Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-11-08
A CRASH AT CORY.
The First National Bank Closed on
Examiner Miller's Order.
HAD BEEN HELPING LUMBER MEN.
A Branch Had Been Shut Up and This
Caused Embarrassment.
THE ASSETS ARE REPORTED LARGE
ESPECIAL TELEGRAM TO THE DrsPArcHI

ESPECIAL TELEGRAM TO THE DrsPArcHI
CoRRY, Nov. THE greatest calamity
that has yet befallen Cory was the
closing this forenoon of the doors of the
CORY National Bank and its branch on
North Center street. Both banks we're
closed by order of Bank Examiner Miller
When the report spread the streets became
crowded, it being impossible for many to
believe that the old and trusted First Ma
tional Bank had been declared insolvent.
The bank was organized in 1864, and its
history since then has been beyond reproach.
Few, if any, had the least inkling of its con-
dition, consequently the news of the failure
came like a thunderbolt.
Bank Examiner Miller positively refuses
to make any statement at present, and as
President Allen and Cashier c. G. Harmon,
are both prostrated by the shock it is i'm
possible to get full particulars. 1t has been
generally known, however, that the bank
has been interested in, and assisted to a
large extent several manufacturing interests
here and elsewhere; also that the line Of
discounts they have been carrying is very
large. These discounts were against people
considered perfectly good, but owing to
the stringency of money matters here the
bank failed to realize on the paper just
when it was most required.
The Story OF the Rranch.
Over two years ago, when the Center
street branch was started. the Bank Exam
iner informed the officials this venture
might be permitted, but it was not author.
lied. A few months ago the Comptroller
at Washington notified the bankers that
they must close the branch, as the Depart
ment of the Treasury had decided that all
branch banks must be discontinued. Itwas
given the officials at Washington to UNDER
stand that if the branch must be closed q
run on the regular bank would certainly
follow, as the branch did heavy business,
and besides, if run came on the original
bank it would not be able to meet it. This
matter has been under consideration for
some time. but finally the decision came
from Washington that the branch must
close, and it was closed
i'The deposits are very large, ranging over
$500, 900, most of which came from promin-
ent business firms here, none of them having
taken the trouble to withdraw their deposits
when the change was made The assets are
not known, but are estimated to be very
large and enough to pay the deposits in full.
The heaviest depositors are the Equitable
Aid Union, mutual life insurance con-
cern having $4,000 on deposits, and the city
of Cory with $1,000 to $4,000 on deposit.
Other deposits are in smaller lots, farmers
and business men from all over this district
having make the bank their depository.
President T. G. Allen tonight refused
utterly to either accord an interview or
make any statement. He is prominent here,
both in a business and social way, and it is
believed by his friends that the closing of
the bank doors was due entirely to the shut
ting down of the branch and the consequent
distrust in the original institution. The
banks correspondents were the National
Park Bank of New York, and the Third Ma
tional Bank of Philadelphia.
No State Moneys There.
A rumor that the withdrawal of State
moneys had crippled the institution was
found tonight upon investigation to be-
without foundation. Bank Examiner Miller
is quoted as saying the deposits are almost
S543, ,OOO The bank officials say they were
S750,0O0 The liabilities contain an item Of
loans and discount of S48, 112 due from
other banks.
President T. A. Allen has himself been
one of the leading spirits in the Forest Lum-
Der Company, one of the most aggressive
and daring in Western Pennsylvania, and
the trade has been very dull of late. The
bank has paper out among many lumber
men. Cashier Clarence Harmon will not
talk anu Keeps OUT Vi sigHl- IL Is SVEN
known that he has been investing in grape
and other real estates; that ne is one of the
principal owners of the Ajax Iron Works,
which has Just made 500, 900 addition to
its facilities.
The bank, after the failure of the old First
National Bank of Cory, as the result Of
oil speculations, had clear field, and at
the time its doors closed was doing three
fourths of the business in Cory. Eleven
of the largest tanneries in Western Penn
sylvania were depositors. There are over
1000 depositors, and they will hold meet
ing next Monday.