EARLY DAY BANKING—PIONEER FINANCIERS—THE OLDEST BANK—PRIVATE, STATE, AND NATIONAL BANKS—ATCHISON COUNTY BANKERS AND THE DEVELOPMENT OF BANKING INSTITUTIONS.

Banking was a precarious business during the Territorial days in Kansas. There were no banks, as we know them, until January 29, 1857, when the Territorial legislature passed an act providing that every company or association of persons formed for banking purposes within the Territory, and without an act of legislature authorizing the same, should be deemed unlawful. Upon the passage of this act, the first bank authorized to do business under it was The Kansas Valley Bank, of Leavenworth, with an authorized capital stock of $800,000.00, with five branches, at Atchison, LeCompton, Doniphan, Ft. Scott and Shawnee. The authorized capital stock of each one of the branches was $300,000.00, and under the terms of the act, each branch was independent of the Leavenworth institution. The great Government Overland Transportation Company of Majors Smoot-Russell & Company was the big financial power behind this organization. The Leavenworth bank was never formed, and the Atchison branch was the first to start out under this act of the legislature, being authorized to begin business February 19, 1857, with securities amounting to $100,000. Dr. John H. Stringfellow, Joseph Plean and Samuel Dickson were authorized to open subscription books. The board of directors included Samuel C. Pomeroy, who was president: W. H. Russell, L. R. Smoot, W. B. Waddell, Franklin G. Adams, Samuel Dickson and W. E. Gaylord. Shortly after the bank began business there were rumors emanating from the rival towns of Sumner and Doniphan that the Atchison institution was about to suspend, and for the purpose of allaying any suspicion on the part of the public, created by these rumors, the directors published a statement of its condition, showing that the assets were $36,638.00, with liabilities of $20,118.00. In July or August, 1857, L. S. Boling, of LeCompton, was appointed to examine and report on the financial condition of the Atchison branch of the Kansas Valley Bank, and this is the first record in Kansas of a proceeding of this kind.

Samuel C. Pomeroy resigned as president of the bank in 1858, and was succeeded by William H. Russell, of the contracting firm of Majors-Smoot-Russell & Company. G. H. Fairchild was made vice-president, and R. L. Pease, cashier.

In 1861, this bank, then called the Kansas Valley Bank, had its name changed by act of the legislature, to the Bank of the State of Kansas, and it was conducted under that name until 1866, when the stockholders wound up its affairs.

The legitimate successor of the Bank of the State of Kansas was Hetherington’s Exchange Bank, which was founded in 1859 by William Hetherington.

The Exchange National Bank, of Atchison, Kan., is the oldest banking institution in the city of Atchison, having been established in 1859, while Kansas was a Territory. The bank was then named the Hetherington Exchange Bank. That bank became the successor of the Bank of the State of Kansas, which was organized in 1857. The founder of the Hetherington Exchange Bank was William Hetherington, and, except for one year during the Civil war, it has been in successful operation since it was established. It passed through the period of its existence during Territorial days, and the depressing financial conditions as a result of the war, and business reversals incident to the reconstruction period, and its management was at all times conducted upon the theory of its motto adopted by William Hetherington in an early day that “Safety First” in all of its business transactions was the secret of success.

The bank’s first business home was in the Otis & Glick building, opposite the Byram Hotel. In 1869 it was moved to the Hetherington building, at the northwest corner of Fourth and Commercial streets. Later on, and in 1885, the bank was moved to the southwest corner of Sixth and Commercial streets, into the building erected by its president, William Hetherington, where it has since been located.

In 1876, William Hetherington admitted into the firm, as a partner, Webster W. Hetherington, his eldest son, and in 1881, Clifford S. Hetherington, his youngest son, became associated with him. In the year 1882 the Hetherington Exchange Bank was incorporated under the laws of Congress, as a National bank, under the name of The Exchange National Bank of Atchison, with a paid-up capital of $100,000, and surplus of $20,000, and at once took high rank as one of the strongest and most conservative banks in northeastern Kansas, and has ever since maintained that reputation.

