Portland, Oregon: Its History and Builders/Volume 1/Chapter 24

by Joseph Gaston

CHAPTER XXIV.

1859 — 1910.

Pioneers Days, Legal Tender — The Great Gold Discovery — The Beaver Money Mint — The First Bank and Banker — The Vicissi- tudes of the Banks — The Present Banks — The Foreign Banks — Financial Institutions — The Financial Situation.

The monetary and financial aflfairs of Oregon began to take shape in the year 1845. Prior to that time the Hudson's Bay Company had controlled all trade, commerce, barter and sale of products. And the only produce, if such it could be called, was the furry skins of wild animals. The beaver pelt was taken as the basis of standards of values, and everything was rated at so many beaver skins, or so much of something for one beaver skin. But when the people of the territory organized their provisional government in 1843, they set to work to enlarge the circulating medium so as to put an end to beaver pelt money, and prevent the fur company from cornering "the legal tender money of the realm." Our pioneer founders and starters of things in this part of the world may not have been scientific financiers, but they managed to get along somehow, and "make both ends meet"; and were quite as comfortable in their ability to pay taxes and a great deal more independent than their successors in these parts now- adays.

At the regular session of the house of representatives of the provisional gov- ernment of Oregon, commencing December 2, 1845, ^ ^^^ was passed regulating the currency, in which gold, silver, treasury drafts, approved orders on solvent merchants, and good merchantable wheat delivered at places where the people were accustomed to receive wheat, was declared to be a lawful tender for taxes and payment of judgments rendered by the courts of Oregon. The sections of the law on exemptions from sale included nearly everything, and no property could be sold for less than two-thirds of its value.

Another act was passed on August 19, 1845, regulating the legal tender of which the following is a copy :

"Be it enacted by the house of representatives of Oregon territory as follows: That cash, or the following articles at their current value, shall be a lawful tender in the payment of all demands in this territory, where no special contract had been made between the parties, viz., available orders, wheat, hides, tallow, beef, pork, butter, lard, peas, lumber, or other articles of export of this territory; provided the same be delivered at such points on the navigable streams, or such other places as may be established as depots of such articles. This act to take effect and be in force from and after its passage."

THE GREAT GOLD DISCOVERY.

The greatest event in the first one hundred years after the American revolu- tion was the discovery of gold in California. At first thought this seems to be

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a very unfounded statement. But a careful survey of the whole field of enter- prise, the commerce of the world, and the standard of living throughout the United States, will show that the discovery of gold wrought a greater change in the United States and the financial relations of this country to other nation^, than any other one fact or any other one hundred facts, subsequent to the inde- pendence of these states.

Up to the year 1848 the United States had possessed a very narrow metallic base for a circulating medium. And what the country did possess was mostly silver coin. Gold coin, the delight of kings and the sceptre of millionaires, was exceedingly scarce in the United States ; and on this account the financial stand- ing of this country and the rating of its securities were practically at the mercy of the Bank of England and the house of Rothchilds, which financial institutions either possessed or controlled the great bulk of the gold coin of the world. When the mines of California commenced to pour out their great flood of gold, every line of business in the whole of the United States took on new life. And within five years after this great discovery, there were more manufacturing establish- ments started in the United States than had been for a generation before that event. The banking institutions took on a new phase altogether. From securing circulating notes with deposits of states bonds, which were not payable in gold, and of doubtful specie value on any liquidation of assets, the banks began to accumulate gold. Gold begot confidence as nothing else ever had before, and people more freely deposited their savings in banks. From a starving little near- to-shore business, the banks were enabled to extend accommodations to manu- facturers and producers of wealth. And railroads that had been for twenty years creeping out slowly from Atlantic seaports to the Alleghany mountains, found sale for their securities, pushed on over the mountains and out into the great Mississippi valley, and on across the continent reaching Portland, Oregon, a quarter of a century before they had expected to get to Chicago under the old paper money financiering days before the discovery of the gold. The flood of gold changed the whole face of affairs, put new life into all business and com- mercial undertakings, brought all the states and communities together under one single standard of values, and pushed the United States to the front as the great- est wealth-producing nation on the face of the earth.

And here Oregon comes to the front again. The discovery which lifted America above all the nations, was made by an Oregonian. James W. Marshall, the discoverer of gold in California was an Oregonian. He came to Oregon in the immigration of 1844, and not finding much to do here, went down to Cali- fornia the next year. He was a handy sort of a man, could build a house, run a sawmill or keep store. In California he made himself useful to the old pioneer, Capt. Sutter, and was taken into Sutter's business as a partner, and sent up from Sacramento into the Sierra Nevada mountains to select a site and build a saw- mill. He selected the point at Coloma, on the south fork of the American river, and built the mill. After turning the water on his mill wheel, he had occasion to go and look at the tail-race, and there on the 19th of January, 1848, discovered the shining particles of gold in the tail-race where the water had washed the gold from the sand. Two other Oregonians who had been employed by Marshall to help build the mill— Charles Bennett, and Stephen Staats of Polk county — were there at the mill at the time, and were called to look at the gold in the water and confirm the discovery.

The discovery spread like wildfire and Calif ornians rushed in from all quar- ters. But it was not known in Oregon until seven months after the discovery. And then the Oregonians went wild. Everybody that could get away, rushed to California, and nobody was left but old men, boys and the women folks. Two- thirds of the Oregon men started for California. Only five men were left in Salem, and only a few women, children and some Indians were left at Oregon City. Pack trains were the first means to get to the gold fields ; and after that a train of fifty wagons started. The first account of the gold receiv ed here in

Portland was on July 31, 1848. The little schooner Honolulu from San Fran- cisco sailed in over the Columbia bar and slowly beat her way up the river, and finally tied up to an oak tree where the west end of the steel railroad bridge now stands. The captain of the schooner was in a hurry to discharge cargo and get away. He made haste to load up with all the meat and flour his ship would carry, and then bought up all the picks, pans, and shovels he could find in town. And when he had got everything aboard, he made known the news — and it spread as if by the wireless telegraph of sixty years later.

THE OREGON MINT AND BEAVER MONEY.

The gold discovery was put in here to show how the Oregon mint and beaver money was evolved therefrom. Marshall's discovery was purely an accident. No evolution in that. But Oregon is wholly an evolution from pre-existing forces and influences. It started that way, and is today proceeding on to its great future as a purely evolutionary growth from fundamental causes to reasonable results.

The Oregon rush to California for gold resulted in bringing back within a year unimaginable wealth. From poverty the Oregonians had leaped to great riches at a single bound. The miners not only returned loaded down with gold dust, but the few people that had remained in Oregon had got rich in shipping down to the mines their flour, beans, bacon and lumber. From a legal tender cur- rency of beaver skins and bacon sides, Oregonians were struggling with a cur- rency of gold dust. An ounce of gold dust was practically worth $16, but the Oregon merchants would not take it for goods, for more than $11, while the Hudson's Bay Company, having some coined money, was buying up gold dust at $10 an ounce and shipping it to the mint in London. This condition of affairs caused the circulation of a petition to the Oregon provisional government, set- ting forth that in consequence of the neglect of the United States government, the people must combine against the greed of the merchants ; and the provisional government must at once set up an Oregon mint to coin the gold dust into legal tender money. It was represented as a basis of action that there was then in February, 1849, $2,000,000 worth of gold dust ready to be coined. That was about six times as much money per capita of the population as there is now, or ever has been since 1852. And prices of everything went up accordingly. Beef was ten to twelve cents a pound on the block ; pork sixteen to twenty cents ; but- ter sixty-two to seventy-five cents — nearly double what it is today ; flour was $14 per barrel; potatoes $2.50 a bushel, and apples $10 a bushel.

