USA > Pennsylvania > Fayette County > Connellsville > Centennial history of the borough of Connellsville, Pennsylvania, 1806-1906 > Part 15
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CENTENNIAL HISTORY OF CONNELLSVILLE
military history, we do not know. One thing, however, is sure, and that is, that whatever wars may come, what- ever battles may be fought, braver soldiers will never go forth from among us than those whose services are here recorded.
Gladly would we believe that our Nation shall "learn war no more," and our community no more hear the call to arms. Nevertheless, an age-long battle goes on, the bat- tle between truth and error, between light and darkness. May our community never be lacking in brave men and women to carry on the bloodless struggle for good govern- ment, civic righteousness, universal justice and a world- wide recognition of the brotherhood of man; and may our experience ever be such as to confirm and illustrate the noble words of Milton :
"Peace hath her victories
No less renown'd than war."
CHAPTER VII.
CHARTERED FINANCIAL INSTITUTIONS.
Connellsville had been a Borough for ten years when some of the most enterprising of its citizens began to real- ize the advantages that a bank would bring to the commun- ity and what a power such an institution would be in build- ing up its varied industries. But the directing spirits of the government, State and Federal at this period, favored a monopoly of the banking business of the country by a very few large institutions-a charter could not therefore be gotten from the State of Pennsylvania for a bank.
A group of monied men in the city of New York had experienced the same difficulty a few years previously, when they came to apply for a charter for what is now the second oldest banking institution in that city.
The promoters of the Connellsville enterprise profited by the experience of their New York brothers-which goes to show, by the way, that they were not so far out of touch with the Metropolis even though they were, at the time, on the edge of civilization.
The story of the New York institution, briefly told, is as follows. The old bank of New York had long enjoyed a monopoly of the business in that city. It strenuously opposed the granting of another charter, and Alexander Hamilton, at that time secretary of the United States treasury, used every power and influence of his official posi- tion against its being granted. Hamilton was one of the founders of the old bank and very strong politically at the time. His influence had to be overcome.
The services of Aaron Burr were secured by the peti- tioners for the charter, and by strategy he accomplished the desired end-even securing the endorsement of Ham-
219
220
CENTENNIAL HISTORY OF CONNELLSVILLE
ilton-although it is doubtful if he, Hamilton, knew that he was helping to create a rival to his pet bank at the time.
New York had long suffered a scarcity of pure water -the yellow fever scare of 1798 had increased the demand of her citizens for an adequate supply. The would-be bankers organized the Manhattan Company for the pur- pose of supplying an abundance of pure water to the City of New York.
There were many influential men, however, who thought the water supply should be owned and controlled by the municipality, and accordingly opposed the granting of the charter to a private corporation.
By some means, Hamilton was induced to write the "Honorable Council" from Washington, strongly opposing the idea of a municipal water plant. The letter is a long one and somewhat amusing in the light of subsequent events-at any rate it killed the municipal plant and cleared the way for the granting of the charter of the Manhattan Company which was soon obtained.
Besides the authority to acquire lands, build dams, tunnels, canals and pipe conduits for the purpose of supply- ing water to the city, the charter contained the following paragraph, briefly stated :
"And * it shall and may be lawful for the said company to employ all such surplus capital as may belong or accrue to it in the purchase of public or other stocks, or in any other monied transactions or operations, not inconsistent with the Constitution of the State of New York or of the United States for the sole benefit of said company."
This gave a broad charter to the new Company, and it was not long in getting the "surplus capital" to work.
Some years later it developed that of the $2,000,000.00 capital $172,261.19 had been devoted to supplying New York with water, leaving the very creditable "surplus" of $1,827,738.81 to be used in "monied transactions" thus founding a great bank.
221
CHARTERED FINANCIAL INSTITUTIONS
Concealed in the walls of the bank of the Manhat- tan Company's building is a small engine which to this day pumps a slender stream of water into a little wooden tank, and thus are all the purposes of the Company's broad charter fulfilled.
