18528. Jefferson County National Bank (Brookville, PA)

View Charter #2392 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
2392
Charter Number
2392
Start Date
November 9, 1933
Location
Brookville, Pennsylvania (41.161, -79.083)

Metadata

Model
gpt-5-mini
Short Digest
17b4e653

Response Measures

None

Receivership Details

Depositor recovery rate
61.0%
Date receivership started
1933-11-09
Share of assets assessed as good
21.1%
Share of assets assessed as doubtful
50.2%
Share of assets assessed as worthless
28.6%

Description

The bank restricted operations at the end of the March 1933 moratorium and was closed/declared insolvent in November 1933. Comptroller audits revealed large shortages/misapplications by the former president/conservator Leonard B. Shannon; receivers were appointed and the bank remained in receivership/liquidation with no reopening reported. Classification: suspension (closure) due to bank-specific adverse information/irregularities rather than a depositor run.

Events (10)
1. August 15, 1878 Chartered
Source
historical_nic
2. November 9, 1933 Receivership
Source
historical_nic
3. November 9, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Books audited after moratorium revealed large shortages and irregularities; reorganization plans failed and bank was declared insolvent in November 1933.
Newspaper Excerpt
The bank closed November 9.
Source
newspapers
4. November 10, 1933 Receivership
Newspaper Excerpt
O'Connor sent Leon Gell to commence an audit on November 10. ... E. B. Howard, of Tulsa, Okla., became receiver. The bank closed, O'Connor sent Leon Gell to commence an audit on November 10. His report is now in O'Connor's office. It soon became apparent the books ... was impossible properly to audit them. Meanwhile ... E. B. Howard ... became receiver. (Pittsburgh Sun-Telegraph, 1934-03-12.)
Source
newspapers
5. January 18, 1934 Other
Newspaper Excerpt
Receiver E. Howard ... issued statement that the local bank would soon be in position to make distribution of the segregated special accounts ... deposits in the bank between March 1933, November 10 ... Most of the depositors did within short time we expect to distribute to them part of their monies.
Source
newspapers
6. March 1, 1934 Other
Newspaper Excerpt
Verification of Pass Books ... verification and reconcilement ... necessary steps that the receiver must take before arrangements can be completed for issuing receiver's certificates and later paying dividends.
Source
newspapers
7. March 12, 1934 Other
Newspaper Excerpt
Investigation of shortage ranging between $150,000 $200,000 in the closed Jefferson County National Bank of Brookville, Pa., ... report of an audit ... bares the shortage, indicates violations of national banking laws.
Source
newspapers
8. May 17, 1934 Receivership
Newspaper Excerpt
Archie J. McMurray ... was appointed receiver of the Jefferson County National Bank ... vice E. Howard resigned.
Source
newspapers
9. June 3, 1934 Other
Newspaper Excerpt
Leonard B. Shannon ... was arrested ... charged with misapplication of $52,534.88 of funds and credits of the bank.
Source
newspapers
10. August 2, 1934 Other
Newspaper Excerpt
Archie McMurray yesterday announced his resignation as receiver of the closed Jefferson County National Bank ... Carroll Snader ... appointed receiver.
Source
newspapers

Newspaper Articles (16)
1. November 14, 1933 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, November 14, 1933

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REPAYMENTS Greater Than Loans. R. F. C. Reports Operations For Third Quarter. Closed Banks Get $122,500,000 Of Since For mation 2.6 Billions. Washington, November -The Reconstruction Corporation received more money in repayments during the last three months than it loaned to aid business and agriculture. A summary of the corporation's report for the third quarter, ended September 30, disclosed today that it had disbursed and received repayments totaling $238 186,400 that the corporation had nearly half mil lion dollars less outstanding than June From the time of its formation February the corporation has disbursed authorizations totaling During third quarter the corporation loaned and trust companies of which $122,500,226 reorganization or liquidation of closed banks. Loans Are Iltemized. Loans to building and loan associations insurance companies, $1,525,100 credit unions, $20,663,842 joint stock land banks. corporations, $470,520; rediscounts for gional agricultural credit corporations, $30,015,863; Federal land banks, $5,000,000; credit corporations, $400,000, and railroads Under the 1932 Emergency Relief Act, 19 loans aggregating $55,355,293 authorized and under another section $53,880,543 loaned for financial sales agricultural surpluses foreign markets and to finance orderly keting agricultural commodities and live stock banks on preferred during the quarter totaled and subscriptions for preferred banks companies $19,337,500 The corporation purchased of bank debentures. Cotton Loan Listed. In connection with the stock was said that September 30 many millions of dollars and debentures either have their purchase authorized During the quarter the Secretary of Agriculture allowed $3,500,000 with which purchase The opening National Banks during the first 10 days of Novem announced by D'Connor to have restored $16,084.000 in deposits. During the same period six National Banks had their reorganization plans approved by the Treasury. involving $2,825,000 The reported that with zation have been declared insolvent and appointed These the Jefferson County National Bank of Brookville, Pa., with and the Central City Bank of Central City, Neb., with $98,000 in deposits.