The Exchange National Bank was organized with William Hetherington as president, August Byram, vice-president, Webster W. Hetherington, cashier, and C. S. Hetherington, assistant cashier. In 1890, upon the death of its president, William Hetherington, Webster W. Hetherington was elected president, B. P. Waggener, vice-president, and C. S. Hetherington, cashier. In 1892, upon the death of its then president, Webster W. Hetherington, B. P. Waggener was elected president, A. J. Harwi, vice-president, W. P. Waggener, vice-president, C. S. Hetherington, cashier, C. W. Ferguson, assistant cashier, and Webster Wirt Hetherington, teller. In October, 1906, C. S. Hetherington, the cashier, died, and C. W. Ferguson was elected cashier, and Webster Wirt Hetherington, assistant cashier, and Edgar Mattocks, teller. In April 1907, the capital stock of the bank was increased to $200,000.00 with a surplus of $50,000, and ex-Governor W. J. Bailey was elected vice-president and managing officer of the bank, which position he has since held. Upon the death of A. J. Harwi, his son, Frank E. Harwi, was elected director, and succeeded his father, A. J. Harwi, as vice-president, which position he now holds.

In 1892 the bank adopted a by-law, which prohibited any officer or director of the bank from borrowing any money from it, or becoming an endorser or surety on any obligation or note to the bank, since which time no officer or director of the bank has been permitted to borrow any of its funds on deposit. The wisdom of this by-law adopted in 1892 has repeatedly been approved by the comptroller of the currency. The management of the Exchange National Bank has adopted and adhered to this policy, because it believes that a bank officer or director should not be permitted, under any circumstances or in any emergency, to use any of its deposits in any of his own personal speculations or ventures.

In February, 1914, Webster Wirt Hetherington was appointed cashier, and Edgar Mattocks was elected assistant cashier, and George L. Wolfe, teller.

While the bank is known far and wide throughout the State of Kansas for its conservatism, yet it makes an effort to accommodate all business institutions in the city of Atchison entitled to assistance and credit. It aims to be a distinctive Atchison institution.

Luther C. Challiss appeared as a banker in the city directory of 1859 and 1861, operating his bank at the corner of Second and Commercial streets, but not much is known of this institution.

First National Bank was organized on the first day of October, 1866, by David Auld, with the following as the first board of directors: David Auld, Henry Kuhn, H. H. Moulton, George Scarborough, C. G. Foster, D. C. Newcomb, and J. M. Linley. David Auld was elected president, George Scarborough, vice-president, and W. R. Stebbins as cashier. For thirty-eight years this bank was under the careful and conservative management of David Auld, who died in October, 1904, and was succeeded by his son, David Auld, Jr. The bank began business in July, 1867, and since that time has been one of the strongest financial institutions in the West. It has always had the benefit of the services of experienced men in the banking business, and has followed a conservative policy during the whole of its existence. In 1910 the controlling interest in the First National Bank was purchased by the Commercial State Bank, which was organized in Atchison in 1906 by Sheffield Ingalls and O. A. Simmons. In the merger that took place the Commercial State Bank was absorbed by the First National Bank, and has continued under the latter name to maintain its high standard of conservatism, and with the introduction of new blood and new methods, it embarked upon a policy of service which has redounded to the lasting benefit of the community. The present officials of this institution are as follows: Edward Perdue, president; J. H. Barry, chairman of the board; O. A. Simmons, first vice-president and manager; J. M. Schott, second vice-president; Charles Linley, cashier; George H. Edwards, assistant cashier; F. J. Ledoux, assistant cashier.

The directors represent varied business interests of this city and county, and are as follows: Edward Perdue, J. H. Barry, O. A. Simmons, Charles Linley, J. M. Schott, C. C. McCarthy, August Manglesdorf, Leo Nusbaum, Sheffield Ingalls, A. E. Mize, M. Noll and W. T. Hutson.

The Atchison Savings Bank claims the distinction of being “The Oldest State Bank in Kansas,” having enjoyed a continuous corporate existence of over forty-six years.

