Century history of Butler and Butler County, Pa., and representative citizens 20th, Part 49

Author: McKee, James A., 1865- ed. and comp
Publication date: 1909
Publisher: Chicago, Richmond-Arnold Pub. Co.
Number of Pages: 1526

USA > Pennsylvania > Butler County > Butler > Century history of Butler and Butler County, Pa., and representative citizens 20th > Part 49

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The location of large industrial plants in Butler and the increase in population since 1902 has caused a corresponding increase in hospital cases, and has created the necessity of enlarging the building. In 1904 a two-story brick addition was built. The first floor is used as a laundry, and the second floor as living apartments for the help. In 1908 the south wing was erected at a cost of about $15,000, which increased the capacity of the hospital to about sixty beds. The Hospital Association has in contemplation the erection of a west wing, that will further increase the capacity of the institution to about one hundred beds.

CHAPTER XII

BANKS AND BANKING

First Banking Institution-First National Bank-John Berg & Co .- Butler Savings Bank-Butler Savings and Trust Co .- Butler County National Bank- Farmers' National Bank of Butler-Guaranty Safe Deposit & Trust Co .- Standard Trust Co .- First National Bank of Harrisville-First National Bank of Zelienople- Citizens' National Bank of Slippery Rock-First National, Slippery Rock-Mars National Bank-First National Bank of Bruin-Citizens' National Bank of Evans City-Lyndora National Bank-Harmony Savings Bank-Commercial Bank of Harmony-Prospect Savings Bank-Millerstown Savings Bank Association-Mil- lerstown Deposit Bank-Butler County Bank-Fairview Banks-Argyle Savings Bank, Petrolia.

There were no banking institutions in Butler County previous to 1854. The merchants did a credit business, or issued scrip and the people throughout the coun- try districts often had difficulty in getting ready cash for their immediate uses. The merchant, mechanic, doctor, and preacher were paid in the product of the farm, and they in turn, were compelled to trade for the things they needed. If there was any balance coming to the farmer when he had completed his trading with the merchant, he received the merchant's scrip or due bill, but rarely any money, or at the most he would receive half cash, and the balance would be taken in trade at some future date. The currency issued by the state banks of that day had an uncertain value and the correction of the bank note list in the newspapers was one of the features of the financial columns that was closely watched by the dealers and merchants. The insecurity of the bank notes made gold and silver the only safe money for

the people in the country districts to han- dle, and this was hoarded in old stockings and various places of security about the farm house. Bank notes were looked on with suspicion, as the possessor usually had to refer to the latest published list to see whether the note was good, and then take chances on the institution failing, which often happened, before the paper could be presented to the bank of issue for redemption. This condition of things made the country people naturally suspicious of banks in general, and for many years after banks had been established in Butler Bor- ough and elsewhere in the county, the country people preferred trusting their savings with their local merchant to de- positing their money with the banks. This custom led to private banking in the smaller towns, which prevailed to a con- siderable extent until the beginning of the present century.

From 1854 to 1867 the only banks in the county were in Butler Borough. In the

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HISTORY OF BUTLER COUNTY

latter year a bank was organized and es- tablished at Harmony, and in 1872, banks were established at Fairview and Petrolia. The following year two banks were estab- lished at Millerstown, which was then a booming oil center, and in 1874 a bank was organized and established at Prospect. A year or two later the Prospect bank went into private hands and it has been contin- ued as a private bank since that time. In 1892 but one of the oil country banks re- mained, and that was the Millerstown De- posit Bank, which is still in existence, but under private management. Private bank- ing enterprises were carried on in the last decade of the nineteenth century by W. Henry Wilson at Slippery Rock, J. H. Mc- Clure at Prospect, James M. Marshall at Portersville, Jacob and Edward Dambach at Evans City, and the Gelbach brothers at Zelienople, but these concerns with one or two exceptions have given way to the na- tional banks that have been organized dur- ing the past ten years. In addition to the three banking houses and two trust com- panies in Butler Borough in 1908, there were nine national banks and two private banks doing business in the county. The combined capital of these institutions is about $2,000,000.00, and they are rated among the leading financial institutions of western Pennsylvania.

