The Vidette-Messenger Centennial EditionThe 1936 special edition celebrating Porter County's centennial year . . . .
The following article has been transcribed from the August 18, 1936, issue of The Vidette-Messenger, published in Valparaiso, Indiana. This particular special edition focuses on Porter County's centennial celebration and contains a 94-page compendium of Porter County history up to that time.
Return to the index of articles from The Vidette-Messenger's Porter County Centennial special edition.
Source: The Vidette-Messenger, Valparaiso,
Porter County, Indiana; August 18, 1936; Volume 10, Section 4, Page 19.
COUNTY HAS HAD STRONG BANKS, EFFICIENT BANKERS
Valparaiso Had a Private Bank In 1855; First National Opened In 1863, Farmers
Nat'l In 1874
Porter county
at the present time is served by five banks, two building and loan savings
associations and one postal savings bank. The present institutions successfully
weathered the bank crisis of 1932, when many institutions crashed and others
went into liquidation.
Credit for the establishment of the first bank in Porter county is given to
Hubbard and Franklin W. Hunt, who came to Porter county in 1849 and established
a dry goods and general merchandise business. In 1856 they disposed of their
business and opened a banking house. They following year Hubbard Hunt withdrew,
but Franklin W. continued in the business for some years. The bank was finally
liquidated by Franklin Hunt after a number of years.
Shortly after the commencement of the Civil war, congress passed an act
authorizing the establishment of national banks. Under the provisions of this
law articles of association were signed on May 20, 1863, for the formation of
the First National Bank of Valparaiso. The capital stock was fixed at $50,000,
which was held by twenty-one stockholders.
Later in the year the bank was fully organized with Levi A. Cass as president
and M. L. McClelland cashier. The first board of directors consisted of the
president, Thomas S. Stanfield, Joseph Pierce, W. C. Talcott, S. W. Smith, B. F.
Schenck and A. V. Bartholomew. The first deposit in this bank was made by Mrs.
Mary F. Brown on November 30, 1863. In 1882 -- the original charter for twenty
years being about to expire -- the bank was reorganized as the First National
Bank of Porter county, which occupied the same building, and was composed of the
same stockholders, though the capital stock was increased to $100,000. The
charter of the reorganized bank was dated May 4, 1882, to run for twenty years.
In March, 1902, William Johnston, Charles W. Benton and other filed an
application with the United State government for authority to organize the
Valparaiso National bank, to take the place of the old First National Bank of
Porter county. In response to the petition a charter was granted and again the
bank was reorganized.
In 1909, Charles W. Benton, who was vice-president, was chosen as president. In
1924, the bank sold its home, built in 1871, and erected a $100,000 banking
house just south of the old bank. A section of the bank was devoted to the
business of the First Trust Company of Valparaiso, which was organized in 1906
and is affiliated with the Valparaiso National bank. In 1930 A. J. Louderback,
cashier of the bank, retired after forty-two years in the banking business. He
is now living in Texas.
In 1929 Mr. Benton resigned and Dr. Horace M. Evans was elected president of the
Valparaiso National and First Trust company. In the banking crisis of January,
1932, both institutions were forced to close. H. Clay Hammond is receiver for
the bank, and J. W. Whitaker for the trust company. The bank has paid depositors
100 percent of their claims and the trust company twenty-five percent.
In November, 1874, Joseph Gardner started a saving bank which in the fall of
1976 was incorporated as the Farmers' National bank. It began business on
February 1, 1879, with a capital stock of $50,000. Joseph Gardner was the first
president. The first stockholders were Joseph Gardner, A. V. Bartholomew, H. B.
Brown, J. M. Felton, W. P. Wilcox, J. C. Flint, John Wark, Joseph R. Hill, N. J.
Bozrath and George A. Dodge.
On the death of Joseph Gardner in 1907, his son, W. H. Gardner, was elected to
the office. He retired in 1918 and was succeeded by Charles L. Jeffrey, of the
Chesterton bank. Shortly after Mr. Jeffrey became connected with the bank it was
decided to convert it into a state bank, which was carried into effect March 2,
1918, since which time the institution has been known as the Farmers' State
bank.
In February, 1926, the bank's quarters in the old Academy of Music block was
destroyed when fire razed that structure. The next day the bank was able to
resume business in the Brown building at the corner of Lincolnway and
Washington.
The same year officials of the bank closed the deal for the purchase of the
west-half of the Specht-Finney building at the corner of Lincolnway and
Franklin, and began at once to remodel it for a new home. In May, 1927, the bank
moved into the newly-remodeled building.
Mr. Jeffrey resigned as president in 1929 and was succeeded by Arthur A.
Hughart. He served until 1932, when he was succeeded by P. W. Clifford. During
the banking crisis in January, 1932, the bank closed for a time, but soon
reopened on a sound basis. It carries federal insurance up to $5,000 for each
depositor.
The State Bank of Valparaiso was organized in 1889 under the laws of Indiana. It
occupies a handsome and well appointed building on Indiana avenue, opposite the
court house. The need of a Porter county bank, authorized to loan money on
Porter county farms, caused William E. Pinney and some associates to organize
the State Bank of Valparaiso, with a capital stock of $35,000. Mr. Pinney served
as president of the bank from 1889 to 1912, when he was succeeded by Hannibal H.
