Fayette City National Bank - Fayette City, PA

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 6800
Charter Number: 6800
Start Date: June 3, 1927
Location: Fayette City, Pennsylvania (40.100, -79.841)

Metadata

Model: gpt-5-mini
Short Digest: 111f17fe

Response Measures

None

Receivership Details

Depositor recovery rate: 25.5%
Date receivership started: 1927-07-28
Date receivership terminated: 1933-03-01
Share of assets assessed as good: 21.3%
Share of assets assessed as doubtful: 30.4%
Share of assets assessed as worthless: 48.3%

Description

The articles describe the Fayette City National Bank becoming insolvent/closed in mid-1927 with a receiver (J. Howard Kelly) appointed and multiple suits by the receiver. No contemporaneous newspaper text in these excerpts describes a depositor run; failures are attributed to mismanagement, unsecured loans, and insolvency. I therefore classify this as a suspension/closure with receivership.

Events (4)

1. May 26, 1903 Chartered

Source: historical_nic

2. June 3, 1927 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank became insolvent due to alleged gross mismanagement, approval of unsecured loans above legal limits and large losses (petition cites about $758,948.62 lost and total liabilities over $2,125,163.97).
Newspaper Excerpt: The bank became insolvent last June 3.
Source: newspapers

3. July 28, 1927 Receivership

Source: historical_nic

4. * Receivership

Newspaper Excerpt: Suit for the recovery ... was filed ... by J. Howard Kelly, receiver for the defunct Fayette City bank ... J. Howard Kelly, receiver for the defunct Fayette City National Bank, today filed suit ... to recover $758,948.62 which he avers the bank lost ... The petition ... the total amount of liabilities ... the Fayette City National Bank ... J. Howard Kelly, bank receiver, will be a witness ... .
Source: newspapers

Newspaper Articles (5)

1. September 2, 1927 The Pittsburgh Press Pittsburgh, PA

Article from The Pittsburgh Press, September 2, 1927

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Article Text

SEEK DEPOSIT RETURN Bank Receiver Says Money Was IIlegally Withdrawn. Suit for the recovery of $14,413.56 which he alleges was illegally withdrawn from the Fayette City National bank and deposited in the Mellon National bank was filed late yesterday in common pleas court by J. Howard Kelly, receiver for the defunct Fayette City bank against John S. Patterson. Cora J. Patterson and the Mellon bank The bank became insolvent last June 3. on which date. according to Kelly, George H. Patterson, without authority from either John S. Patterson or Cora J. Patterson, signed their names and his own to two bank drafts. the one for $11,334 48 and the other for $3,079. These drafts later were placed on deposit at the Pittsburgh institution to the detriment of other stockholders and depositors of the Fayette City institution, it was alleged.

2. September 3, 1927 The Daily Herald Monongahela, PA

Article from The Daily Herald, September 3, 1927

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Article Text

BANK RECEIVER SUES REGAIN Two suits in assumpsit to for the benefit depositors the Fayette City National Bank were filed in mon pleas court terday by receiver, Howard against John Patterson Mellon National Bank, garnishees. alleged in the petition that George H. Patterson, without authority, instructions, signed name of John PatterGeorge Patterson, check for which cashed and the money deposited the Mellon National Bank of burgh, the money having been withdrawn before the Fayette City closed June

3. March 1, 1929 Intelligencer Journal Lancaster, PA

Article from Intelligencer Journal, March 1, 1929

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Article Text

CUBAN PRESIDENT OF Prominent Political Leaders Among Number of Arrests By Police (UP) -President Gerardo Machado issued statement Thursday night regarding police nouncements last night discovery revolutionary plot Cuba the nation of her ture the The President was marked for in the plot, acording to miltary turbance which turmoil the plotters that the United States would be forced of arrests have been made, including prominent political leaders Cuba, and police warrents the arrest number of persons in all. Officials said they had found papers that the were outside ing funds for the purchase of munifor armed President Machado indicated that the plotters would dealt but he said "the country can rest assured that the law be without passion without exaggeration of any kind." Statement His "Above all want to make public my gratitude to all who their unconditional support the ment account report published our local press. "The information given out to the press refers to the detention by police order judicial powers the insidious and propaganda carried out elements cused, although are known have vested no authority. Cause "Therefore there no reason to be alarmed future government people with me guarantee the tranquility the counconfidence, furthermore, the fair mindedness of courts which charge of placing resopnsibility the can rest sured that the applied without and without exageration of any kind. "Signed, "GERARDO MACHADO." The was revealed Judicial Chief Police Alfonso Fors, made public in court the rammifications plot when he asked for warrants for search and seizure. BANK RECEIVER SUES Howard receiver of Fayette City National bank, files recover from four directors and two bankruptcy trustees.

