THE FIRST NATIONAL BANK OF CHICAGO '''"■' ."■ .^ •• -tl*"! iria isa J^ »*r «-_ _ THE NEW BUILDING As projected, from arcbitect's drawings. THE HISTORY OF THE FIRST NATIONAL BANK OF CHICAGO PRECEDED BY SOME ACCOUNT OF EARLY BANKING IN THE UNITED STATES, ESPECIALLY IN THE WEST AND AT CHICAGO Issued upon the occasion of the expiration of its Second Charter, HENRY C. MORRIS UNDER THE AUTHORITY OF THE PRESIDENT AND THE BOARD OF DIRECTORS CHICAGO R. R. DONNELLEY & SONS COMPANY 1902 Copyright, 1902 By henry c. morris OFFICERS OF THE FIRST NATIONAL BANK OF CHICAGO President: james b. forgan Vice-Presidents : david r. forgan george d. boulton howard h. hitchcock Cashier : richard j. street Assistant Cashiers : holmes hoge august blum edward dickinson frank e. brown CHARLES N. GILLETT Auditor : FRANK O. WETMORE FOREIGN EXCHANGE DEPARTMENT Manager: Assistant Manager JOHN E. GARDIN MAX MAY BOND DEPARTMENT Manager : EMILE K. BOISOT Attorney : ORVILLE PECKHAM Directors SAMUEL W. ALLERTON JOHN H. BARKER ADOLPHUS C. BARTLETT GEORGE D. BOULTON WILLIAM L. BROWN D. MARK CUMMINGS DAVID R. FORGAN JAMES B. FORGAN Assistant Attorney JAMES D. WOLEY ELBRIDGE G. KEITH SAMUEL M. NICKERSON EUGENE S. PIKE NORMAN B. REAM GEORGE T. SMITH JOHN A. SPOOR WILLIAM J. WATSON OTTO YOUNG 20030G4 PREFACE The purpose of this volume is more comprehensive than at first glance may perhaps be apparent. The story of any institution, organized under the provi- sions of general legislation, must necessarily be com- paratively uneventful. All national banks, created and performing their functions by virtue of the same act, naturally have a striking family resemblance; still in many features they may be differentiated. The larger corporations of the cities, on account of the volume of their business and the influence which they recip- rocally exert upon the communities in which they exist, form a distinct class. Of them, again, a group, claiming the greatest financial, commercial, and indus- trial centers of the country as their domicile, merit special notice. Their welfare is closely identified with the prosperity of the nation; their progress measures the development of its material resources, and every disturbance in their constitution is felt throughout the entire economic fabric of the land. As one of the most important among these leaders, the First National Bank of Chicago has achieved universal recognition. Not only the magnitude of its transactions, but like- wise its uniform success, and the uniqueness of many of the details of its management, distinguish it as a model product of the National Banking Act. As a typi- vii viii Preface cal illustration of the results effected by the activities of modern finance it is noteworthy. In this aspect especially, its history can be studied with admiration and profit ; its record will always stand as a substan- tial monument to the wisdom, prudence, and good common sense of the men who have directed its inter- nal economy ; its career will also ever be remarkable as that of the sturdy champion of the highest ideals, and the constant promoter of the best methods in the science of banking. The national banking system itself is the conse- quence of long and strenuous efforts on the part of the most experienced financiers of past generations. The struggle to secure honesty, efificiency, and per- manency in the banking institutions of the United States has been arduous; the phases of the contest have been as numerous as varied. The growth of sound economic views in this country from the germs of their origin is of peculiar interest. To sketch this development briefly in connection with the narrative of one of the most influential factors in the financial body of the nation, it is believed, will not be without value; it should prove an inspiration to the mainte- nance, improvement, and evolution of the existing pro- visions of law. With these views this volume has been prepared. To the reader many inferences may be suggested ; some few deductions which it is thought will naturally be drawn alone are presented. The most evident Preface ix effect of the lengthy endeavor to solve the banking problem is the slow but regular movement toward a uniform system. The tendency in financial, not less than in political, affairs in the United States has been toward centralization, without at the same time the sacrifice of individuality; the concentration of the responsibility in the hands of a few ; the unification of the interests of different sections of the land and of all classes. With this amalgamation of industrial and commercial enterprise the banking power of the coun- try has been obliged to keep pace ; and with this pro- gress additional strength has been achieved. From institutions adequate to the needs of the state and of the nation there has been a steady advance, until now there is not lacking desire nor ability to serve the wants of other poorer peoples, and to engage in pro- jects of world-wide scope. Another improvement of not less vital concern to the domestic economy of the community is the sepa- ration of banking and politics. The old-time existing opinion that the one was coincident with the other has been dissipated. The early discussions of finance not only in America, but elsewhere, were largely sub- ject to the bias of partisanship. That faction which controlled the forces of the national bank, as it then was organized, had a strong advantage in every cam- paign. The debates in 1 862-64, ^t the time of the adop- tion of the National Banking Act, reveal the prevail- ing fear that a vast political engine was being planned; X Preface that the Comptroller of the Currency would become the most powerful officer in the country, and that he would prostitute his position to political ends. How groundless these misgivings were, the subsequent his- tory of nearly forty years has shown. The divorce between banking and politics is complete. The inauguration of the national system was only the first step in the introduction of safe and sound economic theories. Uniformity in banking has inevi- tably been a lesson of prime importance to the people. Slowly and almost unconsciously they have been taught that honesty in monetary legislation and abso- lute protection against the schemes and projects of unscrupulous speculators are the foundation-stones of material prosperity ; starting from these principles, and steadily erecting the superstructure in the same spirit, they have, under these influences, won the respect and admiration of rival powers. In this brief outline it is, of course, only possible to present the slightest sketch of these developments. For the general historical portion of the work the author is indebted for the requisite data to many standard treatises; for the story of the First National Bank itself, he has, through the kindness of the ofifi- cers, had access to the original records; while finally, the material for the biographies has been mostly sup- plied him at first hand. To the representatives of the bank, and to all others who have aided in the Preface xi preparation of the book, for their manifold courtesies, encouragement, and help, he desires to tender his sin- cere thanks. May this little volume serve some good end in the domain of which its subject forms a part ! Henry C. Morris. Chicago, June i, 1902. CONTENTS PART I GENERAL BANKING HISTORY CHAPTER PAGE I. Early Banking in the United States - - 3 II. Western Banking under State Laws - - 19 III. The Inception of Chicago Banking - - - 26 IV. The National Banking Act - . . . 36 PART II HISTORY OF THE BANK V. History of the First National Bank under its First Charter (1863-1882) ... - 49 VI. History of the First National Bank under ITS Second Charter (1882-1902) - - - 76 PART III VII. The Union National Bank 107 PART IV VIII. The Metropolitan National Bank - - 117 PART V IX. The New Bank Building 125 PART VI Biographical 133 Contents PART VII APPENDICES CHAPTER PAGE 1. List of Members of the Board of Directors (1863-1902) 193 2. List of Officers Since 1863 194 3. Statement Showing Dividends Declared - - 196 4. Statements of Condition as Shown by Reports TO THE Comptroller of Currency, 1863-1902 - 199 ILLUSTRATIONS Opposite Page I. The New Building - - - Frontispiece As projected, from architect's drawings. II. Edmund Aiken 49 The First President. III. The First Building - - 54 Southwest Corner La Salle and Lake Streets. IV. Samuel M. Nickerson - 61 The Second President. V. The Second Building, as It Originally Appeared 62 Southwest Corner State and Washington Streets. VI. The Ruins after the Great Fire - - - 66 VII. The Third Building, Now Occupied - - - 72 Northwest Corner Dearborn and Monroe Streets. VIII. Lyman J. Gage .--.-.. 76 The Third President. IX. James B. Forgan 85 The Fourth President. X. Pyramid Showing at Different Dates the Rel- ative Proportions of the Principal Items Reported by the First National Bank of Chicago, 1863-1902 104 XI. Chart Showing the Growth of the First Na- tional Bank of Chicago, 1863-1902 - - - 104 XII, Plan of Organization and Business Adminis- tration OF the First National Bank of Chicago ----- At end of Volume HISTORICAL CHAPTER I EARLY BANKING IN THE UNITED STATES The financial condition of a state is the most trust- worthy standard by which to measure national strength. Empires raised to the zenith of glory by military prowess or political intrigue have in every age col- lapsed like bubbles of air, whenever the achievement of soldier or statesman was not based upon a reason- able consideration of the economic resources of the people. Carthage in antiquity and Venice in the Middle Ages were again and again hindered in their course of development for want of the "sinews of war." Charles V., in Germany, and Napoleon I., in Russia, were doomed to meet defeat in their cherished plans — the one to overthrow Protestantism, the other to sit on the throne of the czars — because of their inability to collect the vast sums requisite for the accomplishment of these purposes. If the story of mankind, whether state or individual, be examined in detail, it will be found that the power to succeed has been generally dependent upon the ability to create a revenue. With ample wealth and good credit the destiny of a land is assured. In the ultimate quantity and value of its resources the United States is peculiarly fortunate. Hardly had the first colonists landed on these shores when 3 4 The First National Bank of Chicago they recognized that the fertility of the soil was their chief material blessing. The tobacco of Virginia and the wheat of Massachusetts, the wool of Pennsylvania and the fur skins of New York, soon confirmed the anticipations of the earliest settlers. Little by little, as the provinces spread to the westward, other pro- ducts were added to the list. Manufactures sprang up in spite of the Navigation Act, and the other sump- tuary legislation of Parliament; agriculture and trade flourished. Then came the Revolution, with the tem- porary disarrangement of business, and the utter destruction of many vested rights. Upon the resto- ration of peace, the expansion of the states was rapid; the increase of their wealth was scarcely less. The energy of a newly won freedom carried the flag within a few decades beyond the Alleghanies to the Missis- sippi, across the plains, and over the Rockies, until the golden shores of the Pacific were reached; when, as if for the plunge into the sea of mystery, a halt of many years ensued; and then, with the stride of a Colossus, the Republic, placing one foot on Hav/aii, planted the other in the midst of the Philippine Archi- pelago at the gateway to the Orient. Every advance has meant not solely territorial aggrandizement, in the single sense of conquest, but indeed vastly more in the enormous accession which in each instance has accrued to the material resources of the nation. And still there have been many struggles. In this career of progress there have often intervened obstacles, Early Banking in the United States 5 crises, bankruptcies, disasters, wars. Had the bounti- ful stores of nature in themselves been sufficient, the Colonies would have been by far more prosperous; the cause of long-continued grievances would have been lacking; loyalty to the crown of Great Britain would perhaps have prevailed ; the Revolution might not have been fought. If, by some chance, the United States had arisen, the great conflicts over the consti- tution, the shipping bill, the national bank, the slavery question, and the silver issue would have been un- known. The adjustment of legislation by which the production and management of these riches should be guaranteed was to be a work of centuries scarcely yet achieved. Two prerequisites to the prosperity and perma- nence of American institutions were essential: a sound currency and a well-organized system of banking were necessary. In a sense distinct problems to be solved, in the broader view progress in the one implies a for- ward movement in the other; while not until both these ends shall have been accomplished can the fiscal interests of a state be said to be properly conserved. From the wampum of New England and the tobacco money of Virginia to the present currency of the United States, founded upon the gold standard, is a far cry. From the first attempt to establish a bank in the province of Massachusetts, in 1686, to the pre- vailing national banking system, the span is quite as great. Nevertheless, throughout the history of the 6 The First National Bank of Chicago nation, certain pre-eminent problems have presented themselves for solution. The tendency has con- stantly been toward improvement ; if indeed, in many details, perfection has not yet been attained, it may still be confidently asserted that a wonderful advance has been made. The one perpetual struggle on the part of financiers has been inevitably directed against the depreciation of the currency. Money in itself is merely a relative term, a measure convenient to have, as a standard by which to estimate the value of labor and merchandise. Its one essential characteristic is invariability. If the common denominator fluctuates, uncertainty in the other factors of commercial calculations must ensue. Therefore every nation has, for the sake of self-preser- vation, been obliged to decide upon some method of maintaining its currency at one fixed, unalterable level. Not only prosperity at home but credit and prestige abroad depend upon it. A substantial monetary basis means self-satisfaction, respect, honor, and power. One of the striking features of colonial days was the variety of the circulating medium. In Virginia tobacco, wheat, peas, Indian corn, barley, oats, and silk competed with gold and silver; in Massachusetts wam- pumage held the field almost clear to itself. In both sections currency legislation was the preoccupation of local statesmen. The heterogeneous articles of trade, which from time to time were raised to the dignity of "legal tender," invariably showed a propensity to Early Banking in the United States 7 decline in value. In 1619 the General Assembly of Virginia first fixed the rate at which tobacco should pass current, but in 1633, in 1642, in 1655, in 1666, in 1727, in 1730, and in 1755 other legislation was enacted with a view to hold it in circulation. Tobacco, and the certificates issued in its name, constantly depreciated, and even the partial destruction of stocks and the enforced suspension of planting failed to effect a cure. Conditions in Maryland were similar, and those in New England and the other provinces not materially different. Bills of credit were issued by Massachusetts as early as 1690. The colonial assemblies outvied each other in debasing the currency; again and again Parliament interfered, and the struggle was bitter. Statutes, governors, and prohibitive decrees were generally ineffectual. The bills issued were practically without security, and amounted to an enormous volume. Rhode Island alone counted them to the value of ;^400,ooo. In every instance depreciation and repu- diation ensued. The measures to keep this paper afloat were varied and often farcical. Nothing could stay its downward course. One of the principal grievances cherished by the colonists — generally, how- ever, overlooked — was the steady determination of the mother country not to countenance or approve such speculation. At first, with a scarcity of the precious metals, the difficulty was inherent, and no mere arti- ficial act of man could banish it. During the first half 8 The First National Bank of Chicago of the eighteenth century, gold and silver became sufficiently plentiful to form the basis of a currency, but even then the colonial legislatures resolutely opposed any improvement in its quality. The Continental Congress was bafifled by the same problem; $242,000,000 of paper was issued in 1779; in 178 1 it was worthless. Various remedies were sug- gested and tried without avail. The success of the Revolution itself was jeopardized, for salaries could not be paid, and soldiers were in open mutiny. After the close of hostilities, relief was very slowly accorded ; for many years confusion prevailed. Some gold, more silver, and much paper thenceforth consti- tuted the circulating medium of the new republic. Continental bills, pieces of eight, Spanish dollars, provincial shillings of various values, British six- pences, French napoleons, Dutch florins, and German thalers, together with a miscellaneous assortment of "shin plasters," "wild cat" issues, "stump tails," and greenbacks, were in active circulation or succeeded each other. Every merchant was obliged to keep at hand a printed table showing the current value of each of these beautiful representatives of the precious metals. Meanwhile Congress spasmodically applied itself to the task of bringing order out of chaos. In 1792, at the suggestion of Hamilton, the double standard of gold and silver, at the ratio of one to fifteen was approved. Before 18 17 gold had disappeared from circulation. Early Banking in the United States 9 In 1834 a combination of causes — the desire to draw gold from Europe, the influence of southern gold miners, and the false notion that the silver standard was identified with the interests of the United States Bank — led to the passage of the Gold Act. At the ratio of one to sixteen the double standard was fic- titiously preserved on the statute book, while rejected in actual usage. Thenceforth the ultimate adoption of the gold standard by congressional enactment was a mere matter of form. The measure of 1873 might well have been foreseen ; it placed the stamp of approval upon the work of the previous generation. Had not the Civil War engrossed the attention and energy of the nation, the recognition of prevailing conditions would have undoubtedly been accorded at an earlier day. The story of banking in the Colonies can be told in a few lines. Primarily the people did not need an extensive system, while the Crown itself was adverse to any such innovation. There is some doubt when the first institution which merits the name of a bank was established. Possibly one existed in Massachusetts in 1686. In 1701 steps were taken in the same province to organize a land bank, but the promoters failed in their project. Again, in 17 14, the plan was revived, and met with great popularity among those owning large estates but having little available cash. Many trades-people who were financially em- barrassed also viewed the proposition with favor. The lo The First National Bank of Chicago scheme was to issue bills not to exceed in amount ^300,000 secured by a pledge of real estate to a simi- lar value and held in trust by the corporation ; loans of paper money at five per cent were to be made upon real property. The backers of the movement claimed that every land-owner ought to have in current funds a sum equivalent to his real holdings. In this manner they proposed to supply a medium of exchange. The Provincial Council, however, declined to pass the requisite enabling act. Once more, in 1739, the plan was resurrected, and business was begun without a charter. By this time the matter had assumed a political phase. The local authorities were now favorably disposed, but the royal governor was obdurate. Numerous civil, military, and judicial officers were interested in the enterprise, and many sacrificed their positions for the sake of remaining associated with the organization. Many institutions in imitation of the original bank were inaugurated. Parliament then intervened and declared their issue of bills illegal. Governor Belcher was nearly mobbed, and as the result of private intrigue, soon removed. The new executive proved friendly, or at least neutral; the General Court of Massachusetts voted remedial legislation, but the outcome was a foregone conclusion. Similar experiments were made at New London, Connecticut, in 1732, and at Charles- ton, South Carolina, in 1775. The notes of these institutions declined so much that in 1748 ^100 in Early Banking in the United States ii coin cost in Massachusetts ;^i, lOO in paper. While in the other colonies the ratio was less, there still was everywhere an enormous depreciation. Every one asso- ciated with the banks was ruined, and the end of the craze rapidly came. The prohibition by Parliament, in 175 I, of the use of legal tender paper money issued by the local treasuries aroused the deepest ire on the part of the colonists, and it may truthfully be said that their devotion to this cause was a potent factor in the movement toward revolution. The experience of the Continental Congress, as lately reviewed, was identical. For a year, perhaps, its notes were maintained at par. Then, encouraged by this apparent success of creating artificial value, the quantity in circulation was materially increased. The usual result ensued. Depreciation set in until, in 1779, twenty paper dollars were required to buy one of silver. Congress then limited the issue and pledged its redemption, but without avail. In spite of every effort the ratio in 1780 fell from forty to seventy-five, when, in the northern provinces, the bills disappeared from use. One year later, when the difference in the South was one thousand to one, they also succumbed there. At least $200,000,000 of this currency thus vanished. Some degree of as- tonishment must be felt when it is realized how often the people have been beguiled by the same phantom. The first bank to be organized after the breach 12 The First National Bank of Chicago with the mother country, sprang from a meeting of patriotic citizens held at the Coffee House in Phila- delphia, on June 7, 1780. This institution, known as the Pennsylvania Bank, and in the establishment of which Robert Morris played an important role, was taken under the patronage of the Continental Con- gress and survived about eighteen months. The two principal movers in the foundation of a national bank were Robert Morris and Alexander Hamilton. As far back as 1763 the former had con- sidered the benefits to be derived from such an enter- prise. In 1779 Hamilton proposed that a bank be incorporated by act of Congress. The Bank of North America, after strenuous opposition, was finally, on December 31, 1781, granted a perpetual charter. On January 7, 1782, its doors were opened for business. From time to time this institution was authorized by the legislature of Pennsylvania until in 1864 it availed itself of the provisions of the National Banking Act. Reference is here made to it because it was the first to be organized in this country on sound financial principles. Its capital was fixed originally at $400,- 000, divided into one thousand shares of $400 each, payable in gold and silver. The board of directors consisted of twelve persons elected by the stockhold- ers. Its notes were declared receivable for all public dues and private debts. Within three years the capi- tal was increased to $2,000,000. As soon as Hamilton became Secretary of the Treasury, under the newly Early Banking in the United States 13 initiated government, he urged the establishment of a national bank. He first thought that the Bank of North America might be adapted and remodeled for this purpose, but its directorate did not apparently manifest any desire to assume the burdens necessarily imposed; hence a bank to be especially constituted was the alternative. Under the inspiration of Hamilton, Congress, in the early days of 1791, approved the creation of the first Bank of the United States. Its capital was $10,000,000, consisting of twenty-five thousand shares of $400 each. The United States subscribed for $2,000,000, the balance of $8,000,000 was offered to the public. A board of directors, composed of twenty- five persons, was charged with the management. The notes were practically limited in their issue to the value of the capital stock; but in fact never more than fifty per cent of this authorized circulation was reached ; they were legal tender for all debts to the United States. The bank might establish as many branches as necessary, but was forbidden to enter into mercan- tile business. The term of the charter was for twenty years, during which time it was agreed that not any rival should be incorporated. Notwithstanding the bitter opposition of Jefferson and the Republicans of that age, the institution flourished. The government, by the sale of its shares, netted a profit of some twenty- eight per cent, and otherwise the pecuniary results were fortunate. 14 The First National Bank of Chicago When the day for the renewal of the charter arrived, the political status was decidedly adverse to the interests of the corporation ; many sincerely regarded it as a menace to the welfare of the repub- lic. The overthrow of Gallatin, the then Secretary of the Treasury, who was favorably disposed, was just at that moment also the aim of a powerful cabal ; the possibilities of the future seem to have been largely identified with his personality. After a furi- ous debate in Congress, those who held the existence of the bank unconstitutional triumphed. Upon a test question the measure for the extension of its privi- leges was defeated in the House by one vote and in the Senate by the casting vote of the Vice-President. Thus, in 1811, the institution went into liquidation. The advocates of state rights had won the first crucial battle. The War of 18 12 followed. The state banks proved unequal to the emergency ; in the crisis the majority suspended. During the next six years the issues of irredeemable paper increased from $28,000,000 to $110,000,000, circulating at a dis- count of fifteen to twenty per cent. The finances of the country fell into a deplorable state. After this brief experience with a fiat currency, the champions of a national bank again took courage. When, in 18 14, Secretary Dallas sent to Congress a recommendation for the establishment of such an insti- tution, the ensuing debate upon the bill showed the chief difference to be in regard to details. There was Early Banking in the United States 15 an overwhelming majority in favor of the main ques- tion. Daniel Webster headed those opposed to the plan suggested by the Treasury Department. Again the result was uncertain. The vote of the Speaker of the House returned the administration bill to the com- mittee for amendment. Mr. Webster's views — dis- tinctly partial to the state banks — were incorporated, and the measure as revised then passed. The Senate approved it, but it met with the veto of the Presi- dent, strangely enough, because he did not consider that the proposed bank would satisfy the exigencies of the government. Finally, in 18 16, after another stormy debate, the act authorizing the second United States Bank was voted and approved. The capital was fixed at $35,- 000,000, of which one-fifth was subscribed by the government. Otherwise the charter was, with one exception, similar to that of the first corporation. The feature which indicated progress was the clause, adopted at the suggestion of Webster, that deposits as well as notes should be payable in specie. The bank opened its doors in April, 18 17. Unfortunately for its reputation a wild speculation in the stock oc- curred. Other scandals and gross mismanagement very nearly precipitated failure before 18 18, when there was difficulty in weathering the general financial crisis. With a radical reorganization, the institution had, nevertheless, within the ensuing ten years, attained such a commanding position as to be regarded practi- i6 The First National Bank of Chicago cally a national necessity. In 1829 Jackson, in his first message to Congress, surprised the country by a proclamation of hostility. Seven years before the ex- piration of the existing charter he invited attention to the feasibility of its renewal. The animosity to banks of every description prevailing throughout the South and the West, strongly seconded by the self-interest of the numerous inflated concerns doing business under state authority, rapidly crystallized. The corporation which had rendered enormous services to the nation, with its notes at par not only throughout the Union but in every country of the world, and with its stock at a premium of forty per cent, at once became the target of all the advocates of free banking and un- limited paper currency. The reason of Jackson's attack on the bank, it is believed, was solely politi- cal; his friends hoped by this means to secure control of it. Many others who joined with them were, how- ever, inspired by different motives. Generally in the West and the South the state banks, the centers of furious speculation, had incurred popu- lar hostility; the cause of the United States Bank was, by a misconception, identified Avith and preju- diced by their careers; while they themselves, in the overthrow of the national institution, anticipated the opportunity for redoubled activity on their own part. The issue raised by Jackson was more speedily deter- mined than had been foreseen. After three years of open conflict and silent intrigue between the opposing Early Banking in the United States 17 parties, a bill was passed by Congress, in the summer of 1832, granting an extension of the charter, but it was promptly vetoed. In the presidential election of the same year, when the question was paramount, the people sustained Jackson; the bank and its supporters, irrevocably entangled in the political situation, were overwhelmed. Various illegal strategems were now employed in the struggle for existence. The ire of the President was aroused, and he, in spite of several involuntary delays, accomplished the transfer of the government deposits to the state banks. Rejected by the nation, the United States Bank sought elsewhere to prolong its term of life. On February 18, 1836, a measure was enacted by the legislature of Pennsylvania incorpo- rating it for a period of thirty years, but the institu- tion was destined to a much shorter career. The character of its business was materially altered. Excessive loans made upon worthless bonds and stocks soon caused embarrassment. In 1837, 1838, and finally in 1841, the bank suspended payment. Meanwhile the state banks, with an inflation of their notes from $61,000,000 to $149,000,000, embarked upon a brief era of wild speculation. On May 10, 1837, there was an almost general suspension. After various experiments the circulation was, in 1843, reduced to $58,000,000; thenceforward for nearly a quarter of a century the regulation of banking was confided to the states, with a variety of results. The i8 The First National Bank of Chicago government, for the most part, protected its own wel- fare by the independent treasury system, but the people were subject to the whims of local legislators. While the two national banks had proved of service to the country, they were, as monopolies patterned after European models, undoubtedly ill-suited to the genius of a free people. Moreover, they had demon- strated their inability to avoid politics. The last bank had come to be viewed as a strong power in opposition to the administration, and as such — more than because of any inherent diversity of financial opinion — had been crushed. All attempts to re-estab- lish a United States Bank failed. On the contrary, the reaction carried the pendulum to the other ex- treme of state supervision. The interval of transition prior to the adoption of the national banking system was inevitably long. CHAPTER II WESTERN BANKING UNDER STATE LAWS To make any broad and equally reliable assertions about the state banks of the days prior to the Civil War would be exceedingly difficult; to compare their management and conduct with those of the present generation — if not involving conclusions positively erroneous — would at least be misleading, for the wise revision of banking laws, and their more rigid enforce- ment, have raised these institutions to a position of usefulness not inferior to the level attained by those under national supervision. The prevailing impression of the effect of the state banking system upon the interests of the people in earlier days is apt rather to be biased by the remem- brance of exceptional phenomena than to be governed by the actual record of events. Dwelling upon the darker side of the picture, reviewing in memory the defects, the losses, the scandals, and the disasters due to wild speculators and more dishonest rascals, a high degree of impartiality and a deep insight into history are essential to recognize the far-reaching and endur- ing services rendered by the many admirably conducted establishments which were scattered here and there throughout the land. Some were located in the states — then more properly than now known as the 19 20 The First National Bank of Chicago West — and have left behind them a reputation, bril- liant when compared with that of the greater number of their local contemporaries; but for the large majority of the more honorable institutions, the cen- ter of activity was in the East. Massachusetts, with its Suffolk Bank system of redemption; New York, with its chartered banks, the Safety Fund Law of 1829, and its well-constructed free banking legislation, together with Maryland and New Jersey, are distin- guished for the high degree of perfection to which they carried the methods and management of banking. Of the states beyond the Alleghanies, Ohio holds the first rank; in the study of the sources to which the provisions of the National Banking Act can be traced, its legislation is second in importance only to that of New York, a fact undoubtedly attributable to the per- sonal environment of Secretary Chase. As a notable exception to the general rule, the State Bank of Indi- ana, chartered in 1834, likewise deserves special men- tion. Until its voluntary liquidation, in 1866, it never closed its doors a single day. The net earnings to the state alone on its investment of $800,000 — represent- ing one-half of the capital stock — amounted in twenty- five years to $3,500,000. The legislation of Michigan first gave practical form to the doctrine destined to become the fundamental principle of the National Banking Act, that every bank should place in the possession of a duly designated authority sufficient collateral for the payment of its outstanding notes — Western Banking under State Laws 21 which, however, in application, unfortunately proved defective. The state banks, in the details of their organiza- tion, were of various distinct types. Some were especially and individually chartered ; others were established under the authority of general law in their respective localities. The latter system usually resulted in free banking. The one method commonly succeeded the other in usage, the tendency being more and more toward the abolition of special privi- leges, and the extension of equal rights to those who desired to engage in the business. Again, in certain cases, the entire capital was supplied by the state, and the management was under its immediate direction ; in others, and more ordinarily, the stock was held partly by the commonwealth and partly by individu- als, while there was a joint control. Of course, the great majority of institutions were exclusively in the hands of private persons. Not any final conclusion can be reached as to which form or style was the most successful or even the more commendable. Experi- ence was not by any means uniform or decisive. In some sections prosperity seems to have been the rule, whatever may have been the theory; elsewhere failure and disaster customarily ensued. Laws, which in one state worked admirably, in another, whether by the laxity of their administration or by the perversity of human nature, utterly failed. Even in adjoining com- munities, nay, almost in the same city, the effects 22 The First National Bank of Chicago were different. The personal character of the mana- gers and the popular sentiment of their environment were primarily the factors which determined the issue. Thus it happened that in the East and some parts of the South, with conservative and honest procedure, banking flourished, and was in good repute; while throughout the West — with rare exceptions — where the disposition to speculation and fraudulent practices prevailed, a vast amount of suffering and scandal occurred, involving the business in dishonor, and evok- ing at times the rage of popular condemnation. As illustrative of the extent to which this feeling was carried, the laws of Wisconsin and Iowa may be cited. In the former the territorial convention approved "an act to restrain unauthorized banking"; in the consti- tution of the latter provision was made for "all other corporations except those with banking privileges, the creation of which is prohibited" ; and again, the exer- cise of "the privileges of banking or creating paper to circulate as money" was forbidden under the penalty of one year in the county jail and $i,ooo fine for each offense. The phantom of limitless wealth to be realized by the issue of a fiat currency was the delusion which ensnared many embryonic financiers; some perhaps were conscientious in their intentions to redeem their notes, but of these the majority, finding the task more difficult than they had anticipated, failed; while others, from the very beginning, were eager to amass fortunes Western Banking under State Laws 23 by any means at the expense of the public. Inci- dentally the conditions were favorable. Theoretically, with the downfall of the United States Bank, the idea had triumphed that the issue of bills by an institution chartered by a state was perfectly legitimate. In the East this was the chief consideration, but in the West other motives also intervened. Practically — and in- deed a feature by far more important — the opportunity and the demand here existed. Beyond the Allegha- nies there was in early days a dearth of a circulating medium. As in the original colonies during the seventeenth century and later, the lack of any com- mon standard of exchange was felt. The populace also was of that sentiment which, strangely, and uni- versally in ruder communities, regards any article bear- ing an impress of value as good and sound currency. For some reason — perhaps unfamiliarity with them — the precious metals were not then viewed with that respect which the inhabitants of older and better organized regions accord them. The field at first was open and free to all comers. For a few years, so long as the issue of bills could be absorbed in the channels of trade, and those who were responsible for them were in a position to redeem them when required, the day of reckoning was postponed. Gradually this very prosperity attracted less scrupulous men, who assumed obligations far beyond the strength of their credit or means; various dishonest schemes were elaborated; sudden crises surprised the most sanguine, and a great 24 The First National Bank of Chicago number fell. The people at length were aroused from their Utopian dreams. Scarcely any escaped loss, and many succumbed to ruin. The revulsion of opinion was rapid and decided. All banks of issue were con- founded in the public mind ; those which by extraor- dinary skill and upright conduct had withstood the worst stage of financial distress, now