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Pittsburgh Bank Fails. Pittsburgh. April Carnegie Trust company of Carnegie, suburb, failed to open its
18548. Carnegie Trust Company (Carnegie, PA)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- trust company
- Start Date
- April 27, 1925
- Location
- Carnegie, Pennsylvania (40.409, -80.083)
Metadata
- Model
- gpt-5-mini
- Short Digest
392857b5
Response Measures
None
Description
The Carnegie Trust Company was taken over by the Pennsylvania State Secretary of Banking and closed on orders April 27, 1925; articles uniformly blame frozen coal-industry assets (stagnation) rather than rumor. The institution was later placed in receivership and liquidated. I treat this as a suspension (state takeover) that resulted in permanent closure/receivership. OCR errors in some articles corrected (e.g., Cainegie -> Carnegie).
Events (2)
1.
April 27, 1925
Suspension
- Cause
- Local Shock
- Cause Details
- State secretary cited reserve fund below legal requirements due to frozen assets stemming from stagnation in the bituminous coal industry (large holdings of coal-company obligations).
- Newspaper Excerpt
- The trust company was the first to close, on orders from Peter G. Cameron, state secretary of banking. In statement Mr. Cameron said the reserve fund of the Carnegie Trust Company has been below legal requirements for some days.
- Source
- newspapers
2.
July 29, 1925
Receivership
- Newspaper Excerpt
- Appointment of ... 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. ... Frank W. Jackson, bank receiver, ... appeared ... .
- Source
- newspapers
Newspaper Articles (18)
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CARNEGIE COAL CO. PROPERTY RETURNED Associated PITTSBURG. April made Tuesday nouncement of the Carnegie that the property been returned to its Coal Co. had H. Sanford and original by John of the banks Bell. president suburb. which Carnegie Monday the closed the coal time the property of the transfer were The terms Depositors the Carnegie Trust Tuesday began their passbooks the bank in response from Peter Camerrequest the state banking secretary who has taken charge bank's First of the National Bank Carnegie remained closed officers the board directors announcing taken action their had the Mr Bell said First National Bank of Carnegie nancially throw its doors open to depositors within days. Cameron closing the Carnegie Trust said its reserve fund "had been below legal for some ing that the situation direct result the stagnation that has obtained in coal industry in for some months.
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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.
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50 HAVRE DE GRACE VOTERS OFF LIST Names Eliminated By Town Council For Non-Payment Of Taxes. Situation In Union Bituminous Fields Precarious, It Is Declared. PROTESTS ARE IGNORED Pittsburgh, April 27. State and Federal banking officials today began investigating the affairs of two Carnegie banks. the Carnegie Trust Company and the First National Bank of Carnegie, which closed their doors this The trust company was the first to close on orders from Peter G. Cameron, State Secretary of Banking. In state ment Mr. Cameron the reserve fund of the Carnegie Trust Company has been below legal requirements for some days. Canceled Checks, Receipts And Statements By City Treasurer Refused As Evidence. Acted To Avert Run. The First National closed few minutes after opening this morning. officials stating later that they took action "on their own accord to prevent run on the bank.' Both institutions, of which John T. Bell is president. are located in Carnegie, Pa. Adding to his statement that the reserve funds of the Carnegie Trust Company were below legal requirements. Secretary Cameron said Although every effort has been made by the com pany to build up the reserve to the required amount, has failed to do owing to the frozen condition of its assets which. in is direct result of stagnation that has obtained in the bituminous coal industry in Pennsyl vania for some months. the company being the holder of obligations of coal companies aggregating a considerable Sought To Protect Creditors. "Because of these itions was the duty of the Secretary Banking to take of the business and property of the trust company in order that the interests of the depositors and other creditors might be protected In statement. Mr. Bell said meeting of officials of the First National may be held in a few days and that the bank was sound financially. He said the bank would be reopened for business, but he did not indicate when. The Carnegie Trust Company has capital and surplus $700,000, its last financial report of April 9. 1925, showed, with deposits of more than $4,000,000 and assets listed as $5,664,550 The First National has capital of and surplus and undivided $100,000 profits $165,000 Its report of April 6. 1925, showed deposits of $1,759,932 and total assets of $2,127,881 Havre de Grace. April 27 (Special) The final meeting of the Mayor and City Council to revise the list of voters was held here tonight. Previously, by hand bills. the Council had given notice to 135 to be present tonight and show why their should not be stricken from the list of voters. Of these 135 names 65 were in dispute, 17 dead. 15 removed from the city, 34 not registered and 5 delinquent in taxes. The real contest was over the first 65 names. Executive Session Ordered. Many citizens appeared with their tax and canceled checks showing that taxes had been paid in regular manner. Council, over the of the Mayor, went into When the citizens were admitted one at time they were denied the right to appear by counsel. Many of the citizens. after waiting three hours be called. went home. The Council refused to consider can celed checks. tax receipts or the sworn statements the City Treasurer or other evidence offered. Adopted By 