CHAPTER XIV -- BANKS AND BANKING (CONT'D)

SHELBY COUNTY STATE BANK.

This bank was organized as a state bank on December 1, 1880, by B. L. Harding, Henry Stivers and W. W. Wick, of Clark county, Iowa, and W. D. Hazen, Alden K. Riley, James McConnell, Merrills Barton and John Coenen, of Harlan, under the name of the Shelby County Bank, with a paid-up capital of $50,000. Its first officers were B. L. Harding, president; John Coenen, vice-president and W. D. Hazen, cashier. In 1881 Mr. Hazen became president and G. W. Frost, cashier. In 1883, M. K. Campbell became cashier. H. B. Kees was chosen vice-president in 1883 and has continued as one of the vice-presidents until the present time, a period of thirty-one years. In 1887 W. W. Wheeler succeeded Mr. Hazen as president. The fine three-story brick building now occupied by the bank was erected in 1892 under the supervision of a committee composed of W. W. Wheeler and E. M. Hertert. In 1898 the name of the bank was changed to the Shelby County State Bank, in conformity with the law. E. W. Davis became president of the institution in 1899 and served until his death, in 1903, whereupon M. K. Campbell succeeded to the presidency. Mr. Campbell had also served as president immediately preceding the presidency of Mr. Davis. F. F. Wunder began his connection with the bank in September, 1899, became assistant cashier October 1, 1903, and has been associated with the bank continuously to date, having been chosen to the position of cashier in 1906, which position he now retains. In August, 1905, G. H. Messenger and George B. Frazier became president and vice-president, respectively. In 1906 the Shelby County State Bank and the First National Bank were consolidated under the name of the Shelby County State Bank, the capital at that time being increased to $100,000, with the following staff of officers: L. F. Potter, president; H. B. Kees, T. N. Franklin, W. H. Freeman, vice-presidents; F. F. Wunder, cashier; M. I. Westergaard, assistant cashier. This consolidation brought back to the Shelby County State Bank T. N. Franklin, who had begun his connection with this bank in 1890, and who had been with it until 1899, when he became the cashier of the First National Bank, then organized by L. F. Potter, W. H. Freeman and others.

In 1907 W. E. Cooper, pioneer school teacher of Shelby county and for two terms clerk of the district court, was chosen to take charge of the farm loan department of the bank. In May, 1911, H. P. Dowling succeeded to the control of the bank and became president. The Shelby County State Bank, in point of assets, is the largest bank in the county, with total assets of $900,000. In 1913 the deposits of this bank had reached a total of $780,144.81.

THE FARMS AND MERCHANTS SAVINGS BANK OF HARLAN.

This bank was organized May 10, 1904, under the name of the Security Bank of Harlan. Its officers under the first organization were E. C. Clapp, the veteran business man and banker of Shelby, president; A. C. Clapp, his son, vice-president, and R. D. Prouty, cashier. E. C. Clapp organized the bank first as a private venture for the purpose of testing out the field for an incorporated institution later, since the town already, at that time, had three banks. An incorporated institution accordingly was established September 1, 1905, under the name of the Farmer's and Merchants' Savings Bank, with a capital of $50,000. The original stockholders were E. C. Clapp, A. C. Clapp, N. W. Macy, Edmund Lockwood, E. M. Hertert, R. D. Prouty and William Hayes. The original officers were E. C. Clapp, president; E. M. Hertert, A. C. Clapp, vice-presidents; R. D. Prouty, cashier. The foregoing officers, with Mr. Lockwood, formed the board of directors. In 1913 the bank's deposits had reached a total of $515,000.

The first home of this bank was in a brick building abutting upon the alley on the east side of the square. The present new building, which is one of the handsome buildings of Harlan, was completed and the occupancy of it begun in February, 1912. The old brick building was moved. This was probably the first time that a brick building was moved bodily in Harlan. For the purpose of securing a satisfactory model for his Harlan building, E. C. Clapp visited Battle Creek and Kalamazoo, Michigan, to inspect model buildings there. The front of the new building is of solid marble and the rear walls of pressed brick. The interior banking room reaches through the entire elevation of the building, two stories in height. The building complete cost somewhat more than $20,000.

