First National Bank of Freeland, PA (Charter 6175)

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The old First National Bank building at 701 Centre Street, Freeland, Pennsylvania, ca2022. The stone at top center has the year 1934. Courtesy of Google Maps

First National Bank of Freeland, PA (Chartered 1902 - Receivership 1934)

Town History

Freeland is a borough in Luzerne County, Pennsylvania. It was originally called Birbeckville, South Heberton, and Freehold. Freeland is 18 miles south of Wilkes-Barre and 10 miles northeast of Hazleton. It was incorporated as a borough on September 11, 1876. Coal mining was the chief industry in the community through the mid-20th century. As of the 2020 census, the population was 3,833. In 1900 the population was 5,254, peaking in 1930 at 7,098.

Freehold and South Heberton merged to create modern-day Freeland. Freeland was incorporated as a borough on September 11, 1876. Two years later, in 1878, a frame school was built in the town. By 1880, the population of the community surpassed 600. In 1883, the first Slovak Lutheran Church in America was organized in Freeland. The population steadily increased due to the expanding coal mining industry in the region.

Freeland had two National Banks chartered during the Bank Note Era, and one of those banks issued National Bank Notes.

Bank History

The old First National Bank of Freeland, located at Centre and Amy Streets, ca2016. This became an office of the Peoples First National Bank after the 1966 merger of the Peoples Savings and Trust Co. and First National Bank of Hazleton. Courtesy of Google Maps
  • Organized February 15, 1902
  • Chartered March 27, 1902
  • Opened for business April 1, 1902
  • Conservatorship March 23, 1933
  • Receivership February 28, 1934

In January 1902, W.D. Beckley and H.A. McKillip of Bloomsburg organized the First National Bank of Freeland with a capital stock of $50,000.[1] Messrs. Beckley and McKillip had just organized the new First National Bank at Shickshinny about two years ago.[2] On February 11, 1902, the following officers were elected: A. Oswald, president; George Christian, vice president; F.M. Everett, cashier. The directors were M.E. Grover, B.F. Davis, John J. McMenamin, Albert Goeppert, Peter Timony, Dr. S.S. Hess, T. Lewis Edmunds, James E. Griffith, and John Rugan. The bank planned to open on April 1st with an outside source reporting that Neuburger's building south of Hartman's butcher shop would probably be selected.[3] Mr. Everett had resigned from the Mt. Carmel Banking Co. to accept the new position and the directors there were loath to accept the resignation of the man who had served them so long and faithfully.[4]

In February 1905, officers decided to place a fire- and burglar-proof vault in their new quarters in the DePierro building.[5]

In March 1906, F.M. Everett, cashier and William Beckley, a lawyer, were charged with embezzling and conspiracy. Both warrants were sworn out by A. Oswald, president of the bank before United States Commissioner C.F. Hill of Hazleton. President Oswald said the money, $56,900, had been borrowed or taken without our knowledge. There was no collateral whatsoever to cover the shortage. The shortage was discovered after the national bank examiner departed when the balance sheets for banks where part of the surplus was kept did not tally. Everett confessed the situation and had 15 notes of $5,000 each from the Pennsylvania paper mills of Catawissa drawn on the First National Bank of Catawissa. Three blank notes signed by the treasurer of the Pennsylvania paper mills were also found in his possession. The arrest of Everett and Beckley caused a big sensation at Freeland which had two banks, the First National and the Citizens' chartered under the laws of the state.[6] F.M. Everett, along with Wm. Beckley, a young attorney of Bloomsburg, and H.A. McKillip were in custody at Hazleton charged with wrecking the bank which closed its doors.[7] 