faced a stub- bornly prevailing hostility. The effect of these experi- ences is apparent in the adverse tendency of legislation toward the end of this period. Another obstacle to the permanent success of those banks, in the management of which the state partially or exclusively participated, was the danger of political complications. The feature, so manifest in the career of the United States Banks, was, on a limited scale, present in almost every institution of this class. In some instances, as for example, in Illinois, the bank became an issue in local campaigns, and was irrevo- cably ensnared in the meshes of the net of passion and prejudice. The defects in the methods inaugurated by the several states were multiple. The career of the banks specially chartered, entirely or partially owned and managed by the incipient commonwealths, was, with the exception in the case of Indiana, ephemeral. Generally a lack of good common sense in the direc- tion of their affairs destined them from the first to speedy dissolution. The system of free banking, which in turn succeeded, to all intents and purposes Western Banking under State Laws 25 manifested, only in an exaggerated form, the faults and errors of its predecessors. Well planned, if the facts taken for granted were true, and if rigorously executed, the laws for its guidance were ordinarily based upon a misconception or false belief, and were exceedingly carelessly administered. In some in- stances, absolute corruption and dishonesty perverted the provisions, intended to safeguard the rights of the people, into instruments of deception and fraud. The endeavor to force the growth of these financial plants by artificial means uniformly resulted in dismal fail- ure. Not merely measures, but wealth, and especially men of experience and prudence were essential. Under the conditions which existed, the disorganiza- tion was complete; in times of peace the situation would have been critical, in days of war it was peril- ous; but still it may well be doubted how long reform might yet have been deferred had not the stress of calamity imperatively demanded the reorganization of individual and national credit. CHAPTER III THE INCEPTION OF CHICAGO BANKING The commercial operations of the people of Chicago prior to 1835 were not of such magnitude as to require the facilities of an organized establishment of credit. Whenever it happened that a trader wanted to make a remittance to the East, he could be accommodated by calling on his fellow-townsman, Gordon S. Hub- bard, who incidentally kept a current account in Buffalo, and whose drafts were always paid. The central point at which many of the highroads leading from beyond the Alleghanies to the Far West con- verged, was, however, on the southern shore of Lake Michigan. The era of speculation in the wild lands of the prairies was also just opening; the lack of a larger volume of the circulating medium was felt. Under the system of banks, as then in vogue, it was natural that the institution legally recognized in Illi- nois should seek to satisfy the demands of the young but rising community. Hence, on December 5, 1835, the press announced that the state bank, which had already been incorporated, had decided to inaugurate a branch at Chicago. Business was begun about ten days subsequently in a building situated at the corner of La Salle and South Water streets. John H. Kinzie was president and W. H. Brown cashier. Among the 26 The Inception of Chicago Banking 27 eight other directors was Gordon S. Hubbard. Any kind of paper received by this concern, and which would circulate in trade, was regarded as good money. Thus bills issued in Wisconsin, Michigan, Indiana, southern Illinois, or elsewhere were passed from hand to hand. The bank was far from a pure blessing; before its entrance into the neighborhood silver coins had been the chief currency, but now almost any old piece of paper bearing the imprint of some known or unknown maker was the only substitute. These worthless bits of parchment drove the metals entirely out of use. In the mean time Chicago grew from a village to a town of 7,580 inhabitants in 1843, when, with the collapse of the principal institution, the local agency, of course, closed its doors. Even before its retirement from the field the quantity of miscellane- ous, heterogeneous scrip and tradesmen's checks for small amounts was utterly inadequate for the needs of the citizens. With its failure, aside from the actual loss suffered, serious embarrassment for want of legitimate financial accommodations might have ensued, had not certain determined individuals already had recourse to transactions which, technically, were illegal. Private firms thenceforth furnished the sole facilities until the passage of the Free Banking Act, in 1851. As early as 1837 a charter had been secured from the Illinois legislature for the Chicago Marine and Fire Insurance Company, a corporation which was at once 28 The First National Bank of Chicago organized with J. S. Breese as president and L. D. Boone as secretary. The statute expressly enjoined the concern from undertaking a banking business and forbade the issue of bills or notes. The promoters of the enterprise nevertheless openly defied and skilfully evaded the letter of the law. Certificates of deposit for all sums left in its hands were given, payable on demand by the insurance company, and speedily found their way into the currents of trade. A man of striking personality just then appeared upon the scene. George Smith, a native of Aberdeen, Scotland, whose name and fame are still well known to the world of finance, had first visited the vicinity of the nascent city of Chicago in 1834-35. Convinced of the opportunity for realizing large profits by invest- ments in real estate, he organized the Scottish Illinois Land and Investment Company, subscribing his own patrimony of some $15,000, and upon his return to Scotland, inducing many influential friends to join him. Considerable money was made, but the panic of 1837 intervening, required the presence of Mr. Smith again in America. Together with several com- patriots he came once more to Chicago. These young men, with the peculiar shrewdness and innate sagacity of their race, eagerly watched the proceedings of the new venture launched by Messrs. Breese, Boone, and their associates. In the winter of 1838-39 the Wis- consin legislature, in spite of the explicit provisions of the territorial constitution, was induced to pass a The Inception of Chicago Banking 29 similar act, chartering the Wisconsin Fire and Marine Insurance Company, with a capital stock of $225,000, one-half of which was subscribed by George Smith, Alexander Mitchell, and the firm of Scotchmen of Strachan & Scott, while the other half was floated in Scotland. The headquarters were technically at Mil- waukee, but Strachan & Scott became the agents at Chicago, and here the greater number of transactions took place. Authority was granted to conduct a general insurance business, "to receive money on deposit and to loan it on satisfactory security, and to invest such capital as it may have in the purchase of public or other stock or in any other moneyed tran- sactions or operations for the sole benefit of the com- pany, but nothing contained in this section shall give the company banking privileges." Any participation in mercantile business was forbidden, and it was pro- vided that the company must, by its own indorsement, guarantee the notes of any other concerns which it might put into circulation. Smith's chief assistant in this enterprise was his young compatriot, Alexander Mitchell, who came out especially from Scotland. Smith was president and Mitchell secretary of the new corporation. Subsequently the firm of George Smith & Company was created, and at their Chicago office all certificates were redeemable. As it happened, the moment was propitious. The panic of 1837, which had closed many financial estab- lishments, had also left the West without a sufficient 30 The First National Bank of Chicago circulating medium. Both Smith and Mitchell enjoyed an unblemished reputation ; so when they began, not- withstanding the law and their charter, to issue "cer- tificates of deposit," so-called, these latter at once attained great popularity. Smith was a thoroughly equipped banker and a scrupulously honest man. The maintenance of the credit of his institution was the principal object always held in view. After a bitter struggle with the decadent state banks his paper was forced into general circulation, and of the entire amount, $1,470,000 issued, every bill presented at the counters of the various agencies which existed in the western states was redeemed at par. This record is unparalleled by that of any other institution doing business in Illinois in those early days. Absolute confidence was inspired in the people; and under such auspicious conditions the corporation flourished and its founders amassed wealth. The flagrant violation of the terms of the charter aroused the ire of the Wis- consin legislature, and finally, in 1846, it was by resolution declared forfeited, but this action created scarcely a ripple in the business of the company. Its repeatedly proven ability to weather financial crises had obtained for its certificates a widespread circulation, and the stringent necessity of the times caused its opponents to hesitate. In 1852, after the passage of the general statute, an attempt was made to impose special limitations upon Smith and his associates. The effort then failed, but the legislature again soon The Inception of Chicago Banking 31 interfered by an act which declared certificates of deposit illegal and prohibited their use. The antici- pated effects of this movement were, however, thwarted. The insurance company was forthwith, in 1853, reorganized, by Alexander Mitchell, under Wis- consin law, as a bank; and the Bank of America came into existence in Illinois. Smith then Avent to Georgia, bought two banks, consolidated them, and commenced to manufacture notes. This paper was sent in large quantities to the Northwest ; relying upon the credit of its maker, the people commonly accepted it; it became extensively current, and was always redeemed. But by 1855 it was evident that the West had enough cur- rency, and the frequent embarrassment of being obliged to refund these issues soon led to the abandonment of the speculation. Smith finally seems to have been satisfied with his success, and after withdrawing, in 1857, from active participation in these enterprises, returned to Great Britain, in i860, with $10,000,000. In 1900 he died at London, a bachelor, aged ninety- one years, and leaving an estate valued at $50,000,000. He was a notable figure in both hemispheres. Alex- ander Mitchell, who succeeded him in his banking operations, gradually restricted his energies to the state of Wisconsin. While "Smith's Bank," as it was popularly called, enjoyed such a large share of public esteem, there were still several other houses endeavoring to compete with it. Among them, in 1844-50, Murray & Brand, 32 The First National Bank of Chicago later Alexander Brand & Company ; Newberry & Burch, subsequently I. H. Burch & Company; Elijah Swift; Griffin & Vincent; R. K. Swift; J. Coe Clarke; Curtis & Tinkham; D. C. Eddy; the Mississippi Marine and Fire Insurance Company; and the Agency of the Farmers' and Mechanics' Bank, might be men- tioned. In 185 I, after the passage of the Free Banking Act, most of these firms had disappeared. Those which survived, besides George Smith & Company, were Brand & Company, I. H. Burch, Jones & Patrick, Tucker, Bronson & Company, and R. K. Swift. During the decade between 1850 and i860 Chicago increased its population from 30,000 to 120,000 inhabi- tants. The rapidly growing financial and commercial interests of the city exacted a commensurate expan- sion of banking facilities. The adoption of general legislation in 1851, under which private bankers might legally conduct their business, marked the opening of a new era in the economic development of the com- munity. The Marine Bank had the distinction of being the first institution thus incorporated in Chicago, having perfected its organization on January 13, 1852 ; J. Young Scammon, who had been at the head of the Chicago Marine and Fire Insurance Company, which this bank succeeded, was elected president, and Edward I. Tinkham cashier. Its capital, originally fixed at $50,000, was in May, 1852, augmented to $550,000, and its issue of bills was $99,000. Within the year The Inception of Chicago Banking ^3 the Merchants' and Mechanics' Bank (Boone & Bron- son) ; the Chicago Bank (Burch & Company) ; the Commercial Bank (the Southwestern Plank Road Company) ; the Chicago City Bank (Bradley & Curtis) ; the Union Bank (Forrest Bros. &Co.); the Bank of America (George Smith & Co.); the Bank of Com- merce (Davidson & McCalla); the Farmers' Bank (Chase Bros. & Co.); the Exchange Bank (H. A. Tucker); and the Bank of Chicago (Seth Paine & Co.) came into existence. In spite of the strenuous efforts of many of these concerns to conform strictly to the law, Smith's certificates of deposit were still current; so that in the end his competitors were obliged to hit upon the expedient of meeting him on his own ground by likewise issuing similar acknowledgments of in- debtedness alongside of their regularly authorized notes. While all endeavors to drive Smith out of the field failed, the other banks, by recourse to this prac- tice, naturally strengthened their foothold. Among all the early financial undertakings of Chi- cago, that of Seth Paine, who proposed to manage his affairs on Christian and moral principles, deserves special notice. After a short and ephemeral career, his establishment was closed by the courts, while its owner sought more favorable fields for the exercise of his philosophy. The so-called "Bank War" ensued, when the legally incorporated associations united in an attack on the violators of the law. Several individuals were 34 The First National Bank of Chicago indicted, but without avail, and appeal was made to the legislature for redress. In the spring of 1853 the act which rendered independent banking to all intents and purposes a crime was passed, and the contest thus decided. Then the competition among the char- tered institutions became more and more severe in the attempt to force the weaker concerns to the wall. The panic of 1857 brought misfortune to many aspiring banks; some yielded to urgent necessity; others voluntarily went into liquidation ; but only a few survived. Eastern exchange rose first to ten and then to fifteen per cent. The circulating medium correspondingly declined in value, and further became more mixed and unstable in character. The Bank Note Reporter was at every man's elbow. In i860 the Chicago establishments, like all others throughout the West, saw their deposits in the hands of the public authorities to secure their issue of notes suddenly suffer an enormous depreciation. The southern banks, upon which so many relied, continued to fail, and the auditor was constantly calling for additional collateral. The volume of outstanding notes was immense; and even had it been feasible, it was in fact almost impos- sible to retire them. Embarrassment and confusion in all lines of business inevitably occurred. The action of the legislature, in 1861, prohibiting the acceptance by the auditor of bonds other than those of the United States or of Illinois was the final stroke to the career of most of the local institutions. The majority closed The Inception of Chicago Banking 25 their doors and few were reorganized. Some strug- gled with destiny for two or three years longer, until the National Banking Act drove them out of existence as creatures of the state. The banks of Chicago suffered the same fate as all the others of the West, which were the product of laws, perhaps theoretically well designed, but practi- cally founded upon false conceptions, and in execution loosely enforced. The great primary fact to be observed in connection with their downfall is the loss of credit by the southern states. So long as the securities of the latter were sound and at par, this method of banking had a reasonably reliable basis. With the outbreak of war, and the fall in such holdings, the banks lost, as it were, their original capital, and were infallibly obliged to suspend. Therefore, it may be truthfully said that the Rebellion wrecked them, and in consequence imposed throughout this section widespread financial losses and hardships. In the end, however, it was to be the occasion for the radical remodeling of the entire banking system of the coun- try, which, thenceforth, established upon solid and substantial principles, was to be subjected to national control. CHAPTER IV THE NATIONAL BANKING ACT The development of the banking system of the United States is an excellent illustration of the recip- rocal effects which political and financial conditions exert upon one another: it is also a strong proof of the capability of the American people so to mold institutions, however disparaged they may at one time have been, that they shall ultimately be for the welfare of the nation. To meet the exigencies of civil strife without any extension of the resources of the govern- ment was from the outbreak of hostilities believed to be impossible; hence the Secretary of the Treasury, Hon. Salmon P. Chase, appealed to Congress at the December session of 1861 to afford relief. The suggestions then made, although they failed to win immediate approval, in fact served as the framework of the law which was passed some fifteen months sub- sequently. The National Banking Act was therefore an incident to the war; whether or not it would in any case have been elaborated may be a legitimate question. Scarcely any one who realizes the situation as existing just prior to this period can doubt that some national method of control would sooner or later have been inaugurated. Strangely enough the pri- mary purpose, which was contemplated by the pro- 36 The National Banking Act 37 meters of the plan, was not achieved, for the conflict was at an end before the material aid rendered to the treasury by the newly adopted methods was appre- ciable. With the termination of the crisis which occa- sioned the passage of the act, it might have been sur- mised that the feeling of distrust, which had often frustrated the introduction of any similar project, would again prevail. Such, fortunately, was not the case. Opportunity was not lacking to observe the advantages of the system over those locally in vigor within the diiTerent states. The fundamental prin- ciples involved were deemed by the large majority to be correct; practically also the results were favorable, so that for the most part acceptable, it only remained to modify and improve, as experience gradually dic- tated. Under the stress of urgent necessity a cen- tralization of the economic interests of the land, equally as important for progress as that of political adminis- tration, had been accomplished. The war furnished the immediate momentum, but the contemporaneous de- velopment of natural forces, such as the increasing com- munity of affairs and the rapidity and multiplicity of intercourse, would undoubtedly not have permitted the indescribable chaos of state banking very long to have subsisted. The influence of events inexorably tended to some solution more or less analogous to that which actually occurred. How the older methods of local supervision, unreinforced by national legislation, would 38 The First National Bank of Chicago have sufficed or proved adequate to the commercial and financial requirements of to-day is well nigh incon- ceivable. The problem must at some time have been met and answered. Extraneous circumstances may have hastened its determination ; the men of the six- ties who grappled with it, through their wisdom bequeathed to posterity, as the issue has shown, a country not only reunited but likewise endowed with the sinews of intrinsic strength. For several years preceding the war, owing to a happy conjunction of fortunate conditions at home and abroad, the tendency to an increasing prosperity had been constant. The movement of population toward the West, consequent upon the discovery of gold in California, had been stimulating an active flow of money and merchandise across the continent ; while the troubles in Europe were occasioning a heavier demand for supplies of wheat and other provisions. Banking had naturally become an attractive and lucra- tive business. The legislation of the various states, as then in force, with all its diversity and many defects, was in theory drafted on reasonably wise lines; in execution there were flaws, but with time and experi- ence they might have been obviated. There was, however, one vital spot where weakness existed, which under a certain contingency, might prove fatal. When this emergency in fact arose, the inevitable collapse necessarily followed. The secession of the commonwealths, which were The National Banking Act 39 to form the Confederacy, was the death-knell to a large number of banking establishments. In that day the relative share of the South in the commercial trans- actions of the Union was vastly more important than now. Cotton, tobacco, lumber, and other kindred products, constituted the basis of a trade which, in its direct and more remote ramifications, employed a considerable volume of capital, promoted the exten- sion of credit, and involved the regular interchange of other innumerable commodities. As soon as Sumter had fallen, the cessation of this traflfic was felt; depression in all lines of business ensued. Banks in the West failed for want of ready cash; those in the East because of too great quantities in their vaults. The securities upon which the west- ern institutions had based their issues of notes rapidly depreciated ; they found themselves unable to redeem their circulation, and the local examiners closed their doors. Such was the abyss into which the domestic finances of the country were plunged. The needs of the national treasury were even more exigent. The enormous expenditures suddenly im- posed for the equipment of armies and the preparation of fleets startled the people and strained every finan- cial nerve. Congress was granting leave to borrow, while loan after loan was being offered on the market, where only with some difficulty they were placed. At first it was confidently believed that peace would be re-established in three, then in six, nine months, or a 40 The First National Bank of Chicago year, and at length the wisest men knew not when. As the magnitude of the conflict gradually dawned upon the intelligence of those in authority, it became evident that some regular method of procuring the necessary funds must be devised. The credit of the Union must be rescued from the mistrust which was everywhere apparent. Secretary Chase, in his annual report, presented to Congress in December, 1861, proposed two means of relieving the treasury. The issue of United States notes, payable on demand, to replace those emitted by the state banks, which should be retired, was one suggestion ; permission to duly empowered organiza- tions upon certain conditions to put into circulation bills furnished them by the government, their redemp- tion in specie to be guaranteed and regulated by the United States, was the other. Out of the latter idea the legislation now in force was evolved. Let it, nevertheless, not be assumed that the law, even as originally passed by Congress, sprang complete and finished from the brain of any one man. On the contrary, the framework, which financiers might seek to adapt to the needs of the nation, already existed; the fundamental principles had been established by slow growth. From the inauguration of the govern- ment under the Constitution there had been a conflict between the administration at Washington and the local legislatures for the control of the financial inter- ests of the country. The struggle between those who The National Banking Act 41 favored the system of a monopoly, as prevalent for the most part in Europe, and the advocates of abso- lutely unrestricted freedom for banking, was pro- longed. From time to time the balance had swung from one side to the other. Nevertheless some lessons were being steadily taught. With the complexity of monetary operations, and for the common welfare of all sections of the Union, it was manifest the national administration was best fitted to deal. Many adverse to the theory admitted the benefits practically con- ferred by a single institution. On the other hand, those who might have been partial to another United States Bank perceived the advantages of elasticity, as furnished by competition, providing that some super- vision be exercised by a central authority. Experience showed that the honest enforcement of banking laws was quite as important as their skilful preparation. The chief distinction between the concerns of the East and those of the West was that, in the former locality speculators and rogues were effectually debarred by the vigorous attitude of the ofificials, while in the latter the people were regarded as the legitimate prey of scheming and avaricious money-sharks. The idea of a comprehensive system exempt from partisan interest and influence was not yet born. Hence the dif^culty of framing any legislation free of suspicion of some ulterior motive. There was always one candidate and his adherents for, the other against, any proposition which might be brought forward. Purely scientific 42 The First National Bank of Chicago discussion was impracticable. When there was not reason there was fear. With a full recognition of the defects of banking, as then regulated, it seemed for many years futile to attempt to evolve any adequate plan which would meet the exigencies of the world of finance, and still not become the engine of ambitious politicians. The germ thought of the National Banking Act can be traced back to the brain of Alexander Hamil- ton ; he it was who suggested to "bank upon the national debt as the best available capital." Dallas, when Secretary of the Treasury, in 1815, Albert Galla- tin in 1 83 1, and Professor John McVickar, of New York state, about the last-mentioned date, proposed various other measures which they believed needful to inspire public faith in the management of banks. As the Civil War progressed, the embarrassment of the government steadily and vastly augmented. Not- withstanding every effort on the part of the adminis- tration and the co-operation of Congress, the condition of the finances remained serious. Loan after loan was made, far in excess of every anticipation, and still more money was always wanted. The government had been obliged, as the result of its necessities, to overturn many old-established usages. More and more it was forced to disregard all precedents and embark upon new and untried paths. The supreme consideration of self-protection was its only guide. The suggestion of Mr. Chase to issue to banking The National Banking Act 43 institutions notes subject to national control, to be guaranteed by deposits of United States bonds and otherwise, as might be deemed advisable, was not by any means unanimously approved. The state banks, naturally fearing that their privileges might'be consid- erably curtailed, strongly antagonized it. The draft of the proposed act was taken bodily from the laws of those states which appeared to have attained the greatest success under the free banking system, and sections covering the features of the securities to be pledged and the methods of supervision were added. The measure thus prepared was presented to the House on July 11, 1862, by Mr. Hooper of Massa- chusetts. The Ways and Means Committee, to which it was referred, subsequently reported it adversely, and there the matter rested. Meanwhile a legal tender bill was passed, but the Secretary of the Treasury nevertheless continued to insist upon the feasibility of his favorite project, with the view, as he reiterated, of "maintaining the public credit and providing for the public wants," to secure "one sound, uniform circu- lation of equal value throughout the country upon the foundation of national credit combined with private capital." The next step was taken in the Senate. On Janu- ary 26, 1863, Mr. Sherman presented to that body the outline of a National Currency Act. Upon the report of the finance committee a lengthy discussion ensued. On the one hand, the opposition was voiced 44 The First National Bank of Chicago by Senator Collamer of Vermont, who expressed his opinion at length ; on the other, Senator Sherman, a vigorous advocate of the administration, championed the plan. After protracted debate the measure finally passed, on February 12, 1863, by a vote of 23 to 21. When it came up in the House, several ineffectual attempts were made to amend, and dilatory tactics were employed to defeat it, but it was eventually carried, on February 20, 1863, by 78 to 64. With the signature of the President, on February 25, 1863, the National Currency Act, as it was then called, went into operation, Hon. Hugh McCulloch, the first Comptroller of the Currency, in his report of November 28, 1863, pointed out several defects in the law. Beginning on March i, 1864, the subject was again before Con- gress. After a long and acrimonious debate in both Houses, the revised measure was passed and signed by the President on June 3, 1864. Since that date various supplementary projects and amendments have at times engaged the attention of Congress, and little by little this legislation has been modified, extended, and improved.* * Some of the features which have been incorporated or revised in the law, are the provisions for reports at the discretion of the Comptroller, the distribution of the circulation, its increase and decrease, the change of the name of the act to the National Banking Act, the abolition of redemption agencies, the establish- ment of a central bureau for this purpose in the United States Treasury, the methods of examination, the Resumption Act of 1875, the sale of bonds, the over-certification of checks, the measures of 1881, by which the banks were in effect obliged to buy The National Banking Act 45 Without elaborating on this gradual evolution, it may nevertheless be permissible to recall the main fact, how well the national banking system has fulfilled the anticipations of its earliest advocates, and how ill- founded were the fears and misgivings of those who opposed its inauguration or hesitated to accept it. Its initiation in the midst of the din of arms signalized the opening of a new epoch in the economic develop- ment of the nation. With the adoption of this measure, which afforded the banking interests, without favor or prejudice, the opportunity for uni- formity, and extended to them the care and regulation of the national government, the death-knell to the heresies and blunders of the different states Avas sounded. Both the motives and possibilities of that peculiarly unjustified and banefully destructive com- petition among various localities were removed. A single standard of conduct and a code of morals were evolved. To those institutions, which availed them- selves of the privileges of the law, the government affixed the badge of respectability, while to their patrons were pledged its guarantee of good faith, honest dealing, and the highest confidence inspired by integrity. Not only the direct results felt by the additional bonds, the act of 1882 for the extension of the corporate existence of national banks, the deposit of public moneys, and the creation of central reserve cities. An important usage, developed by the banks themselves, is the employment of clearing-house certificates, by which the institutions in many of the large cities have devised a means of mutual aid in periods of financial distress. 46 The First National Bank of Chicago establishment of several thousand national banks were remarkable, but the reform effected in state banking laws themselves must likewise be reckoned almost as important. The capital of the 4,357 national banks in opera- tion on February 25, 1902, was $667,381,231; their surplus, $294,95 1 ,786.67 ; their undivided profits were $154,653,757.79; their total resources, $5,843,048,- 720.14; their total deposits, $3,827,172,326.28; their loans and discounts, $3,128,627,094.44. Notwith- standing the magnitude of these figures, far in excess of any dreamed by those who antagonized the original project, the dire forebodings then expressed have not been justified. On the other hand, every declaration made by its champions has been realized. In the words of Senator Sherman, "A uniform currency has been established; a feeling of nationality has been encouraged ; the credit and faith of the country have been maintained unimpaired." THE FIRST NATIONAL BANK OF CHICAGO / EDMUND AIKEN. CHAPTER V THE FIRST NATIONAL BANK OF CHICAGO First Organization, 1863- 1882 No. 8 The financial conditions existing in Chicago at the outbreak of the Civil War were not in the least flatter- ing. 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 doubt- ful in value. In January, 1861, the legislature passed the act prescribing that only United States and Illinois stocks should be available for deposit with the auditor. While in a few instances the institutions affected were able to comply with this requirement, the result for the most part was the voluntary liquidation of the state organizations. At the end of 1861 the banks doing business under the laws of Illinois, and located at Chicago, were the Marine Bank of Chicago; the Union Bank of Boston (Ruxton & Co., agents); the Grundy County Bank of Morris; the Sycamore Bank of Sycamore; the Pro- ducers' Bank of McLeansboro (H. Doolittle was agent 49 50 The First National Bank of Chicago of the last three named institutions) ; the Treasury Bank of Griggsville (Western Marine and Fire In- surance Co., agents); and Reaper's Bank of Fairfield (Merchants' Savings Loan and Trust Co., agents). About this time the legislature also suggested the charter of an Illinois State Bank, but this proposition, when submitted to popular vote, was rejected by a large majority. The total volume of the notes of all the banks having ofifices at Chicago was slightly less than $150,- 000, a sum utterly insufificient 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 quan- tities of this paper were scattered broadcast. Thus the people suffered, trade was uncertain, and business was prosecuted for the next eighteen months under a cloud of difificulties. Meanwhile the discussion of the proposed National Currency Act was progressing at Washington, and the divergence of opinion, aroused throughout the coun- try by its consideration, was showing that many well-informed financiers were looking forward to an improvement in monetary affairs, should such a meas- ure ever become law. Some of these men resided in Chicago, and during the winter of 1862-63 they fre- quently met and talked over the prospects of the pro- jected legislation. Prominent among them were First Organization, 1863-1882 51 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. Hutchinson, a member of the Board of Trade, and several others. The place of these infor- mal gatherings was usually at the of^ce of Aiken & Norton, in Room i of the old Board of Trade Build- ing on the northeast corner of La Salle and Water streets. Chicago had at this time a population ap- proximating 150,000, and it was evident to those endowed with reasonable foresight that this city was destined, as the years advanced, to a higher and higher degree of prosperity. With such a flattering future it was likewise apparent that the banking facili- ties 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 advan- tage over all competitors. The community had out- grown 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 the men were thoroughly fitted to grasp its possibilities. With the 52 The First National Bank of Chicago passage of 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 full story of the preliminary negotiations cannot now be told, for time has laid its unsparing hand on some who might have recalled many entertaining reminis- cences, while others, who still survive, daily engrossed for well-nigh forty years in the tumult and confusion of the busy, exciting city, cannot more than sketch from clouded recollection the bare outline of events. The first step of which ofificial 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 pre- scribed 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 distrib- uted 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 determined. The directors were fixed at nine, their qualifications to be the ownership of stock equivalent in value to five per cent on the first First Organization, i 863-1 882 53 $100,000, and one per cent upon any increase of capi- tal over such amount. The day set for the election of the first board was May 7, 1863, the members then to be chosen to serve until the second Tuesday in January, 1864, whereupon they should be annually elected. The term for which the association 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: 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 stock- holders again assembled, on May 7, 1863, at the office of Aiken & Norton, and thereupon, apparently with unanimity, elected as directors 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. Subsequently, on May 22d, Messrs. Hutchinson, Howard, and Nickerson were appointed a committee 54 The First National Bank of Chicago 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 McCuUoch, Comptroller of the Currency. The origi- nal intention had been to open the doors of the estab- lishment on June 1st, but some unexpected delays occurred. The Comptroller 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 bank be inaugurated on July I, 1863, in the rooms formerly occupied by Aiken & Norton, which had already been secured for this pur- pose. 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. Nickerson 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 meet- ing Edward E. Braisted was appointed cashier. The Chicago Daily Tribune of June 30, 1863, con- tained the following announcement : n ninnii r s » F '•''WiiW*--"" ^ K k ,1 Mi ii THE FIRST BUILDING OF THE FIRST NATIONAL BANK, Southwest Corner La Salle and Lake Streets. First Organization, 1863-1882 55 " The First National Bank of Chicago goes into operation to- morrow, July 1st, E. Aiken, Esq., President, and E. E. Braisted, late of the Loan & Trust Co., Cashier. The stockholders 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 impor- tant a position, who so thoroughly understands the business of the city. The bank will open at the former ofifice of the president, No. 22 La Salle street, immediately north of Coolbaugh & Co.'s Bank, northwest corner of Lake." From the day of its inauguration the institution was accorded a favorable reception by the people, and during the first three months of its existence, gradu- ally gained strength. The earliest published state- ment of its condition appeared on October i, 1863. At the close of banking hours on the preceding day, September 30th, the situation was: 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 S479.848.98 LIABILITIES Capital stock - 205,000.0c Undivided profits - - 1,759.49 Deposits 273,089.49 $479,848.98 56 The First National Bank of Chicago Although the bank was already buying United States bonds, not any circulating notes had yet been received from the Comptroller of the Currency. How insignificant the foregoing figures — while in themselves, and for that day, of considerable moment — seem, as compared with those contained in any recent report of the same establishment. From such a modest beginning one of the largest financial organizations on the western hemisphere has within forty years devel- oped. The next incident of importance was the election of E. G. Hall, on November 11, 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 president 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 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 circulating notes. The second statement issued, showing the aspect of affairs on December 30, 1863, exhibited steady progress along all lines. It follows: First Organization, i 863-1 882 57 ASSETS Loans and discounts $276,987.53 United States bonds (par value) ... - 176,000.00 Furniture and fixtures 201.62 Cash resources: Due from banks (Eastern exchange) $64,141.73 Checks for clearing house - - 89,303.09 Cash on hand 130,251.32 Due from directors ... 