The Tazewell Club was the gentleman’s club of 1893

This is a revised version of a “From the Local History Room” column that first appeared in Sept. 2011 before the launch of this weblog, republished here as a part of our Illinois Bicentennial Series on early Illinois history.

The Tazewell Club was the gentleman’s club of 1893

By Linda Mace and Jared Olar
Library assistants

What comes to your mind when you think of a “gentlemen’s club”? Words acquire new meanings or different connotations as time goes on, and what “gentlemen’s club” might mean to some today isn’t what it meant over a hundred years ago.

Perhaps I’ve watched too many movies, but hearing the words “gentlemen’s club,” I think of New York City, of elegantly appointed, hushed rooms with men dressed in their finery, a cigar in one hand and a beverage of some type in the other hand.

Established in 1893, Pekin had the Tazewell Club, and while it may not have been touted as a gentlemen’s club, for all practical purposes that seems to be what it was.

The 2004 book “Pekin: A Pictorial History” tells us that it was once the hub of social life in Pekin.

“The club promoted local business interests and offered hours of wholesome recreation for the businessman, the professional and the clerk. The building had bowling alleys in the basement, meeting rooms, a card room and billiard room on the main floor, and a ballroom on the third.”

The Tazewell Club, established in 1893, met at this building that used to stand at the corner of Fourth and St. Mary streets.

Over 200 men were members of this club, with them “allowing” the Pekin Woman’s Club and the Litta Society the use of their facility for the ladies’ afternoon meetings.

But time marches on and membership eventually declined. In 1959 the club house was sold to the Herget National Bank and was demolished in 1960 for a parking lot.

Originally located on the corner of South 4th and St. Mary streets, the Tazewell Club was a grand building, worthy of the many social events that took place there.

Ben C. Allensworth’s 1905 “History of Tazewell County,” page 927-937, provides a detailed account of the founding and early history of the Tazewell Club, written by Fred H. Robbins. The account includes a quote from the club’s constitution and by-laws explaining its purpose: “The primary object of this Club shall be to promote the business interests of the City of Pekin, and the social enjoyments of the members of the corporation.

According to Robbins, the club was founded Sept. 14, 1893, at a meeting of local businessmen and leading men of the city in Holland’s Hall in Pekin, presided over by E. F. Unland, with O. F. Weber as secretary. The interim officers were Judge George C. Rider, president, and Weber again as secretary, with an organizing committee made of up Carl G. Herget (builder of the Herget Mansion), W. L. Prettyman, Fred W. Velde, W. A. Holt, and Dr. W. H. Allen.

Once the club was organized, the members elected Unland as president, Prettyman as vice-president, Weber as secretary, James M. James (in whose honor James Field is named) as treasurer, and Holt, Henry G. Herget, D. D. Velde, F. P. Maus, and Henry Birkenbusch as members of the club’s board of managers.

Though the club house is long gone and the Tazewell Club is a thing of the past, there is another community organization that was founded around the same time that is still very much living and active, and is soon to celebrate an important anniversary – the Pekin Area Chamber of Commerce.

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Scandal: The Failure of the Teis Smith Bank

Here’s a chance to read again one of our old Local History Room columns, first published in August 2014 before the launch of this blog . . .

Scandal: The Failure of the Teis Smith Bank

By Jared Olar
Library assistant

In its account of the organization of Pekin’s first banking institutions, the 1974 Pekin Sesquicentennial volume, pages 33-34, provides the following paragraph about a bank that popularly was known among the residents of Pekin as “the Smith Bank”:

“At about the same time that the first National Bank was organized [i.e., about the end of the Civil War], the Teis Smith banking firm was founded. The bank was located in the same block as the Smith wagon works, but it was conducted as a distinct and separate business. An interesting note in conjunction with the story of this operation is that upon the death in 1890 of Fred Smith, the senior partner who had taken over after his brother Teis died in 1870, Habbe Velde of the T. & H. Smith Company, Henry Block and John Schipper of the Schipper and Block dry goods establishment, and E. F. Unland of the Smith Hippen grain company (all of which are substantial businesses of old-time Pekin) stepped in as full partners to assure that the credit of the bank would not suffer greatly from his death.”

The 1949 Pekin Centenary, page 25, offers just a single sentence on the founding of this bank:

“That year [i.e., 1866] the Smith bank was established at 331 Court street, the First National bank at 304 Court street, . . . .”

“Pekin: A Pictorial History” (1998, 2004) has even less to say about the bank – just a single reference on page 92 to the fact that Teis Smith “also had interests in banking and railroads.”

