Jefferson County National Bank (Brookville, PA)

View Charter #2392 on SPMC View balance sheet

Episode Information

Episode UID
239201599
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
23920 national
Charter Number
2392
Start Date
March 4, 1933
Location
Brookville, Pennsylvania (41.161, -79.083)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7e6cf56df4f5085d

Response Measures

None

Receivership Details

Depositor recovery rate
61.0%
Date receivership started
1933-11-09
Share of assets assessed as good
21.1%
Share of assets assessed as doubtful
50.2%
Share of assets assessed as worthless
28.6%

Description

The March 1933 bank holiday (state/federal moratorium) applied; bank later declared insolvent and placed in receivership Nov 1933.

Events (4)
1. August 15, 1878 Chartered
Source
historical_nic
2. March 4, 1933 Suspension
Cause
Government Action
Cause Details
State-wide bank holiday / moratorium declared by Pennsylvania governor as part of nationwide banking holiday in March 1933.
Newspaper Excerpt
Gov. Pinchot of Pennsylvania... I hereby declare a bank holiday throughout Pennsylvania on Saturday, March 4, 1933, and Monday, March 6, 1933.
Source
newspapers
3. November 9, 1933 Receivership
Source
historical_nic
4. November 9, 1933 Receivership
Newspaper Excerpt
The Jefferson County National Bank of Brookville, Pa., ... has been declared insolvent and receivers appointed.
Source
newspapers

Newspaper Articles (18)
1. March 4, 1933 Evening Star Washington, DC
Article from Evening Star, March 4, 1933

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Article Text

EARLY U. S. ACTION PLANNED ON BANKS New York and Illinois Declare Holidays—Only Four States Unrestricted. Connecticut took similar action, bringing to 43 the list of States in which restrictions on withdrawals are operative in some form or another. Only Montana, Colorado, North Dakota and South Carolina remained without restrictions at noon today. Delaware's banks were open, but the State Legislature has already taken emergency action. These developments had brought from Representative Rainey, the next Speaker of the House, the prediction that "an extra session of Congress will be called at the earliest possible time." He said he felt that early next week, possibly Tuesday, would not be too soon. Previously Rainey had told House members-elect to remain in Washington. Others at the Capitol said the session probably would begin Wednesday. The Federal Reserve Bank of New York was closed with all other banking institutions of that State. The Federal Reserve Bank at Philadelphia also closed, under a holiday declared throughout Pennsylvania by Gov. Pinchot. Later in the day the Minneapolis Federal Reserve Bank suspended business. The closing of the New York Federal Reserve Bank meant the tying up of its huge gold reserve for the period of the holiday against withdrawal by either domestic or foreign agencies. In discussing the banking relief program, Senator Robinson said: "We do not know just when it will be completed, but it will be expedited all possible. The details can not be announced right now but you may be assured there will be no delay." Wagner Plans Action. Previously Senator Wagner, Democrat, of New York, had told newspaper men he would carry immediately to Democratic leaders an appeal for immediate emergency banking moves. Informed at his hotel here of banking moratoria in New York and Illinois, Wagner said he would appeal this morning to Democratic leaders to begin working out a program and some time this afternoon would call on Mr. Roosevelt with the same objective. A bank holiday, he said, "is the only thing to do" to meet the emergency of the banks themselves, but he added quick steps are necessary to enable them to reopen and continue operations. Harvey Couch, Democratic member of the Reconstruction Finance Corporation, was the first White House caller this morning. He said after a brief conference with President Hoover he had discussed "matters incident to the banking situation," but declined to give details. Couch conferred last night with President-elect Roosevelt. Officials in Conferences. High officials both of the outgoing Republican and incoming Democratic administrations were in conference most of the night. Secretary of the Treasury Mills said afterward the Hoover administration would have no statement, but that governors of the Federal Reserve banks in Chicago and New York would have announcements. Demands Impossible. The hours between midnight and dawn saw banking officials in many States struggling with the problem, made acute by the flurrying of nervousness on the part of depositors. As a statement by the New York Clearing House Committee put it: "The unthinking attempt of the public to convert over $40,000,000,000 of deposits into currency at one time is, on its face, impossible." The statement added that the condition clearing house banks is such that "they could, through the facilities of the Federal Reserve Bank, pay on demand every dollar of their deposits," but that withdrawals throughout the country as a whole have increased so that a "halt" is necessary "to enable the proper authorities to consider and adopt remedies to meet this situation, not for New York primarily, but for the Nation as a whole." Only a few States remained today in which restrictions on withdrawals had not been invoked. No Holiday in Virginia. In Virginia, Gov. Pollard said no general banking holidays would be declared because the State's laws already protect the banks and their depositors. In Maryland, the General Assembly early today approved the emergency banking legislation without a dissenting vote in either House. Gov. Ritchie signed it this morning, but said that the banking institutions of the State will not reopen Monday. The resources of the Reconstruction Finance Corporation earlier had been made available to hard-pressed, but solvent banks in States that have imposed moratoria on withdrawals. This was one of a number of developments yesterday that included introduction of legislation to allow postal savings checking accounts and to confer upon the incoming administration sweeping authority to maintain the security of deposits. Reconstruction Corporation officials said their policy called for lending institutions—if the loans were well secured—enough money to pay the percentage of deposits that could be withdrawn, provided the banks did not have the funds immediately available. It was emphasized this was not a new departure, but was simply the application of regulations decided upon for individual instances in the past to a situation spread into a number of States. Pinchot's Statement. Gov. Pinchot of Pennsylvania here for the inauguration issued the following statement: "Because of the declaration of a bank holiday in New York, Illinois and most of the other States, similar action in Pennsylvania has become unavoidable. "Were our banks to remain open, the demands upon them would impose an impossible burden. "Therefore, upon specific recommendation of Gov. Norris of the Philadelphia Federal Reserve Bank, I hereby declare a bank holiday throughout Pennsylvania on Saturday, March 4, 1933, and Monday, March 6, 1933." Exchange Statement. A statement issued by the Governing Committee of the New York Stock Exchange said: "The Governing Committee at a meeting held this morning in order to give full effect to the banking holiday declared by the Governor of the State of New York directed: "First, that the exchange be closed during such holiday; "Second, that members and firms registered on the exchange be prohibited from making any contracts for the purchase or sale or the borrowing or lending of any securities, and also from permitting their offices or facilities to be used for the purpose of making or carrying out any such contracts; "Third, that all deliveries be suspended on all member contracts, except on such contracts as may be cleared by or settled through the Stock Clearing Corporation, and that in such cases deliveries shall be made as the Stock Clearing Corporation shall direct."