The petition for the mint was favorably considered by the provisional legis- lature, and a bill was passed to authorize it and to coin money. Two members of the legislature — Medorum Crawford and W. J. Martin — voted against the measure on the grounds that it was inexpedient and a violation of the constitu- tion of the United States. The acts provided for an assayer, melter and coiner, and an alloy was forbidden in the money. Two pieces only were to be coined — one to weigh five pennyweights, and one ten pennyweights, and both to be pure gold. The coins were to be stamped on one side with the Roman figure for the smaller coin, and the other with the figure ten on one side. And on the reserve sides the words "Oregon territory" with the date of the year around the face, with the arms of Oregon in the center. The officers of this mint were James Taylor, director, Truman P. Powers, treasurer, W. H. Willson, melter and coiner, and George L. Curry, assayer. The mint succeeded in coining $50,000 of these coins before Governor Joseph Lane reached Oregon and closed it up. Nobody was ever prosecuted for issuing this money, although it was a clear violation of the constitution and laws of the United States.

But Governor Lane did not stop the coining of gold dust. Although the ter- ritorial mint was closed up, the need of a currency of certain value still remained. And to supply that, a partnership was formed, called the "Oregon Exchange Company," which at once proceeded to coin gold on its own responsibility. The

members of that company were: W. K. Kilborne, Theophilus Magruder, James Taylor, George Abernethy, W. H. Willson, W. H. Rector, J. G. Campbell and Noyes Smith. Rector made the stamps and dyes. The engraving was done by Campbell. Rector acted as coiner, and no assaying was done. This company coined about $55,000 worth of gold into two pieces to circulate as tokens of five and ten dollars, respectively. This coinage raised the price of gold dust from twelve to sixteen dollars an ounce, and saved a vast amount of money to the honest miners. Engravings of the "beaver money," as this last coinage was called, are shown on another page.

The general effect of the wealth of gold brought back from California was beneficial to Oregon ; yet in all too many instances it proved the ruin of many men whose sudden rise to riches induced habits of profligacy and dissipation from which they never recovered. Many men brought back as much as thirty or forty thousand dollars washed out of the California streams within a year or two; and then threw it all away on idle dissipation, and had to start in again at the bottom of the ladder encumbered with bad habits and remorseful regrets.

THE FIRST BANK AND BANKER.

The first bank opened in Portland was the joint venture of William S. Ladd and Charles E. Tilton. Mr. Ladd came to Portland from Vermont in the year 1850, and engaged as a salesman in a grocery and liquor house. He was ener- getic and attentive to business, and soon rose from salesman to owner of the establishment. He pushed his business with energy and assiduous industry, rapidly accumulating money out of the gold dust ladened miners returning from California. He was the first man to risk money in more substantial improve- ments, and built the first brick house — a business house — on Front street in Portland.

In 1859, ^^ partnership with Charles E. Tilton of New York, they started the first bank in Portland, it being the first bank doing regular business on the Pacific coast. Interest was 2 per cent a month in those days ; times were flush, and the bank made money from the very first day with great rapidity, being a veritable gold mine. And as it had no competition until the organization of the First Na- tional in 1866, the bank was a power from the start, and cleared up half a million dollars on its original capital of twenty-five thousand before the First National got into the field. Mr. Ladd was not only a shrewd and successful banker, but he had a keen insight to the future of the city, and never took cash when he could get land adjoining East or West Portland for old debts. These early in- vestments proved enormously profitable. One of them, 400 acres, costing $4,000, now platted as "Laurelhurst," is being harvested at a profit of $4,000,000.

The first bankers in the state had a rich harvest field for their financial tal- ents. Money in 1865 was about as plentiful as today; and the opportunities to use it profitably were upon every hand. In southern Oregon the rate of interest was 2 per cent a month, while at Portland and in the Willamette valley it com- manded about 18 per cent per annum. And those who had money to buy up "greenbacks" — 'U. S. treasury notes — at forty cents on the dollar, made even more than the current high rate of interest. For a while it was very risky busi- ness to loan out gold coin at interest ; for as the greenbacks were an absolute legal tender, the borrower, if so disposed, could pay ofif a loan made in gold with the greenbacks not costing half the value of gold. Not many men took advan- tage of the law to pay gold obligations in notes, and those that did so were there- after marked as dishonorable men. To avoid the contingency of being paid in greenbacks, a bill was introduced in the legislature in 1865 or '66 called the "Specific Contract Act," and which was passed into a law, authorizing the courts to specifically enforce contracts payable in gold ; and providing that the courts should include in judgments and decrees, founded on such contracts, an order to the sheriff to sell property on execution for such debts, for gold coin only.

There was a great fight over the measure in the legislature while under considera- tion ; a large minority of the members taking the position that the act was a vio- lation of the constitution of the United States, and disloyal and dishonorable in the extreme, inasmuch as the greenbacks had been used only under dire necessity by President Lincoln to support the army and put down the secession rebellion. No argument was tolerated against the last objection to the proposition, but as to its constitutionality there was reasonable difference of opinion. A similar measure had been adopted in California, and held good by the supreme court of that state. The friends of the proposed measure had procured a copy of the Cali- fornia decision and read it in support of the proposed Oregon law. It was read not only once, but by four or five members of the legislature anxious to distin- guish their speeches in that way. Finally the California argument got to be a bore, when Col. I. R. Moores of Salem, put it out of commission by rising in his seat and gravely moving that the decision of the supreme court of California be considered engrossed, read the third time and put upon final passage now. That ended the argument.

THE PANIC OF 1893.

The city of Portland has been fortunate in that it has never suffered but a single financial panic that has wrought any very great hardships to the people in general or seriously injured current business transactions. But in the panic of 1893, the city of Portland was not an exception. It suffered in common with many other business centers of the United States; showing that the underlying causes of that great disaster were not local but widespread and national. How- ever, in the case of this city there was one local influence that greatly aggravated the general disturbance. The general and national trouble was the free coinage of silver. All the great trust companies and the bondholding creditor class of every community looked upon free silver coinage with exactly the same eyes and motives as did the Oregon money lender upon depreciated greenback currency. There was a possibility that existing obligations might be paid off with silver coin intrinsically worth only half as much as gold coin. The creditor wanted all he could collect on his claim against his debtor. The silver mines of Mexico, Peru, Colorado, Nevada, Utah, Montana, Idaho and other regions had been for a long time pouring out on the business world a great flood of silver. Its utility value, like that of gold, was not large. It had for hundreds of years been almost the only standard of values on account of the limited supply of gold. But finally the increased supply of gold from California, Australia and South Africa, had so far turned the scale between the two metals as to attract the world-wide at- tention of business men. The purchaser of long bonds was the first to scent the danger ahead. He was also the man most able to make trouble. He stopped buy- ing bonds. That stopped construction of public improvements. That curtailed the purchasing power of the laboring classes. That reduced the price of wheat in eastern Oregon to thirty cents a bushel. That cut off the ability of the farmer to buy the comforts of life and the means to improve his land or harvest more crops — and down went everything to a general smashup. Seven Portland banks closed their doors in one day. The foreign branch banks, the First National, Merchants' National, and Ladd & Tilton weathered the storm, and paid out gold coin until every depositor was satisfied, although not all the depositors demanded their money. J. Lowenberg was then at the head of the Merchants' National, and although its resources were ample, it did not have coin enough, but its president, with unflinching courage, put up his entire private fortune to the last dollar to get the coin — and saved his bank. The other two banks with still larger re- sources, were short of cash to meet every demand that might be made; when a friendly telegram sent to San Francisco brought a special train whizzing through seven hundred miles of space with half a million dollars in gold from the Bank of California. All day long the calm and kindly face of Henry W. Corbett stood behind his cashier witnessing the fearful drain of gold, and seeing hundreds of

men whom he had helped over many a trying place, come up and demand the last penny due them. At the Ladd & Tilton Bank a man of different fiber took command. He, too, stood behind the cashier to see the rush of gold deplete the coffers of that first bank that had never delayed any demand. Confident, un- moved, stern, if not defiant, Theodore Wilcox stood off the raging storm to pro- tect the honor of his deceased friend, and closed the bank at night after an all-day attack, with every demand paid in full. And there are hundreds of men who persist in believing to this day that it was the nerve and courage of Wilcox that saved the bank quite as much as the coin.