2. November 14, 1933 Evening Star Washington, DC
Article from Evening Star, November 14, 1933

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$16,084,000 RESTORED IN BANK REOPENING Thirteen National Institutions Red ported Again in Operation This Month. By the Associated Press. The opening of 13 national banks during the first 10 days of November was announced by J. F. T. O'Connor yesterday to have restored $16,084,000 in deposits. During the same period, six national banks had their reorganization plans approved by the Treasury, involving $2,825,000 in deposits. The controller reported that two banks with approved reorganization plans have been declared insolvent and receivers appointed. These were the Jefferson County National Bank of Brookville, Pa., with $1,507,000 of deposits, and the Central City National Bank of Central City, Nebr., with $98,000 in deposits.

3. January 18, 1934 Brookville Republican Brookville, PA
Article from Brookville Republican, January 18, 1934

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Local Bank Will Make Payments JeMerson County National Bank Reseiver Issues Statement That Bank Will Soon Be Ready Make Distribution of Segregated Accounts. Receiver E. Howard, of the Jefferson County National Bank, yesterday issued statement that the local bank would soon be position make distribution of the segregated special accounts the bank posited since March 4th last. "We gradually reaching the point where we will able to make distribution of deposits on the segregated trusteed accounts in this bank, being monies deposited in the bank between March 1933, November 10, said Mr. Howard. Mr. Howard also stated, "Recentwe requested that all persons who made deposits in the bank March 1933, bring their pass books for verification. Most of the depositors did within short time we expect to distribute to them part of their monies. pass books that were turned have been balanced and fied, Monday, January 1934, all who left their books with requested to call the bank and verify their claims, No distribution can be made to party until they have called and fied their claims, as requested

