16115. First National Bank (Carnegie, PA)

View Charter #4762 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
4762
Charter Number
4762
Start Date
April 27, 1925
Location
Carnegie, Pennsylvania (40.409, -80.083)

Metadata

Model
gpt-5-mini
Short Digest
196979157d56cece

Response Measures

Full suspension, Books examined

Other: State banking department took possession of the Trust Company; a receiver was appointed; inventory and appraisals were begun; cash from the First National was moved to Mellon National Bank vaults for safekeeping.

Receivership Details

Depositor recovery rate
83.9%
Date receivership started
1925-05-12
Date receivership terminated
1929-10-15
OCC cause of failure
Governance
Share of assets assessed as good
57.9%
Share of assets assessed as doubtful
26.0%
Share of assets assessed as worthless
16.1%

Description

The First National Bank of Carnegie closed its doors April 27, 1925 “on their own accord to prevent a run” after the Carnegie Trust Company was taken over by the state for insufficient reserve funds. The First National did not resume operations; a receiver (R. F. Marburger) was later handling its liquidation and suing on behalf of the closed bank. Cause of the action was the failure/distress of a local bank (Carnegie Trust) and frozen coal-related assets, prompting precautionary closure and eventual receivership.

Events (5)
1. June 23, 1892 Chartered
Source
historical_nic
2. April 27, 1925 Run
Cause
Local Banks
Cause Details
Closure was taken to prevent a run after the Carnegie Trust Company was closed by the State Banking Department; distress of the trust (frozen coal assets) spooked depositors.
Measures
Bank closed voluntarily a few minutes after opening to prevent a run; later cash transferred to Mellon National vaults for safekeeping.
Newspaper Excerpt
The First National closed a few minutes after opening this morning, officials stating later that they took action on their own accord to prevent a run on the bank.
Source
newspapers
3. April 27, 1925 Suspension
Cause
Local Banks
Cause Details
Suspension/closure followed the state-ordered closing of the Carnegie Trust Company which had been taken over for inadequate reserves and frozen coal assets, creating local banking distress and loss of confidence.
Newspaper Excerpt
The First National Bank of Carnegie, which closed their doors this morning... officials stating later that they took action on their own accord to prevent a run on the bank.
Source
newspapers
4. May 1, 1925* Receivership
Newspaper Excerpt
Receiver R. F. Marburger did this in compliance with instructions from the Treasury Department ... pending the liquidation of the bank, which probably will require some time. - Carnegie
Source
newspapers
5. May 12, 1925 Receivership
Source
historical_nic

Newspaper Articles (16)
1. April 28, 1925 The State Journal Frankfort, KY
Article from The State Journal, April 28, 1925

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BIG BANKS CLOSE DOORS. PITTSBURG. April 27 (By A. State and Federal Banking Officials today began investigating the affairs of two Carnegie Banks, The Garnegie Trust and The First National Bank of Carnegie. which closed their doors this morning. The Trust Company was the first to close on orders from Peter G. Cameron, State Secretary of Banking. In a statement Mr. Cameron said: "The reserve fund of the Carnegie Tinst Company has been below legal requirements for some days." The First National closed a few minutes after opening this morning, officials stated later that they took action "on their own accord to pre vent a run on the bank." Both institutions of which John T. Bell is Pres ident. are located at Carnegie, Penna

2. April 28, 1925 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, April 28, 1925

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TWO CLOSED BANKS BEING INVESTIGATED PITTSBURGH Pa., April 27.-State and Federal officials today be. gan investigating the affairs of two Carnegie banks. the Carnegie Trust Company and the First National bank of Carnegie, which closed their doors this morning The trust company was the first to close on orders from Peter G. Cameron, state secretary of banking In statement Mr. "The reserve fund of Carnegie Trust Company has been below legal requirements for some days. The First National closed few minutes after opening this morning. officials stating later they took action "on their prevent run bank Both institutions, of which John Bell is president, are located in Carnegie, Pa.