Of course such a storm and shock could not be repaired in a day. Of tlie seven banking institutions that were closed by that panic, only one of them ever opened again for business. They were wound up either by the courts or the government. As a result of that panic, there were a vast number of foreclosures of mortgages as well as actions and judgments ; and it has been estimated that about one-half the real property in the county changed hands in consequence of such foreclosures and sheriffs sales. And the city was nearly seven years in recovering from the losses and general disarrangement influcted on property holders and business men.

It is necessary to state here that "The Portland Trust Company of Oregon," founded by Benjamin I. Cohen, of which Henry L. Pittock is now president, was also one of the financial institutions which did not close its doors during the panic of 1893. Although not at that time doing a large banking business, yet it was doing considerable, and it paid every demand in full as fast as presented.

THE SQUEEZE OF 1907.

About the month of September, 1907, some retail banker away back at Wall Street, New York, started the story that there was just about to be a financial cataclysm in the shape of a panic wherein the curbstone brokers along the said street would not be able to borrow any more money to keep their honest industry of speculating in stocks going. That was enough. The story was started ; and within twelve hours, it was wired all over the United States and spread broadcast over the whole country through the columns of millions of sheets of daily news- papers. Everybody stopped from the Atlantic to the Pacific to inquire about it, and would not move another peg until they found out whether there was any- thing in it for them. This stopping for even twenty-four hours, sent the cold chills streaming up and down the backs of several millions of men who had all sorts of schemes afloat, or owed debts, or wanted to borrow money. And so there was a very mild sort of a panic. There was no cause for it. Business was good all over the United States, and especially good in Portland, Oregon. But the lies and insinuations and the ever present suspicions and fears soon locked up the hoards of the timid and the millions of the capitalist. It was known that a couple of savings banks in town had been skyrocketing with other people's money in telephone bonds, irrigation bonds and timber land speculations. But all that, and all the noise that such concerns could make, would not have made as much dust as the fly on the cartwheel. But when a retrospective view is taken, the denouement of the scare looks amusing if not farcical. A section of an Ore- gon statute authorizes the governor of Oregon to designate and proclaim legal holidays. And on kgal holidays nobody can transact any lawful business. So the banks arranged with the governor of Oregon to proclaim holidays from day to day until the said banks were prepared to meet their depositors and do busi- ness. And under the arrangement, the banks could receive deposits, but they were not under obligations to pay out deposits, or pay anything. This was chap- ter No. I.

Now we come to chapter No. 2. After securing the holidays, the clearing house banks proceeded to create and issue some fiat money. Any mem- ber of the Clearing House Association that needed more circulation, would take

a bundle of their promissory notes to the clearing house committee and get an allotment of clearing house certificates, which bore on their face the statement that the said bank had deposited with the said clearing house committee securi- ties to redeem the said certificates, and that the said committee would guarantee that the holders of such cerificates would be paid out of the said securities. These certificates were then paid out to the customers of the bank in the course of business, or loaned to them if desired. Many thousand dollars of this sort of paper was issued and passed into all the channels of trade all over the state, al- though none of the banks outside of Portland went into the scheme, or appHed for any of the certificate money. The certificates were based on the paper due the banks ; the paper due the banks was based on fish, wheat, lumber, wool, hops, fruit, manufactured goods, etc. And the grangers who proposed fifteen years before to have the U. S. government lend the farmers paper money on wheat, cotton, wool, etc., were now able to take front seats in finance, and sit at the head of the table with the most exclusive of Portland millionaires. The certifi- cates were all faithfully redeemed within six months.

Oregon banks and Oregon business is now on a stable and prosperous foun- dation. Probably no other state in the union can make as good a financial show- ing for the size of its population as Oregon.

Another great stride in the commercial growth of the state of Oregon is marked by the report of the state bank examiner, showing the condition of Ore- gon banks on September i, 1910, and their condition a year ago. The increase for the year in total resources of the banks of Oregon has been more than $20,- 000,000, and the total deposits are now greater than $100,000,000. The number of banks has increased during the same period from 204 to 232. There has been an increase of 23 state banks and five national banks. There are now in Oregon 17 national banks and 155 state banks. Loans and discounts of Oregon banks a year ago were $56,175,507.28, while on September i, 1910, they equalled $71,944,- 594.63, an increase for the year of $15,768,887.35, and an increase since Sep- tember 23, 1908, of $22,136,513.67. The deposits have increased correspond- ingly. On September i, 1910, total deposits in all Oregon banks equalled $100,- 852,445.40. The increase since September, 1909, is $14,760,583.87. Total re- sources of all Oregon banks now equals $142,670,514.57, an increase in a year of $20,698,666.90. The capital stock of Oregon banks has increased during the year $3,074,375.40. It now equals $15,121,125.40. Surplus funds in Oregon banks on September ist, were $4,798,663.88, an increase since September i, 1909, of $230,435.03.

Two-thirds of the sum total of Oregon bank capital and bank transactions is to be credited to the city of Portland. Portland's bank clearances have more than doubled in five years. Since 1904 each year has shown a gain over the pre- ceding year, with the exception of 1908. Until this year, 1907 held the record- breaking total, but was followed by a period of financial unrest which showed its effect until late in 1908. In 1908 the clearances fell $40,000,000 below those of 1907, but in 1909 every month showed an increase until at the close of the year^ the total aggregates more than $391,000,000, as against $189,051,469.92 in 1904. The following table gives the bank clearances for the last six years :

1904 $189,051,469.92

1905 228,402,712.69

1906 281,170,796.26

1907 350,888,630.97

1908 310,656,512.69

1909 39i>479724-89.

Reports for the year 1910 are not available when this chapter was prepared ; but estimating from known increases of business Portland's bank clearings for the year 1910, will not fall short of five hundred million dollars. Upon this date (October 1, 1910), Portland leads all important cities in bank clearings for the past week with a gain of 27.1 per cent. Among Pacific coast cities, San Francisco is next with 23 per cent, Tacoma 7.7, Los Angeles 2, while Seattle shows a loss of 12.7.

The last complete condensed statement of the condition of the twenty-three national, state and private banks of Portland that has been available for this work is dated November 15, 1910, and is as follows:

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FOUNDERS OF PORTLAND BANKS 1— Benjamin I. Cohen— Portland Trust Company. 2— William S. Ladd (portrait of 1851) — Ladd and Tilton Bank. 3 — Julius Lowenberg — ^Merchant's National Bank. 4 — Henry Failing — First National Bank. Total deposits in the banks of Portland, as shown by the reports filed are $67,199,067.39. This is an increase of $7,238,068.93 over a year ago.

The figures presented in the accompanying table do not include the deposits of the First National Bank of St. Johns and the Peninsula Bank of St. Johns, which have $161,178.52 and $157,681.28, respectively.

THE STATEMENTS OF INDIVIDUAL BANKS.

The First National of Portland, the oldest national bank on the Pacific coast, having now the largest capital and business, and having had an open history from its original organization, naturally stands first in point of interest. It was organ- ized on July 4, 1865, and commenced business in a little room in the second story of the brick house on the west side of Front street three doors south of Stark street. Its growth and strength is typical of the growth of Portland. The fol- lowing list covers the names of the original stockholders, and the first and suc- ceeding officers down to the present time.

FIRST NATIONAL BANK.

Organization July i, 1865.

Stockholders and Organizers — A. M. Starr, L. M. Starr, H. W. Eddy, Alex. P. Ankeny, Phil Wasserman.

