Bank of Madera 1889

Advertisement for the Bank of Madera, dated to 1892, the year before Madera became the county seat.
The Roberts Block was built in 1890 on Yosemite Avenue.

Bank of Madera

The Bank of Madera was a commercial bank incorporated on November 14, 1889. By 1891 its capital stock amounted to $100,000 (the equivalent of $2,164,017 in 2006). Of the 860 shares issued, 780 were held by the board of directors. The president, Return Roberts held 10 shares, John Brown, the cashier, held 550, William Breyfogle held 10, J. E. Newman held 10, and W. F. Baird held 200.

Embezzlement!

On November 13, 1891, W. F. Baird, the vice president and manager of the bank was reported in the New York Times to have embezzled nearly $100,000. Baird came to Madera from Pennsylvania, and in conjunction with John Brown, founded the Bank of Madera and the John Brown Colony. Parcels of land were sold in the colony to about 300 subscribers from other counties in California and from other states. Baird began using the money from these sales to finance private schemes, particularly an attempt to colonize a large tract of land in Southern California. As his losses grew, Baird began to issue forged notes and deposited them in place of the money he taken. Then he began to issue bogus checks and drafts, forging the name of Return Roberts, and over-issuing stock.

On November 14, 1891 Baird was placed under arrest in San Francisco, and charged with forgery of bank stock, notes and other papers to the extent of $100,000. Baird was detained in custody in the office of the Chief of Police, being spared the humiliation of being placed behind bars, before he was returned to Madera to stand trial.

Baird was 29 years old at the time of his arrest. He was a native of Pennsylvania, but moved to California in 1887 via Illinois. One of the detectives in charge of guarding him remarked that Baird was “one of the smoothest talkers I ever met”. He denied the charges, blaming disgruntled settlers, who were dissatisfied with their holding in the John Brown Colony, for spreading adverse reports about him.

The Bank of Madera appears to have survived the debacle. In 1892, we see that Return Roberts is still the bank’s president, but D. M. Tomblin replaced John Brown as cashier. Of the 880 shares issued by the bank, D. M. Tomblin, as trustee, held 800. The remaining board members held the following: Roberts with 10 shares, William O. Breyfogle with 5, E. B. Fellows with 20, A. J. Etter with 25, and J. E. Newman with 20.

Source of illustration: The Californian illustrated magazine, vol. 1 (October 1891 - May 1892); edited by Charles Frederick Holder, San Francisco, Californian Publishing Co., 1892.

Competition

In January of 1893, we see that Return Roberts is no longer the bank’s president, and that he has been replaced by the principal shareholder D. M. Tomblin, and J. E. Newman is the new cashier. The number of shares issued was raised to 900, with the board of directors holding 840. The board was comprised of D. M. Tomblin, trustee, with 800 shares, R. L. Hargrove with 5, H. C. Daulton with 5, F. V. McDonald with 10, and J. E. Newman with 20.

The replacement of Return Roberts as president might suggest some sort of power struggle within the bank’s directorship, because by spring 1893 we see that Roberts had left the bank to head up a new and bigger institution, the Commercial Bank of Madera. Incorporated on April 25, 1893, and open for business on May 3, 1893, the new bank issued 3,000 shares, with a capital stock of $300,000 (worth $6,492,052 in 2006). Roberts had controlling interest with 2,000 shares. The board of directors consisted of Henry Miller, N. Rosenthal, W.W. Phillips, and Elmer H. Cox.

Commercial National Bank of Madera, ca. 1915. This building is located at 234 E Yosemite Ave. The classical porch has been removed to accommodate the new facade of a retail outlet.

On June 16, 1893 the Madera Mutual Building and Loan Association opened. Its president was M. J. Ladd and the Secretary, R. M. Seeley.
The initial board of directors was comprised of B. A. Maxson (Treasurer), W. B. Thurman, S. Clark, E. E. Young, E. Buchanan, J. L. Hoffman, J. W. Watkins, and R. C. Joy.

1893 not only marks the opening new banks, it is also the year that Madera County came into being. This new political momentum, with its emphasis on local development, generated fresh interest in the area, and spawned a more competitive economic environment. Banks in San Francisco, Oakland, Santa Rosa, Sacramento, Fresno, Modesto, and Merced were quick to make real estate loans to Madera County residents, schools and developers. Unable to compete, the old Bank of Madera ceased to do business sometime before 1896.

Advertisement from The Californian Illustrated Magazine (Dec. 1892-May 1893) vol 3.

Sources:
Click on the title to see the original publication.

New York Times, Nov. 13, 1891

New York Times, Nov. 14, 1891

Report of the Board of Bank Commissioners of the State of California 1891

Report of the Board of Bank Commissioners of the State of California 1892

Report of the Board of Bank Commissioners of the State of California 1893

Report of the Board of Bank Commissioners of the State of California 1896

Report of the Board of Bank Commissioners of the State of California 1899

Report on the Building and Loan Associations of the State of California 1894

Report on the Building and Loan Associations of the State of California 1895

Report on the Building and Loan Associations of the State of California 1896

Interior of the bank: The Californian illustrated magazine, vol. 1 (October 1891 - May 1892); edited by Charles Frederick Holder, San Francisco, Californian Publishing Co., 1892.