USA > Pennsylvania > Lehigh County > History of the counties of Lehigh and Carbon, in the commonwealth of Pennsylvania. Pt. 1 > Part 37
USA > Pennsylvania > Carbon County > History of the counties of Lehigh and Carbon, in the commonwealth of Pennsylvania. Pt. 1 > Part 37
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Jan. 18, 1812 .
$412,854
April 19, 1812. 269,460
Oct. 18, 18-12 .. 249,160
March 13, 1843 95,00
In the same advertisement which contained this statement the bank promised, "at the farthest, to resume specie payments on the 3d of July, 1843."
On May 3, 1843, a general meeting of the stock- holders of the bank was called for June 5th by thirty- three of their number, altogether owning one-tenth part of the bank's stock. The advertisement set forth the objects of the proposed meeting as, " first, to ob- tain from the directors an immediate and thorough investigation of the affairs of the bank; second, to obtain the amount of indebtedness and available assets; third, to obtain a general and partienlar state- ment of the affairs of the bank ; fourth, if the present condition is found to be such as to justify the expec- tation that in a reasonable time it may be in a sitna- tion to resume the regular business of banking, to take into consideration the propriety of making every effort possible to sustain the bank ; and, fifth, to inquire into the expedieney of eleeting five trustees to close the concerns of the bank, agregably to the act of April 1, 1822, in case the above-mentioned objeets cannot be obtained." This call was signed by Fred- erick A. Martin, Charles Kramer, William HI. Blumer, M. D. Eberhart, Thomas Butz, Joseph Saeger, C. Pretz, Jacob Sneger, Paul Balliet, Henry G. Guetter,
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HISTORY OF LEHIGHI COUNTY, PENNSYLVANIA.
John M. Micksch, John F. Rauch, Philip H. Gaepp, John Oerter, Ernst Lelnnan, Eberhart Freytag, Sebastian Goundie, Jacob Walle, Solomon Keck, George Blank, Bernhard Rees, William Eckert, John B. Moser, George Schaeffer, John Wagner, Joshua Fry, Nicholas Saeger, Christian Berger, Solomon Fogel, Thomas Kern, Solomon Gangwere.
At a meeting of the directors, a committee of three, consisting of Philip Mattis, Esq., of Easton, and Charles Saeger and Jacob Dillinger, of Allen- town, was nominated to investigate the concerns of the institution.
Pursuant to the call, a meeting of the stockholders was held June 5th, at the banking-house, and because of the large attendance adjourned to the public-house of William Craig. Stephen Balliet was elected presi- dent, and Augustus L. Ruhe secretary. The inves- tigating committee nominated by the directors at their meeting was confirmed, and they were instructed to employ counsel if necessary, make a thorough ex- amination of the affairs of the bank, and report within thirty days to " a grand committee of thirteen, consisting of Solomon Fogel, William Eckert, Charles Kramer, John Wagner, Christian Pretz, Philip H. Gaepp, Augustus L. Ruhe, Christian Berger, John Lichtenwalter, John F. Ranch, George Blank, John Saeger, and Anthony Krauss."
The investigating committee (in which John F. Ruhe had taken the place of Philip Mattis) began their work and carried it on diligently and rapidly.
Prior to this time the bank had made an assign- ment to John W. Hornbeck, Esq., Charles Kramer, George Keck, George Brobst, and William Blumer.
The feeling that existed in the community at this time may best be illustrated by following the inei- dents as they occurred from day to day. The Lehigh Bulletin, commenting on the failure of the bank, said, "The rottenness of this institution will now be made manifest. We have reason to believe that the stock is all sunk, and that the note-holders and depositors will get little or nothing." On the 14th of June, at a meeting held for the purpose of adopting such measures as might be necessary to protect the rights of the note holders, the following resolutions, which throw considerable light on the progress of affairs and the fevered state of public feeling, were adopted :
" WHEREAS, the Northampton Bank, . . . after a series of financial expedients as imimierons, as wild, and as reckless as they were unfitted to elleet the purpose for which they were intended, has, not withstanding the solemu and oft-repeated assurances of her perfect solvency, made by her principal officers and backed by the publication of statements of the most plausible nature, been at length compelled to admit her own insolvency and transfer the wreck of her property to assiguees for the benefit of creditors;
"AND WHEREAS, the officers of said bank, after squandering the greater part of her assets by ussigning, transferring, and pledging them to sun- dry irresponsible persons for the purpose of cking out a few more months of a miserable existence already most rninonsly prolonged, have dared on the eve of this general assignment und in view of it to prefer a por- tion of her note-holders by exchanging the only valuable portion of her property remaining in her possession for the Northampton Bank bills ireld by them and their friends, and thus securlug thom from loss, while
others as justly entitled to the payment of their claims are left to divide among themselves the comparatively valueless portlou that remains, all which is in our opinion fraudulent and contrary to the act of Assem- bly of 1843, enacted to prevent preferences in deeds of assignment;
" AND WHEREAS, the assignees are now by the operation of the law above and superior to the power that appointed them, and wholly be. yond their control, subject only to the action of the stockholders in joint meeting, und the Court of Common Pleas of the county at its next termt; therefore
" Resolved, That the assignees acting as they are for the benefit of all the creditors of this ill-omened institution, and able and willing as we feel they are to discharge their duty without fear, favor, or affection, be and they are hereby requested to Treat the recent transfer of the Manch Chuuk mortgage loan and other similar transfers as if they never had been made, and adopt such legal measures as will bring the malter be- fore the proper tribunal ju order that the right of the directors to make such transfer . . . may be legally investigated.
