Dane County WI Archives History - Books .....Chapter VIII Merchants And Bankers 1877 ************************************************ Copyright. All rights reserved. http://www.usgwarchives.net/copyright.htm http://www.usgwarchives.net/wi/wifiles.htm ************************************************ File contributed for use in USGenWeb Archives by: Joy Fisher sdgenweb@yahoo.com April 25, 2006, 11:26 pm Book Title: Madison, Dane County And Surrounding Towns... CHAPTER IX. [SIC] MERCHANTS AND BANKERS. GREAT changes have come since Madison was settled by four housekeepers, who procured supplies from the peddler's cart and the post office store. There were bright fellows in the settlement, but they dispensed with much that we deem essential. Tom Jackson, the Scotchman, whose whip-saw cut lumber for the capitol, before Wheeler was ready, was almost a manufactory. Tom illustrated the possibility of doing without indispensables, but not as they do in some parts of Scotland. His old log house was on fire, and the last glass had dulled his wits. Tumbling out of bed, Tom, who was called Jack for brevity, pushed his lower limbs through the sleeves of his jacket, and with many an adjective declared that "some fellow had cut off the legs of his pantaloons." The better appliances of life were more remote than the seedy unmentionables of Tom Jackson. Everything was in the rough. The park was the forest primeval. Prairie fires annually crossed from marsh to marsh. Game was abundant. Prairie chickens and quail were shot in the village, where bears, wolves and deer were not strangers. Many years later Col. Bird's hotel stood in an unbroken forest, and trees that now ornament the park were planted at the instance of Judge Knapp, who risked having to pay for the improvements. The woods abounded with game, and deer were particularly plentiful until 1849, when the Winnebagoes killed 500 near the Asylum. They would have cleared the country, but the settlers interfered. The supply was important, when any man might depend on his skill for a dinner. The commissioners' store was not the pioneer. Simeon Mills was deputy postmaster and storekeeper before July, 1837. Mr. Catlin, his partner, says that barrels of salt and flour, hauled from Galena, were then worth $30 and $20 each. "Wild cat currency" was the circulating medium, and the notes of Judge Doty were at a premium. The legislature, during the session of 1838-9, passed a "stay law" against recovering debts. The predominant sentiment of the community was hatred of banks. 'Squire Seymour says that in 1839 there were two stores, three groceries, a steam mill, three public houses, and in all thirty-five buildings. Dr. Chapman mentions, in 1846, Shields & Sneden, Finch & Blanchard, and E. B. Dean & Co., as the storekeepers of the village. Fairchild's store came next. The population had increased from 62 to 283. The doctor was told there were 400 inhabitants, but many farmers were looked on as village residents. Messersmith's house, on Pinckney street, was in full blast, with a "wet grocery" down stairs and "the tiger" above. The first help to Madison was the location of the capitol. The next, the arrival of Mr. Farwell, who invested money and energies in permanent improvements. His fortune was not large, and part was invested elsewhere, but he brought the reputation of wealth, and turned it to excellent account. He systematically made known the beauties and excellences of the locality, and induced others to invest. His coming gave an impetus, labor acquired value, real estate changed hands, roads were opened and cleared; the press all over the union had paragraphs about Madison. We were no longer out of the world. The marks left by Farwell can be seen in our growth. Until the capital was permanently located there was little progress. Lobbyists hoped that another site would be chosen when the constitution was adopted, and Milwaukee wooed the legislature. Fixity of tenure could alone justify expenditure on property. Hence the slowness observable in every branch of enterprise. That period of doubt had passed when Mr. Farwell came and invested in real estate in 1848. The business advantages and beauty of Madison were his constant themes, and he spared no expense in giving them publicity. Remunerative works on a large scale were undertaken. Mendota was dammed at its outlet, increasing the fall two feet, and Monona, lowered by the removal of an old obstruction, made a further improvement. Farwell became more beneficially associated with the growth of Madison than any of its pioneers. The inexhaustible reservoir, thus turned to account for industrial enterprise, created a demand for workmen. The lakes unfolded a promise of wealth. When H. A. Tenney came, he was introduced by J. A. Noonan to all the celebrities in a few minutes. The little coterie in 1845 numbered few besides Governor Dodge, Secretary Floyd, Judges Dunn, Irvin and Miller, George P. Delaplaine and Mr. Mills. Manufactures and enterprise changed the aspect of society. Until Mr