It became more and more evident daily that Cashier Everett of the First National Bank of Freeland was the victim of some hidden power. If it were otherwise the men whom he befriended would have never permitted him to remain in the lockup so long, and particularly when only such a small amount of bail was required. Up to Monday morning, March 19th, Cashier Everett had every hope of securing bail, but when the noon hour arrived and the desired bail failed to arrive, he lost heart and became very much dejected. "The Freeland Bank failure should not be a surprise," said a man who watched the progress of the chain of banks started in the coal regions. In February J.B. McAfee, the state banking commissioner, publicly called attention to the conspiracy to rob depositors by organizing a chain of banks, and then borrowing the deposits with cheap bonds as security. The bank commissioner then said, “I deem it my duty to allude briefly to that which might be called conspiracy on the part of an unscrupulous coterie of persons to obtain control of and wreck banks and trust companies." Their first attempt in this state was about a year ago, and, fortunately for the company upon which they descended, a timely discovery was made by one of the examiners, and their plans, although begun with ultimate hopes of success, were frustrated." It's of interest to know that the Catawissa paper mill touched the Coal Trust up for a total of $47,000 in costs and damages. The promoters put it on the Catawissa Creek and then sued for damages for pollution of the stream by coal dirt. They first extracted $22,000 out of Coxe Bros. & Co. and then they went after the other companies. They had a pull in Bloomsburg and a corporation had slight chances in Columbia County. The state authorities were never able to understand just what the connection was between the gang of bank promoters at Bloomsburg and the Appleyard syndicate, yet the men who investigated felt sure that Boston was the headquarters gang and that the brains of the crowd was concealed in one of the offices devoted to the development of copper mining schemes. The Freeland bank was looked upon as a "plant." The Bloomsburg crowd tried to do business in Allentown, but ran afoul of the Allentown bankers who declined to have anything to do with them.[8]

Arthur E. Appleyard was the head of what was known as the "Appleyard Syndicate," which attempted to secure a chain of banks throughout the country and did succeed in controlling banks in Buffalo, Washington, and Philadelphia. In 1904 A.E. Appleyard acquired a controlling interest in two Washington banks, the Citizens and the Traders National. He and his associates bought control of the City Trust Company in Philadelphia in 1904, giving notes for the stock. Almost immediately the syndicate secured a loan of $310,000 from the City Trust Co. on stock of a Buffalo bank and also made other loans, causing the collapse of the trust company. A.E. Appleyard formerly had offices in Boston where he was a promoter of street railway properties in Western New York and Ohio. In 1904, the failure of the German Bank of Buffalo, New York, was followed by the indictment of Appleyard who was alleged to have secured large sums from the bank in connection with his railway projects.  His protracted fight against extradition was one of the strongest ever made at the state house.[9]

On June 8, 1908, in the United States circuit court in Williamsport, the case of the government vs. W. D. Beckley and F. M. Everett, growing out of the Freeland Bank affair, the defendants were fined respectively $500 and $1,000. This case was not tried by a jury but the fact of the cases were submitted to the Court under a plea which would have permitted the imposition of a heavy sentence if there had been any intention to cheat or defraud on the part of the defendants. The action of the Court shows that the Government's case was founded on technical irregularities in the dealings between the corporations represented by the defendants and that the defendants did not in any way personally profit by them. The defendants were represented by A.W. Duy, Esq., and Wm. H. Rhawn, Esq., as counsel. This finally disposes of the cases which have been pending against the defendants.[10]

In March 1907, suit was brought against the Title Guaranty and Surety Co. for $15,000, a sum alleged due the bank owing to the default of Cashier F.M. Everett. The suit was brought presumably to avoid the statute of limitations. Everett disappeared and while the surety was gilt-edged, the suit had never been pressed.[11]