" Resolred, That the stockholders, in whose integrity we have ever had unbounded confidence, be requested to withhold their approbation from this assignment until it is ascertained beyond a doubt that the assignees in carrying it into effect will adopt such measures as are ne- cessary to test The legality of these obnoxious transfers."
Publie opinion became every day more ineensed against John Rice, the president of the ruined bank, for his reported nefarious, and certainly unwise and unfortunate, administration of its affairs. He with- drew from assisting the committee of investigation, refusing to give up certain papers belonging to the institution, and on the 4th of July left town. The assignees, thinking that all was not right, sent the sheriff after him, who overtook him at Coopersburg. Jle entered into bail in the sum of ten thousand dol- lars for his appearance at the next term of court. A week later he was burned in effigy on the public square by a crowd of men and boys, so violent had become the feeling of the community.
The committee of thirteen, of whose appointment mention has been made, received the report of the in- vestigating committee on July 10, 1843, and four days later made a statement to the stockholders and the public. This report set forth the following facts : The deficiency, admitting the assets in value as they appeared npon the books of the bank, amounted to 8263,059.11. "Add to this amount," they say, "snch assets as are considered worth nothing (but taken in the foregoing as good), $68,990.34, and the loss amounts to $322,049.45. Should to this amount the probable loss of the mortgage loan be added, . . . $66,500 it would swell the deficiency to $398,549.45. To this amount is to be added the item of dividends unpaid 86414.85, contingent fund $24419.60, discount and interest $1750.72, and profit and loss $847.89, amounting together to the enormous deficiency of $109,982.51.
" The committee under these circumstances would respectfully recommend to such of the assignees as have been approved by the stockholders to pursue such a course as will speedily bring the fallen institu- tion to a close."
This report was followed upon July 15th by the following resolutions by the directors :
" WuRERAs, it appears from the report of the committee of investiga- tion that John Rice, president of this bank, is a defaulter to a very Inrge amount, and considering him the principal cause of bringing still
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THE CITY OF ALLENTOWN.
heavier losses on the institution, by not only neglecting his duty while cashier, for suffering bills discounted to lie over withont being protested, whereby the indorser was relieved and the debts lost, but lately while president by sqnandering the funds of the bank and pledging its availa- ble assets in the hunds of irresponsible stock jobbers and brokers with- out the assent or knowledge of the Board ;
" AND WHEREAS, considering the conduct of the said Jolin Rice for several years past in studiously concealing from the Board of Directors the true condition of the bank, while he was deceiving both them, the stockholders, and the public with garbled statements and false represen- tations, is unworthy the further confidence of the Board or the counte- nance of an injured community ; therefore
" Resolved, That John Rice, president of said institution, be and he is hereby expelled from the Board, and that his official functions as presi- dent of this bank immediately cease.
" Resolved, That the proceedings of this meeting be signed by the Board, and published in all the papers of the Borough of Allentown.
" WILLIAM ECKERT, " President pro tem. " ABRAHAM NEWHARD. "HENRY EBNER. " PETER HOFFMAN. " GEORGE BLANK. " THOMAS KERN. " THOMAS B. WILSON. " SOLOMON FOGEL. "JOHN ROMIG. " Directors."
ter of this bank that the stockholders were to be in- dividually liable for the amounts they held, and this provision went far toward popularizing the project of the new bank, although it was bitterly opposed in some quarters.
