyman J. Gage - - - - 1882-1891 Henry R. Symonds - - - 1891-1892 James B. Forgan - - - - 1892-1900 David R. Forgan - - - - 1 9 00- 1 906 Geo. D. Boulton - - - - 1 900- 1 905 H. H. Hitchcock - - - - 1902- Frank 0. Wetmore - - - 1907- August Blum ----- 1907- E. K. Boisot 1910- Charles N. Gillett - - - 1910- Charles H. Newhall - - - 1910- M. D. Witkowsky - - - 1910- Arthur W. Newton - - - 1910— Second Vice-Presidents Henry M. Kingman - - - 1891. James B. Forgan - - - - 1892. George D. Boulton - - 189 7 -1900 [82] THE FIRST NATIONAL BANK OF CHICAGO Cashiers Edward E. Braisted - - - 1 863-1 866 Cornelius R. Field - - - 1 866-1 868 Lyman J. Gage - - - - 1868-1882 Henry R. Symonds - - - 1882-1891 Richard J. Street - - - - 1 891-1905 Frank O. Wetmore - - - 1905-1907 Charles N. Gillett - - - 1907-1912 Henry A. Howland - - - 19 12- Assistant Cashiers A. A. Wheeler 1864-1865 Charles J. Schmitt - - - 1 866-1 868 Henry R. Symonds - - - 1869-1882 Henry M. Kingman - - - 1882-1891 Holmes Hoge ----- 1891-1905 August Blum ----- 1900-1905 Frank E. Brown - - - - 1 900-1 905 Charles N. Gillett - - - 1900-1905 Edward Dickinson - - - 1902-1904 Frank O. Wetmore - - - 1904-1905 William H. Monroe - - - 1905- Edward S. Thomas - - - 1910- Henry A. Howland - - - 1910-1912 John P. Oleson - - - - 19 10- H. H. Heins ----- 1910- A. C. C. Timm - - - - 1910- John F. Hagey - - - - 1910- William J. Lawlor - - - 19 12- R. F. Newhall - - - - 19 12- George H. Dunscomb « - 19 12- Second Assistant Cashiers Richard J. Street - - - - 1882-1891 Frank E. Brown - - - - 1897-1900 [83] THE FIRST NATIONAL BANK OF CHICAGO Auditors Frank 0. Wetmore - - - 1897-1904 M. D. Witkowsky - - - 1 904- 1 906 A. W. Newton - - - - - 1 906-1 907 H. L. Droegemueller - - - 1907- OFFICIAL DIVISIONS Managers Richard J. Street - - - - 1 905-1 908 Holmes Hoge 1905-1906 August Blum 1 905-1 907 Charles H. Newhall - - - 1907-1910 M. D. Witkowsky - - - 1909-19 10 A. W. Newton 1909-1910 Assistant Managers E. S. Thomas 1905-19 10 Frank E. Brown - - - - 1905. Charles N. Gillett - - - 1905-1907 Charles H. Newhall - - - 1905-1907 Herbert W. Brough - - - 1905-19 10 M. D. Witkowsky - - - 1906-1909 Henry A. Howland - - - 1906-19 10 John P. Oleson - - - - 1907-1910 A. W. Newton - - - - 1907-1909 H. H. Heins 1909-1910 A. C. C. Timm - - - - 1909-1910 John F. Hagey - - - - 1910. [84] THE FIRST NATIONAL BANK OF CHICAGO OFFICIAL DEPARTMENTS Managers Geo. D. Boulton - - - - 1 891-1897 Emile K. Boisot - - - - 1897-1910 John E. Gardin - - - - 1901-1903 Max May ------ 1903-1904 Fred I. Kent ----- 1905-1908 E. J. Blossom ----- 1905-1911 H. A. Howland - - - - 1905-1906 E. A. Erickson ----- 1906-1908 William J. Lawlor - - - - 1908-19 12 John J. Arnold ----- 1909- C. M. Walworth - - - - 191 1- Charles R. McKay - - - 19 12- J. W. Lynch 1912- Assistant Managers John E. Gardin - - - - 1897-1901 Max May ------ 1901-1903 Fred I. Kent ----- 1903-1905 John J. Arnold ----- 1 905-1 909 W. J. Lawlor ----- 1907-1908 Charles P. Clifford - - - 1909- Attorneys Orville Peckham - - - - 1879-1912 Edward E. Brown - - - 19 12- Assistant Attorneys James D. Woley - - - - 1 900-1 908 John F. Hagey ----- 1909-1910 Edward E. 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