3. April 28, 1925 The Titusville Herald Titusville, PA
Article from The Titusville Herald, April 28, 1925

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PITTSBURGH, April and federal banking officials today began Investigating the affairs the Carnegie banks, the Carnegie Trust pany and the First National Bank com- of Carnegie, morning. which closed their doors this The trust company was the first to close on orders from Peter Cameron. state secretary of banking. statement, Cameron said: reserve fund of the Carnegie Trust company has been below legal for some days." minutes The First National closed few after opening this morning, officials stating later that they took action their accord prevent run the Both institutions. of which John Bell are located in Carnegie,

4. April 28, 1925 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, April 28, 1925

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PENNSYLVANIA BANKS CLOSED Official Blames Stagnation of Coal Industry. (By The Associated Press Pittsburgh, April and federal banking officials have begun investigating the affairs of two Carnegie banks, the Carnegie Trust company First National Bank of Carnegie, which closed their doors this morning The trust company was the first close, orders from Peter Cameron, state secretary of banking In statement, Mr Cameron said, fund the Carnegie Trust company has been below the legal requirements for some days The First National closed few minutes after opening this morning Officials stated later that they took the action their accord, prevent run on the bank Both institutions. which John Bell president, are located in CarPa. Adding to his statement that the reserve funds the Carnegie Trust company were below the legal said "Although every effort has been made by the company build up the reserve the required amount. has failed to so, owing to the frozen condition of Its assets, which, direct the has obtained in the bituminous coal industry Pennsylvania some months, the company being the holder obligations of coal companies aggregating considerable sum.

5. April 28, 1925 The Morning Herald Uniontown, PA
Article from The Morning Herald, April 28, 1925

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CARNEGIE BANKS UNDER PROBE OF INVESTIGATORS President Says Institutions Are Sound Financially. INDUSTRY BLAMED By Associated Press PITTSBURGH, Apr. 27. State and federal banking officials today began Investigating the affairs of the Carnegie banks, the Carnegie Trust company and the First National Bank of Carnegie, which closed their doors this morning. The Trust company was the first to close, on orders from Peter G. Cameron, state secretary of banking. Mr. Cameron said "the reserve fund of the Carnegie Trust company has been below legal requirement for some days." The First National closed B few injuctes after opening this morning, officials stating later that they took Action QD their own accord to prevent a run on the bank. Both institutions, of which John A. Bell la president, Rre located in Carnegie, Pa. Secretary Camoron sald "although selection of the famous every effort has been made by the company to build up the reserve to the required amount, It has fulled to do 80 owing to the frozen conditions of Its assets which, In turn, is a direct result of the stagnation which has obtained in the bittiminous coal industry in Penusylvania for several months the company being the hold. era of obilgations of coal companies aggregating a considerable suni. Be cause of these conditions, it WGS the duty of the secretary of banking to take possession of the business and property of the Trust company in order that the interest of the depositors and ed." other creditors might be protectreach of everyone. Late today Secretary Cameron ap pointed Frank Jackson, Apollo, Pa., special deputy agent to assist la con. Unuing or liquidating the affairs of In " statement, Mr. Bell said a meeting of the officials of the First National may be held in a few days and that the bank was sound financial ly. He said the bank would be reopened for business but he did not indicate when. The Carnegle Trust company has a capital and surplus of $700,000, its financial report of April 9, 1925, show ed with deposits of more than $4,000,000 and assets listed M8 $5,664,650. The First National has & capital $100,000 and surplus and undivided of profits of $185,000. It's report of April 6, 1925, showed deposits of $1,759,932 and total assets $2,127,881. SITUATION IS PRECARIOUS CHICAGO, April 27. Commenting on the closing of two banks In the Pittsburgh coal region the Black Dta mond, coal trade publication, today said that the situation throughout the union carlous. bituminous coal fields is pre. Every day the wage scale agree ment signed in February of last year remains in effect It adds to the com plication of every unionized bitu minous mining companies and those financial Black interests back of It, said the Diamond. The central competitive district consisting of Western Pennsylvania, Illinois, Kentucky, Illinois and In diana is at a 35 per cent labor die adventage in competing with the nonunion field under the present wage agreement says the publication which has resulted In two-thirds of the for. mer business going over to non-union fields which produces at 40 cents a ton advantage.

