St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-06

Third street, between Cedar and Wa
basha, retired from the financial field in |
1857 and devoted their attention wholly |
TO real estate. although that was not at |
the time a lucrative business. While 1t |
was easy enough to buy lots on adyan- |
tageOus terms. the selling was beyond |
the power of the most persistent real |
estate salesman, because nobody had !
money to invest. The firm of Caldwell. |
Whitney & Co., on Third street, be- |
tween Cedar and Wabasha, was |
composed of Edwin Caldwell, }. Z. |
Whitney and Albert Caldwell. They |
went out of business soon after and lefs |
the city William Brewster's banking |
house, or, more properly. real estate |
Office, was on the corner of Bench and |
Wabasha streets. The firm of Knox |
Bros. was composed of John Jay and |
Henry NJ. Knox. There was also another |
brother interested, who was resident |
of ST. Paul. John Jay Knox has since |
filled important positions in the employ |
of the United States, having been for |
time comptroller of the treasury. While |
filling this Office he assisted i'll framing
Some of the Best Laws
passed by congress for the regulation of !
the nations finances. He is now presi- !
dent of the Bank of the Republic in |
n
institutions in the country. having a |
capital of S2,0O0,000. Henry NJ, after |
filling The position of national bank eX- |
aminer for a tine, was appointed bank |
examiner of the state of Minnesota, /
which Office he held about six years. |
He is the author of several laws of this |
state controlling the banking business |
and the methods of keeping accounts |
In the offices Of county auditors |
and treasurers. He is now cashier |
of the Security Bank of Minneapolis. |
The members of the firm of BOrup & /
Cakes were e. w. Borup. c. Ii. Cakes /
and l.. Faribault all of whom died in |
this city several years ago. \. J. I. |
Dana, who was their cashier, acted aft |
erwards as cashier for William Brews-
ter. and finally went back East. Lyman
c. Dayton is still resident OF the state, |
and frequent visitor TO st. Paul. His
wife, who left him several years ago.
and went to California. died there quite
recently, bequeathing her property in
part TO her husband. ana the remainder
to James c. Reed, her son by former
marriage. 1t is now understood that
her will will be contested by her lega-
tees, who seem to regard the division |
unfair. E. s. Edgerton is now, we be-
lieye, the oldest living banker in st.
the Second National bank, which is the
successor of the bank which he started
here thirty years ago. Gov. Marshall, |
Notwithstanding the yiciSSitudes OF
fortune he has undergone, is still an |
active business man, and interests HIM
self as formerly in the welfare of the
city and state. He is believed 10 be |
in comfortable circumstances. and /
has the respect and confidence |
of the community. The brothers ferdi-
nand and Gustav WilIias remained in
business throughout all the years that
have elapsed since they began il in /
partnership with Mr.. Myer in a build
ing opposite the Presbyterian church. !
near the intersection OF st. Anthony
and St. Peter streets. They removed |
their location several times and reOr- !
ganiZed the hank, first as the German !
American, while occupying the banking /
house at No. "a Third street. For a /
time they were in partnership with Mr.. 1
Dunbar under the firm name of WllliuS I
Bros. d Dunbar. Their bank was re- !
organized as the National German /
American bank in 1881, and now occu- |
pies its ON building on the corner OF |
Fourth and Robert streets. /
The Great Bond Case.
But we are getting ahead Of our story |
and emitting an important incident that (
occurred in the history OF banking in /
this state and city prior to the events we /
were about 10 relate. Before the adj /
mission Of tie state congress had do
mated to the territory extensive grants I
of land to aid in building railroads, and (
the territorial legislature had chartered 1
some half-doZen railroad companies,
amongst whom this grant was dis
tributed. When the financial revulSiOn
which began i'll Vienna, Austria, IN 1856,
spread itself like a pail over the entire
commercial world. 1T paralyZed bust
ness and destroyed confidence in all pro-
jected enterprises. Under such cir
cumstances it proved impossible Tor
these Minnesota corporations TO obtain
money with which to proceed with the
work of grading and building their pro-
posed roads. and in this dilemma they
appealed 10 the state for assistance.
The legislature which met in December, |
1857, regarded their memorial fayOrablY |
and passed bill granting loan OF the /
states credit for s., O00,0 600. Bonds pur-
porting to be issued by the companies |
were tC be Endorsed by the state author
tiles. Provision was made for the sui |
mission of this act to the people for |
their approval before it could become |
operative. and when this was complied |
with in May. 1858, the vote was prac-
tically unanimous in favor OF the loan.
The companies accordingly proceeded |
at once with the work, and before the !
close of the season had grading enough |
completed to entitle them TO bonds for |
more than half the amount
Although this scheme had the sane |
tion of nearly all the people, as their |
votes indicated, when the bonds came |
TO be issued by the state officers (the |
territory having been admitted to the |
Union in 1853 an effort was made to |
prevent the fulfillment of the law. Ger /
tain parties appealed to the courts for |
an injunction to prohibit the officers |
from signing the bonds. but were only |
successful in causing brief delay. The |
state supreme court
Refused the Injunction
and decided that the bonds should be |
issued. The late Gen. Sibley was gov |
ernor at the time; Hon. Frank Baa-
sen, of New Ulm. secretary; George
w. Armstrong, treasurer. and w. +. |
Dunbar, auditor. The judges of the
supreme court were Charles E. Flan- |
drau, Lafayette Emmett and Isaac At
water. Messrs. Baasen. Flandrau |
and Atwater are still living and act |
lively engaged in business. Gen. |
Sibley and Mr.. Dunbar died quite |
recently, and we are uncer- |
tain as TO whether Mr.. Armstrong |
is living or dead. Finding their efforts |
10 prevent the issue of these bonds by |
enjoining the state officers Intellectual, |
the opponents of the corporations made
another attack through the legislature |
of 1859, and succeeded in procuring |
the passage of all act repudiating the |
debt which the bonds represented. |
This they were the better able to do |
because the state was now called upon |
to make provision for the first years |
interest, soon to become payable.
In the meantime, under state law. |
these bonds had been made the basis |
for banking, aud bank currency aggre- |
eating probably s1,50O,00O or more had |
been put in circulation. The repudia- |
ton act rendered this worthless. |
Scarcely any other money being in cir
culation. these notes had been eagerly |
cd 4ls. In sIntr l. r.f