The Advancement of CHICAGO as a \ mancial Center up to the close f the XIX. Gentiirv The M e c ha s* Loan a [id Tras t C o m pa n \ n*v r f jfj. Library LIBRARY OF THE UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN 332.1 M5365a I .E.3. The Advancement of Chicago as a Financial Center Up to the Close of the Nineteenth Century THE MERCHANTS' LOAN AND TRUST COMPANY ADAMS AND CLARK STS CH ICAGO Entered according to Act of Congress in the office of the Librarian of Congress, at Washington, D.C. by The Merchants' Loan and Trust Company of Chicago, Illinois f 1 Introductory. ALTHOUGH the advancement of Chicago as a financial center has been very remarkable, most men living in Chicago and the West have become so used to rapid progress in so many ways, and stupendous affairs have become so commonplace, that every kind of advancement is taken as a matter of course, and our financial advancement has been comparatively lost sight of. Due consideration has not been given heretofore to the great strides made by that commercial machine which is the true index of stability in all the business of the community, and is also the "right hand" in the advancement of its business, The Financial Institution. It is sometimes necessary to remind men of a fact to make them realize it fully. It is our hope that this book will act in that capacity and will, in some degree, bring the reader to a realization of the city's present financial importance and its future possibilities. If a city and its institutions can attain so marked a prominence in little over half a century, what may not reasonably be ex- pected of them in the near future ? Along the Line of Prediction. THERE have been some seemingly extravagant predictions as to the future financial power of Chicago. But the basis of those predictions and the advancement so far made along the line of fulfillment is certainly food for thought. With the far-reaching power of the Bank of England, the numerous heavily-capital- ized banks of Great Britain, the Bank of France, the vast accumulation of capital in the countries of the old world, and the concentration of capital and financial opera- tions in New York City, it may seem Quix- otic to suggest that affairs are shaping themselves for the amassing in the near future of resource, capital, and financial control in the business center of the Mis- sissippi Valley. But if the predictions of those supposed to be competent to judge of such matters are of account, then the dynamic force in the conditions which here exist must sooner or later evolve a financial power that will be one of the greatest, if not the greatest, in the financial world. Every writer and thinker who has given the subject consideration is loud in the assertion that the Mississippi Valley is pos- sible of the highest state of development that it has the capability of sustaining a greater population than any similar area on the face of the earth, and that, because of its general latitude, within the temperate zone, a higher state of civilization will be attained here than any before known. A member of the Royal Commission of Great Britain and Ireland, in an address to the manufacturers of that country, set- ting forth the importance of having exhib- its at the World's Columbian Exhibition, speaks of Chicago and the West in these words: I wonder how many have a clear idea of the importance of Chicago as a great commercial cen ter. Half a century ago it was still outside the pale of civilization, but the rapid growth of the pop- ulation of the United States and its consequent march westward changed the relative conditions, until today the center of gravity of the population is abreast of Chicago. Almost all circumstances, natural as well as arti- ficial, have favored this rapid growth. As the con- tinuous waves of progress have swept across the continent they have steadily raised Chicago to the higher eminence and into the present position of importance. Chicago is sui generis : a city of the nineteenth century, made unique by the energy of her people, by the advantages of her geographical position, by the development of the Middle Western States, and above all, by the facilities of communication which enable her to stretch out her hands laden with true riches, the products of the soil. The grain-growing, cattle-raising and mining West pours its wealth into the city as the center, whence it is distributed throughout the world. And with the steady development of this great West, of which the resources are only now begin- ning to be utilized, the importance and wealth of Chicago must increase and increase rapidly. We can form but a very limited idea of the extent and future possibilities of the States lying west of the Mississippi, the development of which directly affects the trade of Chicago. It would seem as if the future destinies of the United States must be controlled from the West, where the population is growing with so much rapidity, where energy is unbounded, and where the wealth of the soil, as of the riches hidden beneath its surface, is inexhaustible. The unrivalled resources of the West, together with the unequaled enterprise of her citizens, are a sure prophecy of superior wealth. The West surpasses in agriculture, stock-raising, mining, and eventually will surpass in manufactur- ing. It is safely predicted that however many rival cities may in the future contest the trade and prosperity created by this Western development with Chicago, the metropolis of the Great Lake Region must continue to retain her pre-eminence. Great as Chicago is, the period of her true great- ness has yet to come. Standing on the balcony of the Woman's Building at the World's Fair, and contem- plating the vastness, the beauty, and the success of that immense undertaking, an Eastern man remarked that only Chicago could carry up to so great a success such 10 an undertaking, and that it was because Chicago belonged to the great West; that throughout all the Western country every- one feels a claim on the city; that it is his or her city. Therefore, when the Fair was projected, every man, woman, and child throughout that territory made it his or her business to see that it was a success. The entire Western country looks upon Chicago as its representative market-place, and this same spirit which pervades the people of the great West is spreading out beyond ; to the East, the South, the West Indies, Mexico, Central America, the Pacific Coast and to Europe and Asia. The business attracted to this as the great distributing center from those sections is already enormous, and is rapidly increasing. The market for many of their products is practically controlled here, which means that here must be performed a large part of their other commercial transactions. Moreover, the Hawaiian and Philippine 11 Islands and Alaska promise to be no small factors in commerce, and as the business with those territories must necessarily be carried on through the Pacific Coast cities, we in turn will get our relative share. The discovery of gold in Alaska brought an increased volume of business to the Pacific Coast States, and immediately the effect was felt here. The prediction that the Pacific Ocean will be the great commercial highway of the future is becoming familiar. The awakening of Japan, open trade relations with China that the near future is sure to develop, and the prospect of the early completion of an Isthmian Canal, all point to a nearer fulfillment of that prophecy than has generally been supposed. Present Conditions. CHICAGO controls the market of the food products of the world, and is therefore the natural distributing center for those products. Its immediate territory is an expanse of country fifteen hundred miles in breadth, almost every acre of which is of the highest productive quality. This territory, this Mississippi Valley alone, produces more bread stuffs than all the rest of the world combined. There are two States within this area either of which produces more corn than all the corn pro- duced outside of the United States. Here are located the greatest meat pack- ing establishments in the country and the greatest system of yards for the handling of live stock for shipment and for supply- ing the packing establishments. 