Loring, who is still head of the institution.
In 1903, when the bank erects its building, neither a state bank nor a national
bank was authorized to act as trustee, administrator, executor, guardian or
receiver in a court proceedings and thrift was not encouraged among young people
by paying interest on savings accounts. To furnish this service, Mr. Pinney and
his associates in 1908 organized the Thrift Trust company with a capital stock
of $25,000. On December 1, 1926, the capital and surplus of the bank was
$138,000 and of the Thrift Trust company, $62,000.
During the banking crisis in January, 1932, the State Bank of Valparaiso did not
close its doors, nor suspend operations. At the present time the bank is known
as the First State Bank of Valparaiso. In 1934, the Thrift Trust company was
discontinued by the bank and its assets are now being liquidated.
The Chesterton State bank at Chesterton was organized on April 3, 1890, by
Joseph Gardner, of Valparaiso, and George C. Morgan of Chesterton. Mr. Morgan
died in 1894, and Mr. Gardner continued in the business until January 7, 1902,
when he sold his interest to Charles L. Jeffrey, who had been cashier of the
bank since its organization. A complete reorganization of the bank took place on
July 25, 1910, when the capital stock was increased from $10,000 to $25,000. Mr.
Jeffrey died on February 27, 1933, and Edward L. Morgan was elected president.
The Citizens' Bank of Hebron was first organized in 1890 with Robert J. Dwiggins,
president; Jay Dwiggins, vice-president, and J. W. Moss, cashier. Through a
combination of unfortunate circumstances the bank closed and M. J. Stinchfield
was appointed receiver. A total of ninety-five percent was paid depositors, and
later Mr. Dwiggins mailed each depositor a check for the remaining five percent.
In the meantime, the Citizens' Bank of Hebron had been organized in 1894, with a
capital stock of $25,000. During the banking crisis in January, 1932, the bank
closed for a few days and then reopened. C. J. Hobbs is president of the bank.
He succeeded George C. Gregg, who died on April 28, 1934. Robert McGinley is
cashier and Mary Bryant, assistant cashier.
On January 8, 1909, the Bank of Kouts, of which Robert Parker, of Remington,
Jasper county, was president, closed its doors and a representative of the state
auditor took charge. Parker was subsequently sent to prison on a charge of bank
wrecking.
Citizens of Kouts purchased the old building and organized the Porter County
bank, which opened its doors on July 31, 1900. In April, 1927, the bank was
again closed by the state banking department after an alleged shortage of
$77,000 was found in the accounts of Cashier Charles Cannon. Cannon was later
sentenced to prison. The affairs of the bank were liquidated. At the present
time Kouts has no bank.
A postal savings bank was opened on July 31, 1911, in connection with the
Valparaiso postoffice, the first deposit being made by A. L. Brown. A postal
savings bank was also started at Chesterton in 1912.
In December, 1887, a number of Valparaiso citizens established the Valparaiso
Building, Loan-Fund & Savings Association. Through the operations of the
association many people of Valparaiso have been aided in securing homes of their
own. In July, 1935, the association was merged with the First Federal Savings &
Loan Association of Valparaiso. Accounts of all investors and borrowers were
transferred to the new association. Mark L. Dickover is president of the First
Federal Savings and Loan Association of Valparaiso, and Earl V. Smith is
secretary.
In 1919 the Citizens Savings and Trust Company bank was organized in Valparaiso
with a capital of $50,000, and opened for business on January 1, 1920. Its
founders and directors were: W. J. Henry, president; C. E. Fifield,
vice-president; H. L. Arnold, vice-president; G. A. Shauer, secretary; J. B.
Dilley, Isaac Dillingham, F. W. Alpen, directors, and E. J. Gardner, cashier. In
1927 the bank had total resources of $602,171.06. Officers were: F. W. Alpen,
president; William, Urschel, vice-president; Morgan Porch, treasurer; J. W.
Whitaker, secretary; E. J. Gardner, cashier; Dr. A. O. Dobbins, J. O. Shauer and
J. W. Kuehl, directors. Several years later the bank was merged with the
Valparaiso National.
In 1921 a Rural Loan and Savings Association was formed at Chesterton for the
purpose of making loans on farms and real estate. From a humble beginning the
association has grown by leaps and bounds. A year ago the capital sock was
increased from $100,000 to $500,000. During the depression years the association
has paid three percent annually on its common stock. The association also has a
surplus of $15,000. Present officers are: Joseph H. Ameling, president; Harry R.
Smith, vice-president; Charles W. Jensen, secretary; Miss Irene E. Kreiger,
assistant secretary. Directors in addition to the officers are Marion P.
Brummitt, John G. Johnson and H. A. Flynn.
The First State Bank of Porter was organized in 1920 with a capital stock of
$25,000 with E. A. Wilson, president; John E. Kemp, vice-president; C. W.
Wright, cashier, and H. L. Arnold, chairman of the board of directors. It is
engaged in general banking and insurance business and is authorized to act as
administrator, guardian and trustee and maintains a savings department. The bank
occupies a modern brick structure equipped with fire and burglar-proof system
and modern fire and burglar-proof vaults.
Article transcribed by Steven R. Shook