THE FROST BANKING INSTITUTION OF BUTLER.

The transactions of the county commis- sioners during the first half of the century show that the moneys of the county were kept in Pittsburg banks, and the mer- chants of Butler and other points in the county were compelled to do their banking business in that city. A good deal of un- certainty surrounded dealings with outside banking concerns, so that in the year 1854 James Campbell, James Bredin, Samuel M. Lane, Dr. Isaiah McJunkin and A. N. Meylert determined to found a bank here. James Bredin was selected president or

manager, and Isaac J. Cummings as cash- ier. A year later Mr. Cummings became sole owner, and continued so down to the organization of the First National Bank in 1864. Besides attending to his duties as a banker Mr. Cummings was financial edi- tor of the Butler newspapers, and cor- rected the bank note list weekly.

THE FIRST NATIONAL BANK OF BUTLER.

The First National Bank of Butler was chartered January 27, and organized Feb- ruary 2, 1864, with the following officers: James Campbell, president, I. J. Cum- mings, cashier, John Berg, Jr., Louis Stein, John N. Purviance, H. Julius Kling- ler, James Bredin, E. McJunkin, John M. Thompson, R. C. McAboy, and James Campbell, directors. Charles McCandless, Charles Duffy, Thomas Stehle, Jacob Zieg- ler, John M. Zimmerman, Mary A. Reed, John A. Graham, Christian Seibert, Jacob Walter and William Campbell, were un- official stock-holders. The business of the institution was carried on in the old build- ing, later the property of Thomas Stehle, until 1875, when the bank was removed to their new building on the corner of Main and Jefferson Streets, now occupied by John Berg & Company. Some years pre- vious to this event Charles McCandless succeeded James Campbell as president and filled that position until 1878, when he resigned to accept the appointment of chief justice of New Mexico, and Charles Duffy was elected his successor as presi- dent. Mr. Duffy was succeeded as presi- dent by W. H. H. Riddle, who filled the office when the bank closed its doors in 1879. Edwin Lyon succeeded I. J. Cum- mings as cashier and he in turn gave place to John Berg, Jr. In 1870, Alexander Mitchell who had previously been teller of the bank was elected cashier, which office he held until the bank was closed by Exam- iner Hugh Young July 18, 1879. The re- ceiver appointed was Henry C. Cullom, who served until January, 1880, when he

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was succeeded by John N. Purviance. Not- withstanding the depreciation of securities Mr. Purviance succeeded in winning for the depositors a large percentage of their money.

THE PRODUCERS' BANK OF BUTLER COUNTY.

This' bank was established in Butler May, 1873, and about the same time a branch was opened at Greece City, which was then a booming oil town. The officials of the company were J. W. Irwin, presi- dent, J. E. Ray, cashier, of Butler; H. Howe, assistant cashier; J. Stambaugh, James Adams, William Miller, Samuel A. Woods, H. McWalters, Lewis P. Walker and the above officials, were the directors. The business was conducted until 1875, when J. W. Irwin appears to have pur- chased the stock and later entered the But- ler Savings Bank as a stockholder.

JOHN BERG & COMPANY.

The banking house of John Berg & Com- pany was established in 1870 by John Berg, Sr., and John Berg, Jr., and was carried on by them until the death of the senior partner in 1884. By the . terms of the will of John Berg, Sr., the title and system of business were to be observed for five years or until 1889. In that year the company was re-organized with John Berg, Henry A. Berg and Louis Berg as partners under the style and title of John Berg & Company. John Berg, Jr., died in November, 1906, and since that time the business has been carried on by Henry A. Berg and Louis Berg. The first banking office was at the corner of Main and Cunningham Streets, and in 1883 the firm purchased the First National Bank building on the corner of Main and Jeffer- son Streets, where for the past twenty-five years they have transacted a large and constantly increasing business.

