Tower City National Bank, Tower City, PA (Charter 6117)

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The Tower City National Bank, ca1910.
The Tower City National Bank, ca1910.

Tower City National Bank, Tower City, PA (Chartered 1902 - Receivership 1934)

Town History

The old Tower City National Bank, ca2020.
The old Tower City National Bank, ca2020. Courtesy of Goggle Maps

Tower City is a borough in Schuylkill County, Pennsylvania. The population was 1,346 at the 2010 census. In 1900 the population was 2,167, peaking in 1930 at 2,482.

Tower City was founded by and named for Charlemagne Tower, a New York–born lawyer who had come to Schuylkill County, Pennsylvania in 1846 to work with the legal issues regarding land claims to large coal and mineral deposits in that area. His first Pennsylvania practice was located in Orwigsburg, and then relocated to Pottsville in 1850 when it was made the Schyulkill County seat.

Not long after Tower came to Pottsville, he began furiously purchasing and clearing liens to lands containing large anthracite deposits in and around Schuylkill County. This was part of an elaborate land grab scheme devised by Tower and his partner, Alfred Munson of Utica, NY.

By 1868, unable to find buyers for his massive land holdings, Tower decided instead to establish collieries on the land, and in March 1868 he leased 1,503 acres to two independent coal companies. It was a 15-year term, with a rental of $.30 for each ton of coal mined. The companies placed two collieries on the land, the Tower (Later known as East Brookside) and the Brookside. Near the collieries, Tower began to develop a small town, which was named Tower City when first surveyed. Tower laid out the town, and rented lots to settlers. The town was up and running by mid-1872, and immediately suffered a housing shortage. After these initial growing pains, the town grew steadily due to the collieries, and was officially incorporated on December 19, 1892 as a borough of Porter Township, Schuylkill County.

Tower City had two National Banks chartered during the Bank Note Era, and both of those banks issued National Bank Notes.

Bank History

The stockholders of the Tower City National Bank held a meeting in the I.O.O.F Hall on Wednesday, January 22, 1902 and perfected a permanent organization. Hon. A. Fortenbaugh of Halifax acted as chairman and C.M. Kaufman of Tower City acted as secretary of the meeting. The following directors were elected: Hon. A. Fortenbaugh, Halifax; Isaac Mossop, Wiconisco; F.H. Doudn, and J.I. Delaney, Lykens; C.M. Kaufman, G. Schoffstall and W.F. Knecht, Tower City; E. Evans, Muir; Geo. Evans, Orwin; W.O. Schwalm, Valley View. The directors elected C.M. Kaufman, president; G. Schoffstall, vice president; W.O. Schwalm, secretary. The position of cashier was unanimously tendered to Walter E. Kahler, the current teller of the First National Bank at Millersburg. The new bank was located in Dr. W.A. Hawk's new building adjoining the drug store. The bank would occupy the entire first floor of the building.

In January 1932, the following officers were elected: C.M. Kaufman, president; W.F. Knecht, vice president; A.A. Unger, secretary; A.D. Lewis, cashier; J.A. Miller, Assistant cashier; R.W. Schell, teller. The directors were A.A. Unger, Albert Stephens, I.A. Evans, B.W. Fees, W.F. Knecht, C.M. Kaufman, Harry A. Evans, George Dreibelbis, and J.B. Watkins.

On March 29, 1933, the Federal Reserve Bank of Philadelphia announced the appointment of conservators to five banks, three in Pennsylvania and two in New Jersey. The Pennsylvania banks were Hegins, First National Bank, Rufus Reed, conservator; Herndon, First National Bank, A.S. Hepner, conservator; and Tower City, Tower City National Bank, Arthur D. Lewis, conservator. On April 25, A.D. Lewis and several directors were at Philadelphia to present plans for reopening the bank to the Chief National Bank Examiner and the Federal Reserve Bank. Both of them approved the plan with slight modification and submitted the same to the Comptroller of the Currency. A decision was expected to take several days due to the pressure of business in Washington, DC.

Tower City's new bank, Tower City National Bank, opened Tuesday, February 27, 1934. It replaced the old institution which had been operating under restrictions since March 1933. A charter was received on Monday the 26th. The new bank had capitalization of $100,000, the majority of which was held by residents of Tower City and the surrounding community. Depositors of the old bank could withdraw 70% of their deposits, the remaining 30% was held for liquidation awaiting improved economic conditions. The officers were C.M. Kaufman, president, A.D. Lewis cashier; Joseph A. Miller, assistant cashier; Robert Shell, teller; and Miss Anna Mikowychok, clerk.

On Monday, April 30, 1934, Frank W. Boyer of Pillow was named receiver for the old Tower City National Bank and took charge of its liquidation.

On December 23, 1935, it was announced that over 2,000 depositors would receive $174,282.54 or 15% of the amount frozen when the bank closed in 1933. This would bring the total to 85% which had been paid to the depositors with 70% made available when the new bank opened in February 1934.

Claiming he needed the money for medical service, Robert Willis Schell, 35, pleaded guilty in U.S. District Court to embezzling $2,000 from the Tower City National Bank where he was employed for 18 years. Schell, father of three children said he required the funds for an ailment which he contracted in the World War. Sentence was deferred by Judge George A. Welsh pending an investigation of Schell's home conditions.

Official Bank Title(s)

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

Bank Note Types Issued

1902 Date Back $10 bank note with pen signatures of W.E. Kahler, Cashier and C.M. Kaufman, President. The Tower City National Bank received the H/K block changeover for Series of 1902 Date Back 10-10-10-20 sheets. Neither the H1000000 nor the K1 notes are currently recorded in the National Bank Note Census.
1902 Date Back $10 bank note with pen signatures of W.E. Kahler, Cashier and C.M. Kaufman, President. The Tower City National Bank received the H/K block changeover for Series of 1902 Date Back 10-10-10-20 sheets. Neither the H1000000 nor the K1 notes are currently recorded in the National Bank Note Census.
1929 Type 1 $10 bank note with printed signatures of A.D. Lewis, Cashier and C.M. Kaufman, President.
1929 Type 1 $10 bank note with printed signatures of A.D. Lewis, Cashier and C.M. Kaufman, President. Courtesy of Heritage Auctions, www.ha.com

A total of $819,490 in National Bank Notes was issued by this bank between 1902 and 1934. This consisted of a total of 66,268 notes (53,220 large size and 13,048 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 - 1900
1902 Date Back 3x10-20 1 - 2260 SN 84/85 H1000000/K1
1902 Plain Back 3x10-20 2261 - 5709 Plate dated 1902
1902 Plain Back 3x10-20 1 - 5696 Plate dated 1922
1929 Type 1 6x10 1 - 1592
1929 Type 1 6x20 1 - 364
1929 Type 2 10 1 - 1120
1929 Type 2 20 1 - 192

Bank Presidents and Cashiers

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

  • Tower City, PA, Wikipedia, https://en.wikipedia.org/wiki/Tower_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 Standard, Lykens, PA, Fri., Jan. 31, 1902.
  • The Evening News, Harrisburg, PA, Wed., Mar. 29, 1933.
  • West Schuylkill Herald, Tower City, PA, Fri., Apr. 28, 1933.
  • Elizabethville Echo, Elizabethville, PA, Thu., Mar. 1, 1934.
  • West Schulykill Herald, Tower City, PA, Fri., Mar. 2, 1934.
  • The Daily Item, Sunbury, PA, Mon., Apr. 30, 1934.
  • Pottsville Republican, Pottsville, PA, Mon., Dec. 23, 1935.
  • The Philadelphia Inquirer, Philadelphia, PA, Thu., Dec. 17, 1936.