2. March 4, 1933 The Daily Courier Connellsville, PA

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GOVERNOR ORDERS TWO-DAY HOLIDAY FOR STATE BANKS By International Nows Service. PHILADELPHIA, March 4.-Governor Gifford Pinchot. from his temporary residence at Washington, D. C., today proclaimed mandatory twoday hollday for all Pennsylvania banks. The proclamation issued at 8:30 this morning through Dr. William D. Gordon, State Secretary of Banking, directs all banks in the Commonwealth to remain closed Saturday and Monday. George W. Norris, governor of the Federal Reserve Bank in Philadelphia at whose behest leading Philadelphia financiers assembled in the early Lours the morning to consider decisive action, said the step was made necessary by the growing list state bank holidays. Although it was believed Penneylvania banks could have remained open under the emergency legislation passed by the Legislature last Monday, of holidays by the governors of New York and Illinois and several other states early today precipitated the crisis, Norris explained. "Because of the declaration of bank holiday in New York, Illinois and other states similar action in Pennsylvania has become unavoidable," the Governor declared in his "Were our banks to remain open the demands on them would impose an impossible burden." "Therefore, on the specific recommendation of Governor George W. Norris of the Philadelphia Reserve Bank, hereby declare bank hollday throughout for Saturday, March 5, and Monday, March 6," the proclamation concluded.

