Oil City National Bank, Oil City, PA (Charter 5240)

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Postcard of The Oil City National Bank, Oil City, Pennsylvania, ca1920s.
Postcard of The Oil City National Bank, Oil City, Pennsylvania, ca1920s. Courtesy of Adam Stroup

Oil City National Bank, Oil City, PA (Chartered 1899 - Liquidated 1934)

Town History

Bank building built in 1926 for the Oil City National Bank, Seneca and Center Streets, Oil City, Pennsylvania.
Bank building built in 1926 for the Oil City National Bank, Seneca and Center Streets, Oil City, Pennsylvania. Courtesy of Google Maps

Oil City is a city in Venango County, Pennsylvania known for its prominence in the initial exploration and development of the petroleum industry. It is located at a bend in the Allegheny River at the mouth of Oil Creek.

Initial settlement of Oil City was sporadic, and tied to the iron industry. After the first oil wells were drilled in 1861, it became central to the petroleum industry while hosting headquarters for the Pennzoil, Quaker State, and Wolf's Head motor oil companies.

In 1862, residents in the area obtained a charter from the state, uniting the area north of the river as a borough named Oil City. The city was partially destroyed by flood in 1865 and by both flood and fire in 1866 and again in 1892; on this last occasion, several oil tanks that were struck by lightning gave way, and Oil Creek carried a mass of burning oil into the city, where some 60 lives were lost and property valued at more than $1 million was destroyed. Oil City grew into a thriving community through the later half of the 19th century and into the 20th century. By the 1990s, Pennzoil, Quaker State, and Wolf's Head had all relocated their headquarters elsewhere. However, some oil wells continue to produce a steady supply of quality petroleum.

Tourism plays a prominent role in the region by promoting oil heritage sites, nature trails, and Victorian architecture. The population was 10,557 at the 2010 census. In 1900 the population was 13,264, peaking in 1930 at 22,075.

Oil City had four National Banks chartered during the Bank Note Era, and all four of those banks issued National Bank Notes.

Bank History

The Lamberton National and Oil City National consolidated forces in 1919. The Oil City National Bank opened for business on Monday, May 26, 1919 in what was formerly the Lamberton National Bank. On May 24, 1919, the Comptroller of the Currency authorized this merger. The newly merged bank operating under the name of The Oil City National Bank was now one of the biggest national banks in the region with resources in excess of $6,000,000. The personnel of the new bank were as follows: Robert G. Lamberton, president; H.G. Rush, Charles M. Lamberton, H.J. Crawford, vice presidents; W.S. McKay, cashier; E.S. Rugh, James A. Corrin, Lieutenant Willard Lamberton, assistant cashiers. R.G. Lamberton retired in 1919 and C.M. Lamberton was elected president. The Directors were C.M. Lamberton, H.G. Rush, H.J. Crawford, Geo. N. Read, W.O. Innis, E.W. Chase, E.A. Siederman, J.B. Crawford, W.O. Platt, H.H. James, Raymond Cross, S.Y. Ramage, Jas. A. Fawcett, S.N. Moyar, and S.H. Lamberton. The bank boasted of over $6 million in assits with $300,000 in capital and $300,000 in surplus.

Proof of the Oil City National Bank $50-$100 sheet that was approved January 19, 1900.
Proof of the Oil City National Bank $50-$100 sheet that was approved January 19, 1900. Courtesy of the Smithsonian Archives

The Citizens Bank closed its doors on noon, July 11, 1919, after a run brought about by the failure of the Baltimore Roofing and Asbestos Co. of Glyndon, Maryland in which the bank was heavily interested. As a result of the work of a committee of stockholders and under the leadership of Major J.M. Reed, Colonel E.V.D. Selden, J.W. Osenider and George A. Welker, cooperating with officers of the Oil City National Bank, the Citizens Banking Co. was able to open for business on December 15, 1919. Doubtful paper had been eliminated and its assets made 100 per cent good through the personal finances of C.M Lamberton. An entirely new board of directors, led by C.M Lamberton, president; H.G. Rush, vice president; H.J. Crawford, vice president, S.Y. Ramage, vice president; and E.S. Rugh, cashier were in place.