13 Because of the immense trade in the products of this territory, it has become the objective point of more than half the rail- roads of the country, the aggregate length of which is over 80,000 miles. Being therefore the great railroad center, as a natural result, manufactories of all kinds, large and small, have become estab- lished, so that today the number of enter- prises in which we take the lead are beyond the belief of those not well informed on the subject. Because of its distributing facilities Chi- cago has also become a great wholesale center. The system of inner and outer belt- line railroads affords manufacturers and wholesalers in any part of the city or out- lying districts the closest competitive ship- ping rates over the thirty-seven roads that branch out in every direction. The situation of Chicago at the head of navigation on the Great Lakes makes it by nature the commercial port for this great region. The Indian knew of its advantages in this respect, even before the coming of the white man; and now that the partial devel- opment of the West has given it a thorough test, it still holds its prestige. The general recognition of it is compulsory. Last year the estimated tonnage received at this port was over 8,000,000. As the tide of settlement and develop- ment swept on, all the attendant trade and commercial enterprise came with it. One after another, in rapid succession, supremacy in different lines was attained ; and although at times when some great enterprise was located in some other of the cities of the valley, it was thought the advance had been checked, still it swept onward. The great advancements of the past were made in waves, and so accustomed are the people to take our progress as a matter of course that the present tremen- dous, steady onward march excites but little comment ; yet statistics show that it is greater than ever. One may form some idea of the magni- tude and the growth of Chicago's business by contemplating the following figures : The estimated total business of the city for the year 1900 was $1,963,000,000 an increase of 1 2 ^ per cent over the previous year, and the bank clearances for that year were $6,795,876,000 an increase of $183,563,000 over the previous year. These figures are significant, as the four great Atlantic cities, New York, Boston, Philadelphia and Baltimore all showed a falling off from the clearings of 1899, whereas Chicago, St. Louis, Pittsburg and San Francisco showed an increase. The more important receipts from the country in grain, live stock, and produce during this same year were : Corn .... Bushels, 134,664,000 Oats .... " 105,227,000 Wheat .... " 48,000,000 10 Cattle Head, 2,735,000 Sheep " 3,500,000 Horses " 120,000 Hogs " 8,715,000 Butter .... Pounds, 245,000,000 Cheese .... " 115,384,000 Lard .... " 60,665,000 Potatoes . . . Bushels, 10,290,000 The total value of food stuffs of all kinds received amounted to $570,000,000. Another important factor in the city's business is its lumber trade. The forests of the north found this the natural outlet, and soon it became the greatest lumber market in the world. Besides becoming the market for Northern pine it also became the market for Southern pine and for the Middle States hardwood, and the Mexican, Cuban and South Ameri- can fine woods and veneers. The receipts of lumber for the year 1900 were 1,672,- 000,000 feet, amounting to a business of about $45,000,000. 17 In return for these and other receipts we disbursed throughout the country and the world manufactured products to the amount of $786,000,000, and wholesaled goods to the amount of $741,000,000, some items of which are pertinent. These we quote from the annual statements of the daily press : Dry Goods $143,000,000 Groceries -. . . . . 99,000,000 Clothing ..... 35,000,000 Shoes 58,500,000 Books and Paper . . . 70,000,000 Tobacco and Cigars .- . 25,000,000 Hardware ....' 39,000,000 Iron and Steel Manufactures 125,000,000 Pig Iron . ... .- . . 12,000,000 Coal . . . ... ,. . ... x 5t 29,000,000 Drugs and Chemicals . . 1 5,000,000 Crockery and Glassware . 7,500,000 Hats and Caps . . . . 13,000,000 Millinery ...... 10,000,000 Oil . ."; 17,000,000 Dried Fruits ..... 4,500,000 Furs . .- . . . . . 3,000,000 18 Carriages, etc $ 5,500,000 Automobiles 5,000,000 Pianos and Musical Instrum'ts 14,000,000 Music 9,500,000 Paper Stock 5,500,000 Wooden and Willowware . 9,000,000 Wine and Spirits . . . 22,000,000 Jewelry, Diamonds, etc. . 32,000,000 Pig Lead and Copper . . 8,250,000 Electrical Supplies . . . 25,000,000 Paint and Varnish . . . 20,000,000 Cloaks and Suits . . . 8,000,000 Sporting Goods . . . 6,210,000 Hides 17,000,000 Wool 12,000,000 Leather and Leather Mfgs. 18,000,000 Agricultural Machinery . . 40,000,000 Stoves 27,000,000 Bread and Crackers . . . 26,000,000 Furniture 25,000,000 Brick, Stone, etc. . . . 6,000,000 Soaps and Perfumes . . . 16,000,000 Fish 13,000,000 Glass 9,000,000 Paper 12,000,000 Vinegar, Pickles, etc. . . 2,500,000 19 Chicago's supremacy in manufacturing and wholesaling covers many branches of industry. In the line of furniture, either household, office, or school, she leads the world. She is the largest manufacturer of clothing. In dry goods the house of Marshall Field & Company is the largest and finest in America and probably in the world. The Illinois Steel Company, the largest producer of rails in the world, does a manufacturing business of upwards of fifty- five millions a year, supplies a field cover- ing the whole of the United States and Canada, and is dealing extensively in Europe, Asia, Africa, and South America. The immense packing industries of Armour & Company, Nelson Morris & Company, Swift & Company, Cudahy Pack- ing Company, and others, claim the world as their market. So great has their foreign trade become that their brands are known in almost every part of the civilized world, 20 large consignments of their products going to supply the army rations of every country requiring great quantities of food supplies. The Elgin Watch Company, known as revolutionizing the watch industry of the world, is recognized as a Chicago institu- tion. Chicago is also the acknowledged birth- place and headquarters of The Pullman Company, a company owning and operat- ing the myriad of palace cars that con- tinually traverse the entire country. This company also builds cars for all countries. The establishment of the McCormick Harvesting Machine Company, in 1847, by Cyrus H. McCormick, for the purpose of manufacturing harvesting machinery, was the first recognition of Chicago as a manu- facturing center. Cyrus H. McCormick was the original inventor of the Reaper and Mower, and how valuable his invention was to Chicago, America, and the world is evidenced in the 21 fact that it revolutionized agricultural work everywhere, and won for him nearly a score of medals for labor-saving machinery. His name is known in every country where agriculture is pursued. The real estate market has not been idle. Notwithstanding the great depression of the past two years, there has been that steady onward move in real estate trans- actions in keeping with our commercial strides. The transfers for 1900 are esti- mated at $87,000,000. Building operations for this same year (1900) were greatly hampered by a turmoil in the labor field ; still, buildings have been erected to the extent, in value, of eighteen to twenty millions of dollars. It is esti- mated that there are building contracts to the extent of $127,000,000 being withheld pending a settlement of labor troubles. The Money Side of