Farwell came, the place had never been thought worthy of a circus. When that distinction was attained the legislature adjourned to see the show. The villagers had depended on each other for amusements, but there had been ample leisure. Improvements were made rapidly, and golden visions were common. The circuitous Yahara was superseded by a straight canal. At the outlet of Mendota a long building contained a saw and grist mill. Tibbits and Gordon built their brewery below the mill, and the court house was commenced in 1849. The old jail, once let as a shoemakers' shop, no longer met the wants of the community. Farwell started his grist and flouring mill in 1850, and opened two roads across the Yahara. The first dormitory at the university was erected in 1850, in a thicket remote from the village, hardly approachable. Prominent citizens began more beautiful homes and other improvements. Men became speculative. Ditching, planking and planting Washington Avenue, by Mr. Farwell, was an act that found no competitors, but in other ways his conduct provoked a spirit of emulation. The years 1851-2 were prolific in the erection of business blocks. Public bouses were found inadequate and the Capital House was commenced by associated effort. Messrs. Vilas, Fairchild and Farwell bought the venture in 1853, and the hotel was completed before the fall. Madison was a paradise for builders. The best positions were rapidly occupied for business. The Presbyterian church was finished, the foundations of the Catholic church laid, and the Milwaukee and Mississippi railroad company commenced building their depot in a growth of coppice wood on the spot occupied by the successors of that company. Early in 1854 the depot was ready, the bridge constructed and the first train of passenger cars arrived. The celebration took place on Tuesday, May 23, 1854. That was a great day for Madison and the surrounding country. Other works were undertaken during the year, including a fire-proof structure for the safe keeping of the state registry, a new bridge across the Yahara, a brick church for the Baptists, the second dormitory of the university, the extension of Washington Avenue, specially due to the liberality of Ex-Governor Farwell, and the commencement of the asylum for the insane. Men assumed that there would be a population of ten thousand here within two years. There was a woolen factory, a flouring mill, a grist mill, two saw mills, an oil mill, a mill for sawing stone, foundry and machine shops, two steam planing mills, besides other extensive undertakings, three daily papers and five weeklies, and a sale of more than $500,000 worth of produce during 1854-5. Seymour's Madison Directory, in 1855, gave excellent grounds for anticipating rapid growth. The population was nearly seven thousand. Ex-Governor Farwell was offering desirable lots, with credit, extending ten years if required, provided that purchasers should occupy and improve. Telegraph lines connected Madison with the whole circle of civilization. Goods could be purchased at little advance on the charges in any metropolitan city, and some storekeepers said much cheaper. The American Express Company had an office, the Madison Mutual Ins. Co. had entered upon its successful career, and other companies had opened agencies. The State Agricultural Society had rooms in Bruen's Block, and there was every facility for coming into the world with the aid of science, remaining, with all the graces that art and dry goods could afford, and at the last being undertaken for, in a style replete with grace and finish, so that the end crowned the work. There were banks, a water cure, and it is difficult to imagine a want which Madison had not appliances for immediately satisfying. Over three hundred and fifty houses were built in 1854. The Madison Hydraulic Company, to supply water from Lake Mendota, was a failure; there was a difficulty in procuring capital. The Gas Company seemed to be in danger, but the secretary, B. E. Hopkins, leased the works, and made the enterprise a success. In the same year, Ex-Governor Farwell commenced the residence, which was purchased as a "Hospital for wounded Soldiers," next occupied by the "Soldiers' Orphans," then given to the State University, and since sold to be used as a Theological Seminary and College, by the Norwegians. Rapidly as the building mania spread, every new comer was forced to build, if his means would permit, so continuous was the demand. Trade prospects grew more encouraging, school houses were required, and churches well sustained. Madison became a city on the fourth of March, 1856, and Colonel Fairchild was its first mayor. The necessity for school houses was recognized by the city council, and $24,000 appropriated to erect schools. The City Hall was commenced in 1857, and the main building of the University was awarded to contractors, to be finished before November, 1858. The log house erected for Eben Peck was saved from falling by being torn down, after twenty years' service. About the same