First National Bank, Benson, PA (Charter 7935)
First National Bank, Benson, PA (Chartered 1905 - Receivership 1927)
Town History
Benson is a borough in Somerset County, Pennsylvania, located about 10 miles south of Johnstown. The town is more commonly known to locals as Hollsopple, which is also the United States Postal Service name for the town, zip code 15935. It is part of the Johnstown, Pennsylvania Metropolitan Statistical Area. Benson is served by the Conemaugh Township Area School District. The population was 185 at the 2020 census. In 1900 the population was 249, peaking in 1930 at 451.
Hollsopple, or Holsopple, founded 1880, was named for founder Charles Holsopple, the original owner of the town site.[1]
Benson had one National Bank chartered during the Bank Note Era, and it issued National Bank Notes.
Bank History
- Organized June 23, 1905
- Chartered October 4, 1905
- Receivership March 28, 1927
- Notation on Organization Report: (Hollsopple P. O.)
In July 1905, application was made for a charter for the First National Bank of Benson, Somerset County, capital $25,000.[2] The officers elected for the new financial institution in Holsopple were A.E. Cassler of Holsopple, president; Jacob I. Kaufman of Davidsville, vice president. The directors were H.I. Cassler, N.B. Shaffer, Hiram Bowman, F.D. Yoder, all of Holsopple, Charles C. Wehn of Johnstown; Scott Lohr of Davidsville; Dr. J.H. Gardner of Stoystown; and Charles Walters of Jenners.[3]
In June 1906, L.A. Beabes, cashier of the First National Bank of Benson who earlier in the year had succeeded C.I. Shaver,[4] resigned and accepted a like position with the First National Bank of Garrett. Mr. Alter, who came to Garrett some few weeks ago had resigned that position. The Benson bank had been in existence only two months and Mr. Beabes' resignation left that bank without a cashier.[5]
In November 1920, suit was filed to recover $50,000 with interest from October 10, 1919 to cover the loss from an alleged burglary in the the First National Bank of Benson of September 26, 1919. Ocean Accident and Guarantee Corp., Ltd., of London, with whom the bank held burglary insurance, was alleged to have issued a policy calling for $50,000 protection to the bank on February 8, 1919. Bank officials said after filing proof of loss, the insurance company refused to pay their claims on a technicality.[6]
On November 19, 1923, the Federal Grand Jury indicted James E. Cassler, president; A.E. Cassler, cashier; of the First National Bank of Benson, Hollsopple and C.F. Wilson with misapplication of funds and making false entries on reports to the Comptroller of the currency. James E. Cassler and Wilson were charged with two counts of misapplication and three counts of false entries, while A.E. Cassler was charged with four counts of making false entries.[7]
On May 16, 1924, James E. Cassler, president of the First National Bank of Benson, at Holsopple, and C.F. Wilson were acquitted in the Untied States District Court, Pittsburgh, on a charge of making false entries. Judge R.M. Gibson who presided directed the jury to return a verdict of acquittal as to A.E. Cassler, cashier of the bank who was also under indictment on a charge of making false entries. The latter was the father of the bank president. The indictments were handed down in November 1923.[8]
On January 19, 1927, four of the persons recently convicted in the United States Court in Pittsburgh in the check-kiting case in connection with banks in Somerset and Cambria Counties were sentenced by Judge Gibson. The action was the result of banks in Johnstown and Somerset County being swindled out of more than $120,000. Only one of thirteen defendants, Mrs. Martha V. Jones of Benson was acquitted. She was defended at the trial by Attorney C.F. Uhl. Charles F. Wilson said to have been the leader of the scheme was sentenced to two years in the Federal prison at Atlanta and William Mooney was sentenced to 18 months to the same prison. Frank J. Gabrie and Harry I. Walters were given four months each in the Somerset County Jail. The other defendants who were paroled were Fred J. Sprengle and W.H.C. Sprengle, brothers; Don R. Simpson, John H. Cooney and Samuel Silverman. All the defendants were from Johnstown, Simpson being formerly from Windber. The court stated that the evidence was somewhat vague in showing their exact connection.[9]
