16460. Peoples National Bank (Osceola Mills, PA)

View Charter #11966 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
11966
Charter Number
11966
Start Date
October 14, 1931
Location
Osceola Mills, Pennsylvania (40.850, -78.271)

Metadata

Model
gpt-5-mini
Short Digest
806f2ee453adba9d

Response Measures

None

Receivership Details

Depositor recovery rate
63.0%
Date receivership started
1931-02-10
Date receivership terminated
1937-12-09
Share of assets assessed as good
13.4%
Share of assets assessed as doubtful
64.5%
Share of assets assessed as worthless
22.1%

Description

Articles report the Peoples National Bank of Osceola Mills was in receivership (receiver T. W. McFadden) due to large losses from alleged embezzlement by the cashier C. B. Gardner; receiver filed suit 1931-10-14 against the surety company. No article describes a depositor run or reopening; receiver later resigned in 1934, indicating a prolonged receivership/closure. OCR corrected minor spacing (Osceola Mill -> Osceola Mills).

Events (5)
1. April 28, 1921 Chartered
Source
historical_nic
2. February 10, 1931 Receivership
Source
historical_nic
3. October 14, 1931 Other
Newspaper Excerpt
receiver filed a suit for $50,000 in the United States district court against the National Surety Company of New York... to recover on bond placed on C. B. Gardner.
Source
newspapers
4. October 14, 1931 Receivership
Newspaper Excerpt
T. W McFadden, receiver for the Peoples National Bank of Osceola Mills... Gardner... caused a loss to the bank of $111,397.09 through fraud, forgery, embezzlement and theft.
Source
newspapers
5. October 6, 1934 Other
Newspaper Excerpt
W. McFadden... resigned Friday as receiver of the Moshannon National Bank of Philipsburg and the Peoples National Bank of Osceola Mills.
Source
newspapers

Newspaper Articles (3)
1. October 14, 1931 The Pittsburgh Press Pittsburgh, PA
Article from The Pittsburgh Press, October 14, 1931

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Article Text

BANK'S RECEIVER SUES BOND FIRM Seeks Indemnity Against Clearfield Fraud The National Surety Company is named in a suit for $50,000 filed in Federal Court yesterday by T. W McFadden. receiver for the Peoples National Bank of Osceola Mills. Clearfield County. The bill states that C. B Gardner. Jr., was appointed cashier of the bank in 1923 and was covered by surety bond for $15,000. This was raised to $50,000 early this year Gardner. while cashier, caused a loss to the bank of $111,397.09 through fraud. forgery. embezzlement and theft, the complaint claims, and this action is brought to recover for the amount the surety company had Gardner COVered. It is understood that an indictment against him may be returned by the November Federal Grand Jury.

2. October 14, 1931 Pittsburgh Post-Gazette Pittsburgh, PA
Article from Pittsburgh Post-Gazette, October 14, 1931

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Article Text

BANK RECEIVER SUES T. W. McFadden, receiver of the Peoples National Bank of Osceola Mills. yesterday filed a suit for $50,000 in the United States district court against the National Surety Company of New York. It is for the purpose of recovering on bond placed on C. B. Gardner while he was cashier. It is alleged in the statement of claim that Gardner misapplied $111,397.90.-

3. October 6, 1934 Intelligencer Journal Lancaster, PA
Article from Intelligencer Journal, October 6, 1934

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Article Text

BANK RECEIVER QUITS. Philipsburg W. McFadden son of Representative L. L. T. McFadden. of Canton, resigned Friday as receiver of the Moshannon National Bank of Philipsburg and the Peoples National Bank of Osceola Mill