time, as if the old "tavern stand" must be identified with the capital, there was a new proposition to remove. The capitol was dilapidated, and rivals said that as a new structure must be raised, the time was favorable for a transfer. The city authorities met the difficulty by donating $50,000 in bonds, towards erecting the present edifice. That settled the question. While affairs were thus progressing, came the financial crisis of 1857. The crash was disastrous to Madison. Milwaukee availed itself of the confusion, to renew the attempt to remove the seat of government. Upon the third reading of the bill, there was a tie vote; but by an adroit movement, the measure was killed for the session; delay, meant death. Many associations of public value date from this time, among which, we note: "The Capitol Hook and Ladder Company, "No. 1;" "Mendota Fire Engine Company, No. 1;" "Madison Engine Company, No. 2;" the "Governor's Guards;" the "Madison Guards;" and the "Dane Cavalry." Already, the excitement arising from the troubles in Kansas, was producing an effect in military and other organizations. The postoffice had long been established, and well served, but railroads had given greater completeness. Pioneers remember when the nearest postoffice was at the City of the Four Lakes, from which village there was a road partly cleared to Fort Winnebago. When John Catlin and his deputy got into working order, things were better. Darwin Clark remembers the mail for the village being brought in a handkerchief. Newspapers increased the bulk, but for some months there was only an occasional copy of the Cooperstown Freeman's Journal, which had a wonderful circulation from hand to hand. There would have been more newspapers, as there were few books, and whisky drinking was not universal; but there was a strike among the hands. The men that came with Colonel Bird signed articles, with the understanding that their pay, $2.25 per day, would commence with the journey, but a proviso, that if they left within three months, there were to be deductions. The transit from Milwaukee commencing on Wednesday, ended eleven days later, on Saturday, so that there would be a large drawback on every man's pay, if he should quit the work prematurely. The trouble arose on the questions that still agitate the Union — paper money and resumption. The commissioners were said to have been paid the amount of the congressional vote, in specie, which they had deposited in the bank at Green Bay, the bills of which establishment were used for wages. The notes could be used with little loss in the territory, but every removal cost a "shave" of from ten to fifteen per cent., and even then the exchange might be made in "wild cat" paper, that would speedily lose all value. Hence the workmen demanded specie payments, and the commissioners deferred that operation. Many would have left at once, but for the three months' proviso. A large proportion did leave as soon as that time had expired. There was little difficulty in supplying their places. There was not much employment in Wisconsin. Several strikes occurred. The stone cutters, at Stone Quarry Point, now McBride's, combined to get higher wages. The prices charged for everything were enormous, and there was little margin, unless men limited themselves to bare necessaries. A man could get board for $5.00 per week, and lodge in the dormitory near the east gate of the park — the club house, sleeping apartment and literary assembly. But as soon as ambition suggested the desirability of personal adornment, or outlay for any other purpose, money took wings. Would the workman build a log house to prepare for matrimony? The barrier was not only that better halves were scarce and that the cost of calico was prodigious. Pinneo and Butterfield would have their own price for shingles, and the customer must wait until there was no whisky to be had on credit. Nails cost three shillings per pound; the brownest of brown sugar fetched a like price; a pound of sperm candles cost one dollar, and every article was proportionately dear. No wonder men struck for higher wages. Speaking of prices, we may revert to the charges preferred against the old commissioners and their contractor-partner, "Uncle Jim" Morrison. The amount of the two votes from congress — not from the territorial legislature, for that body had no money to appropriate—was $40,000; and when the territorial authorities brought suit against Morrison, it was proved by measurements and vouchers that the basement alone cost $13,000. Moses M. Strong was the attorney for the territory, and Mr. Fields conducted the case for Morrison, so that there was no lack of zeal or ability on the side of the government, but the action was a failure. When the population had settled down to industrial pursuits, upon the return of the citizen soldiers, a directory was published, in 1866, by B. W. Suckow. John Y. Smith was the historian. Many prominent business men, in the record of 1855, did not survive the crash of 1857. Those who had