4-To-1 Vote. Councilman J. Lawson Gilbert moved to strike fifty names from the list because non-payment of taxes, in spite of the exhibited receipts and canceled checks. Mayor George T. Pennington, in putting the motion, said he did 80 without in it' any way whatsoever. The motion was adopted four A. H. Wood. city clerk. then read a legal opinion, which stated that neither he, the Council nor anyone else had any right to strike from the list now, as the law provides that voters in dispute shall be stricken off on April 20; that if the names were stricken off now, there would no chance for hearing before the City Council. Inasmuch BR the next Monday, it is claimed that the Council has delayed so that those would not have chance to take an appeal before election day. cago's oldest families with that of British barrister. F. Hamilton McCormickGoodhart was born in England and is British subject. Frederick E. McCormick-Goodhart, his father. died last year at Chillum Park, Md. Shortly before the illness his came to Chicago in hope of effecting reconciliation with her husband, who is employed here in the offices of the McCormick estate. Toronto Gets Beer On May 15. Toronto, April Premier Ferguson today that the sale of 4.4 per cent. beer would begin on or about May 15. Seek Support For Mayor. Most of the new voters are supporters of Mayor George T. Pennington, who is candidate for reelection. The registration is large because the Council, disregarding the repeated request of the Mayor, has refused to repair the streets and put garbage cart in operation. as the citizens have requested. The citizens have registered so as to put in the Council men who will support the Mayor. Councilman A. Lincoln Lyon, who is candidate for Mayor against Mayor Pennington, led the fight to strike off the voters' names. It is generally conceded here that practically all those names dispute are favorable to Mayor Pennington.
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HOLDINGS CARNEGIE BANKS FAIL ORIGINAL OWNERS GET PROP. ERTY BACK-CAMERON EX. PLAINS STATUS TRUST COMPANY, NOW CLOSED. (By Associated Press) April ment today that the property of the Carnegie company been returned to its original ownand M. Stenby Bell, the three times interest suburb, which closed yesterday. At the time Mr. Bell purchased the coal the was talized $8,000,000. The terms of the transfer not Depositors the Carnegie Trust company began their passbooks in request from Peter retary of the ment, who has taken charge of the bank's Scranton, Pa. First National Bank of Carnegie today, officers the had taken acrun bank. Statement By Bell. Mr. Bell said the First National may throw open to deSecretary in closing the Carnegie Trust said its fund "had been below the legal requirements for some adding that the "the direct the has obtained the coal indusfor Ten state began the inventory the assets of the trust Under banking laws appraisers fix of the assets the inventory has completed. appraisal to form the basis for Thomas, chief national bank examiner the local federal reserve district, appeared the First National bank of Carnegie today. When what he here he rejust his was called Mr. Bell's statement that the would hope Bell is right.
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Frozen Condition Of Assets Said To Result From Poor Bituminous Conditions MISS PRATT SPEAKS MAY REOPEN SOON Miss Julia Williamson, who with Girl Scout Work Philadelphia and Miss Sarah Pratt, general of the speakers the last the were series held Junior League North Duke street, ernoon. There was large attendance members. Williamson gave an interesting talk social work in its relation community groups. She stressed the point that people working groups learn along with others and be the assistance others. Group work, she said, builds up friendship, but warned the league to beware organization. Speaking Girl Miss Williamson said, "Their ideal service They get excellent trainfirst aid and are kept out These girls the best They are given chance try out their wings and good training for future life the domestic overlooked." The Girl Scout the speakhelp all classes girls. that the world working together for ports for scouts order that they may from another and camp with each other. Pratt told of the work the attention the that there between and rang ing age from to Kepler hall, which ideal place for the city stay until becomes acquainted. 1,005 transients housed last year. She also told of the various classes connected with the association, each of which has its own peal some girl. The annual election of officers the league be held next Monday the league rooms. This afternoon weekly be conducted by the Visiting Nurse Association with Norman Snyder Miss Mary Beates charge, assisted by Mrs. Myron Jones Pittsburgh, April federal banking to-day beinvestigating the affairs the Carnegie banks, the Carnegie Trust Company the First National Bank Carnegie, which closed their doors morning. The trust company the first close orders from Peter Cameron, state of banking. In statement Mr. Cameron reserve fund the Carnegie Trust Company has been below legal requirements The First National closed few minutes after opening this morning, officials stating later that they took action their accord vent run the Both stitutions which John Bell president. located Carnegie. Adding his statement that the reserve funds the Carnegie Trust Company were legal requireSecretary Cameron Blames Coal Situation. "Although every has been made by the company build the the has failed owing the condition its assets which, direct result that obtained the coal industry Pennsylvania for Mr. Bell said the sound the bank reopened for he did not indicate when. The Carnegie Trust Company has capital surplus last report April showed. deposits more than and assets listed The First National capital surplus and divided profits $165,000. port April 1925 showed deposand total assets $2,127,881.