6. April 28, 1925 The Pantagraph Bloomington, IL
Article from The Pantagraph, April 28, 1925

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Stagnation In Coal Industry Is Blamed For Closing of Two Banks at Carnegie, Pa. Associated April and federal banking officials vestigating the affairs of two the Carnegie Trust company and the First National of which closed their doors this morning. The trust company was the first close orders of the has the few minutes that stitutions of which John T. Bell president, are located in Carnegie. statement the reserve the Trust company the legal said: has the failed frozen which in direct stagnation the coal the being the holder of and other might be

7. April 28, 1925 Herald and Review Decatur, IL
Article from Herald and Review, April 28, 1925

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CARNEGIE BANKS CLOSED Frozen Assets in Field Holdings Responsible for Action April and federal officials began tigating the affairs Carnegie banks. Carnegie Trust the National of negle, which closed their doors this morning. The trust company the first close orders from Peter Camestate secretary of banking. In statement, Mr. Cameron "the reserve fund the Carnegie Trust Company been below legal quirements some The First National closed few minutes after opening this morning. officials stating later that they action their accord to prevent run on Both institutions, which John president, are located Carnegia, Coal Assets Frozen Adding to his statement that the reserve funds Carnegie Trust company below legal quirements, Secretary Cameron said: "Although every effort has been made by company to build up the reserve the required amount, has failed owing the frozen condition its assets, which, turn, direct result the stagnation that obtained bituminous coal industry for some the company being the holder of obligations les considerable Because of conditions, the duty the banking to take business and the that the of the order other creditors might positors

8. April 28, 1925 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, April 28, 1925

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INVESTIGATE AFFAIRS OF TWO CARNEGIE BANKS (By The affairs two negie Carnegie the First National Bank Carnegie which closed this The the first to ron said: reserve fund the CarTrust has equirements for some National closed minutes officials action took "on vent run the are located in Adding his reserve Secretary though made failed to do owing frozen condition of assets is of the nation that has the minous Pennsyl. some being the aggregating

9. April 28, 1925 Livingston Enterprise Livingston, MT
Article from Livingston Enterprise, April 28, 1925

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CARNEGIE BANKS BE INVESTIGATED STATE AND FEDERAL OFFICIALS START THEIR PROBE IMMEDIATELY STATEMENT FROM ONE INSTITUTION IS TO EFFECT ACTION VOLUNTARY PITTSBURGH, Pa., April State and federal banking officials began investigating the affairs of two Carnegie banks, the Carnegie Trust company and the first National bank of Carnegie, which closed their doors this morning. The trust company was the first to close on orders from Peter Cameron, state secretary of banking. In statement, Mr. Cameron said: reserve fund of the Carnegie Trust company has been below the legal quirements some The First National closed minutes after opening this morning, officials stated later that they took action on their own accord to vent run on the Both institutions of which John Bell president, are located in CarAdding to his statement that the reserve funds the Carnegie trust company were below the legal Cameron said: "Although every effort has been made by the to build company the reserve the required amount has failed to to owing the frozen its which tarn, direct result the that has obtained the industry Pennsylvania the the holder of companies