First Officers — A. M. Starr, president; Amory Holbrook, cashier. January 10, 1866 — L. M. Starr, president. March 17, 1866 — ^James Steel, cashier. Au- gust II, 1869 — Henry Failing, president. January 13, 1875 — H. W. Corbett, vice-president. January 9, 1883 — Henry Failing, president ; H. W. Corbett, vice- president; G. E. Withington, cashier. January 10, 1899 — H. W. Corbett, presi- dent; G. E. Withington, cashier. January 8, 1901 — H. W. Corbett, president; A. L. Mills, vice-president; G. E. Withington, cashier. April 9, 1903 — A. L. Mills, president; G. E. Withington, cashier. January 10, 1905 — A. L. Mills, president; J. W. Newkirk, cashier. March 31, 1909 — H. L. Corbett, vice-presi- dent.

The statement of the First National Bank for the first month ending De- cember 31, 1866:

Loans $ 29,385.22 Capital stock $100,000.00

U. S. bonds 150,000.00 Circulations 88,130.00

Premium on bonds 1,312.50 Deposits 257,827.03

Due from bonds 27,720.23 P. & L 1,586.08

Furniture, etc 2,050.00

Treas. U. S. redemption... 192.10

Cash 237,183.06

$450,843.11 $450,843.11

Statements at close of business on September i, 1910:

Loans and discounts $ 6,986,946.06

U. S. bonds at par 2,200,000.00

Other bonds 997,648.69

Bank premises 70,000.00

Due from U. S. treasurer $ 25,000.00

Due from other banks 1,768,030.49

Due from reserve agents 1,240,556.88

Cash on hand 2,918,479.60 5,952,066.97

Total resources $16,206 ,661.72

Capital stock $ 1,500,000.00

Surplus and undivided profits 965,531-79

Circulation 487,000.00

Deposits, individual $9,139,527.94

Banks 4,114,601.99 13,254,129.93

THE merchants' NATIONAL BANK.

The Merchants' National Bank was organized as a savings bank under the name of "The Willamette Savings Bank" on July 19, 1886; it was reorganized and incorporated as a national bank with the following first board of directors : J. Frank Watson, J, Lowenberg, H. L. Hoyt, James Steel, J. A. Macrum, W. C. Johnson and J. K. Gill. The charter was renewed in 1906. The bank is the next oldest national bank in Oregon after the First National, noticed above; and the following are the present officers: R. L. Durham, president; M. L. Holbrook, vice-president; George W. Hoyt, cashier, and S. C, Catching, assistant cashier.

Statement of condition of bank at close of business on September i, 1910:

Resources.

Loans and discounts $1^783,903.55

U. S. bonds to secure circulation 250,000.00

U. S. bonds to secure government deposits 150,000.00

Stocks and warrants 97,230.63

Furniture and fixtures 8,000.00

U. S. and other bonds $756,069.36

Cash and due from banks 747,805.04 1,503,874.40

$3,793,008.58 Liabilities.

Capital stock $ 250,000.00

Surplus and undivided profits 1 54,984.44

National bank notes outstanding 250,000.00

Dividends unpaid 365.50

Deposits 3,137,658.64

merchants' savings AND TRUST COMPANY.

$3,793,008.58

This bank was incorporated in April, 1901, but did not enter active business until July, 1906. Capitalization is $150,000, and its first directors were J. Frank Watson, R. L. Durham and R. W. Hoyt. Its officers then were J. Frank Wat- son, president; R. L. Durham, vice-president; George W. Hoyt, secretary, and S. C. Catching, assistant secretary.

In the present organization the capital remains the same, the directors are J. Frank Watson, R. L, Durham, R. W. Hoyt, W. H. Fear, Geo. W. Hoyt ; and the present officers are as follows: J. Frank Watson, president; R, L. Durham, vice-president; W. H. Fear, secretary; S. C. Catching, assistant secretary.

Savings Department.

Deposits received from $1 up, on which interest is paid. Interest-bearing cer- tificates, six and twelve months, fixed time, and ninety days' demand, issued as required.

Trust Department.

This company acts as trustee in bond issues, trustee of estates, individuals, syndicates and corporations. Also as registrar and transfer agent of corpora-

tions. J. Frank Watson, president; R. L. Durham, vice-president; Wi. H. Fear, secretary; S. C. Catching, assistant secretary; O. W. T. Muellhaupt, cashier.

Statement of conditions at close of business September i, 1910:

Resources.

Loans and discounts $282,758.84

Oveirdrafts None

Bonds and securities i74'597-54

Real estate 32,854.25

Cash and due from banks 198,332.10

$688,522.73 Liabilities.

Capital $150,000.00

Undivided profits 42,574-35

Deposits 495,948.38

$688,522.73

UNITED STATES NATIONAL BANK.

The United States National Bank has grown out of the Ainsworth National Bank, organized October 27, 1885, by John C. Ainsworth, L. L. Hawkins, L. F. Grover, W. K. Smith, and Preston G. Smith, with L. L. Hawkins, president, and J. P. Marshall, cashier.

The bank was named in honor of Capt. J. C. Ainsworth, founder of and always president of the Oregon Steam Navigation Company noticed at length in chapter XV; and continued under the management of Mr. Hawkins from 1885 until January, 1896, when J. C. Ainsworth was made president.

On October 31, 1902, the bank was amalgamated with the United States National Bank, which carried the business of both the former institutions down to the present writing.

The United States National Bank was organized January 5, 1891, by Donald MacLeay, Jacob Kamm, J. E. Haseltine, Rufus Mallory, Kenneth MacLeay, F. C. Miller and George W. E. Griffith, with Donald MacLeay for president, J. E. Haseltine, vice-president and F. C. Miller cashier. The bank continued under practically the same management, Tyler Woodward serving as president for a term, until October 31, 1902, when it was amalgamated with the Ainsworth National Bank, the controlling interest therein being at that date purchased by Mr. J. C. Ainsworth and his associates; and on the same date Mr. Ainsworth was elected president; W, B. Ayer, vice-president; F. C. Miller, cashier. On January 20, 1903, Mr. Miller resigned as cashier, and Mr. R. W. Schmeer was appointed in his place, and has continued to serve as such officer until the pres- ent writing. The president of this bank is a son of Capt. Ainsworth.

On May 31, 1905, the business of the Portland branch of Wells, Fargo & Co.'s Bank was absorbed by the United States National, and the following offi- cers elected : J. C. Ainsworth, president ; R. Lee Barnes, vice-president ; R. W. Schmeer, cashier; A. M. Wright and W. A. Holt, assistant cashiers, which are the officers at present.

Statement of business at close of day, September i, 1910:

Assets.

Loans and discounts $ 6,672,650.54

United States bonds at par 1,054,100.00

Municipal and railway bonds 9 46,802.10

Bank building i25,ooo.cx.

Cash and exchange 4,429,046.65

Total : $13,227,599.29

Liabilities.

Capital $ 1 ,000,000.00

Surplus 500,000.00

Undivided profits 320,973.12

Circulation 798,050.00

Deposits 10,227,599.29

Total $13,227,599.29

SECURITY SAVINGS AND TRUST COMPANY.

The Security Savings and Trust Company of Portland, was incorporated in 1890. The first board of directors was composed of Henry Failing, C. H. Lewis, C. A. Dolph, Joseph Simon, A. L. Mills and C. F. Adams. The present officers are: C. F. Adams, president; A. L. Mills, vice-president; C. A. Lewis, vice-presi- dent; E. A Wyld, vice-president; R. G. Jubitz, secretary.

Statement at close of business March 29, 1910:

Loans $4,325,204.55

Bonds, warrants 1,228,142.46

Customers' liability, under letters of credit 16,727.82

Cash and due from correspondents 2,128,760.09

Total $7,698,834.92

Capital $ 500,000.00

Surplus and undivided profits 414,197.42

Letters of credit 27,587.91

Deposits \ 6,757,049.59

Total $7,698,834.92

THE LADD & TILTON BANK.