The bank was not regularly organized until Oet. 9, 1844, when John Wagner was elected president. Business had scarcely been commenced when the in- stitution began to experience some effects of the hos- tility which had been shown towards it when it was in the formative period of its existence. In accord- ance with petitions, the Legislature in January, 1845, passed an act appointing a commissioner to examine into its affairs, which it had been alleged were im- properly administered. This commissioner, John D. Lawall, took depositions which he presented to the Legislature. The particular matter inquired about was whether the capital (one hundred thousand dol- lars) had actually been paid in, as it was provided it should be, and on this point the legislative committee to whom the subject was referred seemed to be satis- fied. They made a favorable report in April, 1846, showing that the law had been fully complied with. Much excitement had been caused, however, and . prejudice engendered against the institution, and the that the stockholders of the bank should be per- mitted to change its location to Mauch Chunk, of which place the citizens had memorialized the Legis- lature with great unanimity for its removal. It was, however, continued in Allentown, and its affairs were moderately prosperous for a short period. On Feb. 13, 1847, however, a bill to repeal the charter was passed by the Legislature, and the bank of course suspended business. Moses Y. Beach, of New York, was the capitalist of this concern, if it can be said to have had a capitalist. It was alleged .that money was simply brought from New York, counted in the bank, and then taken away, and that the institution never had the capital which the law required.
The failure of the bank was severely felt in the community, some persons losing all their possessions, and very many being severely crippled in their busi- ness affairs. It was long before the town recovered : committee in the conclusion of their report suggested from the depression following the shock.
Measures that came to Naught .- The first move- ment toward the organization of a financial institu- tion after the failure of the old Northampton Bank was made at a meeting held Jan. 15, 1844, at the house of John Gross (the American Hotel), of which Christian Pretz was president and Augustus L. Ruhe secretary. It was there resolved that a committee of seven be appointed who should endeavor to procure a bank in Allentown, and the president appointed as such committee Messrs. Peter Huber, John Wagner, William H. Blumer, Charles S. Bush, Col. George Wenner, Dr. C. H. Martin, and Augustus L. Ruhe. Auxiliary committees were appointed in each town- ! ship. Petitions were circulated among the people of Notice was given in the newspapers, in July, 1850, by a number of subscribers, that they intended making application to the next Legislature to incorporate the " Farmers' and Mechanies' Bank," at Allentown, the county, and, after they had been numerously signed, presented to the Legislature, which, in April, 1844, passed an act incorporating the Lehigh County Bank. The commissioners named in the act were | with a capital of one hundred thousand dollars, and Peter Huber, William H. Blumer, George Wenner, , privilege of increasing it to two hundred thousand dollars. The siguers of the notice were Jonathan Cook, A. G. Reninger, Thomas B. Wilson, James F. Kline, A. A. Wagner, Nathan Dresher, W. B. Powell, Joseph Weiss, W. Edelman, Jonathan Kulp, P. Wy- coff, Owen Saeger, Jesse Shaffer, C. H. Samson, Ste- phen Barber, Ephraim Grim, Elias Mertz, Eli Steckel. On Jan. 9, 1852, David Laury introduced a bill in the Legislature (which was passed the following April) incorporating the Farmers' and Mechanics' Bank, but no such bank was organized here, the project for
Augustus 1. Ruhe, Jacob Dillinger, John Troxell, Stephen Balliet, Jr., George Probst, David Gehman, John Wagner, Charles S. Bush, Dr. (. HI. Martin, Joseph K. Saeger, Peter Breinig, Christian Pretz, Charles Kramer, James Lackey, and John Moser, of Lehigh County ; John D. Bawman, Sr., John Fatzin- ger, and John Mears, of Carbon County ; Peter Sic- ger, Reuben Haines, and John Brock, of Philadel- phia ; Peter Laubach and C. A. Luchenbach, of Northampton County. Books were opened in Allen- town and elsewhere for the purpose of receiving sub- ; some reason falling through. scriptions to the stock, and a considerable number of In the mean time, in 1851, W. H. Bhummer & Co. had shares were soon taken. It was specified in the char- . established themselves as bankers and brokers. The
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HISTORY OF LEHIGH COUNTY, PENNSYLVANIA.
"('o." consisted of William Kern and Jesse M. Line. Their place of business was at first under Odd-Fel- lows' Hall, and afterwards between the Allentown National Bank and the Allen Honse. The firm car- ried on business successfully until 1877, when they failed.