On June 8, 1908, in the United States circuit court in Williamsport, the case of the government vs. W. D. Beckley and F. M. Everett, growing out of the Freeland Bank affair, the defendants were fined respectively $500 and $1,000. This case was not tried by a jury but the facts of the cases were submitted to the Court under a plea which would have permitted the imposition of a heavy sentence if there had been any intention to cheat or defraud on the part of the defendants. The action of the Court shows that the Government's case was founded on technical irregularities in the dealings between the corporations represented by the defendants and that the defendants did not in any way personally profit by them. The defendants were represented by A.W. Duy, Esq., and Wm. H. Rhawn, Esq., as counsel. This finally disposed of the cases which had been pending against the defendants.[12][13] In May 1910, on a short opinion written by the judges of the supreme court in the case of the First National Bank of Freeland against F.M. Everett and the state Guaranty and Surety Company of Scranton, the judgement of the lower court was affirmed and the verdict of $17,000 allowed to stand.[14]

On Tuesday, January 9, 1912, the stockholders elected to following directors: George S. Christian, Dr. S.S. Hess, B.F. Davis, J.J. McMenamin, Jonah Evans, A. Oswald, Albert Geoppert, John Evans, James E. Griffiths, and James Timony. The directors elected the following officers: A. Oswald, president; George Christian, vice president; and J.J. McMenamin, secretary.[15] 

In 1914, W. Bates Bell was cashier of the Orbisonia National Bank of Orbisonia, Pa. Jesse G. Bell was cashier of the First National Bank of Freeland, Pa. Harry A. Bell was cashier of the National Iron Bank of Pottstown, Pa. W.T. Bell was cashier of the Central National Bank of Mount Union, Pa. Herbert Bell, was receiving teller in the Penn Trust Co. of Reading, Pa. Russell S. Bell, was assistant cashier of the Central National Bank of Mount Union, Pa. Robert K. Bell, the youngest of family, was being trained for the banking business. Remarkably, these sons were all bankers, and received their training in the Central National Bank of Mount Union under their father, W.T. Bell, who was one of the ablest and best-known cashiers in the State.[16]

In September 1914, J.G. Bell, cashier of the First National Bank of Freeland, resigned. He accepted a similar position with the First National Bank of Nanticoke, the latter position made vacant through the death in June of Harry Flanagan.[17] The position in Nanticoke had been filled temporarily by J. Castle Ridgway who resigned in September to re-enter government service in the Federal Reserve Board at Washington, DC.[18]

On Thursday, February 22, 1917, F.M. Everett, former cashier of the Mount Carmel Banking Co. who left Mount Carmel a number of years ago died at his home in Berwick.[19] In December 1917, Henry Bell resigned as cashier to accept a vice president's position in the National Iron Bank of Pottstown.[20]

In January 1924, stockholders elected the following board of directors: Joseph G. Sarricks, B.F. Davis, Dr. H.M. Neale, A.B. Jessup, John Evans, Dr. C.A. Welsh, Henry George, James E. Griffith, W.E. Martin, George Christian, Michael Oleyar, Edgar Alberts and Dr. S.S. Hess. The directors then elected the following officers: Joseph G. Sarricks, president; A.B. Jessup, vice president; Dr. S. S. Hess, secretary.[21]

On Tuesday, January 12, 1932, The annual meeting of the stockholders was held at the banking house at 638 Centre Street. The following board of directors was re-elected for the coming year: Edgar Albert, D.S. Buckley, William M. Davis, John Evans, James E. Griffith, Henry George, S.S. Hess, H.M. Neale, Michael Oleyar, Jos. G. Saricks, C.A. Welsh, and Harry Zimmerman. The board met following the election and elected Edgar Albert, president; Jos. G. Saricks, vice president; S.S. Hess, secretary; John J. McGarey, cashier; Stanley Lloyd and G.A. Virusky, assistant cashiers.[22]

On March 24, 1933, the Philadelphia Federal Reserve Bank announced the appointment of conservators for 15 member banks in Pennsylvania. John J. McGarey was named conservator of the First National Bank of Freeland.[23] The bank reopened under restricted services on Monday, March 27th.[24]

On February 2, 1934, the First National Bank of Freeland, which had been operating on a restricted basis since the banking holiday last March, was reopened on a full basis. The bank reorganized and recapitalized and depositors would receive 60% of their deposits immediately. The remaining 40% would be held by the old bank until the assets on hand were liquidated. The officers and directors of the new bank were Edgar Albert, president; Joseph G. Saricks, vice president; Daniel S. Buckley, secretary; William M. Davis, Henry George, James E. Griffith, Michael Oleyar, and Harry Zimmerman, directors. The cashier was John J. McGarey and the assistant cashiers were Stanley H. Lloyd and Gaza Virusky.[25] The name of the new bank was "First National Bank in Freeland," Charter 13970.