Oil City's prosperity was evident in 1926 by the large projects underway including the Erie-New York Central railroad and Oil City-Renovo highway construction, the United Natural Gas Co. building, new warehouses for the National Biscuit Co., and the Oil City National Bank at Seneca and Center Streets. E.F. Weary was the architect for the new bank building. The bank's officers were H.J. Crawford, president; H.G. Rush, vice president; S.Y. Ramage, vice president; E.C. McFate, cashier; J.S. Vaughan, assistant cashier; W.B. Lamberton, assistant cashier; L.M. Campbell, trust officer. Directors were H.J. Crawford, W.O. Innis, S.N. Moyar, S.H. Lamberton, Ed Siederman, H.G. Rush, S.Y. Ramage, James A. Fawcett, George N. Reed, W.O. Platt, J.B. Crawford, A.L. Confer, E.W. Chase, H.H. James, Raymond Cross, and E.C. McFate. The bank had resources of over $8 million and boasted 62 years of successful banking.

On Tuesday, March 14, 1933, The Oil City National Bank awaited the message would would allow it to continue business as before the state and federal bank holidays were declared. The Franklin Trust Co., the Lamberton National Bank and the Exchange Bank and Trust Co., constituting the entire banking system in Franklin, reopened on this day. The First National, the Oil City Trust Co., and the Citizens Banking Co. of Oil City were also fully reopened.

On March 18, a federal conservator, R.W. Dickson of Butler, was named and placed in charge. Dickson was a vice president of the Butler County National Bank and Trust Co. On March 30, the directors announced that every endeavor was made to ascertain why a license to open and what if anything those in authority would requires as a requisite of an unconditional opening of the bank was made to Cleveland and Washington to no avail. And, that the directors had learned that an examiner would arrive no later than April 3 to investigate the situation. With thanks to customers the following directors signed the message: H.J. Crawford, H.T. Parker, W.O. Innis, James D. Berry, E.V.D. Selden, James H. Chickering, E.W. Chase, J.A. Fawcett, S.N. Moyar, L.M. Campbell, E.A. Seiderman, H.H. James, and E.C. McFate.

On May 15, 1933, Miss Kate G. Taylor, 63, former teller of the Oil City National Bank pleaded guilty to the abstraction of $8,250 of the bank's funds. She was placed on probation for two years. Miss Taylor had lost more than $100,000 in the stock market. Her attorneys announced that she had made full restitution.

On June 20, the headline was "Stupid Secrecy and Delay." The bank had been closed since March 19 and no one knew the future. People who needed their money were justifiably angry.

On August 26, 1933, stockholders met to discuss one of three methods to reopen the institution. One was to open on a restricted basis by raising $600,000. A second was to open on an unrestricted basis by raising $950,000 to $1,000,000. The third was to merge with another banking institution. There were still 38 closed banks in Western Pennsylvania and across the nation it was reported that 20% of bank's assets were frozen in closed or restricted banks. The Oil City Derrick editorialized, "Here we have a large local bank kept closed by the government because it had been doing the very thing President Roosevelt is now urging--furthering the free flow of credit." On 16 December, stockholders authorized directors to negotiate the sale of the assets of the bank to the Oil City Trust Company. The Trust Company was willing to take over the closed bank's assets subject to approval by the Comptroller of the Currency. The vote was 2,526 shares in favor of this resolution with only 5 opposed. The bank for the past nine months had been in charge of conservator R.W. Dixon of Butler. Payment in full to depositors was expected. In February 1934, the directors had rejected the terms offered by the Oil City Trust Co. and reported to stockholders that reorganization was still possible, as was a new offer by the Trust Company. On February 17, stockholders decided to reorganize the bank. After stockholders and comptroller of the currency approvals, the reopening of a new bank with capital of $650,000 and $150,000 in surplus with a 80% temporary waiver of deposits was expected in July.

After a lengthy re-examination of the bank by federal regulators, the special stockholders committee under committee chairman Chess Lamberton, prepared the report to present to stockholders on April 30. Up to 70% of deposits held would be released upon reopening. The bank would be a new national bank with election of a new board of directors. Slow or doubtful accounts would be retained by the old bank and as liquidated paid to the waived deposits. The plan was unanimously approved on May 28.

