People's Pilot, Volume 2, Number 49, Rensselaer, Jasper County, 26 May 1893 — Interesting, If Not Exactly True. [ARTICLE]

Interesting, If Not Exactly True.

‘•Girl About Town” In Fowler Leader. The failure of the Columbia National Bank, at Chicago, proves the old adage that “blood will tell.” Its President, Zimri Dwiggins, is a descendant of Mary, Queen of Scotts. With one million of stocks and nearly two million of deposits and profits, a run of a quarter million suspends the bank. It looks like it might be a bad brea k. Zim Dwiggins, as everybody called him. a dozen years ago is a fantastic figure in the banking history. In the seventies he and his brother Bob were practicing law in Rensselaer, and loaning eastern money to “musk rat” Hunters. He conceived the idea of a bank. He and Bob were to furnish the experience and John McKeever the money. A room was rented, a safe bought and a sign painted —and Mr. McKeever was caught for a security debt which took every dollar he had. A little consultation was held in the law office that evening. “What will we do,” says Bob. “We can’t start a bank, we have no money.” “By crackies, we will hang out our sign anyway,” replied Zim, and they did. A fortunate death gave them the use of SIO,OOO and everything went. In the fall of the same year Mr. Dwiggins called on the people of Oxford. He was going to start a bank. He would admit a few of the richest farmers on the "round floor.' He* put in a big safe and'hung out a sign. One by one the old conservative farmers dropped in and in a sanctimonious church collection voice said they did not know anything about banking and guessed they would wait a while. When the day of opening came the big safe contained just S7OO which Zim had borrowed from a widow woman down in Warren county. And the very first day here came Col. Jack Templeton galloping to town on his flea bit-, ten horse. “By Go! I w r ant SSOO P. D. Q. Have no time to wait; my hoss standiir out there now.” This lacked only S2OO of busting the bank, but Zimri had nerve. “All right! all right Mr. Temple* ton. you can have all the money you want.” And while he was writing the note he suggested that the better way would be to let the money remain in the bank and check it out. and he would have a record of his account and avoid loss or danger of paying any account twice. And the Colonel did leave the bulk of the SSOO in the big sale. And the deposits grew from the start. In a year or two the farmers "wanted stock in the bank. Mr. Dwiggins guessed he could run it himself, and showed them in big red figures

how much he had made the last month. Presently he got ready to sell some stock, and sold it for fifty per cent, premium. For every dollar’s worth of stock he sold he got a dollar and a half, which was a pretty fair profit. Mr. Dwiggins’ plan in starting the bank in a rural town was eminently satisfactory and profitable to —Mr. Dwiggins. A good town and good boy were selected. The boy was called before the United States Loan & Trust Company, which consisted of Mr. Starbuck, a typewriter and a typewriter girl. “Mr. Goodboy, our syndicate of bankers are going to start a bank down at Greenwood. Mr. Honorable Senator will be president and with you as cashier it is sure to go. Now you give us *1,650 and we will put in the safe and counter and varnished stool and give you a fourth interest in the profits. Wo will loan you *lO,000 at seven per cent, interest K> start the bank. You can loan this money out at short time loans and clear 5 per cent, on it. Pretty soon you will get deposits and as soon as you cau you must deposit SIO,OOO in the Columbia National Bank.” There wore over one hundred of these banks started, and it is doubtful if over SIO,OOO in money was used in the entire series, and this brought iu- seven per cent, interest in each of the one hundred banks. This, with three fourths of the profits, made a very fair income. Mr. Good boy looked the matter over, examined the varnished chair, and concluded that the *1,650 wouid pay for the entire outfit aud he was to do all the work and get one-fourth of the profits, and this one Goodboy did not invest. The other day the bank at Greenwood suspended, with $135,000 deposits and *I,OOO in the safe. I recall with pleasure and wonderment, the acquaintance I have enjoyed with Zimri Dwiggins, and whatever may be the outcome of this failure, I will always remember him kindly.