4. February 8, 1934 The Indiana Weekly Messenger Indiana, PA
Article from The Indiana Weekly Messenger, February 8, 1934

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NEWSY PARAGRAPHS Items of Timely Interest From the County and State Buyers for the State Emergency Relief board continue to purchase materials from outside of Pennsylvania Mrs. Dank Stuchell, of Marion Center, who has been ill for some time, taken last week to Indiana hospital for observation. a Maine manufacturer got a shoe order for $22,299.20 of $43,853 paid for clothing the last few days $21,809 went to New York firms. C. Gilbert Wolfenden has resigned as Civil Works Administrator for Indiana county, effective as of February 1. A. T. Craig, Comptroller, will act as Deputy Administrator for the present. Approximately $22,500 of special trusteed deposits in the Jefferson County National Bank, Brookville, are ready for distribution to depositors, E. B. Howard, bank receiver, said last week. One of Coalport's oldest and best known landmarks was destroyed by fire Monday afternoon when the Edward Greinader hotel on Main street was destroyed with an estimated loss of more than $40,000. The Allied Political club, one of the most prominent organizations in Clearfield county with headquarters in DuBois, has taken an appeal from the ruling of the state liquor control board which refused it a license. The Burgess of Brookville has adopted a schedule of fines for drunks in that town. The price of an ordinary staggering drunk is $5.00. For a noisy and disorderly one, $10.00, and all second offenders will draw ten days in jail. Rev. James R. E. Craighead is on the program for the February meeting of the County Ministers at Indiana to be held February 13. His subject is "What Should Our Public Schools and Colleges Be Doing in Character Education?" The sheep-killing coyote killed by state agents last week in Washington county, is now behind the bars of a cage in Harrisburg's zoo. It is one of a pack credited with the death of more than 200 sheep and innumerable game birds and animals. The Indiana Country Club family dinner held at the club last week was a real success. The first evening to have "music with the meal," and two hours of dancing. A number of the guests danced between the dinner courses. About 30 guests were there. Norman Park and his orchestra furnished the music. Newspaper advertising was held to be the most profitable form of public appeal by Irwin D. Wolf, secretary of Kaufman Department Stores, Inc., Pittsburgh, in an address at the official opening session of the Western Pennsylania Restaurant Association convention in the William Penn Hotel, Pittsburgh, recently. When Governor Pinchot criticized legislative officials in 1933 for buying so-called "loot packages" for members he said the $17,000 involved would feed SO many poor families for so many days it is now pointed out that the extra $8,500 involved in the purchase of 166 highway department cars would feed half that many families. At the annual meeting of the stockholders of the Fisher Department Stores, Inc., owners of the Bon Ton, S. W. Rose, of Greensburg, a former resident and merchant of Indiana was unanimously elected president, succeeding the late T. H. Fisher, who passed away December 9, last year. Mr. Rose, who formerly owned the store has been in charge since that death. Miss Martha Sansom, daughter of William L. Sansam, editor of the Clarion Democrat, and a former resident of Indiana, became the bride of Charles N. Nebel of New York City, on Saturday afternoon, January 27, at the Sansom residence, 708 Liberty street, Clarjon. The ceremony was performed by Rev. O. C. Jones of Chicago, a brother-in-law of the bride.

5. February 15, 1934 The Brookville American Brookville, PA
Article from The Brookville American, February 15, 1934

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Bank Receiver Returns Mr. H. Howard, Receiver of the Jefferson County National Bank this city, left several days on business trip Oklahoma expected to far could be has done about payment to in eiththe old or new accounts.

6. March 1, 1934 The Jeffersonian-Democrat Brookville, PA
Article from The Jeffersonian-Democrat, March 1, 1934

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SINKING COMMISSION RESTRAINED BONDS BY AN INJUNCTION Affidavit Worth of Bonds Declares Defaulted and Others Paid; Contest Over Proper Custodian Withholds Funds from Commission By an injunction granted by Judge William Darr on Tuesday the Jefferson County Sinking Fund Commission restrained from paying out any county funds to retire bonds. The injunction was granted on an affidavit by Samuel G. Rosengarten, of Philadelphia, represented by Alex Scribner, of Brookville, as attorney. Rosengarten holds $24,000 of Jefferson county court house bonds, the affidavit alleges, which due March but which were never paid. Suit in assumpsit is being brought to compel the payment these bonds. alleged that bonds falling due after March 1933, paid by the sinking fund commission, although the payment the ignored. Payment of $50,000 worth bonds plus interest are payable today, March but the injunction has stopped payment. Hearing on the injunction has been for March According to members of the sinking fund commission. the mission had on deposit prior March 1933, sufficient funds the principal banks of the county pay the bonds coming due March The was called and placed the Jefferson County National Bank, the mission taking from the bank collateral assignment of note Eldred township $40,000. The in bonds were not presented for payment March according to the commission. until after all banks in the had been closed by order of President Roosevelt. When the bonds were presented the bank closed, the funds have been restricted since, and the defaulted payment the $24.Bonds due September 1933, pointed by members of the sinking fund commission that the commission had the sinking fund moneys now in the hands of R. Reitz, retired county treasurer, amounting to proximately $63,000, the commission could pay defaulted bonds and apply balance, together with funds now under control of the commission, to the of bonds due March 1934 One member of the commission of the opinion that the money in the retired treasurer's hands available that the commission could take care of not only faulted bonds but those due March $50,000, well interest. Mr. Reitz has appealed from Judge Rimer's decision which Rimer held that sinking fund commission and not the treasurer the proper custodof sinking fund moneys. The commission composed the three county commissioners, three county auditors and the treasurer. The bonds question are of part the issue of court house bonds dated March

