18542. First National Bank (Canton, PA)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
2505
Charter Number
2505
Start Date
July 13, 1919
Location
Canton, Pennsylvania (41.656, -76.853)

Metadata

Model
gpt-5-mini
Short Digest
94bc92ed

Response Measures

None

Description

Newspaper articles (July 1919) report a run on the First National Bank of Canton, PA caused by public disclosures/letters by Comptroller Williams that allegedly damaged the bank's credit. Withdrawals of about $100,000 are reported and a temporary injunction/restraining order was sought; there is no mention of a suspension, receivership, or permanent closure in these articles.

Events (2)

1. February 16, 1881 Chartered
Source
historical_nic
2. July 13, 1919 Run
Cause
Rumor Or Misinformation
Cause Details
Comptroller of the Currency (Williams) allegedly circulated damaging reports/letters about the bank's condition to depositors and the public, prompting withdrawals (claimed $100,000).
Measures
Bank (McFadden) sought and obtained a temporary injunction/restraining order in federal court to prevent Comptroller from circulating further damaging information; legal action pending to make order permanent.
Newspaper Excerpt
By divulging the condition of the bank to the public, and by writing letters detrimental to its credit, Mr. McFadden said, the Controller had caused a run upon the bank that had been difficult to weather.
Source
newspapers

Newspaper Articles (4)

Article from The Washington Times, July 13, 1919

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Article Text

MOVE TO ABOLISH COMPTROLLER'S JOB Fight Will Be Made In Congress Against Office Held By J. S. Williams. Sequels to the bitter fight before the Senate Banking and Currency Committee against the nomination of John Skelton Williams as Comptroller of the Currency will be enacted in determined efforts on the floors of both houses of Congress to abolish the office of comptroller. Whether the Senate committee succeeds in getting the scalp of John Skelton Williams or merely succeeds in holding up his nomination indefinitely, Senator Calder of New York, it is understood, intends to press his resolution demanding the abolishment of the office of the Comptroller of the Currency as unnecessáry. This resolution and one of similar nature offered in the House by Congressman McFadden of Pennsylvania already are before the Banking and Currency Committees of the two houses. With sentiment in the committee said to be strongly in favor of them, it will not require great effort, it is believed, to, bring them up on the fioor. Virtual Impeachment. Another resolution by Congressman McFadden, virtually calling for the impeachment of Mr. Williams, also is before the House. Mr. McFadden declined to comment on either resolution today, in view of the fact that he is to be a witness before the Senate committee. That the fight against Mr. Williams has become nation-wide among the banking institutions is evident from the mass of communications pouring into the office of the committee. A banker from San Fráncisco, whose name is withheld, claiming that Mr. Williams had endeavored to discipline him for personal reasons by using the power of his office, is the latest person who seeks to be & witness. Congressman McFadden. who is a member on the House Banking and Currency Committee, will charge that Comptroller Williams sought to destroy the bank of which he is president for the reason that he demanded the Comptroller's impeachment on the floor of the House during the last session. Alleges Same Tactics. He declares that Mr. Williams used the same methods against his institution, the First National Bank of Canton, Pa., that he used against the Riggs National Bank of this city. Congressman MeFadden says he is prepared to show the committee that the power of the Comptroller of the Currency was used in an attempt to destroy his bank for no other reason than that he had exercised his rights as a member of Congress to disclose the methods employed by Mr. Williams to further his own personal ends A suit in equity against Comptroller Williams, brought by Congressman McFadden on behalf of the First National Bank is pending before the District Court of the United States for the middle district of Pennsylvania A temporary injunction, restraining Mr. Williams from persecution of the bank, has been ordered by the judge of that court. The application for the injunction sets forth that Comptroller Williams, among other things, be restrained from "disclosing to the officers, directors, agents, stockholders, or employes of the Farmers' National Bank of Canton, Pa., any information with respect to the private business or affairs of the complainant or its officers." Enjoin Comptroller. It seeks further, besides preventing imposition of fines for failure to produce reports and statements, as called for in the Riggs Bank case, to enjoin the Comptroller from "using the powers of the office of the Comptroller of the Currency over the complainant, for the private and personal purposes of the defendant, without reference to the proper duties and functions of the said office and in particular for the purpose of impairing or destroying the credit and reputation of the camplainant and its president and its and his property and business." Congressman McFadden charges that immediately after he made his speech in the House against Mr. Williams, the Comptroller conducted such a publicity campaign against him, impugning the standing of his bank, that it caused a run on the institution. As a result of this run, withdrawals by depositors of $100,000 were made. Mr. Williams deliberately sought, he claims, to put the bank into the hands of a receiver and turn it over to the Farmers' National Bank, a rival institution. Poole to Testify. When the Senate Banking and Currency Committee meets tomorrow, John Poole, president of the Federal National Bank of Washington, is expected to be the first witness. Another witness, A. E. Jones, of the