Upon the death of E. C. Clapp, A. C. Clapp became president, E. M. Hertert continued as vice-president, and R. D. Prouty, cashier. Gottlieb Walter was made assistant cashier, and A. W. Dales and Hans Broderson were added to the board of directors. Carl Hansen is employed as bookkeeper.

THE HARLAN NATIONAL BANK.

On April 1, 1913, the Harlan Bank, which was established in 1876 by C. J. and D. M. Wyland and later owned and developed by George Walters, was reorganized as the Harlan National Bank. The officers of this bank are J. E. Davis, president; Dr. James Bisgard, vice-president; Harry E. Lewis, cashier; D. L. Shaw, assistant cashier.

This is the only national bank in Shelby county. Under the provisions of the new banking and currency bill of the United States, enacted into law December 22, 1913, this bank is a member of the federal reserve system of regional banks, to which system every national bank of the United States belongs.

THE BANK OF SHELBY.

The Bank of Shelby was organized in the fall of 1880 as a private bank by Caughran & Davis. It has had a continuous existence to date. Caughran & Davis sold the bank to J. W. Davis & Company, of Avoca, after they had conducted it for a time. In 1887 J. W. Davis & Company disposed of the bank to E. C. Clapp, who had come to Shelby in the seventies, where he had engaged in the general merchandise business for a number of years, and had also established the Citizens’ Bank, a private bank which he consolidated with the Bank of Shelby upon his purchase of the latter institution. Mr. Clapp, assisted by his sons, M. E. Clapp and A. C. Clapp, conducted the bank for many years, and the institution is now managed and owned by his son, M. E. Clapp. From 1895 to 1897 the bank was owned by M. C. Furst, of Adair. M. E. Clapp came into the management of this institution in 1902 and is the present owner thereof. G H. Rink, now a resident of Fergus Falls, Minnesota, was cashier of the Shelby Bank from 1887 to 1910, a period of twenty-three years' faithful service. The bank building was destroyed by fire in September, 1910, following which a splendid new building was erected of cream-colored pressed brick. The inner walls are wainscotted with marble and finished in mahogany, with a beautiful beamed ceiling. The building has tiled floors and is supplied with double vaults, in one of which is a series of safety deposit boxes for the use of customers.

The Bank of Shelby is now in process of being incorporated as a state savings bank under the name of Shelby County Savings Bank, with the following officers: M. E. Clapp, president; Arthur Pryor, vice-president; Tewes Rohlfs, cashier. The persons above named, together with J. B. Reams and F. C Eggers will constitute the board of directors.

THE FARMERS' SAVINGS BANK OF SHELBY.

This bank dates is organization from August, 1909. Much of the work of soliciting sales of stock was done by Burton Laird, who subsequently became its cashier, and who has recently sold his holdings to R. M. Pomeroy. The bank is owned by twenty-three business men and farmers of large means. The bank has a capital of $15,000, not including undivided surplus set aside. The original officers of the bank were T. G. Turner, president; W. F. Bohlander, vice-president; Burton Laird, cashier; J. W. Cook, assistant cashier. Mr. Turner is also president of the City National Bank of Council Bluffs, Iowa. The first board of directors were T. G. Turner, W. F. Bohlander, Burton Laird, John Paul, F. M. Kern and Herman Wunder. The assets of the bank are in the neighborhood of $100,000.

R. M. Pomeroy has lately purchased a controlling interest in the Farmer's Savings Bank, the present officers of which are: T. J. Turner, president; William Bohlander, vice-president; R. M. Pomeroy, cashier; Ted Cook, assistant cashier. Frank Kern, Fred Rohrs, John Paul, William Bohlander, Herman Wunder and R. M. Pomeroy constitute the present board of directors of this bank.

BANK OF DEFIANCE.