The Allentown National Bank .- What is now the Allentown National Bank was originally organ- ized as a State bank, under the title of the Allentown Bank, Aug. 27, 1855, with a eash capital, paid in, of one hundred thousand dollars. The first president was Jacob Dillinger, the cashier Charles W. Cooper, who still holds that office, and the teller William J. Hoxworth. The board of directors was constituted as follows: Jacob Dillinger, John Appel, Stephen Bar- ber, Stephen Graff, Solomon Keck, Charles Kramer, Jesse M. Line, Welcome B. Powell, George Probst, Aaron G. Reninger, Joshua Seiberling, Hiram J. Schantz, and Dr. William Wilson. This bank sur- rendered its State charter Aug. 1, 1865, and organized the same day as a national bank under the provisions of the National Currency Act of 1864, with a capital of two hundred thousand dollars. Jacob Dillinger had died in November, 1861, and William Saeger had been elected president in the same month. He was continued in that office when the national bank was organized, and Mr. Cooper was retained in the position of cashier. Mr. Iloxworth had resigned as teller in May, 1864, and his place had been filled by Joseph E. Balliet, who was re-elected at the time of reorganization, and still holds the place. He has been connected with the bank sinee 1857. The first board of directors of the Allentown National Bank consisted of William Saeger, Jacob Cornell, Daniel Clader, C. F. Diekenshied, John Fogel, Stephen Graff, Boas Haus- man, James K. Mosser, Tilghman II. Martin, Chris- tian Pretz, John G. Schimpf, Henry Schnurman, and Dr. William Wilson. The capital of the bank was increased to five hundred thousand dollars in 1870. William Saeger, whom we have stated was elected president in 1861, held that office until Aug. 1, 1883, when he resigned because of advanced years, and was sneceeded by Esaias Rehrig, who at present holds the position.
This bank began business in the building which had been occupied by the old Northampton Bank (used as a dwelling-house and for other purposes from 1843 to 1855), and in 187I built its present ele- gant and substantial banking-house, upon the same ground on which the old one stood. This is a spa- cious structure, two stories in height (though with but one floor), and is built of briek with Nova Scotia stone facings. It is finished within with hard wood, is most conveniently and tastefully arranged, and contains a massive indestructible vault. The cost of the building with ground was not far from forty-six thousand dollars.
Following is a list of the directors of this bank from 1855 to 1883:
John Appel .*
John E. Lentz.
Allen Appel .*
William R. Lawfer.
Phaon Albright.$
Abr. W. Lerch.
Stephen Balliet.#
Charles HI. Martin.+
Stephen Barber.#
Tilghman 11. Martin .*
William E. Barnes .*
E. G. Martin. A. J. Martin.
Daniel Boyer .*
Solomon Boyer.
James K. Mosser.
Tilghman II. Boyer.
W. K. Mosser.+
James P. Barnes.
Welcome B. Powell.
Jolin Bortz.
George Probst.
Samuel A. Brown.
Christian Pretz .*
Charles E. Christ.
lenry B. Pearson.
Daniel Clader.#
Aaron G. Reninger.
Jacob Cornell.#
Edward Ruhe.
Jacob Dillinger,*
Werner K. Ruhe.
Charles F. Dickenshied .*
Esaias Rehrig.
Alfred .I. G. Dubbe,
Joshua Seiberling.
M. D. Eberhard,
Hiram J. Schantz.
Enos Erdman.
Charles Seagreaves.
Jolin H. Vogel.
Lewis Schmidt,&
H. II. Fisher.
John G. Schimpf.
Stephen Graff.# Henry Schuurman. *
Jonas German.
Thomas Steckel.
Benjamin I. Hagenbuch.
William Saeger.
Boas Hausman,#
Alfred G. Saeger.
John L. Hoffman.#
E. W. Trexler.
Milllin Hannmn.
Jonas Trexler.
W. S. Herbst. William Wilson.$
Solomon b. Keck.#
Thomas Weavers
Charles Kramer .* Joseph Weaver.$
Andrew S. Keck.
David Weida.
Jesse M. Line.
Angust Wel.er. Robert Yost.4.
Henry heh.
Those marked thus (*) are deceased.
The present officers and working force of the bank are Esaias Rehrig, president; Charles W. Cooper, cashier; Joseph E. Balliet, teller; Charles M. W. Keck, corresponding clerk ; Charles O. Schantz, tel- ler's assistant; David B. Sanders, Alfred P. Bach- man, individual ledger clerks; John T. Scheirer, general ledger clerk ; Frederick H. Lichtenwallner, messenger ; George Stuber, janitor and watchman.
Following are sketches of four of the gentlemen most prominent in the history of this institution :
Hon. Jacob Dillinger, the first president of the Allentown Bank (now the Allentown National Bank), figured more conspicuously in Lehigh County than any other person during the period of his lifetime, having occupied creditably more important public stations than any other one in it.