October 8, 1816,-a limited partnership, styled the "Connellsville Navigation Company" was organized, osten- sibly for the purpose of improving the navigation of the Youghiogheny River, but really for the purpose of engag- ing in the business of banking. So far as we can learn, the company attempted nothing in the way of its avowed purpose and proceeded immediately after its organization to do a banking business, thus becoming the first banking institution of Connellsville.
The Articles of Association set forth, in part, as fol- lows :
"We, the subscribers, believing that an association for the purpose of raising a fund to aid in the improvement of the Youghiogheny River, and in erecting a bridge across said river, is a measure of public utility, and will especially advance the interests of this section of the Commonwealth. have formed a company or limited partnership, and do hereby associate and agree with each other to conduct busi- ness in the manner hereinafter specified and described by and under the name and title of the president and directors of the Connellsville Navigation Company, and we do hereby mutually covenant, declare and agree that the following are and shall be the fundamental articles of this our asso- ciation and agreement with each other, by which we and all persons who at any time may transact business with the said company shall be bound and concluded."
The capital stock of the Company ( Article 1) was fixed at one hundred thousand dollars in money of the United States, "but may be increased hereafter at the discretion of the directors to any amount not exceeding $300,000.' The par value of the shares was $100 each.
Under Article ?, the following named persons were
222
CENTENNIAL HISTORY OF CONNELLSVILLE
constituted a board of directors to hold such office until the first Monday in April, 1817, viz: Isaac Meason, Jr., Sam- uel Trevor, Daniel Rogers, Joseph Torrence, James Black- stone, John Strickler, Abram Baldwin, Daniel S. Norton, Jacob Stewart, Andrew Dempsey, John Lamb, Jacob Weaver, Stewart H. Whitehill, James Rogers and James Paull, Jr.
The life of the company was fixed in a later article, which declares, "the association shall continue until the first day of April, 1825." The names of the subscribers and the number of shares subscribed by each are as follows :
Names. Shares.
Names.
Shares.
Abram Baldwin
30
Jacob Davis 5
Samuel Trevor
30
James Paull, Jr. 50
James Rogers 20
Jonathan Page
5
Isaac Meason, Jr.
50
Jacob Warsing 5
D. & I. Rogers
50
E. Sallyards
10
John Lamb
20
Joseph Strickler 5
Andrew Dempsey
10
Abraham Stouffer
10
Jacob Weaver
20
Nathaniel Gibson 20
Stewart H. Whitehill
20
S. Stauffer
5
Jacob Stewart
20
Andrew Byers
5
William Lytle
5
James McMillan
5
James Blackstone
50
William Davis
2
James Francis
4
John M. Burdett
5
John Boyd 5
Caspar King
4
Joseph Torrence
10
Henry Etling
2
James McKoun
3
Robert Huey
1
John Stauffer
20
Geo. Mathiot
3
Samuel G. Wirts
20
Cyrus I. Gibson
5
George Kemp
2
George Ream
5
Daniel Barnes
20
John Hinebaugh
5
Elijah Crossland
5
Robert Smith
10
Samuel S. Neale
2
John Strickler
10
George Oldshoe
2 Moses Vance
10
Michael Gilmore
4
Thomas Atkinson
5
Phineas Rogers
20
Samuel Weel
15
223
CHARTERED FINANCIAL INSTITUTIONS
Names.
Shares.
Names.
Shares.