The bank founded by W. S. Ladd and C. E, Tilton continued as a partnership until 1908, when it was reorganized as a private corporation under the old name, and as such is now operated by the stockholders. The statement for September I, 1910, shows:

Resources.

Loans and discounts $ 6,096,288.38

Overdrafts 24,313.53

Bonds and stocks 4,744,131.46

Bank premises 75,000.00

Cash on hand and due from banks 3^903,637.89

Total $14,843,371.26

Liabilities.

Capital stock, fully paid $ 1,000,000.00

Surplus and undivided profits 670,111.92

Demand deposits $7,261,972.94

Time and savings deposits 5,911,286.40 13,173.259-34

Total $14,843,371.26

THE BANK OF CALIFORNIA.

The Portland branch of the Bank of CaHfornia is the successor of the Port- land branch of the London and San Francisco Bank. On February, 1905, the California Bank purchased the business on the Pacific coast of the London and San Francisco, in the cities of Portland, Seattle, Tacoma and San Francisco. William Mackintosh is the general manager of the business in these north Pa- cific branches, and William McRae is the manager of the Portland branch.

The following is the statement of the present bank at the close of business March 29, 1910:

Resources.

Loans and discounts $24,926,114.04

Bank premises (San Francisco and branches) 1,137,868.80

Customers' liability under letters of credit 1,416,821.21

Sundry bonds and stocks 4,660,620.47

United States bonds to secure circulation 4,113,898.62

Redemption fund with U. S. treasurer 114,500.00

Cash and sight exchange 1 1,999,125.73

$48,368,948.87 Liabilities.

Capital paid in gold coin $ 4,000,000.00

Surplus and undivided profits 11,300,436.91

Circulation 3,424,020.00

Acceptances under letters, of credit 1,518,214.24

Other liabilities 64,241.56

Deposits 28,062,036. 16

$48,368,948.87

CANADIAN BANK OF COMMERCE.

The Canadian Bank of Commerce is the successor of the Bank of British Columbia, which was the first foreign banking house opened in this city, being established here in July, 1864, and was always a popular and useful institution.

The Canadian Bank of Commerce opened for business in May, 1867, incor- porated in the Dominion of Canada with an authorized capital of $1,000,000. Afterward increased by successive steps to $15,000,000, of which $10,000,000 is paid up, while the reserve fund amounts to $5,000,000. At the present time (June, 1910) the total assets of this great institution are $147,446,957. De- posits, $118,907,871, and loans $103,524,587. The bank has 216 branches, to be found in every province in Canada, in the United States, in London, England, and in Mexico City.

In 1901, the Canadian Bank of Commerce amalgamated with the Bank of British Columbia, an English institution, with a capital of $3,000,000. The Bank of British Columbia opened a branch in Portland in the year 1864 under the management of Mr. E. Russell, later succeeded by Mr. Frederick Townsend, who is still living in Portland. This branch, upon the amalgamation has, since Janu- ary, 1901, transacted business under the name of The Canadian Bank of Com- merce. In 1864, and the years immediately following, the Bank of British Co- lumbia rendered very useful service to the community of Portland by making loans of considerable amounts to the school district pending the collection of taxes ; and as soon as wool raising became an important industry in the state, followed by salmon packing, and in 1870 by wheat raising, the branch took its share in financing the requirements of the exporters.

The present president of The Canadian Bank of Commerce is Byron E. Walker, LL. D., and the general manager Alexander Laird, both of whom are well known in the financial districts of New York and Chicag o. The present

manager of the Portland branch is F. C. Malpas, who first came to Portland in the year 1890, afterward proceeding in the services of the bank to British Co- lumbia, returning to Portland in 1907.

PORTLAND TRUST COMPANY OF OREGON.

This is the oldest trust company in Oregon, and was founded on April 22, 1887, by Benjamin I. Cohen, who died a few months ago. The original incor- porators of the company were Benjamin I. Cohen, Charles H. Woodward, Allen Noyes and William 'M. Gregory.

It was one of the banks that passed through the great panic of 1903 without closing its doors. And it is the only bank in town that has a lady superintendent of the woman's department of the bank. The present officers are: Henry L. Pittock, president; N. U. Carpenter, vice-president; A. S. Nichols, vice-presi- dent; B. Lee Paget, secretary; C. W. DeGraff, assistant secretary; G. W. Up- shaw, assistant secretary; Harriet E. Moorehouse, superintendent woman's de- partment. The following is the report at the close of business September i, 1910:

Resources.

Secured by real estate mortgages $378,053.80

Secured by stocks, bonds, etc 155,155.00

Secured by deeds of trust 1 19,793-38

Commercial paper, demand 39,675.00

Commercial paper, trust 238,392.88

Listed bonds 409,612.50

Other bonds 85,970.00

Overdrafts, secured and unsecured 646.06 $1,427,298.62

Banking house property (market value $225,000).... 160,000.00

Furniture and fixtures 11,000.00 171,000.00

Due from approved reserve agents 242,468.71

Exchanges for clearing house 35,048.22

Cash on hand 1 14,356.72 391,873.65

Total $1,990,172.27

Liabilities.

Capital stock paid in $ 300,000.00

Surplus fund 54,000.00

Undivided profits, less expenses and taxes paid 12,626.40

Individual deposits subject to check $993,970.17

Demand certificates of deposit 22,310.31

Time certificates of deposit 450,993.18

Certified checks 4,23 1 .41

Cashier's checks outstanding 8,407.17

Savings deposits 182,724.04

Liabilities other than those above stated ; individual

credits 20,909.59

Total deposits 1,623,545.87

Total $1,990,172.27

lumbermen's national bank.

The Lumbermen's National Bank of Portland, was organized as a state bank under the general incorporation laws of the state of Oregon, und er the name of

Bankers' and Lumbermen's Bank, by articles of association, jexecuted by D. C. Pelton, Robert T. Piatt and John A. Keating, as incorporators, which articles were filed in the office of the secretary of state of the state of Oregon, on the 6th day of April, 1906. The members of the first board of directors were: D. C. Pelton, F. H. Rothchild, Dr. K. A. J. Mackenzie, John A. Keating, Robert T. Piatt, Portland, Oregon ; Edward C. Mears, H. D. Story, Portland, Oregon ; and George C. Bingham, Salem, Oregon.

Lloyd J. Wentworth was elected a director June 5, 1906, and Charles S. Russell was elected a director September 4, 1906.

Bankers' and Lumbermen's Bank was converted into a national bank under the name of Lumbermen's National Bank, in June, 1908. The present officers of the bank are : President, G. K. Wentworth ; vice-president, John A. Keating ; cashier, H. D. Story. Statement of condition at close of business September i, 1910:

Resources.

Loans and discounts $2,150,444.46

Overdrafts 3,144.04

U. S. bonds to secure circulation 250,000.00

Other bbnds and premiums 203,022.03

Real estate 800.00

Furniture and fixtures 27,000.00

Customers' liabilities under letters of credit 437-8o

Due from U. S. treasury $ 12,500.00

Cash and due from banks 923,596.77 936,095.77

Total $3,570,943.90

Liabilities.

Capital $ 500,000.00

Surplus and undivided profits 58.842.40

Reserve for taxes 2,383.31

Circulation 250,000.00

Drafts accepted under letters of credit 437-6o

Dividends unpaid 78.00

Deposits 2,761,202.59

Total $3,570,943.90

GEO. W. BATES & CO., BANKERS.