3. March 9, 1933 The Jeffersonian-Democrat Brookville, PA

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BROOKVILLE BANKS WILL BUSINESS USUAL FRIDAY MORNING Nation's Banks on Holiday Following President Roosevelt's Proclamation to Protect Country's Gold; Definite Instructions for Local Restrictions Not Yet Received Brookville banks, closed from Monday to Thursday in accordance with President Roosevelt's proclamation declarnational holiday on banking, will be open (Friday) for business as usual, barring Washington to the contrary. While all banks are empowered to limit they see fit, mandatory instructions to that effect have not yet been received here and local bankers say is quite probable that the decision in the matter will be left to judgment.

4. November 14, 1933 Evening Star Washington, DC
Article from Evening Star, November 14, 1933

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Article Text

$16,084,000 RESTORED IN BANK REOPENING Thirteen National Institutions Red ported Again in Operation This Month. By the Associated Press. The opening of 13 national banks during the first 10 days of November was announced by J. F. T. O'Connor yesterday to have restored $16,084,000 in deposits. During the same period, six national banks had their reorganization plans approved by the Treasury, involving $2,825,000 in deposits. The controller reported that two banks with approved reorganization plans have been declared insolvent and receivers appointed. These were the Jefferson County National Bank of Brookville, Pa., with $1,507,000 of deposits, and the Central City National Bank of Central City, Nebr., with $98,000 in deposits.

5. November 17, 1933 The Indiana Gazette Indiana, PA

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BROOKVILLE BANK RECEIVER'S HANDS Nov. The Jefferson County National Bank Brookville is now in the hands receiver, who assumed his duties here Friday last week. E. Howard, Oklahoma, the receiver. D. Driscoll, of St. Marys, attorney for the receiver Reports from the comptroller of the currency Washington say that the bank, which had reorganization plans approved some time ago, has been declared insolvent. Deposits are given at $1,507,000. The bank is now closed for ex. amination. Officials of the Brookville Title Trust Company yesterday nounced that plans submitted for the reopening of that institution have been approved by the Secretary of Banking Details of the plan will be made public later, it was said.

6. February 15, 1934 The Brookville American Brookville, PA

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Bank Receiver Returns Mr. H. Howard, Receiver of the Jefferson County National Bank this city, left several days on business trip Oklahoma expected to far could be has done about payment to in eiththe old or new accounts.

7. March 1, 1934 The Jeffersonian-Democrat Brookville, PA

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SINKING COMMISSION RESTRAINED BONDS BY AN INJUNCTION Affidavit Worth of Bonds Declares Defaulted and Others Paid; Contest Over Proper Custodian Withholds Funds from Commission By an injunction granted by Judge William Darr on Tuesday the Jefferson County Sinking Fund Commission restrained from paying out any county funds to retire bonds. The injunction was granted on an affidavit by Samuel G. Rosengarten, of Philadelphia, represented by Alex Scribner, of Brookville, as attorney. Rosengarten holds $24,000 of Jefferson county court house bonds, the affidavit alleges, which due March but which were never paid. Suit in assumpsit is being brought to compel the payment these bonds. alleged that bonds falling due after March 1933, paid by the sinking fund commission, although the payment the ignored. Payment of $50,000 worth bonds plus interest are payable today, March but the injunction has stopped payment. Hearing on the injunction has been for March According to members of the sinking fund commission. the mission had on deposit prior March 1933, sufficient funds the principal banks of the county pay the bonds coming due March The was called and placed the Jefferson County National Bank, the mission taking from the bank collateral assignment of note Eldred township $40,000. The in bonds were not presented for payment March according to the commission. until after all banks in the had been closed by order of President Roosevelt. When the bonds were presented the bank closed, the funds have been restricted since, and the defaulted payment the $24.Bonds due September 1933, pointed by members of the sinking fund commission that the commission had the sinking fund moneys now in the hands of R. Reitz, retired county treasurer, amounting to proximately $63,000, the commission could pay defaulted bonds and apply balance, together with funds now under control of the commission, to the of bonds due March 1934 One member of the commission of the opinion that the money in the retired treasurer's hands available that the commission could take care of not only faulted bonds but those due March $50,000, well interest. Mr. Reitz has appealed from Judge Rimer's decision which Rimer held that sinking fund commission and not the treasurer the proper custodof sinking fund moneys. The commission composed the three county commissioners, three county auditors and the treasurer. The bonds question are of part the issue of court house bonds dated March