6,000.00 289,696.14 $742,885.29 LIABILITIES Capital stock paid in $300,000.00 Undivided profits 11,699.49 Due United States Treasurer 195,046.72 Deposits 236,139.08 $742,885.29 The totals were thus very nearly $300,000 in excess of those indicated only six months previously. 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 respectively 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 G. D. 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. Allerton - 150 S. B. Roath - - - 30 Henry M. Shepard - - 50 John M. Williams - - 50 Samuel M. Nickerson - 100 A. Hurd - - - 50 Horace M. Singer - - 100 58 The First National Bank of Chicago 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. Bronson, John B. Sherman, and E. G. Hall had been duly elected for the ensuing year. The board immediately met and chose its former offi- cers to succeed themselves. As suggestive of the conservative views which then prevailed 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 indi- vidual or firm to exceed $50,000 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 prosperous basis. The men who had brought it into existence were naturally desirous of realizing some direct return for their pains. Nor were they disap- pointed, for 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 hundred 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 afterward it was determined to increase the volume of the circulating notes, as soon as practicable, to $400,000. First Organization, 1863-1882 59 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. Again, on Novem- ber 15, 1864, another 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 relin- quished for allotment to new stockholders. Those who subscribed, and the respective shares awarded them, were: Richards, Crumbaugh & Tillinghast - - $1,000 Shaw - - - - SS.ooo John McPherson 8,000 Grey, Marshall & Co, 8,000 J. S. Sharp & Co. - - 8,000 William B. Keen - 5,000 Martin Ryerson 5,000 W.H.Crosby - 5,000 S. I. Glover - - 5,000 Webster & Baxter 5,000 C.L. Wilson & Co. - 5,000 L. Barbour & Calvin Fox & Howard - 5,000 Day 5,000 Freeman, Burt & Co. 5,000 D. E. Crane - 5,000 Alonzo Richmond - 3,000 Kirk - - 5,000 L. French & Co. 2,000 S. D. Kimbark 3,000 Gallup & Hitchcock - 2,000 A. E. Bishop 2,000 6o The First National Bank of Chicago Early stockholders, other than those elsewhere mentioned, were William B. Phillips, Mancel Talcott, William B. Kay, S. H. Smith, William Moore, J. N. W. Sherman and George T. Williams. On February lo, 1865, A. W. Wheeler severed his connection with the management, having previously resisfned 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 constitution 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 1866 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 * Not any further notice will be taken of this item in the text; as the bank has regularly, with one or two rare exceptions, paid a dividend to its stockholders twice, and more recently four times, every year. A complete statement will be found in the appendix. SAMUEL M. NICKERSON. First Organization, 1863-1882 61 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 foundation. 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 Decem- ber 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 year of his age. Under his management the institution had, within a brief period, grown to be one of the financial leaders of the West; its original projector, he had brought it to its present prosperous condition. Hence, fear was natu- rally 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. Nickerson 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 strenu- ously to advance the welfare of the corporation which 62 The First National Bank of Chicago 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. Hutchin- son, resigned. The most important transaction of this era was the purchase of the lot on the southwest corner of State and Washington streets. Vice-president Gray, who was charged with the negotiations, secured the trans- fer 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 pay- ment were one-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 semi-annually. In September, a building committee, consisting of Messrs. Nickerson, Walker, Gray, and Talcott, was appointed. A fire-proof edifice was pro- jected, which was furnished and occupied in the spring of 1868. As described in Industrial Chicago: "The old First National Bank building, on the southwest cor- ner of State and Washington streets, was completed* in 1872 at a ♦This should read "restored," as just stated in text. The building was originally finished in 1868. THE SECOND BUILDING OF THE FIRST NATIONAL BANK Southwest Corner State and Washington Streets. First Organization, 1863-1882 6;^ 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 Floren- tine 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 subse- quently 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 of^cers. On March 2d, Byron Rice resigned from the board, and two months later Henry H. 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, appointed to serve as a "discount commit- tee." During the summer of 1868 a momentous change in the personnel of the active managers occurred. On July 13th the resignation of Cornelius R. Field, as cashier, was accepted, to take effect on the first of August following. Before the last mentioned day, * Industrial Chicago, I., 155. 64 The First National Bank of Chicago Lyman J. Gage, then assistant cashier of the Mer- chants' 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 synonymous. 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 statistics, in the lead in capital and sur- plus; 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 Thomp- son. Henry R. Symonds was, on January 4th, chosen assistant cashier. About this same time George D. Boulton, now vice-president, was em- ployed as a book-keeper. On October 9, 1869, the formal report to the Comp- troller was as follows : First Organization, 1863-1882 65 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, 1871, 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 directors from time to time until in the total it should aggregate $3,000,000. 66 The First National Bank of Chicago The number of directors was also fixed at not less than five nor more than thirteen. All the retiring mem- bers, 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 swept over the bank structure, although the walls were left standing, and a portion of the interior was unharmed. For temporary pur- poses quarters were found,* but on January i, 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 fiery furnace; not a security, note, or paper of any value was destroyed, and the books were intact. The special committee 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 direc- torate, Nelson Morris being elected to succeed Frederick Crumbaugh. Charles Hitchcock was also * 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 afterwards in a frame struc- ture on the north side of Washington street between State and Dearborn, some one hundred feet east of the latter thor- oughfare, or to be more exact, on the site of the old Crosby Opera House. RUINS OF THE FIRST NATIONAL BANK BUILDING after the Great Fire. First Organization, 1863-1882 67 in August of this year appointed legal counsel, and the City Bank of London was in June designated as foreign correspondent. On December 25th the sum of S 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 ex- change) - - . . §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 Less amount on hand - - . 14,315 587,985.00 Dividend 250.00 Deposits .---.-. 2,810,240.88 §4,903,435.03 As showing the relative position of Chicago banks at this time as compared with those in other cities the next table may not be without interest : 68 The Fir: ST National Bank of Chicago il Z to Capital and Individual Deposits of Other 31 Surplus. Deposits. Banks. rt m a 111 ^■B <2qS New York 50 $92,163,877 $188,526,991 $75,433,200 286 Boston 49 60,340,325 40,841,919 16,274,348 94 Philadelphia 29 23.579.075 41,039,384 7.361.413 205 Chicago 19 10,681,885 19,469,985 8,071,967 259 Cincinnati 5 4,790,000 5.419.394 3,232,086 180 St. Louis 8 7,771,062 3,018,147 2,204,367 66 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 depres- sion did not come until autumn. Through their 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. While others were suspending, or wavering between doubt and fear, it manfully and promptly fulfilled every obligation. After the crisis had been successfully weathered, its prestige was so greatly enhanced that it was at once recog- nized 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 appro- priate and eulogistic language upon the record book of the association. With just pride he, in his official capacity, made the following report, as specially re- quired by the Comptroller of the Currency. This First Organization, 1863-1882 69 document, memorable in the history of the corpora- tion, deserves reproduction here. Special report of condition at close of business October 13th and November ist, made to the Comptroller of the Currency No- vember 10, 1873: October 13th. November ist. 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 Si,ooo,ooo.oo Circulating notes outstanding - 587,575.00 586,480.00 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 payments? No. On what day did the bank suspend? Did not suspend. After this date remarkably few changes occurred in the membership of the board of directors. In 1874 H. M. Wilmarth succeeded B. F. Allen. In 1879 Horace M. Singer was elected in place of Mancel Tal- cott, deceased. Mr. Talcott had died in May, 1878; as "one whose long and devoted services 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. 70 The First National Bank of Chicago On December 26, 1873, the statement of the bank showed the rapid strides which were being taken. ASSETS Loans and discounts $3>o5 1,649.53 United States bonds (par value) - - - - 737,388.66 Real estate, furniture, and fixtures - - - - 264,361.38 Cash resources: Due from banks (Eastern ex- change) $479,221.85 Checks for clearing house - 282,552.16 Cash on hand . . - . 1,038,927.92 1,800,701.93 $5,854,101.50 LIABILITIES Capital stock paid in $1,000,000.00 Surplus fund 500,000.00 Other undivided profits 139,722.96 Circulation notes from Comptroller - - - 574,030.00 Dividend 40.00 Deposits 3,640,308.54 $5,854,101.50 The next few years were marked by steady pro- gress. This advance cannot be better shown than by a brief tabulated statement of the growth of deposits, loans and discounts, capital and surplus during this period. Loans and Capital and Deposits. Discounts. Surplus. Feb, 27, 1874 $4,214,958.48 $3,470,196.67 $1,500,000 Mar. 1, 1875 5,769,946.78 4,349,568.71 1,600,000 Mar. 10, 1876 5,111,531.06 4,279,049.91 1,700,000 Jan. 20,1877 5,296,188.03 4,414,879.23 1,750,000 Mar. 15, 1878 5,941,899.03 3.745.257-33 1,750,000 Jan. 2,1879 6,832,921.56 4,488,334.71 1,750,000 Feb. 21,1880 11,237,102.98 7,635,477.12 2,000,000 Mar. 11,1881 13,397,281.65 8,619,956.45 2,000,000 Mar. 11,1882 17,322,467.83 10,414,081,50 2,500,000 First Organization, 1863-1882 71 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 ofifice arrangements, and it was voted : Whereas, the increase of business of this bank imperatively demands increase of room, and facilities to properly accommodate 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 occu- pied 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-ofifice had stood, would be an admirable loca- tion. This lot was school property. In the original proposition 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. 72 The First National Bank of Chicago when in June, 1881, a change in policy, due to cer- tain provisions of the National Banking Act, was adopted. It was determined to organize, as a sub- sidiary 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 $291,000 of this stock, the remainder being taken by its directors 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 stipu- lated 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 i, 1 88 1. 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 Novem- ber 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 columns on either side corresponding with pilasters carrying a heavy entabla- ture 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 storj. The second ana THE THIRD BUILDING OF THE FIRST NATIONAL BANK Northwest Corner Dearborn and Monroe Streets. First Organization, 1863-1882 73 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 hnishing a section. The cornice is becoming, and the parapets above it, in the pavilions, render the sky-line perfect. This house occupies 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."* These same premises are still occupied by the insti- tution, although from time to time the space used by it has been enlarged. The latest modification of interior arrangements was the removal, in 1 901, of the foreign and bond departments to the basement, where they now enjoy commodious quarters. On November 7, 1881, resolutions were passed, in accordance with which the capital stock was increased to the sum of $2,000,000, the additional amount required being rapidly subscribed. 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 appreciation of faithful and arduous service. A pleasing custom, soon observed by the board of directors, was that of voting, upon the recur- rence of every new year, substantial gifts to the officers and employees who were toiling for success and greater ♦Industrial Chicago, I., 175. 74 The First National Bank of Chicago achievement. This practice gradually arose, until at the close of 1881 perhaps the largest sum ever thus bestowed was appropriated; $20,000 was then distrib- uted. Merit and ability were likewise always rewarded by increase of salary and corresponding promotion. Several instances might be cited of men, who from the ranks, have risen to lucrative and controlling positions. With the advent of 1882 the association was neces- sarily 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 consideration, 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, thenceforth known as "The First National Bank of Chicago, Number 2670." Finally the books First Organization, 1863-1882 75 were balanced and a complete settlement of affairs was made, the stockholders, in conclusion, receiving $294.12 for every share they held. Such is the record of prosperity enjoyed by this establishment during the period of its first organiza- tion, 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. The story of achievement is therefore only half told. CHAPTER VI THE FIRST NATIONAL BANK OF CHICAGO Second Organization, i 882-1 902 No. 2670 The new organization was completed on April 24, 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 - 7,100 Lyman J. Gage - 2,334 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 - 1,864 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 - - 1,000 Henry R. Symonds - 2,250 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 association provided that the charter should run for twenty years, or until April 25, 1902; that the capi- 76 LYMAN J. GAGE. Second Organization, 1882-1902 77 tal might be augmented, upon certain conditions, to a sum not to exceed $10,000,000, and that the num- ber of directors should be not less than five nor 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. Allerton, 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 presi- dent, and Franklin D. Gray vice-president. Lyman J. Gage was appointed 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 already transferred by purchase from the defunct 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 78 The First National Bank of Chicago 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 Wash- ington streets, for the sum of $230,060, was concluded on June 5th. On June 20th 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 inci- dents in the history of the association happened Sep- tember 4, 1882. Upon this occasion Mr. 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 man- agement was now confided to his care. Henry R. Sy- monds was chosen cashier, Henry M. Kingman assistant cashier, and Richard J. Street second assistant cashier. About the same time a lease was negotiated with the National Safe Deposit Company, whereby the bank agreed to pay for the space occupied by it in the new building, then completed, the sum of $18,000 quarterly. Possession of these quarters was taken on November 27th. At the meeting of December 26th the surplus of $100,000 was doubled, and an appro- priation of $20,000 made for New Year's gifts to worthy and meritorious employees. Second Organization, 1882— 1902 79 At the annual session of the stockholders on Janu- ary 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 bank- ing 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 ofifice 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 additional 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, then attained fourth rank among all the financial establishments of the United States. During 1884 not anything of importance, save the further increase of the surplus by $100,000, is to be noted. The statement of condition made in Decem- ber, 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 ) o o Cash on hand \ ' ' ' ^'^^3.339-oo $19,477,660.00 8o The First National Bank of Chicago 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 appreciation 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 arrangement of the bank for serving its employees their daily lunch in the building. In the report of the national examiner, dated September, 1885, a para- graph appears, wherein it is stated that 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 contri- bution 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. Second Organization, 1882-1902 81 During 1886 the bank was silently but steadily growing. On March 31st it joined with its associate institutions in recommending to the Comptroller that Chicago be designated, pursuant to the act of Con- gress of March 3, 1887, as a central reserve city; such action was taken in due course. Slightly later $250,- 000 Avas 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 Peckham, long employed as special counsel, was chosen to succeed him. Mr. Peckham served until 1890, and again from 1891 to 1892. During 1889 cash prizes, aggregating in the total $600 annu- ally, were also inaugurated, to be awarded to such clerks as should, during any one year, prove them- selves the most efficient, exact in their duties, and the most apt in discovering errors. In order to determine the recipients, a complete system of daily marking was instituted. 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 11, 1889, the statement of condition showed : 82 The First National Bank of Chicago 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 clearinghouse Cash on hand i - - . 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 Janu- ary 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, 1 89 1, to organize, the following letter from President Nickerson was presented and read : Chicago, January 22, 1891. To THE Directors of the First National Bank of Chicago. Dear Sirs—Beiore proceeding to the election of ofificers for the ensuing year, I wish to state that should you decide to elect me president, it must be with the understanding and notice that I Second Organization, 1882— 1902 83 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 elect- ing 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. Thanking you for your many evidences of confidence and good will, and hoping that the future success of the bank may, under your direction, be equal to or better than the past, I await your decision as indicated above. Yours very respectfully, (Signed) Samuel M. Nickerson. Mr. Nickerson was then re-elected to the presi- dency. On June 30, 1891, he definitely and finally resigned. The note then addressed to his associates, read: June 30, 1891. To THE Directors of the First National Bank of Chicago. Gentlemeti — Referring to my communication of January 22d last, in which I stated, that if then elected president of this bank, it would be with the understanding and notice that I should have the privilege of resigning at any timie during the ensuing year; that time has now arrived, and I hereby tender my resignation, and ask its acceptance, to take effect on and after July 8th, next. Yours respectfully, (Signed) Sam'l M, Nickerson. Whereupon the following resolution was unani- mously adopted: Resolved, that the thanks of the stockholders of this bank are justly due to Mr. Samuel M. Nickerson for the efficient and faith- 84 The First National Bank of Chicago ful 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 administra- tion. We congratulate ourselves, however, that in his retirement 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 comprehension of his work and responsibility as a banker and bank officer, and admirable industry and address in the performance of that work. As citizens in the same community in which he lived, we lament JAMES B. FORGAN. Second Organization, i 882-1902 85 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 remember 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, for- merly cashier of the Northwestern National Bank of Minneapolis, Minnesota, then became a director, and likewise second vice-president. He was not, how- ever, 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 sugges- tion 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-president 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 insti- tution upon the basis of a total of $2,300,000 to be 86 The First National Bank of Chicago 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 United States bonds (par value) - . . . 778,636 Other bonds and stocks (market value) - - - 1,605,378 Real estate, furniture, and fixtures - - - - 675,000 Cash resources: Checks for clearing house ) -..^^r-,.. Cash on hand \ ' ' ' "^4^725^ $35,668,686 LIABILITIES Capital stock paid in 3,000,000 Surplus fund 3,000,000 Other undivided profits ------ 316,135 Deposits 29,352,551 $35,668,686 Throughout 1895 the continued depression in all lines of business was severely felt. For a number of years the institution had phenomenally prospered. Hence it was without any grave misgivings that the directors faced the existing financial crisis. Neverthe- less they did not deceive themselves with any false Second Organization, 1882-1902 87 views or rosy-hued dreams. They met conditions as they found them, and having decided to rid the books of all 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 sur- plus 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 realization, 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 following statement of facts: This bank (present organization) began business M^y i, 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 215,000 Total net earnings ------ $8,252,000 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 - - - - 12.00J6 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 88 The First National Bank of Chicago 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 accumulated 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 18.595? The officers and directors are moved to this action by a desire to keep the assets clear of doubtful values. With the usual aver- age 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 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 contingencies. 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 arrange- ment was perfected with the other banks in the clear- Second Organization, i 882-1902 89 ing house approving the use of clearing-house certifi- cates, 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 meet- ing of the board of directors, held on February 11, 1897, the following communication was read: February i, 1897. To THE Board of Directors of the First National Bank OF Chicago. In view of the public duties to which I have been called, I now beg to hereby tender my resignation as president of this bank, and as a director thereof, the same to take effect at your pleasure and convenience, but if possible, not later than February 15th, next. With profound appreciation of the confidence and favors shown me by the stockholders, directors, and associated off.cers of this bank, through so many years, I remain. Very truly yours, (Signed) Lyman J, Gage. It was thereupon unanimously voted : Whereas, Lyman J. Gage, president of this bank and a mem- ber 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 men- tioned by him. In thus yielding to ihe 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 man- agement 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, 90 The First National Bank of Chicago 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 connec- tion with the bank, it was expected that James B. Forgan would succeed him as the head of the institu- tion, but owing to the condition of this gentleman's health at that time, and his enforced absence for this reason in Europe, the immediate fruition of these plans was deemed impracticable. A temporary ar- rangement was therefore reached in the resumption of the presidency by Samuel M. Nickerson and the con- tinuance 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 suffi- ciently 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. The ensuing years were marked by steady growth along all lines; figures alone accurately show what was being accomplished. The leading items as taken from the books, approximately at the same date in 1896, 1897, 1898, and 1899, were as follows: Second Organization, 1882-1902 91 Loans and Total Discounts. Deposits. Footings. Dec. 17, 1896 $15,522,394.71 $26,581,929.25 $31,829,434.48 Dec. 15, 1897 20,093,591.04 37,622,903.87 42,869,080.03 Dec. I, 1898 21,626,167.98 41,136,043.13 46,389,319.95 Dec. 2, 1899 24,824,263.73 43,630,069.54 49,135,925.21 In December, 1898, the bank suffered an irrepa- rable loss in the death of Edward F. Lawrence, who, since 1870, had sat ahnost continuously on the board of directors, and had, during that entire period, ren- dered distinguished and valuable services. As a per- manent record to the love and esteem in which he was held, his associates ordered the following resolutions spread upon their records: Whereas, Edward F. Lawrence, a member of the board of directors of the First National Bank of Chicago for nearly twenty- nine years, has passed away, and rests from his labors. Resolved, that we now express our deep and abiding 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 con- fidence 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. Our personal loss is very great. His nature was cheerful and sunny, winning easily the friendship of others, and endearing him- self to them by his warm sympathy and ready help. We shall miss him sadly, this good and kindly man. His death leaves an ache in many hearts and no one can take his place with those who loved him. At the next annual meeting of the stockholders George T. Smith was chosen a director to succeed Mr. Lawrence. gi 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 com- mittee was, on March 28th, appointed 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 presidency at the beginning of the next year. Before the close of 1899 another veteran of promi- nence and distinction in its affairs also severed his official connection with the institution. At the meet- ing of December 26th the following communication from Franklin D. Gray was read: Chicago, III., Dec. 22, 1899. To THE President and Directors of the First National Bank. Gentlemen — With sincere feelings of regret, I deem it my duty to present my resignation as director in the First National Bank, a position which I have had the honor of holding since the bank was organized. With my best wishes for future success. Very truly yours, (Signed) F. D. Gray. It was then, on motion of Mr. Allerton, seconded by Mr. Carpenter: Resolved, that the resignation of Franklin D. Gray, Esquire, of his office as director in this bank, the same having been ten- dered, be and hereby is accepted. Second Organization, 1H82-1902 93 Resolved, that in taking this action we desire to express to Mr. Gray and to place upon our records our sense of the faithful- ness 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-presi- dent 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. Upon this same occasion, and in view of his im- pending retirement 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 byhim 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. Nicker- son, 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, assist- ant 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. A momentous change was now on the eve of achieve- ment. Consolidation of capital has become the pre- vailing characteristic of the age. With the increase in the magnitude of industrial corporations, the finan- 94 The First National Bank of Chicago cial interests of the country must keep pace. In order to afford the accommodation at times required by manufacturing and commercial estabHshments of the first rank, the department of credit must be organized on a similar scale. The appreciation of these self- evident truths has necessarily demanded, as a con- sequence, 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. At the monetary centers of the land the need of the day is most apparent and the exigency the most pressing. Speedily and efficaciously to satisfy these requirements it has seemed most expedient in such instances to unite the energies of two or more pre-existing institutions. During the last few years this solution has received general accept- ance; and to this end several of the more important establishments in the leading cities have amalgamated. 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 propo- sition. Pursuant to the suggestion subsequently made Second Organization, i 882-1902 95 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. In the mean time Augustus A. Carpenter, a mem- ber of the board for seventeen years, tendered his resignation. 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 Messrs. John H. Barker, William L. Brown, D. Mark Cum- mings, and John A. Spoor, all formerly on the direc- tory of the Union National Bank, as the additional members. When the board, as thus increased in size, met immediately afterward, its first action was the acceptance of the resignation of Mr. Carpenter; whereupon the following resolutions were adopted: Resolved, that in accepting the resignation of Mr. A. A. Carpenter, 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 g, 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 this connection with us causes deep feelings of regret. Resolved, that the above resolution be placed upon the records of this bank, and a copy thereof transmitted to Mr. Carpenter. David R. Forgan, lately president of the Union National Bank, was then elected to fill the vacancy, g6 The First National Bank of Chicago and further chosen senior vice-president. August Blum, formerly cashier of the liquidating bank, was likewise 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. 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, 19OQ, showed; ASSETS Loans $28,710,352 United States bonds (to secure circulation) - - 700,000 United States bonds (to secure U. S. deposits) - - 300,000 United States bonds on hand 234,550 Other bonds - 4,572,497 Cash and exchange 21,757,276 $56,274,675 LIABILITIES Capital and surplus - $5,000,000 Undivided profits 673,802 Circulation 554i330 Deposits 50,046,543 $56,274,675 The Union National Bank, on the same date, re- ported : Second Organization, i 882-1902 97 ASSETS Loans - - $10,140,410 United States bonds (to secure circulation) - - 700,000 Other bonds - - 197,802 Cash and exchange 6,017,871 Real estate and fixtures 314,805 Premiums on United States bonds - - - - 3ii55o $17,402,438 LIABILITIES Capital and surplus $2,370,000 Undivided profits 74.703 Circulation - - 350,000 Deposits - - 14,607,735 $17,402,438 After the consolidation had been concluded, on September 5, 1900, the statement of the reorganized First National Bank read: ASSETS Loans $39,219,804 United States bonds (to secure circulation) - - 1,000,000 United States bonds (to secure U. S. deposits) - 300,000 United States bonds on hand ----- 174,080 Other bonds 5. 530.291 Cash and exchange 29,793,035 $76,017,210 LIABILITIES Capital and surplus $7,000,000 Undivided profits ------- 1,517,040 Circulation 533.300 Deposits 66.966,870 $76,017,210 At the annual election of 1901 the first complete board of directors chosen under the new regime was composed of Samuel M. Nickerson, Samuel W. Aller- 98 The First National Bank of Chicago ton, 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, all of whom, with one exception, still continue to serve. The officers then named were: president, James B. Forgan; vice- presidents, David R. Forgan and George D. Boulton; cashier, Richard J. Street; assistant cashiers. Holmes Iloge, August Blum, Frank E. Brown, Charles N. Gillett ; manager of foreign exchange and bond de- partment, Emile K. Boisot; assistant manager, John E. Gardin; auditor, Frank O. Wetmore; attorney, Or- ville Peckham ; assistant attorney, James D. Woley. In the practical working of the bank a slight change subsequently occurred. On June 25, 1901, the for- eign exchange and bond business was separated into two distinct departments. Of the former John E. Gardin was appointed manager, and Max May assist- ant manager; of the latter Emile K. Boisot remained in charge as manager. Besides the various details of internal mechanism already mentioned, the clerks' savings association should not be forgotten ; on the deposits of all employees who avail themselves of its privileges a good rate of interest is paid. As indicative of the magnitude of the transactions of the bank during 1901, it may be noted that in that year the average number of items handled each day Second Organization, 1882-1902 99 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 $1,550,470,975.78, equivalent to $5,000,000 per day. The total annual clearings of all the Chicago banks were $6,799,535,598.36, showing that the share of the First National Bank therein was more than one- fifth, the exact percentage being 22.8%. 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 National Bank in the latter institution. The management of the Metropoli- tan — 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 associ- ation with some larger establishment. After a pros- perous 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 ofificially published statement, dated April 30, 1902, the Metropolitan National Bank showed assets and liabilities as follows: loo The First National Bank of Chicago 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 - - - - $3,097,655.09 Cash and checks for clearing - 7,002,948.89 10,100,603.98 Due from United States Treasurer - - - 42,000.00 Total -.---.. $26,735,207.75 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 Total $26,735,207.75 The First National Bank at the same date reported : ASSETS Loans and discounts ------ $45,192,862.53 United States bonds (par value) - - - 1,549,030.00 Other bonds and stocks (market value) - - 6,820,608.96 Cash resources : Due from banks (Eastern ex- change) ... - $14,067,980.08 Checks for clearing house - 2,373,712.28 Cash on hand - - - 17,441,007.33 Due from United States Treasurer 119,000.00 34,001,699.69 Total ------- $87,564,201.18 Second Organization, i 882-1902 loi LIABILITIES Capital stock paid in $5,cxx),ooo.oo Surplus fund 2,000,000.00 Other undivided profits - 1,768,892.94 Discount collected but not earned - - - 268,596,52 Interest accrued on interest bearing certificates - 5,738.61 United States bond account . - . . 200,000.00 Circulation notes received from Comptroller . . . . $993,500.00 Less amount on hand - - - 202,810.00 790,690.00 Dividends unpaid ------- 3,654.00 Deposits 77,526,629.11 Total $87,564,201.18 After the consolidation, which was finally consum- mated on May 31, 1901, the statement of the First National Bank, so far as regards its principal items, comprised approximately: Capital $8,000,000.00 Surplus 6,000,000.00 Loans --...... 60,000,000.00 Deposits - 100,000,000.00 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 ofificers of the First National Bank were retained ; of the gentlemen lately associ- ated with the Metropolitan, other than those already mentioned, Howard H. Hitchcock was elected a vice- I02 The First National Bank of Chicago president, to rank third in seniority, and Edward Dickinson an assistant cashier, likewise to be third among those occupying such positions. With the amalgamation of these two institutions Chicago for the first time came into the possession of a bank having a capital of $8,000,000, showing depos- its approximating $100,000,000, and ranking as the second largest financial establishment in the United States. The First National Bank, by the acquisition of two such important rivals in the field of Chicago finance as the Union National and the Metropolitan National, still retains the lead over all competitors in the West, and is still ever pressing forward. In a slight review of the activity of a single impor- tant institution it is not practicable to obtain any adequate idea of the scope and magnitude of its transactions without constantly bearing in mind the contemporaneous history of the nation. Very nearly forty years have elapsed since the passage of the National Banking Act, and the organization of the First National Bank of Chicago under its provis- ions. While some conception of the steady progress which the bank itself has made during this period — until now it has a balance sheet aggregating nearly $115,000,000 — will be formed, it may still not be realized, without momentary reflection, what a force it has been in the advancement of the city and the enormous tributary territory. While it has certainly profited by the phenomenal growth of the community, Second Organization, 1882-1902 103 it has on the other hand contributed in no small meas- ure to the extension of the trade and the development of the material interests of those whom it serves. Moreover, only consider that the inhabitants of the entire Mississippi Valley, those dwelling in the states west of the Alleghanies and east of the Rocky Moun- tains, together with the peoples of the British domain of Canada on the north, and the sister republic of Mexico on the south, nay barely in a less degree, the vast populations of Europe, Asia, and Africa, turn hither as a center from which to draw their food sup- plies. What a train of logical conclusions such a thought inspires! Chicago is the chief distributing point of the most essential products required by humanity; the slightest modification in the demand of the most distant land reacts upon its welfare and fortune. The struggle to attain the leadership in various branches of trade and industry has been arduous, but not by any means long, for has not the city grown from 150,000 in 1863 to 2,000,000 inhabitants in 1902? And how has this proud ascendancy been achieved? As the result of what exertions and by reason of what causes has this metropolis reached its supremacy? What are the strong foundations upon which not only that already accomplished has been established, but on which by far the greater superstructure of the future is yet to be erected? To those familiar with the intricate mechanism behind this scene of activity the answer is not difificult I04 The First National Bank of Chicago to formulate. The past progress and present position of Chicago are in a great measure attributable to the sound condition of its principal representatives in the world of finance. Their strength has ever been recog- nized and unchallenged. These institutions and those associated with them not only hold the front 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 require- ments of commercial and mercantile enterprise. Without any desire or intention to eulogize the First National Bank, it is believed that, with all due propriety, some few words of satisfaction at its past career can be uttered. After the perusal of the fore- going pages scarcely any one will deny that by reason of the excellent management which it has uninter- ruptedly enjoyed, the high financial policy which it has strenuously advocated, and the respect and esteem of the community which it has never sacrificed, this establishment has attained a reputation well merited by its record and unsurpassed by any contemporary. Ever jealous of the consideration which it has received, striving for the future, and always anxious to conserve the best interests of those who in any way are con- nected with it, the First National Bank of Chicago, it is modestly assumed, may still justly anticipate many long years of public service. If the experience of the past is a fair criterion upon which to hazard a predic- tion, the greater fortune is yet before it. r*. till- JO noiifiluqo^ IT A 1* '• Capital, Surplus and Undivided Profits Deposits Loans and Discounts Population of Chicago PYRAMID showing at different dates the relative proportions of the principal items reported by THE FIRST NATIONAL BANK OF CHICAGO, and com- pared V7ith the growth of the city. See note at foot of other chart. /g6 7y ooo ooo 7? o ao OOP 7Z ooo ooo 7/ oao ooo 10 ooo ooo (it ooo ooo f,H ooo ooo (,7 ooo ooo 66 ooo ooo hi Ooo ooo 6V ooo ooo h3 ooo ooo bZ ooo ooo f^l ooo ooo ho ooo OOQ rlf ooo ooo SK ooo one SI ooo ooo 46 oo o ooo Sf oo o ooo Sf ooo ooo Si ooo ooo 52. ooo ooo s/ ooo oaa JO ooo ooc ¥f ooo ooo f8 ooo ooo 1/7 ooo ooo 4(^ ooo ooo M'> ooo ooo UU ooo ooo V-3 ooo ooo tJ2 ooo ooc U/ ooo OOQ ^o QQo 009 /g63 /fi^f IS7i^ /87f /gSii- 7881 ISIU /fif?' 1 / CHART aoe COJ? J it £00 'H~ U^LH u^ ~ f ivifT ^ CHICAGO / / / 1 t *ft ififi oca J ^ /— -^ ecu ee£ pm — — /— ^— — ppn Profits Deposits Loaos and Discounts Population of Chicago _ / / / , It M Iff _j^ / '^ ^ if £££ ^ j/^ / X / 'tf / / /^ r / y^ rf r//^ > _y^ _y^ ^ ; _L ogP JICJ — A V^^ ^(L °o° 20£ ■« // - // — IS ^ p/^ — i5£- 00£ i-2_£?e /<9^J /S^9 /87¥ /87? 