Geo. W;. Bates & Co., Bankers, were incorporated April 14, 1894, by the fol- lowing, who were the incorporators and stockholders : Geo. W. Bates, William Bates, C. F. Swigert, Ida H. Gorrill and Lee HoflFman. The first board of di- rectors were: Geo. W. Bates, William Bates and C. F. Swigert. The capital stock was $50,000, and the first place of business was at the corner of Albina avenue and Russell street. In 1896 a new banking house was built at the corner of Russell and Borthwick streets, which since has been the permanent home for the office of Geo. W. Bates & Co., Bankers. On May 24, 1907, a branch of the original bank of Geo. W. Bates & Co., Bankers, was opened at Williams avenue and Knott street. On January 24, 1910, an office was opened on the west side in the Henry building at Fourth and Oak streets, which was and is at this time the main office of Geo. W. Bates & Co., Bankers. The offices at Williams avenue and Knott street and at Russell and Borthwick streets, are known as the Williams Avenue branch and as the Russell Street branch, re- spectively, of Geo. W. Bates & Co., Bankers.

Following is a statement of the condition of Geo. W. Bates & Co., Bankers, at the close of business on Friday, May 20, 1910:

Resources.

Loans and discounts $ 629,407.56

Bonds, securities, etc 53,500.00

Banking houses, furniture and fixtures 64,430.45

Cash in vault, and due from banks 458,716.22

Total Sr. 206,054.23

Liabilities.

Capital stock $ 1 50,000.00

Undivided profits 8,583.71

Deposits 1 ,047,470.52

Total $1 ,206,054.23

THE HIBERNIA SAVINGS BANK.

This bank was organized in 1898 for the special purpose of taking care of the financial interests of that large class of wage earners and business men suggested by its name. The founders of the bank were M. G. Munly, D. M. Dunne, John Kelly, Charles Malarkey, Mayor Mason, S. J. Gorman, P. Raleigh, James L Barron, William Sheehy, E. C. Goddard, D. M. Crowley and Andrew C. Smith. Crowley was the first president for one year, and Dr. Smith has been president ever since — for ten years. The other officers at present are : Frank E. Dooly, vice-president, and Lansing Stout, cashier. The bank has been well man- aged from the start, and has secured a good business. Its present condition is shown by the following statement made September i, 1910:

Resources.

Loans and discounts $1,159,470.51

Real estate, banking houses, furniture and fixtures 46,453.43

Bonds and securities 55'575-^2

U. S. government bonds, (at par) $ 50,000.00

Due from banks and exchange 291,186.56

Cash on hand 168,392.21 509,578.77

Total $1,771,077.83

Liabilities.

Capital stock $ 200,000.00

Surplus and undivided profits, less expenses and taxes paid 44,099.38

Savings and time deposits .$922,119.05

Demand deposits 604,859.40 i ,526,978.45

Total $1,171,077.83

THE SCANDINAVIAN-AMERICAN BANK.

The Scandinavian-American Bank was opened for business in Portland Jan- uary II, 1908, with the following ofliicers: C. F. Hendricksen, president; Sylvester Petersen, vice-president; Anthon Eckern, cashier.

Statement.

Loans and discounts $374,117.57

Bonds and securities 5,500.00

Furniture and fixtures 9,000.00

Cash and due from banks 159,680.87

Total $549,042.74

THE CITY OF PORTLAND x 527

Overdrafts 774-30

Capital stock 100,000.00

Undivided profits 7>33i-56

Deposits 441,711.18

Total $549,042.74

THE EQUITABLE SAVINGS & LOAN ASSOCIATION.

The year 1889 brought to Portland two men from Minneapolis, Minnesota, C. B. Wadleigh and F. McKercher, the former representing a farm implement concern, the latter secretary of the Pacific Coast Elevator Company.

The promising field for, as well as the urgent need of, an association that should promote and stimulate the virtue of saving on the part of wage-earners impressed them so deeply that on December 30, 1890, they organized the Oregon Building & Loan Association.

The first officers were: S. B. Willey, president; H. R. Lewis, vice-president; F. McKercher, secretary and C. B. Wadleigh, manager; and F. McKercher is the real founder of the association.

The growth of the association was phenomenal from its start, and in 1892 the secretary was compelled to give to the association his undivided time and attention. The manager was then transferred to Philadelphia that the money of the east might be brought into service in the development of a new land and to share in the better interest earnings of the great west. While this proved an ad- vantageous and most promising measure the association continued to develop at home both as to increase of membership and as a factor of home building.

When, after however, to the minds of the association's officers, it had passed all experimental stages of development, assumed most satisfactory proportions as to membership, assets and loans, and to their optimistic senses it stood upon the threshold of a greatness of service, — then came the crash of 1893.

Then began a long and painful period of liquidation, during which more than one-half of the membership withdrew and received their cash, (and many are the men and women who received it with tears, declaring that otherwise they were hopelessly stranded), much property taken over; much of which it carried for years, unable to sell, in many cases for a long time unable even to rent ; changes of officers, except its secretary, who like the captain of a sinking ship, seemed tied to the interests of an institution, which at such a time, passes beyond and above the realm of mere business and become sacred ; all the changes, too many and too painful to record, incident to the adjustment to new and trying condi- tions of an institution which held the earnings of the masses and sought to con- serve them through that heart breaking, soul stirring period of tempest and storm.

The spring of 1899 showed such a promising rift in the clouds that the asso- ciation was re-organized ; electing officers, all of whom retain their positions to this day, and none of whom except the secretary and assistant secretary, are on the salary list.

The association was enabled to pass through the recent panic of 1907 un- scathed, and with the exception of the suspension of loans for a period of four months, conducted its business on a moral basis ; the surprisingly few withdraw- als being promptly paid ; loans then in process of payment promptly financed ; able to meet every demand made upon it except for those limitations. Its present officers are : Theodore B. Wilcox, president ; F. McKercher, secretary ; M. M. Johnson, assistant secretary.

It has conserved and loaned the savings of over 18,500 wage-earners ; loaned on homes over $5,728,000.00, and thus assisted in building more than 5,250 American homes — those institutions so potent for patriotism and good citizen- ship, and has returned to investors more than $2,200,000.00. It now has :

Loans in force $2,230,000.00

Secured by homes worth over 5,500,000.00

And a reserve fund (guaranty against loss) 100,000.00

THE AMERICAN BANK AND TRUST COMPANY.

This is one of the newer banks, and although starting in a modest and un- pretentious way, has executed many important financial transactions resulting in the development of the resources of the state; and notably the financing of the Mt. Hood Railway. The founders of the bank were Samuel Connell, G. L. Mac- Gibbon, Charles W. Miller and G. W. Waterbury. Its present officers are Sam- uel Connell, president and G. L. MacGibbon, cashier.

The following statement shows its condition on September i, 1910:

Assets.

Loans and discounts $217,160.00

Stocks and securities 133,000.00

Real estate, furniture and fixtures 35,820.00

Cash and exchange 75,280.00

Total $461,260.00

Liabilities.

Capital stock 150,000.00

Surplus and undivided profits 28,450.00

Deposits 282,810.00

Total $461,260.00

THE HARTMAN & THOMPSON BANK.

This is a private partnership bank formed by J. L. Hartman and E. T. Thomp- son in the year 1906. Both men have had large experience in banking, brok- erage, real estate and other financial undertakings and are regarded as energetic business men.

The following shows the condition of their bank on September i, 1910:

Resources.

Loans and discounts $140,289.18

Stocks and bonds 115,132.00

Real estate 21,400.75

Furniture and fixtures 8,620.00

Cash on hand and due from banks 123,369.73

Total $408,811.66

Liabilities.

Capital $100,000.00

Surplus and undivided profits 28,135.21

Deposits 280,676.45

$408,811.66

THE OREGON MORTGAGE COMPANY

This company, through its manager, Robert Livingston, contributes the following :

The pioneer in the investment of foreign capital in real estate mortgages in Oregon, is William Reid. He came to Portland from Dundee, Sco tland, in the

year 1875. He came as the agent for a Dundee investment company known as the Oregon & Washington Mortgage Savings Bank. That was merged later into a company known as the Dundee Mortgage Company, which was finally merged into the Alliance Trust Company, Limited, now represented here by Mr. William MacMaster.