" Judge" Dillinger was a elose observer of human nature, correct in his habits of life, patriotic in his impulses, and firm in his friendship, and these, with his practical views and general information on sub- jects of public interest, gave him an influence of importance, as well as popularity, with the mass of his fellow-citizens. He had so endeared himself to his " Pennsylvania Dutch" fellow-citizens that he was the Knickerbocker among them. His advice on almost every subject was asked, especially in matters of law, and it can be said positively that in such mat- ters he was a safe counselor.
He was a genuine lover of liberty, and an enthusi- astie Democrat, but independent enough to gain and retain the confidence of the opposition parties. He had enemies, but always commanded their respect.
92190
1-5/2
F
BANK
ALLENTOWN NATIONAL BANK, ALLENTOWN, PA.
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THE CITY OF ALLENTOWN.
Although maintaining an upright walk and a godly conversation before the world, he did not connect himself with a religious sect until two years before his death, when he and his youngest child, a son, were admitted, by the rites of confirmation, by Rev. Dr. B. M. Schmucker, a member of St. John's Lu- theran Church of Allentown. His wife being a de- vout member of the German Reformed Church, the rest of the family, through her influence and training, were reared, under the auspices of the venerable Rev. Father Joseph Dubbs, D.D., in its faith, and were ad- mitted and still remain in its church.
He was a Mason, being early initiated and admitted a member of Lafayette Lodge, No. 71, of Philadel- phia.
He was educated in the schools of the county, and of Philadelphia, in the English, German, and French languages, and was a mathematician of no mean order.
In connection with the many trusts he performed in filling important offices, surveying, settling de- cedents' estates, etc., his specialty was the mercantile trade, being engaged in that business from the time he was nineteen years of age until several years before his death.
Judge Dillinger was born at Dillingersville, Lower Milford township, this county, May 27, 1798, and died Nov. 3, 1861. He was of German ancestry, his great-grandfather coming from Würtemberg, Ger- many, and settling where Dillingersville now is.
When he was about seventeen years of age his father, with his family, removed to Philadelphia to engage in the wholesale dry goods business, where he entered a drug-store, and at the age of nineteen years his father sent him to Ironton, this county, for the purpose of selling out a stock of goods that had been furnished by the father to a party there on credit and who was not successful and returned the possession of the goods. In disposing of the same he showed much aptness and skill as a salesman, and so encouraged the father that before he had sold the entire stock he es- tablished him in business in Balliettsville, this county. He subsequently removed to Ruchsville, also in this county, Allentown, Hellertown, Northampton Co., and again Allentown, respectively, continuing in the mercantile business until within a few years before his death.
During the time he lived in Balliettsville, in the year 1819, he was elected a member of the House of Representatives of this State, being at the time but twenty-two years of age and the youngest member of the body. He was re-elected three times, it being the first instance in the county that a member served four successive terms. Having a little experience in civil engineering, he was appointed to and accepted, at the close of his membership, the office of deputy sur- veyor of the county, which was an office of import- ance during that time.
In 1830 he removed to Allentown, having been
appointed by Governor Wolf elerk of the courts, which office he continued to occupy, and for a time that of prothonotary, until 1836. He was a member of the Convention of 1837-38 which revised the Con- stitution of the State. He was twice elected Democratic Presidential elector, easting his vote for Jackson and Van Buren, respectively. He was associate judge from 1844 for five years, and again from 1851 until he resigned to accept the presidency of the Allentown Bank. In the year 1850, after his first term of judge- ship, he was elected justice of the peace for Allen- town, which he resigned to accept his second term of judgeship. In 1855 he was made the first president of the Allentown Bank, now the Allentown National Bank, which position he held until his death, it recog- nizing his integrity, prudence, and correct business habits, and that much of its prosperity, character, and usefulness was owing to him.
He was again elected to the office of justice of the peace in 1861. In 1848 he was nominated to Con- gress, to fill the unexpired term of Hon. John W. Hornbeck, deceased, who died shortly after he took his seat, but declined it on account of delicacy of health ; whereupon the late Hon. Samuel A. Bridges was nominated and elected. Ile was the rival candi- date for canal commissioner of the Hon. Morris Long- streth. He held the office of burgess of Allentown. He was one of the projectors of the Lehigh County Agricultural Society, and to him is due its plan of organization.
In the first organization under the charter of the Lehigh Valley Railroad Company, recognizing the importance of the influence Judge Dillinger brought to bear in securing the charter, he was made, as a compliment, the first superintendent, and Dr. Jesse Samuels, the member of Legislature who was mainly instrumental in the passage of the charter of incor- poration, its first engineer.
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