788 ¥ 7889 /.9W /en IIOZ ^M. — • NOTE— The above t art was prepared prior to the absorption of the Metropolitan National Back; since that I considerable increase. The CapiUl, Surplus and Undivided Profits on July ist, 1902, x>; the Deposits approximated $95,000,000; the Loans and Discounts, $60,000,000. # THE UNION NATIONAL BANK CHAPTER VII THE UNION NATIONAL BANK On December 29, 1864, the Union National Bank of Chicago was established; on January 11, 1865, was authorized by the Comptroller of the Currency to begin business; and in the following February opened its doors in the building situated at the northwest corner of Lake and La Salle streets. The original capital of the bank was $500,000., The first board of directors consisted of William F. Coolbaugh, John V. Farwell, Wesley Hunger, Heman G. Powers, Clinton Briggs, Calvin T. Wheeler, and Daniel Thompson. William F. Coolbaugh was at once chosen president and Charles J. Council cashier. One year later, in January, 1866, the office of vice-president was insti- tuted, and Calvin T. Wheeler was selected to perform its duties. This institution, owing its existence chiefly to the energy of William F. Coolbaugh, was until the day of his death, November 14, 1877, dominated by him. Born on July i, 1821, in Pike County, Pennsylvania; with an education restricted to the opportunities of a village school, and terminating at the end of his twelfth year, he was a typically self-made man. When only fifteen he started on his career as porter in a Philadelphia dry-goods store, but soon became a 107 io8 The First National Bank of Chicago clerk, and eventually western manager for his em- ployer. In 1842 he established himself as a merchant at Burlington, Iowa, and eight years later formed there a partnership for banking purposes under the name of Coolbaugh & Brooks. While still a member of this firm, becoming loan agent for the state in which he resided, he issued in that capacity the first Iowa bonds. In 1862 he transferred his residence to Chi- cago, opening in this city the banking house of W. F. Coolbaugh & Company, located at 154 Lake Street, which, as events developed, proved the predecessor of the Union National Bank. Mr. Coolbaugh quickly became known as a prominent and public-spirited man. In politics he was an ardent Democrat; served as a member of the state convention of 1869, and in 1876, when Samuel J. Tilden was believed to have been elected to the Presidency, was prominently men- tioned as the probable recipient of the treasury portfolio. His financial ability and judgment were generally recognized. He was the first president of the Chicago Clearing House, and was also, upon the formation of the National Bankers' Association for the West and South, chosen to a similar position in that organization. In 1868 he likewise served as treasurer of the Chicago, Rock Island and Pacific Railway. Under the direct management of such a spirit the Union National Bank rapidly gained strength, and for many years aspired to be the lead- ing institution of its type in Chicago and throughout The Union National Bank 109 the West. The great fire of 1871 destroyed its origi- nal home, but after a brief interval, during which business was temporarily conducted at the residence of the vice-president, Calvin T. Wheeler, on Wabash avenue, it became domiciled in the old Central Union Block on the northwest corner of Market and Madison streets, a structure just then erected by the firm of Coolbaugh, Powers & Wheeler. For the present purpose only the principal events in the subsequent history of the bank need here be sketched. In July, 1872, the capital of the associa- tion was increased to $1,000,000 ; on March 29, 1878, owing to the changes incident to the death of Mr. Coolbaugh, it was reduced to $500,000; upon the renewal of the charter, in 1884, was once more fixed at the original sum ; subsequently, in the same year, increased to $1,600,000, and afterwards gradually augmented to $2,000,000, an amount first reached on July 30, 1886; at which figure it remained until the retirement of the bank from business in the autumn of 1900, Several changes likewise occurred in the personnel of the officers. In November, 1871, George A. Ives replaced Charles J. Council as cashier, the latter having resigned. Upon the death of Mr. Coolbaugh, in 1877, Calvin T. Wheeler was elected president and Charles A. Munn vice-president. In January, 1880, W. C. D. Grannis succeeded Mr. Munn, and at the same time John J. P. Odell was chosen cashier instead of Mr. no The First National Bank of Chicago Ives. On December 22, 1882, Calvin T. Wheeler resigned as president, shortly thereafter establishing the Continental National Bank. At the next meeting of the directors, in January, 1883, W. C. D. Grannis was advanced to the presidency, Hon. Charles B. Farwell became vice-president, and W. O. Hip- well assistant cashier. In January, 1885, John J. P. Odell was promoted to be vice-president and W. C. Oakley was appointed cashier. One year later, at the beginning of 1886, Mr. Grannis retired from the presi- dency, and, severing his connection with the bank, soon afterward founded the Atlas National Bank. Columbus R. Cummings was chosen to succeed him. The other ofificers remained the same as theretofore. During the next four years not any change of impor- tance occurred; the only event of note being the cre- ation, in 1888, of an additional assistant cashiership, which August Blum was selected to fill. A number of modifications in officers occurred in 1890. Mr. Cummings was succeeded in the presi- dency by John J. P. Odell and David Kelley was chosen vice-president. The following year there was not any change; but in 1892 W. C. Oakley retired, and August Blum was appointed cashier. In 1893 a second assistant cashier was named in the person of E. J. H. McGuire, who, however, scarcely survived the year. At the beginning of 1895 Richard C. Lake was elected second vice-president. Another reorgani- zation of the official representatives of the bank was The Union National Bank i i i effected in January, i8g6. James W. Ellsworth was elected president, David Kelley vice-president, and David R. Forgan, second vice-president. One year later Mr. Kelley retired from the vice-presidency, in which Mr. Forgan succeeded him, the latter assuming at the same time the active management of affairs. As might well have been anticipated, Mr. Forgan was, in 1898, chosen president. The other officers then elected were: vice-president, John McLaren; cash- ier, August Blum; assistant cashiers, W. O. Hipwell and Charles M. Walworth. These gentlemen con- tinued in office until September, 1900, the date of consolidation with the First National Bank. Two events of importance which occurred during the later days of the institution should at least be noted. In 1898, under the inspiration of President Forgan, the Union National Bank bought out the business of the Hide and Leather National Bank, of which Mr. John McLaren was at that time president. This gentleman, upon the consummation of the sale, became vice-president in the purchasing bank. By the transaction the Union National Bank secured additional deposits amounting to $1,800,000. One year subsequently the business of the Bank of Com- merce, with deposits representing $1,000,000, was likewise absorbed. The board of directors of the Union National Bank, besides the names of those already mentioned, as presidents and vice-presidents of the institution, IJ2 The First National Bank of Chicago included, at various times in its history, David Dows of New York, William D. Howard, J. H. Dwight, Nathan Corwith, E. D. Rand, Asa Dow, N. K. Fair- bank, A. A. Hunger, Asa P. Kelley, James W. Odell, Laurin G. Pratt, John E. Williams, D. L. Quirk, J. W. Grimes, J. H. Barker, O. H. Fuller, D. Mark CummingS;, C. F. Grey, W. T. Baker, S. E. Barrett, H. N. May, J. A. Spoor, O. C. Barber, H. H. Getty, David B. Dewey, William L. Brown, and S. K. Mar- tin. As indicative of the financial status of the insti- tution, from time to time, it may not be without interest to cite a few statistics as drawn from various reports made to the Comptroller of the Currency. The first available statement, bearing the date of April I, 1865, shows: Loans and discounts $873,000 Cash and exchange 1,980,000 Deposits 2,693,000 Capital stock 500,000 On January 22, 1870, the books read: Loans and discounts $2,759,000 Cash and exchange 1,653,000 Deposits 3,586,000 Capital and surplus 1,000,000 Again, on December 12, 1879, the figures were: Loans and discounts - $3,809,000 Cash and exchange -.-.--- 1,937,000 Deposits 5,031,000 Capital and surplus 700,000 Ten years later, on December 11, 1889, the report then made included: The Union National Bank i 13 Loans and discounts §5,819,514 Cash and exchange - 3,013,600 Deposits 7,208,700 Capital and surplus 2,600,000 The last statement prior to amalgamation with the First National Bank is dated June 29, 1900. The items are: Loans and discounts $10,140,410 Cash and exchange - - 6,017,871 Deposits 14,607,735 Capital and surplus - 2,370,000 The total of the balance sheet aggregated $17,402,- 438. It is a noticeable feature that in every respect the figures on the day of retirement from business in September, 1900, were the largest in the history of the institution. The Union National Bank, in the course of its career, experienced two removals other than those already mentioned. In 1873 its offices were trans- ferred to the Union Building on the southwest corner of Washington and La Salle streets, and again, in April, 1886, upon the retirement of Mr. Grannis from the presidency and the organization of the Atlas National Bank, to the Home Insurance Building on the northeast corner of La Salle and Adams streets, where it continued to be located until the end. In the spring of 1900 the project of consolidation with the First National Bank was broached. The directors fully discussed the question, and appointed a committee to meet the similar body designated by 114 The First National Bank of Chicago the board of the other institution. Then, after hear- ing its report, and the outline of the plan intended to accomplish this purpose, the entire subject-matter was laid before a special meeting of the stockholders. They approved the proposition, and it was finally- determined to effect the consolidation by the sale of the assets to the First National Bank, upon condition that the board of directors of the latter should be enlarged and a certain number of members be elected from those who then formed the controlling body of the Union National Bank. The last directorate of the liquidating bank consisted of Messrs. W. T. Baker, John H. Barker, S. E. Barrett, William L. Brown, D. M. Cummings, D. R. Forgan, David Kelley, John McLaren, J. A. Spoor, W. C. Thorne, and F. S. Winston. Of these gentlemen Messrs. Barker, Brown, Cummings, Spoor, and Forgan were eventually trans- ferred to the board of the First National Bank. Pending the full settlement of its affairs, the charter of the Union National Bank has not yet been sur- rendered. The association is therefore still technically existent, but save for this temporary purpose its career is terminated. In due course, the charter will, within a comparatively brief time, be given up, and its legal entity lost. THE METROPOLITAN NATIONAL BANK CHAPTER VIII THE METROPOLITAN NATIONAL BANK The Metropolitan National Bank of Chicago was established March 27, 1884, and on May 6, 1884, was authorized by the Comptroller of the Currency to begin business. The bank opened its doors on May 12, 1884, at 100 Washington Street, where the firm of Preston, Kean & Company had previously been situated, and to whose business the newly founded institution succeeded. The original capital was $500,- 000; Elbridge G. Keith, William Deering, T. W. Harvey, David Preston, Samuel A. Kean, F. W. Hayes, James L. Woodward, E. Frankenthal, and G. B. Shaw formed its first board of directors. Elbridge G. Keith was at once elected president; Samuel A. Kean, vice-president; Henry A. Ware, acting cashier; and William D. Preston, assistant cashier. Elbridge G. Keith, who was the chief factor in the organization of the bank, remained at its head unin- terruptedly until its amalgamation with the First National Bank of Chicago, on May 31, 1902. Samuel A. Kean served as vice-president until the annual elec- tion of January 15, 1885, when he was succeeded by Gilbert B. Shaw; this gentleman continued in that position until January, 1890, when James L. Wood- 117 iiB The First National Bank of Chicago ward was chosen in his stead. He held the post until his death, in the spring of 1892. Because of the active part which he took in the management of the firm of Keith Brothers of Chicago, Mr. Woodward devoted only a portion of his time to the affairs of the bank. Nevertheless, all matters of importance were submitted to his judgment, and to him the success attained during this period was largely due. On June 3, 1892, William Deering, the well-known manufac- turer of harvesting machinery, was elected vice-presi- dent; he continued in office until January 9, 1895, when William J, Watson assumed the duties of that post, which he retained until the end. Henry A. Ware was retained as acting cashier and second vice- president until the early part of 1887, when he resigned for the purpose of entering into the banking business at Duluth, Minnesota. William D. Preston was, in January of that year, chosen cashier, which position he held until October, 1894, then voluntarily retiring to engage in other pursuits. Howard H. Hitchcock, formerly assistant cashier, was thereupon promoted to be cashier. Edward Dickinson was appointed second assistant cashier in June, 1892, and named assistant cashier on October 16, 1894. In addition to the gentlemen already mentioned as directors, William J. Bartlett, Augustus A. Carpenter, Arthur Dixon, John Dupee, B. A. Eckhart, Simeon Farwell, William A. Fuller, E. T. Jeffery, Edson Keith, S. A. Kent, Arthur Orr, D. K. Pearson, W. The Metropolitan National Bank 119 D. Preston, William B. Walker, and William J. Wat- son served at some time in that capacity. The last officers and directors were: president, Elbridge G. Keith; vice-president, William J. Watson; cashier, Howard H. Hitchcock; assistant cashier, Edward Dickinson; directors, William Deering, W. A. Fuller, Adolphus C. Bartlett, Augustus A. Carpenter, E. Frankenthal, Arthur Dixon, B. A. Eckhart, William B. Walker, E. T. Jeffery, William J. Watson, and Elbridge G. Keith. Upon assuming the business of its predecessors, Preston, Kean & Company, the Metropolitan National Bank showed deposits approximating $1,400,000. During the eighteen years of its career its growth was uniform and steady until at the time of its absorption by the First National Bank its total deposits were about $22,000,000. The able manner in which the institution was managed is demonstrated by the fact that after an existence of only seven years it had accu- mulated a surplus equal to its capital. Prior to July I, 1 89 1, its business had grown to such a magnitude that the capital stock was at that time increased to $2,000,000 by issuing a stock dividend of loofo to the old stockholders, and by disposing of $1,000,000 worth of new stock at $200 per share, thus giving a capital of $2,000,000 and a surplus fund of $1,000,- 000, The bank was successfully guided through the perilous days of 1893 and the years of depression which followed. At the time of liquidation its funds I20 The First National Bank of Chicago in surplus account and undivided profits amounted to nearly $1,750,000. From the date of its inauguration until April, 1902, there were paid regular dividends aggregating about $2,000,000 — an amount equal to the full capital stock. In the spring of 1885 the bank removed from 100 Washington Street to the building at the northwest corner of LaSalle and Monroe streets, and again, in the early part of 1892, to larger and more commodious quarters in The Temple at the southwest corner of Monroe and LaSalle streets. The following statements as rendered to the Comp- troller of the Currency, in compliance with his ofificial calls, show the condition of the institution at the dates given. REPORT OF JUNE 20, 1884 RESOURCES Loans and discounts ------ $1,265,177.81 Overdrafts 3,391.48 United States bonds (at par) 50,000.00 Other stocks and bonds 207,686.00 Due from approved reserve agents - - - 113,055.62 Due from other national banks . . . . 72,091.03 Due from state banks and brokers ... 104,974,43 Furniture and fixtures 5,500.00 Premium on bonds ------ 801,08 Cash and checks for clearings 439i577-35 Due from United States Treasurer - - - 4,000.00 Total $2,266,254.80 The Metropolitan National Bank 121 LIABILITIES Capital stock paid in $500,000.00 Undivided profits 9,607.68 Circulation 45,000.00 Deposits 1,711,647.12 Total §2.266,254.80 REPORT OF DECEMBER 19, 1894 RESOURCES Loans and discounts $8,522,687.94 Overdrafts - - 3,686.38 United States bonds (at par) ----- 50,000.00 Other stocks and bonds 714,267.10 Due from banks - . . . $1,197,142.50 Cash and checks for clearings - - 2,644,324.33 3,841,466.83 Due from United States Treasurer ... 20,851.20 Total - $13,152,959.45 LIABILITIES Capital stock paid in $2,000,000.00 Surplus fund and undivided profits - - - 1,097,768.20 Circulation - 1,475.00 Dividends unpaid - 395-oo Deposits 10,053,321.25 Total - - $13,152,959.45 REPORT OF APRIL 30, 1902 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 ... - $3,097,655.09 Cash and checks for clearings - - 7,002,948.89 10,100,603.98 Due from United States Treasurer - - - 42,000.00 Total $26,735,207.75 122 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 Total $26,735,207.75 The charter of the .Metropolitan National Bank expires in 1904, at which time it is expected the asso- ciation will cease to exist. The recollection of its usefulness will, however, still long be borne in mind by all those who, through periods of prosperity and depression, were so closely and pleasantly associated. THE NEW BANK BUILDING CHAPTER IX THE NEW BANK BUILDING The First National Bank originally occupied its present quarters at the northwest corner of Dearborn and Monroe streets in 1882. They were then con- sidered ample for a long term of years. The National Safe Deposit Co., a subsidiary corporation, had leased the ground from the Board of Education for ninety- nine years, and had erected the edifice especially with a view to the accommodation of the principal institu- tion. The arrangement on the part of the latter com- prised the rental, for its offices, of the entire main floor, as designed for it, and such other room as might from time to time be required. During the past twenty years the business of the bank has increased in an ever-ascending ratio, and gradually the space used by it has become more and more crowded — although within the last two or three years both the basement and some other portions of the building have been taken for various purposes — until at length the necessity for relief by the construc- tion of an entirely new edifice has become imperative. At this time, when in accordance with the act approved July 12, 1882, the charter of the association has just been extended for another period of twenty years, 125 126 The First National Bank of Chicago the improvement of its facilities seems peculiarly appropriate. The decision was therefore recently taken, that the erection of a new building upon the present site and such adjoining ground as might be secured by lease or purchase was not only necessary, but per- fectly feasible. Pursuant to this plan, and after some considerable negotiation, the National Safe Deposit Co. has bought, at an approximate cost of one million dollars, the two properties on Monroe street just west of the ground held under lease; these lots are now covered by the Montauk Block, a structure ten stories high, one of the earliest modern skyscrapers built in Chicago, and by the building heretofore occupied by Bradner, Smith & Co. as a wholesale paper ware- house; they include a frontage of one hundred and twenty-three feet, which, with the one hundred and eight feet now rented from the Board of Education, makes a total of two hundred and thirty-one feet front- age on Monroe street controlled by the bank. The frontage on Dearborn street is one hundred and ninety-two feet. It is now proposed to erect upon this entire property, including an area of forty-four thousand two hundred and seventy-four square feet, a building sixteen stories in height, and inclosing ten and one-half millions of cubic feet. The cost, esti- mated at five million dollars, has been provided by a recent increase in the capital of the National Safe Deposit Co. to the sum of two million five hundred The New Bank Building 127 thousand dollars, and by the issue of a similar amount of bonds. While it is not possible at the present moment to give all the details of construction, and the interior arrangement of the edifice as it will in due time be completed, it may prove of interest, nevertheless, here to sketch in outline its main features. With this purpose in view the architects, D. H. Burnham & Co., have prepared a brief description, which reads: Exterior. — The building will practically front on four sides, there being an alley on the north and a court on the west. There will also be an interior court measuring sixty by ninety feet, thus providing ample light and ventilation. The construction will be entirely fire-proof. The exterior walls will be faced with granite and the court walls with white enameled brick. All steel will be buried in cement. In general the design of the building is in the old Roman style. The first three floors, sixty feet in lieight, which are to be occupied by the bank, and its dependencies will be marked by a cornice supported on massive Doric pilasters, forty feet in height, inclos- ing the arched openings of the bank proper. The aggregate height of these three lower stories will be equal to that of an ordinary five- story building. The banking room will thus be clearly indicated; its appearance will be imposing and in proportion to its magni- tude. Above this point the exterior treatment will consist of win- dows simply spaced to suit the offices of the typical floors. From the fourth story to a belt course at the fourteenth story the walls are plain, the only ornament being slightly projecting sill courses. The main pier lines that mark the division of the lower floors will continue up and terminate at the fifteenth and sixteenth stories in an arcade supporting the main cornice which is of the Corinthian order. This upper arcade is broad and simple and its deep reveal discloses the unusual thickness of the exterior structural piers of the building. The walls really extend up to and include the parapet, the cornices growing entirely out of them. The design is severely simple in keeping with the natural quality of granite, which material is used fcjr 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 a great financial institution. 128 The First National Bank of Chicago Entrances. — There will be two main entrances to the bank and office building. The principal one will be from Dearborn street. Here the vestibule will be sixty feet wide, entered by twelve doors. It will be eighty feet deep and forty-five feet in height, entirely finished in marble, and with the grand staircase of broad, easy steps ascending twelve feet from the street level to the banking-room floor. On each side of the staircase will be five elevators, connecting with all the floors to the top of the building. The entrance from Monroe street will be nearly as important. The vestibule here will be twenty-four feet wide by fifty feet deep, with seven elevators to the top of the building and a broad stair- case to the bank. Interior.— The typical floor plans are divided into offices, of modern sizes and arrangement, supplied with every convenience. There will be an interior corridor on every floor extending entirely around the building. Seventeen elevators and three staircases from the ground to the top of the structure will afford ample means of ingress and egress to the occupants. In every respect the edifice will be strictly modern, and will be equipped with all the latest conveniences and novelties which add so greatly to the accommodations furnished by city office buildings. Banking-Room. — The main banking-room will occupy the entire first floor, twelve feet above the street, two hundred and thirty feet long, one hundred and ninety feet wide, and thirty-two feet high, together with an additional floor of corresponding area and fifteen feet in height immediately above it, and overlooking it through the central court. These stories will architecturally be treated as a unit. The main entrance by the grand staircase from Dearborn street will be through an archway opening immediately into the central court, which, measuring sixty by nmety feet, will be surrounded by an arcade, and roofed over at a height of fifty feet with a crystal plate glass dome, thus being brilliantly lighted. From this court broad staircases and private elevator will con- nect with the safe deposit department below and additional floors above. Safety Deposit Vaults. — The National Safe Deposit Com- pany will occupy sixteen thousand one hundred and four square feet of space on the ground floor, with its entrance through the vestibule on Dearborn street. The Safety Deposit Vault itself will measure forty-two by fifty feet, comprising an area of two thousand one hundred square feet, and will contain eighteen thousand boxes. Coupon-rooms, committee-rooms, and reception-rooms for men and women will be provided. The office, vestibule, and all other appointments will be thoroughly in keeping with the general tone of the building. The New Bank Building 129 The foregoing account, while in many respects inadequate, and in its details incomplete, will still serve, it is hoped, to convey some general impression of the magnitude and character of the proposed edifice. During its erection business will be uninterruptedly continued, first in the old structure as now occupied until the first portion of the new building on the west half of the Monroe street frontage shall have been completed. The bank will then remove into this finished section ; the old building at the corner of Dearborn and Monroe streets will be demolished and the remainder of the new edifice completed. The work of razing the Montauk Block and the former Bradner Smith building has already been commenced. The section to be erected on this ground will, it is hoped, be finished within one year; the entire struc- ture, as projected, will be ready for occupancy on or before May i, 1904. BIOGRAPHICAL I BIOGRAPHIES OF PERSONS FORMERLY CON- NECTED WITH THE BANK, BUT NOW DECEASED EDMUND AIKEN Edmund Aiken was born at Norfolk, Connecticut, on April 29, 1812 ; the eldest of the six children of Lemuel and Sarah Thomp- son Aiken. He was of Scotch ancestry. Henry Aiken, the founder of the American branch of the family, migrated from Scotland in 1710. Lemuel Aiken was a well-educated man of high reputation in his community. Edmund, while a child, enjoyed all the usual comforts of a good home, and grew up, like so many others of his social position in New England, under the incitement of an inspir- ing past and the influence of strict religious sentiments. In his youth he received a good academic education, and at the age of twenty entered Yale College, where his name appears on the offi- cial records as Edmund Akins. Although physically not strong, he persevered for two years (1831-1833) in close application to study. The condition of his health then rendered the abandon- ment of his course imperative. With sorrow and regret he re- turned to Norfolk ; but fortunately in time fully recuperating, he gradually tended toward a business career. His first venture was a partnership, in his native place, with his brother-in-law, Eleazer Dowd, the two buying out the interest of the former proprietor, Mr. Grove Lawrence, in a mercantile establishment. For one year (1834) this connection continued; but at length young Aiken, who seems for some time previously to have cherished the desire to go West, yielding to the popular movement of the day, started out in search of a new home and greater fortune. Sherman Brothers, of Mishawaka, Indiana, offered him an opportunity to enter their em- ploy, which opening he gladly embraced. Here, however, he remained only during a brief interval (1835), for little by little his early project of obtaining a professional edu- cation once more gained the mastery over him ; having entirely recovered his health, and likewise accumulated a small sur- plus fund, he determined to study law. With this aim he re- moved to Syracuse, New York, entered the office of Hon. B. Davis Noxon; and later that of Hon. James R. Lawrence, and Judge 133 134 The First National Bank of Chicago Grove Lawrence, both well known at the bar of that city ; was given by the latter license to apply for admission to the bar on December ii, 1839 ; was admitted as solicitor in the Court of Chancery of New York on January 27, 1841 ; and finally as counselor on January 2, 1844. About this time Mr. Archibald Thompson, of Marcellus, New York, retiring from active practice, offered his influence and patronage to Mr. Aiken, who eagerly wel- comed the larger field thus afforded him. There settling, as he thought permanently, in life, he diligently applied himself for sev- eral years to professional duties, with the exception of one year devoted, at the earnest solicitation of the local board, to teaching in the high school. It was in Marcellus that, on October 28, 1841, Mr. Aiken was united in marriage to Elpha Reed Bradley, the youngest daughter of Jonathan and Rhoda Cody Reed, and the widow of Walter Bradley, deceased. In this rural environ- ment Mr. Aiken resided fourteen years, but all this time he seems to have cherished a secret longing for a wider scene of endeavor. Coming, in 1855, on a tour of investigation as far West as Chicago, his decision was taken ; returning home, he sold his homestead and farm, closed his office, settled his other affairs, and in the winter of i855-i856once more arrived in this city with the determination of making it the place of his permanent abode. In the spring of 1856 Mr. Aiken opened a law office in con- nection with George W. Snow, in a building located on Clark street, at the northeast corner of the alley, between Lake and Randolph streets, engaging, together with the pursuit of his pro- fession, in a general loaning business, which, as the event proved, ultimately required his entire attention. One year later, John D. Norton, a capitalist of Syracuse, New York, became associated with him, and as he furnished considerable funds for loaning pur- poses, the name of Aiken & Norton was adopted. In several direc- tories of that day this firm is stated as doing business in the Seth Payne Building, at 47 Clark street, just opposite Mr. Aiken's law office. Two years subsequently a removal occurred to Room 2 in the Lewis Building, then situated at the southwest corner of Clark and South Water streets. In the spring of i860 Jonathan Burr was admitted to the firm as a silent partner, retiring, however, after one year. In the latter part of i860 Mr. Norton, while on a visit to Chicago, suddenly died; so that thenceforth Mr. Aiken, although continuing the business under the old style, was in absolute control until the spring of 1863. In 1862 the offices of the house were moved to Room i in the old Board of Trade Building on the north- east corner of La Salle and Soutli Water streets. At this time Mr. Aiken had already attained an influential position in the city, and was recognized as a cautious but still an astute and aspiring financier. In the discussion of the measure B lOGRAPHICAL I35 for the establishment of a national banking system, as elsewhere related, he took an active interest, and through his energy and resourceful character a small group of capitalists was brought into sympathy with the project of founding in Chicago a banking institu- tion under the new law. After the determination was once taken no time was lost. The act had scarcely been adopted by Congress when the promoters of the enterprise made their application for a charter, and the First National Bank of Chicago was immediately authorized to begin business. Mr. Aiken was elected one of the board of directors, and likewise chosen the first president of the new corporation. In this capacity he served with distinction and success until the time of his death, January 12, 1867; then not quite fifty-five years of age, he unexpectedly succumbed to an attack of heart disease. During the later years of life he was also a part- ner in the firm of Davis, Pope & Company, leading members of the Board of Trade, although he himself never actively took any part in speculative or mercantile business. In the resolutions adopted by that body upon the occasion of his demise, he was nevertheless, mourned as "one of the most prominent and active participants in business circles." The minutes spread upon the records of the First National Bank, also, of course, testify to the high degree of esteem and popularity which he enjoyed. In personal appearance Mr. Aiken was tall, straight, and im- pressive; he always walked with an air of authority. In manner he was ever cordial, and as a fact very sociably inclined. Devoted to the opera, and endowed with a strong admiration for the fine arts, he was not neglectful of scientific pursuits. His collection of minerals and corals, known throughout the country, was highly valued by those learned in this department of knowledge. The old Academy of Science was organized in the parlors of his home, on which occasion Professor Agassiz was his guest. In public spirit and charitable work he was not lacking. The Home for the Friendless was, perhaps, the chief object of his concern. As a Christian, he was well disposed toward all religious doctrines; a Unitarian in his views and by profession, he nevertheless attended for many years the Second Presbyterian Church, over which Dr. Patterson presided. Politically he was a staunch Republican. During the war days he contributed much time and considerable means toward the success of the Union cause. The two Sanitary Fairs held in Chicago during the autumns of 1863 and 1864, to raise funds for the relief of the sick and wounded soldiers of the Union armies, received his hearty co-operation, and evoked on his f)art many expressions of sympathy, while obtaining from him not ess valuable practical support. The family residence of Mr. and Mrs. Aiken was at 222 Michigan avenue, on the site where the Auditorium Annex now stands. Here they entertained most hospitably their numerous 136 The First National Bank of Chicago friends, among whom they might claim as intimates many promi- nent men and women of the land. Since the death of Mr. Aiken his widow has traveled exten- sively. Fond of a good entertainment, an interesting lecture, or first-class play, Mrs. Aiken still lives. Her home is with her nephew, George Chapman, 35 Lake View avenue, Chicago. At the age of ninety-five years, that birthday having been cele- brated by her on September 23, 1901, she is still comparatively active in her mental faculties, and young as ever in heart and spirit. TRACY J. BRONSON Tracy J. Bronson was born in Connecticut about 1825. He enjoyed only a common -school education. When he was still a youth he removed to Ohio and engaged in keeping a country store in a town near Cincinnati. Somewhat later, about 1853, he became a member of the wholesale grocery firm of Bronson, Warren & Co., doing business in that city. In 1856 he came to Chicago and embarked in the produce and commission busi- ness, in partnership with George C. Walker, under the name and style of Walker, Bronson & Co. He was likewise connected with the banking house of Tucker, Bronson & Co. In 1861 Walker, Bronson & Co. dissolved, and Mr. Bronson then continued in the general produce business exclusively for his own account and under his own name. Among his friends he counted Daniel Thompson, whose sketch appears elsewhere. Both these gentle- men seem to have desired, chiefly for reasons of health, to leave Chicago. Seeking some other home and occupation they were attracted by sugar planting. In the winter of 1866-67 Mr. Bron- son went to Louisiana, purchased a sugar plantation, in which Charles H.Walker, of Chicago, was also a partner, and continued in this business until his death. Mr. Bronson during his residence in Chicago was prominent in many lines of endeavor. Associated with Mr. Aiken and other enterprising citizens, he was one of the founders and original stockholders in the First National Bank, and served as a member of its board of directors from the time of its organization until 1867. He was thoroughly devoted to busi- ness, and was a bold and successful as well as a large operator on the Chicago Board of Trade during the period between 1856 and 1866. He was recognized as an excellent judge of values, and had the reputation of being a splendid trader. In 1876 he returned to Chicago for a brief visit, and quite unexpectedly died here at the Leland Hotel. Biographical 137 FREDERICK CRUMBAUGH Frederick Crumbaugh was bom at Hagerstown, Maryland, on December 20, 1816. When he was two years of age, his parents removed to Xenia, Ohio, where he lived until twenty years old, in the mean time obtaining an ordinary school education. He then went to Columbus, Ohio, for one year; thence to Mad- ison, Indiana, where he resided until 1856. As a young man he seems to have had a predisposition toward the study of medicine. Through his own endeavors, and chiefly alone, he pursued his prep- arations for a medical career, and finally was granted a diploma by the Transylvania Medical College of Lexington, Kentucky, He then followed his chosen profession during four years at Mad- ison, Indiana. Meanwhile he also acted in various other capacities, being employed as book-keeper for Barber, Buell & Shaw, as cashier in the Firemen and Mechanics' Bank, and being likewise interested as a partner in the drug trade. In 1856, being then forty years of age. Dr. Crumbaugh came to Chicago. Apparently he had accumulated considerable means in early life, for he at once became associated with others in the wholesale dry goods business, under the firm name of Richards, Crumbaugh & Shaw. Their first place of business was located on South Water street, near River street ; a little later at 15 and 17 Lake street, and subsequently at 37 and 39 Lake street. Just prior to the great fire the firm had erected a fine new building on Wa- bash avenue, between Randolph and Washington streets, for their own use. They had occupied this structure only a comparatively short time when the conflagration swept everything before it. The total loss incurred by the copartnership amounted to §300,000. Although one of the most important houses in the city, already established for a period of fifteen years, it was not considered advisable to resume after this catastrophe. After the fire Dr. Crumbaugh did not again engage in active business, although he had a considerable sum invested in the wholesale candy house of Page & Company, then located on Lake street. From i86q to 1872 he served as a member of the board of directors of the First National Bank. Dr. Crumbaugh was stricken with apoplexy one Sunday even- ing while attending the Second Presbyterian Church, of which he was an elder and a devoted member. He was immediately re- moved to his home. No. 848 Wabash avenue, and died there at a somewhat later hour, on March 16, 1879. He left a wife, two sons, and a daughter. 