Page 8 - The History of Watertown Savings Bank_Neat

The Founding of the Bank

The men who worked to establish Watertown But he was met with resistance from at least
Savings Bank were prominent citizens with great one of the already established banks in the city.
wealth and social standing. Their prestige and Officials from the former Jefferson County
money were critical to the establishment of any Savings Bank voiced opposition to Mr. Sherman’s
banking operation during that time period because plans to start a mutual savings bank as far back
it was up to the individual board of trustees and its as 1875, according to the bank’s minutes. At that
officers to personally guarantee customer deposits. time, Mr. Sherman had tried, but failed, to obtain
It would not be until 1933 that the Federal approval from the Superintendent of Banking to
Deposit Insurance Corp., or the FDIC, would be open Watertown Savings Bank.
Along with the development of industrialized
papermaking, several other factories had also set established to secure customer deposits. In a final effort, Mr. Sherman decided to enlist
up operations on the banks of the Black River. Many of the bank’s founders were businessmen the help of former New York State Lieutenant
The Eames Vacuum Brake Co. had started on who had established thriving paper mills and Governor Allen C. Beach, who still maintained
Beebee Island in 1876, manufacturing brakes carriage manufacturing plants. Others were several important connections at the state level.
for railroad cars. It would later relocate after successful merchants, lawyers and politicians. They It was Mr. Beach who used his influence with
becoming incorporated as the New York Air were not formally trained in banking. Their role officials at the state banking department to help
Brake Company in 1894, and was employing up as trustees and officers was to instill confidence in Mr. Sherman obtain the authorization for the
to 650 workers by 1898. the venture by being the “face of the bank.” establishment of Watertown Savings Bank.

The carriage industry was also at the peak of its Although they had great business expertise, The initial opposition to WSB was
prosperity. The real growth of this industry started none of the founders had solid banking experience. “overcome by the indomitable influence and
in 1875, with the establishment of the Watertown They needed a seasoned banker to help establish persevering energy of Lt. Gov. Beach,” who
Spring Wagon. Others soon followed, including the Watertown Savings Bank, and that man was provided significant assistance to secure WSB’s
H. H. Babcock & Sons, Union Carriage & Gear, Wooster Sherman. Mr. Sherman had owned certification, according to bank minutes.
and the Excelsior Carriage Company. By 1898, and operated his own bank until a change in the
more than 700 men were employed in Watertown’s nation’s banking laws in 1863 From Wooster Sherman’s Bank in 1862.
carriage factories. created a system of national
The city was experiencing a substantial growth banks, thereby eliminating
in population, resources and wealth, and the private bank operations within
number of its residents almost doubled during individual states.
those two decades. The advent of electricity and Mr. Sherman worked for
the telephone had arrived, and both had become more than 25 years to establish
commonplace in many city homes. The city of a new mutual savings bank in
Watertown was in the process of reaching the the city of Watertown, which
highest per capita income level of any city in the already had several other
state, according to historical accounts. established banks at that time.

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