William Reid also succeeded in getting his friends in Scotland to finance the Oregonian Railway Company, Limited, which built the railway known as the Narrow Gauge Line, with its terminus in Portland at the foot of Jefferson street. This is now part of the Southern Pacific system.

Mr. Reid's connection with the Dundee company terminated in 1882, but he informed other people in Scotland of the merits of Oregon as a field for invest- ment, and The Oregon Mortgage Company Limited was formed in Edinburgh, in 1883, with Mr. Reid as its Oregon representative. His connection with this company ceased two years later, when Robert Livingston became the resident agent of the company in Portland.

Other financial companies, with headquarters in Scotland and England, have done business here for many years. Some are represented by Messrs. Balfour, Guthrie & Co., of Portland, and some by Mr. Wm. MacMaster, and some by myself. The amount of capital brought to the northwest through these agencies has been large and has been an important factor in the development of the country.

P. S. The author of this book can add to the above statement of Mr. Liv- ingston, that when William Reid came to Oregon, money commanded twelve to fifteen per cent on mortgage loans ; and that the work of Reid in inducing foreign capitalists to lend money on Oregon farm security reduced the rate of interest to ten per cent.

THE EAST SIDE BANK.

The East Side Bank of Portland is the successor of the First National Bank of East Portland. The First National Bank of East Portland was established on the east side of the river in 1878, by the Breyman's & Sommerville ; and retired as a National Bank in 1895. The East Side Bank of Portland took over their, business November i, 1895, and have conducted a successful and growing busi- ness since that date. For the first ten years it was conducted by H. H. Newhall as a private bank. When the state banking law took effect in 1906, the bank was incorporated. The directors are H. H. Newhall, L. Newhall, and Roger Newhall.

The bank is established in its own building on Grand avenue and East Wash- ington street, Portland, Oregon, with a capital of $50,000 and surplus $15,000. Deposits $400,000. It is known as a safe and conservative institution, and is owned and conducted entirely by the Newhalls.

Statement as close of business, March 29, 1910: •

Loans and discounts $185,417.16

Overdrafts, secured and unsecured 46.36

Municipal bonds 20,000.00

Banking house 25,000.00

Furniture and fixtures 1,400.00

Due from banks (not reserve banks) $ 69,205.52

Due from approved reserve banks 112,023.53

Exchanges for clearing house 4,521.77

Cash on hand 28,442.64 214,193.46

$446,056.62 Liabilities.

Capital stock paid in $ 50,000.00

Surplus fund $ 5,000.00

Undivided profits, less expenses and taxes paid 7,17 2.91 12,172.91

Individual deposits subject to check 319,481.24

Demand certificates of deposit 36,420.21

Time certificates of deposit 27,982.62

$446,056.62

THE CITIZENS BANK.

There is another bank on the east side known as the Citizens Bank, organized August 8, 1890, by J. H. Lambert, Cyrus Buckman, A. W. Lambert, W. W. Thayer, and E. M. Sargent. It furnishes no statement of its affairs, and the character and extent of its business is unknown.

THE PENINSULA BANK.

The Peninsula Bank of St. Johns is the pioneer bank of that city, and of the large region known as "The Peninsula." It was established in 1905 with a capital of $25,000, which was increased to $50,000 in 1910. Many of the stockholders are interested in the lumber and timber interests of Oregon, although residents of Michigan ; and this bank has been instrumental in bringing a large amount of capital to Oregon and investing it at St. Johns, and other points giving employ- ment to large numbers of people. During the financial trouble of 1907 the bank carried itself and patrons through without closing its doors, without outside trouble, without "clearing house scrip," and without calling a loan. The officers are, J. W. Fordney, president ; R. T. Piatt, vice-president, and C. A. Wood, cashier.

Statements of condition of bank at close of business April i, 1910:

Loans and discounts running for over 90 days $ 24,601.69

Loans and discounts running for 30 to 90 days 54,546.41

Loans and discounts convertible into cash on demand 106,724.08

Furniture and fixtures 3,036.45

Cash on hand and due from banks 59470-53

Total resources $248,379. 16

Liabilities.

Capital stock fully paid up $ 50,000.00

Surplus fund and undivided profits less all interest, expenses and taxes

paid 7,209.69

Deposits 191,169.47

Total liabilities $248,379.16

THE FIRST NATIONAL BANK OF ST. JOHNS.

The charter for the First National Bank of St. Johns, was granted on Feb- ruary 28, 1908, same being No. 9,047.

The bank opened on March 9, 1908, with capital at $25,000.00.

First board of directors was as follows: Henry W. Coe, Charles W, Sher- man, Robert M. Tuttle, Willard S. Hauser, Frank P. Drinker.

We present herewith a condensed report of its financial standing at this date, May 25, 1910:

Assets.

Loans and discounts $126,150.36

U. S. bonds 25,875.00

F, & F 3,940.00

Cash and due from correspondents 48,773.26

Total $204,738.62

Liabilities.

Capital $ 25,000.00

Undivided profits 3,644.18

Credit letters 25,000.00

Deposits 151 ,094.44

Total $204,738.62

The present officers of the bank are as follows : Henry W. Coe, president ; A, R. Jobes, vice-president; F. P. Drinker, cashier.

BANK OF SELLWOOD.

This bank was incorporated December 26, 1907; Peter Hume, J. M. Nickum, Theo. Wolf, J. W. Campbell and D. M. Donough, being the incorporators. The present officers are: Peter Hume, president; D. M. Donough, vice-president; H. W. Tichnor, cashier; and Alice Hume, assistant cashier.

Statement of condition of its business on May 18, 1910:

Liabilities.

Capital stock $ 30,000.00

Surplus fund 660.00

Savings deposits 24,265.20

Due on certificates 26,785.59

Demand deposits 94,031.05

Certified checks 1,300.00

Interest, rents, etc., less expenses paid 1,009.34

Total $178,051.18

Resources.

Cash and in banks $ 50,078.69

Bonds 6,164.87

Loans and discounts 102,499.53

Real estate, (bank bldg.) 16,924.79

Furniture and fixtures 2,312.68

Overdrafts 70.62

Total $178,051.18

LIFE INSURANCE ASSOCIATIONS.

• Life insurance developed and worked out on definite principles, in England and Holland, is several hundred years old. But nowhere in the world has it be- come so popular as in the United States ; and here it has taken on in many in- stances the character of a speculative proposition. Vast sums have been gathered in from the confidence and desire of worthy people, to provide for those depend- ent on their lives and earning capacity, and diverted from their proper uses.

The rude shock that was given to millions of confiding policy-holders and their legatees by the exposures of the dishonesty and selfish scheming of the managers of the great life insurance companies in New York in the year 1905, most thor- oughly exposed the dishonest and selfish managers* and vindicated the honest men in t he business.

Acting upon the effects of that exposure, new companies were speedily or- ganized all over the United States, which at once became competitors for the very profitable business of the reckless schemers, that had been exposed. It is stated that as many as one hundred and fifty of these new companies were or- ganized in the United States within four years after the exposures referred to. Among these new companies are two here in Portland, Oregon, organized about the same time; and both projected and managed by responsible and trustworthy men. The Oregon Life was incorporated February 21, 1906.

From the fourth annual report dated March i, 1910, is taken the following statement of the current business and condition of the Oregon Life.

"On December 31, 1909, the paid for business on our books after deducting all cancellations, was $3,266,949.00, a gain over the year previous of $1,004,- 582.00. Upon the same date our assets had increased to $220,132.00; our surplus to policy holders had increased to $116,537.00, and our premium income for the year had increased to $118,303.00. Oregon Life has thus shown a healthy growth in every department, which must be gratifying alike to the guarantors, (stock- holders) to the large body of policy-holders, who are the main beneficiaries by the company's prosperity, and also to those who have made the result possible — our energetic agency force. From all these sources has come the strength which enabled the Oregon Life in 1909 to do a larger business in Oregon, than any other life insurance company, notwithstanding the fact that Oregon Life writes no risk greater than $10,000 on one life."