138 The First National Bank of Chicago ELBRIDGE G. HALL Elbridge G. Hall was born at Rutland, Vermont, on April 2, 1815. He received only such education as was afforded by the common schools of that day. In his early youth he was appren- ticed to a mercantile house in his native town. After some unimportant changes he started in the iron trade at Rutland, where be remained engaged in the same pursuit until his twenty- sixth year. He then came to Chicago; at first followed the loan and mortgage business, but very soon, in 1841, opened a wholesale hardware store on South Water street, near La Salle street, in conjunction with William Blair, under the style of Hall & Blair. Considerable difficulty was experienced in placing this venture upon a sound and paying basis. In the meantime there was a removal to a building on Washington street near the river, and then finally, as prosperity increased, to the northeast corner of Lake street and Michigan avenue, where the house is yet located. In 1853 the partnership was dissolved, it being arranged that Mr. Blair should continue in the hardware line, and Mr. Hall retain control of the iron department. At this date Seneca D. Kimbark became associated with Mr. Hall as junior partner, the name adopted being Hall & Kimbark. From time to time others of the Kimbark brothers were admitted to the firm. For many years Mr. Hall devoted himself assiduously to the promotion of this business. Finally, in 1871, when he withdrew from active participation in it— although he retained a silent interest — the house took the title of Kimbark Brothers, and subsequently that of S. D. Kimbark, as it is still known. From 1863 to 1870 Mr. Hall served as a director of the First National Bank, performing in this connection a modest but efficient part in the early development of the institution. Otherwise his mvestments and activities were mostly in real estate. Aside from his daily pursuits, Mr. Hall took little part in the life of the com- munity. He was essentially a man of one avocation. He never held any political office, although in sentiment a Republican. He never sought, but rather shunned, society. Only in one other field did he distinguish himself. To the church of his choice he was devoted. Universalist by education and conviction, he was a regular attendant at St. Paul's Church, and one of its strongest supporters. During the entire period of his residence in Chicago he was a liberal contributor to the funds of the First Universalist Society. He was also for some years a trustee of Lombard Col- lege at Galesburg, Illinois, and added $10,000 to its endowment fund. With Rev. W. H. Ryder, the well known clergyman of those days, he was closely and intimately associated in many philanthropic works. Biographical 139 Personally Mr. Hall was always of a delicate constitution. He was of medium build and fragile physique. His amusements and recreations were in consonance with his spirit. He took great delight in his garden, its flowers, and botanical research. His tastes were aesthetic; he himself was more than an ama- teur in sketching and drawing. He was twice married; first, in 1850, to Elizabeth Kimbark, and after her death, in 1869, to Addie Moore, who still survives. His widow subsequently mar- ried Rev. Sumner Ellis, of this city, and since his death has been well known as Mrs. A. M. H. Ellis. Mr. Hall died on Friday, April 13, 1877, aged 62 years. CHARLES HITCHCOCK Charles Hitchcock, son of Charles and Abigail L. Hall Hitch- cock, was born at Hanson, Plymouth County, Massachusetts, on April 4, 1827. He was of a long line of distinguished ancestors, who originally came from England, in 1644. His early years were spent on the family farm and in attendance upon the public schools of that neighborhood. In 1846 he entered Phillip's Academy, An- dover, Massachusetts, and one year later matriculated at Dart- mouth College. Throughout his school career he devoted himself assiduously to classical studies, and was likewise noted for his pure and faultless English style. At the close of college life, he began the study of law in the office of Daniel Blaisdell at Han- over. One year subsequently, in 1852, removing to Washington, he passed some time in giving Latin and Greek instruction, and lecturing upon various subjects. Finally, in 1853, he joined the senior class of the Dane Law School at Cambridge, Massachusetts. Upon graduation, in 1854, he was admitted to the bar, and soon thereafter coming to Chicago commenced the active practice of his profession. Within a short time he attained a prominent posi- tion, and was widely recognized as a man eminent among his associates, assiduous in his purposes, and above all thoroughly honorable in his dealings with courts and clients. Mr. Hitchcock only twice relaxed his early adopted resolution not to accept public office. Immediately after the great fire of 1871, upon the urgent solicitation of those who desired in that emergency to protect the best interests of ihe community, he was chosen a member of the board of county commissioners, which position he resigned as soon as he considered the occasion for his services had passed. He was also elected to the state constitu- tional convention of 1870, and when it met was chosen to preside over its deliberations. By reason of his strong personality, his skill as a presiding officer, his acquaintance with the fundamental 140 The First National Bank of Chicago principles of law, and the confidence which he inspired, he made a strong and lasting impression upon many provisions of the or- ganic law of this state. In 1872 Mr. Hitchcock was selected as special counsel for the First National Bank, serving the institution in that capacity with devotion and the greatest solicitude during several succeeding years. On July 10, i860, he was married to Annie McClure, of Chicago. Mr. Hitchcock always devoted much of his time and thought to the study of the highest models of English literature. In his profession he was known not merely as an advocate, but likewise as a scholar. He died on May 8, 1881. Hon. Melville W. Fuller, now Chief Justice of the United States, on presenting the memorial resolutions to the United States Circuit Court, paid him a glowing tribute. SAMUEL G. D. HOWARD Samuel G. D. Howard was born at Preble, New York, during 1818. He received only a common-school education. From the age of fifteen years to the time of his death he led a very active life. While a youth he removed to Akron, Ohio, where, together with three brothers, he engaged in mercantile business. A little later he went to Pittsburg, Pennsylvania, and entered the employ of a large dry goods house, where he remained until he was nearly twenty years of age. Then with an elder brother, who had like- wise been associated with him in Akron, he came to St. Charles, Illinois, and soon opened a dry goods store. He also started an establishment at Dixon, Illinois. In those days, however, it was exceedingly difficult to secure the necessary stock from the East. Mr. Howard soon found his enterprises impracticable, and aban- doning them to his brother, removed to Chicago. Here he engaged in the lumber business with L. P. Hilliard, after- ward with George C. Morton, and again with David Chase, all of whom are now deceased. At one time the firm name was Hilliard, Howard & Morton. In these early days he often made trips to northern Michigan for the purchase of lumber. He like- wise frequently visited the Michigan Peninsula. On one of these journeys he met Miss Caroline D. Morton, of St. Joseph, to whom he was subsequently married, on January 8, 1852. Besides the lumber business, Mr. Howard was successful in real estate, and had at the time of his death amassed a consider- able fortune. In the winter of 1862-63 ^^ ^^s one of the men interested in the organization of the First National Bank of this city; was elected to its first board of directors, and served in Biographical 141 this capacity until his decease. He died at Jacksonville, Illinois, on September 1 5, 1866. During his lifetime Mr. Howard was recog- nized as a prominent and influential resident of Chicago. BENJAMIN P. HUTCHINSON Benjamin Peters Hutchinson, son of Ira and Hannah Hutch- inson, was born near Danvers, Massachusetts, on February 24, 182Q. His early years were passed upon a farm. While still a young man he removed to Lynn, and after a short apprenticeship, began the manufacture of shoes. In this venture he was not successful. A little later, going to Boston, he pursued for two years the com- mission business. In 1856 he came West, and settling in Milwaukee remained there two years; then he came to Chicago, where he lived nearly continuously from 1858 until the day of his death in 1899. Mr. Hutchinson started a commission ofifice on South Water street, but subsequently joined the Board of Trade, and was extensively engaged in grain speculation. The best and most successful side of his career was, however, as a packer of pro- visions; one of the first packing houses at the Union Stock Yards was erected by him, and for a time he had the largest establish- ment of this kind in the country. In 1863 he was one of the men originally participating in the inauguration of the First National Bank of Chicago, of which for four years he served as a director. In September of 1870 he founded the Corn Exchange National Bank with which he was associated for many years. He was one of the earliest stockholders and promoters of the Traders' Insurance Company, and was active in many other financial insti- tutions of Chicago. During his long career as a member of the Board of Trade, and an operator in grain, he had an exceedingly varied experience. For several years he was one of the best known citizens of Chicago, and was always highly esteemed by those who came in close contact with him. Toward the end of his life he retired from business, transferring many of his large inter- ests to the care of his son, Charles L. Hutchinson. He died at Chicago, on March 16, 1899. Mr. Hutchinson married, in 1853, Sarah M. Ingalls, of Lynn, Massachusetts. They had six chil- dren, four of whom are still living. 142 The First National Bank of Chicago HENRY M. KINGMAN Henry M. Kingman, son of Marshall and Abby Fairbanks Kingman, was born at Winchester, New Hampshire, on Novem- ber 29, 1842. In 1848 he, together with his parents, removed to Boston, Massachusetts, where he resided some eight years, in the mean time attending school at Watertown, one of the suburbs of the city; then the family returned to Winchester, where the lad continued his education, which he finally completed at Power's Institute, Bernardston, Massachusetts. He then for a short time, in 1861, lived in Albany, New York, where he was employed in the office of a lumber firm; and afterwards, in 1862, when twenty years of age, removed to Dubuque, Iowa. Upon his arrival there he was first associated with his cousins, R. E. and J. K. Graves, in the local branch of the State Bank of Iowa. He served for a time in the First National Bank of that city, and subsequently, in 1871, became cashier of the Commercial National Bank. This position he resigned in 1881 in order to come to Chicago to be assistant cashier of the Hyde & Leather National Bank. In August, 1882, he accepted the position of assistant cashier in the First National Bank. In this capacity he displayed marked ability, and inde- fatigably labored to promote the interests of the institution. In recognition of his services, he was in i8gi — when already stricken with his final malady — promoted to be second vice-president, and for sixteen months prior to his death was carried with full pay upon the rolls of the bank. In August, 1890, he first yielded to the inroads of disease. During his entire career he had unremit- tingly dedicated himself to hard and strenuous labor; as the result he had completely worn out his physical constitution. Ever indus- trious, and never shirking any amount of toil, he was neverthe- less always most affable and genial. Upon his first attack of ill health he went, temporarily as he supposed, to the Sanitarium at Alma, Michigan. Here he remained some months, and then, his condition not improving, he rejoined the members of his family in Grand Rapids, Michigan, where they were visiting rela- tives. There he died, on December 16, 1891. Mr. Kingman always enjoyed an excellent reputation. At the time of his enforced retirement from business he had the brightest prospects before him; was blessed with a loving family, counted numerous warm friends, and was held in high esteem by all who came in contact with him. He was prominent as a Universalist, a Knight Templar, and a member of several clubs. A widow, Emerette Randall, three daughters, an aged mother, and three sisters survived him. Biographical 143 EDWARD F. LAWRENCE Edward F, Lawrence, son of Benjamin F, and Elizabeth Fenelly Staples Lawrence, was born at Groton, Middlesex County, Massachusetts, on October 29, 1835. His ancestors had resided in this town since 1639, when John Lawrence moved thither from Charlestown, Massachusetts, having previously migrated from Wisset, in Lancashire, England. When young Edward was only two years of age, the family home was transferred to Belvidere, Illinois, then in the midst of the western wilderness. Here, among the influences naturally prevailing in pioneer life, which so strongly tend to awaken the innate energies and active powers of man, the child grew up. This period was not lacking in opportunities for mental im- provement. His early tutor was Rev. Arthur B. Fuller, a brother of the gifted Margaret Fuller d'Ossoli. When twelve years of age, the boy entered upon a course in Lawrence Academy at Gro- ton, where he attained exceptional honors. Several times during his school career he made the long trip by stage, canal, and steamboat between his home and the East. Then, in 1850, when only fifteen years of age, he began active life as a clerk in a coun- try store at Belvidere. Although his father was then a merchant in that town, the lad was placed in the employ of a stranger, where work would not be tempered by any special privileges. After two or three engagements in various stores of the locality, he was finally apprenticed to Whitney & Fenno, dry goods mer- chants at Boston, Massachusetts, who were widely known, and en- joyed a large trade. With this house he continued six years, during which interval he familiarized himself thoroughly with the different branches of the business, not only in the office and store, but likewise by traveling for a time throughout the west- ern states in the interests of his employer. In 1858 young Lawrence, then twenty-three years of age, se- lected Chicago as the place of his permanent abode. Coming hither he, together with his father and David Ballentine, a well- known citizen of that time, opened a commission house. Upon this occasion he likewise joined the Board of Trade, of which he continued a member until his death, including a period of very nearly forty years. In the course of his residence at Chicago, Mr. Lawrence was associated in many enterprises of importance. In early days — again with his father and Mr. Ballentine — he was part owner in a salt mine at Saginaw, Michigan, and likewise es- tablished there the first shipping line for the transportation of lumber in large quantities upon the Great Lakes. Subsequently, in 1885, he became president of the Brazil Block Coal Company. 144 The First National Bank of Chicago His skillful management of this corporation during the strike of i8gi, and its successful issue from this crisis, under his guidance, are to be reckoned among his most noteworthy achievements. Mr. Lawrence became, in 1869, a member of the board of di- rectors of the First National Bank, on which he sat until his demise in 1898. For nearly twenty-nine years he assiduously and devotedly served the institution. Among all those who have been connected with it, he ranks one of the foremost by reason of the lengthy period of his service, his strict attention to details, and the influence he exerted upon its affairs. For many years he was a member of the discount committee, had an of^ce at the bank, and daily spent considerable time in passing upon matters which were presented to him for consideration. In testifying to their sorrow, the board of directors, after his death, declared "his service as a director was made of uncommon value by the excellence of his business judgment, and the large amount of time he devoted to the bank, willingly and without stint. His methods were ever straightforward and honorable, bearing the mark of his fine integ- rity and open and generous character. He won the confidence of all who knew him by deserving it." Mr. Lawrence was also one of the directors of the Columbian Exposition, being a member of the original board, and four times re-elected. He likewise served as a member of the Committee on Ways and Means, and that on Grounds and Buildings, as well as chairman of the Committee on Ceremonies. In whatever enter- prise he was interested, he was always selected as the best fitted to care for its financial direction and supervision ; and in this depart- ment he was almost invariably successful in the results which he achieved. After i8qi he retired from his general activities, except in the case of the First National Bank, over the interests of which he still faithfully watched. He also retained his financial invest- ments in many industrial and mercantile organizations. For many years Mr. Lawrence was a member and an official of Grace Episcopal Church; he was treasurer of St. Mary's Hos- pital for Women; likewise a member of the Chicago Historical Society; and a governing member of the Art Institute. In his public and private charities he was ever liberal, as well befitted a man of his kindly and benevolent disposition. Politically he was a Democrat, but partisanship never deterred him from casting his vote and his influence for the man whom he conscientiously believed best fitted for office. Toward the close of his life he became an enthusiastic devotee to "ye gentle sport" of fishermen. In this pursuit he loved to spend his summer leisure while cruising on his private yacht upon the Great Lakes. During this season his headquarters were at Miltona, Michigan. On December 23, 1898, Mr. Lawrence was called to his last reward, passing into the mists of the future at Biographical 145 his home in Chicago, surrounded by his devoted family and by many sorrowing friends. His widow, Mary Ballentine Lawrence — the daughter of his early business associate — whom he married on May 23, 1861, and his son, Dwight Lawrence, a lawyer, sur- vived him. HENRY B. LEWIS Henry Byron Lewis was born in February, 1825, on a farm in Madison County, New York. His education was received in the public schools of his native village, and during one term at the Morrisville Academy. At the age of eighteen, being obliged to leave school, he began life for himself. His first employment was in the office of the IJUcajDaify Gazette, where he proposed to learn the printer's trade; but after an experience of six months he ac- cepted a more desirable position in a store at Hamilton, New York. For the next ten years he was engaged in mercantile business, either in the employ of others or on his own account. Coming to Chicago in 1855, he started as a clerk with Williams & Avery, lumber dealers; but at the end of one year formed a partnership in the same business with Walter Lull. Anticipating the panic of 1857, he soon sold his interest to his partner, and sub- sequently established himself in association with his cousin, A. M. Lewis, and a Mr. Newell, in the wool trade on Kinzie street. About the same time he also became a member of the Board of Trade. In i860 he moved his warehouse and offices to the corner of South Water and Franklin streets, where he remained until burned out by ■ the great fire. After that date, he engaged in real estate, his firm being successively known as Lewis & Brooks, Lewis, Brooks & Kent, and Lewis & Carter. For the last fifteen years of his life he practically retired from active business. From 1867 to 1869 Mr. Lewis was a member of the board of directors of the First National Bank, in which capacity he ren- dered most efficient service. It was largely through his personal influence that Lyman J. Gage was originally induced to accept the position of cashier in this institution. Until 1867 Mr. Lewis resided on the West Side. He then moved to Englewood, which he named. In politics Mr. Lewis was a Republican, although in local elec- tions he always supported those whom he deemed the best qualified, regardless of their political affiliations. He served as a mem- ber of the Hyde Park board of trustees, of the local board of edu- cation, and of the county board of education. In religion he was a staunch Universalist, but during the residence of Robert Collyer, the blacksmith preacher, in Chicago, was among his most ardent supporters. 146 The First National Bank of Chicago Mr. Lewis died on June 5, 1901, at his residence, 6012 Indiana avenue. On February 24, 1848, he married at Eaton, Madison County, New York, Nancy B. Houghton, who still survives him. They had one child, a daughter, now Mrs. W. W. Carter. BYRON RICE Byron Rice, son of Julius H. and Roene Foster Rice, was born at Swanton Falls, Vermont, on March 3, 1827. When eleven years of age, he, together with his parents, removed to Glens Falls, New York. Here his father became a leading merchant and citizen. After a good academical education, and a short period spent in the store, the youth obtained a clerkship in a large mercantile es- tablishment at Brooklyn. A brief visit to Glens Falls occurred in 1848, and then, during that autumn, he, with a sister, made a trip to the Far West. He traveled from Buffalo to Milwaukee by steamer, and thence by stage to Lancaster, Wisconsin, visiting likewise several other places where he had friends. At Lancaster he read law for a few months with Judge Barber ; and subse- quently formed one of a surveying party in northwestern Wiscon- sin. Immediately afterward he returned to Glens Falls, where he embarked in business for himself, in connection with two other gentlemen. They opened a general store, and also had lumber in- terests on the northern Hudson. In March, 1850, he joined a party en route to California, trav- eling via the Isthmus of Panama to San Francisco. A brief visit to the mines convinced him that he was not fitted for such a rough life ; so returning to San Francisco he engaged in the business of miners' supplies. Later he removed to Sacramento, and during July, 185 1, he returned to the East with a considerable sum as the fruits of his sixteen months' experience. In spite of his own de- sires, he yielded to the wishes of his parents that he should not go back to California. Early in 1852, together with others, he bought some timber- land in Potter County, Pennsylvania, and in southwestern New York ; and then for a few years was engaged in promoting the interests of the company at Olean, New York, where its large mill was situated. After selling out his holdings in this company, he removed to Syracuse, and there assisted in organizing works for the development of Solar coarse salt. He served as secretary of the corporation then organized until 1861, and to the day of his death retained his stock m it. He also at this time opened a flour store, and had a share in a lumberyard. At the request of John D. Norton, of Syracuse, and a member of the firm of Aiken & Norton, of Chicago, Mr. Rice came to the Biographical 147 last-named city in the fall of i860, with the intention of starting in business. Upon Mr. Norton's death, soon thereafter, he tempora- rily returned to his old home, but in January, 1861, finally settled with his family in Chicago. He then became a partner of E, W. Densmore in the general flour trade, joined the Board of Trade, and the following year bought out his partner's interest. In the winter of 1862-63 he was one of the most active men in the organization of the First National Bank of Chicago ; was elected a member of the first board of directors, and served on that body until 1868, rendering meanwhile most efficient and valu- able services in the development of the institution. Soon after the foundation of the bank, Mr. Rice, together with his friend Webster Batcheller, embarked in the wholesale lumber business. Until the end of 1867 he devoted his entire energies to the promotion of this venture, when, as the result of an attack of typhoid fever, superinduced by too close attention to business, he was obliged to retire from all his enterprises. At this time he likewise resigned as a director in the bank, although he held his stock in it until the day of his decease. In June, 1856, Mr. Rice was married to Emma L. Sanford, of Ballston Spa, New York. For a time after his removal to Chicago he resided in the city proper; but in May, 1869, upon his retirement, removed to Evanston. In religion he was a Presbyterian, and throughout life was exceedingly philanthropic; he was ever ready to aid any worthy charity. During the Civil War he contributed liberally to the northern cause, both for the equipment of troops and for the hospital service. After the great fire he gave freely to relief work. He was active as a Whig and a Republican, but never cared for public office. For twenty-one years Mr. Rice was an invalid, having suffered a paralytic stroke which affected the use of his hands and his power of speech. This long period of seclusion from the busy world was cheered by many warm personal attachments. While he enter- tained himself by reading — especially American history and biog- raphy— music, pictures, and flowers were his delight. Mr. Rice died at his home. No. 635 University Place, Evan- ston. Illinois, on May 17, 1888, at the age of sixty-one years, and was buried at Graceland. A widow and four children survived him. As a man and citizen he was highly esteemed by those who had the good fortune to know him, and by them his memory will long be cherished with affection. 148 The First National Bank of Chicago CHARLES J. SCHMITT Charles J. Schmitt was born at Elberfeld, Germany, about 1830. He emigrated to America probably in 1855; immediately came West, and entered the employ of Hoffmann & Gelpke, German bankers of this city. He remained with them several years until the time of their failure, when he became connected with the firm of Haskell & Barker, car-builders, Michigan City, Indiana. In 1865 he was engaged as general book-keeper in the First National Bank, and subsequently, in 1866, was promoted to be assistant cashier, which position he held until his decease, in 1868. JOHN B. SHERMAN John B. Sherman was born at Beekman, Dutchess County, New York, in January, 1825. His early education was received in the common schools of that neighborhood, much time during his youth being spent on the farm. When nineteen years of age he obtained a position as clerk in a country store, where he re- mained until 1849. The gold fever, then prevalent, attracted him to California, his journey thither being made by way of Mexico. With peculiar good fortune he located and began mining near Georgetown in the immediate vicinity where gold was first dis- covered. Success attended his efforts, so that after one year he returned with a small competency to his native town. He again soon became restless; and removing, in the autumn of 1850, to Ken- dall County, Illinois, settled upon a farm which he had purchased. Country life, however, did not any longer please him. He forth- with came to Chicago, and organizing the firm of Black & Sherman engaged in the commission business. He first rented, in Decem- ber, 1855, the old Bull's Head Stock Yards on West Madison street, and subsequently the Myrick Yards at Cottage Grove avenue and Thirty-ninth street, associating himself in the former enterprise with D. K. Belding, and in the latter with his brother, J. N, W. Sher- man. There were then four distinct cattle markets in Chicago. Mr. Sherman, with great sagacity, realized the inconveniences of this state of affairs, and foresaw the necessity either of a regu- lar co-operation or of a consolidation of these varied interests. As a result of his activity, the Union Stock Yards and Transit Company of Chicago was incorporated in 1866. Prior to the full execution of this project, Mr. Sherman for personal reasons re- moved to Poughkeepsie, New York. He had scarcely arrived there, however, when upon the death of F. E. Bryant, in the spring Biographical 149 of 1867, he was chosen general superintendent of the new company and returned to this city. At a later date he was chosen vice- president, general manager, and director. His entire time and care were for many years devoted to the advancement of this corporation. Not only the management but even matters of the most minute character received attention from him. For this latter purpose he made daily trips throughout the yards, directing every detail of their organization. They were according to his ambition to be not merely the greatest but likewise the best managed live- stock market in the world. Through his efforts, and as a result of his activity, this end has been fully achieved. In 1863 Mr. Sherman was one of the organizers of the First National Bank, and until 1867 served as a member of its board of directors. He was also quite active in real estate transactions. As a citizen he was devoted to all which conduced to the public welfare. In the improvement and beautifying of the parks and boulevards he was ever foremost. For many years he served as a member of the board of South Park commissioners, and was for some time president of that body. On February 25, 1902, Mr. Sherman expired after a brief ill- ness. In his death the community lost a notable figure and a promi- nent advocate of pure politics. His entire life was that of a model citizen; unassuming in manner and plain in his garb, he was thoroughly domestic in his disposition. A wife, a son, and a daugh- ter, Mrs, D. H. Burnham, survived him. HORACE M. SINGER Horace M. Singer, the son of John V. and Annie Collins Singer, was born at Schenectady, New York, on October i, 1823. When he was only one year of age, his parents removed to Con- neaut, Ashtabula County, Ohio, residing there for the next twelve years, at which latter date they again migrated, arriving at Lock- port, Illinois, on October 31, 1836. In this last-named place they had their home during many years. The education of young Horace had already been concluded before his departure from Ohio; the frontier district school of that early day was the only institution of learning frequented by him. While still a youth he became attached to the engineering corps of the Illinois and Michigan Canal; was soon promoted to be super- intendent of repairs, and continued at this occupation until 1852. At this time he, together with Mancel Talcott, embarked on a small scale in the business of stone quarrying, manufacturing, and deal- ing. Their establishment and its resources were steadily and gradually developed, until finally it became one of the principal 150 The First National Bank of Chicago stone companies in the country. In January, 1879, he was elected a member of the board of directors of the First National Bank, in which capacity he served until 1888. During this period he ren- dered valuable and efficient service to the institution, in which he was deeply interested. In every respect Mr. Singer was a public-spirited citizen. Through his business relations, he was naturally at the forefront of the largest building operations undertaken in Chicago. He was also more or less interested in politics. A member of the General Assembly of the state in 1866; he sat as a county commissioner in 1872, and was chairman of the building committee intrusted, after the great fire, with the erection of the new county court-house on the North Side. In religion he was absolutely undenomina- tional. Mr. Singer married on April 6, 1847, at Lockport, Illinois, Harriet A. Roberts, and three sons were born to them. Practically retiring from business in 1882, he nevertheless retained his interest in the stone company with which his name was associated, and likewise in several other enterprises, until the day of his death. He removed, in 1892, to Pasadena, California, where, establishing a beautiful home, he lived in retirement until December 28, 1896, when he was called to his last reward. His remains were brought back, for burial, to Lockport. HENRY R. SYMONDS Henry R. Symonds was born on January 11, 1840, at Niagara Falls, New York. He had the opportunities of a common-school education, supplemented by private instruction, until his sixteenth year, when he accepted employment as an office boy in a local bank. Little by little he worked his way up to a clerkship; and at nineteen years of age felt that he was capable of larger and more remunerative endeavor. Seeking for some better opening, he finally determined to try his fortune in the growing city of Chicago. Hither he came, and soon was serving as teller in the banking house of Aiken & Norton. Within a short time he had won the confidence and good will of Mr. Aiken, who, as soon as he had become familiar with his capacities, and with a view to improving his position, advised him to seek work elsewhere. Thus it was that young Symonds, just as he reached his majority, was engaged as cashier by Mr. C. B. Blair, who subsequently reor- ganized his business as the Merchants' National Bank. In this employment he remained for eight years. In 1869 he was chosen to be assistant cashier of the First Na- tional Bank, serving in that capacity until 1882, when he was pro- Biographical 151 moted to be cashier, and subsequently, in i8gi, to be vice-president; in 1882 he was also elected to the board of directors, on which he sat until his decease. In the various positions which he filled during the twenty-three years of his association with this institu- tion he was invariably regarded as a man sound in judgment and endowed with a high degree of skill for the administration of financial affairs. He always devoted himself conscientiously and willingly to his daily tasks; no thought of any outside occupation, speculation, trade or political advancement, ever interfered with the proper performance of duty. Mr. Symonds was twice married, first to Julia Ackley, of New York, who died in 1874; and subsequently, in 1876, to Char- lotte L. McKay, of Chicago. By his first wife three children, by his last four, were born to him. Long years of toil in the pursuit of his profession ultimately undermined his health; for a long time he struggled against tlie increasing weakness of his physical system. In January, 1892, however, he surrendered to the advice of physicians, and thereupon went to Jacksonville, Florida, in search of relief; but it was too late, for on March 26, 1892, surrounded by the members of his family, he breathed his last. Of him, and as his memorial, his associate directors in the First National Bank truly declared that: " His clear comprehen- sion of the great trust reposed in 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." MANGEL TALCOTT Mancel Talcott, the son of Mancel and Betsy Talcott, was born October 12, 1817, at Rome, Oneida County, New York. He acquired an ordinary school education, which was by necessity cut short, and then for a few years engaged in farming. In 1833 he started westward ; coming by boat to Detroit, he tramped across Michigan, and finally arrived at Park Ridge, subsequently part of Jefferson — near the future city of Chicago. Determined to settle here for life, he married Mary H. Otis, on October 25,1841, and re- sumed the occupation of farming for a livelihood. The California gold fever attacked him in 1849, and he forthwith worked his way across the western half of his continent. Somewhat disappointed, but still with unabated energy, he returned to Chicago three years later. This expedition seems to liave been the turning-point in his career, for upon arriving once more on the shores of Lake Michigan, he concluded to be something more than a farmer. Chance gave him the opportunity to enter the employment of the 152 The First National Bank of Chicago Illinois & Michigan Canal Company, in which service he made the acquaintance of Horace M. Singer, like himself engaged at hard labor. The friendship between these two men gradually ripened, so that within a few years they decided to join their forces. Thence originated, in 1854, the copartnership in the stone business, which for many long years has been known as the Singer & Talcott Stone Company. Mr, Talcott thus found his chief oc- cupation in life, although he was interested in several other im- portant enterprises. In 1867 he was chosen a director of the First National Bank, in which capacity he served until 1878. He was also president of the Union Stock Yards National Bank ; presi- dent of the Excelsior Stone Company, and a large stockholder in the West and South Division Street Railway Companies. A strong Republican in politics, Mr. Talcott was nevertheless disposed to be independent ; locally he filled several important posts. In 1863-1864, and again in 1865-1867, he served as alder- man; in November, 1871, was chosen one of the first board of county commissioners, and on December 14, 1871, was elected by that body a member of the police board, of which he at once became president, holding that position until 1872. Frequently he was named as a prominent candidate for the mayoralty. In religion, as in business and politics, he was straightforward, and ever ready to do his part. By creed he was a Universalist. His frank method of speech and action won for him a unique reputation ; furthermore, his striking personality of figure seemed to augment his originality. When he died, on June 5, 1878, he was mourned by many thousands as a good citizen and faithful friend. DANIEL THOMPSON Daniel Thompson, son of Daniel and Deborah Fitch Thomp- son, was born at Saccarappa, in the town of Westbrook, Maine, on June i, 1824. In early childhood he lost both parents. After some primary training in local schools, he was sent