Philo Hall
5
Robert Philson
10
Thos. & Joseph Gibson 10
John Rogers 20
William Moreland
5
Thomas Perkins 20
John Miner
1
Christian Stauffer
5
Robert Boyd
5
Mahlon Rogers
5
Joseph Culbertson
2
Mark Stackhouse 5
Wm. Kepner
30
George Evans
5
James C. Seaton
34
Luther Stephens
5
Henry Hartzol
20
John B. Trevor
20
Isaac Gilmer
5
Moses Mercer
3
Peter Newmyer
10
Ben. Kindrick 40
Jacob Newmyer
5
George Mathiott
2
James Shean
5
Wm. B. Foster
15
Isaac Mears
6
John Fautlinger 20
Martin Stephenson
5
John Jackson
50
John Shaup 1
Robert Hutchinson
2
Samuel G. Wurts
30
Martin Glassburner
1
Jacob Coslimon
3
Samuel Candan
3
Christian Stauffer
10
William Patterson
5
John Tinstman
10
James Hertzell
20
Thos. Bigham
10
Philip Sullivan
20
Matthew Gaut
5
William Paull 20
Dr. L. Hendrickson
5
John Miner 10
A meeting of the board of directors was held Novem- ber 3rd, 1816, at the house of Andrew Byers. After the transaction of some unimportant business the board ad- journed.
According to adjournment, the meeting was held on Thursday, December 5th, 1816, at Andrew Byers' as be- fore, with Colonel Joseph Torrence in the chair, and Stew. art H. Whitehill as secretary. The board organized by electing Isaac Meason, Jr., president and John B. Trevor, cashier of the Company. Its first office was located in the storeroom of Samuel Trevor (just opposite the pres- ent Yough House), which was rented at one hundred and fifty dollars a year. Afterwards it was moved further
224
CENTENNIAL HISTORY OF CONNELLSVILLE
up the street to a building which was located on the rear of the lot now occupied by the Title & Trust Company of Western Pennsylvania, which was known at the time of its demolition as the Dr. George Johnson house.
On the 21st of January, 1817, the company issued its notes to the amount of $24,400.00 in bills of the denomina- tion of $10.00, $5.00, $3.00 and $1.00. The business then seems to have gotten under way in earnest, for other issues were made as follows: February 7th, $800.00; February 10th, $800.00; March 5th, $8,100.00; April 1st, $12,500.00; making a total issue of $46,600.00 outstanding.
From the following entry in the books of the com- pany it would appear that $36,197.00 of this issue was re- tired on November 21st, 1818:
"Office of the Connellsville Navigation Company, November 21, 1818.
"We, the undersigned, appointed a committee to ex- amine the affairs of the Connellsville Navigation Company, to count the money, and ascertain the balance in the hands of the cashier, do find that the balance of the cash account is thirty-seven thousand three hundred and four dollars and fifty cents, which amount J. B. Trevor has this day paid over to the committee, consisting of thirty-six thou- sand one hundred and ninety-seven dollars in our own notes, and eleven hundred and seven dollars and fifty cents in foreign notes. $37,304.50.
"We have counted our own notes and sealed them up.
Tens $ 8,700.00
Fives
11,970.00
Threes
12,534.00
Ones
2,993.00
$36,197.00
Foreign
1,107.50
$37,304.50 JOHN LAMB,
ANDREW DEMPSEY,
DANIEL ROGERS."
225
CHARTERED FINANCIAL INSTITUTIONS
At a meeting of the board of directors, held on the same day, it was voted "that Caleb Trevor, Jr., act as cashier until April 1st next, at the rate of $400.00 per year, and he to furnish room for books and desk after January 1st." Caleb Trevor, Jr., was succeeded in the cashiership by John Boyd, and the following entry is made in the rec- ords on April 19th, 1819 :
"Received of Caleb Trevor, Jr., late cashier of the Con- nellsville Navigation Company, the books and papers of the Company, and $640.50 in bank notes, as per margin, being the balance of the cash account.
Perryopolis
$112.50
Saline (Va.)
121.00
Stewart's
111.00
New Salem
286.00
New Ohio
5.00
Total
$640.50
JOHN BOYD, Cashier."
A new board of fifteen directors was elected, August 18, 1820, of which Isaac Meason was president. John Boyd was re-elected cashier and continued in that capacity dur- ing the life of the Company.
After the retirement of the Company's notes before mentioned, November, 1818, there still remained in circu- lation $10,403.00. Of these $8,891.00 were redeemed and cancelled at various times until February 15, 1831, leaving $1,512.00 not presented for redemption. The business of this Company had practically ceased October 5, 1830, after an existence of fourteen years. There are a few unimport- ant entries in the books however up to August 22. 1831.