invested in real estate, found that item the least real among their assets. Ex-Gov. Farwell had specially devoted himself to that branch. It would be an endless task to name the failures, therefore one instance may suffice for many. Tibbits and Gordon, a short time before the crisis, could have realized $60,000 beyond paying every cent; and when the storm burst, so hopeless was every effort, they could not pay fifty cents on the dollar. Gov. Farwell's ruin called forth much sympathy. He had built up the community, spending his own money in a liberal spirit and inducing others to invest. Men thrown out of their customary labor could remember the generous employer who had given work to hundreds. A policy less open handed might have enabled him to tide over the panic, but the village would have been much slower in becoming a city. The crisis destroyed the value of real estate, closed up stores, factories, workshops and offices, threw men out of their gainful avocations, and brought gaunt famine near to many doors which had been fondly thought secure from its dread approach. After the crisis, some mills were resumed, and in 1866, the manufactories of the city included the flouring mill built by the ex-governor, owned by Mr. Briggs; a woolen factory, the steam flouring mill of Manning and Merrill, and the iron foundry commenced by E. W. Skinner in 1851, on the corner of State and Gorham streets, sold in succession to W. S. Huntington in 1859, and to Andrews & Co. in 1864. The foundry of E. W. Skinner & Co. occupied the building raised by Gorham for a steam saw mill. The mill changed hands, and was made into a foundry by I. E. Brown. P. H. Turner bought the property in 1859, when the country was recovering from the crash, and Mr. Skinner became the proprietor, adding to his firm O. S. Willey and S. D. Hastings. That establishment, in 1865-'6, employed fifty men, besides canvassers all over the northwest. Beginning with one sorghum mill in 1861, it extended its operations to eleven in 1862, one hundred in the following year, and in 1865 more than five hundred. The Cap ital Iron Works, owned by J. E. Baker and operated by Mr. Stillman, had been entered upon in 1865 There were, besides, two planing mills, three cabinet ware manufactories, and great hopes that the peat beds would become factors of immense prosperity. The Agricultural Society, a young institution when Mr. Seymour published his directory, had grown strong, and the old rooms were to be given up for the better location in the capitol. The patriotism of the society in vacating its grounds for military use rendered it impossible to hold exhibitions from 1861 to 1863; but in September, 1864, Camp Randall having well nigh completed its military avocation, was available for the arts of peace. The value of the institution is beyond praise. It has stimulated agricultural and inventive industry and skill, largely to the advantage of our city and state. Abraham Lincoln, then not dreaming of the presidency, honored the society on one occasion by delivering the annual address. Other orators, well worthy of being particularized, are omitted for want of space. The State Hospital for the Insane was commenced under an act passed by the legislature when Gov. Barstow was in office, in 1854, but in consequence of a misunderstanding, the contractor, Andrew Proudfit, did not proceed. There was no blame attaching to him, and he recovered damages. Two years later the scheme was revived, but the original name of Lunatic Asylum was changed to the title now in use. The contractor, in 1857, was compelled to abandon the enterprise, but the building was made ready in 1860. Col. S. V. Shipman was the architect; additions were made in 1861. Dr. Clement was medical superintendent in 1860, and Dr. Favill assistant. In 1864, Dr. Van Norstrand became medical superintendent, and Dr. Sawyer assistant. There was no change in the office of matron, which continues to be filled by Mrs. H. C. Halliday. The fact that the capitol graces Madison is due to the business tact of the citizens. The grant of $50,000 in city bonds has been mentioned. The east wing was undertaken in 1857, and the legislature occupied the building in 1859. The west wing was commenced in 1861, amid the discouragements and financial pressure incident to civil war, and that wing was finished in 1863. The north wing, the south wing, and the rotunda followed in the order named, the dome being completed before the commencement of this decade. The material is not so good as the beauty of the structure demanded, but the commissioners did the best possible under the circumstances. The internal finish is admirable, and the conveniences afforded for the several departments are all that can be desired. Few persons visit Madison without mounting the wide iron stairs that lead from the upper floor to the second, in which are found the chambers of the senate and assembly, the supreme court, the state library, and the still more attractive collections of the state historical society. The