by friends to New York City, where he prepared for college. In 1842 he gradu- ated as a civil engineer from Norwich University, Norwich, Con- necticut. Immediately afterward he started on a whaling voyage, which lasted two years. Scarcely had he returned from this ad- venture when his disposition for travel caused him to migrate to the West. After roving for some time, he finally settled at Min- eral Point, Wisconsin, where he obtained employment as book- keeper in a bank, and later as superintendent of a shot tower. Subsequently, in 1846-1847, he removed to Pekin, Illinois, engaging there in a mercantile and commission business, and likewise be- coming interested in pork-packing. After seven years in this Biographical 153 town, lie transferred his residence to Chicago, and at once entered the grain elevator business with Flint, Wheeler & Co. Later the firm became Flint & Thompson, and then Flint, Odell & Co. It owned at first, and subsequently controlled, the Rock Island elevators, on the south branch, just south of Twelfth Street. For a number of years Flint & Thompson were also pork-packers. During his residence in Chicago Mr. Thompson was identified with many other enterprises. He was a director in the Union National Bank ; likewise, from 1869 to 1871, in the First National Bank; and in the Chicago City Street Railway. In the latter cor- poration, together with Samuel M. Nickerson, he owned for many years a controlling interest, and also served as superintend- ent of the road. From 1854 to 1882 he was a member of the Chi- cago Board of Trade, but although active on Change, was never known to speculate. In 1880, his health warning him that he must seek another climate, he removed from Chicago to Louisiana, there purchasing Calumet Plantation, on Bayou Teche, where he passed the remain- der of his life. During sixteen years he devoted himself to the planting and the manufacture of sugar. Together with his son, Wibray Thompson, he also engaged in scientific experimenta- tion. The fruits of his labors have been frequently published in the bulletins of the chemical division of the United States Depart- ment of Agriculture, in scientific journals, in trade papers, and elsewhere. He long was distinguished as one of the most pro- gressive, scientific, and best equipped planters and manufacturers. The Calumet Plantation, including some 6,000 acres, became famous throughout the world. Mr. Thompson was especially in advance of his competitors in the employment of fertilizers, in the chemical and physical investigations of his laboratory, and in scientific research. Practical results, which previously had been scouted as absurd, were fully realized by him. In the increase of the quantity of sugar produced from a certain extent of land, or from a given number of plants, his achievements were enormous. In the mechanical and financial organization of his business he also attained great success. Under his administration the pro- duct of a ton of cane was increased from an average of one hundred to two hundred pounds of refined sugar. While residing in Louisiana he became a member of the New Orleans Board of Trade, the New Orleans Sugar Exchange and many other southern commercial organizations. Outside of his business career, Mr. Thompson also achieved high recognition in many departments. During his residence in Chicago he became a charter and life member of the Chicago Audubon Club, a life member of the Chicago Academy of Sciences, and of the Chicago Historical Society, and was also associated with the Art Institute. With J. Y. Scammon he was identified with 154 The First National Bank of Chicago almost every public enterprise undertaken in Chicago between 1865 and 1875. He was especially interested in the purchase and erection of the telescope and observatory originally belonging to the old Chicago University. During his later years in Louisiana he never relaxed his interest in such matters, but was here likewise identified with numerous scientific, agricultural, and art associations. Throughout life he was a devotee of horticulture and agriculture; took great pleasure in all things beautiful in nature, and was also an admirer of animals. At one time he kept a small stable of fine horses, including many noted trotters of the day; and was also president of the Chicago Trotting Park Association, the prede- cessor of Washington Park. He was naturally a hunter, fisherman, and sailor. He sailed some of his craft in the first yacht races off the harbor of Chicago. During his life he traveled widely, and wherever he went made hosts of friends, whom he counted in every community. Although in his charities peculiarly modest, he was a liberal subscriber to many philanthropic objects. The Home for the Friendless and the Old Ladies' Home were particularly favored by him. In religion a Unitarian, he was broadly tolerant in all matters of creed. He re- fused all public trusts, and so great was his antipathy against such activity that he even deterred his son from entering political life. In the business world he accepted few positions in which he was obliged to handle other people's affairs. In 185 1 Mr. Thompson married Georgine Urquahart Wibray, of New York City, by whom he had two sons, only one of whom, however, reached manhood. It is he, Mr. Wibray J. Thompson, who was so long associated with his father, and who ultimately succeeded to his affairs. After having passed more than four years as an invalid from a stroke of apoplexy, which he suffered March 11, i8g6, Mr. Thomp- son died at his home on Calumet Plantation, Bayou Teche, Lou- isiana, on May 8, 1900. His remains were buried at Graceland Cemetery, Chicago. GEORGE WEBSTER George Webster, son of Eliphalet K. and Harriet Slade Web- ster, was born at Gilsum, Cheshire County, New Hampshire, on April 24, 1824. After completing a high-school course at Thetford, Vermont, he followed the avocation of teacher in his native state until his twenty-first year. Upon coming of age he started a general store at Alstead, New Hampshire, but after three years of varied fortune his establishment was destroyed by fire. He then engaged in the retail dry-goods business at Boston, Massachusetts, Biographical 155 until 1853, when he sold out, and moved to Toledo, Ohio. Here he began to contract for the building of railways, but soon accepted an offer of employment from the Lake Shore & Michigan South- ern Company. For two years he continued in this occupation, meanwhile directing the construction of the line into Toledo. In 1855 he came to Chicago, and together with Daniel Baxter opened a produce commission house, under the name of Webster & Baxter, on South Water street. The establishment was gradu- ally transformed into a grain business, and likewise at one time handled large quantities of dressed hogs. When the Chicago Board of Trade was incorporated Mr. Webster became one of its charter members, paying for his admission fee, as he frequently afterwards recounted, the sum of five dollars. During the Civil War his firm was awarded the contract of supplying the forage for the Army of the Potomac. Until 1891 Mr. Webster continued a member of the Board of Trade, during which time he sat upon several occasions as a member of its directory, and attained a prominent and influential position. Soon after the great fire the copartnership existing with Daniel Baxter was dissolved, and thenceforward the business remained under the exclusive control of Mr. Webster, until 1885, when his son, George W. Webster, became associated with him as a partner. From 1867 to 1870 Mr. Webster served as a member of the board of directors of the First National Bank. During his term he was assiduous in his devotion to the interests of the institution, and it was largely through his personal influence and persuasion that Lyman J. Gage was in 1868 selected for the post of cashier. He was also for some years a director of the Union Stock Yards National Bank. Prior to the fire Mr. Webster had made large investments in real estate, and by this calamity suffered severe losses. Through- out life, however, he was chiefly devoted to his immediate business. He never took any special part in politics, and was not interested in any outside lines of endeavor. In early life, while residing in New Hampshire, he married Rebecca A. Brooks, who, with two sons, survived him. Mr. Web- ster died at his residence, 314 Belden avenue, in the city of Chicago, on February 22, 1893. 156 The First National Bank of Chicago HENRY M. WILMARTH Henry M.Wilmarth was born at Newport, New Hampshire, on January 25, 1836. By ancestry thoroughly puritanical in be- lief and character, the boy grew up under the influence of high and rigorous ideals, while his education was limited to such facili- ties as his native place afforded. Then he became, for a brief period, the aid and assistant of his father, who was both farmer and manufacturer. When twenty years of age, he struck out for himself, and push- ing westward as far as Chicago settled in this strange city. Anxious to earn an honest living, he gladly embraced the offer of employ- ment in the gas-fitting establishment of Gerould Brothers, then a prominent firm in that line of business. When two years after- wards both partners died, Mr. Wilmarth was selected to admin- ister their affairs, and later became sole proprietor of the house. As H. M. Wilmarth & Co., a partnership subsequently formed between himself and his brother, it built up a lucrative business and a wide reputation. Close application to business, and assiduity in every undertaking rapidly brought their reward. In 1874 Mr. Wil- marth was elected a director of the P'irst National Bank, and for the next eleven years, until the day of his death, devoted much time, thought, and care to the upbuilding of this institution. His only political service was as alderman from the old Fourth Ward in 1865-1866, for by disposition he was adverse to public life. In religion he was independent and broad-spirited ; for many years he regularly attended Professor Swing's church. As a citizen and man lie was well known in the community where he made his home. A mem- ber of several clubs, however reticent in manner toward strangers, he was with his intimate friends most genial, cordial, and cheerful. Mr. Wilmarth married on May 21, 1861, Mary J. Hawes, of New Bed- ford, Massachusetts, by whom he had two daughters. On Febru- ary 27, 1886, after a brief illness, he died of a paralytic stroke. II BIOGRAPHIES OF PERSONS STILL LIVING, AT ONE TIME ASSOCIATED WITH THE BANK, BUT WHOSE CONNECTION WITH THE INSTITUTION HAS BEEN SEVERED BENJAMIN F. ALLEN Benjamin F. Allen, son of John and Jane Allen, was born at Salem, Indiana, on April 27, 1829, and was educated at the public schools. When seventeen years of age he joined the army, which was then being organized to invade Mexico. He participated in all the battles of the Mexican War ; was present at the taking of Vera Cruz and at the capture of the City of Mexico, remaining in the latter place until its evacuation by the American troops. He then returned to Franklin, Indiana, and subsequently, in the autumn of 1848, removing to Iowa, settled at the point known as Fort Des Moines. Here he first engaged in the establishment of a country store. As Mr. Allen accumulated some fortune, he gradually became interested in banking. The Bank of Nebraska, officially situated at Omaha, but transacting the principal part of its affairs in Iowa, passed under his control ; with good credit among financiers and capitalists, he was able by means of his indorsement to float the notes issued by this institution. The many hundreds of these bills were ultimately redeemed by Mr. Allen. On January i, 1859, under his inspiration, the State Bank of Iowa was organized. On its directorate Mr. Allen served as a member. He likewise obtained control of several other banks, in which he was either president or at least the controlling factor. In 1867 Mr. Allen was appointed receiver for the Mississippi and Missouri Railroad Company, which proved a source of great ad- vantage to him. About the same time he opened a New York house, under the name of Allen, Stephens & Co. In 1871 Mr. Allen was elected a member of the board of di- rectors of the First National Bank of Chicago, in which capacity he served until 1874. But his principal activity in this city was in connection with another institution. On May 29, 1873, he bought the controlling interest in the Cook County National Bank, of which, on June 3, 1873, he became president. Although the panic 157 158 The First National Bank of Chicago of that year soon followed, the institution was, for the moment, successful in weathering the storm, but was so seriously affected that it with difficulty continued business until the beginning of 1875. On January i8th of that year it went into liquidation. Mr. Allen surrendered all of his property for the benefit of his credi- tors, and made every effort to satisfy, as far as he could, the claims which they had upon him. During the time that Mr. Allen was a resident of Iowa, he served as a state senator for four years. He married Musie A. West, of Des Moines, and erected there a magnificent residence. Subsequently, when he became so largely associated with Chicago, he transferred his home to this city. After the loss of his fortune, Mr. Allen removed to Los An- geles, California, where he has since then lived. For four years he served as special agent of the general land office at this place. He is now holding the position of forest superintendent of reservations in the state of California. In the evening of an eventful life, Mr. Allen still retains his old cheerful disposition. AUGUSTUS A. CARPENTER Augustus A. Carpenter, the son of Alanson and Gulia Elma Nichols Carpenter, was born on June 8, 1825, in Franklin County, New York. He attended the common schools of his locality, but owing to the straitened circumstances of his parents, being obliged to abandon school, he left home at an early age. The reports of the gold discoveries in California were so attractive that he decided to make his way thither; undeterred by the great risks which he might encounter, he sailed via the Isthmus of Panama. Upon his arrival at the gold-fields, he and his brother, who had already preceded him, joined in mining and trading. Having amassed considerable capital, he left California in 1855, returned East, and finally established himself in the dry goods and lumber business in Monroe County, Wisconsin. This venture proved successful, and Mr. Carpenter likewise more and more believed that there was to be great wealth gained in the lumber trade. Firm in this conviction, he associated with himself Abner Kirby of Milwaukee, S. M. Stephenson of Menominee, Michigan, and W. O. Carpenter of Chicago, in the formation of the well- known lumber firm of Kirby, Carpenter & Co., subsequently named the Kirby-Carpenter Company. Of this business Mr. Carpenter has continuously acted as manager, until now for many years past he has enjoyed the reputation of being the foremost lumberman in Chicago. He was also for ten or twelve years Biographical 159 president of the Lumberman's Mining Company, with mines located near Iron Mountain, Michigan. He is Hkewise at the present time vice-president of the South Side Elevated Railway Company, a director of the Metropolitan National Bank of Chi- cago, and has been president of the Lumberman's National Bank of Menominee, Michigan. From 1883 to 1900 he served as a member of the board of directors of the First National Bank of Chicago, in which capacity he was a prudent counselor and a valuable friend to that institution. Mr. Carpenter has resided in Chicago since 1864, and has always shown himself to be a public-spirited and useful citizen. A firm Republican, he is one of the foremost advocates of reform in municipal scovernment. The election law of 1885 was chiefly due to his efforts. He is a member of the Commercial Club, of which he has served as president, and is likewise president of the Citizens' Association. He has long been interested in charitable institutions, but owing to Mrs. Carpenter's activity in this line, his name seldom appears in that connection. He was also for a num- ber of years a trustee of the Training School for Nurses. Of firm character, clear insight, and conscientiously fulfilling his obliga- tions, he is, above all, a master mind in his particular line of busi- ness; and yet upon every occasion he has found time to contribute his assistance to the solution of the pressing questions of society and government. CHARLES H. CONOVER Charles H. Conover was born in eastern Pennsylvania on July 12, 1847. I" his youth he received a common and high school edu- cation. When twelve years of age, together with his parents, he removed to Buffalo, New York. At the outbreak of the Civil War, he enlisted in the Home Guards, organized for the defense of the frontier against the possibility of an invasion from Canada. In 1865 he began active life in the employ of a hardware house in the city where he was then residing. Six years later, in 1871, he came to Chicago, and almost immediately secured a position with the firm of Hibbard, Spencer, Bartlett & Co. Little by little he won promotion, so that when, in i88i, the present corporation was or- ganized, he became one of the directors, and subsequently its secretary. In this capacity, and as general manager, he still serves. From 1900 to 1902 Mr. Conover was a director of the First National Bank. i6o The First National Bank of Chicago JAMES C. FARGO James C. Fargo, son of William C. and Tacy Strong Fargo, was born at Watervale, Onondaga County, New York, on May 5, 1829. His ancestors had migrated about 1680 from Wales, and had settled at New London, Connecticut. He was educated at the public school of his native town. When fifteen years of age he went to Buffalo, where he obtained employment in the office of his brother, William G. Fargo, who with Henry Wells and Daniel Dunning, had just inaugurated the express business. The firm was known as Wells & Co., and the line then extended from Buffalo to Detroit. Another company, called Livingston, Wells & Pomeroy, owned the line from Albany to Buffalo. Here the subject of the present sketch performed various petty duties, such as keeping the office in order, running errands, and delivering packages. He accompanied his brother in the spring of 1847 to Detroit, and one year later was placed in partial control of this office. Within a short time he was promoted to be manager of the business in that city, and soon became superintendent for the state of Michigan. In 1855 he removed to Chicago, and was appointed local agent. Meanwhile the transactions of the company were gradually expand- ing, its name had been changed to that of the American Express Company, and the necessity for more men of ability and breadth of view was constantly increasing. Mr. Fargo was in due time made superintendent of the northwestern division. While resid- ing in Chicago, he became in 1863 one of the founders of the First National Bank, upon the first directorate of which he was chosen. When the organization of the board was effected, he was moreover elected vice-president. Unfortunately his other varied duties caused him to decide that he could not spare the time necessary for the performance of the tasks incidental to this position; he therefore soon resigned, and entirely withdrew from the management. In January, 1867, he accepted the position of general super- intendent of the American Express Company, and was elected a director of the corporation of Wells, Fargo & Co. The assumption of these new functions necessitated his removal to New York City. Here for five years he labored indefatigably and with extraordinary success in the development of the business confided to his care. Owing to these unremitting exertions his health failed in 1872; he then went to Europe with his family for some eighteen months. Returning in 1874 to New York, he again resumed his numerous activities, which he still continues to discharge. Since 1859 he has been a director in the American Express Company; and in 1881, after the decease of his brother, William G. Fargo, was promoted to the presidency, which position he now fills. Biographical i6i While his entire business h'fe has been devoted to the affairs of the American Express Company, Mr. Fargo has other important interests wherein he displays liis customary activity and energy. The Merchants' Dispatch Transportation Company was reorgan- ized by him in 1871, and since then he has been its president. Furthermore he is a director in the National Express Company, in the United States Express Company, in the Chicago & North- Western Railroad Co., and in the Winona & St. Peter Land Co. In other fields of endeavor Mr. Fargo is also well known. During his residence in Chicago he was a vestryman of Trinity Protestant Episcopal Church. After his removal to New York he attended St. Thomas' Church, of which he has been vestryman and treasurer for more than twenty-five years. He is a member of the church and city clubs of New York, also of the American Society for the Prevention of Cruelty to Animals, the American Geographical Society, the New York Genealogical and Biographical Society, the American Museum of Natural History, the New York Zoological Society, and the Metropolitan Museum of Art. On December 15, 1853, Mr. Fargo married Fannie P.Stuart, daughter of Colonel John Stuart, of Battle Creek, Michigan; she died on August 31, 1896. This union was blessed with four children, two sons and two daughters; both the latter are dead; tlie former have long been engaged in the same business as their father. CORNELIUS R. FIELD Cornelius Robbins Field, son of Lucius and Lucia Hubbard Field, was born at Troy, New York, on February 29, 1836, and is a member of the distinguished family of the same name. His parents were of moderate means. After a few years spent in the common schools of his native town, he, when just ten years of age, obtained employment as errand boy in the office of the New York Courier and Enquirer, then under the editorship of James Watson Webb. Two years later, in 1848, together with his parents, he migrated to Janesville, Wisconsin. Here, during the next five years, he served as a clerk in a country store. At the age of seven- teen he transferred his activities to Chicago. LTpon arriving in this city, he secured a clerical position in the Michigan Soutliern Railroad office, and subsequently was employed in various capaci- ties by the Illinois Central, New York and Erie, and the New York Central Railroad companies. From 1857 to i860, he was connected with the management of the City Hotel, then one of the leading houses in Chicago. Again for two years he cast his for- tunes with the railroad business. Upon the organization of the internal revenue system, he was appointed assistant assessor for i62 The First National Bank of Chicago the First District of Illinois. He was soon promoted to be chief clerk, and in fact developed the methods of procedure, and most of the details of the management of the office in which he was employed. In 1866, the management of the First National Bank elected him cashier of the institution. For two years he filled this position with credit. Desirous then of extending his energies, he formed a partnership with George S. King and Moses Turner, for the real estate and stock brokerage business, under the style of Field, King & Co.; after the expiration of this arrangement, in 1871, Mr. Field continued its affairs as C. R. Field & Co., devoting himself entirely to the line of mortgages, loans, and securities. In 1880, severing his connection with Chicago, he returned to reside in Brooklyn, and until 1898 was engaged in brokerage in New York City. Since the last-mentioned date, he has been the cashier of a large manufacturing concern. Mr. Field was married on March 12, 1861, to Sarah E. Har- vey, of Chicago. Five children have been born to them. LYMAN J. GAGE Modern finance may well be classified among the fine arts; those who would attain success in its domain must possess a clear eye, a delicate touch, a knowledge of fundamental principles, and an appreciation of remote effects, combined with wonderful prudence and an unflagging energy. To have risen from the ranks to the lead- ership in any department of activity is always in itself a recognized proof of the existence of the requisite qualifications in the indi- vidual; how much greater the distinction to have achieved renown in a profession which few master because of the manifold charac- teristics essential to proficiency. Lyman J. Gage is of New England stock; both his parents were born in the state of New York; and it was at the village of DeRuyter, in Madison County of that state, on June 28, 1836, that he himself first saw light. His father, Eli A., a hatter by trade, and his mother, Mary Judson Gage, were respected members of the community. In 1846 the family home was transferred to Rome, Oneida County, at which place an academy had just lately been founded. For four years Lyman attended this institution, until in 1851 stress of circumstances brought his scholastic course to an end, and caused him to start on his long and active business career. At the age of fourteen he obtained a position as clerk in the local post-office. One year later he was promoted to be mail route agent on the Rome and Watertown Railroad, in which capacity he served for three years. His natural disposition for banking was now first Biographical 163 manifested. A clerkship in the Oneida Central Bank of Rome, which paid the salary of $ioo per year, was open. Young Gage entered upon his new labors in 1854, The scope of his duties was wide. As general clerk — a position which since then has received another signification — he was teller, book-keeper, and correspond- ent, besides being, out of banking hours, janitor and watchman. With perfect confidence in his own abilities, he soon began to feel that he was entitled to a larger remuneration. Tactfully, but still firmly, he made the suggestion of his reasonable aspirations to his employers; but they failed to accord his request. The determina- tion of his life was then taken. Nineteen years of age, and buoyant in hope, he decided to join the throng of ambitious men and women who were turning their faces toward the rising city on the shores of Lake Michigan. On October 3, 1855, Mr. Gage first set foot in this future metropolis. For a time fortune scarcely smiled upon him. With only the scanty and depleted savings of previous toil in his pocket, the choice of occupation was not free; he must accept whatever might be offered. Nathan Cobb then owned the lumber yard and planing mill on the corner of Adams and Canal streets. Here the young man obtained employment. His duties in this position again scarcely admit of definition; although among them were included those of book-keeper and teamster. During the panic of 1858 he lost his job; the best temporary work which he could secure being that of a night watchman on the same premises. At this point he reached the crisis of his career. In his determination he never faltered. Always diligent, stu- dious of the interests of his employers, careful in his own personal conduct, capable in any emergency, and never depressed in spirit, he felt certain of ultimate triumph over all transient obstacles. His anticipations were, at this very moment of apparent failure, about to be fulfilled. Six weeks later he was employed as book- keeper by the Merchants' Savings, Loan and Trust Company, his salary being fixed at five hundred dollars per annum. From the day of his assumption of this position in August, 1858, his advance- ment was not only steady, but rapid. Year by year he was pro- moted, first in 1859, to be paying teller at $1,200 salary; next in i860, to be assistant cashier at $2,000 ; and finally, in 1861, he was appointed cashier, which last position he held until 1868. The ef- fects of this period of service were reciprocal. While Mr. Gage brought to the performance of his duties in every station his cus- tomary fidelity and sagacity, he himself, on the other hand, had the exceptional opportunity of meeting in close association the principal men of the city. Polished and broadened by this inter- course, he passed through experiences, and reaped incidental re- wards of incalculable value to him in later years. How trying the war period proved for Western bankers has elsewhere been set 164 The First National Bank of Chicago forth. Mr, Gage was prepared for every turn of affairs, and con- tributed decisively to guide the institution with which he was then identified through many troublous and anxious events. Upon the retirement of Cornelius R. Field, cashier of the First National Bank, in 1868, that institution was seeking a capable and thoroughly experienced man to fill his place. Attention was natu- rally directed to Mr. Gage, and within a short time an arrange- ment was reached by which he transferred his allegiance, thus at last entering upon his life's work. The acquisition of this young financier, already so well known, was regarded as a decided acces- sion of strength ; so quickly did he impress his individuality upon the bank, that in 1870 he was chosen a director. With self-sacri- ficing and assiduous labor, he toiled incessantly to carve out success for the establishment with which he was thenceforth con- nected. Little by little he became the controlling factor in the management of its affairs. Upon him, directors, fellow-officers, stockholders, and patrons gradually came implicitly to rely ; and under his care and management the bank grew and phenomenally flourished. Through panics, depressions, and fire it not merely stood unshaken and unscathed, but even made constant and regu- lar progress, until it attained national reputation for its sound condition, not less than for volume of business. In this forward movement Mr. Gage reaped the chief honors ; cashier for fourteen years (1868-1882), vice-president for nine years (1882-1891), and president for six years (1891-1897), he filled every position with distinction. He was also the first president of the Chicago Bank- ers' Club, and likewise three times (1882, 1883, 1884) chosen presi- dent of the American Bankers' Association, Mr. Gage had for many years had national renown for his firm convictions in favor of honest banking and a sound currency. With such views, president of a great banking institution, long regarded as among the leading financiers of the country, and rendering pronounced service to the defeat of economic heresies in the campaign of 1896, he was the logical selection for the treasury portfolio in the new Cabinet. In February, 1897, announcing to the board of directors of the First National Bank his decision to accept the tendered post, he offered his resignation as president and director of the institution to which he had devoted the twenty- nine best years of his life; and in the following month removed to Washington. For five years he managed with distinction and success the financial department of the government, until on Feb- ruary I, 1902^ the day on which his resignation became effec- tive — he retired from the performance of its duties. The career of Mr, Gage in public station is so well known that any detailed sketch of the past few years would here appear perfunctory. History will undoubtedly testify to the skill and brilliancy with which he conducted the affairs of his office. Sum- Biographical 165 moned to the helm just after a period of financial stringency, re- quired to provide the revenue requisite to wage a foreign war, and especially bound to elaborate a plan for the legal establishment of a gold standard, he proved himself by his initiative and sugges- tions able to solve the most difficult problems. The effects of his administration of the treasury department will in many respects be permanent; far more than the majority of his predecessors he impressed himself upon the economic history of the nation; and by just so much the more will he be remembered by posterity. Since his withdrawal from the Cabinet Mr. Gage has been chosen president of the well known United States Trust Company of New York City, where he in the future intends to reside. He has likewise recently been elected a member of the New York Chamber of Commerce, and a director in the Chicago Title and Trust Company. The mere sketch of the principal occupation of Mr. Gage as a banker does not comprise the full breadth of his activities. There are other fields in which he has won distinction alone sufficient to entitle him to high rank. The greatest public service ever rendered by him to his home city was, perhaps, in connection with the Co- lumbian Exposition. From the beginning of the discussion of the question he was active in his determination that the Fair should be held at Chicago. He helped to organize the various local committees, pledged his name that the requisite $10,000,000 should be raised, and was unanimously chosen the first president of the Chicago board of directors. Although overburdened with his regular tasks as an officer of the First National Bank, he lent a courageous and most efficient hand as the chief mainstay of the f)roject throughout the first year of its existence. His energy and orce of character were a constant inspiration until the conclusion of the enterprise. On January 24, 1891, he resigned as presi- dent of the World's Fair to accept the presidency of his bank, action which he took chiefly at the urgent behest of those who were interested in the latter institution. Not only did he, however, continue a member of the Exposition directorate, but he posi- tively refused all pecuniary remuneration for his services as chief executive. Mr. Gage has always shown himself in full sympathy with social movements. In i8gi he was active in inaugurating at Chicago a series of "economic conferences" for the discussion of topics bearing upon the mutual relations of capital and labor. Through his personal efforts men of wealth and those whose hands were stained with toil were brought upon the same platform. He him- self upon two occasions addressed these meetings with the display of a wide knowledge of economic problems and a peculiar felicity of expression. Somewhat later he was chosen president of the Civic Federation of Chicago, i66 The First National Bank of Chicago In social life Mr. Gage has been prominent both in Chicago and Washington. He has been twice married, first in 1864 to Miss Sarah Etheridge, daughter of Dr. Francis B. Etheridge, of Little Falls, New York; this lady died in 1874, leaving one son, Eli Gage, who still resides in Chicago. In 1887 Mr. Gage again married, this time Mrs. Cornelia Gage, of Denver, Colorado, who died in July, igoi. In his home life Mr. Gage has always been noted for his hospitality. He has a carefully selected library, in the enjoy- ment of which he passes much time. Through diligence in read- ing the best authors, he has accumulated an extensive stock in many departments of knowledge. While literature is the chief object of his admiration, he has not neglected art. When a resident of Chicago he was for many years a director and the treasurer of the Art Institute; he was also president of the Commercial Club and a member of the Chicago Club. A busy man, he does not waste his leisure in frivolous amusements. Known as a strong Repub- lican, but never hesitating to champion the best men and the highest principles to whatever party belonging, he has often been solicited to express his views on the platform and in the press. Distinguished in so many ways, he has risen to his present eminence through force of character; success has been the result of untiring energy. In brief, his career affords a striking illustra- tion to the young men of the land of what triumphs can be won by perseverance, industry, and honest purpose. FRANKLIN D. GRAY Franklin D. Gray, son of Silas A. and Lucretia Wadhams Gray, was born at Sharon, Litchfield County, Connecticut, on May ig, 1818. Passing his early years on a farm, and leaving the district school at ten years of age, he went from home two years later to begin commercial life as a clerk in a small grocery store at Goshen Center, Connecticut. There he remained until he had reached his twenty-first year; one year having meanwhile been spent in a high school of the neighborhood. Thus equipped, with little book education, but con- siderable practical experience, young Gray, with two of his fellow townsmen, Messrs. Norton and Walter, removed to Chicago in 1840; and they having soon established a general store on South Water street, took him into their employ; at the beginning of 1845 he became one of the partners in the firm which then assumed the name of Norton, Walter & Company. Four years later the style of the house was changed to Gray & Densmore; and again, in 1853, to Gray, Densmore & Phelps; five years subsequently Mr. Dens- more retired, selling his interest to Mr. Gray, and at the same time Moses W. Gray, a brother, and Frederick Gaylord were Biographical 167 admitted to the partnership, which thenceforth for several years was called Gray, Phelps & Company, In 1869, upon the retire- ment of Mr. Gaylord, the name of Gray Brothers & Co. was adopted. Several changes in the members and title of the firm afterward occurred, it becoming finally known as Gray, Burt & King- man, In these later days Franklin D. Gray was a special part- ner, while Moses W. Gray, William Burt, and Charles H. King- man were general partners, until eventually, after the death of Moses W. Gray, the partnership was dissolved, and the busi- ness terminated. For the past twenty-one years, indeed, Franklin D. Gray has not been actively engaged in the grocery business, his personal care being chiefly devoted to his other manifold interests. In 1866 Mr. Gray was first chosen a member of the board of directors of the First National Bank, which position he continued to hold until 1899. Upon the death of President Aiken, and the promotion of Samuel M. Nickerson to the presidency of the bank, m 1867, he was chosen its vice-president. During the entire period of the first charter, until 1882, he served in this capacity. Throughout these many years he was a staunch friend of the insti- tution. A strong advocate and a prudent counselor, he greatly contributed to the success and prosperity of its affairs. Soon after the reorganization incidental to the renewal ot the charter in 1882, Mr. Gray, for reasons of expediency, resigned the vice- presidency; it being considered imperative that he should assume the presidency of the National Safe Deposit Company, which, as elsewhere explained, was organized as a corporation subsidiary to the bank. Until 1899 he served as a member of the board of directors of the latter; finally voluntarily retiring at that time because of his advanced years, and his desire to enjoy greater ease, reinforced by his belief that the interests of the institution would be better conserved by younger and more active men. Aside from his business career, in which he has reaped the rewards of well-merited success, Mr. Gray has long been known in his home city as a practical philanthropist and active helper in many lines of endeavor. To many institutions devoted to chari- table and benevolent objects he has frequently and liberally given both of his fortune and time; while in several instances taking an active and prominent part, he has never been lacking in sympathy and suggestion. In early days he was a member of Engine Com- pany No. I, being its secretary and treasurer for a period of ten years. Later he co-operated in the establishment of the Fire- men's Insurance Company. On July 4, 1843, Mr. Gray was married, at Norfolk, Connecticut, to Ann O.Phelps, daughter of Jeremiah Phelps, who is no longer among the living. Although he has already passed the age of i68 The First National Bank of Chicago four-score, he continues to give daily care to his numerous financial and business interests. He is respected and honored by ail who know him for his sterling qualities of mind and character. ROLAND C. NICKERSON Roland C. Nickerson, son of Samuel M. and