New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-29
PRICE THREE CENTS.
PENN BANK DISCLOSURES
ACCOUNTS ENORMOUSLY ovERDRAwx
NOT MONEY ENOUGH TO PAY RECEIvER's ykE--
TALK OF CRIMINAL PROCEEDINGS.


PITrsBURG, May 2S.-There is not enough money
left in the Penn Bank to pay the fee of receiver.
Never in Pttsbu-g have there been such astonsb-
ing revelations in connection with the iailure OF
corporation The books shed little light upon tho
identity of those who despoiled the institution, 40
the accounts were kept in fictitious names capi
talists like William ii. Vanderbilt were made 10
masquerade in its cdgers for INSCRIPTIONS
men who were aided in some unknown manner To
help themselves 10 the depOsitOrs money. Tho
shortage from less than $350.000 last night has
grown to fully ~, 100000 to-day, and the end 10
not yet reached.
1t now appears that this state of affairs in the
bank dates back to 1882 at the time Of the Cherry
Grove excitement when oil fell below 30 cents and
banks had great difficulty in keeping their custom
ers up to the line in the matter of margins A
customer of the bank said to-day: " The bank has
been dong business entirely on false reputation.
On March /, | saw transcript of the account Of .
prominent oil spccuator which showed an over
draft Of more than $4,000. When cash ran low
they adopted the device Of margin slips 90 tide
them over and q few weeks ago some of the banks
were full of these evidences of indebtedness which
were not worth the paper upon which they wcrs
printed Out of the calling by one Of the banks
here for the cash on $4,000 worth of this sort of
paper grew tn, stories which excited the lndignar
tion of President Riddle and the officials of tho
bank and which perhaps were instrumental in pro
cipitatng the crash that was bound to come sooner
or later
Among the several mysterious accounts unearthed
there is one " Watson * Co., oyerdra WIN % tho
amount Of 1928, 900 Then there is Hill Il Co..
who are OycIdIawn about 100000. 1t is also
said that the oil syndicate account - OyerdrawB
Sl36,O00 1t is said that large amount Of cash
known TO have been on the counter of tie bank on
l., ,4.lF
for some purpose on Saturday night. 1t Is also SAID
that $4,000 Which was reported to be in the hands
of the bank when it closed its doors Monday has
been decreased in amount until IL is only
$4,000. I. j. Watson still denies that his account
was Oveldrawn AMI discaims all knowledge Of any
such films as Watson s Coz or" Hill ~ Coz
WATSON, HILL, AND THE OIL SYNDICATE,
The finn Of Watson & Hill, composed OF I. J.
Watson and II. :. lIi were among the largest
brokers who operated the oil market fol tho
great bail syndicate last summer This bull syndi-
cate, which composed of Russell Sage, James
Il. Keene and others in New-loIk, this city ard
elsewhere, lost enormous sums and got ont 10y com-
promise with the standard oil Company. Tho
partnership between Watson and iliil was
dissolved before the big deal Was completed This
may explain what some OF these amounts mean.
because Watson was certainly u big operator for
the bank, and It also certain that the syndicate
took Its business ont Of other brokers hands toward
the close and put most of II into the hands al Mr.
HILL Congressman Hopkins was one of the three
directors of the bank who did not ndotSe the notes
to tine associated banks.
II is reported that criminal proceedings will 10
taken against all the officers of the bank by those
who made deposits on Friday, on the ground Of
false pretensrs in obtaining money. Many depos-
itors refuse TO take any part IN such proceedings
The Pennsylvania Mutual Protective Association,
life insurance concern, is probably doomed 10 20
by the board Oh account Of the bank failure. Tbs
Pennsylvania Mutual was organized few years
ago by Congressman Hopkins, then president. and
Riddle then cashier, of the Penn Bank. he charter
procured originally by James /. and the late
Charles /. Wood, for the purpose of starting a
bank al Whealand; Mercer County where they
erected four large blast furnaces together with roll
ing mills, etc. Ihey became baukrupted before
the bank was started and the charter was brought
to this city and sold to Congressman Hopkins Tor
$l,1O0.
LIABILITY CT STOCKHOLDERS
1t is said that stockholders liable only for tho
amount Of their holdings. number of attorneys
are hard at work trying to find flaw in the char
ter or the Organization proceedings of the bank.
If they succeed it will be sorry day for the pres
ent stockholders or any person who has heretofore
owned stock in the corporation and failed TO adj
vertise tas same when sale was made, as each
stakeholder Will thus be rendered individually La
bic for all the debts of the bank and rich harvest
of lawsuits will result.
President Riddle has thus far refused TO reveal
the names OF those who composed the firm OF ID.
Wilson & Co." His tongue is Ollen that ono
can scarcely understand him. To-day his attorney
has recorded Judgment note or bond for So0, 750
including All attorney = commission OF PIIOO, con-
fessed on May % in favor of lhonias
Hare aud eIght Others. An execution attach
ment was issued immediately with instructions 10
levy upon a long list Of persons, corporations and
institutions, garnishee5 OF Mr. Riddle. The
Ncw-York Pittsburg and Chicago Construction
Company, the Pitsburg and Chicago Railroad Com
pany, and the Ncw-i0rk Petroleum Exchange are
includcd in the list. This afternoon the directors
of the Penn Bank decided 10 appoint Henry Warner,
cx-COunty Commissioner and superintendent Of
the WorlhouSe, assignee of the bank.
HEAVY DEFALCAIoNs SUSPECTED
Late this evening If was stated good author
y that the oyerdrafts Oh the bank would amount
TO 81 ,2G0, ,O00 Extensive defalcstous are hntod
at one person a'serting that it would take 000-
900 to cover the latter. The general opinion is
that " n. Wilson * Co." was composed of six per-
sons Three of these are said TO b. connected with
the bank, aud one, an oil man, who acted
as the head OF the faction. A stock
holder of the bank sand that he thought the oil
manipulated the PIttsburg market IN New-YoTk
City and had his headquarters there There seems
to be little doubt that John l.. Bealc could explain
much of the mystery, If he was here. He went TO
Newiork last week after the failure aud has not
yet returned. Tonight Cashier Rcihcr, OF the de-
funct bank il beng closely watched by detectives