THE BUTLER SAVINGS BANK.

The Butler Savings Bank was organized

January 29, 1868, and opened its doors for business February 3d of that year, with James Bredin, president, Edwin Lyon, cashier, Adam Troutman, J. C. Reddick, Eugene Ferrero, William Dick, E. A. Helmbold, Gabriel Etzel, R. A. Mifflin, David Kelly, and Samuel Marshall, trus- tees. The company received a state char- ter by a special act of May 20, 1871, and under that charter John M. Thompson was elected president October 30, 1871, and served until February 21, 1877, when William Campbell, Sr., was elected as his successor. The latter served until Febru- ary, 1880, when J. W. Irwin was elected. William Campbell, Sr., was again chosen president January 12, 1886, but resigned December 27, 1887, when Joseph L. Purvis was elected to fill the vacancy. Mr. Purvis continued as president until 1901, when he resigned and William Campbell, Jr., was elected president. At the same time Louis B. Stein, who had been teller, since 1885, was promoted to cashier.

Edwin Lyon, the first cashier of the bank, resigned in 1871, and William Camp- bell, Jr., was appointed and filled that po- sition until 1901, when he was elected president, and Louis B. Stein, who had been appointed teller in 1885, was chosen cashier to succeed Mr. Campbell. In Janu- ary, 1891, the bank was re-chartered for twenty years, to date from May 20, 1891. In the summer of 1902, the company was reorganized under the title of the Butler Savings and Trust Company, and the capi- tal stock increased from sixty thousand to two hundred thousand dollars. A charter was granted on the 4th of September, 1902, and the old Savings Bank as an institution went out of existence on the 31st of Decem- ber of that year. The Savings Bank was dominated largely by the Campbell, Stein and Troutman families of Butler and had on its board of directors the most conser- vative business men of the town and county. It was the main support of many of the public improvements of the town,

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HISTORY OF BUTLER COUNTY

among which were the electric lighting sys- tem of the town and the Home Natural Gas Company, and was one of the princi- pal factors in the organization of the Stan- dard Plate Glass Company. It was also instrumental in bringing the Standard Steel Car Works to Butler, which inaugu- rated a new era in the commercial and industrial growth of the town.

THE BUTLER SAVINGS AND TRUST COMPANY.

The Butler Savings and Trust Company is the old Butler Savings Bank reor- ganized under a new charter. The com- pany was organized in 1902, the charter granted September 4th of that year, and its doors were open for business on Janu- ary 1, 1903, in the building formerly occu- pied by the Butler Savings Bank. The first officers of the company were William Campbell, Jr., president ; J. Henry Trout- man, first vice-president; W. A. Stein, sec- ond vice-president; Louis B. Stein, secre- tary and treasurer; C. E. Cronenwett, as- sistant treasurer; W. D. Brandon, solic- itor; and the following Board of Directors : Wm. Campbell, Jr., J. Henry Troutman, W. D. Brandon, W. A. Stein, John S. Campbell and Louis B. Stein.

William Campbell, Jr., died on July 27, 1907, and J. Henry Troutman was elected president, a position which he still holds. John S. Campbell was elected first vice- president to fill the vacancy, and Dr. R. H. Pillow was chosen a member of the board of directors to fill the vacancy. The other officers of the institution are Gardner C. Lowry, general bookkeeper; John W. Brandon, C. De Witt Breaden, H. S. Ehr- man, Frank W. Christy, individual book- keepers; J. Hervey Murtland, correspond- ing clerk.

The company conducts a general bank- ing department, savings department and trust department, and the business is con- ducted along the safe and conservative line established by the founders of the old Savings Bank and successfully carried on

for forty years. The statement of the re- sources and liabilities of the institution shows a capital of $200,000.00, a surplus of $200,000.00, undivided profits of $158,- 639.59, and deposits of $1,562,056.13. The amount of trust funds invested and unin- vested are $261,404.17.