Officers and directors for the new Oil City National Bank were: H.J. Crawford, president; W.R. Reitz, vice president; A.R. McGill, cashier; and L.M. Campbell, trust officer. The board of directors included Mr. Crawford, Mr. Reitz and the following: Hon. William M. Parker, James D. Berry, W.J. Brundred, Walter S. Borland, E.W Chase, H.C. Dorworth, L.R. Ensle, J.V. Frampton, J.F. Horner, James H. Chickering, J.D. Trax, Max Jacobs, and D.F. Manion.

After a thorough cleaning of the banking house, the Oil City National Bank reopened on Monday, October 1, 1934. Approximately $3,500,000 representing 70% of deposits, tied up since the bank closed over 16 months ago, were finally released. The remining 30% remained frozen in the hands of trustees L.M. Campbell, Colonel E.V.D. Selden, and W.R. Reitz. The Charter was 14274 and the new title of the bank dropped "The" from the old title to comply with statute.

Official Bank Title(s)

1: The Oil City National Bank, Oil City, PA

Bank Note Types Issued

1902 Plain Back $5 bank note with printed signatures of William S. McKay, Cashier and H.J. Crawford, President.
1902 Plain Back $5 bank note with printed signatures of William S. McKay, Cashier and H.J. Crawford, President. Courtesy of Lyn Knight Auction, www.lynknight.com
1929 Type 1 $10 bank note with printed signatures of J.L. Vaughan, Cashier and H.J. Crawford, President.
1929 Type 1 $10 bank note with printed signatures of J.L. Vaughan, Cashier and H.J. Crawford, President. Courtesy of Heritage Auctions, www.ha.com

A total of $3,739,250 in National Bank Notes was issued by this bank between 1899 and 1934. This consisted of a total of 443,601 notes (301,508 large size and 142,093 small size notes).

This bank issued the following Types and Denominations of bank notes:

Series/Type Sheet/Denoms Serial#s Sheet Comments
1882 Brown Back 50-100 1 - 640
1882 Date Back 3x10-20 1 - 2000
1882 Date Back 50-100 1 - 560
1882 Date Back 3x50-100 1 - 50
1882 Value Back 3x10-20 2001 - 5400
1902 Plain Back 4x5 1 - 42341
1902 Plain Back 3x10-20 1 - 26986
1929 Type 1 6x5 1 - 13172
1929 Type 1 6x10 1 - 6108
1929 Type 1 6x20 1 - 1494
1929 Type 2 5 1 - 9976
1929 Type 2 10 1 - 5963
1929 Type 2 20 1 - 1510

Bank Presidents and Cashiers

Bank Presidents and Cashiers during the National Bank Note Era (1899 - 1934):

Presidents:

Cashiers:

Other Bank Note Signers

  • There are currently no known Vice President or Assistant Cashier bank note signers for this bank.

Wiki Links

Sources

  • Oil City, PA, Wikipedia, https://en.wikipedia.org/wiki/Oil_City,_Pennsylvania
  • 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 News-Herald, Franklin, PA, Tue., May 27, 1919.
  • The News-Herald, Franklin, PA, Mon., Dec. 8, 1919.
  • The Oil City Derrick, Oil City, PA, Sat., Dec. 20, 1919.
  • The News-Herald, Franklin, PA, Tue., June 7, 1921.
  • The Kane Republican, Kane, PA, Fri., Oct. 8, 1926.
  • The News-Herald, Franklin, PA, Thu., Oct. 28, 1926.
  • The Oil City Derrick, Oil City, PA, Mon., Dec. 6, 1926.
  • The News-Herald, Franklin, PA, Tue., Mar., 14, 1933.
  • The News-Herald, Franklin, PA, Thu., Mar., 30, 1933.
  • Pittsburgh Sun-Telegraph, Pittsburgh, PA, Mon., May 15, 1933.
  • The Oil City Derrick, Oil City, PA, Tue., June 20, 1933
  • The News-Herald, Franklin, PA, Mon., Aug., 28, 1933.
  • The Oil City Derrick, Oil City, PA, Sat., Sep. 16, 1933.
  • The News-Herald, Franklin, PA, Mon., Dec., 18, 1933.
  • The Oil City Derrick, Oil City, PA, Mon., Feb. 12, 1934.
  • The Kane Republican, Kane, PA, Mon., Feb. 19, 1934.
  • The News-Herald, Franklin, PA, Mon., May 21, 1934.
  • The Kane Republican, Kane, PA, Mon., Oct. 1, 1934.
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