History of Linn County Iowa Part 92

THE CEDAR RAPIDS CLEARING HOUSE a.s.sOCIATION

The Cedar Rapids Clearing House a.s.sociation was organized largely through the efforts of R. T. Forbes, at that time cashier of the Citizens National Bank, and J. M. Dinwiddie, cashier of the Cedar Rapids Savings Bank. During the summer of 1902, Mr. Forbes and Mr.

Dinwiddie agitated the matter and in October of that year, as the result of their efforts, a committee of Cedar Rapids bankers, consisting of John T. Hamilton, J. M. Dinwiddie, Ralph Van Vechten, James E. Hamilton, J. W. Bowdish, Lawson Daniels, E. W. Virden, E. M.

Scott, Ed. H. Smith, E. E. Pinney, and R. T. Forbes, visited Davenport and investigated the workings of the clearing house a.s.sociation of that city.

Following that visit to Davenport, a meeting of the representatives of the banks of the city was held on November 3, 1902, at which meeting it was formally resolved to form a local a.s.sociation. A const.i.tution and by-laws were adopted on November 6, 1902, and the clearing house was regularly organized, with the following banks as members: Merchants National, Cedar Rapids National, Citizens National, Cedar Rapids Savings, Security Savings, American Trust and Savings, People's Savings. The first officers, elected December 3, 1902, were: President, J. M. Dinwiddie; first vice-president, E. M. Scott; second vice-president, Ed. H. Smith; treasurer, E. W. Virden; secretary and manager, R. T. Forbes.

After formal organization the clearing house lay dormant for several months and it was not until January 4, 1904, that the a.s.sociation actually began the work of daily clearings. The clearings for the first day amounted to a total of $127,000. The average per week for the first year was about $400,000. That the banking business of Cedar Rapids has grown with giant strides the past five years is evidenced by the fact that the clearings are now running well over one million dollars per week and are showing an average gain of 40 per cent over the corresponding weeks of last year. The week ending June 5, 1909, showed the remarkable increase of 130 per cent over the same week of 1908.

At the time of organization the banks of Cedar Rapids had a combined capital of $630,000, surplus and undivided profits of $400,000, and deposits of $7,800,000. At the present time they have a combined capital of $900,000, surplus and undivided profits of over $800,000, and deposits of $16,000,000. Since the organization of the clearing house the deposits of country banks has increased from $2,000,000 to more than $6,000,000, savings and time deposits from $4,200,000 to $7,200,000, and individual demand deposits from $1,200,000 to $2,200,000. Such a showing of growth and prosperity is an absolute index of local conditions and speaks more eloquently than words of the substantial manner in which this city is forging ahead in things financial.

J. M. Dinwiddie served as president until December, 1906, being succeeded by E. M. Scott, who served until December, 1908. Mr. Scott was succeeded by J. W. Bowdish, who resigned in March of this year, being succeeded by Kent C. Ferman. R. T. Forbes served as secretary and manager until December, 1906. He was succeeded by Charles Fletcher, Jr., who held the office until July, 1908, when he was succeeded by W.

J. Elliott. E. W. Virden, the first treasurer, was succeeded by John Burianek, Jr., who served until December, 1907, when he was followed by Louis Wokoun. The present officers are: President, Kent C. Ferman; first vice-president, James E. Hamilton; second vice-president, John Burianek, Jr.; treasurer, Louis Wokoun; secretary and manager, W. J.

Elliott.

The present membership comprises all the banks of the city, as follows: Merchants National, Cedar Rapids National, Commercial National, Cedar Rapids Savings, Security Savings, American Trust and Savings, People's Savings, Iowa State Savings, Commercial Savings. The clearing house a.s.sociation rooms are under the Merchants National Bank, and here representatives from each bank in the city meet at eleven o'clock each day to exchange checks, or "clear" the day's business.

The Commercial Savings Bank was organized December 13, 1905, with a capital stock of $50,000. Its officers were C. H. Chandler, president; W. C. LaTourette, vice-president; James L. Bever, Jr., cashier; with C.

H. Chandler, James L. Bever, Sr., W. C. LaTourette, H. Cushman, John B.

Bever, C. B. Robbins, E. J. Carey, A. Jeffrey, and C. Denecke, directors. The bank has enjoyed due prosperity. There have been some changes in its officers, C. H. Chandler continuing as its president to this date. C. B. Robbins and E. J. Carey are the present vice-presidents, and Ed. B. Zbanek, its cashier.

The Iowa State Savings Bank opened for business January 6, 1906, at the corner of Tenth avenue and Third street. The capital stock was $50,000.

It is known as the "South End Bank," and was organized for the especial accommodation of business men and individuals in the southern portion of the city. The first officers were: A. Tomec, president; V. O. Hasek, vice-president; and Joseph Lesinger, cashier. The present officers are: V. O. Hasek, president; J. J. Cerveny, vice-president, and Joseph Lesinger, cashier. Present capital stock $50,000; surplus, $5,000; total resources, $525,000; deposits, $700,000.

The People's Savings Bank was organized March 10, 1900, with T.

McCarthy, president; H. E. Witwer and J. J. Powell, vice-presidents; E.