7. March 1, 1934 The Jeffersonian-Democrat Brookville, PA
Article from The Jeffersonian-Democrat, March 1, 1934

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Bank Will Old Verify Accounts Pass Books Should Presented at County National Next Week Work of verifying all old accounts in the Jefferson County National Bank, deposits made prior to March 1933, will begin Monday of next week, according to statement issued by Howard, the bank's receiver. Mr. Howard said: parties who have deposits in the Jefferson County National Bank which were vious March 1933, including Savings Deposits, Checking Accounts and Christmas Savings Accounts, requested to bring their pass books to the bank beginning Monday, March 1934, for the purpose of verification and reconcilement. the books have been verified and reconciled each depositor will be given chance to examine account before proof of claim is made. This one of the necessteps that the receiver must take before arrangements can be completed for issuing receiver's certificates and later paying dividends deposits to those to whom the bank is indebted as depositors.' Last week were notified of per cent sessment levied against them, amounting to To date 25 per cent distribution has been made on special accounts and the call for verification of old accounts will speed up the work towards distribution on them.

8. March 1, 1934 The Brookville American Brookville, PA
Article from The Brookville American, March 1, 1934

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COUNTY SUED FOR DEFAULT IN H. BONDS Restrained From PayUntil Bonds ing Retired BADLY INVOLVED CASE Upon application by Joseph Rosengarten, Jr., of Philadelphia, through his attorney Alex S. Scribner, of this place, Judge Wm. T. Darr filed preliminary injunction order restraining County Sinking Fund Commission from liquidating and further issues of the Court House bonds until they have retired the $24,000 block due and payable on March 1, 1933, year ago. suit equity has been filed by Mr Rosengarten Jr the payment the $24,000 that fell due and which is chiefly by him The preliminary injunction but the first in action, by local familiar with the cirCourt House bonds maturing today, Thursday March 1934 in the amount of $50,000 will have be permitted to default until something done the $24,000 bonds due and payable year The bonds in question might have been paid the time they due closing of local pository where the money had been segregated for the purpose It might also have been paid over to the holders of the bonds more recently except for the test case brought by former County Treasurer. Richard E. Reitz, through his attorney, Conrad, to keep the sinking in his own possession as County Treasurer. rather than permit to Treasthe Sinking Fund Commission, County McQuown Several days before the 1st day of March the Fund Commission upon the several depositories in the county the to tire the on 1st of that month turned to the Commission accordance with and in the Jefferson County National Bank to be paid. Payment not after late and closed March In the meantime the Jefferson County National Bank assigned 000 note given the bank by Eldred Township security deposit until was withdrawn. The Sinking Fund Commission has the will likely collect in due time to adjust matter brought up by Mr Rosengarten Though county defaulted on the bonds due payable they with funds in the appear to be bethe county to correct The ought not to be impaired by the order the President of the United States, in view the the money was quately Subsequent affairs at the bank tended to complicate rather clarify the situation said More than the credit ought to be injured by an officer tieing up sinking fund and to pay from fund until some litigation finished meantime the interest on defaulted bonds will be paid During time $1400 in interaccumulated than that in the suspension payment the $50,000 due payable today continued length time the interest bill county And the there the Mr. which might plied and big interest bill saved the Tuesday's order of the court is turnable for argument hearing Saturday, March o'clock Judge Bond understood to have been fixed at $500 but had not been filed at hour County Solicitor Lavelle Wilson will argue the County Sinking Fund Commission's case before the court.

9. March 1, 1934 The Brookville American Brookville, PA
Article from The Brookville American, March 1, 1934

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BANK RECEIVER CALLS FOR OLD ACCOUNT BOOKS Second Payment On Conservator Account Soon LIQUIDATION SLOW Receiver B. Howard of the JefferCounty National Bank, announced this week that verification of Pass Books containing the accounts' in bank about to commence. These individual bank books should be taken bank Monday or soon thereafter that immediate reconciliation can made the payof money these to March 1933 just as soon as condiwarrant Mr Howard also stated that ananother on the Conservato account would be made early the for the books old accounts. he said have in the County National which were deposited previous March 1933. including Deposits Checking Accounts and Christmas Savings Accounts are requested bring their Pass Books to the beginning Monday March 1934 the purverification and reconcilement "After the books have been verified and reconciled each depositor will be given chance to examine his account before Proof Claim made This one the necessary steps that the Receiver must take before arrangements completed for issuing Receiver's Certificates later paying dividends deposits to to whom the bank indebted Steps in the liquidation of the Bank appear be progressing with pleasThe appears to be eager all the details that will definite their and that other equally may tended to the earliest possible moDepositors should realize that involved is necessary terminate