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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.
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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
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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
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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
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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
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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
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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.
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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-
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CONSIDER NAMING BANK RECEIVER ment receiver take the fairs John Bell, president of the failed Carnegie Trust Company and operator, who filed voluntary petition of bankruptcy, last week was today taken under Federal Judge Robert M. Gibson until Thursday James N. Jarvis, of the creditors was proposed by counsel for Bell, Lowry Humes, the State Banking Department, nounced he had to make, but opposed Jarvis. Counsel for the small depositors protecti committee of Carnegie requested that trust company be named as receiver.
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APPRAISAL OF BANK ASSETS HAS BEEN Sept. closed Carnegie Trust Company, which John Bell president. amount an mated value of accordappraisal of the ing filed the office Major Lowry Humes, day counsel the State Banking Department. The inventory placed liabilities when the institution closed Should the state realize the full amount the appraisal, pointed the depositors, bering about 10,000 would receive cents dollar. work converting cash for payment depositors beign tomorrow, Frank bank receiver said. statement revealed included savings accounts amounting to which deposited by school children Carnegie. bank had hand and banks $247,775.83 when closed. report $1,054,540.62.
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APPRAISE BANK ASSETS Carnegie Depositors Receive Approximately Cents On Dollar (By the Associated Press) closed Carnegie Trust which Bell amount of with an timated value cording appraisal of filed the office today Major Lowry Humes, special the State Banking Department. The at institution closed April Should the the full appraisal, pointout, depositors, about thousand, would receive cents on the dollar. The converting the assets cash for payment depositors begin tomorrow, Frank W. receiver, statement revealed that liabiliincluded savings accounts amounting of which deposited by school children of Carnegie. The bank had cash hand and banks amounting to $247,775.83 when closed, the claims amount$1,054,540.62.
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BELL RECEIVERS WON'T SEIZE BURIAL GROUND Banker's $70,000 Trickery. SOSSONG TRIALS SET FOR MARCH Receivers of the defunct Carnegie Trust Company have no intention of desecrating the Chartiers Cemetery. which John A. * used to get $70,000 for himself That contained petition filed in pleas court asking the of yesterday equity proceedings brought by the cemetery corporation to stop foreclosure on the $70,000 worth of notes for which Bell used the burial grounds collateral Another development in the general Bell scandal yesterday was the annonncement by Samuel H. Gardner, district attorney, that William F. SesAttorney Leo F. song and his Sussong, would be brought to trial March 1. They are Indicted for emhearting $118,800 of the funds of the Carnegie Ten Cent Building and Loan Association and the Carnegie Standand Building and Loan Association ASSOCIATE OF BELL The father was secretary of the and the son counsel for them. The father was director of the collapsed Carnegie Trust Company and a close personal and business associate of Bell. In the case, Bell has been charged with borrowing $70,000 from the Carnegie Trust Company on notes of the cemetery company without the knowledge of the cemetery officials. Frank W. Jackson, deputy banking secretary m charge of the defunct bank, brought proceedings to foreclose on the cemetery for the payment of the notes. The cemetery officials then brought equity proceedings to stop the foreclosure on the assumption that manipulations of Bell were unknown to the company officials. SOSSONGS STILL IN JAIL The bank receiver answered yesterday that it made no statements that there are threats of "desecration to the cemetery which would inspire haunting fears in the minds of those whose kin are burled in the cemetery," and that there have been no threats of encroachment on the rights of the living or the dead. The Sessongs have been in jail since last October, when their bondsmen withdrew. An effort was made recently to have the elder Sossong declared insane, but two alienists, after examining him, declared him to be sane. The two were ousted from the building and loan associations by the state banking department when their embezzlements discovered, It is believed that a severance of the cases be asked where is charged. Gardner said he did not know which would be tried first. The indictments charge them with forgery and entry in manipulating the funds of the two organizations.