One of the earliest banks of Shelby county was the Citizens' Bank, established in 1882 at Defiance by Mr. Humphrey. A year later the ownership of the bank passed to Smith & Roseberry, who owned it until 1889. In 1887 Messrs. Riley and J. W. Riley established the Bank of Defiance. In 1889 they bought the Citizens' Bank, which they consolidated with their own. In 1892 B. F. Freeman started the Security Bank and in 1893 he bought the Bank of Defiance, which he consolidated with his own under the name of the Security Bank of Defiance, since which time Defiance has had but one bank. In 1900 B. F. Freeman sold the Security Bank to L. F. Potter and W. H. Freeman, who had re-adopted the old name, The Bank of Defiance, for the new institution. The present officers are: L. F. Potter, president; Mrs. W. H. Freeman, vice-president; R. G. Penniston, cashier.

Much of the success of this bank is due to the able and faithful service of R. G. Penniston, present cashier, a young man who grew up in the neighborhood of Defiance and who has a wide acquaintance and a fine reputation for honesty and good judgment. He has been ably assisted by his brother, E. L. Penniston.

THE BANK OF IRWIN.

The Bank of Irwin was established in 1884 by Henry Umphrey as a private bank. After conducting it for several years, he sold it to G. W. Humphrey and F. A. Bennett, of Manning, who continued it until 1891, when they sold it to G. E. McMullen and J. T. Jack, since which time Mr. McMullen has had charge of the bank over a total period of twenty-three years. In 1903 he bought the interest of Mr. Jack and has been sole owner of the bank for the last eleven years. In 1907 Mr. McMullen erected a substantial and nicely finished building in which to carry on his business. Mr. McMullen, of this bank, and T. N. Franklin, of the Shelby County State Bank, are undoubtedly the two bankers who have been longest in continuous banking experience in Shelby county. In point of continuous service for the same bank, Mr. McMullen is first.

THE FARMERS SAVINGS BANK OF IRWIN.

This bank was organized and opened for business in the fall of 1911. Its primary organizer was J. L. Reynolds. A large number of enterprising and well-to-do farmers have associated themselves to conduct this bank. The bank was organized with a paid-up capital of $15,000. Its first officers were Jasper Groat, president; T. G. Turner, vice-president; J. L. Reynolds, cashier. These officers, together with E. E. Shannon and Phillip Armentrout, formed the first board of directors.

THE GERMAN SAVINGS BANK OF EARLING.

The first bank of Earling was established in 1890 by J. F. Huntoon and known at that time as the Bank of Earling. This bank was incorporated in 1892 under the name of the German Savings Bank of Earling. The original stockholders were P. J. Korth, J. F. Huntoon, J. H. Kuhl, J. C. Heese, August Schnuettgen, Fred Scheel and Wenzel Hahn. The first officers were J. F. Huntoon, president; J. H. Kuhl, vice-resident; P. J. Korth, cashier. The present officers of the bank are P. J. Korth, president; J. C. Heese, vice-president; N. V. Kuhl, cashier. Mr. Kuhl has the bank in charge. He is a son of J. H. Kuhl, one of the original stockholders, a well-known pioneer of Shelby county, and former county treasurer.

STATE BANK OF SHELBY.

The State Bank of Shelby was organized in 1893, by the following persons: Dr. N. Jasper Jones, Peter Egan, Jr., J. W. Davis, J. W. Cooper, N. Hodgson and Henry Nieman. The capital stock of the bank was $25,000.

KIRKMAN SAVINGS BANK.

When Frank DeKoltz ceased to operate his private bank at Kirkman, the Kirkman Savings Bank was organized under state banking laws, December 16, 1912, with a paid-up capital of $10,000, and with the following officers: H. P. Dowling, president; W. E. Cooper, vice-president; H. O. Loutzenhiser, cashier; and with a board of directors of the foregoing officers, together with F. F. Wunder, M. Dowling and Thomas N. Franklin. The bank is in charge of Mr. Loutzenhiser, who has a wide and favorable acquaintance in Kirkman and vicinity, which has had much to do with the successful building up of this new bank.

THE ELK HORN BANK.

The first bank in this enterprising town was established in December, 1902, by John Peterson and S. C. Pedersen as a private bank, and continued as such under their ownership and management until 1913, when Hans Carstensen became a member of the firm. This bank is conducted in a good brick building, has gross assets of more than $200,000 and has been of great service to the local community in which it is established. In 1903 many of its depositors lost all of the crops by a severe hail storm which came at harvest time. In 1907 the panic came, as well as the building of the Atlantic Northern & Southern Railroad, which took large sums of money from the depositors, who were in a commendable way determined to have a railroad.