4. March 1, 1929 The Morning Herald Uniontown, PA

Article from The Morning Herald, March 1, 1929

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Article Text

FAYETTE CITY BANK RECEIVER BRINGS SUIT Officials and Directors Made Defendants In Civil Case BROWNS INCLUDED PITTSBURGH, Feb. 28. - J. How and Kelley, receiver for the defunct Fayette City National Bank, today filed suit In Federal court against six officials and directors of the bank to recovers, $758,948.62 which he avers the bank lost as a result of mismanagement and approval of unsecured loans which could not be collected. The suit is the direct outgrowth of alleged manipulations of which Quy W. Brown, Fayette county politician and banker, was convicted and to which Jeese R. Brown, his brother, pleaded no defense. The defendants In the sult are A. P: Barnum, J. L. Krepps, George M. Boyd, James M. Clark, H. B. Dode, trustee In bankruptcy of Andrew Brown, late president of the defunct bank, and Carl Woodward, trustee in bankruptcy for the Brown brothers. The petition acts forth that the directors and officers of the bank permitted Individual and loan concerns to borrow above the legal IlmIt pertaining to national banks which is one tenth of the capital stock and surplus. This amount was $225,000 for the Fayette City National Bank, and the loan limit was $22,500. It was declared that a total of $97,650, above the loan limit was permitted; and that through "gross mismanagement" a total of $561,298.62 was lost, bringing the entire loss es sustained by the bank through the "negiigence of Its directors" to $758. The prayer of the petition does not ask for definite amount, but requests "rellef as may to this honorable court may be deemed just and equitable." The defendants are designated by the petition as follows: Andrew Brown, deceased, president of the Fayette City National Bank; Guy W. Brown, assistant cashier, 1905. 1912; Oashier 1912-1921; second vice president 1921-24; and first vice presi. dent 1924-untll the bank closed July 6, 1927; Jesse R. Brown, assistant cashier 1912-21, cashier 1921-24, sec. and vice president 1924-until close; David R. Barnum, second assistant cashier 1920-21, first assistant cashier 1921-24, and cashier 1924-until olose. The others were directors only. The total amount of liabilities of the Fayette City National Bank to creditors aggregated $2,125,163.97, the petition avers. In order to help meet these debts the stockholders were as sessed $100 or par for the 750 shar 08 of stock. A total of $32,500 has been collected, It is stated, and $2,500 more can be secured, but "because of the Insolvency of other stock holders the bank will lose $40,

5. April 4, 1929 The Morning Herald Uniontown, PA

Article from The Morning Herald, April 4, 1929

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Article Text

ANOTHER SUIT OVER FAYETTE CITY CRASH A suit to recover principal and interest on two $1,000 bonds which were never paid by reason of the failure of the Fayette City National Bank, received the attention of Judge Henderson in court room No. 3 Wednesday morning. The Quaker City National Bank of Philadelphia is the plaintiff and Washington township the defendant. The township It developed had placed the money and necessary in terest in the bank on June 1, 1927, in anticipation of the maturity of the bonds. A month after the bonds were due It 16 understood Guy W. Brown sent a cashier's check to the Philadelphia Institution, but before it could be honored, the Fayette City bank had been closed. The Philadelphia bank Insists that the township is still liable for the money, while the supervisors assert that judgment should be obtained against the bank. The Philadelphia concern believes the law to be that the judgment should be against the township who in turn can sue the bank. J. Howard Kelly, bank receiver, will be a witness when the hearing resumes this afternoon. Nearly half of the people who RTrived the Philippines last year were Chinese.