W. Virden, cashier; and T. McCarthy, H. E. Witwer, J. J. Powell, John M. Redmond, Wm. King, George H. Boyson, A. H. Wolf, Theodore Stark, and Fred H. Shaver, directors.

A. H. Wolf and George H. Boyson, having disposed of their interests in 1903, at the annual election held January, 1904, C. L. Miller and George G. Grupe were elected in their places.

T. McCarthy, on account of his health, did not desire a re-election as president, and E. W. Virden, having accepted a position in Louisiana, caused a vacancy in the presidency and cashiership. At that meeting the following officers were elected: H. E. Witwer, president, J. J. Powell and Fred H. Shaver, vice-presidents; and John Burianek, Jr., cashier.

On January 9, 1906, at the annual meeting, Mr. Redmond being unable to serve as a director, did not desire re-election and in his place John Burianek, Jr., was chosen. On the death of J. J. Powell in 1908, Wm.

King was chosen one of the vice-presidents. The directors now are H. E.

Witwer, T. McCarthy, F. H. Shaver, G. G. Grupe, Wm. King, C. E. Tuttle, E. S. Seeley, John Burianek, Jr.

Originally this bank had 83 stockholders, the number now being 53. It has a surplus of $25,000, undivided profits of $10,000, and deposits of nearly $900,000.

Early in 1911 the bank will occupy its new building on the corner of First street and Third avenue west, one of the handsomest in the state.

The Cedar Rapids National Bank was incorporated February 28, 1887, and succeeded to the business of G. F. Van Vechten, banker. The original directors were A. T. Averill, Geo. B. Douglas, G. F. Van Vechten, Joseph S. Cook, C. Magnus, J. M. Ristine, and C. B. Soutter. Changes in the board of directors have occurred as follows:

In 1888 P. E. Hall succeeded J. M. Ristine. In 1891 Ralph Van Vechten succeeded C. Magnus. In 1896 Mr. Magnus was reelected to succeed C. B.

Soutter. In 1899 Ed. H. Smith was elected to fill the vacancy caused by the death of J. S. Cook. In 1906 P. E. Hall was succeeded by J. H.

Ingwersen. In 1906 C. Magnus retired from the board, and in January, 1907, J. M. Ristine was elected to fill the vacancy. In 1909 C. D. Van Vechten was elected to fill the vacancy caused by the death of G. F.

Van Vechten, and in 1910 Glenn M. Averill was elected to fill the vacancy caused by the death of his father, A. T. Averill.

The present personnel of the board is as follows: Ralph Van Vechten, Geo. B. Douglas, Ed. H. Smith, J. M. Ristine, J. H. Ingwersen, C. D.

Van Vechten, and Glenn M. Averill.

The original officers were A. T. Averill, president; G. F. Van Vechten, vice-president; Ralph Van Vechten, cashier. A. T. Averill served continuously as president until his death in 1910, and was succeeded in office by Ralph Van Vechten. G. F. Van Vechten was vice-president until the time of his death, which occurred in 1909, and he was succeeded in office by Geo. B. Douglas. In February, 1905, Ralph Van Vechten resigned his position as cashier, to a.s.sume the second vice-presidency of the Commercial National Bank of Chicago. At that time he was elected to the position of second vice-president of the Cedar Rapids National Bank, being succeeded as cashier by J. H. Ingwersen. In 1908 Mr.

Ingwersen resigned as cashier to accept the presidency of the Peoples Trust and Savings Bank of Clinton, Iowa, and Kent C. Ferman, who had been a.s.sistant cashier since 1904, was appointed cashier. In 1904 John Fletcher was appointed a.s.sistant cashier, and Miss Anna Smouse auditor.

In 1906 Mr. Fletcher resigned to accept the a.s.sistant cashiership of the Drovers Deposit National Bank of Chicago. In 1908 Louis Visha was appointed a.s.sistant cashier, and in 1909 Martin Newcomer was appointed as a.s.sistant cashier.

[Ill.u.s.tration: S. S. JOHNSON An Early Cedar Rapids Settler]

The present officers are therefore as follows: Ralph Van Vechten, president; Geo. B. Douglas, vice-president; Kent C. Ferman, cashier; Louis Visha, a.s.sistant cashier; Martin Newcomer, a.s.sistant cashier; and Miss Anna Smouse, auditor.

The bank has a capital of $100,000, a surplus of $100,000, undivided profits of over $100,000, and deposits of more than $3,500,000.

The Security Savings Bank was incorporated March 18, 1889, and opened for business April 26, 1889.

The original stockholders numbered 87, of whom 22 have since died.

The original directors were G. F. Van Vechten, C. J. Ives, J. R.

Amidon, Walter D. Douglas, Chas. H. Clark, Jno. E. Murray, W. W.

Higley, J. R. Morin, and W. F. Severa. Changes in the board of directors on account of death or disposition of stock have occurred as follows: In 1894 P. C. Frick succeeded J. R. Morin; in 1895 E. M. Scott succeeded W. F. Severa; in 1896 B. H. Witwer succeeded Chas. H. Clark, whose death occurred during that year; in 1899, on account of temporary removal from the city, W. D. Douglas resigned and was succeeded by C.