THE BANKING HOUSE OF JOHN T. HOGG.
From 1831 Connellsville seems to have been without banking facilities until 1854, when "The Banking House of John T. Hogg" was established.
This was a private bank with wide connections. The
Banking Houses OF JOHN T. HOGG
New York,
: 22, S. Third St., ttsburgh, nnerset.
Philadelphia, Allegheny Co.,
Somerset Co., -
mint Pleasant;
Westmoreland Co, -
·nnellsville,
Fayette Co.
tiontown,
ownsville,
Deposits received, Discounts made; Drafts bought Id and coliected. Bank Notes and Specie bought sold; Stocks, Notes and other Securities, bought il sold on Commission.
G
respondence and Collections solicitod . Feb. 28, 1855 -- tf.
CAD, ZINC & IRON, PAINT & OIL COLORS.
e
MANUFACTURED BY
ADVERTISEMENT OF THE BANKING HOUSE OF JOHN T. HOGG
-4-
227
CHARTERED FINANCIAL INSTITUTIONS
head office was located in New York, and there were branches in Philadelphia, Somerset, Mt. Pleasant, Union- town, Brownsville and New Brighton, Pennsylvania, be- sides the one at Connellsville.
Mr. Crawford Vance had charge of the Connellsville bank, which was located, at first, in a room on Main street where the Yough National bank now stands. Later it was moved to a room about the present location of the Yough House office.
The State authorities permitted Mr. Hogg to issue "scrip," which he did under the title above given. This was quite a privilege and was considered a great compli- ment to his integrity.
The bank went out of existence in Connellsville in 1857. The whole chain was discontinued on account of the defalcation of the cashier of the Philadelphia office.
The safe of the Connellsville branch is said to have been one of a very peculiar construction and was brought from the East, over the mountains at quite an expense. It was unlocked by a tube device, which pulled out from the face of the door and was worked in and out by some arrange- ment, known only to the operator, to undo the combination lock.
This safe was sent to Pittsburgh after the banking house was discontinued in Connellsville, and Mr. Crawford Vance, at one time, had to go down there to unlock it, as those in charge had become confused on the working of the com- bination.
The Democratic Sentinel and The Connellsville Enter- prise of 1855 and 1856 contain an advertisement of this banking house, that is reproduced on the following page.
GEORGE A. TORRENCE AND COMPANY.
From the closing of the Banking House of John T. Hogg until 1867, Connellsville had been dependent upon Uniontown, Brownsville and Pittsburgh for its banking facilities-chiefly Brownsville.
228
CENTENNIAL HISTORY OF CONNELLSVILLE
The leading merchants of the town (the only persons who had safes) became the custodians and depositaries of valuable papers, jewelry and money, for such of the citi- zens as did not care to keep those things at home, and to whom it was not convenient to go out of town for such serv- ices. Indeed, some of the merchants became bankers in fact, for they took money from some of their customers on deposit giving a memorandum for it (not a note) and bought and sold, notes, judgments, mortgages, etc., as any banker might. On some of the money so deposited a low rate of interest was allowed, but in most cases it was forced on them for safekeeping-the customer being willing to forego the interest return, in exchange for the greater se- curity of his savings, offered by the merchant's safe.
George A. Torrence was familiar with the above con- ditions and knew something of the needs of the town and surrounding community; November 8th, 186%, with A. E. Claney as cashier, he opened a private bank. This house was continued under his own name until January, 1871, when Joseph Johnston, retiring from the firm of Frisbee, Johnston and Company, became a partner and the firm name was changed to George A. Torrence and Company, Bankers.
The bank was located in the Johnston house on West Main street, a brick building which stood a little west of the center of what is now the Frisbee Block.
The house prospered and was quite a factor in the financial and commercial life of Connellsville and vicinity until 1873, when the failure of Jay Cooke and Company (the New York and Philadelphia correspondents of the firm) precipitated a panic throughout the country, and forced this house (and many others in all parts of the United States) to ask for an extension, which was granted.