the Question. TH E immense interchange of com- modities going on through Chicago requires banking facilities on a cor- responding scale, and Chicago has been peculiarly fortunate in this respect. The capital and resources of the banks have steadily kept pace with the increasing needs, and all emergencies have been met in a way that justifies pride in the past and confidence in the future of Chicago as a banking center. A few years ago Eastern and European capital was behind the greater number of Western businesses. Gradually this has been supplemented by Western capital, earned at home. Western farm mortgages, held for so many years by Eastern capitalists, who were dependent on them for income, have been and are being paid off to such an extent that the situation is becoming un- comfortable to those so dependent. Formerly the banking transactions with foreign countries were done through East- ern banks, whereas now the transactions are carried on directly with the foreign banks, the principal banks here having correspondents in all the principal cities of the world. In 1897 money was piling up in Chicago banks to such an extent that it became an incumbrance. Interest on outside balances was cut to i ^ per cent, with the expecta- tion of diverting the money to New York, where 2 per cent was paid, but, notwith- standing that, deposits still increased. In the past the East has been frequently called upon to lend aid to the West, but we are at last strong enough to return the accommodation, and it is a significant fact that Chicago is now loaning large amounts to New York City and the Eastern states. Western capital, being based upon the products of the soil, is not subject to such fluctuations as attend the money markets of New York, London, or Paris, where stocks and bonds are the commodity. This was plainly demonstrated at the time of the declaration of war with Spain, scarcely a ripple being made here, whereas in New York, London, and Paris the money market was visibly affected. Every year has added and is adding resources to this city ; and to the observing it is apparent that Chicago has advanced so far in commercial and financial strength that she is no longer dependent, but is con- sidered one of the reliable factors in the financial world. As an asset it may be interesting to know that the value of the real and per- sonal property of the city of Chicago, according to the estimate placed upon it by the Board of Assessors, which is one- fifth its actual value, is approximately $1,750,000,000. 25 The Stock Exchange. THE trade in securities that heretofore had been done over the counters of the banks grew to such proportions that in 1882 a Stock Exchange was estab- lished. After occupying different quarters in proportion to its increasing business, it moved, in 1894, into permanent quarters in the building known as the Chicago Stock Exchange Building, where it occupies an exchange room equal, if not superior, to any other in the country. A comparison of the business at the open- ing, with that of the past year will show its growth. In 1883 57,500 shares of stock and $9,000,000 worth of bonds were traded in. In 1900 there were 1,418,000 shares of stock, and $8,363,000 in bonds traded in. The Exchange now ranks next to Boston, and third in the country, and is the recog- 26 nized Stock Exchange of the Mississippi Valley. The present officers, to whom much credit is due for its advancement, are, President, Alfred L. Baker; Vice-president, R. H. Donnelley ; Treasurer, John J. Mitchell, and Secretary, Joseph R. Wilkins. 27 The Board of Trade. IN 1848 Chicago had grown to a city of 20,000 inhabitants, and its trade in grain and live stock was growing so rapidly, and the trading up to that time was at- tended with so many inconveniences, that a Board of Trade was organized. Meetings were held in rooms at No. 8 Dearborn Street until 1854, when larger quarters were obtained over a store at the corner of Wells and South Water Streets. In 1856 it was moved twice, the second time to the corner of LaSalle and South Water Streets. In 1860 still larger quarters were necessary, and another change was made to the New- house Block in South Water Street, where a more pretentious hall was fitted up. By 1863 the Board of Trade had earned a high reputation, and was classed among the greatest trading bodies in the world. About this time a new charter was taken 28 out, empowering the company to acquire property. Under this charter the site at the corner of LaSalle and Washington Streets was purchased, on which was erected the Chamber of Commerce, which was completed in 1865. This was destroyed in the fire of 1871, but immediate steps were taken to rebuild it. Within a month from the time of its destruction the foundation stone for the new structure was laid, and within a year a still finer building was com- pleted, the opening taking place Oct. 8, 1872. For ten years this answered the needs of the " Board," but by this time it had again outgrown its quarters, so a site at the foot of LaSalle Street was obtained and the present building was erected. This was built on what was at that time supposed to be ample and substantial lines, but already there is prospect of still an- other expansion. As the transactions on the floor of the " Board " are entirely in the hands of its individual members, no estimate can be made; nor would it be representative, were it possible to obtain the actual total of these transactions, as the same consign- ment may be bought and sold several times. Therefore the city's total receipts of grain and live stock are considered more representative. As indicative of the growth and impor- tance of the Board of Trade, and illustrative of the point in question, the city's advance- ment, we quote the comparative receipts for a few years. The total receipts of grain for the year 1848 were 3,000,000 bushels, for 1865 54,950,000 bushels, for 1872 88,427,000 bushels, for 1885 156,400,000 bushels, and for 1900 372,514,000 bushels. The total receipts of live stock for the year 1872 were 4,575,000 head, for 1885 8,900,000 head, and for 1900 14,967,000 head, valued at $268,600,000. 30 The Merchants' Loan and Trust Company Capital and Surplus $3,750,000.00 Officers. Orson Smith, President E. D. Hulbert, Vice-President J. G. Orchard, Cashier F. N. Wilder, Assistant Cashier F. G. Nelson, Assistant Cashier Leon L. Loehr, Secretary Directors. Marshall Field Cyrus H. McCormick Albert Keep J. W. Doane Lambert Tree A. H. Burley E. T. Watkins Erskine M. Phelps Orson Smith Moses J. Wentworth Enos M. Barton E. D. Hulbert The Growth of Wealth. F I ^HE growth of wealth and the J^ increasing emergencies that come with it, and which have to be met, have developed a want which the Trust Company is peculiarly fitted to supply. It is of material advantage to the man of affairs to have his bank equal to every call he needs to make upon it, to advance his business and personal interests. It should care for his surplus funds, yet have them subject to call. If his credit is sufficiently established, his bank should be in position to furnish him with additional funds on almost as short notice. If he has goods to buy or sell in any part of the world, his bank should be able to make the transaction a simple one. And when needs of a more personal nature arise ; when it becomes necessary to entrust to hands other than his own the immediate personal affairs of his life, it is much better that his affairs should be in charge of a bank that is capable of assum- ing such trusts, than to be obliged to call on a friend or to place his matters in the hands of those unfamiliar with his affairs. The execution of a man's will after death, the safeguarding of his property for minors or for those inexperienced in business affairs, the handling of delicate and im- portant transactions that should be in safe and disinterested hands ; or, should misfor- tune