8. March 1, 1934 The Jeffersonian-Democrat Brookville, PA

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Bank Will Old Verify Accounts Pass Books Should Presented at County National Next Week Work of verifying all old accounts in the Jefferson County National Bank, deposits made prior to March 1933, will begin Monday of next week, according to statement issued by Howard, the bank's receiver. Mr. Howard said: parties who have deposits in the Jefferson County National Bank which were vious March 1933, including Savings Deposits, Checking Accounts and Christmas Savings Accounts, requested to bring their pass books to the bank beginning Monday, March 1934, for the purpose of verification and reconcilement. the books have been verified and reconciled each depositor will be given chance to examine account before proof of claim is made. This one of the necessteps that the receiver must take before arrangements can be completed for issuing receiver's certificates and later paying dividends deposits to those to whom the bank is indebted as depositors.' Last week were notified of per cent sessment levied against them, amounting to To date 25 per cent distribution has been made on special accounts and the call for verification of old accounts will speed up the work towards distribution on them.

9. March 1, 1934 The Brookville American Brookville, PA

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COUNTY SUED FOR DEFAULT IN H. BONDS Restrained From PayUntil Bonds ing Retired BADLY INVOLVED CASE Upon application by Joseph Rosengarten, Jr., of Philadelphia, through his attorney Alex S. Scribner, of this place, Judge Wm. T. Darr filed preliminary injunction order restraining County Sinking Fund Commission from liquidating and further issues of the Court House bonds until they have retired the $24,000 block due and payable on March 1, 1933, year ago. suit equity has been filed by Mr Rosengarten Jr the payment the $24,000 that fell due and which is chiefly by him The preliminary injunction but the first in action, by local familiar with the cirCourt House bonds maturing today, Thursday March 1934 in the amount of $50,000 will have be permitted to default until something done the $24,000 bonds due and payable year The bonds in question might have been paid the time they due closing of local pository where the money had been segregated for the purpose It might also have been paid over to the holders of the bonds more recently except for the test case brought by former County Treasurer. Richard E. Reitz, through his attorney, Conrad, to keep the sinking in his own possession as County Treasurer. rather than permit to Treasthe Sinking Fund Commission, County McQuown Several days before the 1st day of March the Fund Commission upon the several depositories in the county the to tire the on 1st of that month turned to the Commission accordance with and in the Jefferson County National Bank to be paid. Payment not after late and closed March In the meantime the Jefferson County National Bank assigned 000 note given the bank by Eldred Township security deposit until was withdrawn. The Sinking Fund Commission has the will likely collect in due time to adjust matter brought up by Mr Rosengarten Though county defaulted on the bonds due payable they with funds in the appear to be bethe county to correct The ought not to be impaired by the order the President of the United States, in view the the money was quately Subsequent affairs at the bank tended to complicate rather clarify the situation said More than the credit ought to be injured by an officer tieing up sinking fund and to pay from fund until some litigation finished meantime the interest on defaulted bonds will be paid During time $1400 in interaccumulated than that in the suspension payment the $50,000 due payable today continued length time the interest bill county And the there the Mr. which might plied and big interest bill saved the Tuesday's order of the court is turnable for argument hearing Saturday, March o'clock Judge Bond understood to have been fixed at $500 but had not been filed at hour County Solicitor Lavelle Wilson will argue the County Sinking Fund Commission's case before the court.

10. March 1, 1934 The Brookville American Brookville, PA

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BANK RECEIVER CALLS FOR OLD ACCOUNT BOOKS Second Payment On Conservator Account Soon LIQUIDATION SLOW Receiver B. Howard of the JefferCounty National Bank, announced this week that verification of Pass Books containing the accounts' in bank about to commence. These individual bank books should be taken bank Monday or soon thereafter that immediate reconciliation can made the payof money these to March 1933 just as soon as condiwarrant Mr Howard also stated that ananother on the Conservato account would be made early the for the books old accounts. he said have in the County National which were deposited previous March 1933. including Deposits Checking Accounts and Christmas Savings Accounts are requested bring their Pass Books to the beginning Monday March 1934 the purverification and reconcilement "After the books have been verified and reconciled each depositor will be given chance to examine his account before Proof Claim made This one the necessary steps that the Receiver must take before arrangements completed for issuing Receiver's Certificates later paying dividends deposits to to whom the bank indebted Steps in the liquidation of the Bank appear be progressing with pleasThe appears to be eager all the details that will definite their and that other equally may tended to the earliest possible moDepositors should realize that involved is necessary terminate