BUTLER COUNTY NATIONAL BANK.

From 1879 to 1890 Butler was without a National bank and the only banking in- stitutions in the town were the Butler Sav- ings Bank and John Berg & Company. Several bankers and capitalists had pro- posed from time to time the organization of a new bank, but nothing definite was done until early in 1890, when J. V. Ritts, a banker well known in Western Pennsyl- vania, representing a number of business men, joined R. B. Taylor, E. E. Abrams, C. D. Greenlee, I. G. Smith, O. M. Russell, and others, in promoting the enterprise and held a formal meeting in the office of Mr. Abrams April 1, 1890. The title se- lected was "The Butler County National Bank," and upon application to the comp- troller of the currency, a charter was granted July 19, 1890. The bank was opened for business on August 18th of the same year, under the following organiza- tion : R. B. Taylor, president ; J. V. Ritts. vice-president; David Osborne, cashier, and Charles A. Bailey, assistant cashier.

Including the president and vice-presi- dent, the directory was composed of the following : Leslie P. Hazlett, E. E. Abrams, O. M. Russell, C. D. Greenlee, I. G. Smith, C. P. Collins, and Henry McSweeney.

Mr. Taylor resigned the presidency on September 3d, 1890, and Mr. Ritts assumed that position until the election of Hon. Joseph Hartman on September 30th fol- lowing. Mr. Hartman continued in the office of president until his death in 1904, when Leslie P. Hazlett was elected to fill the vacancy, and at the next annual meet- ing of the stockholders and directors, he was re-elected and continues to hold that

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position. Mr. Osborne resigned his posi- tion as cashier about one year after the bank began business, and C. A. Bailey was promoted to the position of cashier, and John G. McMarlin to assistant cashier. In 1900 Mr. Bailey resigned to accept a posi- tion with a new bank then being organized, and Mr. McMarlin was promoted to the position of cashier, which he now holds. At the same time, Albert G. Krug was ap- pointed to the position of assistant cashier.

The original capital of the bank was $100,000.00, which was increased in 1900 from $100,000.00 to $200,000.00, and in 1904 the capital was again increased from $200,000.00 to $300,000.00. At the close of 1908 the bank had a full paid up capital of $300,000.00, and surplus and undivided profits amounting to over $475,000.00. The bank at present is the largest in Butler County, and has assets aggregating $2,500,000.00. It has always maintained full currency payments without notice, and in addition to doing a general banking business conducts a savings department, which is also backed by the bank's large capital and surplus. It pays interest on' time deposits, compounded semi-annually, and carefully looks after the interests of its patrons in this branch of the business.

The first home of the Butler County Na- tional Bank was in a three-story brick building, purchased in 1890, that occupied part of the site of the present building. In 1902 the bank purchased the property of John H. Negley and Col. John Thomp- son on Diamond Street and the McQuistion property on Main Street and began the erection of the present six-story banking and office building, which was completed and occupied in August, 1903. The total cost of this improvement was about $200,- 000.00. One of the features of the equip- ment of the banking room is the safe de- posit vaults which are considered among the best in this part of the country.

The following constitute the board of directors in 1908: Leslie P. Hazlett; Al-

phonse Krause; Harry Heasley; Joseph Hartman, Jr .; Dr. W. C. McCandless; H. C. Litzinger ; H. McSweeney ; Blair Hooks; A. E. Russell; C. P. Collins ; W. H. Larkin ; H. C. Keasey; A. L. Reiber; T. P. Mifflin; Dr. J. J. Schultis; I. G. Smith; Marion Henshaw; M. N. Heinzer; R. A. Marks; and J. V. Ritts.