Money, however, continued close, uneasiness and dis- trust prevailed throughout the financial and business world, and finally the bank was compelled to close in 1875.
The house of George A. Torrence and Company was
229
CHARTERED FINANCIAL INSTITUTIONS
an important factor in the extension of the Baltimore & Ohio railroad from Connellsville to Cumberland and aided in quite a measure the building of the South West Pennsyl- vania railroad from Greensburg to Connellsville and Union- town. The promotion of these enterprises has been of un- told benefit and immeasureable value to the commercial life of Connellsville.
THE YOUGH NATIONAL BANK OF CONNELLSVILLE.
The oldest existing banking institution in Connellsville is the Yough National Bank which commenced business under the title of The Youghiogheny Bank, with a paid up capital of $25,000.00. It was chartered by the State of Pennsylvania, May 9th, 1871. The first officers were elected July 29th, 1871. M. O. Tinstman was president ; A. C. Knox, cashier; the directors besides the president were Daniel Kaine, Josiah Kurtz, James Allen, J. M. Du- Shane and Isaac W. Rutter. September 4th, 1871, was the first discount day of the bank.
The banking office was at first located in the Snyder Building (now Central Hotel) on Water street. From there it was removed, in November, 1874, to the room now occupied by the post office in the Hurley Block, West Main street. In the spring of 1888 it moved into its present quar- ters in the Soisson Building on the North Side of West Main street, which had been fitted up and equipped in what was considered a very elaborate and complete style, including among its fixtures a Corliss safe and vault.
Upon the death of M. O. Tinstman, February 15, 1873, J. M. DuShane succeeded as president, and continued in that office until January 8th, 1880, when he retired and was succeeded by John Newcomer, who held the office until 1893 when the bank was converted into the Yough National Bank. Mr. Newcomer was desirous of being relieved of his duties as president on account of his advanced years,
230
CENTENNIAL HISTORY OF CONNELLSVILLE
and Joseph Soisson, who is now president of the bank, was chosen to succeed him, and has held the office ever since. Mr. Newcomer was continued as a director until his death in 1902.
A meeting of the stockholders was held June 27th, 1872, for the purpose of voting on an increase in the cap- ital stock by the sale of five hundred (500) additional shares (par value $50.00 each), which was agreed upon, and the new stock was sold at a premium of five dollars per share.
The board of directors elected January 8th, 1880, con- sisted of James Allen, John Newcomer, Daniel Kaine, Jo- seph Soisson, J. M. DuShane, Joseph T. McCormick and Joseph R. Stauffer.
At a meeting of the stockholders held January 19th, 1893, it was decided to convert the Youghiogheny Bank to the Yough National Bank of Connellsville with a capital of $75,000.00.
A new board was elected on February 6th, 1893, and was composed of the following persons: John Newcomer, Joseph Soisson, Joseph R. Stauffer, B. F. Boyts, P. S. New- myer, Joseph T. McCormick and James Allen. At this meeting, besides electing Mr. Soisson president, B. F. Boyts, who had been a director of the bank since 1891, was elected vice president.
The National Bank began business February 23, 1893, and had forty shareholders.
After a service of fifteen years A. C. Knox resigned as cashier on February 16th, 1886, to become cashier of the Fifth National Bank of Pittsburg, and was succeeded by J. C. Kurtz, who had entered the employ of the bank in September, 1878, as a clerk. Mr. Kurtz served until 1898, when he resigned on account of ill-health.
John A. Armstrong was elected assistant cashier in 1886, and remained with the bank until April 20th, 1887. Lin F. Ruth was chosen teller on the resignation of Mr. Armstrong and was advanced to the position of assistant
The Yough National Bank
THE YOUGH NATIONAL BANK
232
CENTENNIAL HISTORY OF CONNELLSVILLE
cashier shortly thereafter, in which position he continued to serve until 1896.
In July 1890, Joseph R. Paull, now vice president of the bank of Pittsburg National Association, entered the employ of the bank as bookkeeper, and continued for sev- eral years in that capacity.
