Coal town bank tells story of Centralia,Pa.

By Richard McDonnell

After becoming interested in genealogy several years ago, I found a way to merge my interest in collecting paper currency with researching my family roots. In particular, my interest was piqued after discovering that my great-grandfather, Michael J. McDonnell, was associated with the First National Bank of Centralia, Pa., for 39 years. Michael was the bank’s vice president from 1909 to 1927 and its president from 1927 until his death on Dec. 27, 1948.

A first generation Irish-American, he was the son of John and Mary (Leahy) McDonnell. John immigrated from Tipperary, Ireland, and arrived in the Port of New York on April 1, 1854. He resided for a short time in Schuylkill County before establishing roots in a small town in Columbia County now known as Centralia, Pa. John purchased a large house along Locust and Railroad Streets on Sept. 5, 1862, established a well-respected hotel and restaurant, and raised four children: Catherine, John, Michael and Joseph.

Michael, also known as “Big Mike,” was born in Centralia on June 21, 1867. He began his working years as a landlord and wholesale liquor distributor. After his father and elder brother died, he also became the proprietor of the family hotel and restaurant in 1916. Michael was very civic-minded and was active in the Centralia Fire Department. Centralia Fire Company No. 1 was organized on May 6, 1893, and dues were a whopping 15 cents a month. The company was granted a charter by the Columbia County Court in Bloomsburg on Aug. 16, 1893. Michael was a member for many years and, most noteworthy, he intermittently served as fire chief and company president for many years. During 1922 the fire company nearly disbanded due to a lack of interest, lack of subsidies and poor equipment, but on Nov. 16, 1922, the fire company was reorganized. An active but small fire department remains today.

By most definitions, the current state of Centralia would be considered a ghost town; however, this town has a vibrant and industrial past. The land was originally surveyed and subsequently purchased by the Locust Mountain Coal and Iron Company. In 1855 Alexander W. Rea, the first engineer and agent of the Locust Mountain Coal and Iron Company, surveyed the town into streets and lots. This was practically the begining of the town which was called Centreville at the time. The name Centralia was suggested by Rea because another Pennsylvania town named Centreville already existed. This suggestion combined with a strong insistence by the postal authorities to change names in order not to confuse mail deliveries was accepted, and in 1866 the Borough of Centralia was incorporated.

With the incorporation of Centralia, the residents saw a need to develop and expand. Many of the residents sought loans to purchase homes through the financial institutions located in Centralia. Prior to the incorporation of the First National Bank of Centralia, the town hosted two other financial institutions: The Centralia Mutual Savings Fund Association, and The Citizens’ Building and Loan Association.

The Centralia Mutual Savings Fund Association was established on Feb. 2, 1866. Prominent members of the town were chosen to serve on the board of directors. One member was Rea. Rea was a friend of the McDonnell family and was known to be a staunch supporter of coal miners. He built his home in a section of Centralia that later became known as Rea’s Hill. Rea vouched for the credibility of Michael’s father and served as a witness as John McDonnell presented his petition for naturalization on May 2, 1859.

Sadly, Rea was murdered in 1868. Several years later the county charged three suspects with murder and their subsequent trial was reported as another Molly Maguire trial. The jury found all three guilty of murder and they were hanged in the jail yard in Bloomsburg, Pa., on March 25, 1878.

For several years the Centralia Mutual Savings Fund Association was successful and profitable. Subsequently, this financial institution fell on hard times and was closed during 1886.

Centralia’s other financial business, the Citizens’ Building and Loan Association, was established after the Mutual Savings Association. Both Centralia associations coexisted for several years. The Citizens’Building and Loan Association closed during the early 1900s.

The First National Bank of Centralia was organized on Sept. 9, 1909, and received charter number 9568 on Oct. 26, 1909. This bank opened for business on Dec. 1, 1909, with initial deposits of over $106,000. The bank was initially situated along the west side of Locust Avenue, which served as the main conduit through town. Today this road is also known as State Highway 61. After a major conflagration in 1912, the bank was destroyed; however, the cash and records were protected by the bank’s vault. The bank moved across the street and reopened for business the next day. This “new” building was originally constructed in 1866 and was purchased by the First National Bank for $6,000.