overtake him and he desire that an honest division of his property be made among his creditors all these matters are more safely and more satisfactorily cared for by his bank, provided the bank is of a character to assume the duties. It is in these several capacities the "Trust Com- pany" is designed and prepared to act. It brings to the execution of trusts not only unquestioned responsibility, efficiency, and fidelity but freedom from the vicissi- 34 tudes and uncertainties of life, to which the personal trustee is always subject. The advantages of Trust Companies are so evident that it is becoming more and more common for people of means to turn over certain of their business affairs to them, that they may devote their time to more pressing or more congenial matters. The Merchants' Loan and Trust Com- pany is incorporated under the laws of the state of Illinois, transacts a general banking and trust business, and acts in all the capacities mentioned. The Merchants' Loan and Trust Building. TH E increasing demands of business in recent years necessitated larger and more convenient quarters. To meet these requirements and a gen- eral patronage, we selected a site in the heart of Chicago's business center, in close proximity to the retail houses, the Board of Trade, the Stock Exchange, the new Post-office and Custom House, and the large office buildings wherein is transacted the business of outlying factories and plants. The building is a twelve-story office structure erected for the bank by Mr. Marshall Field, and is as complete as modern architecture can make it. The banking room is thoroughly equip- ped with the most modern bank appoint- ments and with ample space to carry on 36 an extensive banking business with the utmost expedition and greatest conven- ience to customers. In the basement, and connected directly with the banking room by a special elevator, are safe deposit vaults furnishing absolute protection, being provided with all the safe- guards that the science of modern vault construction and electrical development affords. The vaults are equipped with every con- venience telephone, telegraph and mes- senger call, coupon and committee rooms, ladies parlors, etc. practically nothing is lacking that helps the transaction of busi- ness or furnishes personal comfort in trans- acting it. 37 Banking Department. THIS department is thoroughly equip- ped for handling accounts of every nature appropriate to banking busi- ness. The extensive facilities of this Com- pany enable it to meet the monetary needs of individuals, firms, corporations, and banks. Every accommodation is afforded cus- tomers that will contribute to the promo- tion of their business interests with ease and convenience. Loans are made for all legitimate business purposes. Interest is paid on accounts of a nature to justify it. Time and demand certificates of deposit having special rates of interest are issued. The Company's extensive connections enable it to effect collections, either in the city or throughout the country, with promptness. 38 The comprehensive character of this bank's business enables it to act as cor- respondent to out-of-town banks and bank- ers in such a manner as to meet every re- quirement of such patrons and to augment their business when possible. 39 Foreign Department. THIS department issues drafts and money orders, and makes cable transfers on all points throughout the world. It buys and sells bills of exchange on foreign countries. It issues commercial letters of credit, by which means business may be transacted in any foreign country with the same conven- ience as at home. Arrangements are made by which banks and bankers throughout the United States can make drafts direct on our correspond- ents abroad. Drafts for the purpose, and rates for which drafts are to be drawn, are furnished. Collections on foreign countries are received and forwarded, as are the returns from accounts received from foreign banks for. collection on any point in the United States. 40 Travelers visiting Great Britain and Europe can obtain through this department letters of credit in "pounds sterling.," and can make drafts on our London correspond- ents from time to time, as needs may require, obtaining funds in the currency of the coun- try in which they may be traveling. Travelers in the United States, South America, Mexico, West Indies, Canada, China, Japan, Hawaiian Islands, Cuba, Porto Rico, and Alaska (direct connec- tion with Dawson City and Atlin) will find our " dollar credits " of great conven- ience. This bank acts as agent for foreign banks in all the various capacities of a bank and trust company. Foreign coins and paper are bought and sold. 41 Bond Department. THE bond department of this bank carries a diversified line of high- grade investments, comprising gov- ernment, municipal, railroad, and corpora- tion bonds. Government bonds are bought and sold in accordance with market quotations, and a moderate supply is kept on hand. Prep- aration is made, however, to fill large orders on short notice. Other classes of bonds that are offered within the range of safe investment afford investors an opportunity to make a selection appropriate to the purpose. While this bank does not guarantee secu- rities of any kind, those offered are only such as the bank itself is willing to hold for its own investment. In repurchasing bonds the fairest treat- ment is assured. 42 Stocks and bonds listed on the various stock exchanges, and not dealt in by us, may be purchased through this bank. Out of town banks and bankers, whether correspondents of this bank or not, will find it an advantage to avail themselves of the opportunities that this department presents. Executors and administrators of estates receive special attention. Appraisement is made of stocks and bonds when desired. Women, and those unfamiliar with mak- ing investments, can entrust such matters to the care of this bank with safety and profit. Trust Department. /" I AHE Merchants' Loan and Trust ' Company is authorized by the laws of the State of Illinois to accept and execute all kinds of trusts. It has depos- ited security with the Auditor of Public Accounts of the State of Illinois for the faithful performance of its duties. It is required by law to make regular statements to the Auditor, and is subject to examina- tion by the Auditor and to the supervision of the courts. It gives to the administration of trust business the care, ability, and sound judg- ment not of one man alone, but of a number of experienced, prudent, and successful men. This company affords special facilities for the organization and reorganization of corporate enterprises; it holds property and evidences of title while sales and trans- 44 fers are being consummated ; it acts as registrar and transfer agent, and as trustee and agent for corporations in all matters pertaining to the issue and transfer of stocks and bonds and the payment of divi- dends and interest; it acts as receiver, assignee and custodian, and gives assistance in the foreclosure and refunding of mort- gage indebtednesses and in the conversion and distribution of assets of corporations, firms, and individuals going out of business. It acts as executor, administrator, trustee under wills or declarations of trust, guar- dian, conservator, or agent for the invest- ment, care, and management of estates and property. Wills and other instruments under which this company is to act in a fiduciary capac- ity are drawn, modified, or examined by the company's attorney free of charge. In these matters the advice of a lawyer who makes a specialty of such business is of great value. The company manages property for non- residents, for persons going abroad, and for those who, for any reason, wish to be relieved of the care of their property, tem- porarily or otherwise. It receives gifts in trust for persons and for charitable and educational institutions, and it accepts revocable and conditional transfers and conveyances for others. In short, it is prepared to administer any and all kinds of trusts. 