Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-05-09
THE PIONEER BANK.
A Big Bonus for Charter Refused by
the State Legislature.
HOW THE DIFFICULTY WAS MET.
Financiering Prosecuted Under DiscOurag-
ing circumstances.
PLUCK AND BRAINS ARE REWARDED

The Bank of Pittsburg, the oldest institu-
tion of the kind in the city, is well known
in financial circles throughout the length
and breadth of the country. Its history has
been written so often as to be familiar to
almost every citizen, but now and then
something new in connection with it is
found in old documents or personal remInis'
cences which imparts q fresh interest to the
story.
The Bank Of Pfttsburg had its conception in
1910. In that year of commercial gloom and
uncertainty. the second of President Madison's
administration, Napoleon had issued decree
that all American vessels and cargoes arriving
in any of the ports of France OF countries occu-
pied by French troops must be seized and con-
demned. This was revoked soon after by the
Presidents proclamation But the feeling Of
indignation, especially against England, and
the embargo passed during President Jeffer-
sons administration, was followed by procla-
nation of President Madison interdicting
commercial intercourse with Great Britain.
At this critical period the manufacturers
of Pittsbnrg desiring to establish a
bank to afford them financial facilities, which
were much needed offered to the Legislature
of the State large bonus as compensation
for the privilege of a charter. An organiZa-
| tion was formed with this object in view, CON-
posed of the following named persons: Will
| lam wilkins, President, and Abraham Kirk
patrick, William McCandless, John Darragh,
James Martin, Thomas Cromwell William
Woods Nicholas Cunningham, Ephraim Pent-
land Robert Simpson, George Sutton, Henry
Fulton. Joseph McClurg, Robert Spencer,
Francis B. Holmes. John Scull, Thomas
.Iam6S MOrriSO0
James Riddle and jeremiah Barker, directors.
They had prepared the form of bank charter
with ST. 100000 capital and offered to transfer to
the State $4,000 of the capital stock, or $4,000
to each of the two proposed bridges across the
Allegheny and Monongahela rivers, and also
So 900 toward turnpiking the great State road;
also $4,000 for such public Improvements as
the Legislature should approve. The proposal
was declined, on the ground that it would be
impossible to raise such an amount of capital
in the depressed condition of the business in
terests of the city.
As an alternative the organization resolved
to carry on the business of banking without the
aid OF the State and formed an individual LA
bility partnership under the name of "The
Pittsburg Manufacturing Company" This was
in 1872 the year when war was declared against
by William Wilkins President; Alexander
Johnston, Jr., Chief Clerk, and George An
shutz, James Morrison, John Darrah, G. Cowan,
George Sutton, Thomas Cromwell and James
Riddle, directors. The association was emf
nently successful, being of great benefit to the
business men of the city. Besides bankingit did
little in insurance. On July 2S 1872 the first
policy was issued to protect new mansion
erected by William Wilkins on the site now oc-
cupied by the Monongahela House
In 1914 another and successful effort was
made to obtain a charter for the original pro-
ject 1.-THE Bank of Pittsburg." 1t passed the
Legislature and was signed by Governor Simon
Snyder. The Pittsburg Manufacturing Com
pany was closed up and its books, means and
muniments transferred to the Bank of Pitts
burg, formerly the nucleus of its new capital
and business. Other stockholders were soon
added. The capital was nominally $500, 600, but
owing to the scarcity of money in consequence
of the war, and the commercial revulsion
which followed it in 1870, and long after, the
whole of the capital was not called in until
1884, when John Harper became an officer of
the institution. He has been connected with
the bank as cashier and president ever SINCE
Although nearly 80 years old, he is hail and
hearty, visiting the bank every day and pre-
siding at the directors meetings.
Not one bank officer or director who was in
the Bank of P1ttsburg or in the Branch Bank
of the United States when Mr.. Harper entered
Office is alive to-day. George Shiras, Sr., is the
last of the stockholders whose names were en-
rolled on the dividend book of 1882 During the
n years of its existence the bank has never
failed to pay a semi-annual dividend. An at
tempt was made about 1861 to reorganize the
institution under the national banking law, but
it failed through the opposition of the female
stockholders, who were, and still are largely
in the majority.