Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-10-23
TO THE WALL.
Failure of the First National
Bank Of Allegheny
Its Connection With Failed Pittsburg
Bank Causes Smash.
Its Assets, 1t Is Said, Will Prevent
Any Losses.

K. j. Stoney, Jr., of the First National
Bank of Allegheny, issued the follow
ing statement after q meeting of the
officers and directors with the Clearing
House committee of the Pittsburs
Clearing House Association, which last
ed from o'clock Wednesday evening
until 500 Thursday morning.
Allegheny, Pa, Oct. 81. 1903.
At a meeting of the board Of directors
of the First National Bank of Allie
gheny, held Wednesday evening, it was
resolved that, although the bank has
ample assets to pay all of it's depositors
in full and leave a handsome surplus
for the shareholders, yet it's supposed
connection with the Federal National
Bank Of Pittsburg, has created such
wide distrust that a run on this bank
has been caused to such an extent thai
we feel it TO be our duty to place the
bank in voluntary liquidation and the
officers Of the bank and directors have
decided to make explanation to the
comptroller to take necessary steps to
accomplish this purpose.
(Signed)
JOHN THOMPSON, President.
The First National Bank of Allie
gheny was organized in January, 1864
and has a capital stock of $350,000 a
surplus OF 100000, and undivided pro-
fits of $24,S71.SO. The officers are as
follows:
President, John Thompson; vice pres
ident, r. j. Stoney, Jr.; cashier, E. R.
Kramer; assistant cashier, John D.
Kramer.
The First National is one of the old
est banking institutions in Allegheny.
The directors of the bank are con-
nected with some of the most inpor-
tant manufacturing interests in Allie
gheny.
Many rumors during the past few
have connected the bank with the Fed
eral National and for two days people
have demanded their deposits after
learning the condition of the Pittsburg
institution. The Clearing House bank
ers have 4 very sanguine opinion of the
situation, but the two banks at this
time were found to be beyond the i'm
mediate reach of aid, although both are
declared to be solvent and in good con-
dition.
The correspondents of the bank are
the New York National Park Bank,
Philadelphia First National Bank and
Chicago First National Bank.
According to report of the condi-
ton of the bank at the close of bust
ness, Sept. g.. the liabilities were ST.
735,476; amount due depositors, ST.
052,12S; cash on hand, $113.113. Other
resources We're given to bring the total
to s1,735,476.
Robert ]. Stoney, Jr., vice president
of the First National Bank of Ale
gheny, made the following statement,
this afternoon:
The reason the directors of the bank
did not accept the offer of the Clearing
House banks of Pittsburg to tide us
over was because in the opinion of the
directors the amount was not sufficient
to carry us over the one or two days of
a run which must have resulted. For
that reason the directors, in the interest
of all Gepositors decided it was the
wisest policy to close the bank pending
"a settlement with the depositors. We
will pay every depositOr every dollar
that is due, and there will be a good
balance left for distribution among the
stockholders of the bank
Bank Examiner E. j. Vaughan has
been appointed receiver for the bank
by the comptroller Of the currency.
On the Stock Exchange the reassur-
ing effect of the $2,000000 emergency
fund raised by the Clearing House AS
ISOLATION was plainly apparent through
out the day and no unusual excitement
was shown up to the close.
Washington, Oct. 22-The acting con-
troller of the currency, last night re-
'ceived the following telegram from
John H. Thompson. president of the
First Ma tional Bank at Allegheny, Pa:
AT meeting of the directors of the
bank held, this evening, it was decided
on account of adverse rumors in con-
nection with the failure of the Federal
National Bank of Pittsburg, and inabil-
ity to realize quickly on assets. to go
into voluntary liquidation. The acting
controller states in this connection that
an application to go into volunta airy
liquidation cannot be considered until
the bank has been officially examined
and it's condition ascertained.