46 Safe Deposit Department. THIS department affords the utmost security and convenience to corpora- tions, bankers, firms, and individuals desiring safe deposit accommodations. Valuables of all kinds, coupons, bonds, certificates of stock, deeds, mortgages, plate, jewelry, etc., are received for safekeeping, under the company's guarantee for security. Safes within the special section are of various sizes to accommodate the different requirements. We have also special vaults for the storage of trunks and packages containing valuable materials. Directors', committee, and private rooms are at the disposal of customers, and there is a special department for ladies. 47 Statement. Report of the Condition of The Merchants' Loan and Trust Company of Chicago Made to its Stockholders at the Close of Business December 31, 1900 RESOURCES Loans and Discounts .... $16,058,478.62 United States Bonds 28,480.00 Other Bonds and Stocks . . . 1,498,516.57 Due from Banks and Bankers . . 6,323,478.82 Cash and Checks for Clearing House, 4,985,022.06 $28,893,976.07 LIABILITIES Capital Stock $ 2,000,000.00 Surplus Fund i,coo,ooo.oo Undivided Profits ... . . . 803,669.00 Dividends Unpaid ..... 60,000.00 Deposits .... ... 25,030,307.07 $28,893,976.07 48 For comparison the following statement may be of interest : Report of the Condition of The Merchants' Loan and Trust Company of Chicago Made to its Stockholders at the Close of Business December 31, 1880 RESOURCES Loans and Discounts $4,856,198.28 United States Bor.ds ..... 809,200.00 Other Bonds and Stocks .... 445,000.00 Real Estate 32,913.68 Due from Banks and Bankers . . 175,131.98 Cash and Checks for Clearing House, 1,929,523.30 #8,247,967.24 LIABILITIES Capital Stock ....... #1,500,000.00 Surplus Fund .,..,., 100,000.00 Undivided Profits 730,181.59 Dividends Unpaid 51,374.00 Deposits 5,866,411.65 #8,247,967 24 49 In 1857 the capital of this bank was half a million dollars. From time to time, as the requirements demanded, this was increased until today it is two million, which, with the surplus, amounts to $3,750,- ooo.oo. The position the bank occupies in regard to deposits is somewhat unique. It receives no savings deposits, has no deposits of public funds, and but a small portion of its deposits are from country banks. Hence, the greater part of its deposit liability rep- resents active commercial and corporation accounts of city concerns. 50 Stockholders. Arnold, Katherine D., Trustee, Chicago. Adams, Mrs. Adele F., Chicago. Addoms, Mary B., New York City. Armour, George A., New York City. Armour, Allison V., New York City. Armour, Mrs. May E., Chicago. Allerton, Robert H., Chicago. Baker, Susan B., South Duxbury, Mass. Ballard, Lucy B., Pittsfield, Mass. Baldwin, Henry S., South Duxbury, Mass. Baldwin, John, New York City. Baldwin, Frederick H., New York City. Bareiss, Mrs. Hattie, Chicago. Barton, Enos M., Chicago. Batterson, J. G., Trustee, Hartford, Conn. Belden, Caroline B., Hartford, Conn. Blaine, Mrs. Anita McCormick, Chicago. Blair, Mary F., Chicago. Blair, Chauncey J. Chicago. Blair, Henry A., Chicago. 51 . OF ILL LIB. Blair, Watson F., Blackman, Walter, Blackman, Mrs. Clara M., Beach, Miss Helen, Beach, Mary B., Trustee, Beecher, Mrs. Mary, Bentley, Cyrus, Trustee, Bennett, Estate of W. W., Blodget, Harriet I., Boal, Chas. T., Borland, Harriet B., Bowen, Mrs. Roxana A Brewster, E. L. & Co., Bronson, Frederic, Brooks, Melissa M., Burley, A. H., Burley, Clarence A., Carter, Ernest, Chicago. Chicago. Chicago. New York City. Hartford, Conn. Chicago. Chicago. Rockford, 111. Chicago. Chicago. Chicago. Wentworth, New York City. Chicago. New York City. Chicago. Chicago. Chicago. New York City. Carter, Leslie, Trustee Estate Jas. Carter, Chicago. Clark, John Biddle, Brooklyn, N. Y. Clark, Lincoln E., Chicago. 52 Clarke, M. Annette F., Kirkwood, Mo. Clarke, Wm. B., Trustee for Sarah W. Stevens, Hartford, Conn. Cooley, Francis B., Hartford, Conn. Cook, Alexander Nichols, New York City. Collins, Harrie B., Chicago. Collins, Wm. R., Chicago. Cobb, S. B., Estate of Chicago. Cushman, Estate of Henry W., Greenfield, Mass. De Koven, Mrs. Annie L., Chicago. De Koven, Estate of John, Chicago. Debevoise, Anne W., New York City. Deere, C. H., Moline, 111. Deming, Frederick, Litchfield, Conn. Dodd, Anna B., and W. L. Clark, as Executrix and Executor of Elizabeth A. Blake, deceased, New York City. Doane, John W., Chicago. Drake, Helen V., Chicago. Duane Lodge No. n, I. O. O. F., Chicago. Farnam, Wm. W., Chas. H., and Henry W., trustees, New Haven, Conn. 53 Farnam, Mrs. Ann S., New Haven, Conn. Farnam, Carolina Wells, and Wm. W., Trustees under the will of George Bronson Farnam, New Haven, Conn. Farnam, Charles H., New Haven, Conn. Farnam, Henry Walcott, New Haven, Conn. Farnam, Henry, New Haven, Conn. Farnam, William Whitman, New Haven, Conn. Field, Marshall, Chicago. Field, Marshall, Jr., Chicago. Foster, Mrs. Nancy S., Chicago. Foote, John J., Belvidere, 111. Foote, Harriet, Belvidere, 111. Foote, John Crocker, Belvidere, 111. Foote, Helen G., Belvidere, 111. Greenough, Jane A. B., Westfield, Mass. Goodrich, Horace A., Juliet Goodrich, and Mary F. Magwire, Trustees, Chicago. Goodridge, Charlotte M., New York City. Goodwin, Francis, Hartford, Conn. Goodwin, James J., Hartford, Conn. Hardy, Elizabeth B., Boston, Mass. 54 Harmon, H. Louise, Auburn, N. Y. Harmon, Lilian, Chicago. Hawes, Kirk, Chicago. Hibbard, William G., Chicago. Holmes & Gay, Trustees, West Winsted, Conn. Holt, D. R., Estate of, Chicago. Holt, Ellen M., Chicago. Holt, Charles S., Chicago. Howe, George S., Hartford, Conn. Howe, Daniel R., Hartford, Conn. Hulbert, E. D., Chicago. Hunnewell, Hollis Horatio, Boston, Mass. Illinois Trust & Savings Bank, Trustee for Florence Sanger, Chicago. Illinois Trust & Savings Bank, Trustee for Clara Pullman, Chicago. Isham, Ralph N., Chicago. Johnson, Emily M., Ft. Smith, Ark. Johnson, Mary Beach, Andover, Mass. Keney, Henry, Estate of, Hartford, Conn. Kellogg, Anna S., Williamstown, Mass. Kellogg, Emma C., Chicago. 55 Kellogg, Sarah H., Chicago. Keep, Albert, Chicago. King, James C., Chicago. Knowles, Howard, Galesburg, 111. Laflin, George H., Chicago. Law, Robert H., Chicago. Lawson, Victor F., Administrator, Chicago. Latting, Mrs. Isabella W. C., Chicago. Leicht, Andrew E., Chicago. Lefens, Marie, Chicago. Mackin, John, Chicago. Madlener, Mrs. Elsa, Chicago. Mather, Roland, John B. Bunce, and D. Hillyer, Trustees for heirs of Ira Peck, Hartford, Conn. Mather, Roland, and J. R. Redfield, Trustees of Estate of E. G. Howe, Hartford, Conn. Mathews, Frank S., New York City. Macy, Estate of Sarah L., New York City. McArthur, Warren, Chicago. McCoon, Catherine Adelia, Extx., and James H. McCoon, Ex'r of Estate Cornelius McCoon, dec'd, New York City. 56 McCormick, Mrs. Nettie F., Chicago. McCormick, Cyrus H., Chicago. McCormick, Harold F., Chicago, McCormick, Nettie F., Eldridge M. Fowler and Cyrus H. McCormick, Jr., Trustees for Mary V. McCor- mick, Chicago. McCormick, Nettie F. and Cyrus H., Jr., Trustees for Stanley R. McCor- mick, Chicago. McCrea, Reinette M., Chicago. McWilliams, LaFayette, Chicago. McKindley, Effie Gertrude, Chicago. Merchants' Loan & Trust Company, Trustee for Frank G. Logan, Chicago. Michigan Trust Company, Trustee for Mary G. Learned, Grand Rapids, Mich. Munn, Mrs. C. L., Chicago. Munger, Estate of Albert A., Chicago. Nash, Mrs. Lydia J., Chicago. Newberry Library, The, Chicago. Newberry, Walter Cass, Guardian for Margaret A. Newberry, Chicago. 