10. April 29, 1925 The Bridgeport Telegram Bridgeport, CT
Article from The Bridgeport Telegram, April 29, 1925

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BANK HEAD GIVES BACK COAL FIRM TO FIRST OWNERS President of Carnegie Institutions, Closed, Restores $8,000,000 Properties. nouncement was made today that the propert of the Cainegie Coal com pany had been returned to Its nal owners, J. H. Sanford and J M Stoneroad by John A. Bell, prest dent of the two banks at Carnegie, suburb, which closed their doos yesterday At the time Mr Bell pur chased the coal propeity two years 150 the company was capitalized $8 000,000 The terms of the transfet were not announced Depositors of the Cainegie Trus. ompany today began leaving then passbooks at the bank in response to a request from Peter G Cameion of the State Banking De partment who has taken charge of the bank's affairs. The First National bank of Carnegie also mained closed today. officers announcing the board of directors had taken this action "on their own account to prevent a run on the bank. M1 Bell said the First National bank of Cainegie 18 financially sound and may throw its doors open to depositors within a few days Secretary Cameron 111 closing the Carnegie Trust company said its 10serve fund had been below the legal requir ements for some days, adding that the situation was "the direct result of the stagnation that has pievailed in the bituminous coal industry in Pennsylvania for some months Ten state bank examiners began the preparation of an inventory of the assets of the trust company Under the state banking laws, appraisers will be named to fix a value of the assets after the inventory has been CO npleted. the appraisal to form the basis for liquidation T C Thomas, chief national bank examiner of the fourth Federal Reserve district appeared at the First National bank of Carnegie today. When asked what be was doing here. he replied. "I'm Jusa here, that's all When his attention was called to Mr. Bell's statement that the bank would re-open Thomas said 'I hope Mr. Bell 18 right

11. May 23, 1925 The Daily Notes Canonsburg, PA
Article from The Daily Notes, May 23, 1925

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IN THE LOWER VALLEY An aged mother had all her savings in the Trust Co. Her children have not told her of the bank disaster because she has weak heart, and she can't read English so she won't read it in the Signal Item. A school teacher who had her savings in the Trust Co., sent a check to her mother for her birthday. The check came back, so cost the teacher twice the amount she sent. Many business men had to redeem checks given their employes. Carnegie Borough répairs and improvements have to be partially suspended this year owing to the bank failure. A woman who sold her home had all her savings in the Trust Co. and is now penniless. Scores of similarly distressing cases are reported. Last Friday the cash in the First National Bank of Carnegie was transferred to the large steel vaults in the Mellon National Bank of Pittsburgh. Receiver R. F. Marburger did this in compliance with instructions from the Treasury Department at Washington. SO as to assure absolute safety of the funds pending the liq uilation of the bank, which probably will require some time.-Carnegie

12. July 29, 1925 The Patriot-News Harrisburg, PA
Article from The Patriot-News, July 29, 1925

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DISAGREE ON SUITS TRUST PROBE Pinchot's Investigators Want Actions Started in Bell Bank Finally Blocks Move By Associated Press to The Patriot Pittsburgh, July for and against the filing of criminal suits in connection with the recent failure of the Carnegie Trust Company, of which John Bell was president, marked an allday here today Attorney General George W Woodruff and the various investigators inquiring into the bank's affairs. Investigators for GoverPinchot urged that suits filed, while representatives of the State Banking Department insisted that banking code be adhered and that no hasty action be taken. No reached. State representatives intended to file suits today tomorrow but the Attorney General learned the conference that the proposed charges had not been checked. May Act This Week After the conference Mr. Woodruff said the investigation had not reached the stage to bring criminal suits, although there was possibility of such action being taken this week. Those who ferred with the attorney general were Maj. C. McGovern, special investigator for the Governor; Frank Gollmar, deputy attorney general; L. McGee, accountant; Maj. E. Lowry Humes, special counsel for the Banking Department, and Frank W Jack son, bank receiver. He also talked with seven members of the tive committee and counsel for the small depositors protective organization of Carnegie, who laid their case before him. The first suits growing out of the closed First National Bank of Carnegie, also Bell institution, were filed in Pleas Court by Marburger today ceiver for the bank, against George W. Wood and Chidester. Defendants are charged with delivering notes to $30,000 to the bank in 1922 and failing to pay them.