In October 1934, Joseph Van Dyke, receiver appointed by the Comptroller of the Currency to liquidate the old First National Bank of Freeland, issued the regular quarterly statement which showed an income of $46,912.80. Against this income expenses of $5,927.52 were applied which included salaries and all expenses under the receivership and conservator's expenses of $15,294.76. The bank was closed on March 5, 1933 and operated on a restricted basis under a conservator until March 1934.[26]

On May 10, 1962, the Board of Governors of the Federal Reserve System announced its unanimous approval of the acquisition of the assets of the First National Bank in Freeland and the assumption of its liabilities by the People's Savings and Trust Company, Hazleton.[27] The board of directors of the First National Bank in Freeland with Joseph M. Griffith as president and Emory D. Shanno, vice president, through their far-reaching vision decided it would benefit Freeland and the First National Bank to join with a larger institution. On June 1st, the Peoples Savings and Trust Co., Hazleton, began to operate in Freeland. The combined bank could offer increased loaning power and greater aid to industrial development along with complete banking services, including Trust facilities now available to people in the Freeland area.[28]

On Friday, May 27, 1966, officers for the Peoples First National Bank and Trust Company were elected. The new banking institution was the result of the merger of the Peoples Savings and Trust Co. and the First National Bank of Hazleton, approved by the comptroller of the currency on April 11th. Its total assets of approximately $45 million made it the Hazleton area's largest financial institution. O.E. Phillips was elected president and Arthur E. Dick, Jr. was named chairman of the board. The post of executive vice president went to Eugene C. Bogdon. Phillips was previously president of the First National Bank and Dick was president of the Peoples Savings and Trust Co. and Bogdon was the executive vice president. During the interim period until the Peoples First National occupied its newly constructed building at the northwest corner of Broad and Wyoming Streets, the bank would operate at these four locations: the main floor of the Traders' Building at Broad and Wyoming Streets, the office at 31 West Broad Street, the Church Street office at Seventh Street, and the Freeland office on Centre Street. A Conyngham office was scheduled to open in the Lantern Lane building on Main street in a month. On July 6, 1888, the Lehigh National Bank, organized by a group of local businessmen, opened for business in Hazleton. At the suggestion of the comptroller of the currency, the name was changed to the First National Bank because it was the first federal bank chartered in Hazleton. The People's Savings and Trust Company was opened as a state bank by a group of local businessmen on June 19, 1905. The First National Bank at one time had a branch office in Freeland. This office later became the First National Bank of Freeland which in June 1962 became a part of the People's Savings and Trust Co.[29]

Official Bank Title

1: The First National Bank of Freeland, PA

Bank Note Types Issued

1902 Red Seal $5 bank note with SN 1C and pen signatures of F.M. Everett, Cashier and A. Oswald, President. Courtesy of Heritage Auctions, www.ha.com
1902 Plain Back $5 bank note with a 1922 plate date and stamped signatures of George S. Christian, Cashier and Joseph G. Saricks, President. Courtesy of Heritage Auctions, www.ha.com
1929 Type 1 $20 bank note with printed signatures of John J. McGarey, Cashier and Edgar Albert, President. Courtesy of Heritage Auctions, www.ha.com