Teis Smith, his brothers and other relatives were the founders of several prominent businesses in Pekin in the mid- to late 1800s, including a bank located at 331 Court St. This lithograph of Teis Smith was printed in the 1873 Atlas Map of Tazewell County.

Teis Smith, his brothers and other relatives were the founders of several prominent businesses in Pekin in the mid- to late 1800s, including a bank located at 331 Court St. This lithograph of Teis Smith was printed in the 1873 Atlas Map of Tazewell County.

Relying only on these brief notices in the standard works on Pekin’s history, one would never even be able to imagine the catastrophic circumstances surrounding the closing of the Smith Bank.

After operating for 40 years, the bank suddenly closed its doors on April 2, 1906, and the firm was then liquidated. When shareholders and depositors learned the reasons why the bank had closed, however, they went to the state’s attorney, who filed charges of embezzlement against the bank partners.

The story of that embezzlement trial – characterized in the Peoria Star’s contemporary reports as “the most sensational and deplorable affair that has ever come under the notice of Tazewell County residents” – is told in James A. Velde’s historical essay, “A Sensational Criminal Trial in Central Illinois,” a copy of which is in the Pekin Public Library’s Local History Room collection.

This is how Velde explains the failure of the Smith Bank:

“After partner Frederick Smith, a younger brother of Teis, died in a railroad wreck in 1890, the wagon and plow companies were separately incorporated in Illinois to avoid the complications in settling a deceased partner’s interest. But the bank was not incorporated, perhaps because of a feared government interference in an incorporated bank. The bank partners were thus left with their personal unlimited liability for all the bank’s debts . . . Near the mid-1890s the three enterprises were adversely affected by nation-wide difficult economic conditions, including bank panics and years of business depression. There came a time when the payrolls and other expenses of the wagon and plow companies were financed by borrowings from the Smith Bank, whose managers and partners were officers and stockholders of the two corporations. When the loans became delinquent in large amounts, the corporations issued shares of capital stock in payment of the loans. This practice, since the stock had no market, depleted the bank’s liquid assets and led to its closing on April 2, 1906.”

On May 24, 1906, four of the six bank partners were indicted in Tazewell County Circuit Court for embezzlement, under an 1879 Illinois law that made it illegal for a banker to accept deposits when his banking company is insolvent. The four indicted partners were Dietrich Conrad Smith, youngest brother of Teis Smith, who was the bank’s president and vice president of Pekin Plow Company; Conrad Luppen, bank cashier; Ernest F. Unland, president of Smith, Hippen & Company; and Henry C. Block, president of Schipper & Block department store.

The case was prosecutors by State’s Attorney Charles Schaefer, owner of the land that came to be known as Schaeferville and later a Tazewell County judge, and Judge Jesse Black, who later successfully defended the Tazewell County Sheriff’s deputies accused of torturing jail inmate Martin Virant to death in 1932.

The criminal prosecution stretched through the rest of 1906. Unfortunately, the issues of the Pekin Daily Times from that year are lost, but the indictment and trial proceedings were reported extensively in the Peoria Star (one of the predecessors of today’s Peoria Journal Star). The Star’s reports were usually sensationalistic and incendiary, often transgressing into libelous attacks on the personal character and even physical appearance of the defendants. During the course of the trial, as Velde shows, evidence was presented showing that the bankers had fraudulently been using depositors’ money to keep their troubled wagon and plow businesses afloat.

The jury returned a verdict of guilty against all four defendants on Dec. 15, 1906. However, defense attorneys almost immediately appealed the verdict and asked for a new trial, arguing that the conviction was not in accordance with a 1903 amendment to the 1879 statute under which the bankers had been indicted. In the end, both the trial’s judge, Leslie D. Puterbaugh, and State’s Attorney Schaefer agreed that the indictment had been a mistake, because the 1903 amendment had made it virtually impossible to obtain a conviction in a case such as the failure of the Smith Bank. The conviction was then set aside. Schaefer moved to have the indictment dismissed on April 15, 1907, and Judge Puterbaugh granted the motion.

With no attempt to disguise the dismayed at the overturning of the guilty verdict, the Peoria Star wrapped up its coverage of the affair with the comment, “Although the cases were stricken from the records, the memory of the wrecking of the Teis Smith and Company Bank by those behind it will linger for years to come.”

#charles-schaefer, #conrad-luppen, #e-f-unland, #fred-smith, #habbe-velde, #jesse-black, #leslie-puterbaugh, #pekin-history, #preblog-columns, #schaeferville, #schipper-and-block, #smith-wagon-company, #teis-smith, #teis-smith-bank