10. March 12, 1934 Pittsburgh Sun-Telegraph Pittsburgh, PA
Article from Pittsburgh Sun-Telegraph, March 12, 1934

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HERE LAUNCH PROBE Former President Ill; Government Audit Completed Investigation of shortage ranging between $150,000 $200.000 in the closed Jefferson County National Bank of Brookville. Pa., today was in the hands of the United States Attorney here, while Leonard B. Shannon. former president and conservator. was in Philadelphia hospital suffering from nervous breakdown. Federal attorneys here refused to discuss the case other than to say an investigation was under Assistant United States Attorney James Marsh said he would be unable to say whether there were irregularities in the bank's affairs until investigators had made reportt. REPORT OF AUDIT Shannon was Democratic candidate for State Treasurer in the 1932 elections, polling more than 1,000,000 votes against the Republican winner. Charles A. Waters. He also had extensive business connections in Jefferson County. The report of an audit of his bank's books while he was conservator-from March until November. 1933-is now in the office of Comptroller of the Currency T. O'Connor. SHORTAGE BARED That report, it is understood. bares the shortage, indicates violations of national banking laws. shows that possibly half of in trust deposits, accepted after the bank's operations were restricted, are almost hopelessly tied up. Some of the shortage is in trust made after the bank holiday. When the bank moratorium suspended the nation's banking operations last March, the Jefferson County National Bank had deposits of about $1,486,000, capital and surplus of $213,000. Quick reorganization and early reopening was expected when the bank restricted operations at the end of the moratorium. NAMED CONSERVATOR Shannon, president and a director of the bank. was named its conservator and was bonded for $50,000. By November, however, it had become apparent that no quick dividend was to be paid depositors and that the bank was even unable to pay the segregated trust deposits received since March. Shannon went to the Miseracordia Hospital in Philadelphia with nervous breakdown. E. B. Howard, of Tulsa, Okla., became receiver. The bank closed, O'Connor sent Leon Gell to commence an audit on November 10. His report is now in O'Connor's office. It soon became apparent the books of the institution "were so involved was impossible properly to audit them. Meanwhile, however, it became possible to pay 25 per cent of the money in the 800 segregated trust deposits. Nothing has yet been paid on deposits made before the bank moratorium. NEW DIVIDEND SOON Another dividend of about 25 per cent is expected the trust deposits soon. Stockholders, subject to double liability laws, were called on to pay 100 per cent of their holdings early this month. Receiver Howard, questioned by the Sun-Telegraph on the shortage, declared: can only say that there is shortage. You'll have to go to the Comptroller of the Currency for further information." Until the crash of the Brookville bank and the restricting of the First National Bank of Sykesville, Shannon was leading citizen of Jefferson County Two weeks ago, Attorney W. N Conrad. claiming represent about half of Shannon's creditors. filed an involuntary bankruptcy action against the banker.

11. May 17, 1934 The Jeffersonian-Democrat Brookville, PA
Article from The Jeffersonian-Democrat, May 17, 1934

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Receiver For National Archie J. McMurray Named to Succeed E. B. Howard; Is Now In Charge Archie J. McMurray, of Brookville, last Friday was appointed receiver of the Jefferson oCunty National Bank by the comptroller of the currency Washington, vice E. Howard resigned. Mr. McMurray assumed his duties Monday morning. Mr. McMurray has been prominent in Democratic politics in this county for years, serving several terms as county chairman. He was not candidate for re-election this year. Mr. Howard. who has been the bank's receiver since last November, accompanied by Mrs. Howard. left Monday for his home in Tulsa, Okla. Mr. Howard resigned his position as receiver for the purpose of entering the race in Oklahoma for the position of congressman from that state, he having represented the First Oklahoma District in Congress for several terms. On leaving Mr. Howard asked the Jeffersonian Democrat to express all the people of Brookville and vicinity his sincere appreciation for the cooperation, without exception, given him in his work while here and, in parting, said: "Never did live in community were on direct relief, they shall be with finer We enjoyed ineligible for food relief. every moment of our stay, and However, if the work division have made friendships that, we check is less than the amount of hope, will last always. You have the food Relief Board order, the great people, great little city, will supplement to the amount of fine country. and our stay in the food order. For example, if your midst will be green spot in is food order of family receiving a our memory. In this Mrs. Howard week and member of the per joins me in re-echoing every family is assigned to work diviword.' Continued on Page 6)