A total of $1,658,610 in National Bank Notes was issued by this bank between 1902 and 1934. This consisted of a total of 206,848 notes (173,300 large size and 33,548 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 4x5 1 - 2730
1902 Red Seal 3x10-20 1 - 2148
1902 Date Back 4x5 1 - 6600
1902 Date Back 3x10-20 1 - 4880
1902 Plain Back 4x5 6601 - 13420 Plate dated 1902
1902 Plain Back 3x10-20 4881 - 8965 Plate dated 1902
1902 Plain Back 4x5 1 - 9621 Plate dated 1922
1902 Plain Back 3x10-20 1 - 6441 Plate dated 1922
1929 Type 1 6x5 1 - 3122
1929 Type 1 6x10 1 - 1618
1929 Type 1 6x20 1 - 478
1929 Type 2 5 1 - 1482
1929 Type 2 10 1 - 518
1929 Type 2 20 1 - 240

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1902 - 1934):

Presidents:

Cashiers:

Other Known Bank Note Signers

  • No other known bank note signers for this bank

Bank Note History Links

Sources

  • Freeland, 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
  1. ↑ The Plain Speaker, Hazleton, PA, Thu., Jan. 23, 1902.
  2. ↑ The Columbian, Bloomsburg, PA, Thu., Apr. 19, 1900.
  3. ↑ The Plain Speaker, Hazleton, PA, Tue., Feb. 11, 1902.
  4. ↑ The Daily News, Mount Carmel, PA, Thu., Feb. 11, 1902.
  5. ↑ The Plain Speaker, Hazleton, PA, Tue., Feb. 21, 1905.
  6. ↑ Republican and Herald, Pottsville, PA, Sat., Mar. 17, 1906.
  7. ↑ Public Press, Northumberland, PA, Fri., Mar. 23, 1906.
  8. ↑ The Allentown Leader, Allentown, PA, Tue, Mar. 20, 1906.
  9. ↑ The Buffalo News, Buffalo, New York, Thu., June 13, 1907.
  10. ↑ The Morning Press, Bloomsburg, PA, Tue., June 9, 1908.
  11. ↑ The Tribune, Scranton, PA, Tue., Mar. 19, 1907.
  12. ↑ The Morning Press, Bloomsburg, PA, Tue., June 9, 1908.
  13. ↑ Wilkes-Barre Times Leader, Wilkes-Barre, PA, Wed., Oct. 20, 1909.
  14. ↑ Wilkes-Barre Times Leader, Wilkes-Barre, PA, Tue., May 24, 1910.
  15. ↑ The Times Leader, Wilkes-Barre, PA, Thu., Jan. 11, 1912.
  16. ↑ Mount Union Times, Mount Union, PA, Fri., June 26, 1914.
  17. ↑ Wilkes-Barre Times Leader, Wilkes-Barre, PA, Tue., Sep. 15, 1914.
  18. ↑ Pittston Gazette, Pittston, PA, Thu., Sep. 3, 1914.
  19. ↑ Mount Carmel Item, Mount Carmel, PA, Sat., Feb. 24, 1917.
  20. ↑ The Plain Speaker, Hazleton, PA, Tue., Dec. 18, 1917.
  21. ↑ The Plain Speaker, Hazleton, PA, Wed., Jan. 9, 1924.
  22. ↑ The Plain Speaker, Hazleton, PA, Wed., Jan. 13, 1932.
  23. ↑ Standard-Speaker, Hazleton, PA, Sat., Mar. 25, 1933.
  24. ↑ The Plain Speaker, Hazleton, PA, Mon., Mar. 27, 1933.
  25. ↑ The Plain Speaker, Hazleton, PA, Thu., Feb. 1, 1934.
  26. ↑ The Plain Speaker, Hazleton, PA, Fri., Oct. 5, 1934.
  27. ↑ Standard-Speaker, Hazleton, PA, Tue., May 15, 1962.
  28. ↑ Standard-Speaker, Hazleton, PA, Sat., June 2, 1962.
  29. ↑ Standard-Speaker, Hazleton, PA, Sat., June 2, 1962.
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