The New York herald., 1875-10-28
Secretary of State.
THE PENNSYLVANIA TREASURY.
EXPOSURE OF INTRICATE FRAUDULENT TRANS
AcT1oNs-A T1TUsvILLE BANKER IAIPLI-
GATED

EXPOSURE OF INTRICATE FRAUDULENT TRANS
AcTIoNs-A T1TUsyILLE BANKER n1PII-
GATED.
T1TUsvLLE, Pa, Oct. 27. 1875
Startling revelations concerning the fraudulent trans
actions OF the Pennsylvania Treasury ring will appear
to morrow in local journal The facts to be pub
lshed are these -
George K. Anderson is a member of the State Senate
and president of several banks in this town. 1t ap
pears according to these forthcoming statements that
Anderson undertook, few years ago, to negotiate
loans eret for the Titusve Savings Bank for the
Citizens Bank, and anerward for the Exchange Bank
from the State Treasury. The two former banks sus
pended business November, 1873 The Ex-
change Bank, though badly crippled, through
the energy of portion of the stock
holders reorganzed its business affairs and the bank
has been doing business since At the time of the
panic in 1873 the Citizens Bank the State $4,000
and Anderson owed the bank about the same sum.
The savings bank owed the State $3S ooo Ander-
owed the bank about the amount These
banks, falling to get proper satisfaction from Anderson,
began to institute proceedings in bankruptcy against
HIM. Robert w. Mackey, the State Treasurer fearing
the developments which the proceedings might cause,
the two banks held against Anderson by releasing the
claims of the State against the banks and holding An
derson only. Anderson at the time Of
1878
was president and almost sole manager Of the Ex-
change Bank he had been from opening for busi-
ness in March, 1872 He negotiated loans or pretended
TO- for this bank from the state Treasury Al the time
of the panic OF 1873 Mackey State Treasurer, held
claims for loans Of $55 900 against this bank William
H. Kemble, Of Philadelphia, former State Treasurer
and now an alleged confederate of Mackey in the
Treasury ring, was also stockholder of the
Of the ESchange Bank from the time II opened in s7s
until the fall Of 1873 largely mixed up with the
Peoples (Kemblesl Bank OF Philadelphia. The loans
spoken of from Mackey treasurer to the Exchange
Bank, through Anderson, its president and manager,
We're made in the following way:-Various sums from
time to time, sent it rs pretended that they
were sent Kembe's bank at Philadelphia by Mackey
and charged upon the Treasury books TO the Exchange
Bank Of Ttusvle, Kembe's bank crsiIting the Ex-
change Bank with the Anderson then drew
through his bank the Exchange OF Ttusville for
his Individual purposes upon KembIe's bank having his
drafts charged up TO his bank AT the time Of the dis
tress Of the bank in the fall of 1873 several Of the
Tiusville stockholders substantial business men, for
They found upon the books credit to the State of
sos 000 As stated above, Anderson was owing the
bank amount considerably larger. They obtained
JUDGMENTS AGAINST ANDERSON
amounting to s32 600 which they entered up in Craw
ford county November 8, 1873 on the same day
William H. Kemblc caused to be entered up in his favor
in venango county, which adjoms Crawford, a judg-
ment Of $4,000, and upon the next day there
other Judgment Of $4,000 entered in Crawford county
$4,000 These judgments were really owned
by Mackey. BY the records OF the United States
courts al Pittsburg il appears that proceedings
commenced against Anderson March g. 1874 by the Ex-
change Bank, board Of directors and president
having previously been elected, when Mackey and kem
BILE fearing disclosures settled the claims of the bank
against Anderson and Mackey, State Treasurer at
the time, released the claims he held against the
bank.
UGLY CHARGES.
It is charged that the transactions of the loans by
State Treasurer to the banks through Anderson,
fictitious That the amounts pretended to have been
loaned comprised what had been frauducnty taken
various times IRON the Treasury, Is believed by
era OF the bank stockholders who repubcans that
custodian Of the peoples money, Mackey If the
transaction had been legitimate would have retained
all the stockholders of the bank except Anderson
well known as his associate, who was insovent The
dilemma from which Mackey is asked to extrcate him
sell is that the transactions hcttons to
stolen moneys by Mackey, aithless State officer Last
night package Of money from the State Treasury
reached Ttusve for the benefit of Rawle whom
MackeY is irving to elect as his SUCCESSOR.