11. March 2, 1934 The Punxsutawney Spirit Punxsutawney, PA

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DEPOSIT Receiver Howard Announces Additional Payment On New Deposits Coming. BROOKVILLE, March Receiver B. the County National Bank, has ferson issued call for pass books of deposits in the depositors closed bank made prior March 1933, including savings deposits, checking accounts and Christmas accounts. The the call to veripurpose and deposits. After this has been done depositor given chance to examine his before proof of claim made. This the necessary the must take before steps can made issue receiver certificates and later ing on deposits to those to whom the bank is indebted positors. Col. Howard stated yesterday that he expected another dividend payment counts deposited after March 1983, the first dividend 25 percent these funds having been made last month. Personal creditors of Shanof the bank, non, former president have made application for trustee in bankruptcy.

12. March 12, 1934 Pittsburgh Sun-Telegraph Pittsburgh, PA

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HERE LAUNCH PROBE Former President Ill; Government Audit Completed Investigation of shortage ranging between $150,000 $200.000 in the closed Jefferson County National Bank of Brookville. Pa., today was in the hands of the United States Attorney here, while Leonard B. Shannon. former president and conservator. was in Philadelphia hospital suffering from nervous breakdown. Federal attorneys here refused to discuss the case other than to say an investigation was under Assistant United States Attorney James Marsh said he would be unable to say whether there were irregularities in the bank's affairs until investigators had made reportt. REPORT OF AUDIT Shannon was Democratic candidate for State Treasurer in the 1932 elections, polling more than 1,000,000 votes against the Republican winner. Charles A. Waters. He also had extensive business connections in Jefferson County. The report of an audit of his bank's books while he was conservator-from March until November. 1933-is now in the office of Comptroller of the Currency T. O'Connor. SHORTAGE BARED That report, it is understood. bares the shortage, indicates violations of national banking laws. shows that possibly half of in trust deposits, accepted after the bank's operations were restricted, are almost hopelessly tied up. Some of the shortage is in trust made after the bank holiday. When the bank moratorium suspended the nation's banking operations last March, the Jefferson County National Bank had deposits of about $1,486,000, capital and surplus of $213,000. Quick reorganization and early reopening was expected when the bank restricted operations at the end of the moratorium. NAMED CONSERVATOR Shannon, president and a director of the bank. was named its conservator and was bonded for $50,000. By November, however, it had become apparent that no quick dividend was to be paid depositors and that the bank was even unable to pay the segregated trust deposits received since March. Shannon went to the Miseracordia Hospital in Philadelphia with nervous breakdown. E. B. Howard, of Tulsa, Okla., became receiver. The bank closed, O'Connor sent Leon Gell to commence an audit on November 10. His report is now in O'Connor's office. It soon became apparent the books of the institution "were so involved was impossible properly to audit them. Meanwhile, however, it became possible to pay 25 per cent of the money in the 800 segregated trust deposits. Nothing has yet been paid on deposits made before the bank moratorium. NEW DIVIDEND SOON Another dividend of about 25 per cent is expected the trust deposits soon. Stockholders, subject to double liability laws, were called on to pay 100 per cent of their holdings early this month. Receiver Howard, questioned by the Sun-Telegraph on the shortage, declared: can only say that there is shortage. You'll have to go to the Comptroller of the Currency for further information." Until the crash of the Brookville bank and the restricting of the First National Bank of Sykesville, Shannon was leading citizen of Jefferson County Two weeks ago, Attorney W. N Conrad. claiming represent about half of Shannon's creditors. filed an involuntary bankruptcy action against the banker.