57 Newberry, Fannie E., Romeo, Mich. Otis, Lucius B., Chicago. Parkin, Minnie P., Romeo, Mich. Parsons, John C., John R. Redfield and Francis B. Cooley, Trustees under the will of Edward H. Perkins, Pearsons, Daniel K., Peck, Kate T., Peck, Cornelia C., Peck, Mrs. Harriet M., Perkins, Edward C., Perkins, Henry A., Perkins, Mabel H., Phelps, Erskine M., Porter, Julia F., Porter, James W., Porter, Edwards H., Porter, Ruth W., Porter, Henry D., Porter, Mary H., Porter, Henrietta, Portman, Emma C., Hartford, Conn. Chicago. Chicago. Hartford, Conn. Shortsville, N. Y. Hartford, Conn. Hartford, Conn. Hartford, Conn. Chicago. Chicago. Chicago. Chicago. Chicago. Chicago. Chicago. New York City. Chicago. 58 Pullman, Hattie Sanger, Chicago. Ray, Julia A., Chicago. Raymond, George L., Washington, D. C. Richards, Louise C., Chicago. Rogers, Susan C., Chicago. Rogers, Virginia B., and Daniel R. Kendall, surviving Trustees for the Estate of John L. Rogers, New York. Sanderson, Maria C., Bernardston, Mass. Sorchan, Charlotte B. W., Boston. Starr, Dr. M. Allen, New York. Stevens, Frank L., Chicago. Seipp, Mrs. Catharina, Chicago. Seipp, Mrs. Catharina, Guardian for Conrad Seipp, Chicago. Seipp, Alma, Chicago. Schmidt, Mrs. Emma, Chicago. Shaw, Theo. A., Jr., Chicago. Smith, Orson, Chicago. Smith, W. Treese, Chicago. Scudder, Mary, Chicago. Straus, Simon W., Chicago. 59 Towne, Bertha L., Hartford, Conn. Tree, Mrs. Anna J., Chicago. Tree, Mrs. Ethel Field, Chicago. Tree, Lambert, Chicago. Talman, Mrs. Alice Denison, Globeville, Colo. Turner, Mrs. Julia M., Philadelphia. Tyrrell, John, Chicago. Valentine, Eliza W., New York City. Van Meenen, Josephine E., Chicago. Ward, Mrs. Mary A., Chicago. Ware, Mrs. Elizabeth A., Chicago. Watkins, Mrs. Amanda A., Chicago. Watkins, E. T., Chicago. Webster, Wm. R., Brooklyn, N. Y. Wentworth, Moses J., Trustee, Chicago. Wentworth, Moses Jones, Chicago. Whitehouse, Mrs. Mary Armour. New York City. Winthrop, Edgerton L., J. Sergeant Cram and Bronson Winthrop, Guardians for Charlotte A. W. Cram, New York City. 60 Winthrop, Bronson, New York City. Winthrop, Edgerton L., Jr., New York City. Whitney, Sarah S., New Haven, Conn. Wood, Frances P., Hartford, Conn. Worthington, Mary, Administratrix, Cooperstown, N. Y. Yoe, Catharine A., Chicago. 51 A Bit of History This being the oldest bank in the city as well as the State, and consequently an important factor in the city's financial ad- vancement, it is permissible that we devote a part of the space to the bank's indi- vidual history. 65 Advertisement of 1857 The Merchants' Savings, Loan and Trust Company Having a capital of $500,0x30 (with the privilege of increasing the same to #2,000,000) fully paid in, this bank, according to the provisions of its Charter, is prepared to buy and sell exchange on all the principal cities of the United States and to discount satisfactory business paper of short date. The Executive Com- mittee will meet dailyat ten o'clock a. in., and persons applying for discounts will receive answers at one o'clock p. m. We receive money for accumulation, allowing compound interest at seven per cent per annum when the amount is depos- ited for a term of years ; we also receive and execute trusts by order of courts, from estates, corparations and individuals; and also collect notes, drafts and acceptances payable in this city, and remit for same at current rates of exchange at maturity, and will make collection upon other points upon favorable terms. Office corner La Salle and Water Streets. TRUSTEES. M. D. Ogden, W. A. Doggett, Jonathan Burr, George Steele, F. B. Cooley, Henry Farnam, John H. Foster, J. H. Dunham, W. L. Newberry, A. H. Burley, D. R. Holt, I. N. Arnold. J. H. Dunham, President. Jonathan Burr, Vice- President. D. R.Holt. Cashier and Secretary. 66 A Bit of History TH E Merchants' Loan and Trust Company Bank started business in Chicago in the year 1857, about the time when the city first began to attract attention. Its incorporators were Win. B. Odgen, F. B. Cooley, N. P. Wilder, Henry Farnam, Samuel P. Officer, John High, Jr., Erastus S. Williams, Henry W. Hinsdale, John W. Stanley, John P. Babcock, Charles Hitchcock, D. R. Holt and R. W. Officer. The presidents and their terms of office succeeded in the following order : Mr. J. H. Dunham, from the time of the incorporation of the bank, in 1857, until the spring of 1862 ; Henry Farnam, from the spring of 1862 to 1863 ; Solomon A. Smith, from 1863 until the time of his death, in 1879. John Tyrrell acted as president after the death of Solomon A. Smith until his regular election as presi- 67 dent, in 1881, and then served in that office until 1884. J. W. Doane was presi- dent from 1884 to 1898, and Orson Smith, the present incumbent, has served since 1898. The vice-presidents and their terms of office succeeded in the following order: John High, Jr., from June, 1857, until the fall of the same year (Walter New- berry acted as vice-president to fill out Mr. High's unexpired term from the fall of 1857 over into the year 1858); Jonathan Burr from 1858 until the spring of 1860 ; H. H. Magie from the spring of 1860 until the spring of 1862 ; Solomon A. Smith from the spring of 1862 to the spring of 1863 ; W. E. Doggett from 1863 until 1877 ; John Tyrrell from 1877 until 1881 ; Byron L. Smith from 1881 until 1885 ; P. L. Yoe from 1885 until 1892 ; Orson Smith from 1892 until 1898; E. D. Hulbert, the present vice-president, since 1898. The men who have acted in the capacity 68 WILLIAM B. OGDEN of cashier and their respective terms of office are as follows: A. J. Hammond, from the opening of the bank until November, 1857 ; M. B. Bartlett from November, 1857, until June, 1858; D. R. Holt from June, 1858, until 1862 ; Lyman J. Gage from 1862 until 1868; Charles Henrotin from 1868 until 1878; H. E. Lowe from 1878 until 1884; F. C. Osborne from 1884 until 1895 ; J. G. Orchard, the present cashier, since 1895. The location of the Merchants' Loan and Trust Company Bank was changed from time to time to conform to the busi- ness center of the city. Its first location was at the corner of South Water and La Salle streets, under the Board of Trade rooms. It continued in business there until the spring of 1860, when it removed into the Dickey Building, at the southwest corner of Lake and Dearborn streets, where it remained until the fire of October 9, 70 WALTER L. NEWBERRY 71 1871. Immediately after the fire tempo- rary quarters were occupied in Solomon A. Smith's house, on Wabash avenue, below Harrison street. Here the bank remained until the completion of the Manierre Build- ing, at the corner of Madison and Dearborn streets, into which it removed in the spring of 1872. Requiring larger quarters, it moved, in 1881, to the Portland Block, at the corner of Washington and Dearborn streets, where it remained until 1900, when it removed, as stated elsewhere, into its present location. From the start the policy of the bank has been based on the more substantial prin- ciples, and by adhering strictly to those lines for nearly half a century, it has steadily ad- vanced and has successfully coped with al- most every calamity known to banking ex- perience, although hundreds of banks have been swept out of existence. Incidents in the bank's history have been told many times, but the account that 72 HENRY FARNAM 73 appeared in the Chicago daily papers, and which we herewith reprint, will give the reader, who is interested, some idea of the vicissitudes through which The Merchants' Loan and Trust Company once labored. J. H. DUNHAM 75 Chicago's Oldest Bank Sketch of the Merchants' Loan and Trust Company from the City's Early Days to the Present Time The Trying Period of Wildcat Currency How its Officers Saved its Treasure in the Great Fire A Training School for Bankers NO Chicago institution can be more justly called a representative one, or is more closely identified with the city's financial prosperity, than the Merchants' Loan and Trust Company. It is the oldest banking institution in the state of Illinois. Organized in 1857, at a time when the monetary circulation of the Northwest consisted mainly of " wildcat " currency of various degrees of worthless- ness, and