FARMERS' BANK OF ELK HORN.

The most recently organized bank in Shelby county is the Farmers Bank of Elk Horn, which was established during the autumn of 1913 and opened for business in the latter part of October of that year. The officers of the bank are Nels P. Hoegh, president; Chris Christensen, vice-president; William Hoegh, cashier; Lilly Madsen, assistant cashier; Knud Hansen, Thor Madsen, J. P. Carlsen, J. P. Johnson, G. Gjodesen and Nels P. Hoegh, directors. The authorized capital of the bank is $10,000. It occupies a very fair brick building especially erected for its use.

THE PANAMA SAVINGS BANK.

This bank, under its present management, began March 1, 1897, after purchase of the private bank and fixtures then belonging to George Walters, who subsequently became proprietor of the Harlan Bank. The new bank was run as a private institution until August 1, 1906, when the Panama Savings Bank was organized, with a capital of $20,000. The first officers were, under this organization, D L. Sullivan, president; Henry Arkfeldt, vice-president; Eugene Sullivan, cashier, which officers yet continue. The original stockholders were D. L. Sullivan, N. J. Roundy, E. H. Smith, Martin Schechinger, Thomas Keane, M. E. Sullivan, John Sullivan, Henry Arkfeldt and Eugene Sullivan.

This bank at present has gross assets of more than $175,000. It is conducted in a brick building, which was erected by George Walters. This bank, on September 22, 1911, had the pleasure of a visit from a bank burglar, who up to that time when not busy made his home in Omaha. About midnight he attempted to break into the bank, but news of his intended visit had been conveyed to the bank's managers, who remained at the bank to await his coming. When he began operations he was welcomed by the discharge of a firearm in the hands of John Sullivan. The ball from the weapon struck the burglar in the arm. He was subsequently arrested, convicted and sentenced to Anamosa for a period of five years.

STATE BANK OF PORTSMOUTH.

One of the earliest banks of Shelby county was established at Portsmouth, Iowa, in 1884 by Dallas F. Paul, one of the pioneer settlers of Cass township and at one time county auditor. This bank he conducted until his death. L. C. Lewis, as his executor, sold the bank to R. F. Scroggin, who conducted it as a private bank until 1892, at which date it was organized into a state bank under the name of the Portsmouth State Bank, with a capital of $25,000. The original stockholders were R. F. Scroggin, Sims & Houghton, I. J. Copeland, James Lawrence, Peter Korth, Nickolaus Wehr, Nich Greiner, Peter Herkenrath and Peter Gubbels. The first officers were Peter Korth, president; Peter Herkenrath, vice-president; R. F. Scroggin, cashier. The gross assets of the bank are more than $150,000.

THE TENANT SAVINGS BANK.

The Tennant Savings Bank was organized February 27, 1905, when its articles were executed by J. V. Davis, H. A. Escher, George X. Cook, W. H. McLaughlin, L. Buman, S. T. Miller, W. H. Moore, C. D. Grauel and Charles E. Walters. The first board of directors was composed of J. V. Davis, H. A. Escher, George X. Cook, W. H. McLaughlin, Charles E. Walters. H. A. Escher was the first president; Charles E. Walters the first vice-president, and W. H. Moore the first cashier. Succeeding cashiers, who did much for the bank, as well as for the community in which they lived, were H. A. Gross and R. A. Studley.

These, then, are the institutions and the men who annually handle several million dollars of the money of the people and keep it doing effectively and well the functions for which money was designed. They have done much for the development of Shelby county and, as usually happens to those who serve the public good, faithfully and honorably, they have prospered themselves. It may properly be said of them that they are representative exponents of the productivity of Shelby county soil and of the results of Shelby county industry, sagacity and honor in getting from that soil the rich rewards to those who treat it well.

Transcribed by Denise Wurner, March 2014 from the Past and Present of Shelby County, Iowa, by Edward S. White, P.A., LL. B.,Volume 1, Indianapolis: B. F. Bowen & Co., 1915, pp. 306-313.

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