13. May 10, 1934 The Jeffersonian-Democrat Brookville, PA

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Investigation National Department of tice Man Here; New Audit Is Also Being Made An investigation of the affairs of Jefferson County National Bank, prior to its closing last vember, is being made an agent of the United States Department Justice, Howard, bank ceiver said yesterday. This the second the partment of Justice man has made within the past two months. Results of his investigation have yet not been disclosed and is expected that some time will elapse before completed. New Audit Underway new audit is also being made the bank, preliminary step which may lead to reorganization. Local persons have guaranhalf expense of the audit and should the results such step reorganization be attempted. Slow in Making Claims again urges that all depositors having "old accounts" (deposits made before the banking holiday March, to the bank and make proof of claim. Although the first call for proof claim on old accounts was sued weeks ago, depositors have been slow responding than 50 per cent those having old accounts have presented their claims, the receiver said.

14. May 17, 1934 The Jeffersonian-Democrat Brookville, PA

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Receiver For National Archie J. McMurray Named to Succeed E. B. Howard; Is Now In Charge Archie J. McMurray, of Brookville, last Friday was appointed receiver of the Jefferson oCunty National Bank by the comptroller of the currency Washington, vice E. Howard resigned. Mr. McMurray assumed his duties Monday morning. Mr. McMurray has been prominent in Democratic politics in this county for years, serving several terms as county chairman. He was not candidate for re-election this year. Mr. Howard. who has been the bank's receiver since last November, accompanied by Mrs. Howard. left Monday for his home in Tulsa, Okla. Mr. Howard resigned his position as receiver for the purpose of entering the race in Oklahoma for the position of congressman from that state, he having represented the First Oklahoma District in Congress for several terms. On leaving Mr. Howard asked the Jeffersonian Democrat to express all the people of Brookville and vicinity his sincere appreciation for the cooperation, without exception, given him in his work while here and, in parting, said: "Never did live in community were on direct relief, they shall be with finer We enjoyed ineligible for food relief. every moment of our stay, and However, if the work division have made friendships that, we check is less than the amount of hope, will last always. You have the food Relief Board order, the great people, great little city, will supplement to the amount of fine country. and our stay in the food order. For example, if your midst will be green spot in is food order of family receiving a our memory. In this Mrs. Howard week and member of the per joins me in re-echoing every family is assigned to work diviword.' Continued on Page 6)

15. June 3, 1934 Pittsburgh Sun-Telegraph Pittsburgh, PA

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BY PROPOSED UNDER ARREST CHEATING Charged With Misuse of $50,000; Once Candidate. Leonard B Shannon, former president the Jefferson County National Bank of Brookville, was arrested yesterday on federal warrant. He charged with misapplication of $52,534.88 of funds and credits the bank. The complaint was filed before the United in Pittsburgh by Risler. special agent of the Division of Justice. Shannon was Democratic candidate for State Treasurer in the 1932 elections. He polled more than 1.000.000 against the Republican winner. Waters. He was held under $25, 000 bond Last March. during a lengthy investigation affairs of the bank, Shannon suffered nervous breakdown was in Philadelphia hospital. The investigation was said to disclosed far greater than alleged in the complaint. One count the complaint of of funds of the bank between 1931, and November 1933, and another misapplication on September 27, 1933. The bank closed November When the bank moratorium suspended the nation's banking operations in March, 1933. the Jefferson County National Bank had had deposits of about capital, and surplus of Quick reorganization and early reopening was expected when the bank operations at the end of the moratorium president and di rector of bank, named and was bonded for By November it became apparent that no quick dividend was be paid and that the bank was even unable to pay the segregated trust deposits since March. B. Howard, of Tulsa, Okla. became receiver and Shannon went the Miseracordia Hospital in Philadelphia with nervous breakdown Shannon, in addition to his banking affairs, held large interests in gas and oil and farm real He about 50 years old and father of 13 children. Pittsburgher Originator of System That Would Save 1100 Per Cent in Costs. In most states persons away from home on election day cast their by mail. How the entire voting may vote by from the of the home, described beginning in the Telegraph tomorrow. The creator the system Ingram He has sent it on to President Roosevelt, Henry Ford and others for study and action. Telling of his plan. Ingram said "The idea of standing in line for hours, to have your by miscounts or appeal peo. ple. That's than 30 per cent the people vote. "Under system cost of voting would be about 25 cents ballot, compared with S3 or more under present methods, and The secrecy and sanctity of the ballot could be protected cannot be today." The first story. in tomorrow's Sun Telegraph. starts delivof the ballot at the home by mail carrier. The series cludes Illustrations which their story, how the proposed As this may be the next step toward reforms, follow the series and judge for yourself.

