Jacob Furth

Jacob Furth
Born	Template:Birth date Schwihau, Bohemia, Austrian Empire (present-day Švihov, Czech Republic)
Died	June 2, 1914(1914-06-02) (aged 73)
Occupation(s)	Entrepreneur, banker
Known for	Banking leadership in Seattle; unifying Seattle's electric power and public transit systems; involvement with Ohaveth Sholum Congregation

Jacob Furth (November 15, 1840 – June 2, 1914) was an entrepreneur originally from the Austrian Empire who became a notable banker in Seattle, America. He was instrumental in unifying Seattle's electric power and public transit systems and was affiliated with the Ohaveth Sholum Congregation, recognized as Seattle's inaugural synagogue. According to Bill Speidel, Furth was "the city's leading citizen for thirty years" and possibly "the most significant individual Seattle has ever known."

Clarence Bagley penned remarks soon after Furth’s passing:

Early life

Born on November 15, 1840, in Schwihau, Bohemia (present-day Švihov, Czech Republic), Furth was the son of Lazar and Anna (Popper) Furth, a Jewish couple from Bohemia. Out of their twelve children—ten sons and two daughters—eight eventually relocated to the U.S.. He received formal education until age thirteen before starting work as a confectioner in Budapest. At either sixteen or eighteen years old, depending on sources, he ventured to America seeking new opportunities, arriving in San Francisco in 1856.

Equipped with letters of recommendation for the Schwabacher Brothers, a well-established Jewish merchant family, he traveled to Nevada City, California where they arranged employment for him. While working as a clerk during mornings and evenings, he attended public school for six months to enhance his English proficiency. After this period, his command of English reportedly exceeded that of his employers.

He advanced quickly and within three years earned a monthly salary of $300. By living economically, he managed to invest in a quicksilver mining venture. Following a store fire in Nevada City in 1862, Furth had accumulated enough capital to launch his own clothing and dry-goods business in Shingle Springs, California. In 1870, he relocated to Colusa, California, where he purchased shares in a general merchandise store using his personal savings despite offers from the Schwabachers to finance him. Shortly after settling there, he joined the ranks of the Freemasons and eventually became head of his lodge. By 1878 he acquired full ownership by buying out senior partners, managing the store until 1882.

Banking and financial roles

In 1882, due to health concerns, Furth relocated to the Puget Sound area in Washington, where he played a key role in founding the Puget Sound National Bank with an initial capital of $50,000, taking on the position of cashier. The bank's inaugural president was former Seattle mayor Bailey Gatzert, a colleague of Schwabacher. The institution commenced operations in August 1883. For a considerable period, Furth was the only officer and employee representing the bank in Seattle.

The Puget Sound National Bank experienced steady growth, consistently generating profits sufficient to raise its capital stock. In 1893, Furth was appointed president and held this role until the bank merged with the Seattle National Bank in 1910; thereafter, he served as chairman of the board. He earned a reputation as a prominent banking leader in the Northwest, known for his skill in managing complex financial matters.

Beyond his involvement with Puget Sound National Bank, Furth was instrumental in establishing the First National Bank of Snohomish in 1896, remaining a lifelong shareholder and board member. He also founded numerous other banking institutions across Washington, including the Kitsap County Bank in Port Orchard, Washington (established in 1908), which continues today as Kitsap Bank. In 1884, he created the California Land & Stock Company, overseeing a farm located in Lincoln County, Washington primarily dedicated to wheat cultivation, cattle raising, and horse breeding. He maintained the presidency of this company until his passing and invested extensively in Seattle real estate as well as timber properties throughout the Pacific Northwest.

Furth further diversified his interests by entering the urban and interurban electric railway sectors. In 1900, supported by Stone & Webster, he assumed the presidency of the Seattle Electric Company (which later became Puget Power and eventually merged into Puget Sound Energy in 1997). By 1916, this company operated more than 100 miles of track. Additionally, he organized and led the Puget Sound Electric Railway beginning in 1902, overseeing routes between Seattle and Tacoma, Washington, including streetcar systems throughout Puget Sound municipalities. Furth also served as president of Seattle's Vulcan Iron Works, founded in 1887 as one of the city's earliest major industrial firms, located at Fifth Avenue and Lane Street within today's International District.

Public-spirited negotiator

Judge Thomas Burke commended Furth for blending exceptional talent with civic-mindedness and generosity, emphasizing his significant contribution to Seattle’s growth. Historian Bill Speidel later described Furth’s influence as pivotal in transforming Seattle from a modest settlement into a globally recognized city, realizing the aspirations of Doc Maynard.

Shortly after arriving in Seattle, Furth collaborated with Gatzert and Seattle Post-Intelligencer founder John Leary to rescue the Spring Hill Water system from insolvency. This company provided water services to the city and was rejuvenated through a new pumping station on Lake Washington located in the Mount Baker neighborhood, effectively doubling its capacity. Although initially regarded as a public service initiative, Furth ensured that it operated profitably. After the devastating Great Seattle Fire of 1889 revealed deficiencies in the water supply system, Furth diverged from most business leaders by supporting city engineer R. H. Thomson’s proposal for a municipally owned gravity-fed water system—a position shared only by elite figure J.J. McGilvra.