The officers of the bank are: Leslie P. Hazlett, president; A. L. Reiber, vice-pres- ident; T. P. Mifflin, vice-president; J. V. Ritts, vice-president; John G. McMarlin, cashier ; Albert C. Krug, assistant cashier ; W. S. Blakslee, assistant cashier; W. A. Ashbaugh, assistant cashier; George W. Hazlett, general book-keeper; W. A. Ritts- teller; S. R. Hill, proof clerk; R. H. Mc- Clester, corresponding clerk; G. K. Haz- lett, individual book-keeper; George D. Smith, individual book-keeper; J. H. Forcht, discount clerk; J. H. Stewart, col- lector.

The bank has been prosperous, aggres- sive and progressive and has had a phe- nomenal growth from its first year. It is the largest banking house in Butler County and is rated one of the most solid institutions in western Pennsylvania. It has always taken an active interest in the promotion of the industrial welfare of the town and county, and has been the finan- cial backing of a number of the most im- portant business enterprises that have been established in this district in the last eighteen years.

THE FARMERS' NATIONAL BANK OF BUTLER.

The Farmers' National Bank of Butler was organized early in 1900, with a capital of $100,000.00, and began business July 2d of that year in the building now owned by the company on South Main Street. The first officials of the company were John Younkins, president; John Humphrey. vice-president; Charles A. Bailey, cashier, and the following directors: Daniel Youn- kins, Henry Miller, E. E. Abrams, Thomas Hays, Levi M. Wise, D. L. Cleeland, W. F.

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HISTORY OF BUTLER COUNTY

Metzger, D. B. Campbell, C. N. Boyd, A. H. Sarver. In 1905, A. H. Sarver was elected vice-president to fill the vacancy caused by the death of John Humphrey, and John Henninger was elected to fill the vacancy on the board of directors. In 1903, C. A. Bailey resigned as cashier to accept a position with another banking in- stitution and E. W. Bingham was pro- moted to cashier. In 1906, James F. Hutz- ler was elected cashier to succeed Mr. Bing- ham, who had resigned, and R. W. Dixon was promoted to the position of assistant cashier. With the exceptions of the change in the vice-presidency and in the board of directors above mentioned, the officials of the bank are the same as when it was first organized. The officers in 1908 are John Younkins, president, A. H. Sarver, vice- president, James F. Hutzler, cashier, R. W. Dixon, assistant cashier, A. R. Wil- liams, teller, C. B. McMillen, book-keeper, and Robert P. Scott, clerk. This institu- tion has always conducted a safe and con- servative business, and has won a leading rank among the financial institutions of western Pennsylvania. The following statement of the condition of the bank was made September 23d, 1908.

RESOURCES.

Loans and discounts

$453,081.97

United States bonds.

104,000.00

Banking . House and other real estate.

24,952.62

United States treasurer. 5,000.00

Cash and due from banks

221,757 53

$808,792.12

LIABILITIES.

Capital

$100,000.00

Surplus and profits

86,423.90

Circulation

100,000,00

Deposits

522,368.22

$808,792.12

GUARANTY SAFE DEPOSIT AND TRUST COMPANY.

The pioneer trust company in Butler County is the Guaranty Safe Deposit & Trust Company of Butler, which began business in Butler July 1, 1903. The pro- moters of the company were A. E. Reiber,