Mrs. Jones was the daughter of A.E. Cassler, a former president of the bank and the wife of William Jones, a Somerset County coal operator. The investigation made by the Justice Department also brought to light the robbery of Liberty bonds valued at $75000 stolen from the safe deposit vaults of the bank at Hollsopple six years ago (in 1920). This fact according to Government agents was never made public.[10]
In April 1927, bank examiner George H. Smith was in charge of the institution. This was the bank that a gang of Johnstown swindlers used in a gigantic check-kiting conspiracy. It also had a vault robbery some years ago that involved it in expensive litigation. The stigma resulted in a loss of public confidence and subsequent loss of business.[11]
In March 1929, Lloyd Littrell, receiver, was authorized to accept compromise settlements to dispose of the remaining assets of the institution at public or private sale. Litrell was appointed receiver on March 28, 1927. The remaining assets consisted of bills receivable at a face value of $84,152.70 and other assets of nominal value of $63,193.02, consisting of real estate.[12]
In January 1932, announcement was made by Otis B. Coppedge, receiver of the First National Bank of Benson, Holsopple, that checks for the third and final dividend of 12.25% would be distributed at the Ira J. Moon and Son Store.[13] Previous dividends of 45% had been paid.[14]
Official Bank Title
1: The First National Bank of Benson, PA
Bank Note Types Issued
A total of $363,600 in National Bank Notes was issued by this bank between 1905 and 1927. This consisted of a total of 29,088 notes (29,088 large size and No small size notes).
This bank issued the following Types and Denominations of bank notes:
Series/Type Sheet/Denoms Serial#s Sheet Comments 1902 Red Seal 3x10-20 1 - 360 1902 Date Back 3x10-20 1 - 2890 1902 Plain Back 3x10-20 2891 - 6912
Bank Presidents and Cashiers
Bank Presidents and Cashiers during the National Bank Note Era (1905 - 1927):
Presidents:
- Alfred E. Cassler, 1906-1906
- Fred Border, 1907-1909
- Charles C. Wehn, 1910-1917
- James Elwood Cassler, 1919-1922
- Alfred E. Cassler, 1923-1925
- J. F. Wilson, 1925-1927
Cashiers:
- Charles I. Shaver, 1906-1906
- Louis A. Beabes, 1906-1906
- John Hackett Cooney, 1906-1906
- Alfred E. Cassler, 1907-1922
- James L. Brant, 1925-1925
- J. W. Kaufman, 1926-1926
- Forrest Lee Ferrell, 1927-1927
Other Known Bank Note Signers
- No other known bank note signers for this bank
Bank Note History Links
Sources
- Benson, PA, on Wikipedia
- Don C. Kelly, National Bank Notes, A Guide with Prices. 6th Edition (Oxford, OH: The Paper Money Institute, 2008).
- Dean Oakes and John Hickman, Standard Catalog of National Bank Notes. 2nd Edition (Iola, WI: Krause Publications, 1990).
- Banks & Bankers Historical Database (1782-1935), https://spmc.org/bank-note-history-project
- ↑ The Daily American, Someset, PA, Fri., Aug. 8, 1980.
- ↑ The Pittsburgh Press, Pittsburgh, PA, Mon., July 31, 1905.
- ↑ The Daily American, Somerset, PA, Thu., July 27, 1905.
- ↑ The Bankers' Magazine, Vol. 72, Jan. 1906-June 1906, p. 802.
- ↑ The Republic, Meyersdale, PA, Thu., June 14, 1906.
- ↑ Pittsburgh Post-Gazette, Pittsburgh, PA, Sun., Nov. 28, 1920.
- ↑ The Pittsburgh Post, Pittsburgh, PA, Tue., Nov. 20, 1923.
- ↑ The Indiana Gazette, Indiana, PA, Sat., May 17, 1924.
- ↑ The Republic, Meyersdale, PA, Thu., Jan. 27, 1927.
- ↑ The Pittsburgh Post, Pittsburgh, PA, Sat., July 10, 1926.
- ↑ The Republic, Meyersdale, PA, Thu., Apr. 14, 1927.
- ↑ The Pittsburgh Press, Pittsburgh, PA, Fri., Mar. 29, 1929.
- ↑ The Daily American, Somerset, PA, Tue., Jan. 19, 1932.
- ↑ New Castle News, New Castle, PA, Mon., Dec. 7, 1931.