12. June 3, 1934 Pittsburgh Sun-Telegraph Pittsburgh, PA
Article from Pittsburgh Sun-Telegraph, June 3, 1934

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BY PROPOSED UNDER ARREST CHEATING Charged With Misuse of $50,000; Once Candidate. Leonard B Shannon, former president the Jefferson County National Bank of Brookville, was arrested yesterday on federal warrant. He charged with misapplication of $52,534.88 of funds and credits the bank. The complaint was filed before the United in Pittsburgh by Risler. special agent of the Division of Justice. Shannon was Democratic candidate for State Treasurer in the 1932 elections. He polled more than 1.000.000 against the Republican winner. Waters. He was held under $25, 000 bond Last March. during a lengthy investigation affairs of the bank, Shannon suffered nervous breakdown was in Philadelphia hospital. The investigation was said to disclosed far greater than alleged in the complaint. One count the complaint of of funds of the bank between 1931, and November 1933, and another misapplication on September 27, 1933. The bank closed November When the bank moratorium suspended the nation's banking operations in March, 1933. the Jefferson County National Bank had had deposits of about capital, and surplus of Quick reorganization and early reopening was expected when the bank operations at the end of the moratorium president and di rector of bank, named and was bonded for By November it became apparent that no quick dividend was be paid and that the bank was even unable to pay the segregated trust deposits since March. B. Howard, of Tulsa, Okla. became receiver and Shannon went the Miseracordia Hospital in Philadelphia with nervous breakdown Shannon, in addition to his banking affairs, held large interests in gas and oil and farm real He about 50 years old and father of 13 children. Pittsburgher Originator of System That Would Save 1100 Per Cent in Costs. In most states persons away from home on election day cast their by mail. How the entire voting may vote by from the of the home, described beginning in the Telegraph tomorrow. The creator the system Ingram He has sent it on to President Roosevelt, Henry Ford and others for study and action. Telling of his plan. Ingram said "The idea of standing in line for hours, to have your by miscounts or appeal peo. ple. That's than 30 per cent the people vote. "Under system cost of voting would be about 25 cents ballot, compared with S3 or more under present methods, and The secrecy and sanctity of the ballot could be protected cannot be today." The first story. in tomorrow's Sun Telegraph. starts delivof the ballot at the home by mail carrier. The series cludes Illustrations which their story, how the proposed As this may be the next step toward reforms, follow the series and judge for yourself.

13. June 5, 1934 The Kane Republican Kane, PA
Article from The Kane Republican, June 5, 1934

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BANKER CHARGED WITH OF OVER $52,000 BROOKVILLE, June 5. Leonard P. Shannon, former president and conservator of the Jefferson County National bank, and well known citi zen of Brookville, was placed under arrest Saturday, charged with misapplication of $52,534.89 of funds and credits of the bank. The complaint was filed before the United States Commissioner in Pitts. burgh by C. F. Risler, special agent of the division of investigation, Department of Justice. Mr. Shannon was the Democratic candidate for state treasuren in the 1932 election. On the charge filed against him in Pittsburgh Saturday Mr. Shannon was held under $25,000 ball. Last March, during a lengthy government investigation of affairs of the bank, Shannan suffered a nervous break down and was in a Philadelphia hospital. The investigation was said to have disclosed a far greater shortage than alleged in the complaint. One count of the complaint avers misapplication of $50,734.88 of funds of the bank between January 4, 1931, and November 9, 1933, and another misapplication of $1,800 on September 27, 1933. The bank was closed November 9. When the bank moratorium suspended the nation's banking operations in March 1933, the Jefferson County National bank had had deposits of about $1,486,000 capital, and surplus of $213,000. Quick reorganization and early reopening was expected when the bank restricted operations at the end of the moratorium. Shannon, president and a director of the bank, was named conservator and was bonded for $50,000. By November it became apparent that no quick dividend was to be paid depositors and that the bank was unable to pay the segregated trusts deposits received since March. E. B. Howard, of Tulsa, Okla., became receiver and Shannon went to the Miseracordia hospital in Philadelphia with a nervous breakdown. Shannon, in addition to his banking affairs, held large interests in gas and oil properties and was interested in farm real estate. He is about 50 years old and father of 13 children.