16. June 5, 1934 The Kane Republican Kane, PA

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BANKER CHARGED WITH OF OVER $52,000 BROOKVILLE, June 5. Leonard P. Shannon, former president and conservator of the Jefferson County National bank, and well known citi zen of Brookville, was placed under arrest Saturday, charged with misapplication of $52,534.89 of funds and credits of the bank. The complaint was filed before the United States Commissioner in Pitts. burgh by C. F. Risler, special agent of the division of investigation, Department of Justice. Mr. Shannon was the Democratic candidate for state treasuren in the 1932 election. On the charge filed against him in Pittsburgh Saturday Mr. Shannon was held under $25,000 ball. Last March, during a lengthy government investigation of affairs of the bank, Shannan suffered a nervous break down and was in a Philadelphia hospital. The investigation was said to have disclosed a far greater shortage than alleged in the complaint. One count of the complaint avers misapplication of $50,734.88 of funds of the bank between January 4, 1931, and November 9, 1933, and another misapplication of $1,800 on September 27, 1933. The bank was closed November 9. When the bank moratorium suspended the nation's banking operations in March 1933, the Jefferson County National bank had had deposits of about $1,486,000 capital, and surplus of $213,000. Quick reorganization and early reopening was expected when the bank restricted operations at the end of the moratorium. Shannon, president and a director of the bank, was named conservator and was bonded for $50,000. By November it became apparent that no quick dividend was to be paid depositors and that the bank was unable to pay the segregated trusts deposits received since March. E. B. Howard, of Tulsa, Okla., became receiver and Shannon went to the Miseracordia hospital in Philadelphia with a nervous breakdown. Shannon, in addition to his banking affairs, held large interests in gas and oil properties and was interested in farm real estate. He is about 50 years old and father of 13 children.

17. June 8, 1934 The Brockway Record Brockway, PA

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SHANNON ARRESTED Leonard Shannon, former presid and conservator of the Jefferson National Bank, well County known citizen of Brookville, under arrest Saturday, chargwith misapplication of of funds and credits of the bank. The complaint filed before the United States Commissioner in Pitts burgh Risler. special agent the division investigation. De partment of Justice. Mr. Shannon the Democratic candidate to state treasurer the election. On the charge filed against him in Pittsburgh Saturday Mr. Shannon was held $25,000 bail. Last March. during lengthy ernment investigation of affairs of the bank. Shannon suffered nervous breakdown and Philadelphia hospital. The investigation was said have far greater short than alleged the complaint One count complaint misapplication of of funds of the bank January 1933. and another misap plication September 1933. The bank closed November When the bank moratorium suspendthe nation's banking operations in March 1933. the Jefferson County Na tional Bank had had deposits of about capital, and surplus of Quick and early reopening expected when the bank operations the end of the Shannon, president and director bank. named conservator and bonded for By November became apparent no quick dividend was be paid depositors and that the bank to pay the segregated trust posits since March became ceiver, Shannon went Mis eracordia Hospital in nervous break down Shannon addition to his banking affairs, held interests and properties and interested farm real estate. about years and father of children.

18. August 2, 1934 Brookville Republican Brookville, PA

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Archie McMurray Resigns Job As Bank Receiver Local Man Tendered Resignation July V. Snader, Connellsville, Is Appointed on Job. NO REASON Archie McMurray yesterday nounced his resignation as reeciver of the closed Jefferson County National Bank here, and the acting of Carroll Snader. has been receiver of the closed institution since the of B. Howard, original appointee to that position, May 12th. He stated his resignation was submitted July 24th, effective July 31st. Mr. Snader has been here in the capacity of accountant at the bank the receivership took place. He from Connellsville. He has made distinctly favorable impression on all with whom he has had dealings and has had wide experience in banking affairs. Affairs at the bank have been movong along rapidly as can be expect under present and general as evidenced by the statement of condition posted the bank windows, but have they not yet reached stage where definite any statement can made to dividends as to