experiencing at least twice in subsequent years disasters which proved financial maelstroms to hundreds of less fortunate organizations, it has, during its forty-three years of busy existence, success- 76 D. R. HOLT 77 fully coped with almost every variety of calamity known in the annals of banking. The bank's doors were thrown open for business in May, 1857, on the first floor of the old Board of Trade building, at the northwest corner of Water and La Salle streets. The second story was occupied by the Board of Trade. The state charter, which had been procured through the efforts of John H. Dunham the previous autumn, fixed the capital stock at $500,- ooo. This amount has since been in- creased by degrees to $2,000,000, which is the limit allowed in the original charter. Mr. Dunham was the first president, and A. J. Hammond came out from Connecti cut to officiate as cashier. Chicago was not altogether as charming a place to live in the winter of 1857 as it is now, and Mr. Hammond soon returned to his native heath. Mr. Holt, who had been cashier since June, 1858, resigned in 1862 to again enter 78 CHARLES HITCHCOCK Tit into active mercantile life. He was suc- ceeded by Lyman J. Gage, who had re- signed a position as night watchman in a sash and door factory a few years before to take a bookkeeper's desk in the bank. Solomon A. Smith was about this time elected president, discharging the duties of that office until his death, in 1879. Charles Henrotin, who followed Mr. Gage, was cashier through two calamitous periods the great fire of 1871 and the panic two years later. The thirteen original trustees were Isaac N. Arnold, W. E. Doggett, D. R. Holt, Wm. B. Ogden, John H. Foster, Walter L. New- berry, Henry Farnam, Jonathan Burr, George Steele, J. H. Dunham, F. B. Cooley, A. H. Burley and John High names which now must awaken a host of recollections for the Chicago resident of ante-bellum days. A coherent account of the old " wildcat " or " stumptail " currency troubles, in their relation to the history of this bank from H. H. MAGIE 1857 to 1862, would fill a volume. It can, however, at least be said that the Mer- chants' Loan and Trust Company was from the start a pronounced and unyielding advocate of the expulsion of the irrespon- sible system of banking which ultimately flooded the country with so much irre- deemable currency. And, inasmuch as the trustees possessed the courage to shape the practical policy and methods of the bank in accordance with their convictions, they made enemies, naturally. Their path was at times anything but one of roses. It is said that more than once bitter and deter- mined efforts were made to " down " the new bank, but it stood its ground bravely, and came through this trying period of its youth with flying colors. As is well known, the unscrupulous " wild- cat" banker, in securing his charter, some- times located his " bank " in some obscure and inaccessible place, where there would be little likelihood of his currency being 82 JONATHAN BURR 83 presented for redemption. In a case of this nature the Merchants' Loan and Trust Company would collect a large amount of the currency and dispatch a representative to find the bank if he could. The cur- rency would then be presented for redemp- tion in gold. If the alleged bank was not able to come to time, complaint was made in due form to the State auditor, who promptly closed the bank and sold the securities to satisfy, as far as possible, the indebtedness. Two clerks of the Mer- chants' Loan and Trust Bank were once sent on an errand of this kind to the southern part of the State to find a town not on the map. They found it, after considerable search, but before they could accomplish their mission the enraged na- tives, proud of having a real " bank " in their village and alarmed at the possibility of losing it, pitched upon the young men tooth and nail and drove them from the town. The disgruntled clerks were obliged 84 ISAAC N. ARNOLD to return to Chicago with the original cur- rency. During these days of " wildcat " banking the Merchants' Loan and Trust Company determined that, in self-defense, it would start a bank of its own and issue a circula- tion. So it put up good substantial bonds with the auditor of public accounts at Spring- field, and started the Reapers' Bank of Fair- field, Wayne county, Illinois. The money was issued and paid out to a very consid- erable extent by the bank. A. H. Burley was made its president and did then and there sign its bank notes. It was desired by the regular banks to know how far these " wildcat " banks were justified in paying out subsidiary coin in the redemption of their notes, which called for payment in " coin ;" but none was willing to commit itself to be used to decide the question except the Mer- chants' Loan and Trust Company, which owned the Reapers' Bank. So James SOLOMON A. SMITH 87 M. Adsit, a private banker in Chicago, employed Ambrose Burnham as his mes- senger, and gave him a quantity of notes of the Reapers' Bank to present for redemp- tion at the bank of Fairfield. In order to redeem the notes when pre- sented, the president of the Reapers' Bank, Mr. Burley, went at the same time with a quantity of subsidiary coin to Fairfield. He and Mr. Burnham went together. They took the Illinois Central road to Centralia, and from there traveled by wagon to Fair- field, which consumed a good part of one day. On arriving at Fairfield they hunted up the nominal cashier of the Reapers' Bank. Having no office, the bank, was there- upon established in a room in thehotel. Mr. Burnham produced his notes and said to the cashier, " Here are some notes of the Reapers' Bank which I wish to have redeemed, according to the terms of the notes, in coin." The cashier said, " Very well." Mr. Burnham presented a note, it E. K. ROGERS may have been a ten or twenty-dollar note, and the cashier turned to Mr. Burley, the president of the bank, who immediately had him count out dimes and quarter-dol- lars in sufficient amount to redeem the note. Mr". Burnham refused to take the money, and said, " You refuse to redeem these notes in anything but subsidiary coin?" The cashier said, " Yes, we refuse to pay anything else under the cir- cumstances." Mr. Burnham and the presi- dent of the bank then took their wagon and returned to Chicago, whereupon Mr. Adsit, who had sent Mr. Burnham to Fairfield as his messenger to get the notes redeemed, protested the notes ; but before any suit could be settled in the matter the whole system of Illinois banks collapsed. The notes of the Reapers' Bank were redeemed according to their terms at face value in Springfield by the auditor of public accounts. Of course, the bank was discon- tinued, as others were. EDWIN BLACKMAN 91 An Incident of the Fire. From a recent article in the Banking Law Journal of New York : " It was a time that tried men's souls. The ruin and desolation seemed as com- plete as the fire fiend could make it, but there was too much American grit in the Chicago bankers to be even dismayed. They opened their banks with the smoke of the fire filling their eyes. A most characteristic evidence of the heroic, self-reliant spirit which animated them is found in the record of the proceedings of the first meeting of the Board of Directors of The Merchants' Loan & Trust Com- pany after the fire. It was the iyth of October, eight days after the calamity. There is no allusion whatever to the fire, but a resolution was passed which read : ' Resolved, That this concern open to general business this day.' It is safe to say that such a record of audacious coolness is unparalleled in the history of the commerce of tne world." THE experience of the bank at the time of the fire was remarkable. Monday morning at 2 o'clock, when the flames were eating away block after block of buildings but a short distance from DR. J II. FOSTER the bank, and advancing with fearful rapid- ity