National Bank of Commerce in July, 1897. The officials of the latter named bank owned the capital stock of the Stock Yards Bank of Commerce and the Union Avenue Bank of Commerce, both of which were organized under the state laws. The business of the National Bank of Commerce increased until it became the largest bank west of Chicago, with one exception in St. Louis. It had a remarkably large clientage among the country banks tributary to Kansas City. Overwhelmed by a wave of distrust that steadily wore away its resources, the National Bank of Commerce suspended business December 5, 1907. In about six weeks the bank had paid off nineteen million dolars of its deposits, reduced its loans three and one-half millions, cut down its cash resources eleven and three-quarter millions and sold two millions of high grade bonds, all in the effort to meet the demands upon it. But there had been a continual drain, culminating in a clearing house debit balance of $400,000 that the bank was forced to meet. George T. Cutts was appointed receiver December 17, 1907, and the work of reorganization began at once. After it became apparent that the bank would reopen, W. B. Ridgely, comptroller of the currency, was asked to become president of the reorganized institution. He resigned as comptroller of the currency to accept the offer. The capital stock was increased and the bank was reopened March 21, 1908, without loss to the depositors. The Union National bank that succeeded the Traders' bank, was organized in 1887 by David T. Beals, George R. Barse, C. W. Whitehead, F. L. LaForce, H. J. Rosencrans and others. It has grown to be one of the solid financial institutions of the West. In 1898 the business of the Citizens' National bank was sold to the Union National bank. The Kansas City State bank was organized October 23, 1888, with a capital of $20,000. It grew to be one of the most important banks of its kind. The Missouri Savings bank was organized in 1891, with a capital of $50,000. Watt Webb became president of this bank and W. S. Webb cashier. It had a surplus of $25,000, which, with its capital, was invested in United States bonds. The bank is prosperous and its affairs well managed by the following officers and directors: Watt Webb, president; W. S. Webb, cashier; Eugene Carlat, Stuart Carkener, Oliver Carlat and W. L. Kessinger. The Western Exchange bank, organized January 1, 1899, under the state laws, succeeded the bank of H. S. Mills, which was organized in 1889. Its successor organized with J. S. Lillis as president, and H. Koehler as cashier. This bank was capitalized at $100,000, and had a surplus of $10,000 and deposits aggregating $550,000. The present deposits of the bank are one and one-half million dollars. The City National bank was opened February 2, 1900, with a paid-up capital of $250,000 and a surplus of $25,000. This bank began business under most auspicious circumstances. R. M. Snyder is president, J. G. Strean is vice president, and George P. Snyder is cashier. The bank owns its own building, the handsome structure at 545 Delaware street, formerly occupied by the National Bank of Commerce, and one suited to the purposes. Eleven days after the bank opened for business the deposits were over $400,000. The directors are John Long, J. Crawford James, Milton Moore and P. I. Bonebreak. The latter is the president of the Central National bank of Topeka, Kansas. The Traders' bank of Kansas City was opened for business October 15, 1900, with a capital stock of $100,000. The directors were George W. Fuller, Frank H. Woodbury, Sanford B. Ladd, C. C. Clemons, Ellis Short, John S. Morrin and A. J. Poor. The officers were J. R. Dominick, president; E. J. Colvin, vice president; J. C. English, cashier, and L. C. Parmenter, assistant cashier. The Corn Belt bank was established in June, 1905, with a capital of $100,000. The Fidelity Trust company, with a capital of one million dollars, does a general trust and savings bank business. It owns and occupies as a banking house the old Federal building at Ninth and Walnut streets, which it bought for $260,000 and remodeled. The Pioneer Trust company opened its doors January 20, 1903. It does a general banking, financial, real estate, trust and bond business. The United States Trust company does a strictly trust company business. It has a capital of $250,000. The United States and Mexican Trust company was organized in April, 1901. It does a general trust business, acting as trustee for issues of bonds, cares for and sells real estate and makes loans on real estate and approved collateral. This company is the fiscal agent for the Kansas City, Mexico & Orient Railway company, handles the securities for the construction companies, for which it is trustee, and has charge of the land interests of the railroad company along the line of the road in the United States and Mexico, including the town sites. A. E. Stillwell, president of the Kansas City, Mexico & Orient railroad, is president of the trust company. The Commerce Trust company opened for business October 1, 1906, with a paid-up capital of one million dollars. With bank deposits aggregating $114,365,493, and with bank clearings amounting to $1,649,375,013, Kansas City at the beginning of 1908 took high rank among the great centers of finance in the United States. Only New York, Chicago, Boston, Philadelphia, St. Louis and Pittsburg were in advance of Kansas City on January 1, 1908, in the volume of business represented by bank clearings, while many older cities, including San Francisco, Cincinnati, Baltimore, New Orleans, Cleveland, Detroit and Louisville, were surpassed by Kansas City. The rapid growth of Kansas City as a financial bulwark is shown comprehensively in this statement of bank deposits and bank clearings covering totals for each one of the past ten years: 1898, deposits $35,814,000, clearings $585,294,637; 1899, deposits $48,019,000, clearings $648,270,711; 1900, deposits $55,277,580, clearings $775,264,813; 1901, deposits $73,799,588, clearings $918,198,416; 1902, deposits $77,250,577, clearings $988,294,998; 1903, deposits $78,245,525, clearings $1,074,878,589; 1904, deposits $84, 228,000, clearings $1,097,887,155; 1905, deposits $91,665,721, clearings $1,197,905,556; 1906, deposits $102,215,000 clearings $1,331,673,055; 1907, deposits $114,365,493, clearings $1,649,375,013. The increase of $317,701,958 in the clearings for 1907 over the total for 1906 was greater than the total increase of bank clearings for the six years from 1880 to 1886, during which time Kansas City's famous "boom" occurred. From 1889 to 1896 little progress was made, but since 1896 the growth has been rapid. The total bank deposits in Kansas City banks were more than 300 per cent greater at the close of 1907 than the largest total of deposits reached in the year 1898, ten years previous. Reasons for Kansas City's growth and stability in banking are not difficult to discover. Since the early '50s, when the Northrup & Chick bank was started here, Kansas City has been recognized as a point for the distribution of merchandise and supplies for a vast territory. It has also developed along with its wholesale and jobbing trade, a great market for the products of this territory, as well as the building up of many lines of manufacture. These, in addition to the fact that it is a recognized money center for its trade territory, necessarily call for sound banks and safe banking methods. CHAPTER XI. THE STORY OF THE RAILROADS. Kansas City has twenty systems of railroads and thirty-nine separate lines, making it the second largest railroad center in America. The railroads entering Kansas City have an aggregate mileage of about 50,000, nearly one-fourth of the mileage of all the railroads in the United States. The lines radiating from Kansas City traverse thirty-one states and territories. From this center the capitals of sixteen states can be reached without changing |