R. A. Park was its organizer and first cashier, and in June, 1869, it opened its doors for business in a brick one-story building at the northwest corner of Fifth and Commercial streets. At that time most of the business was centered close to the river, and this was considered quite an “up town” location, but time has vindicated the judgment of its early director in anticipating the westward growth of the town. With the expectation of building thereon the bank early acquired title to the lot at the southwest corner of Fifth and Commercial streets, but subsequently disposed of it to the late Ex-Governor John A. Martin, who built the Champion building thereon, and the bank moved to its present quarters, which it had acquired, and still owns, at the southeast corner of Fifth and Commercial.

William C. Smith (father of Henry T. Smith) was the first president but the late Judge A. G. Otis soon thereafter succeeded him and remained president until 1891.

Thomas Murphy (father of John Murphy and one of the builders of the present Cain Mill Company mill), W. W. Guthrie, Julius Kuhn, C. J. Drury, Col. Wm. Osborn, J. W. Parker, and other men prominent in the business and social life of that period were among its early stockholders and directors, while for seventeen years the late T. C. Platt served as teller, and by his affability and faculty of remembering people, made many friends for the institution. A baseball bat, kept under the counter, was his weapon for defending the funds in his care. Courtney Challiss, George H. Lawton, “Vode” Kathrens, Lowenholt, O. Orlopp and Will H. Bryning and others also served varying terms as early employees and will be remembered for their distinctive personalities. An apothecary’s scale for weighing gold dust was part of the early equipment, but one trial was sufficient to prove the presence of too much dust and too little gold in the commodity offered. For almost twenty years the bank ran with but few restrictions from the State, the law simply requiring it to file an annual statement of its capital, surplus, etc., with list of stockholders and officers, and publish a statement of its financial condition as of some one day in the year. Needless to say the day selected was usually one on which the deposits, loans and resources would make a satisfactory showing, but about 1890 the legislature enacted a banking law, which has since been several times perfected by amendments, which brought this and all other State banks under its provisions, and the supervision of a State bank commissioner, with cast iron restrictions as to the relative amounts of loans, cash reserves, etc., and although some of the requirements seemed unduly severe to those accustomed to the former unrestrained exercise of their own individual judgment, few would now deny that it was wise and much needed legislation.

Following the retirement from the bank in 1891 of Judge Otis, Col. William Osborn became president, serving until his death, when R. A. Park succeeded to the office and served until his death in 1902. C. J. Drury being elected his successor and giving the institution his services for about a year, seconded by J. T. Hersey as vice-president, but both these gentlemen then retired upon the acquisition of a majority of the stock by Messrs. T. M. Walker, J. C. Fox and F. M. Baker. Of later years the growth of the bank has been marked, the capital and surplus having repeatedly been enlarged, and deposits and loans having shown a corresponding increase. The late Theodore Bartholow added his ripe experience as a successful banker to the board of directors, while F. G. Crowell, Joseph W. Allen, William Carlisle, with Messrs. Walker, Baker and Fox and others as stockholders and directors gave the institution a State-wide prominence.

R. A. Park, the second, who resigned as vice-president in 1911 to engage in business elsewhere, entered the bank in 1881; became cashier in 1892; elected vice-president in 1910, being succeeded as cashier by F. M. Woodford, who entered the bank’s employ in 1900 as bookkeeper.

C. W. Ferguson, formerly cashier of the Exchange National Bank, has recently been elected a vice-president of the Savings Bank, and the present officers and directors are as follows: T. M. Walker, president; Joseph W. Allen, vice-president; C. W. Ferguson, vice-president; F. M. Woodford, cashier; W. T. Fox, assistant cashier.

The German-American State Bank of Atchison was chartered May 15, 1912, and began doing business June 21, 1912. Its original board of directors was composed of Louis W. Voigt, Henry Klostermeier, William Klostermeier, F. A. Manglesdorf, L. A. Libel, G. T. Bolman, and F. A. Manglesdorf. Three months later the charter was amended and Charles Haase and W. A. Dilgert were added to the board of directors. This bank was organized with a capital stock of $50,000, and a surplus account of $10,000. At the first meeting of the board of directors, the following officers were elected: Louis W. Voigt, president; Henry Klostermeier, vice-president; William Klostermeier, vice-president; F. A. Manglesdorf, cashier.

