19184. Sons of Italy State Bank (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 2, 1917
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
51644796

Response Measures

None

Description

Newspaper articles (Nov 2 and Nov 26, 1917) report state banking authorities and the Attorney General initiating court action to close the Sons of Italy State Bank for illegal/usurious practices and asking that a receiver be named. No run is described in the articles; the action is government-initiated and appears to lead toward permanent closure/receivership (proceedings to name a receiver were pending).

Events (1)

1. November 2, 1917 Suspension
Cause
Government Action
Cause Details
State Banking Department and Attorney General filed court action seeking to close the bank for alleged illegal/usurious practices and irregular loans; petition asked that a receiver be named.
Newspaper Excerpt
action taken in the Dauphin County Courts to close the bank for alleged irregular and illegal practices ... the action had been taken against the bank only after the bank repeatedly ignored the orders of the banking department to discontinue their alleged illegal practices.
Source
newspapers

Newspaper Articles (2)

Article from Evening Public Ledger, November 2, 1917

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Article Text

ACTION TAKEN TO CLOSE SONS OF ITALY BANK Illegal Practices, Including "Loan Shark" Business, Charged by State Banking Officials The State Attorney General's Department today at the instance of the State Banking Department served notice through the Sheriff's office of this county on the Sons of Italy State Bank, at Seventh and Christian streets, notifying the bank officials of an action taken in the Dauphin County Courts to close the bank for alleged irregular and illegal practices. Deputy Attorney General Joseph L. Kun, at his offices in the Lincoln Building. stated that the action had been taken against the bank only after the bank repeatedly ignored the orders of the banking department to discontinue their alleged illegal practices. Mr. Kun stated that it is alleged the bank has for a long time, against the objections of the banking department, charged its small depositors and borrowers usurious interest running up to 12 and 15 per cent and several of the officers and directors of the bank have made personal loans from the banks funds in excess of the amount allowed by law and have been guilty of other irregular practices. It is alleged that the bank has been attempting to conduct a "loan shark" business under a State banking charter, as while the bank apparently only made the legal charge of 6 per cent interest on loans they deducted the interest from the loan and then made the borrower repay the principal in weekly inst allments, charging interest. however, for the full amount of the loan until it was paid, the borrower never receiving the full amount of the loan and then paying interest at a yearly rate for the full amount of the loan, when he was reducing the loan by weekly payments.


Article from Harrisburg Telegraph, November 26, 1917

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Article Text

Rules to this effect have been put into effect by Superintendent George A. Shreiner, of the Department of Public Grounds and Buildings, and will result in a short time in the changing of the force. A number of the men now members of the capitol police are veterans of the Civil War and have also served the commonwealth long enough to go upon the pension list for those who have been twenty years on duty in departments of the state government. When they retire men in the prime of life will succeed them. The capitol force is composed of a sergeant of police, twenty policemen and five night watchmen. Since the outbreak of the war details of state policemen have also been on duty at the public buildings. New Rules Soon-New rules of practice are being worked out by members of the State Public Service Commission and will likely be ready to promulgate within a few weeks. The rules have been worked out after several years' experience under the act of 1913 and will cover proceedings not only before the commission itself, but for the various bureaus handling the numerous details of its operations. To Select Site-Members of the state commission to select the site for the proposed Eastern State Hospital for the insane, appointed on Saturday by the Governor, will be called to meet within a short time and will inspect sites in the Cumberland Valley and in Lancaster, York and other eastern counties. The provision for purchase of a site was made by the last Legislature which also voted funds to begin construction of the new Western State Insane Hospital to be located not far from Irwin. The new eastern commission is composed of Maurice Wertz, Waynesboro; J. J. Corson, Jr., Norristown; Charles T. Thomas, Whitford; Edgar F. Heffner, Lock Haven, and Dr. Charles T. Aikens, Selinsgrove. Valuation Too Low. - State Highway Commissioner J. Denny O'Neil in a statement just issued criticised the system of valuing properties for taxation purposes in counties of the state, declaring that in many of the counties the assessments were not only too low, but inequitable and that there should be action taken by county authorities either through a board of tax revision or by commissioners to adjust matters. The result, he said, would be a big increase in taxable valuation of many counties and enable them to take up new road improvement plans. The commission also declares his belief that the state would get $3,500,000 from automobile licenses during 1918 and that there would have to be big improvements to care for war traffic. Compensation Hearings. - Chester W. Cummings, referree in compensation, heard two applications for compensation to-day against the Philadelphia and Reading Railway Company, the applicants being men injured at Rutherford, Benjamin F. Ford, Derry street, who lost an eye January 30, and H. Jalmer Peterson, Hummelstown, who lost the use of one hand as a machinist by the crushing of several fingers. Should Learn to Play. - People in Pennsyl are getting SO that they do not know how to play declares Dr. Samuel G. Dixon, State Commissioner of Health in a week-end talk. Dr. Dixon says that there should be a time fixed by every man and woman in which there should be relaxing and amusement every day. Kniffen Named-Governor Brumbaugh to-day appointed Luther M. Kniffen, Wilkes-Barre, a member of the state board of undertakers to succeed the late Albert E. Miller, Kingston. Board to Meet-The State Defense Commission has been called for a special meeting at the Governor's office to-morrow for discussion of war problems in relation to agriculture and food conservation. Bank Case Continued-The Dauphin county court to-day continued indefinitely the proceedings against the Sons of Italy state bank of Philadelphia, in which the state authorities had asked a rule to show cause why a receiver should not be named. More Smallpox-Eleven new cases of smallpox, some of which are declared to have been traceable to contact with patients with a man who served as a member of an election board in Clearfield county while suffering from the disease, were reported to the State Department of Health to-day from the hamlet of Blue Ball