every moment, Mr. Henrotin and Mr. Smith opened the money vault and ex- tracted all its contents, consisting of about $1,000,000 in bonds and greenbacks of large denominations and about $3,000,000 in securities, notes, etc. A clerk who ran by at the moment was pressed into service, and the treasure was piled on the counter and equally divided in weight into three bundles. Then the three men, each with over a million of money in his arms, went out into the panic-stricken crowd that thronged the streets, and made for Michi- gan Avenue. Men crazed by whiskey, and thieves and roughs ready for any opportu- nity to pillage, swarmed everywhere, but the treasure-bearers had taken the precaution to put on slouch hats and to throw old coats over their burdens, so they were unmolested. The crowd, in one way their danger, was in another their safeguard. They ran down Michigan Avenue to Terrace Row, where 94 JOHN HIGH, JR. 95 P. L. Yoe, one of the directors, lived. Here the treasure was all dumped on the floor. At 10 o'clock in the morning it was taken to the residence of John Borland on Indiana Avenue, and from there it was taken to the house of Mr. Smith at Har- mon Court and Wabash Avenue, where an improvised bank was made of the basement dining room. Monday afternoon, when the ruins of the bank were visited, it was discovered that most of the books were destroyed. A heavy marble slab, forming the top of the vault, had broken under the enormous weight of debris and had exposed everything to the flames. What made the loss particularly exaspera- ting was the fact that a large proportion of the bank's customers had also lost their books. What to do was a problem. Whether to attempt a settlement with depositors without recourse to legal proceedings which, if begun, would never terminate, was freely discussed. Mr. Henrotin was young and 96 CYRUS H. McCORMICK enthusiastic and confident that a reconstruc- tion could be effected on the basis of mutual agreement. The trustees finally agreed to attempt this plan. So, as the depositors appeared, one after another, the case was explained, the depos- itors were thrown upon their honor, and an adjustment was amicably and satisfactorily agreed upon. Over one thousand accounts were thus reopened without a note of dis- satisfaction. This peculiar method of bank- ing, perhaps without a parallel, was rendered possible only by the general high character of the bank's customers. So prosaic and commonplace is the routine of banking, or- dinarily, that an incident of this kind seems almost dramatic. Without books the bank proceeded to transact business, paying checks and receiv- ing deposits as though nothing had hap- pened ; and three weeks after the night of the fire the cashier presented the surprised and gratified stockholders with a new bal- 98 GEORGE STEELE ance sheet, with every account satisfactorily reopened and actually showing the bank to be in better financial condition than on the day before the fire. The earnings of the three weeks had been greater than the total loss sustained. 100 GEORGE ARMOUR 101 Biographical. IN looking over the names of the thirteen original trustees of the bank, those familiar with Chicago at that period (1857) will recollect that these, with a few others, not on the board but found in the list of stockholders, constituted Chicago, in a large measure, so far as its business and financial interests were concerned. The original board of trustees is headed by the name of Isaac N. Arnold, friend and biographer, at a later date, of Abra- ham Lincoln, and then easily the leader of the Chicago Bar. It was he who introduced a resolution in Congress to so amend the Constitution as to abolish slavery in the United States, the first step of that nature taken by Congress. He it was, also, who was chosen to pro- nounce the eulogy on the death of Stephen A. Douglas. P. V. KELLOGG 103 Among other names on that board is that of William B. Ogden, the first mayor of Chicago, a man of national reputation as a financier and the leader of great under- takings, one of the organizers of the old Galena and Chicago Union Railroad Com- pany, and subseqently president of the greater system known as the Chicago and North-Western Railway. Mr. Ogden was also an owner of vast real properties in Chicago and throughout the West. Then there was Dr. John H. Foster, one of the ablest, most successful, most conservative, and wealthiest citizens of this city, whose real estate investments were among the largest and wisest. Walter L. Newberry was one of the most public spirited and able, as well as one of the most successful builders and founders of Chicago, and was also one of the organ- izers of the Galena and Chicago Union Railroad, the first line to enter the city, and one of its presidents. He is at present 104 CHARLES P. KELLOGG 105 known to the world by the bequest of half his great fortune in establishing the New- berry Library of Chicago. Another director was Henry Farnam, the contractor for the building of the Chicago and Rock Island Railroad and one of its presidents, a man of the highest character and ability as well as of large fortune. Jonathan Burr was one of Chicago's most progressive business men and one of its greatest philanthropists, bequeathing as he did his handsome fortune largely to public charities. George Steele was one of the leading business men of that time and President of the Board of Trade. John H. Dunham was one of the fore- most merchants of the city and was prom- inent at the time because of the initiative he took in the city's improvements. F. B. Cooley was a great merchant and was at the head of the foremost dry goods 106 GEORGE M. PULLMAN 107 house of that day. known as Cooley. Far- well & Co. Augustus H. Burley. a prominent mer- chant of early Chicago and a man having substantial interests in the city, still remains a director of the bank. John High was a member of the firm of Magie &: High, a house dating back to 1835 ami one of the most successful organized in Chicago at that date. D. R. Hok was an early Indian trader at Mackinac and. afterward a lumber merchant of the most extensive operations. \V. E. Doggett was one of Chicago's suc- cessful shoe merchants and a representa- tive citizen. These were the men who constituted the ficst board of trustees of the Merchant's Loan and Trust Company Bank. They brought to the management of the bank the same caution, conservatism, and high sense of honor that they exercised in the conduct of their private affairs. PETEK I. TOE The drift which they gave to the bank and to the management of its business it has always sought to maintain, as being always in the path of wisdom and safety. Since its organization there have been many men associated with the bank, either as directors or as stockholders, who have been distinguished in the financial and com- mercial business circles of Chicago ; such as Cyrus H. McCormick, the man of whom William H. Seward said, "His invention moves the line of civilization thirty miles west every year;" George M. Pullman, the man who increased the commercial possi- bilities of the country by comfort and facility of travel; P. L. Yoe, one of Chicago's pioneers, and for over half a century a prominent business man ; Solomon A. Smith, a man who conducted the affairs of the bank through the critical times of the re- bellion with credit to himself, the bank, and the Western country ; John DeKoven, an- other pioneer of Chicago, who devoted a no FRANK C. OSBORN 111 lifetime to the upbuilding of the banking interests of Chicago. 112 JOHN DE KOVEN 113 To know something of the personal side of the men interested in the development of a bank so long and prominently identified with the city's financial interests, is to know somewhat of the forces back of the advancement that is going on. 114 UNIVERSITY OF ILLINOIS-URBANA 332.1M5365A C001 THE ADVANCEMENT OF CHICAGO AS A FINANCIA 30112025290948