State Bank, on Pinckney st., between Tenney's and Bruen's blocks, was opened in January, 1853, with a capital of $50,000, under the direction of President Samuel Marshall and Cashier J. A. Ellis. The Bank of the West began on the second floor of Bruen's Block, in March, 1854, with a capital of $100,000, and the officers were Samuel A. Lowe, President, and Wm. L. Hinsdale, Cashier. The Dane County Bank, in the same block, began its operations in October, with a capital of $50,000, the officers being Levi B. Vilas, President, Leonard J. Farwell, Vice President, and N. B. Van Slyke, Cashier. There was, in addition, in 1855, a bank of discount and brokerage on Morris street, of which J. M. Dickinson was manager and owner. Catlin, Williamson & Barwise advertised as bankers and land agents, dating their establishment from 1836, just a little before Madison came into existence. The Merchants Bank of Madison was organized in 1856, and commenced business in July. A. A. Bliss, of Ohio, and C. T. Flowers were president and cashier. The Wisconsin Bank of Madison, with M. D. Miller, President, and Noah Lee, Cashier, was also organized in 1856. The Bank of Madison began in April, 1860, with a capital of $25,000. The president was Simeon Mills, and the cashier, J. L. Hill. The First National started into vigorous existence in December, 1863. The board of directors consisted of L. B. Vilas, S. D. Hastings, N. B. Van Slyke, George A. Mason and Timothy Brown. The directory of 1866 only showed four banks in operation: The Farmers' Bank, the First National, the Madison, and the State Bank. Many of the leaders had entered into new combinations; some had disappeared altogether; N. B. Van Slyke had become president of the First National. The State Bank retained its first president, but procured a new cashier, L. S. Hanks, who still remains. The Farmers' Bank had offices next door west of the State Bank, and J. H. Slavan was its cashier. Brainard's city directory for 1875 showed a total of five banks, comprising in addition to two of the four last named, the German Bank, on King street, near Main, the Park Savings Bank, and the State Savings Institution, the last of which has since ended in disaster. The Bank of Madison failed for a considerable amount. The loss fell heavily upon all classes because of the faith reposed in the financial strength of some few names. The banks now operating in the city are, The First National, with a capital of $150,000; the president, N. B. Van Slyke, deserves mention for the care with which he has presided over the finances of the State University; The State Bank, with President Marshall and Cashier L. S. Hanks; The German Bank of J. J. Suhr, on King street, and The Park Savings Bank, which commenced in November, 1871, and has transacted a business quite as large as circumstances warranted the proprietary in anticipating. Capital, $50,000. The president is Dr. J. B. Bowen, and the cashier, Dr. Jas. E. Baker, the offices being at the corner of Washington avenue and Pinckney street, in a handsome block, the property of Dr. Baker. The time in which banks were dreaded by the poorer class and distrusted by the leaders of public opinion has, we may hope, passed for ever. Failures are inevitable; misfortune will overtake individuals; but the banker per se is one of the most useful citizens. He is the medium by which wealth, which would otherwise be wastefully hoarded, can be brought from its hiding places to multiply the riches of a nation. The post-office, once a small log house, is now one of our handsomest buildings. The United States courts are held in the same elegant structure, on the third floor. Business keeps pace with increased accommodation. There are 2,400 boxes in the post-office. The offices of the United States marshal; the assessor and collector of internal revenue; the pension agent; as well as those of the clerks of courts, the judges and the postmaster, are conveniently grouped under one roof. The structure forms one of our, illustrations. Postmaster E. W. Keyes has marked individuality. For eight years he has served as chairman of the Republican State Central Committee with such good fortune, that, when recently assailed, his vindication was welcomed by men of every class. Upon his return from Washington, his welcome home was an ovation in which judges and others, dissevered from him in political life, bore a conspicuous share. Mr. Keyes studied law under George B. Smith, and is a member of one of our most respected legal firms. His father was a pioneer of note in the early days of Wisconsin. Madison must feel pleased that the executive ability of the party which has so long controlled the state has, from the beginning, been vested in a prominent Madisonian. The factories and business houses can only be briefly mentioned. Breckheimer, Fauerbach, Rodermund, Hausmann and Hess are the brewers; there are five carriage and wagon building firms; two bookbinderies; four book and job printers, English, and one German; seven carpenters and builders; one