Article from New-York Tribune, July 20, 1919

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place to Mr. McFadden and all the papers and other evidence he may haye. # Williams Enters Denial "Meanwhile, it is fair that I be allowed to inform the public that I had not the slightest financial interest in the Arlington Hotel transaction, directly or indirectly. Secretary McAdoo in March, 1918, wrote Representative Pou, of North Carolina, on this matter, giving him the facts. The law firm of Williams & Mullen, of Richmond, Va., of which my brother-in-law, Lewis C. Williams, is a member, has been counsel for Winston & Co. for the last five years or more. They are large contractors who controlled the Arlington property. I do not know what legal fees or compensations Williams & Mullen may have received for their services in the Arlington Hotel transaction. Whatever they may have charged was for their professional services, in which I had no participation. That is all the foundation I can imagine for McFadden's insinuations, which I denounce again as absolutely false and which have all the appearance of being dictated by intense malice. "Those who have given attention to this matter will recall that a Pennsylvania bank, of which Mr. McFadden is president, has come under my official notice in an unpleasant way and that I have expressed, both officially and publicly, the opinion that Mr. McFadden is responsible for whatever unfortunate conditions might exist." Mr. McFadden indicated that the Controller's activities In connection with the First National Bank of Canton, Penn., of which he was president, would furnish the grounds for one of his impeachment charges. # Courts To Be Appealed To A temporary injunction to restrain the Controller from using his authority in such a way as to interfere with the business of the bank is now pending in the United States District Court of the Middle District of Pennsylvania, he said. By divulging the condition of the bank to the public, and by writing letters detrimental to its credit, Mr. McFadden said, the Controller had caused a run upon the bank that had been difficult to weather. The injunction sought would restrain the Controller from asking further information regarding the bank's condition.


Article from New-York Tribune, July 20, 1919

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place to Mr. McFadden and all the papers and other evidence he may haye. # Williams Enters Denial "Meanwhile, it is fair that I be allowed to inform the public that I had not the slightest financial interest in the Arlington Hotel transaction, directly or indirectly. Secretary McAdoo in March, 1918, wrote Representative Pou, of North Carolina, on this matter, giving him the facts. The law firm of Williams & Mullen, of Richmond, Va., of which my brother-in-law, Lewis C. Williams, is a member, has been counsel for Winston & Co. for the last five years or more. They are large contractors who controlled the Arlington property. I do not know what legal fees or compensations Williams & Mullen may have received for their services in the Arlington Hotel transaction. Whatever they may have charged was for their professional services, in which I had no participation. That is all the foundation I can imagine for McFadden's insinuations, which I denounce again as absolutely false and which have all the appearance of being dictated by intense malice. "Those who have given attention to this matter will recall that a Pennsylvania bank, of which Mr. McFadden is president, has come under my official notice in an unpleasant way and that I have expressed, both officially and publicly, the opinion that Mr. McFadden is responsible for whatever unfortunate conditions might exist." Mr. McFadden indicated that the Controller's activities In connection with the First National Bank of Canton, Penn., of which he was president, would furnish the grounds for one of his impeachment charges. # Courts To Be Appealed To A temporary injunction to restrain the Controller from using his authority in such a way as to interfere with the business of the bank is now pending in the United States District Court of the Middle District of Pennsylvania, he said. By divulging the condition of the bank to the public, and by writing letters detrimental to its credit, Mr. McFadden said, the Controller had caused a run upon the bank that had been difficult to weather. The injunction sought would restrain the Controller from asking further information regarding the bank's condition.


Article from The Washington Times, July 20, 1919

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# Wants Witnesses Produced. Congressman Royal C. Johnson moved that the committee go into executive session. Mr. Pou objected, saying that he was "perfectly willing for any charges Mr. McFadden has to make to be made publicly." Mr. Pou held that Mr. McFadden should produce witnesses and evidence to make out a prima facie case before action was had on the resolution. Mr. McFadden is president of the First National Bank, of Canton, Pa. He told newspaper men that he sought last winter to have an investigation of Mr. Williams' official conduct. "I introduced a resolution similar to the one now under consideration," Mr. McFadden said, "and almost immediately Mr. Williams began a conspiracy to start a run on my bank. "He sent letters throughout my district to my depositors, and he wrote many others asking for information. But that I had funds to meet all outstanding obligations he would have succeeded in ruining me." Mr. McFadden applied to the Federal court of the Third district of Pennsylvania and was granted a temporary restraining order against Mr. Williams' circulating reports that were damaging to his bank. "The final briefs on which I expect to have the order made permanent were filed only last week," Mr. McFadden said. He says he is determined to demand impeachment of Mr. Williams should he be confirmed for renomination by the Senate. "What course will you take if the Senate fails to confirm the nomination?" he was asked. "I am not familiar with the law along that line, but I will look into it thoroughly and will be guided by a course of action that will insure prosecution," he answered. Mr. McFadden said he had four distinct charges to make against Mr. Williams which affect his official con-