George T. Griffin was elected bookkeeper in March, 1891, and was advanced to teller, then assistant cashier and upon the resignation of J. C. Kurtz in 1898, was elected cashier. Mr. Griffin resigned April 1, 1906, on account of physical disability and was succeeded by Eugene R. Floto, of Meyersdale, Pa., formerly assistant cashier of the Citi- zens National Bank of that place.
The present board of directors (August, 1906), con- sists of Joseph Soisson who was elected in 1876, Joseph R. Stauffer, who was elected in 1880; B. F. Boyts, who was elected in 1890; W. F. Soisson, who was elected in 1902; Robert Felty, who was elected in 1904; H. M. Kephart, who was elected in 1904; Andrew Haas, who was elected in 1904; S. J. Harry, who was elected in 1905; M. B. Shupe, who was elected in 1905.
The officers and employes at this time are: Joseph Soisson, president, elected in 1893; B. F. Boyts, vice pres- ident, elected in 1893; E. R. Floto, cashier, elected in 1906 ; J. S. McKee, assistant cashier, elected in 1903; Jas B. Stader, teller, 1901; Conrad Gutbrod, bookkeeper, elected in 1905; Miss Ruth Artman, stenographer, elected in 1906. The Yough has turned out quite a number of men who are now occupying prominent positions in the financial world; among them might be mentioned the following : A. C. Knox, vice president Mellon National Bank, Pitts- burg, Pa .; Joseph R. Paull, vice president Bank of Pitts- burg National Association; Lin F. Ruth, president Title. & Trust Company of Western Pennsylvania and president, Colonial National Bank, both of Connellsville; J. A. Arm- strong, cashier Second National Bank of Connellsville; J. L. Kurtz, cashier Citizens National Bank of Connellsville;
233
CHARTERED FINANCIAL INSTITUTIONS
Charles S. Hall, cashier Broadway National Bank of Scott- dale, Pa.
Of the original stockholders who still hold stock in the bank or whose shares are still held by their estates are the following: J. M. DuShane, J. T. McCormick, John H. McClelland, Joseph Soisson, John Newcomer, John D. Frisbee, Mary Allen and Samuel Porter.
James Allen, a member of the first board of directors served continuously until his death a short time ago.
Since its organization the bank has paid sixty-six (66) dividends ranging from three per cent to six per cent semi- annually. The first dividend, amounting to three per cent was declared December 27th, 1871, payable January 1st, 1872, out of the earnings of the first four months. Since that time it has missed only four dividends at the regular periods of January and July.
THE FIRST NATIONAL BANK OF
CONNELLSVILLE.
The First National Bank of Connellsville was organ- ized on the 15th day of March, 1876, with a capital stock of $50,000.00, divided into 500 shares of $100 each. The stockholders elected from their number the following di- rectors to serve until the annual meeting in January, 1817 : John D. Frisbee, John M. Cochran, P. S. Newmyer, J. T. McCormick, Wm. A. Davidson, J. R. Laughrey, John K. Brown, Nathaniel Ewing, Joseph R. Stauffer, Edward Dean and Dr. J. J. Singer. The board organized the same day by choosing John D. Frisbee, president, and P. S. New- myer, vice president.
On March 20th the room "occupied by A. B. Morton's jewelry store" was rented for a term of years at $400.00 per annum.
J. S. McCaleb was elected cashier on March 28th and on April 8th Joseph M. Kurtz was chosen teller.
234
CENTENNIAL HISTORY OF CONNELLSVILLE
The bank began business on Monday, April 17th, 1876, in the counting room of Frisbee, Cooper and Company.
It was decided to buy bonds sufficient to take out the entire amount of circulation authorized by the National Bank Act, at a meeting held May 27th, 1876, and this seems to have been the first meeting in the bank's own office.
The directors, by resolution dated June 24th, 1876, decided to pay interest on time certificates of deposit at a rate not to exceed three (3) per centum per annum.
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