The Lexington City National Bank was organized in February 1865 and was granted Charter Number 906 by the Comptroller on March 17, 1865. First Security National Bank & Trust Company continued to operate under this original banking charter until the Bank One merger.
William C. Goodloe, John B. Wilgus and Alexander M. Barnes were elected the first President, Vice President and Cashier, respectively. Messrs. Goodloe and Barnes left immediately for Washington to confer with officials from the Treasury Department and arrange for the printing of banknotes. After making the necessary arrangements, Mr. Goodloe returned to Lexington while Mr. Barnes continued to New York City. While in New York, he established a relationship with the Ninth National Bank to clear checks and drafts drawn on Eastern banks.
The initial Board of Directors were John H. Neville, Richard P. Stoll, Dr. Benjamin L. Coleman, William A. L. Harting, John William Lell, George H. Whitney, George W. Norton, William S. Downey, Persicles Scott, John B. Wilgus, D. Frederick Wolf and James Patrick. City National originally operated on the corner of Cheapside and Main Street, occupying a building only twenty-five feet in width that fronted on Main Street. The bank's initial capital was two hundred thousand dollars and the stockholder's personal liability was set at an additional five hundred thousand dollars.
National Bank Note, Orginial Charter
In October 1865, the directors approved the first dividend and by April 1867 City National began declaring a regular five percent semi-annual dividend. In 1870, the bank switched its correspondent account to the Bank of New York.
Around 1870 Captain John B. Wilgus, a prominent local grocer, replaced the late Mr. Goodloe as President. On October 14, 1871 the Board of Directors approved a donation of three hundred dollars for the "Chicago suffers by the late disastrous fire."
Two years later in January 1872, Captain Wilgus resigned over “the propriety of a certain practice.” There had been a division for some time in the Board concerning the direction of the bank. The Stoll family had acquired a significant block of bank’s stock and assumed a more active role in its management. Directors Miller, Wolf and Bright and several staff members also resigned with Captain Wilgus. For a short period afterwards, there was concern among depositors that Captain Wilgus's resignation indicated a failure of the bank. However, a threatened run was averted.
Robert B. Hamilton succeeded Captain Wilgus as President and George J Stoll, Jr. was selected Cashier. Messrs. Hamilton and Stoll were partners in a local distillery.
In January 1876, ten shares of City National's stock sold for one hundred fifty dollars per share (the highest recorded sales price of any local bank to date). In April 1876, the Board of Directors declared a six percent dividend for the first three months of operations. The Daily Press in April 1877 reported that the City National was the largest bank in terms of deposits in Lexington.
In October 1879, the Board lowered the semi-annual dividend to four percent to allow the capital and surplus to grow. During 1881, the stock traded in the one hundred thirty dollar range. On October 8, 1881, Mr. Hamilton resigned due to health reasons and was succeeded by William A. L. Harting (a brother-in-law of Hector F. Hillenmeyer).
During the late 1870s, the Stoll family fully gained control of the City National and, around 1883, Richard P. Stoll was elected President. After his death in 1903, his brother, James S. Stoll, presided and another brother, J. Will Stoll, served as Cashier. In 1908, J. Will Stoll became President of the City National after his other brother's death. The Stoll family dominated the bank's direction for over sixty years, until well after the merger with the Phoenix National Bank and Trust Company in 1929. Even in 1992, First Security's principal law firm is Stoll, Keenon & Park (a firm founded by Richard C. Stoll).
National Bank Note, Brown Back, Series of 1882
In January 1885, it was discovered that James G. Scrugham, a teller at City National, had skipped town to Canada, leaving behind his wife and young child. An audit of the bank's books revealed a sixty thousand dollar shortage (roughly one-fourth of the bank's capital). He was twenty-eight years old and had been employed by the bank for eight years. He appeared to be very successful, being a founder of the Westen Electric Light Company and Overland Telephone Company. Apparently, he had been losing large sums gambling at the racetrack. Four years later, the bank recovered fifteen thousand dollars in a settlement from his bondsmen.
On February 7, 1885, City National was rechartered by the Comptroller to operate for another twenty years. City National was also appointed at this time the U. S. Depository Bank, replacing First National, for the Central Kentucky region. The Federal Government maintained a major account, with instructions that sums in excess of eighty thousand dollars be transferred to the Treasury in Washington.
National Bank Note, Date Back, Series of 1902
One of City National's most famous customers was Madam Belle Breezing, proprietor of a popular “sporting house.” Her house, known as the most orderly of disorderly houses, operated from the 1880s until the 1910s. Miss Breezing was an astute money manager and was said to maintain ten to fifteen thousand dollars in her checking account. This was a very considerable sum given the pre-inflationary value of the dollar during the period. In addition, she was a large stockholder of the City National and after the mergers in 1913 and 1929, she continued to hold her First & City and later First National stock. At her death in the 1940s, she still owned 36 shares of First National stock (equal to over a thousand shares today).
Advertisement 1903
In February 1904, the Board of Directors voted to erect an eight story building on the existing site, at the corner of Cheapside and Main. In April 1904, John G. Stoll purchased the adjacent National Exchange Building to allow room for the new building. Both bank buildings were taken down in July when construction began for the new building.
On December 17, 1905, the City National moved into the new building. The building was named the Lexington City National Building and cost approximately one hundred seventy five thousand dollars. City National and its successors continued to operate in this building until 1934, when the bank relocated to the old Fayette National Building. Thereafter, the Bank of Commerce operated in the original Lexington City National Building for several years. This building was completely renovated several years ago and is currently the Fifth Third Bank Building.
The Board of Directors in 1905 included three Stolls (James S., Charles H. and John G.) as well as Dr. Benjamin L. Coleman, Asa Dodge, Hector F. Hillenmeyer, John W. Coleman, Leonard G. Cox, Louis des Cognets, Frederick R. Toewater and Simon Weil.
After Richard P. Stoll's death in 1903, he was succeeded by his brother James S. Stoll. In June 1906, there was a movement to merge the First National with the City National Bank. Plans called for valuing City National's and First National's stocks at two hundred fifty five dollars and one hundred fifty five dollars, respectively. After lengthy discussions, the proposed merger was cancelled, when a syndicate acquired controlling interest in the First National. In October 1906, the bank issued the 82nd quarterly statement showing over one million dollars in deposits and voted an increase in capital stock to five hundred thousand dollars. On May 10, 1908, J. Will Stoll was elected President to succeed the late James S. Stoll. John G. Stoll was elected Vice President and James E. McFarland Cashier.
In July 1913, the proposed merger with First National was finally completed. The merged bank was named the First & City National Bank. During its existence, the City National Bank declared over seven hundred fifty thousand dollars in dividends, while increasing the capital stock by two hundred thousand to five hundred thousand dollars.
National Bank Note, Date Back, Series of 1902