At the time the membership of the board was increased, Guy Elwell was elected assistant cashier. This bank occupies handsome quarters at the southeast corner of Eighth and Commercial streets, and has shown a remarkable growth since its organization. The only change in the board of directors that has been made since its organization was the substitution of E. F. Manglesdorf for his brother, A. F. Manglesdorf. At the close of the first business day of the bank it had deposits aggregating $25,000, and at the end of one year the deposits had increased to $248,000, and at the end of the second year it was $323,000, and at the end of the third year it was $425,000, and in 1915 it boasted of total deposits amounting to $525,000, with a surplus and undivided account of $21,000. This bank has had an able set of officers, and its directors are among the most influential and substantial citizens of the community. It started in by making an aggressive campaign for business, and it accomplished what it went after. The institution is conducted along broad and conservative lines, and renders not only good service to its many patrons, but to the community as well.

German Savings Bank.—This institution was organized in 1873, with the following officers: George Storch, president; Robert Forbriger, vice-president; John Belz, cashier.

The capital stock of the bank was $10,000 and its deposits were about $100,000. It conducted a general banking business, together with a regular savings department in connection therewith. This bank was located at 406 Commercial street, and wound up its affairs in 1886, when it was merged with the United States National Bank and the Dime Savings Bank, both of which failed.

The Atchison National Bank.—This bank was organized April 1, 1873, by John M. Price as president; M. Barratt as cashier. G. D. Harrison succeeded Mr. Price as president, in which capacity he served until 1878, at which time he was succeeded by C. J. Drury, with R. H. Ballentine as vice-president. When this bank commenced business it had a capital of $100,000, but in 1877 it was reduced to $50,000. It was located for many years at 503 Commercial street, afterwards moving to what is now the Simpson building, in the corner occupied by the Barth Clothing Company, where it failed in 19—.

The Atchison State Bank.—This bank was organized prior to 1891, and went into voluntary liquidation March 24, 1898, at which time John M. Cain was president and cashier, and John H. Murray was secretary. It was located on West Main street, near the corner of Thirteenth street.

The Commercial State bank was chartered September 8, 1906, and began business October 31 of the same year, and subsequently merged with the First National Bank March 24, 1910.

The Union Trust Company was chartered February 28, 1907, and was organized by B. P. Waggener, with a paid-up capital stock of $100,000. March 24, 1909, his charter was amended and it became the Exchange State Bank of Atchison, the officers of which are: F. E. Harwi, president, and Edward Iverson, cashier. This bank has a paid-up capital of $50,000, with surplus and undivided profits of $34,776.91, with average deposits of $350,000. It is one of the strong State banking institutions of Kansas, and is doing a prosperous business.

Atchison county has a number of strong, flourishing banks, located at Effingham, Muscotah, Potter, Huron, Lancaster and Cummings.

The Farmers and Merchants State Bank, at Effingham, was organized in 1905, with a capital of $12,000 by A. J. Smith, U. B. Sharpless, Fred Sutter, R. M. Thomas and J. W. Davis. Since its organization there have been a few changes among the officers and the board of directors, and in 1915 the officers were: Fred Sutter, president; L. T. Hawk, vice-president; E. J. Kelley, cashier; D. R. Gerety, assistant cashier. The present board of directors is as follows: Fred Sutter, L. T. Hawk, Alex. McKay, U. B. Sharpless, E. J. Kelley.

The capital stock and surplus in 1915 exceeds $15,000, and the bank’s average deposits are about $120,000. In 1910 a handsome and commodious brick building was erected at the corner of Main and Howard streets for its new home, and it was fitted with attractive new fixtures and a burglar-proof vault of modern structures, at a cost of $4,000. This institution is purely a local concern, financed by local capital; all of the stockholders reside in Effingham and vicinity, and comprise leading merchants and farmers of the Effingham district.

