The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-22
ACCUSES OFFICIALS
OF UNIONTOWN BANK
Comptroller Williams Charges
"Reckless and Unlawful
Practices"
TRIED TO AVERT FALL RE

wAsHINGroN. Jan. 2l.--Charses OF law
breaking by persons responsible for she
practices OF the First National Bank OF
Uniontown. Pa, which closed It's doors
last week, are contained in statement
issued by Comptroller Of the Currency
WILLIAMS tonight Here is the Comprol-
ler's statement;
IN the spring OF 1918. soon after the
beginning ~ the present Administration.
the acting Comptroller OF the Currency.
Mr. Kane brought to my attention az the
Assistant Secretary OF the Treasury In
charge OF fiscal bureaus the matter Of ;he
First National Bank OF uniontown, Pa.
81 found that the situation was serious
one and promptly made searching In
vestlgation into it, cond ions and man
agement found that the bank was con-
spcuously a one man bank dominated
and run by ]. v Thompson, prominent as
a coal operator and dealer in coal lands
in PENNSYLVANIA
An examination by national bank
examiner In April. 1913, showed that the
bank claimed a capital OF 100000 and
surplus OF 1851. 900. the deposits amount
ing TO s2,6S9.0OO. The examiner reported,
however that direct and indirect loans to
She president Of the bank. J. V. Thomp-
son aggregated St.2270O0 and that in
addition to this the bank had discounted
paper the proceeds OF which we're given
10 Mr. Thompson for $4,000 additional
MAKING the total direct and indirect loans
20 Mr. Thompson and his immediate IN
tegeSts sl,3i7.O or more than one-half
OF the entire deposits OF che bank.
"Furthermore. Il appeared that these
direct and indirect loans to Mr., Thomp-
son had been running at approximately
ST. 900 0OO or more--teu times the BANKS
caprnl--duriug the preceding ten years
and that such efforts II any. that might
have been made by the Comptroller :
office TO require him to obey the law ana
conform to the regulations OF the once
had been apparently frutes@.
MIR Thompson and several other ON
GERS OF the bank were required to come
20 Washington. and the condition OF the
bank was discussed with the Secretary
OF the Treasury the Assistant Secretary
Zoo charge OF fiscal bureaus and the
Acting Comptroller OF the Currency. and
energetic measures were adopted TO save
The situation and protect the interests OF
The banks depositots.
As a result o. these efforts which
have been unremitting during the past
eighteen months, me halk was Hlaue 10
reduce the loans upon which Mr.
Thompson was either maker or guar
autor from s1.227.0 900 in April. 1913.
to $4,000 IN August. 1914
Meanwhile other reckless and unlaw-
ful practice, which had been In force
for a period Of years were stopped the
depos.tors were enabled to collect from
the bank Si31s.OOO OF the 50 $50, goo he'd
In April, 1913. 50 that the total deposit
liabilities at the time OF the failure had
been reduced to tl.27l. 900. and the loans
to Mr. Thompson on his direct paper and
Endorsements. az appear a the present
| time. to approximately 100000
There probably has been no bank In
the country which has received close at
! t-n;iom ffo5T; tho Cc4:r.rclier's "ffice for
! tho past eighteen months than the First
| National Bank OF Uniontown Had II not
| been for these earnest and diligent eff
| forts OF this Office the Sl.3lS.000 OF de-
posts paid m since April. 1913, might
now De tied up or d.ssipated and the
1871 900 OF deposits at the time OF the
closing OF the bank, and which there Is
reason to hope will he eventually paid IN
| full would also have been jeopardlHad."