13. July 30, 1925 Standard-Speaker Hazleton, PA
Article from Standard-Speaker, July 30, 1925

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ARGUE ON CRIMINAL SUITS IN BANK CASE Pinchot Probers Want Suits Filed-Banking Department Insists on Banking Code. HARRISBURG, July 29.-Appointment of B. B. Blackburn, president of the First National Bank, Oakmont, and J. H. McGinnity, trust officer and secretary of the Pittsburgh Trust Company, Pittsburgh, to appraise the assets of the Carnegie Trust Company, Carnegie, was announced today at the Department of Banking. The institution was taken over by the Department last April. PITTSBURG. July 29. Arguments for and against the filing of criminal suits in connection with the recent failure of the Carnegie Trust Company, of which John A. Bell, was president. marked an allday conference here today between Attorney General George W. Woodruff and the various investigators inquiring into the bank's affairs. Investigators for Governor Pinchot urged that suits be filed. while representatives of the State Banking Department insisted that the banking code be adhered to and that no hasty action be taken. No decision was reached. State representatives intended to file suits today or tomorrow, but the Attorney General learned at the conference that the proposed charges had not been checked. After the conference Mr. Woodruff said the investigation had not reached the stage to bring criminal suits, although there was a possibility of such action being taken this week. Those who conferred with the Attorney General were Major C. C. McGovern. special investigator for the Governor: Frank I. Gollmar. deputy attorney general; W. L. McGee, accountant: Major E. Lowry Humes, special counsel for the Banking Department and Frank W. Jackson. bank receiver. He also talked with seven members of the executive committee and counsel for the small depositors' protective organization of Carnegie, who laid their case before him. The first suits growing out of the closed First National Bank of Carnegle, also a Bell institution. were filed in common pleas court today by R. F. Marburger, receiver for the bank, against, George W. Wood and P. M. Chidester. Defend-

14. October 17, 1925 Pittsburgh Post-Gazette Pittsburgh, PA
Article from Pittsburgh Post-Gazette, October 17, 1925

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Bell Bank Receiver Sues for $1,800 Note R. Marburger, receiver for the closed First National Bank of Carnegie, formerly headed by John A. Bell, filed suit yesterday in Common Pleas Court against Thomas from whom he recover $1,800 said to be due the bank on dated March last. The averred that a loan was at the bank the amount sought and that 60-day was given in When the note fell due at the expiration the 60 payment defaulted Mr Marburger alleged in his action.

15. December 8, 1925 The Pittsburgh Press Pittsburgh, PA
Article from The Pittsburgh Press, December 8, 1925

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BANK RECEIVER SUES SOSSONG FOR $1,525 Another sult the collapse the Bell lions Carnegie common pleas receiver for the First National bank Carnegie, asked $1,252.06 of W. Sossong of Carnegie, the result two notes the latter had there. The two notes were for and $2,000, but credits which Sossong to his account cut the sum due $1,252.60. Attorneys Moorehead and Knox represented Marburger.

16. July 30, 1926 Pittsburgh Post-Gazette Pittsburgh, PA
Article from Pittsburgh Post-Gazette, July 30, 1926

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0. K. PIPE SALE FOR BELL BANK RECEIVER Acceptance of 54 Per Cent of Proceeds of Hallenbeck Material Authorized. Federal Judge R. M. Gibson terday M. R. Kevil, ceiver of the First National Bank of Carnegie, accept 54 per cent of the proceeds of the of certain pipe Hallenback of owned by Louis, and 54 per cent of the collection of all other assets sale of discharge of the edaims of the bank against him as acceptor of certain trade acceptances drawn by the Interstate Pipe Company on him. The order forth that all rights of the receiver of against the company and against John pipe A. in as surety on the trade acceptances be reserved. The other cent of the receipts the pipe, to Mr. Kevil, paid the town National Bank, which holds other on Hollenback. The Railway Equipment have the successful bidder for the pipe.