Matilda P. Nick- erson, was born at Chicago on July 27, 1859. His early education was obtained in the schools of his native city, and was subse- quently supplemented by training in France and Germany. After returning home, prepared for active life, he at once entered the service of the First National Bank, Later he opened a banking and brokerage house at Chicago, in which pursuit he was engaged until June, 1900, when he retired from business, and thereupon removed to New York City. From 1892 to 1900 Mr. Nicker- son served as a member of the board of directors of the First National Bank. HENRY H. PORTER Henry H. Porter, son of Rufus King and Lucy L. Porter, was born at Machias, Maine, in 1837. His early years were spent in his native town and at school at Washington Academy and Ando- ver Academy, in the state of Massachusetts. At fourteen years of age he began business life as a clerk in a country store at East- port, Maine. In 1853 he removed to Chicago, where he obtained employment in the offices of the Galena and Chicago Union Rail- way ; until i860 he was engaged in various subordinate positions, acting from time to time as cashier, claim agent, paymaster, and general ticket agent. During the next five years he was in the service of the Michigan Southern and Northern Indiana Railway^ now a part of the Michigan Southern and Lake Shore system — in the capacity of general freight agent and general superintendent. He then, from 1866 to 1871, turned his attention to the lumber trade, joined in a partnership under the name of Spaulding & Porter, and did a large business on the Menominee and Cedar rivers, in Wisconsin and Michigan. In 1868 he was elected a director of the First National Bank of Chicago, a post he filled with distinction until 1891. About the same time, 1868, he likewise was chosen a member of the board of the Chicago, Rock Island and Pacific Railway, upon which he continued for the next thirty years. In 1870 he became a director of the Chicago and North- western Railway, which position he held until 1877. Meanwhile, he Biographical 169 was for a period general manager of this road, and was a director in the Union Pacific Railway. In connection with several asso- ciates, he purchased, in 1875, the West Wisconsin Railway, and as a result of tliis transaction, bought, constructed, and consolidated the various lines now forming the Chicago, St. Paul, Minneapolis and Omaha Railroad, of which he was for some years president. He also, through purchase, obtained control of the St. Paul and Duluth Railway, serving as its president until its subsequent sale. About 1882, Mr. Porter and others bought the Union Steel Com- pany, of Chicago, then in bankruptcy, and after its reorganization amalgamated it witli the North Chicago Rolling Mill Company, and the Joliet Steel Company. In 1886, he was one of the syndi- cate which purchased the Minnesota Iron Company, and the Duluth and Iron Range Railway, and for many years was at the head of their board. When these properties were transferred to the Federal Steel Company, he was chosen chairman of the latter corporation, in which position he served until, in conjunction with other companies, it entered the combination known as the United States Steel Corporation. From 1883 to 1887, he bought up the different roads now constituting the Chicago and Eastern Illinois Railway, of which he is chairman. During the last few years, he has also been a director of the Brooklyn Rapid Transit Company, of New York. Mr. Porter married Eliza T. French, daughter of G. H. French, of Chicago ; they have three children, Mrs. G. S. Isham, H. H. Porter, Jr., and George F. Porter. From 1853 to i8q8, Mr. Porter resided in Chicago ; at the last-mentioned date he removed his home to New York. He still retains his country place at Lake Geneva, Wisconsin, where he always passes the summer. Mr. Porter is not only a man of commanding position in the financial and industrial world, but also a gentleman of excellent personal qualities. GEORGE C. WALKER George C. Walker was born at Burlington Flats, Otsego County, New York, on November 5, 1835. His ancestors came to America in 1640. At the time of his birth his father had already settled in Chicago. At an early age he lost his mother, and then for some years he resided with his grandfather at Plainfield, New York. During this period he frequented the public schools in winter, and worked on the farm in the summer season. When twelve years of age he joined his surviving parent in Chicago; and after his arrival in this city attended, for a year, the academy kept by Benjamin F. Taylor, a man subsequently well known in the literature of the West. lyo The First National Bank of Chicago Mr. Walker then began business as an employee in his father's lumber yard. The following winter (1848-1849)116 took a brief course at the Temple Academy. The next spring he went to Southport, now Kenosha, and bought a quantity of wheat, graded it, and sold it at a very considerable profit. He then hired a canal-boat and made a successful trading trip to St. Louis. For some time he remained in the employ of his father; then passed one year at Be- loit College and a winter at Brown's University, Providence, Rhode Island. His ambition had been to obtain a collegiate degree, but unexpectedly he received the offer of a partnership in the firm of Charles Warner & Son, which he accepted. Until 1888 Mr. Walker was actively engaged in the commission and provision business. In 1880 he also added the stock business as a department. The firm then became a member of the New York Cotton Exchange, and soon afterward was one of the first to obtain the use of an exclusively private wire for its telegraphic reports. Mr. Walker is now a member of the New York Stock Exchange, of the Chicago Stock Exchange, and the Chicago Board of Trade. From 1867 to 1869 he also served as a member of the board of directors of the First National Bank. He is likewise interested in Chicago real estate. In 1868 he bought 1,300 acres of land near the city, and soon started the town of Washington Heights. Somewhat later he laid out Morgan Park, to which, in 1888, he presented for library purposes land and build- ings valued at $12,000, besides making a liberal contribution for books. Afterward he donated, in 1892, another building and two acres of land, valued at $30,000; and again, $100,000 for the erec- tion of a Museum of Science. Ever since 1864, the date of its organization, Mr. Walker has been prominent in the Chicago Acad- emy of Science. He is a regular attendant at Immanuel Baptist Church. He has been twice married; first, in 1858, to Ada Chap- man of Buffalo, who died in 1861; and again, in 1880, to Mrs. Mary M. Keen of New York. Ill BIOGRAPHIES OF PERSONS NOW ACTIVELY CONNECTED WITH THE BANK ( SAMUEL W. ALLERTON Samuel W. Allerton was born at Amenia Union, in Dutchess County, New York, on May 26, 1828. His early youth was passed on the farm, and he received only such education as the country schools of that time offered. His first ambition was to be a stock dealer. Before he was twenty he had developed a strong taste in this direction, and had shown such ability as to make him well known in his neighborhood. As the scope of his affairs broadened, the western country attracted his attention as a better field for his energies than that of his native state. Starting out, therefore, in 1856, m quest of a future home and fortune, he gradually pushed westward, until finally he settled on the prairie in Piatt County, Illinois. Here he again pursued his old avocation. With the growth of his transactions, the rising city of Chicago afforded him more and more a market, of which he was quick to take advantage. Little by little he perceived that as an accessory to his immediate business, he must provide suitable facilities, in the coming me- tropolis, for handling the shipments which he made thither. With this aim, he first opened here an agency, to which he consigned his live products ; then, in the ordinary course, the next move was the inauguration of a packing house. This step accomplished, his operations had already developed to such an extent that his own farm in Illinois was no longer capable of supplying the de- mands which trade made upon him ; hence, other more extended connections with the sources of supply throughout the West — he now owns 40,000 acres of land in Ohio, Illinois, and Iowa — and in turn, as the inevitable result, the establishment of additional packing plants at St. Louis, Omaha, Kansas City, Pittsburg, Balti- more, Philadelphia, and Jersey City. The growth of Mr. Allerton's business may well be cited as a fair standard by which to measure the development of the pack- ing interests of Chicago. Through his energies, and those asso- ciated with him, the Stock Yards have been largely built up. When he first entered upon his labors in this field, scarcely a single es- tablishment of the kind existed. As an indication of the magni- tude locally attained by this industry it should be cited that in 171 172 The First National Bank of Chicago 1901, 3,031,396 head of cattle, and 8,903,494 hogs arrived at the Union Stock Yards, of which 1,999,820 of the former and 7,599,532 of the latter were slaughtered and packed. While Mr. Allerton has been chiefly preoccupied with the pro- motion of this special trade, he likewise early became known as an influential leader in the world of finance. The earnings an- nually accruing to him from his manifold activities he naturally felt must be properly and safely placed. With much prudence and sound judgment, he has always carefully selected the objects of his permanent investments. Generally disposed to favor finan- cial enterprises of the larger class, he has long been identified with many important institutions of the city. In 1863 he was one of the men originally interested in the foundation of the First National Bank. From the date of its organization he has continued to be a member of its board of direc- tors; enjoying at the present moment, together with Samuel M.Nick- erson, the unique distinction of having served in this capacity during the past thirty-nine years. Through his constant care, wise con- servatism, and still inexhaustible energy, he has rendered the cor- poration invaluable services. Among all those who have been connected with it during its history, he has always been foremost in solicitude for its welfare and progress. For many years he was a director of the Chicago City Railway Company, and like- wise served as a director of the Columbian Exposition. He has also been active in many other corporations and business enter- prises of Chicago and elsewhere. In every position which he has occupied, he has been recognized as a man of ability and prudence. Politically, Mr. Allerton is a Republican, a strong protectionist, and an advocate of all which advances the condition of American labor. While frequently mentioned for public office, he has usually strenuously avoided any such preferment. Only in 1893 he allowed himself to be named as the Republican candidate for the mayor- alty of Chicago. Since 1856, with only temporary intermissions, he has main- tained his permanent residence in Chicago. Of late years he has, in a certain measure, withdrawn from the active life which he so long followed. During this latter period he has traveled exten- sively, and now almost always passes the winter season at his temporary home in Pasadena, California. Biographical 173 JOHN H. BARKER John H. Barker, the son of John and Cordelia E. Collamer Barker, was born on February 4, 1844, at Michigan City, Indiana. He received his early education in the common schools of his native town, and subsequently attended Racine College, at Racine, Wis- consin. When nineteen years of age he removed to Chicago, where for two years he was employed as clerk in a wholesale grocery house. Then going to Springfield, Illinois, he there engaged in the same business on his own account. In that city he remained three years, at the expiration of which time he once more returned to Chicago. After two years passed here in the grocery trade, he again went back to the place of his birth, where he became connected with the Haskell & Barker Car Co., of which he was eventually elected president, the position still held by him. Mr. Bar- ker has had an extensive connection with the world of finance. In 1887 he was chosen director of the Union National Bank of Chicago, and upon its consolidation, in 1900, with the First National Bank, was elected to the board of the latter institution. He is also a director of the First National Bank of Duluth, Minnesota, and is largely associated with banking interests at St. Paul, Minnesota. From 1880 to 1882 Mr. Barker served as mayor of Michigan City, Indiana. ADOLPHUS C. BARTLETT Adolphus C. Bartlett, son of Aaron and Delia Dibell Bartlett, was born at Stratford, New York, on June 22, 1844. He received his education at the village schools, the Dansville Academy, and the Clinton Liberal Institute at Clinton, New York. At nineteen years of age he came to Chicago, and was almost immediately employed by Tuttle, Hibbard & Co., at a later date succeeded by Hibbard, Spencer & Co., in the hardware trade. Gradually he became interested in the business, and within six years was admitted to the firm as a general partner. Upon the organization of the present corporation of Hibbard, Spencer, Bartlett & Co., he was elected secretary, and subsequently vice-president. While liis chief energy has been devoted to the upbuilding of this house, he has also been largely identified with other financial and busi- ness enterprises in Chicago. From 1891 to the close of its career, he was a member of the Board of Directors of the Metropolitan National Bank. He is likewise a director of The Northern Trust Company and The Liverpool, London & Globe Insurance Com- pany. He was a director, before the sale to the present owners of 174 The First National Bank of Chicago the Chicago & Alton Railroad Company, and since the merger of the INletropoHtan National Bank in the First National Bank has been a member of the board of the latter institution. Mr. Bartlett is a well-known club member, has served as president of the Commercial Club, as director of the Relief and Aid Society, as trustee of Beloit College, as president of the Home for the Friendless, as trustee of the University of Chicago, as director in the Chicago Orphan Asylum and the Old Peoples' Home, the Art Institute and the Athzeneum. The only public office which he has ever held is that of member of the Board of Education. AUGUST BLUM August Blum was born and educated in Germany. After an apprenticeship in the office of a mercantile house he came to the United States in 1867 and obtained employment in the banking establishment of Henry Greenebaum & Company at Chicago. Soon promoted to be the head of the firm's foreign department, he remained in this position until 1877, when the house went out of business. Thereupon he accepted a confidential post with Limburger & Thalmann (afterwards Ladenburg, Thalmann & Co.) private bankers in New York City, with whom he continued two years. Returning then for personal reasons to Chicago, he accepted the management of the foreign department of the Inter- national Bank of this city. In August, 1881, Mr. Blum was called to organize a similar department at the Union National Bank. As its manager he served until the beginning of 1890, when he was assigned to an executive position, meanwhile in January, 1888, having been appointed assistant cashier. Elected cashier in 1892, he filled that post until the consolidation with the First National Bank, in September, 1900, whereupon he was chosen an assistant cashier in the latter institution. EMILE K. BOISOT Emile K. Boisot was born on February 26, 1859, at Dubuque, Iowa, and was educated in the grammar and high schools of that city. In 1875 he obtained employment with the German Bank at Dubuque, where he remained for three years. Coming to Chicago in 1878, he immediately entered the bond department of the First National Bank. Here he has been continuously engaged since that date. After serving in different capacities he was finally, on January i, 1897, promoted to be manager of the foreign exchange and bond department. In 1901, upon the separation of these lines into two distinct branches, he retained charge of the latter division. Biographical 175 GEORGE D. BOULTON George D. Boulton was born at Cobourg, Canada, on June 13, 1844. His education was received at Upper Canada College in the city of Toronto. In i860, attracted by the apparently brilliant opportunities of South America, he went thither, but his anticipations of amassing wealth not being realized, he returned after a brief interval to his native place. Here he temporarily obtained employment as a book-keeper in a large mercantile establishment. In the fall of 1863, ^^ the age of nineteen years, he came to Chicago, and soon thereafter formed a connection with the First National Bank. Except for two years (1865-1866), his term of service with this institution has been continuous. Commencing as a book-keeper, he was advanced step by step, until in 1869 the Foreign Exchange Department was organized under his direction as manager. Later, in 1870, the bond department was also devel- oped, and placed under his charge. He held the position of manager of the foreign exchange and bond department until igoo, when he was promoted to be vice-president of the bank. Since 1897 he has also served as a member of the board of directors. FRANK E. BROWN Frank E. Brown was born at Peru, Indiana, in 1850, At the age of seven years he came with his parents to Chicago, where his education was received in the public schools. When eighteen years old he entered the employ of Smith Brothers, wholesale grocers; later became chief clerk of construction for the Rock- ford, Rock Island and St. Louis Railway, and subsequently was in charge of one of the grain elevators in Chicago. In 1875 he entered the service of the Third National Bank as a book-keeper, and upon its failure, in 1877, was employed by the First National Bank. In this institution he has served as book-keeper, assistant chief clerk, and chief clerk, being finally promoted, in 1900, to be assistant cashier. 176 The First National Bank of Chicago WILLIAM L. BROWN William L. Brown was born at St. Joseph, Michigan, on August 23, 1842. In 1848, together with his parents, he removed to Chicago, where his education was received at public and private schools. For many years his father was engaged in the grain and forwarding business, and was one of the earliest members of the Chicago Board of Trade. He himself commenced his business career in 1859 as a clerk for a Board of Trade commission house. In 1862 he enlisted as a member of the Chicago Mercantile Bat- tery of Light Artillery, serving with it until the close of the war. Upon returning to this city he engaged in the pig iron business, in which he has since then taken an active part. The firm of Pick- ands, Brown & Co., of which he is a member, is one of the oldest and best known in the country. He became interested in 1890 in ship-building, and together with others organized the Chicago Ship-building Company. In 1899 a large number of the lake shipyards were consolidated under the name of the American Ship-building Company, and Mr. Brown was elected president of the new corporation, a position which he still holds. He is also president of the South Chicago Furnace Company, manufacturers of pig iron, and a director in the Illinois Steel Company. Mr. Brown has devoted much of his time and energy to the promotion of the interests of the iron, steel, and marine industries of the Great Lakes district, in which pursuits he is still actively engaged. He was chosen a director of the Union National Bank in 1900, and upon its consolidation with the First National Bank, was elected to the board of the latter institution. D. MARK CUMMINGS D. Mark Cummings, son of Columbus R. Cummings and Sarah M. Cummings, was born at Pekin, Illinois. He obtained his early education in his native town, subsequently attended Racine Col- lege, Racine, Wisconsin, and Phillip's Academy, Andover, Massa- chusetts, and graduated from Yale College with the class of 1887. Upon the termination of his school life, he returned to Chicago, where he at once engaged in business as a banker and broker, first in connection with F. H. Watriss and J. B. Breese, under the firm name of Watriss, Breese & Cummings, and subsequently with J. B. Breese as Breese & Cummings. Mr. Cummings, upon the death of his father, on July 12, 1897, succeeded him in the man- agement of many of his large financial enterprises. In the same Biographical 177 year he was elected a director of the Union National Bank of Chi- cago, serving in that capacity until its consolidation with the First National Bank, at which time he was chosen a member of the lat- ter's board. He is also vice-president of the South Chicago City Railway, and vice-president of the Hammond, Whiting and East Chicago Railway. EDWARD DICKINSON Edward Dickinson, son of Charles and Eliza E. Dickinson, was born in Chicago on November 2, 1863. When he was two years of age his parents removed to Milwaukee, and with them he remained until 1873. Then, only ten years old, he returned to Chicago, and in the public schools of this city completed his education. In 1878 he obtained employment as a messenger with the banking firm of Preston, Kean & Co., was gradually promoted, and in 1884, when the Metropolitan National Bank was organized as the successor of the earlier house, he remained with it in the capacity of paying teller. In 1892 he was appointed second assistant cashier, and in 1894 advanced to be assistant cashier, which position he held until the absorption of the institution by the First National Bank, in which he was then chosen an assistant cashier. In 1899 Mr. Dickinson assisted in the organization of the La Grange State Bank, at La Grange, Illinois, and was elected its president. He likewise served, in 1901, as treasurer of the Board of Lincoln Park Commissioners. DAVID R. FORGAN David R. Forgan, the son of Robert and Elizabeth Forgan, was born at St. Andrews, Scotland, on April 16, 1862, He received a common-school education in his native town. At the age of fifteen years he entered the service of the St. Andrews Branch of the Clydesdale Bank. He remained in its employ about three years and a half, when migrating to Canada, in 1880, he joined his fortunes with the Bank of Nova Scotia. With this institution he was connected during a period of ten years, the last five of which he served as agent of its branch at Fredciicton, New Brunswick. Believing that there was a larger field of activity in the western states, he removed to Minnesota in 1890, and soon thereafter be- came assistant cashier of the American Exchange Bank of Du- luth. In that position he continued until, in 1892, he was called to succeed his brother, James B. Forgan, as cashier of the North- western National Bank of Minneapolis. Four years later he was 178 The First National Bank of Chicago chosen to be vice-president of the Union National Bank of this city, which post, including the practical management, he assumed on January i, 1896. At the end of two years he was promoted to be president of that bank, filling this position until the date of its consolidation with the First National Bank, in September, 1900. Upon this occasion he was elected a director and senior vice- president of the latter institution. JAMES B. FORGAN James Berwick Forgan, son of Robert and Elizabeth Forgan, was born April 11, 1852, at St. Andrews, Scotland; and educated at Madras College, St. Andrews, and Forres Academy, Forres. At the age of seventeen, after having spent a short time in a law- yer's ofifice, he entered the employ of the Royal Bank of Scotland at its St. Andrews branch. After three years' "apprenticeship" in the Royal Bank, he secured a position with the Bank of British North America in London and was sent by that institution to Montreal, Canada; after filling various clerical positions in its Montreal, New York, and Halifax offices, he joined the service of the Bank of Nova Scotia as paying teller, at the last-named city. Later he became agent of the bank at Liverpool, Nova Scotia, and again at Woodstock, New Brunswick, and subsequently was pro- moted to the position of inspector of branches. In 1885 he estab- lished and took charge of a branch of that bank in Minneapolis, Minnesota. Three years later, on the invitation of the directors of the Northwestern National Bank of Minneapolis, he accepted the cashiership of that institution. Four years subsequently (1892) at the request of Mr. Gage he was elected vice-president of the First National Bank of Chicago, and three years ago he succeeded to the presidency. JOHN E. GARDIN John E. Gardin was born at Charleston, South Carolina, on February 8, 1853. At an early age he went to Germany and there received his education. His first business experience was gained in the banking house of Pflaum & Company, now known as the Wiirtembergische Bankanstalt at Stuttgart. Soon after return- ing to this country he came to Chicago, and in November, 1881, entered the service of the First National Bank. There he has filled various positions, chiefly in its foreign exchange and bond department, of which he became, in 1897, assistant manager. Upon the separation of these two lines of business, in 1901, he was ap- pointed manager of the foreign exchange department. Biographical 179 CHARLES N. GILLETT Charles N. Gillett was born at Albany, New York, on August 4, i860. While quite a lad he came West with his parents, who settled in Chicago. He attended the common schools of Hyde Park for several years, and then was employed in a wholesale paper house. When this establishment, in 1881, retired from busi- ness, he secured a position as messenger in the First National Bank. Gradually, by various promotions, he became first paying teller, a position which he held for five years, and subsequently chief clerk, in which capacity he served a similar length of time. In January, 1900, Mr. Gillett was elected an assistant cashier. HOWARD H. HITCHCOCK Howard H. Hitchcock, son of Charles I. and Mary E. Hitch- cock, was born at La Centre, Illinois, on December 10, 1858. He was educated at the public schools of Amboy in the same state and those of Chicago. To this last named city he came in 1873, was employed by Preston, Kean & Co. on January 18, 1875, and continued in the service of the Metropolitan National Bank when that institution, in 1884, succeeded to the business of the former firm. In 1887 he was appointed assistant cashier, and in 1894 promoted to be cashier, retaining that position until the consoli- dation with the First National Bank was effected. At this time Mr. Hitchcock was chosen one of the vice-presidents of the latter institution. HOLMES HOGE Holmes Hoge was born on March 2, 1842, in Alleghany City, Pennsylvania. With his parents he removed to Chicago in 1848, residing either in this city or Evanston since that date. In 1857 he left school and started for himself in life. His first employment was as messenger boy with the Western Union Telegraph Company. A year later, however, he resumed his studies, entered the high school, and graduated with the class of 1861. In August, 1862, he enlisted as a private in the Chicago Mercantile Battery, in which organization he served until the following spring. He was then commissioned captain and assistant quartermaster. His field of service included a portion of the Department of Tennessee; he was present at the siege and capitulation of Vicksburg, and being subsequently ordered to the Department of the Gulf, remained i8o The First National Bank of Chicago there until mustered out at the close of the war. In 1866, having returned to Chicago, he obtained a clerical position in the Third National Bank. Resigning this employment in the spring of 1872, he engaged in the real estate business; but the panic of 1873 soon following, he decided to revert to banking. In the autumn of that year he obtained a position in the First National Bank, with which he has since been connected. For many years he filled the posi- tion of discount clerk, and in 1891 was elected assistant cashier. ELBRIDGE G. KEITH Elbridge G. Keith, son of Martin and Betsy Keith, was bom at Barre, Vermont, on July 16, 1840. He received his education at Barre Academy and Newbury Seminary. When seventeen years of age he removed to Chicago, and in 1858 entered the employ of Keith, Faxon & Co. Seven years later he became a member of the firm of Keith Brothers in the wholesale hat, cap, and millinery trade, and subsequently, in 1883, the senior partner of Keith, Benham & Dezendorf. In 1884, upon the organization of the Metropolitan National Bank, in the promotion of which he had been exceedinglyactive, Mr. Keith was elected to its presidency, and served in this capacity during the entire period of its existence. In 1875 he was president of the Young Men's Christian Association; in 1883, president of the Union League Club; in 1889-90, president of the Chicago Clearing House; in 1891, president of the Chicago Bankers' Club; in 1892, president of the Chicago Commercial Club, and has been a member of the Chicago Clearing House Committee from 1894 until the present date. Upon the consoli- dation of the Metropolitan National Bank with the First National Bank, he was elected to the directorate of the latter institution, and at the same time accepted the presidency of the Chicago Title & Trust Company. Mr. Keith has held only one office of public trust. He was a member of the Board of Education for several years, and vice- president of that body from 1879 to 1884. MAX MAY Max May was born at Darmstadt, Germany, on July 3, 1861. After a preliminary training of five years in various banking houses in his native country, he came to America, in 1884, and thereupon entered the employ of the Union National Bank as foreign correspondent. In 1892 he was selected to be chief of the Biographical i8i foreign department in the Atlas National Bank, where he contin- ued until 1896. At that date he returned to the Union National Bank as manager of the same department. Upon the consolida- tion of that institution with the First National Bank, in September, 1900, he was appointed assistant manager of the foreign exchange department of the latter. NELSON MORRIS Nelson Morris was born at Hechingen, Germany, on January 21, 1839. At the suggestion of an uncle who had already emi- grated, he came to this country in 1852. Once on this side of the ocean, he gradually wandered westward until he arrived in Chi- cago. Reaching here in 1854, he obtained employment in the old Sherman Stock Yards at the monthly salary of $5, room and board. By the exercise of economy and thrift, he succeeded in accumulating a small capital. As soon as conditions warranted, about two years after his arrival in town, he began business on his own account. While making this start for himself, he was still partially employed by others, but declined an offer of $100 per month for his entire time, preferring to be his own master. At the outbreak of the Civil War, Mr. Morris was in comfort- able circumstances. He already commanded considerable capital, and had begun to slaughter cattle — thus participating in the founda- tion of the great packing industry at Chicago. About this time he entered into two contracts with the government to supply 20,000 head of cattle for army use. During the next few years his busi- ness flourished. In 1873 the volume of annual transactions aggre- gated $11,000,000. In 1874 he formed a partnership with Isaac vVaixel, under the name of Morris & Waixel, but eventually the firm became known as Nelson Morris & Co. Their plant, which was among the first packing houses opened and operated at the Union Stock Yards, has so grown, with the extension of the domestic and foreign trade, that it now consists of about forty buildings, covering thirty acres of land, with a daily killing capacity of 5,000 cattle, 10,000 hogs, 10,000 sheep, and 1,000 calves. They likewise own and operate two very large concerns, one at East St. Louis and the other at South St. Joseph, Missouri. These establishments transact more than §75,000,000 of business yearly — a result attained only by virtue of the highest organization, the shrewdest insight, and the keenest knowledge of markets. The house owns about 2,000 refrigerator and freight cars, and has established two hundred large branches in the principal cities of the United States and Europe. Nelson Morris is also among the largest cattle and ranch owners in the country. One of his enterprises is an extensive 1 82 The First National Bank of Chicago system of ranches for the breeding of cattle. The Texas ranch comprises nearly 300,000 acres, while another in Indiana contains 30,000 acres, and there is another in Nebraska almost as extensive. As might naturally be expected, Mr. Morris has been associ- ated in numerous other enterprises. He participated in the organization of the Stock Yards banking system, and is a director in several of the financial institutions doing business in that district. In 1872 he was elected a director of the First National Bank, on the board of which he has since then continuously served. In this position the services he has rendered have been distinguished by prudence, conservatism, and ability. To the prosperity of the bank he has materially contributed. Mr. Morris is thoroughly American in his views and instincts; a man of kindly disposition, and generally respected as of a strong and energetic nature. SAMUEL M. NICKERSON To the student of character the career of a pioneer in any department of human activity is peculiarly an object of admir- ation. Enterprise and energy are the distinguishing traits of the leaders of men. Chicago, by reason of its rapid growth, has been the field during the past sixty years for the development of a host of these master minds, who have dreamed not in vain, but under the inspiration of their genius achieving phenomenal success, have vanquished every obstacle, and won the laurel wreath at the hands of their grateful contemporaries. Of this group the veteran bankers, by virtue of their high personality, and the ines- timable value of their services, occupy the first ranks; and among them the subject of the present sketch is at the forefront. On June 14, 1830, there was born to Ensign Nickerson and his wife, Rebecca Mayo Nickerson, then residing at Chatham, Massachusetts, a son, who in due course received the baptismal name of Samuel Mayo. Poor in worldly goods, and not blessed with a high degree of education, as measured by the standard of the schools, this humble couple nevertheless appreciated the value of sound intellectual training, and determined to afford their children, so far as possible, the advantages which they themselves had not in their youth been able to enjoy. With these motives the family removed, in 1837, to Boston. The boy, Samuel, thenceforth diligently applying himself for several years to the pursuit of knowl- edge, attended first the public schools of the city, and subsequently the academy at New Hampton, New Hampshire. This period of life was interspersed with brief intervals of vacation and labor on the old farm. Upon the conclusion of his school days, in 1847, Samuel, chiefly Biographical 183 dependent upon his own industry, and eager to face the vicissitudes of maturer years, was attracted by the apparent advantages offered to young men in the South. Incidentally his elder brother, it should be stated, had already settled at Appalachicola, Florida, where he owned a general store. An offer of employment in this establish- ment being accepted as a temporary expedient, Samuel, high in hopes and full of projects, sailed on a sea-going packet ultimately bound for the distant land of his dreams. In due season he arrived ; entering at once upon his new duties, he labored arduously for three years. Then ambitious to make more rapid progress, he succeeded in starting a similar venture on his own account. Some northern friends, having become interested, advanced him the requisite amount of capital, which he judged necessary to supplement his own hard-earned savings. For some years he struggled with varying fortune, now hopeful, again discouraged, and sometimes uncertain of the results which he might achieve, until at length in one fatal hour his entire stock was destroyed by fire. Apparently ruined, but still full of pluck and unshaken in his aspirations, his principal thought was to sustain his good reputation. There was then some outstanding indebtedness against him; these claims being at once compromised, he was technically relieved of all obligations; but to him this solution was not by any means satisfactory; for within a few years, when prosperity was again smiling upon him, he paid every one of his former creditors what- ever balance still remained due them, as he conceived it, to make one hundred cents on the dollar. The next step taken by Samuel M. Nickerson was the turning- point in his life. In 1858 he removed to Chicago. Again borrow- ing the necessary funds on the security of his good name from some persons who yet had faith in his ability, he began anew for himself in this busy center of the West. This time he engaged in distilling high wines and alcohol; speedily reaping the rewards of his labors, he was soon able to lend an ear to other business pro- jects. When, in 1862-1863, the feasibility of establishing a national bank was the topic of discussion among the members of a little coterie of Chicago capitalists, Mr. Nickerson was an ardent advo- cate of the project. He subscribed liberally to the stock of the First National Bank, assisted materially in its organization, and was elected one of the first board of directors. Almost imme- diately he was chosen vice-president of the institution, and in 1867, upon the death of President Aiken, was selected as his suc- cessor. For twenty-four years he continuously served in this capacity; resigning in 1891, as he thought finally, he was allowed to enjoy only a few years of respite; for in 1897 he was again called to take the helm; but three years later once more suc- ceeded in retiring from his post. In 1864 Mr. Nickerson abandoned the distilling business, and 184 The First National Bank of Chicago in the same year was chosen president of the Chicago City Horse Railroad Company, in which position he displayed during his term of seven years distinguished executive ability. In 1867 he was the chief force in the organization of the Union Stock Yards National Bank (now the National Live Stock Bank), was its presi- dent for six years, and long afterwards a director. He has also been deeply interested in many other important commercial, rail- way, and financial enterprises. The management and direction of the affairs of the First National Bank, however, gradually absorbed the entire attention of Mr. Nickerson; as this institution rapidly developed under the inspiration of himself and his associates it exacted more and more devotion on their part. For many years he was the central figure in its guidance; to it he zealously gave the best portion of his life, undisturbed by anything which did not con- tribute to its advancement, or was not incidental to its welfare. During his incumbency of the presidency the institution passed through many crises, not only in its own history, but in that of the community with which it had become so closely identified. Thrice Mr. Nickerson advised in the erection of a banking structure: first when the old building at the southwest corner of State and Washington streets was erected, again upon its restoration after the great fire, and finally when the edifice at present occupied was being planned and completed. Mr. Nickerson's personality, as viewed in the days of his greatest activity, was most estimable. Democratic in his habits, genial in disposition, and attentive to every reasonable request, he won the admiration of all those who had occasion to know him. Courteous in every emergency, and gracious under the most unex- pected