The State Bank of Effingham was organized in 1889, and occupies its own quarters in a substantial and commodious brick building on the Main street of Effingham, which was erected in 1897. In 1912 handsome new fixtures and a burglar-proof vault were purchased at large cost. The first president of this bank was Wesley Cummings, and the first cashier was Gilbert Campbell, with Harvey Sharp as assistant cashier and bookkeeper. Mr. Cummings continued as president until his death in 1899, and was succeeded by L. A. Murphy, who in turn was succeeded by T. J. Bohannon, who served until his death, August 29, 1915. A. M. Ellsworth became cashier in 1892, and was succeeded by W. M. Walker, who served in that capacity until 1905, when he is turn was succeeded by Clarence L. Cummings, the present cashier of this substantial and growing institution. The president officers of the bank are as follows: R. G. Bohannon, president; A. E. Mayhew, vice-president; C. L. Cummings, cashier; Carl B. Searls, bookkeeper. The directors are: H. A. McLenon, A. E. Mayhew, R. G. Bohannon and C. L. Cummings. The capital stock is $20,000, with surplus of $13,500 and deposits average $100,000. This institution is one of the most flourishing banks in the county, and its officers and directors are substantial business men and farmers, who are not only highly regarded in Effingham and vicinity, but throughout all of northeastern Kansas.

The State Bank of Lancaster was organized March, 1896, by W. W. Stepp, Mark S. Cloyes, C. L. Cummings, T. J. Bohannon, and Dr. A. L. Charles. T. J. Bohannon was elected its first president, and C. L. Cummings its first cashier. It had a capital stock of $5,000, which subsequently was increased to $10,000, and in 1915 it had a surplus of $5,000, with deposits aggregating $80,000. The present directors of this bank are as follows (1915): M. J. Hines, C. E. Smith, A. J. Smith, J. F. Shell and M. E. Smith, and its present officers are: M. J. Hines, president; C. E. Smith, vice-president; A. J. Smith, cashier, and C. G. Stickler, assistant cashier.

The State Bank of Cummings was organized by H. J. Barber and E. W. Kaufman in 1908, with a capital stock of $10,000. E. W. Kaufman was elected president; B. F. Cline, vice-president, and H. J. Barber, cashier. The capital stock in 1915 was $10,000, with a surplus of $5,000 and deposits aggregating $60,000. A neat and substantial brick building was erected for banking quarters and equipped with handsome fixtures and burglar-proof vault, at a cost of $3,500. The officers of the bank in 1916 were as follows: President, John Ferris; cashier, H. J. Barber, and the directors were John Ferris, H. J. Barber, C. A. Lewis, William Hegarty and F. W. Kaufman. The bank is in a thrifty condition, and has shown a steady increase in growth from the date of its organization.

The Farmers’ State Bank of Potter, Kan., was organized in 1905 by B. C. Daum, C. K. Hawley, P. C. Grenier, Arthur Davis, James Grapengieszer, Fred Potter, John Niemann, C. L. Cline, J. H. Glancy, who subsequently became directors of this enterprising institution. The capital stock was fixed at $12,000 and the first president of the bank was B. C. Daum, and the first cashier was C. K. Hawley. There are thirty-two stockholders in this institution, who are practically all farmers, residing in the immediate neighborhood of Potter. In 1916 the officers were as follows: President, P. C. Grenier; cashier, A. H. Manglesdorf; vice-president, C. E. Hudson, and the capital stock was $12,000, with a surplus of $5,500 and deposits aggregating $80,000.

It is unusual to find two substantial banking institutions in a town the size of Potter, as it is supposed that one bank in such a community would meet all the requirements of its citizens.

The Potter State Bank preceded the organization of the Farmers’ State Bank five years. It was organized in 1900 by O. A. Simmons, L. M. Jewell and Fred Ode, with a capital stock of $5,000. O. A. Simmons remained the active cashier and manager of the bank for two years, being succeeded by L. M. Jewell in 1902, who served until 1906. Mr. Jewell was succeeded by H. A. Ode. A new brick building was erected for this very enterprising financial institution in 1909, and equipped with new modern fixtures and a fine burglar-proof vault. The capital stock of this bank in 1916 was $10,000, with a surplus of $10,000 and deposits aggregating $125,000. The officers for that year were as follows: President, L. M. Jewell; vice-president, Fred Ode; cashier, H. A. Ode, and in addition to the officers, the following prominent farmers of Walnut and Mount Pleasant townships are directors: C. N. Faulcomer, C. W. Carson, E. H. Blodgett and Adam Ehart. There are over seventeen stockholders, all of whom are prosperous and well to do farmers, living in the vicinity of Potter. This bank has grown rapidly, both in prestige and strength since its organization, and its average net annual profits since its organization have been about $2,000.