D. Van Vechten, but on the death of W. W. Higley, later in the year, Mr. Douglas was reelected to succeed him. In 1906 D. K. Harbert succeeded C. J. Ives, who died that year, and in January, 1910, Emma M.

Van Vechten was elected to succeed her husband, G. F. Van Vechten, whose death occurred the previous September.

President Van Vechten and Vice-President Ives served the bank continuously from its organization to the date of their respective deaths; Vice-President Amidon continuously since organization, and President Scott the same--first as cashier, then vice-president, and after Mr. Van Vechten's death, as president. On January 1, 1908, J. W.

Bowdish was engaged for one year to relieve Mr. Scott, during the building period, and served as cashier throughout that year. Cashier Frank Filip entered the employ of the bank in 1894, was promoted to a.s.sistant cashier in 1904, and made cashier in 1909.

The original capital stock was $50,000, which was later increased to $75,000, then to $100,000, and on March 24, 1908, to $150,000. The present surplus is $100,000. Its total deposits are now about $1,800,000, belonging to 5,000 depositors.

The bank first opened for business at 211 South Second street. In 1893 it erected on its own ground, 2660 feet, on the corner of Second avenue and Second street, a three-story brick bank building, containing the first exclusive safety deposit vaults in the city. In 1902 additional ground was purchased and in 1907 the three-story brick adjoining on the south was purchased and the bank removed to a temporary office in this building, while its old home was replaced by its present eight-story, steel frame, fire proof office building, where its banking apartments are modern and complete.

The Bohemian-American State Bank was organized under state charter and commenced business June 13, 1892, with a capital of $60,000, its officers being W. F. Severa, president; S. L. Dows, vice-president; J.

W. Bowdish, cashier; V. A. Jung, a.s.sistant cashier. Among its organizers were W. F. Severa, S. L. Dows, J. H. Douglas, F. Braun, Jos.

Woitishek, Jos. Renchin, E. E. Pinney, H. B. Soutter, T. C. Munger, C.

Butler Weeks, J. J. Powell, and Warren Harman. It had a successful career and paid dividends from its commencement. It was consolidated September 1, 1894, with the Bohemian-American Savings Bank, in order to avail itself of the more liberal charter given by the state to savings banks, the stockholders and depositors practically all remaining with the new organization.

The Iowa Savings Bank was organized under state charter and commenced business May 1, 1893, with a capital of $50,000. Its officers were James H. Douglas, president; W. F. Severa and H. B. Soutter, vice-presidents; J. W. Bowdish, cashier; and V. A. Jung, a.s.sistant cashier. The directors were J. H. Douglas, F. Braun, H. B. Soutter, Warren Harman, Jos. Woitishek, S. L. Dows, W. F. Severa, T. C. Munger, C. Butler Weeks.

On September 1, 1893, the articles of incorporation were changed, increasing the capital to $60,000, and changing the t.i.tle to Bohemian-American Savings Bank. At the same date the Bohemian-American State Bank, desirous of the benefits of the more liberal charter offered savings banks, arranged to consolidate its interest with the Bohemian-American Savings Bank, which consolidation took effect September 1, 1894.

The Bohemian-American Savings Bank enjoyed a prosperous growth, notwithstanding the effect of the panic of 1893, probably as severe a financial panic as at that time had ever been experienced. It paid regular semi-annual dividends and continued prosperous until its consolidation, March 28, 1898, with the Citizens National Bank and the American Trust and Savings Bank, two newly organized banks, the Citizens National Bank taking over the commercial department, and the American Trust and Savings Bank absorbing the savings department.

The Cedar Rapids Savings Bank was incorporated March 13, 1883, and opened for business May 15, 1883.

The original stockholders numbered 36, of whom eight have since died.

The original directors were Jno. T. Hamilton, Lawson Daniels, Chas. B.

Soutter, Robert Palmer, F. C. Hormel, Jas. L. Bever, Geo. W. Bever, A.

T. Averill, and F. J. Upton. Changes in the board of directors on account of death or disposition of stock have occurred as follows: In 1884 E. I. Foster succeeded F. J. Upton; in 1891 M. A. Higley succeeded Mr. Foster; in 1892, at the death of F. C. Hormel, J. M. Dinwiddie succeeded him; in 1897, J. M. Terry succeeded A. T. Averill; in 1900 Robert Sinclair succeeded M. A. Higley, Geo. Goodell succeeded Jas. L.

Bever, and E. R. Moore succeeded Geo. W. Bever. President John T.

Hamilton, Vice-President Chas. B. Soutter, and Cashier J. M. Dinwiddie have served continuously since the organization of the bank.

The original capital stock of the bank, paid in cash, was $50,000, which has been twice increased--the first time to $75,000, and then to $100,000. The present surplus of the bank is $65,000, and the deposits over $1,850,000.

The contract for the bank's six-story, fire proof building, the first six-story structure in the city, located at the corner of Third avenue and Third street, was let May 30, 1895, and the building was occupied in May, 1896. In 1909-10 an addition was erected, so that the building is now 90140 feet.