The Centralia bank remained solvent throughout the next 44 years. The following excerpt from a 1933 advertisement expresses the strength of this hometown bank during one of America’s most troubled times: “When President Roosevelt proclaimed the national bank holiday, he assured the people of these United States, that only sound banks would be permitted to reopen. The Government’s stamp of approval has given OUR depositors the additional satisfaction of knowing their confidence was not misplaced.”

Michael J. McDonnell resided in close proximity to the national bank and would walk to and from his office. As a businessman, he was always seen around town “looking dapper.” My late paternal grandmother once explained that Michael had a reputation for being “tight with a buck” but he was a kind man who commanded respect. An astute businessman, “Big Mike” was known to have the local newspaper’s business section consistently placed under his arm. Evidence of this was captured in an August 1928 Centralia Fire Company photograph.

A consummate businessman throughout his working years, Michael also ventured into an agreement with Atlantic Refining Company on July 22, 1932. Still serving as bank president, his initial three-year contract called for the selling of petroleum products along the front of his residence/hotel. Additionally, he dedicated an 8 x 15-foot room from his hotel for office space to operate his new business. This partnership with Atlantic Refining Company entitled him to receive one cent for every gallon of White Flash gasoline sold.

On Dec. 27, 1948, at the age of 81, Michael’s role as bank president ended with his death. Appropriately, the Mount Carmel Item newspaper’s headline read “M.J. McDonnell, Centralia Bank President, Dies.”

Subsequently, the First National Bank of Centralia was merged into the Pennsylvania National Bank & Trust Company of Pottsville, charter No. 01663, on Dec. 15, 1955, and the deed was officially recorded Feb. 25, 1956.

Due to the relocation of most of this Centralia branch office’s patrons, the final day of business was Nov. 30, 1987. The building was razed shortly thereafter. The Pennsylvania National Bank & Trust Company later became known as Keystone Financial Bank, NA, and on Oct. 6, 2000, was merged into Manufacturers & Traders Trust Company, Harrisburg, which is a state-chartered bank.

The beginning of the end of Centralia commenced in 1962 after an underground vein of coal caught fire and has continued burning for the last 40 years. The federal government began acquiring homes during the early 1980s and only a few residents remain today. Centralia has received national attention and several books have been published describing the history of this modern-day ghost town.

Centralia reached a maximum of 2,761 residents. At one point in time, Centralia had 19 general stores, two jewelry stores, 26 saloons, two theaters, a dairy, an ice cream parlor, five hotels, seven churches, a bottling works factory and six major collieries in close proximity to the town. These collieries were the main employers for the majority of Centralia’s hard-working men and boys for generations.

In order to further my research, I would greatly appreciate any additional information or items from either the First National Bank of Centralia, Pa., the Centralia Mutual Savings Fund Association or the Citizens’ Building and Loan Association. I would gladly purchase related bank items or reimburse anyone in order to have copies produced from these financial institutions. Please click here to contact Rick McDonnell.

An astute businessman,“Big Mike” McDonnell was known to carry the local newspaper’s business section under his arm regularly, as captured in this August 1928 Centralia Fire Company photograph.

These checks are from the First National Bank of Centralia,Pa. At top,a personal check signed by Michael J.McDonnell dated May 9,1929; below it,another personal check payable to First National Bank dated April 26,1920.

This was the building used after a major fire destroyed the original in 1912. Markers identifying the bank were written on both windows. This bank was located along Locust Ave. also known as State Highway 61.

This large-size note from the First National Bank of Centralia was signed by James Jones,cashier,and Theodore W.Riley,president.

This Type-2 small-size note was signed by Michael J.McDonnell,president,and John Cramer,cashier.

This photo shows a collection of Centralia National Bank items: personal checks; a 1912 passbook, "The Travelling Teller", A promotional metal bank circa early 1900's; and two National Bank Notes.

This 1929 bank ad was published in the "IRIS", school yearbook of Conyngham Township High School.


Two years later, this bank ad appeared in the "IRIS".