distiller and rectifier; thirteen dry goods houses; two express agencies;. five furniture warehouses and factories; two founders and three machinists; three grain dealers; thirty-three grocers; six dealers in hardware; twenty-six hotels, including the Park, the Vilas, the Capitol and the Rasdall, which are the principal in the order in which they are named; the Madison Mutual and the Hekla are home insurance companies, and there are many agencies; there are four livery stables well appointed; manufacturers of and dealers in tobacco are six in number; there are fifteen merchant tailors; two omnibus lines; three daily papers, five weekly, one tri-weekly, one semi-monthly, and four monthly; we have one plow manufactory; two makers of pumps and windmills; one reaper factory; two sash, door and blind factories; two restaurants and thirty-one saloons; a soap and candle factory; a stereotype foundry; a soda water factory, and the Madison Woolen Mills. We have in all 450 business houses. The city has not reached the limits of its prosperity. Our agricultural resources are boundless, and the water powers have not been utilized to more than a tithe of their capacity. One man, whose name carries weight, says that we must not look to manufactures for a success, which will come much more surely and speedily to Madison as a watering place. With proper deference, we look to both sources for a great prosperity in the future. The beauty of Madison is unsurpassed, but she must also grow rich by her factories. The railroads in operation are, the Chicago, Milwaukee and St. Paul, and the Chicago and Northwestern. The traffic is extensive. The demand for hotel accommodation is so large that years since that fact was advanced as a reason why the government should be located elsewhere. Several prominent citizens procured the incorporation of a company to erect and furnish the elegant building which is now our leading hotel. The enterprise was completed in 1871, being opened in August. The Park Hotel arrangements for the comfort of visitors have not been surpassed in the west, and for the number and variety of beautiful views from every window, the whole world hardly contains its superior. The first lessee, Mark H. Irish, commenced his tenancy in August, 1871, ending in the corresponding month of this year. He has been succeeded by Mr. A. H. West. The extensive frontage on Main street is ninety-five and on Carroll street one hundred and sixteen feet. The building consists of four stories above the basement, and is seventy feet high, built of Milwaukee pressed brick, containing one hundred and eighteen sleeping rooms, twelve private parlors, one reception room for ladies only and one for ladies and gentlemen, a general dining room and a ladies ordinary, general and private offices, bathrooms and suites of apartments with bathrooms attached. It is no disparagement to the other hotels in the city to say that the Park is the best. Capital, sufficient for such a building, could only be obtained by cooperative effort, and the support afforded from the beginning has been quite satisfactory. Mr. D. K. Tenney says, very wisely, as to the charms of this locality: "Madison and its surroundings are the handsomest on the face of God's green earth. This is our capital and should be turned to profitable account. No other place in the west possesses it. For all the purposes of pleasure seekers, for rest and recreation, for quiet, beauty and delight, for sporting and fishing, for sailing, and swimming, for the intoxication and relief of all the higher senses, Madison has no equal; none to approach her west of the sea side. Madison, says a writer, 'rises between her beautiful lakes, like a gem pillowed on the bosom of a queen.' But thousands who ought to know our attractions are ignorant of them. Twenty years ago, Madison was written up, and people were acquainted with its charms but could not get here. A dozen fresh crops of tourists have sprung up since who have never heard of us; a new crop is on the road every year. Thousands would come to us for recreation, and spend their money here to the reviving of every channel of trade and prosperity." Additional Comments: Extracted from: History of Madison Section MADISON, DANE COUNTY AND SURROUNDING TOWNS; BEING A HISTORY AND GUIDE TO PLACES OF SCENIC BEAUTY AND HISTORICAL NOTE FOUND IN THE TOWNS OF DANE COUNTY AND SURROUNDINGS, INCLUDING THE ORGANIZATION OF THE TOWNS, AND EARLY INTERCOURSE OF THE SETTLERS WITH THE INDIANS, THEIR CAMPS, TRAILS, MOUNDS, ETC. WITH A COMPLETE LIST OF COUNTY SUPERVISORS AND OFFICERS, AND LEGISLATIVE MEMBEES, MADISON VILLAGE AND CITY COUNCIL. ILLUSTRATED, MADISON, WIS.: PUBLISHED BY WM. J. PARK & CO., BOOKSELLERS, STATIONERS AND BINDERS, 11 KING STREET. 1877. COPYRIGHT. WM. J. PARK & CO. 1877. DAVID ATWOOD, STEREOTYPER AND PRINTER, MADISON, WIS. File at: http://files.usgwarchives.net/wi/dane/history/1877/madisond/chapterv12nms.txt This file has been created by a form at http://www.genrecords.net/wifiles/ File size: 30.1 Kb