The officers of the compay are: A. L. Mills, president; A. Wolf, vice-presi- dent; Geo. Sanford Smith, secretary; C. F. Adams, treasurer; A. J. Giesy, M. D. medical director; D. E. Galbraith, actuary; L. Samuel, general manager.

The articles of incorporation fix the capital stock at 100 shares of $1,000 each; on which is to be paid from the business of the company, 7 per cent, per annum as dividends, and no more ; and at any time after five years from the first day of March, 1906, the holders of the policies of insurance, issued by this company, and then in force and outstanding, shall, whenever it is determined so to do by the holders of a majority in amount of the policies of insurance issued by the company and then in force and outstanding, have the right to purchase, take over, hold and own for the benefit of the policy-holders of the company, all of the shares of the capital stock of this corporation ; and each and every person at any time acquiring, holding or owning shares, of its capital stock, subscribes for, takes, ac- cepts, receives and holds the same on the condition that the same may be so pur- chased, acquired and taken over for the benefit of the policy-holders of the com- pany, and consents and agrees that the policy-holders may so purchase, acquire, and take over the capital stock. Should the laws of the state of Oregon so permit all of the capital stock of this corporation may at any time after five years from the first day of March, 1906, be retired, cancelled and redeemed by the company by paying to each holder of shares thereof, the par value of his share with in- terest thereon at the rate of 7 per centum per annum from the first day of March, 1906, until redeemed, less the amount of all dividends paid thereon by the com- pany, so that this corporation shall have no capital stock, but shall be a purely mutual company, composed of its policy-holders, and in that event the manage- ment and control of the company shall thereupon become vested and thereafter belong exclusively to and be exercised by its policy-holders and such officers and agents as may be elected and appointed by them."

THE COLUMBIA LIFE AND TRUST COMPANY.

About the same date with the Oregon Life, was organized also the Columbia Life and Trust Company of Portland, Oregon. In their announcement the offi- cers of the company state their object to be the formation of an organization that would furnish life insurance to our citizens on terms which would enable them to buy, in the Pacific northwest, better life insurance than it is possible to obtain

elsewhere. Two conditions peculiar to this region make this possible. First : In this new and developing country the opportunities for investment are such it is possible to obtain on invested funds, better rates of interest on perfectly safe mortgage loans, and with securities increasing in value. Second : It is a well- established fact that the number of deaths per thousand inhabitants in the Pacific northwest is less than in any other region of the United States.

State of the Columbia Life and Trust Company for the year 1909:

Premiums received $ 62,713.79

Interest received i3'655-27

Increase of capital stock 100,000.00

Total $176,369.06

Disbursements, ipop.

Death claims $ 4,000.00

Other payments to policy-holders 2,470.91

Agency expenses (commissions, etc.) 23,416.11

Medical examinations 3.043-io

Salaries of officers and office employees 7y37^-43

Legal taxes 2,732.36

All other disbursements (rent, printing, advertising, stationery, pos- tage, furniture, etc.) 10,502.05

Total disbursements $53,542.96

Assets.

First mortgage loans $147,945.51

Municipal bonds 21,019.70

Cash on hand and in bank 118,441.60

Loans on collateral 7-538-30

Other admitted assets 3,942.32

Total admitted assets $298,887.43

Liabilities.

Legal reserve on policies $ 56,391.34

All other liabilities 697.28

Capital stock 200,000.00

Unassigned funds 41,798.81

Total $298,887.43

New insurance written in 1909 $1,349,631.80

Insurance in force December 31, 1909 $2,435,231.80

The Columbia Life & Trust Company issues only non-participating insurance. Everything in this company's policies is guaranteed. There can be no disappoint- ment among the policy-holders.

It not being the object of this record to criticise plans, but to state the facts of history, it can be freely stated that both of these life insurance companies have been successful from the start. Having wisely taken advantage of the errors of their predecessors in other parts of the country, and also availed themselves of the manifest advantages of investing capital in Oregon, where all the forces and activities of nature, as well as the energies of man, combine to produce profit on the investment of money, it required only good business management and common honesty to make life insurance not only an eminently successful invest- ment, but one most highly to be commended.

And both of these home life insurance companies wisely chose to place the management in the hands of men who were not only known to have had ex- tended and successful experience in life insurance in Oregon, but who were also possessed of that business standing and upright character that guaranteed honest administration and fair dealing to all. Mr. L. Samuel, the general manager of the Oregon Life, had been the trusted and successful manager of the Oregon and northwest business of one of the largest New York life insurance companies for more than twenty years. While Mr. S. P. Lockwood, the general manager of the Columbia Life had held a similar agency for the Northwestern Life Insurance Company of Milwaukie, one of the most popular companies that had been largely investing its capital in loans in this city, also for a period of about twenty years.

Believing that the time was ripe and the field ready to be occupied, and that Oregon men and Oregon capital could combine in the establishment of an Ore- gon fire insurance company, the Pacific States Fire Insurance Company, was or- ganized May, 1910. It has its headquarters in Portland. Its officers are: F. E. Beach, president; E. G. Jones, vice-president; F. I. Fuller, second vice-president; A. H. Averill, third vice-president; William M. Cake, attorney.

Executive board — F. E. Beach, E. G. Jones, F. I. Fuller, A. H. Averill, L. G. Clarke, Dr. A. E. Rockey, Judge William M. Cake.

The enterprise is receiving much local encouragement. There is no apparent reason why a financially-sound fire insurance company made up of local men and well backed by local capital should not be a success.

THE FINANCIAL SITUATION OF PORTLAND.

The financial situation of Portland this ist day of October, 1910, is ex- ceedingly encouraging to every business man in the city. Summed up by the latest report of State Bank Examiner, it shows that the 151 state banks and 75 National banks for which statistics are presented have total deposits of more than $115,000,000, with general resources in excess of $124,000,000. The con- servative policy of Oregon banks is reflected in a loan item which aggregates $71,000,000, or but little more than half the deposits, although there was an increase of nearly $4,000,000 in the two months ending June 30. In the same period there was an increase of about $1,200,000 in deposits.

An encouraging feature of the report is a heavy increase in the amount of deposits in savings banks. These deposits now aggregate nearly $12,000,000. And of this amount $842,000 has been added within the past two months. To a much greater extent than commercial deposits, these savings deposits reflect the thrift and prosperity of the people. Commercial deposits are increased at times by large amounts of cash which have been brought in for use in handling big land deals, or financing industrial undertakings, but the savings deposits represent all that their names signify. They are the most certain and reliable financial barometers. This heavy increase in the tangible wealth of the state, as repre- sented by actual cash, is an excellent testimonial to the character of immigration which Oregon has been receiving. It corroborates the news reports that have been drifting in from all parts of the state telling of real estate and industrial transactions in which newcomers have invested heavily in Oregon property and have paid the cash for it.

Timber has been one of the principal staples which has drawn eastern money to the state. While the individual transactions in this class have been greater than in any other line, it is in farm and orchard lands that the aggregate new invest- ments have been the largest. Meanwhile the wool clip has brought about $3,000,- . 000 into the state. The salmon will bring in another $3,000,000, possibly more.

The lumber sales for the year will run above $10,000,000, and the grain crop will reach $20,000,000.

New York and London buyers are already in the state buying the 1910 crop of Oregon matchless apples and there are many other good products that will be turned into cash before Qiristmas. The east may tremble over possible finan- cial stringencies, but, so long as Oregon has such large quantities of staple prod- ucts to sell our banks will be kept reasonably full of money.