14. June 7, 1934 The Jeffersonian-Democrat Brookville, PA
Article from The Jeffersonian-Democrat, June 7, 1934

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Placed Under Former President of Jefferson National Bank Arraigned Saturday Charged misapplication of of the funds and credits the Jefferson County National Bank, Leonard Shannon was taken into custody at his home here shortly last Saturby Federal agents. Shannon, former president and the bank, raigned before United States Commissioner Chapman, Clearfield, fixed his bond hearing waived The bond obtained by Attorney Shannon, father, Mr. Shanhad returned his home. The complaint against Shannon filed before the Commissioner Pittsburgh by Risspecial agent the Division Investigation for the of complaint misapplication funds the bank between January and November 1933, and another $1800 September When the bank closed on November Shannon, president director of the bank. was named and bonded the of $50,000. By Novembecame that no immediate dividend be forthcoming and Howof Tulsa, named rereiver. Shannon suffered nervous breakdown and went the Miseracordia Hospital Philadelphia, where he was patient many weeks. When the bank moratorium pended the nation's banking ations March 1933 the JefCounty National Bank had deposits nearly and surplus about Quick early reopenanticipated when leged shortages brought to light and receiver named the present time effort is being re-open the bank believed that be

15. June 8, 1934 The Brockway Record Brockway, PA
Article from The Brockway Record, June 8, 1934

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SHANNON ARRESTED Leonard Shannon, former presid and conservator of the Jefferson National Bank, well County known citizen of Brookville, under arrest Saturday, chargwith misapplication of of funds and credits of the bank. The complaint filed before the United States Commissioner in Pitts burgh Risler. special agent the division investigation. De partment of Justice. Mr. Shannon the Democratic candidate to state treasurer the election. On the charge filed against him in Pittsburgh Saturday Mr. Shannon was held $25,000 bail. Last March. during lengthy ernment investigation of affairs of the bank. Shannon suffered nervous breakdown and Philadelphia hospital. The investigation was said have far greater short than alleged the complaint One count complaint misapplication of of funds of the bank January 1933. and another misap plication September 1933. The bank closed November When the bank moratorium suspendthe nation's banking operations in March 1933. the Jefferson County Na tional Bank had had deposits of about capital, and surplus of Quick and early reopening expected when the bank operations the end of the Shannon, president and director bank. named conservator and bonded for By November became apparent no quick dividend was be paid depositors and that the bank to pay the segregated trust posits since March became ceiver, Shannon went Mis eracordia Hospital in nervous break down Shannon addition to his banking affairs, held interests and properties and interested farm real estate. about years and father of children.

16. August 2, 1934 Brookville Republican Brookville, PA
Article from Brookville Republican, August 2, 1934

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Archie McMurray Resigns Job As Bank Receiver Local Man Tendered Resignation July V. Snader, Connellsville, Is Appointed on Job. NO REASON Archie McMurray yesterday nounced his resignation as reeciver of the closed Jefferson County National Bank here, and the acting of Carroll Snader. has been receiver of the closed institution since the of B. Howard, original appointee to that position, May 12th. He stated his resignation was submitted July 24th, effective July 31st. Mr. Snader has been here in the capacity of accountant at the bank the receivership took place. He from Connellsville. He has made distinctly favorable impression on all with whom he has had dealings and has had wide experience in banking affairs. Affairs at the bank have been movong along rapidly as can be expect under present and general as evidenced by the statement of condition posted the bank windows, but have they not yet reached stage where definite any statement can made to dividends as to