In response to the fire’s aftermath, Furth arranged $150 million in bank loans and committed that his bank would not seek profit from this calamity. During the financial turmoil of the Panic of 1893, he resisted pressure to demand immediate repayment on all loans at his Seattle National Bank, prioritizing community welfare over rigid banking policies. Subsequently, he secured additional capital from investors in New York City, enabling him to retain control and steer the bank through this period of economic instability.

Financing of shipping and railroads

Following the Great Seattle Fire, Furth played a pivotal role in supporting seaman Joshua Green by financing his purchase of the Fannie Lake, which marked the beginning of Green's unification of the Puget Sound Mosquito Fleet. This consolidation was instrumental in establishing Seattle’s dominance in regional maritime transport. Furth provided capital for Green’s early shipping enterprises, including the La Conner Trading and Transportation Company and the prosperous Anderson Steamboat Company.

In addition, Furth partnered with railroad tycoons E.H. Harriman and James J. Hill to facilitate transcontinental rail connections to Seattle. This achievement secured a vital transportation link that significantly contributed to the city’s expansion.

Stone & Webster

Furth’s partnership with Stone & Webster in consolidating Seattle’s public transit and electrical utilities was marked by controversy. During the 1890s, the city operated fourteen separate streetcar and cable car companies; all but one eventually succumbed financially, particularly following the Panic of 1893. Many survived only by diverting funds from maintenance budgets. Furth and Stone & Webster combined these operations into the Seattle Electric Company, which implemented a uniform fare of five cents including transfers, responding to pressure from the Seattle City Council to maintain franchise rights. By 1902, this network had grown to include interurban lines connecting Tacoma and Renton.

Unlike earlier investments focused on public welfare after the Fire, Seattle Electric was a profit-driven enterprise predominantly held by East Coast investors, placing Furth at odds with advocates for municipal ownership. Despite consolidation efforts, persistent problems such as overcrowding, unreliable service, accidents, and insufficient winter maintenance remained.

Seattle’s municipal engagement in power provision began in 1890 with the establishment of the Department of Lighting and Water Works. The populist wave during the 1902 election led to the founding of Seattle City Light and promoted hydroelectric development. For many years, city electricity needs were met through a combination of municipal utilities and private firms until Seattle acquired its rival company in 1951.

Lou Graham connection

According to Bill Speidel, brothel proprietor Lou Graham effectively acted as Furth’s discreet business partner from her arrival in 1888 until her passing in 1903. Furth extended banking services, real estate assistance, and political backing critical to Graham’s establishment as Seattle’s premier parlor house owner. Furthermore, he referred promising loan applicants rejected by formal boards to Graham for informal loans at high interest rates. During the Panic of 1893, Graham may have contributed to stabilizing Puget Sound National Bank by making a substantial deposit. After her death, an employee of the bank managed her estate affairs.

The Schricker scandal

In his later years, Furth’s reputation suffered due to a scandal involving a private bank in La Conner, Washington, although he was ultimately exonerated posthumously. The W.E. Schricker bank collapsed in 1912 with liabilities totaling $378,766.91 against assets under $200,000. Schricker accused Furth and other officials; Furth was arrested, convicted on April 18, 1913, and fined $10,000. Schricker claimed Furth advised continuing deposits despite awareness of financial difficulties to safeguard notes owed to Furth’s bank. However, Furth was unaware that Schricker had extended $348,554.83 in self-loans to Fidalgo Lumber Company—a partnership he held—which accounted for most of the debts. The conviction was overturned on appeal on December 18, 1914; unfortunately, Furth did not live to witness his vindication.

Civic associations and public office

Furth was affiliated with Seattle's esteemed Rainier Club and held the presidency of the Seattle Chamber of Commerce for two separate terms. Representing the Republican Party, he was a member of the Seattle City Council from 1885 until 1891. In 1901, he was instrumental in establishing Seattle's anti-union Citizens' Alliance. Additionally, Furth contributed significantly to the fundraising efforts for the Alaska-Yukon-Pacific Exposition.

Marriage and family

In 1865, Furth wed Lucy A. Dunton, originally from Indiana; together they had three daughters: Jane E., Anna F., and Sidonia. Lucy played a pioneering role in founding Seattle's first charitable organization in 1884, known as the Ladies Relief Society (which later became Seattle Children's Home). Despite his marriage to a Gentile, Furth maintained his Jewish faith and was connected with Seattle's earliest synagogue, Ohaveth Sholum Congregation, as well as later involvement with the Reform Temple de Hirsch.

Their daughter Jane married E.L. Terry, while Anna became the wife of financier Frederick K. Struve, son of former Seattle mayor Henry G. Struve. Sidonia married U.S. Army colonel Wetherill; their descendants inherited the Furth family’s summer residence located in Yarrow Point. This 16-acre property was transferred on July 4, 1988, as the Wetherill Nature Preserve to the communities of Yarrow Point and Hunts Point.