The Muscotah State Bank was organized by George Storch in 1870, as a private bank, who remained in charge until about 1890, when Mr. Storch sold his interest to Harvey and Calvert. This firm conducted the bank as a private institution until about January 1, 1902, when it was organized into a State bank, with A. B. Harvey, president, and J. H. Calvert, cashier. Mr. Harvey remained president until about 1910, and in that year C. C. Hart became its cashier. The officers of this institution in 1916 were as follows: A. D. Wilcox, president; C. C. Hart, vice-president; R. A. Allison, cashier. The directors are: A. D. Wilcox, C. C. Hart, A. H. Calvert, M. E. Bevens, R. A. Allison and Thomas Ryan. The capital stock is $10,000.00, with a surplus of $10,000.00, and deposits aggregating $100,000.00. This institution is the oldest bank outside of the city of Atchison, and remains today one of the most substantial financial institutions in this part of the State.

The Huron State Bank was organized in 1891, with a capital stock of $10,000. The first directors were Edward Perdue, John Swartz, John Drohan, John English, David Rouse, David Rouse, Jr., and T. B. Marshall. Its first officers were Edward Perdue, president; John Swartz, vice-president, and W. C. McLain, cashier. This is one of the substantial banks of the county, and showed by one of its last statements a capital stock of $10,000, with surplus fund of $5,000.00 and deposits aggregating $80,000.00. Its officers in 1916 are as follows: Edward Perdue, president; David Rouse, Jr., vice-president, C. E. Smith, cashier, and Cloyd Smith, assistant cashier. In addition to the officers, T. B. Smith, Jr., is the fifth director.

Mr. Perdue, who is the president of this bank, is one of the leading citizens of Atchison county, and in addition to being president of the Huron bank, is also president of the First National Bank of Atchison.

C. E. Smith, the cashier, is also one of the well known and most conservative bankers of the State, and the officers and directors of this institution have reason to be proud of the splendid growth and standing of their institution.

The Farmers State Bank of Muscotah was organized and opened for business February 21, 1910, with a capital stock of $10,000. It now has a surplus and undivided account of approximately $5,000, and its deposits average $70,000. The first directors were L. Cortelyou, A. T. Cortelyou, L. Cortelyou, Jr., and H. M. Turner, who came from Moberly, Mo. W. M. Walker, of Atchison, was one of the organizers of this institution, but he sold his interest a few weeks after organization and was succeeded by William Buckles on the board of directors. L. Cortelyou was elected president, and H. M. Turner, cashier, and they have continued as the active officers of the bank. The present board of directors consists of L. Cortelyou, William Buckles, M. C. Vansell, John Sullivan, J. W. A. Miller and H. M. Turner. As this history is written it is said that there has been a consolidation of the two Muscotah banks, under the name of the Farmers State Bank. A charter has been granted and the new institution will have a capital of $15,000. L. Cortelyou is to be the president, H. M. Turner, cashier, and Ralph Allison, assistant cashier. The bank will continue to occupy the present quarters of the Farmers State Bank, and the merger, when effected, will give Muscotah one of the best banks in the county.

The Commerce Trust Company of Atchison, with a paid-up capital stock of $100,000, received its charter from the State February 11, 1916. The first meeting of the board of directors was held in the office of the Commerce Investment Company on the evening of February 19, 1916, at which time the following officers were elected: President, Sheffield Ingalls; vice-presidents, Henry Diegel, A. J. Schoenecker, M. J. Horan; treasurer, Ellsworth Ingalls; secretary, Frank H. Manglesdorf; trust officer, H. A. Schoenecker; general counsel, J. M. Challiss. The following named citizens were the first directors of the company: H. A. Schoenecker, Henry Diegel, J. C. Killarney, O. A. Simmons, A. J. Schoenecker, Ellsworth Ingalls, T. E. Snowden, Clive Hastings, M. J. Horan, F. H. Manglesdorf, H. E. Muchnic and Sheffield Ingalls. The company is a development of the Commerce Investment Company, established in 1910, and does a general trust business, as provided by the laws of Kansas. It began business March 2, 1916.