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CHAPTER XX
THE BANKS AND BANKERS OF SANDUSKY
Tradition—AA'e have no record—says that the first attempt at the
founding of a banking house in Sandusky Avas made by some of the
prominent business men and capitalists of the toAvn in the year 1834;
and the result of that effort AVIIS the establishment, under the laAVS of the
state of the Bank of Sandusky. As Avas provided by hnv, the subscription
books were diily opened by the commissioners, and the day fixed
upon Avhich the books Avould be closed. At the time designated it was
found that less than one-third of the stock had been subscribed, and it
became absolutely necessary that "something be done," and that at
once. In this extremity, Oran Follett, Avho was already a subscriber
for a considerable amount of the stock, came to the rescue and agreed
to take the balance at par value, amounting to something over $70,000.
He kneAV, or felt satisfied at least, that the stock could be easily disposed
of to NCAV York capitalists, and did make a sale of such part of it as he
could not conveniently carry. This timely act on his part made possible
the establishment of the bank. A board of directors Avas chosen and a
full complement of officers, William ToAvnsend, then a leading merchant
of the toAvn, being chosen president. The banking house Avas located on
Water Street, on the ground IIOAV covered by the West House.
Mr. ToAvnsend remained president for tAvo years, when he Avas succeeded
by Mr. Follett, under Avhose management the institution prospered
for several years, and until Congress passed the "Specie Act," by
Avhich a radical change in the management AA'as necessitated. About this
time, too, the eastern stockholders desired to sell their interests, and for
the purpose of purchasing, Mr. Follett made a journey to NCAV York
State, only to find that Burr Iliggins had preceded him and bought the
stock. After this the bank Avas short-lived, and, putting it modestly,
soon went into liquidation.
Immediately following the dissolution of the Bank of Sandusky, in
January, 1846, another Avas started, and knoAvn as Sandusky City Bank.
In this a number of persons Avere interested Avho had held stock in the
old bank, but that institution lived'but little longer than its predecessor,
although its ending Avas quite different. Its affairs AA'ere Avound up
about 1854 or 1855.
About the year 1850 the Union Bank opened for business, but shortly
aftenvard passed into the hands of Freeland T. Barney, Lester S. Hubbard
and William D. Durbin, under the name of Barney, Hubbard &
Durbin. This firm managed the affairs of the institution with a good
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