Banks and money men of old McCook

Initially, when McCook got its start in 1882, The Lincoln Land Co., the Real Estate arm of the Burlington Railroad, pretty much handled the financing for its new community. However, it wasn't long before a new source of money was needed by McCook's new citizens---money for building things, like business locations, houses, and city services. This called for a new infusion of money, which was quick in coming, in the form of the money men, who formed banks, for the purpose of lending money to the builders of McCook.

Among the first of the money men to come to McCook were the owners of McCook's first Lumber Yards. There were three lumber yards in McCook in the 1880s. The Badger Lumber Company of McCook was one of 56 branches of lumber yards, which were established by the Badger State Lumber Company, of Badger Mills, Wisconsin. These yards were located mainly in Kansas and Missouri. But the owners were quick to note the potential that the boom town of McCook offered, and its need of building materials.

The Halleck and Howard Lumber Co., out of Denver, had several branches in cities along the Burlington Line, so McCook was a natural location for one of its branches.

The Frees and Hocknell Lumber Co., out of Chicago, was the forerunner of The Barnett Lumber Company, which continues to this day. (Albert Barnett was just a youth when he helped unload the first carload of lumber in McCook for Frees and Hocknell, in 1882. He stayed with that company for the rest of his life, eventually buying all the outstanding shares of the company and becoming sole owner.) In 1882 the firm was known as Frees and Hocknell, but in 1886 it was incorporated as Frees and Hocknell Lumber Company, with George Hocknell, of McCook, as President, B.M. Frees, of Chicago, Secretary and Treasurer.

Secretary Treasurer, Frees became a great benefactor of McCook projects. He is the one who provided most of the funds to make McCook's first YMCA, on Norris Avenue a reality.

The oldest of the McCook banks was The Citizen's Bank. It was established in 1882 by businessman, and later State Senator, J.W. Dolan, of Indianola, who also started the Red Willow County Bank at Indianola. Mr. Dolan served as President of the Citizen's Bank, and V. Franklin was Vice-president. Both men were pioneers in Red Willow County. Mr. Franklin was originally in the mercantile business in Indianola in 1879. He moved to Fairview in 1880 and on to McCook in 1882, where he was the first to erect a General Store building in McCook. When the Citizen's Bank was started he sold his General Store in McCook to take charge of the Bank.

At first, the Citizen's Bank was housed in one of McCook's first commercial buildings, a rudely built, wooden structure, on the northwest corner of what is now Norris Avenue and B St. By 1885 the bank was doing well, under the leadership of V. Franklin, and the wooden structure was replaced by a handsome new brick bank building. According to a Tribune story of the day, not everyone was pleased with some of the new features of the new Citizen's Bank building.

A Mr. Reynolds was striding along McCook's Main Street with a big basket of eggs on his shoulder. As he walked past the bank building his head smacked into one of the large iron rods, which supported the awning in front of the bank.

Eggs were unleashed by the accident, with 20 dozen splattered over Mr. Reynolds and the adjacent sidewalk -- creating a considerable walking hazard.

George Hocknell, the President of Frees & Hocknell Lumber, also became President of the First National Bank. During those early years of the '80s, he was among the most widely known and respected men throughout the Republican Valley. He was a true pioneer, coming first to Red Willow County in 1880, and located in Fairview in 1881.

In 1883 Mr. Hocknell was elected to the Nebraska Legislature to fill an unexpired term. He was reelected in the fall of 1884. He continued to play a major role in Republican politics.

In August of 1885 Frees and Hocknell started the First National Bank in McCook. According to the McCook Tribune, "the bank will start with a heavy capital stock (of $50,000) and the backing of the government, and is destined to become one of the most stable financial institutions in Western Nebraska." Bank officials included George Hocknell, President; B.M. Frees, Vice-president; F.L. Brown, Cashier; and as directors, two railroad officials, Alexander Campbell, McCook, and R.O Phillips, Lincoln. The First National Bank building was also a substantial brick structure, located on the NW intersection of Main and C. St.

Two weeks later, on Aug. 27, the Tribune announced that the city's pioneer bank, Citizen's Bank, was reorganizing, becoming the McCook National Bank, also with a paid up capital of $50,000. However, by the end of December 1885, the name change and national charter had still not materialized. Instead, J.W. Dolan chose to give up his interest in Citizen's Bank. V. Franklin emerged as President, John R. Clark, who was Cashier of the 2nd National Bank of Lincoln was made Vice-president, and A.C. Ebert of McCook was the new Cashier of McCook National Bank.

Though a bank's capitalization of $50,000 was considered outstanding in the 1880s, it dwarfed in comparison to the booming lumber business. In 1885, Frees & Hocknell Lumber Co. incorporated, with a capital stock of $150,000. At that time the company had 15 Lumber Yards in Nebraska and Colorado. Following the reorganization of the company, employees were allowed (even encouraged) to purchase shares in the company.

Some, such as Albert Barnett took the opportunity to heart and bought all the shares they could afford.

As McCook took on its role of a center of commerce, more and more brick buildings began replacing the old wooden fire hazards.

One of the first fellows who saw this transformation and decided to take advantage of the trend was Contractor, J.F. Collins. He had watched the building of the impressive brick buildings, such as the Menard Opera House and the First National Bank, and knew that other, similar buildings were bound to follow. In early 1886, he placed an order for a brick-making machine, which would make a lasting revision to McCook's skyline. Before summer began Mr. Collins' kiln had turned out hundreds of thousands of building blocks, which were described by Tribune writers as "extra fine specimens of machine-pressed bricks."

Among the new structures made of these bricks were Mr. V. Franklin's Citizen's Bank, The McEntee House Hotel, and Frees & Hocknell's Lumber office.

In 1886, McCook saw the opening of its third bank, the Farmers and Merchants Bank, in the Hamilton Building, on Main Street. According to newspaper reports of the day, Mr. Frank H. Spearman, of Chicago was to be President of the bank, "with ample backing of eastern funds". According to an ad in the 1893 McCook Columbian Souvenir, "A Capitalization of $25,000. Individual Responsibility $100,000." Loan brokerage was to be the chief feature of the new bank. "Prompt Attention Given to all Business Entrusted to Our Care. Collections A Specialty."

Mr. Spearman was perhaps the most interesting of these early bankers, though not necessarily the best banker. He was intrigued with the stories of the early cowboys and rail way men.

He loved talking to these fellows and began to write stories gleaned from these conversations. We'll take a closer look at Mr. Spearman, his life and his stories soon, in another column.

Source: McCook Columbian Souvenir 1893; McCook's First 100 Years, Morris;

Early History of McCook, McClelland