J. V. Ritts, Daniel Younkins, and W. D. Brandon, all of Butler. A. E. Reiber was president of the first organization and W. D. Brandon, secretary. A charter was granted by the State department on the 19th of April, 1901, and the company op- ened offices in the old Park Theatre build- ing on East Diamond Street. George C. Stewart succeeded W. D. Brandon as sec- retary and treasurer, and Wayne Walker was chosen for the position of book-keeper. On September 15, 1902, the capital stock of the company was increased from $125,- 000.00 to $250,000.00. The company pur- chased the business block owned by J. F. Balph on South Main Street, and had it remodeled and fitted for a banking house. The building is equipped in modern style, provided with metal furniture, and in all respects is one of the most complete build- ings of its kind in western Pennsylvania. The doors were opened for business on July 1, 1903, and the company has contin- ued to conduct a general banking business, savings department, trust department, and real estate department. The officials of the company are A. E. Reiber, president ; W. D. Brandon, first vice-president; W. G. Douthett, second vice-president ; George C. Stewart, secretary; T. M. Baker, treas- urer; Wayne Walker, assistant treasurer; W. F. Rumberger, manager of the real es- tate department; Plummer Beighley and Nettie Frazier, clerks. The official board of directors are A. E. Reiber, W. G. Dou- thett, J. V. Ritts, A. L. Reiber, William Watson, W. D. Brandon, T. M. Baker, George A. Schaffner, W. H. Larkin, Dan- iel Younkins, and George C. Stewart. The company has been successful from the start and has won a leading rank among the institutions of its kind in western Pennsylvania. It has paid 6 per cent. dividends on its capital stock from the first year, and its last statement of resources and liabilities shows a capital of $250,- 000.00, surplus and profits amounting to $123,792.49; deposits of $505,406.81; and

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investments of $80,000.00. The trust de- partment shows trust funds held to the amount of $181,487.40, and the corporate trusts amount to $2,437,000.00. Among the institutions financed by this company is the T. W. Phillips Oil and Gas Company for $1,500,000.00.

The first treasurer of the company was Louis Berg, who resigned July 1, 1904, and was succeeded by T. M. Baker, who is the present treasurer.

THE STANDARD TRUST COMPANY.

During the early part of 1903 a number of Pittsburg promoters who had real es- tate interests in Butler organized The Standard Trust Company, and applied for a state charter, with the following named officers : C. D. Greenlee, formerly of But- ler, president, W. D. Wiley, of Pittsburg, vice-president, and Charles A. Bailey, of Butler, secretary and cashier. These offi- cers with J. A. Langfit, and R. W. Hervey, of Pittsburg, composed the board of di- rectors. The capital stock was $150,000.00 and the stockholders comprised a number of Butler citizens as well as Pittsburg cap- italists. The company secured quarters in the Wm. A. Forquer building on South Main Street, and began business in May, 1903, and continued to do a general bank- ing and trust business until March 23d, 1904, when it was closed. Harry A. Stauf- fer of Butler was appointed temporary re- ceiver, and on the 31st of March he was continued as a permanent receiver. Mr. Stauffer made a record never before equalled in the state in closing up the af- fairs of the company. In four months' time he had collected all the assets of the company, and inside of nine months from the date of the appointment of the receiver, all the depositors and other creditors were paid in full with interest. Mr. Stauffer applied for his discharge as receiver in March, 1905, but at the solicitation of some of the stockholders, who were dissatisfied

with the way the directors had managed the affairs of the company, the court con- tinued Mr. Stauffer as receiver, and he is still holding that position. Suits were in- stituted in court by the receiver at the in- stance of the dissatisfied stockholders against the directors of the company, and some of these suits are still pending.

HARRISVILLE.

The First National Bank of Harrisville was organized and began business in 1903, with a capital stock of $25,000.00. The of- ficers of the company are Robert L. Brown, president; Dr. W. B. Campbell, vice-president; and J. M. Elrick, cashier. The board of directors including the above officers are E. E. Wick, J. H. Morrison, E. W. Humphrey, W. W. McConnell, T. V. Porter, and J. V. Ritts. The company has transacted a safe and conservative busi- ness, and is one of the prosperous country banks. Its statement issued at the first of the year shows a surplus of $20,890.27, de- posits amounting to $2,520,646.70, and loans, bonds and securities amounting to $200,000.00.

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Century history of Butler and Butler County, Pa., and representative citizens 20th, Part 49

Author: McKee, James A., 1865- ed. and comp Publication date: 1909 Publisher: Chicago, Richmond-Arnold Pub. Co. Number of Pages: 1526

Author: McKee, James A., 1865- ed. and comp
Publication date: 1909
Publisher: Chicago, Richmond-Arnold Pub. Co.
Number of Pages: 1526