contingencies, he neither sought renown nor evaded his just obligations. His home life has been ideal. Fortunate in the science of amassing wealth, he has regarded money more as a means than an end. In December, 1858, Mr. Nickerson married Mathilda, daughter of Isaac Crosby, of Brewster, Massa- chusetts. In his wife he found not only a helpmate but likewise an associate in the enjoyment of those pastimes to which he is devoted. Mrs. Nickerson is well known for her accomplishments and personal charms. Their original home fell a prey to the flames in 1871; but ten years later a beautiful house was built at the corner of Cass and Erie streets. Art has had two devotees in Mr. and Mrs. Nickerson. During their long residence in Chicago their private gallery of paintings was renowned as containing an exceedingly fine and valuable collection. Taste and wealth combined to render their selection of pictures in many respects unique; the best masters were here represented. For several years Mr. Nickerson also acted as director of the Art Institute, to which he gladly devoted many hours of service and a Biographical 'S liberal amount of funds. Finally, upon his departure from this city, he donated to it his splendid collection of paintings, engravings, Chinese and Japanese porcelain, jades and lacquers, ivory carv- ings, arms, and many other objects of art. In 1900 Mr. and Mrs. Nickerson removed to New York, where their one child, Roland C. Nickerson, also resides. Since this change of residence Mr. Nickerson has not been engaged in active business. He spends about six months of the year in the metrop- olis, and the remainder of the time at East Brewster on Cape Cod. ORVILLE PECKHAM Orville Peckham was born on October 30, 1846, at Newport, Rhode Island; graduated from Brown's University in 1867; was admitted to the bar of Rhode Island in i86g, and subsequently to that of Illinois upon his removal to this state. From the autumn of i86g until the spring of 1872 he engaged in his profession at Providence, Rhode Island; then in company with Edward O. Brown, he came to Chicago, a partnership for the practice of law being immediately formed, which still exists under the firm name of Peckham, Brown & Packard. Without severing this connec- tion, Mr. Peckham was chosen special attorney of the First National Bank, on January 16, 1879, and since that date his time and energy have practically been exclusively devoted to the affairs of that institution. From 1888 to i8go, and again in 1891-1892 he likewise served as a member of the board of directors. EUGENE S. PIKE Eugene S. Pike, son of Daniel Harmon and Jerusha Hartwell Pike, was born at Perry, Lake County, Ohio, on October 5, 1835. His lineage is originally English, his ancestors on both sides hav- ing arrived in New England about 1635. The lad lost his father at an early age, and was soon compelled to earn his own support. When he was only eleven, his mother also was called to the better world. The orphaned boy then divided his time between work on the farm in summer and interrupted courses at the district school in winter. His one dominant ambition was to secure a college education. After much arduous labor in obtaining the preliminary preparation, and two years spent at Kirtland and Hiram seminaries, he was admitted as a student at Antioch Col- lege, where he remained two years. His first business venture was in dealing in fruit-trees, and 1 86 The First National Bank of Chicago afterwards in importing nursery stock from France. In 1861 he embarked in the banking and brokerage business at Painesville, Ohio, where he attained considerable success and accumulated some means. Six years later he came to Chicago. Perceiving at once the great future of real estate, he invested his means in ground situated in the business district of the south division, and little by little built houses and blocks upon this property. By so doing he not only augmented his own wealth, but contributed decidedly to the improvement and development of the city. In this sense he is to be reckoned as one of its public benefactors. While Mr. Pike has turned his chief attention to the real estate market, he has not by any means been inactive in other directions. From time to time he has been interested in horticul- ture. The chief distinction which he has won has been in the financial world. In 1885 he was elected to the directory of the First National Bank, on which he has since then uninterruptedly served. He is also trustee of the Northwestern Mutual Life In- surance Company. During the World's Fair he was one of the directors of the Columbian Exposition Company, and likewise a member of the Committee of Organization, in which position he rendered most efificient service. When the Manchester Fire As- surance Company of England was, in 1891, establishing a branch in the United States, it selected him as one of its three trustees in this country. NORMAN B. REAM Norman B. Ream, son of Levi and Highley King Ream, was born on a farm in Somerset County, Pennsylvania, on November 5, 1844. Originally his paternal ancestors had migrated from Ger- many, and his maternal ancestors were Scotch and English. The lad enjoyed only the advantages of a district school, supplemented by a course in a normal institute. At the age of fourteen he him- self was already a teacher at the salary of seventeen dollars per month ; during the summer season he worked on a farm. A little later he embarked in business as a photographer, which pursuit he followed until seventeen years of age. The Civil War then breaking out, young Ream went out as a private, in the fall of 1861, in Company H,85th Pennsylvania Vol- unteer Infantry. With his regiment he took part in McClellan's campaign of 1862 ; for distinguished action in battle was commis- sioned second lieutenant ; soon afterwards won promotion to a first lieutenancy, and was upon two different occasions severely wounded, being finally incapacitated from further service. He then returned to Pennsylvania for a brief time, entered a commercial college at Pittsburg, and soon was employed as clerk Biographical 187 in a general store at Harnedsville. In September, 1866, the op- portunities of the West having attracted his attention, he moved to Princeton, Illinois, where he served as clerk in a dry goods house, which he afterwards purchased. Subsequently he settled in Osceola, Iowa, where he engaged in the grain and agricultural implement trade. In 1871, just before the great fire, Mr. Ream removed to Chicago, and forming an association with Samuel Coffman, under the name of Coffman & Ream, started in the live stock commission business. In this venture prosperity smiled upon him, and money was accumulated. In 1875 he joined the Chicago Board of Trade. In the last-mentioned year his firm became known as George C. Ball & Company ; two years later it was re- organized as Norman B. Ream & Company. Until 1884 Mr. Ream devoted his time and attention to its affairs. He about this time became a member of the New York Stock Exchange, and at that date withdrew from active participation in the gram commission business; although he retained a special partnership interest in the new firm of W. R. Clark & Company, then formed, until 1889, when he finally retired from the grain business. For a time he was vice-president of the Call Board. Aside from his principal occupation, Mr. Ream has ever had other important interests. In i8go he was chosen a member of the board of directors of the First National Bank, in which capa- city he has since then continuously served. He has been an active participant in many of the large building operations in Chicago, among which is the Rookery ; he has been a director of the Illinois Central Railway, and likewise in more recent years has been identified with the reorganization of the Baltimore & Ohio Railroad, in which property he is now interested; he is also a member of the board and prominent in the operations of the Erie Railroad, besides having an important part in many other enterprises. GEORGE T. SMITH George T. Smith, son of Thomas P. and Dorothy Ingalls Smith, was born at Providence, Rhode Island, on May 10, 1849. Together with his parents he removed, in 1857, to Lockport, Illinois, and subsequently, in 1865, to Chicago. His early education was received in the public schools of Lockport, and afterward at East- man's Business College in Poughkeepsie, New York. As soon as his course of instruction had been completed he secured a posi- tion as book-keeper and general clerk with Spruance, Preston & Company, with whom he remained eight years. When twenty-four years of age he engaged in the brokerage business, and two years 1 88 The First National Bank of Chicago later formed a partnership with Henry G. Gaylord under the firm name of Smith & Gaylord. This connection lasted only two years, since which time Mr. Smith has not had any associate. On the Board of Trade he has always been active; in 1878-1879 he served as a member of the arbitration committee; in 1880-1881 was on the committee of appeals; in 1884 was elected second vice-president, and in 1885 first vice-president. At the next elec- tion and five years later he might have been chosen president of the board, but because of his varied interests and his frequent absence from the city, he declined this distinction. Mr. Smith is connected with numerous important enterprises. He is a director of the City Railway Company of Chicago, the Diamond Match Company, the Equitable Trust Company and several other corporations. In 1899 he was elected to the direc- torate of the First National Bank. RICHARD J. STREET Richard J. Street was born at Hamilton, Canada, on November 13, 1846. At the age of fifteen years he left school and began active life in the employ of an insurance ofifice; within a short time he was made book-keeper, which position he occupied three years. The evident advantages of Chicago attracted his attention after the close of the Civil War, and he came hither, arriving in the city on October 16, 1865. The following day he secured a place in the First National Bank as a messenger. Since that time he has been steadily promoted. In 1871 he was appointed chief clerk, in 1882 assistant cashier, and finally, on June 30, 1891, cashier. WILLIAM J. WATSON William J. Watson, son of James V. and Elizabeth M. Watson, was born at Philadelphia, Pennsylvania, on March 26, 1843. In that city he resided until December 3, 1863. Having graduated in June of that year from the Philadelphia Central High School, he removed first to Battle Creek, Michigan, and subsequently, in the spring of 1870, to St. Louis, Missouri. Here he served as the Western representative of the Middleton Car Spring Company of Philadelphia, and still remaining in the same employ he came to Chicago, on May i, 1873. In 1890 he was elected president of the company. In 1884 he organized the Buda Foundry & Manu- facturing Company; in 1886 the Hewitt Manufacturing Company; and in 1887 the Fort Madison Iron Works Company, serving as president of these different corporations until 1899-1900, the date of his retirement from all active business except that of banking. Biographical 189 Mr, Watson was long identified with the Metropolitan National Bank and the American Trust & Savings Bank. In the first named institution he served as a director continuously, from January i, 1885, and as vice-president from January i, 1895, until the close of its career. Prior to the last-mentioned date he was also a director in the American Trust & Savings Bank, of which he was one of the incorporators. Upon the absorption of the Metropolitan National Bank by the First National Bank he was chosen a director in the latter institution. FRANK O. WETMORE Frank O. Wetmore was born at Kalamazoo, Michigan, on November 12, 1867. Shortly thereafter his parents removed to Adrian, Michigan, where he attended school until 1883. In the spring of that year he began work in the hardware store of his father. In 1886 he came to Chicago, secured employment in the First National Bank, and worked in various capacities until 1891; at that time he was appointed "general man," which position he occupied till 1897. At this latter date he was elected auditor of the institution. JAMES D. WOLEY James Decker Woley was born on February 10, 1859, at Ma- quoketa, Iowa, and graduated from Hamilton College, Clinton, New York, with the class of 1882. He came to Chicago soon after- ward, and immediately entering the Union College of Law, finished his course and was admitted to the bar in 1884. Within a short time he was employed in the legal department of the First Na- tional Bank, and subsequently was chosen its assistant attorney. OTTO YOUNG Otto Young was born at Elberfeld, Germany, on December 20, 1844. His parents were in good circumstances. The lad in early years attended the common schools, and was looking for- ward to a university education when, in 1858, his father died. This event turned the course of his career. Having already some rela- tives in New York, he came at once to America. For the next eighteen months he continued his schooling; then seeking some employment he at first obtained a clerkship in a store, at a weekly salary of $3. After the Civil War he started on his own account in the 190 The First National Bank of Chicago fancy goods and jewelry trade; and in 1867 traveled throughout the West for a New York house. On these trips he happened to come to Chicago, and by a coincidence, was here during the days of the great fire. Returning East to close up his affairs, he again came to this city early in 1872, with the intention of making the place his permanent home. He soon opened a wholesale jewelry house at 149-151 State street, where it is still located. For some years he devoted himself principally to the conduct of this busi- ness. In 1886, when The Fair was incorporated, with a capital stock of $200,000, Mr. Young purchased a half interest and assumed the general management of the establishment. Two years later its capital was fixed at $500,000, and again, in 1890, it was increased to $1,000,000. In due course all the buildings originally occupied were removed, and in their stead the present structure was erected. The Fair is now one of the largest institutions of the kind in the United States. Mr. Young has devoted all his time and attention, unremit- tingly and without stint, to the advancement of business interests. He was a director in the Columbian Exposition Company, and the chairman of its Committee on Ways and Means; in this capacity he was chiefly instrumental in raising the first $5,000,000 for the World's Fair, thus insuring its success at a critical juncture. In 1900 he was elected a director of the First National Bank, and has likewise served for some time upon the directorate of the Chicago City Railway Co. APPENDICES APPENDICES LIST OF MEMBERS OF THE BOARD OF DIRECTORS OF THE FIRST NATIOX.^L BANK OF CHICAGO FROM ITS ESTABLISHMENT IN 1863 TO 1902 *tAiken, Edmund, 1 863-1 867. Allen, Benjamin F., 1871-1874. *tAllerton, Samuel W., 1863- : [Barker, John H., 1900. ::BartIett, Adolphus C, 1902- :;Boulton, George D., 1897- *'Bronson, Tracy J., 1863-1867. fBrown, William L., 1900- Carpenter, Augustus A., 1883- 1900. Conover, Charles H., 1900- 1902. tCrosby Isaac, 1876-1877. fCrumbaugh, Frederick, 1869- 1872. JCummings, D. Mark, 1900- *Fargo, James C, 1863. tForgan, David R., igoo- jForgan, James B., 1892- Gage, Lyman J., 1870-1897. Gray, Franklin D., 1866-1899, tHall, Elbridge G.. 1863-1870. ♦JHoward, Samuel G. D., 1863- 1867. *tHutchinson, Benjamin P., 1863- 1 867. JKeith, Elbridge G., 1902- fLawrence, Edward F., 1870- 1876, 1877-1898. fLewis, Henry B., 1867-1869. JMorris, Nelson, 1872- Nickerson, Roland C, 1892- 1900. *JNickerson, Samuel M., 1863- Peckham, Orville, 1888-1890, 1891-1892. JPike, Eugene S., 1885- Porter, Henry H., 1868-1891. JReam, Norman B., 1890- *tRice, Byron, 1863-1868. *tSherman, John B.. 1 863-1867. tSinger, Horace M., 1879-1888. ::Smith, George T., 1899- ::Spoor, John A., 1900- jSymonds, Henry R., 1882- 1892. tTalcott, Mancel, 1867-1878. fThompson, Daniel, 1869- 1871. Walker, George C, 1867-1S69. JWatson, William J., 1902- fWebster, George, 1867- 1870. fWilmarth, Henry M., 1874- 1885. JYoung, Otto, 1900- ♦Member of original board of directors. tMember of present board. TDeceased. 193 194 The First National Bank of Chicago LIST OF OFFICERS OF THE FIRST NATIONAL BANK PRESIDENTS Edmund Aiken, 1863-67. 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, 1900- George D. Boulton, 1900- Howard H. Hitchcock, 1902- SECOND VICE-PRESIDENTS Henry M. Kingman, 1891. James B. Forgan, 1892. George D. Boulton, 1897-1900 CASHIERS Edward E. Braisted, 1863-1866. Cornelius R. Field, 1866-1868. Lyman J. Gage, 1868-1882. Henry R. Symonds, 1882-189I. Richard J. Street, 1891- assistant cashiers Augustus W. Wheeler, 1864-1866. Charles J. Schmidt, 1866-1868. Henry R. Symonds, 1869-1882. Henry M. Kingman, 1882-1891. Holmes Hoge, 1891- August Blum, 1900- Edward Dickinson, 1902- Frank E. Brown, 1900- Charles N, Gillett, 1900- Appendices 195 SECOND ASSISTANT CASHIERS Richard J. Street, 1882-1891. Frank E. Brown, 1893-1900. AUDITOR Frank O. Wetmore, 1897- MANAGERS, FOREIGN EXCHANGE AND BOND DEPARTMENT George D. Boulton, 1891-1897. Emile K. Boisot, 1897-1901. ASSISTANT MANAGER John E. Gardin, 1897-1901. MANAGER FOREIGN EXCHANGE DEPARTMENT John E. Gardin, 1901- ASSISTANT MANAGER Max May, 1901- MANAGER BOND DEPARTMENT Emile K. Boisot, 1901- ATTORNEY Orville Peckham, 1879- ASSISTANT ATTORNEY James D. Woley, 1900- NOTE — In 1900 two vice-presidents and four assistant cashiers were elected; in 1902, after the absorption of the Metro- politan National Bank, an additional vice-president and one more assistant cashier were chosen. In 1901 the foreign exchange and bond business were sep- arated into two distinct departments. 196 The First National Bank of Chicago STATEMENT SHOWING DIVIDENDS DECLARED BY THE FIRST NATIONAL BANK OF CHICAGO FROM ITS FOUNDATION TO DATE May May Nov. May Jan. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. June Dec. Mar. June Sept, Sept, Dec. DECLARED. 2, 1864 2, 1864 15, 1864 I, 1865 I, 1866 1866 1866 1867 1867 1868 1868 1869 1869 1870 1870 I87I 1 87 1 1872 1872 1873 1873 1874 31. 1874 30, 1875 1875 1876 1876 1877 1877 1878 1878 1879 31. 1879 31, 1880 30, 1880 10, 1880 30, 1880 31, 1880 30. 31. 30. 31. 30. 31. 30. 31. 30. 31. 30. 31. 30, 31. 30. 31. 30. 31. 30, 31. 30. 31. 30, 31. 30, FOR WHAT RATE PER TIME. CENT. Annual 16 Extraordinary 5* Semi-Annual 10 Semi-Annual 10 Semi-Annual 10 Semi-Annual 10 Semi-Annual 10 Semi-Annual 5 Semi-Annual 5 Semi-Annual 5 Dividend passed Dividend passed Dividend passed Dividend passed Semi-Annual Semi-Annual Dividend passed Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Annual Semi-Anuual Semi-Annual Quarterly 3 Quarterly 3 Extraordinary 20 Quarterly 3 Quarterly 3 * To Subscribers of first $300,000 of stock. Appendices 197 DATE DECLARED. Mar. 31 June 30, Sept. 30, Dec. 31 Mar. 31, April 25, April 29, April 29, May 6, June 30, Sept. 30, Dec. 31 Mar. 31. June 30, Sept. 30, Dec. 31 Mar. 31 June 30, Sept. 30, Dec. 31 Mar, 31. June 30, Sept. 30 Dec. 31 Mar. 31 June 30, Sept. 30, Dec. 31 Mar. 31. June 30, Sept. 30 Dec. 31 Mar June 30, Sept. 30, Dec. -- Mar. June Sept. Dec. Mar. June Sept. Dec. 31. 31. 30. 30, 31. 31. 30. 30, 31. At 881 [881 882 882 882 \2 882 882 882 883 - 884 884 - 884 884 - 887 889 - - - - -ig - - - - )0 - - - ■ p - :890 - - - ■ 890 - - - - rmination of business FOR WHAT RATE PER TIME. CENT. - Quarterly 3 Quarterly 3 - Quarterly 3 Quarterly 3 - Quarterly 3 Special 100 - Special 100 Special 50 - Final 44.12* Two months 2 - Quarterly 2 Quarterly 2 - Quarterly 2 Quarterly 2 - Quarterly ^% Quarterly 2Vz - Quarterly 2'A Quarterly 2K - Quarterly 2>^ Quarterly ^Yz - Quarterly lYz Quarterly 2^ - Quarterly 1% Quarterly ^Yz - Quarterly 2>^ Quarterly 2>^ - Quarterly 2>^ Quarterly iY. - Quarterly 2Yz Quarterly 2K - Quarterly 2>^ Quarterly -i-Yz - Quarterly 2Yz Quarterly ^Yz - Quarterly 2>^ Quarterly ■2.Yz - Quarterly 2>^ Quarterly 1'A - Quarterly 2>^ Quarterly 3 - Quarterly 3 Quarterly 3 - Quarterly 3 Quarterly 3 under first charter. 198 The First National Bank of Chicago Dec. Mar. ii I - I ii - i2 DATE DECLARED. Mar. 31, I June 30, I Sept. 30, I 31. I 31. I June 30, 1892 - Sept. 30, 1892 Dec. 31, 1892 - Mar. 31, 1893 June 30, 1893 - Sept. 30, 1893 Dec. 31, 1893 - Mar. 31, 1894 June 30, 1894 - Sept. 30, 1894 Dec. 31, 1894 - Mar. 31, 1895 June 30, 1895 - Sept. 30, 1895 Dec. 31, 1895 - Mar. 31, 1896 June 30, 1896 - Sept. 30, 1896 Dec. 31, 1896 - Mar. 31, 1897 June 30, 1897 - Sept. 30, 1897 Dec. 31, 1897 - Mar, 31, 1898 June 30, 1898 - Sept. 30, 1898 Dec. 30, 1898 - Mar. 30, 1899 June 30, 1899 - Sept. 30, 1899 31, 1899 - 31, 1900 June 30, igoo - Sept. 30, 1900 Dec. 31, 1900 - Mar. 31, 1901 June 30, 1901 - Sept. 30, 1901 Dec. 31, 1901 - Mar. 31, 1902 Dec. Mar. FOR WHAT TIME. RATE PER CENT. Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Quarterly 3 Appendices 199 Statements of Condition at Different Periods FROM 1863 ^^ 1902 STATEMENT OF CONDITION September 30, 1863 ASSETS Loans and discounts ------- $149,650.00 United States bonds 91,000.00 Cash resources: Due from banks - - - - $109,773.73 Checks for clearing house - - 68,597.12 Cash on hand . - - - 60,828.13 239,198,98 $479,848.98 LIABILITIES Capital stock $205,000.00 Undivided profits 1.75949 Deposits 273,089.49 S479.848.98 statement of condition December 30, 1863 ASSETS Loans and discounts $276,987.53 United States bonds 176,000.00 Furniture and fixtures 201.62 Cash resources: Due from banks . - - - $64,141.73 Checks for clearing house - - 89,303.09 Cash on hand 130,251.32 Due from directors - - - 6,000.00 289,696.14 $742,885.29 liabilities Capital stock $300,000.00 Undivided profits 11,699.49 Due United States Treasurer 195,046.72 Deposits - - - 236,139.08 $742,885.29 aoo The First National Bank of Chicago STATEMENT OF CONDITION October ist, 1864 ASSETS Loans and discounts $809,730.94 United States bonds 441,500.00 Furniture and fixtures 689.50 Cash resources: Due from banks - - - $197,252.42 Checks for clearinghouse - - 38,216.40 Cash on hand - - - - 446,350.83 681,819.65 Si. 933.740.09 LIABILITIES Capital stock - - $600,000.00 Surplus fund 407.26 Other undivided profits 66,752.88 Circulation notes from Comptroller $330,000.00 Less amount on hand - - 10,000.00 320,000.00 Deposits 946,579.95 $1,933,740.09 STATEMENT OF CONDITION October 9, 1869 assets Loans and discounts $2,381,957.79 United States bonds ...... 767,050.00 Furniture and fixtures 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 $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 Appendices 201 STATEMENT OF CONDITION December 27, 1872 ASSETS Loans and discounts $2,493,063.06 United States bonds - 675,800.00 Building, furniture and fixtures - - . . 264,361.38 Cash resources: Due from banks - - - - $549,058.04 Cash on hand - - - - 921,152.55 1,470,210.59 $4,903,435-03 LIABILITIES Capital stock $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 250.00 Deposits 2,810,240.88 $4,903,435-03 STATEMENT OF CONDITION December 26, 1873 ASSETS Loans and discounts $3,051,649.53 United States bonds -..-.. 737,388.66 Real estate, furniture and fixtures . - . - 264,361.38 Cash resources: Due from banks - - - $479,221.85 Checks for clearing house - 282,552.16 Cash on hand - - - - 1,038,927.92 1,800,701.93 $5,854,101.50 liabilities Capital stock -------- $1,000,000.00 Surplus fund - - - 500,000.00 Other undivided profits ------ 139,722.96 Circulation notes from Comptroller - - - 574,030.00 Dividend --------- 40.00 Deposits - - 3,640,308.54 $5,854,101.50 202 The First National Bank of Chicago STATEMENT OF CONDITION December 31, 1874 ASSETS Loans and discounts ------- $4,088,426.92 United States bonds ------ 684,955.26 Real estate, furniture and fixtures - - - . 264,415.38 Cash resources: Due from banks - - - $848,488.91 Checks for clearing house - - 371,535.03 Cash on hand - - - - 790,589.26 Due from United States Treasurer 56,115.00 2,066,728.20 $7,104,525.76 LIABILITIES Capital stock -------- $1,000,000.00 Surplus fund -------- 600,000.00 Other undivided profits 49,489.98 Circulation notes from Comptroller - - - 465,070.00 Dividend 50,010.00 Deposits --------- 4,939,955.78 $7,104,525.76 STATEMENT OF CONDITION December 12, 1879 ASSETS Loans and discounts $6,730,846.31 United States bonds - 492,982.70 Other bonds and stocks ----- 219,306.84 Real estate, furniture and fixtures - - - - 203,690.65 Cash resources: Due from banks - - $1,947,222.72 Checks for clearing house - 412,492.36 Cash on hand - - - - 1,734,325.51 Due from U. S. Treasurer - 6,500.00 4,100,540.59 $11,747,367.09 liabilities Capital stock - - - $1,000,000.00 Surplus fund 750,000.00 Other undivided profits ------ 377,882.89 Circulation notes from Comptroller - - - 59,197.00 Dividend - 110.00 Deposits 9,560,177.20 $11,747,367-09 Appendices 203 STATEMENT OF CONDITION December 20, 1884 ASSETS Loans and discounts United States bonds - Other bonds and stocks Bank building . . . . Cash resources: Checks for clearing house Cash on hand LIABILITIES Capital stock - Surplus fund Other undivided profits Deposits $10,068,871.00 80,600.00 544,850.00 500,000.00 8,283,339.00 §19,477,660.00 $3,000,000.00 400,000.00 350,607.00 I5.727,o53-oo §19,477,660.00 STATEMENT OF CONDITION December ii, 1889 ASSETS Loans and discounts United States bonds - Other bonds and stocks Bank building - . . - Cash resources: Checks for clearing house Cash on hand §15,803,617.00 57,200.00 881,550.00 500,000.00 - 12,357,180.00 $29,599,547.00 liabilities Capital stock -------- 3,000,000.00 Surplus fund 1,500,000.00 Other undivided profits - 797,107.00 Deposits 24,302,440.00 §29,599,547.00 204 The First National Bank of Chicago STATEMENT OF CONDITION December 19, 1894 ASSETS Loans and discounts ------ $17,884,431.00 United States bonds ------ 778,636.00 Other bonds and stocks ----- 1,605,378.00 Real estate, furniture, and fixtures - - - - 675,000.00 Cash resources: Checks for clearing house ) x, -,-,,- ^.x ^^ Cash on hand ^ S ' ' ' '4.725.24i.oo $35,668,686.00 LIABILITIES Capital stock -------- 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 STATEMENT OF CONDITION December 2, 1899 ASSETS Loans and discounts ------ $24,824,263.00 United States bonds - - 627,719.00 Other bonds and stocks ----- 3,766,203.00 Cash resources: Checks for clearing house j .... 19017,738.00 Cash on hand ) ^'^ ' '-^ $49,135,923.00 liabilities Capital stock - - $3,000,000.00 Surplus fund - - - 2,000,000.00 Other undivided profits 505,854.00 Deposits - - 43,630,069.00 $49,135,923.00 Appendices 205 STATEMENT OF CONDITION April 30, 1902 ASSETS Loans and discounts $45,192,862.53 United States bonds (par value) - - - 1,549,030.00 Other bonds and stocks (market value) - - 6,820,608.96 Cash resources: Due from banks (Eastern ex.) - $14,067,980.08 Checks for clearing house - 2,373,712.28 Cash on hand - - - - 17,441,007.33 Due from United States Treasurer 119,000.00 34 , 00 1 , 699.69 $87,564,201.18 LIABILITIES Capital stock paid in $5,000,000.00 Surplus fund 2,000,000.00 Other undivided profits 1,768,892.94 Discount collected but not earned - - - 268,596.52 Interest accrued on interest-bearing certificates - 5,738.61 United States bond account . - - - 200,000.00 Circulation notes received from Comptroller $993,500.00 Less amount on hand - - - - 202,810.00 790,690.00 Dividends unpaid 3,654.00 Deposits - - 77,526,629.11 $87,564,201.18 INDEX Aiken, Edmund, 51, ^j, 55, 57, 58, 61, 62, 1.13. 136. i93> 194- Aiken & Norton, 51, 52, 53, 54. Allen, Benjamin F., 66, 69, 157, 158, 193- Allerton, Samuel W., 51. 53, 57, 58, 76, 77, 8s, 92, 97. 171 ■ 172, 193- Atlas National Bank, 110. Baker, W.T., 112,114. Bank of America, 31, 33. Bank of Chicago, 33. Bank of Commerce, 33, iii. Bank, first, in the United States, 11, 12. Bank of North America, 12. " Bank War," the, 33, 34. Banking, free, 22-25. Banking in the Colonies, 9. Banking system, necessity of, 5. Bank 01 the United States, the first, 12, 13, 14. Bank of the United States, second, 15, 17, 18, 23, 24. Banks, popular animosity to, 16-22. Banks, State, 16, 17, 19-25; misconcep- tion of them, 19; in Massachusetts, 20; in New York, 20; in Maryland, 20; in New Jersey, 20; in Ohio, 20; in Indiana, 20; in Michigan, 20; vari- ous types, 21; variety of experience, 21-24; their weakness, 38, 39. Barber, O. C, 112. Barbour, L., & Day, Calvin, 59. Barker, John H., 95, 98, 112, 114, 173, 193- Barrett, S. E., 112, 114. Bartlett, Adolphus C, loi, 119, 173, 174. 193- Bartlett, William J., 118. Biographies, J«r(? the respective names. Bishop, A. E., 59. Blum, August,' 96, 98, no, in, 174, 194. Boisot, Emile K., 93, 98, 174, 195. Boone, L. D., 28. Boulton, George D., 84,90,93,98, 175, 193, 194. 195- Brainard, W. N., 57. Braisted, Edward E., 54, 55, 61, 194. Brand, Alexander, & Company, 32. Breese, J. S., 28. Briggs, Clinton, 107. BronsoD, Tracy J., 53. 57. 58. 62, 136, 193. Brooks, Jane A., 76. Brown, Frank E., 86, 93, 98, 175, 194, 195. Brown, W. H., 26. Brown, William L., 95, 98, 112, 114, 176, 193. Burch, I. H., 32. Burch, I. H., & Company, 32. Carpenter, Augustus A., 79, 92, 95, 118, 119, 15S, IS9, 193- Chase, Samuel P., 20, 36, 40, 42, 43. Chicago banks in 1872, 67, 68. Chicago Bank, 33. Chicago Clearing House Association. 60. Chicago, early banking in, 26-35; the State Bank of Illinois in, 26, 27; other State banks in, 33-3>; con- ditionsat outbreak of Civil War, 49, 50; in 1863,51; designation as cen- tral reserve city, 81. Chicago Marine and Fire Insurance Company, 27, 28, 32. Circulating medium, variety of, in colonial times, 6; after the Revolu- tion, 8. City Bank of London, 67. Clarke, J. Coe, 32. Collamer, Senator, 44. Continental Congress, experiences ol the, 8, II. Connell, Charles J., 107, 109. Conover, Charles H., 93, gH, loi, 159, 193. Coolbaugh, William F., 107, log. Coolbaugh & Co.'s Bank, 55. Corwith, Nathan, 112. Crane, D. E., 59. Crosbv, Isaac, 193. Crosby, W. H., 59. Crumbaugh, Frederick, 64, 137, 193. Culver, George N., 76. Cummings, Columbus R., no. Cummings, D. Mark, 95, 98, 112, 114, 176, 177, 193. Curtis, Charles H., 76. Curtis & Tinkham, 32. Dallas, Secretary of the Treasury, 14, 42. Deering, William, 117, 118, 119. Depreciation of currency, 6, 7, 10, 11. Dewey, David B., 112. Dickinson. Edward, 102, 118, 119, 177, 194. 207 2o8 Index Dividends, statement of, 196-198. Dixon, Arthur, n8, 119. Doolittle, H., 49. Double standard, the, 8. Dow, Asa, 112. Dows, David, 112. Dupee, John, 118. Dwight, J. H., 112. Eckhart, B. A., 118, 119. Eddy, D.C.,32. Eldridge, Isaac, 76. Ellsworth, James W., iii. Exchange Bank, 33. Fairbank, Nathaniel K., 76, 112. Fargo, James C, 53, 56. 160, 161, 193. 194. Farmers' and Mechanics' Bank, 32. Farwell, John V., 107, no. Farwell, Simeon, 118. Field, Cornelius R., 61, 63, 161, 162, 194. Financial conditions in the colonies, 6, 7, 8; after the Revolution, 8. Financial strength, importance of, 3. First colonial bank, 5, 9, First National Bank of Chicago, 49-104; organization of, 50-55; earliest rec- ord, 52; original articles of associa- tion, 52, 53; incorporators, 53; first organization, 53; capital stock, 53, 54; inauguration of business, 54; first statement, 55; removal, 56; action on loans, 58; increase in capital, 58, 59, 65, 73, 78, 95; stockholders, early, 53. 57. 59. 60; death of President Aiken, 61; election of President Nickerson, 61; removal to building corner State and Washington Sts., 62; descriptionof it, 62, 63; election of Lyman J. Gage as cashier, 63, 64. revision of by-laws, 64-66; the great fire, 66; growth, 70; third building, 71-73; recognition of employees, 73, 74,78; dissolution of the first asso- ciation. No. 8 ; reorganization as No. 2670, 76; incorporators, 76; cap- ital, 76; articles of association, 76, 77; directors and officers, 77; rein- auguration of business, 77; increase of capital, 78; sale of old building, 78; election of officers, 78, 84, 93, 95, 98; lease of quarters, 78; office r rrangements, 79, 80; cash prizes to employees, 81; bond and foreign de- partments, 81; resignation of Presi- dent Nickerson, 82-84; election of Lyman J. Gage as president, 84; subscription to Columbian Expo- sition, 85; depression of 1895,86; address to stockholders, 87, 88; clearing-house certificates, 88, 89; resignation of President Gage and his appointment as Secretary of the Treasury, 89, 90; resumptionof bank presidency by Samuel M. Nicker- son, 90; growth of institution, 90, 91; establishment of pension bureau, 92; retirement of Director Gray, 92-93; resignation of President Nickerson, 92; absorption of Union National Bank, 93-98; increase in stock, 95; election of officers, 98; separation of foreign exchange and bond business, 98; Clerks' Savings Association, 98; magnitude of busi- ness, 99; absorption of the Metro- politan National Bank, 99-102; elec- tion of officers, 101,102; magnitude of the bank, 102; its field and in- fluence, 103, 104; the new bank building, 125-129; description, 127, 128; statements, 55, 57, 59, 60, 63, 65, 67, 6g, 79, 82, 86, q6, 97. 100, loi, 199- 20;; election of cfirectors, 53, 56, 57, 58, 60, 62, 63, 64, 65, 66, 68, 6g, 70, 77, 79, 80, 81, S2; dividends, 58, 60, 75, 78, 82, 85, 91. 93. 95. 97, 98, loi, 196. 198. Forgan, David R., 94, 95, 98, in, 114, 177. 178, 193. 194- Forgan, James B., 85, 90, 92, 93, 98, 178, 193. 194- Fox & Howard, 59. Frankenthal, E., 117, 119. Freeman, Burt & Co., 59. French, L. & Co., 59. Fuller, O. H., 112. Fuller, William A., 118. 119. Gage. Lyman J., 64, 65, 68, 76, 77, 78, 84, 162, 166, 193, 194. Gallatin, Albert, 14., 42. Gallup & Hitchcock, 59. Gardin, John E., 93, 98, 178, 195. Getty, H. H.. 112. Gillett, Charles N., 93, 98, 179, 194. Glover, S. J., 59. Gold Act, the, 9. Grannis, W. C. D., 109, no. Grav, Franklin, D., 60, 61, 62,63, 76,77. 78, 92, 93, 166, 168. Gray, Moses, W., 76. Grey, C. F., 112. Grey, Marshall & Co., 59. Griffin & Vincent, 32. Grimes, J. W., 112. Grundy County Bank of Morris, 49. Hall, E. G., 56, 57. 58, 65, 138. 139. 193- Hamilton, Alexander, 8, 12, 42. Harvey, T. W., n7. Hayes, F. W., 117. Hide and Leather National Bank, in. Higgins, George W., 76. Hipwell, W. O., no, in. Hitchcock, Charles, 66. 139, 140. Hitchcock, Howard H., 101, 118, 119, 179. 194- Index 209 Hoge, Holmes, 84, 93, g8, 179, 180, 194. Hooper, Mr., 43. Howard, Samuel G. D., 53, 57, 58, 60, 140, 141, 193. Howard, William D., 112. Hubbard, Gordon S., 26, 27. Hutchinson, Benjamin P., 51, 53, 54, 57,58,62,141,193. Hurd, A., 57. Illinois State Bank, 50. Illinois, State Banks in, 24, 26, 34, 35, 49. Ives, George A., 109, no. Indiana, State Bank of, 20. Jackson, Andrew, 16, 17. Jetferson, Thomas, 13. Jeffery. E.T.,ii8, 119. Jones & Patrick, 32. Kay, William B., 60. Kean, Samuel A., 117. Keen, William B., 59. Keith, Edson, 118. Keith, Elbridge G., loi, 117, 119, 180, 193- Kelley, David, no, in. 112, 114. Kennedy, George N., ^2- Kent, S. A., iiS. Kimball, William W., 76. Kimbark, S. D., 59. Kingman, Henry M., 78, 84, 142, 194. Kinzie, John H., 26. Kirk, 59. Knox, John J., 77. Lake, Richard C, no. Land banks, colonial, 9, 10. Lawrence, Edward F., 65, 76, 77, 91, 143. 145, 193- Lewis, Henry B., 62, 64, 145, 146, 193. Marine Bank of Chicago, 32, 49. Martin, S. K., 112. May, H. N., 112. May, Max, 98, 180, 181, 195. McCulloch, Hugh, 44, 54. McGuire, E. J. H., no. McLaren, John, m, 114. McPherson, John, 59. McVickar, Professor John, 42. Merchants' and Mechanics' Bank, 33. Merchants' Savings Loan and Trust Co., 50. Merchants' Loan and Trust Company, 64. Metropolitan National Bank of Chi- cago, consolidation with the First National Bank, 99-102; statements, 100; its history, 117-122; its organi- zation, 117; directors and officers, 117-119; growth, 119; removals, 120; statements, 120-122 ; dissolution, 122. Mississippi Marine and Fire Insurance Co., 32. Mitchell, Alexander, 29, 31. Monetary standard, importance of, 6. Morris, Robert, 12. Morris, Nelson, 66, 76, 77, 98, 181, 182, 193- Morris, Sarah, 76. Moore, William, 60. Munger, A. A., 112. Munger, Wesley, 107. Munn, Charles A., log. Murray & Brand, 31. National Banking Act, fundamental principle of, 20: history of, 36-46; motives for, 36-40; development of the idea, 40-42; opposition to it, 40- 44; first moved July n, 1S62, 43; en- acted February 25, 1S63, 44; revised J une 3, 1864, 44; subsequent amend- ments, 44-45; effects of the law, 45; discussion of, in Chicago, 50-51. National Bank statistics, 46. National Currency Act, see National Banking Act. National Safe Deposit Company, 72, 78. Newberry & Burch, 32. Nickerson, Matilda P., 76. Nickersou, Roland C, 76, 85, 93, 16S, 193. Nickerson, Samuel M., 51, 53, 54, 57, 58, 62, 65, 82, 92; shareholder, 76; di- rector, 77; election as president, 61: desire to resign as president, 82; final resignation, 83; resumes pres- idency, 90; director under new or- ganization, 97; biography, 182-185; as bank official, 193, 194. Oakley, W.C, no. Odell, James W., 112. OdelUJohn J. P., 109, no. Orr, Arthur, 118. Paine, Seth, 33. Panic of 1837, 29; of 1857, 34; of 1S73, 68; of 189=;, 86. Pearson, D. K., 118. Peckham,0rville,8i, 82,84,98, 185, 193, 195- Pennsylvania Bank, The, 12. Phillips, William B., 60. Pike, Eugene S., 80, 98, 185, 186, 193. Porter, Henry H., 63, 65, 76, 77, 84, 168, i6g, 193. Powers, Heman G., 107. Pratt, Laurin G., 112. Preston, David, 117. Preston, William D., 117, 118, 119. Preston, Kean & Company, 119. Producers' Bank of McLeansboro, 49. Quirk, D. L., 112. Rand, E. D., 112. Ream, Norman B., 82, 98, 186, iSi, 193. Reaper's Bank of Fairfield, 50. Rice, Byron, 51, 53, 57. 58, 63, 146, 147, 193- Richards, Crumbaugh & Shaw, 59. 2IO Index Richmond, Alonzo, 59 Roath, S. B., 57, 76. Ruxton & Co., 49. Ryerson, Martin, 59. Sample, Magdelina P., 76. Sanford, George P., 76. Sawyer, Edward C, 76. Sawyer, Harry C, 76. Sawyer, Henry E., 76. Schmitt, Charles J., 61, 148, 194. Secession, effects of, 38-40, 42. Scammon, J. Young, 32. Scottish Illinois Land and Investment Co., 28. Seymour, T. H., 57. Shaw, Gilbert B., 117. Shaw, Theodore A., 76. Sharp, J. S. & Co., 59. Shepard, Henry M., 57. Sherman, John, 43, 44, 46, 62. Sherman, John B., 53, 58, 60, 148, 149, 193- Singer, Horace M., 57, 69, 76, 77, 81, 149, 150- 193. , "Smith's Bank," 31. Smith, George, 28, 29, 33. Smith, George T., 76, 91- 94. 98, 187, 188, 193- Smith, George & Company, 29, 32. Smith, S. H.,6o. Smith, Thos. P., 76. Sound currency, necessity of, 35. Spoor, John A., 95, 98, 112, 114, 193. Statements of condition, 199-20;. Strachan & Scott, 29. Street, Richard J., 76, 78, 84, 93, 98, 188, 194. 195- Suflolk Bank System, 20. Swift, Elijah, 32. Swift, R. K., 32. Sycamore Bank of Sycamore, 49. Symonds, Henry R., 64,67,77,78,84,85, 150,151, 193, 194. Talcott, Mancel, 57, 60, 62, 69, 80, 151, 152, 193- Talcott, Marv H., 76. The Chicago City Bank, 33. The Commercial Bank, 33. The Farmers' Bank, 33. The Union Bank, 33. Thompson, Daniel, 64, 66, 107, 152, 154, 193- Thorne, W. C, 114. Tillinghast, 59. Tinkham, Edward I., 32. Treasury Bank of Griggsville, 50. Tucker, Bronson & Company, 32. Union i?ank of Boston, 49. Union National Bank of Chicago, con- solidation with the First National Bank, 94; sta*:ements, 97, 112, 113; organization, 107; earliest directors and officers, 107; its capital, 109; officers and directors, 109-111; absorption of Hide and Leather National Bank and Bank of Com- merce, III; removals, 113; dissolu- tion, 114. United States, early banking in, 3-18; natural wealth of, 3; increase in wealth of, 4. Walker, George C, 57, 62, 64, 169, 170, 193- Walworth, Charles M., iii. War of 1812, 14. Ware, Henry A., 117, 118. Watson, William J., loi, 118, 119, 188, 189, 193- Webster, Daniel, 15. Webster, George, 62, 63, 65, 154, 155, 193- Webster & Baxter, 59. Western Marine &Fire Insurance Co., 50. Wetmore, Frank O., 93, 98, 189, 195. Wheeler, Augustus W., 59, 60, 194. Wheeler, Calvin T., 107, 109, no. Williams, George T., 60. Williams, John E., 112. Williams, John W., !;7, 76. Wilmarth, Henry M., 57,69, 76, 77, 80, 156, 193. Wilson, C. L. & Co., 59. Wilson, William J., 76. Winston, F. S., 114. Wisconsin Fire and Marine Insurance Company, 20, 29, 31. Wisconsin, laws to restrain banking in, 22. Woley James D., 98, 189, 195. Woodward, James L., 117, 118 Young, Otto, 93, 94, 98, 189, 190, 193.