Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1916-10-04
VANDERLIP'S RISE FROM
MACHINE APPRENTICE TO
HEAD OF GREAT BANK


them that VANDERBILT had an exclusive
story of transcendent Importance but
would give 1t only on the strictest under
standing that it be printed exactly as
Vanderlip wrote 1t and that he be allowed
to edit the headlines.
Never had such a proposition been
made to the newspapers. However, all
but one paper sent responsible men to
get the news. VANDERBILT lined them up
and pledged them to the conditions he
laid down. Later he drove from office
to office and censored the headlines.
III was the poorest newspaper story |
ever wrote" MIR. Vanderlip admitted
afterwards. "The facts were told but
not in Il way the newspapers would have
ilRed to tell them. The fact that the
stock exchange would not open next
morning was mentioned i'm AN obscure
paragraph near the end of the story. But
IL saved Chicago much unnecessary de-
m~oralization and disaster"
When the National Bank of Illinois
tailed. Nanderlip was again called upon
to break the news.
Hard work., incessant study and little or
no recreation characterized Nanderlip's
NE at this stage. Before starting his
DAYS newspaper work. at 1920, he at
tended morning classes in economies.
financial history, etc, at the University
or Chicago. AT 80 he was still going to
school Besides. he had to do much out
SIDE work to exc out his salary. as the
burden of supporting the household was
on MS shoulders-his grandmother, his
mother. two aunts and little brother and
sister We're largely dependent upon hi.
efforts. =
When Lyman j. Gage was appointed
secretary of the treasury it was not sur
prising that he wanted the brilliant and
resourceful young financial authority to
accompany him. He went as MIR. Cages
private secretary, but so valuable did he
make himself that in one month he was
elevated u the position of assistant sec
retafy of the treasury. Mr.. Gage was 81
dlsgusted with the torrent of applications
that poured in upon him by mail and by
a constant stream of political wirepullers
that he tlTned the handling OF the whole
appointment division over to a COMMITTEES
headed by Mr.. Vanderbilt. Before he had
time to find his feet in Washington the
ex-reporter found himself in charge a.,
the 5000 employees forming the treasury
force. Instead OF the Responsibilities
staggering him, he enjoyed the exper-
fence. A writer described the Vanderlip
OF that day as generous. thoughtful of
others. open minded. strong willed, UNI
pretentious. just and big heartfelt He
was, moreover, good natured, enthusiasts
tic and optimistic.
1t was the generalship he displayed in
handling the SOC, 600. 600 Spanish war loan
In 1898 that gave Vanderlip a chance to
win MS spurs. He had to organize a spe-
cial clerical staff and so efficiently did he
seiect and train the men and systematic
the statistical York that, although the
subscriptions aggregated $1.40O, Co., 600 and
numbered 100000 he was able to announce
within five and one-half hours after the
subscription closed within $500 Of where
Inc ine yNlI1 hn I've ~y, I-A,--. AA--z
VINO would get all the bonds they sub
scrlbed for and those who would get moth
ing. over 5000 envelopes were addressed
IN the one day and every unsuccessful bid
der received by next mornings mail the
check With which he had accompanied his
bid.
vanderlip's feat did not pass unnoticed
by the nations financiers. James Still
man. the alert head Of the National CITY
bank, told Mr.. Gage that he would like to
get Vanderlip as soon as he was finished
at Washington. Mr.. Gage and his aid as
sumed a private secretaryship was in Mr..
mind. Blu a year later. Mr..
Stillman informed him a vice presidency of
the bank awaited him-a vice presidency
OF the greatest bank in the country for a
newspaper writer who had never been be-
hind a bank window a day in his life.
Building Up Greatest Bank.
The %stiffest test In Vanderlip's whole ca
reer came when he was installed at the
City bank. Mr.. Stillman set down at an
empty desk on the overcrowded officers
platform. He was given nothing to do
and had four idle days.
Here he was drawing a large salary and
not earning a penny of it. He must do
something. An idea flashed into his mind.
He would make the National City bank
the representative of other banks through
out the country in government bond trans
actions. Vanderbilt knew more about gov
nme bonds than any other man living.
He knew other banks would like to be re-
lieved OF all the red tape incidental to buy
ing and putting up bonds to cover circula-
ton. depositing reserves to cover note is
sues. ETC., and he began to dictate a cir
cular letter to be sent broadcast to the
country's 1900 national banks.
His plan becoming known, he was SOL
emmy informed that it was one of the
proudest traditions OF the National CITY
bank that 1t had never solicited new BUSH
ness.
"If you never went after new business
before. 1t Is time you started now" he re-
piled. He resumed the debating of his cir
cular-and the City bank became the bank
for other banks and built up the greatest
bond business in the whole country.
Vanderlip's rewar came in the form of
elevation to the presidency eight years
later.
When MT. Vanderlip came to the City
bank, In 1901, its capital was only So OO,W 600
and Its deposits not far above $3.50, 900, 600:
but In the following year the capital was
increased to $25. 10000 0 while deposits had
risen to over $24O. OoO.O 900 when Mr.. Wander
lip became president. in January. 1909.
This year deposits touched $593. Geo. 600, a
figure not approached by IN other Amer
lean institution. Tc,hcse deposits exceed
one-seventh of allShe money in circula-
ton In the United States!
The homer the federal reserve act was
passed. permitting branch banking the