Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-29
PITTSBURG'S PENN BANK.
EVIDENCES THAT POINT TO A
FEAST By SHARKS.

The Shortage Already Known to be
Over 81 900, 900 and Increasing Rap
idly as the Books Are Unraveled -
Civil and Criminal Suits on the Tapis
The Failures Elsewhere
PITTsBURG, May 2S.-The affairs of
the Penn Bank are in bad condition
owing to the absence of its President.
who is the only person who holds the keys
to the secrets of the bank; and thereticence
of others is such that no definite conclu-
sion can be reached; but 1t is now taken
for granted that depOsitOrs will be fortu-
nate if they get per cent. of the amount
entrusted to the bank. This much is def
nitely known: The concern is complete
ly Quilted. The assets are diminishing
rapidly and the liabilities are swelling
rapidly. Those who had Il call on the
resources drew with an unsparing hand
The books shed very little light on the
identity of those who deposited with the
institution, as the accounts are in fic-
titi0us names. Such names rs William
ii. Vanderbilt are made to masquerade
on the ledgers for those getting aid in
some unknown way from depositors'
money. The shortage shows greater as
the intricacies of the book accounts are
ufraveled, and from less than $350,000
overdrawn it has grown to $l,000,000 to-
day, and the end is not yet. So clean a
sweep has rarely been made in Pitts
burg. The liabilities are believed to
reach over $2,000,000. 1t is said
that the banks method of
bookkeeping dates back three years to the
time of the Cherry Grove oil excitement,
since which time the bank has been losing
steadily. Prominent business men who
are acquainted with its affairs say that if
they had closed its doors March 1, they
doubt ii the depOsitOrs would have real
Ized one per cent. Last night after bush
ness hours W. n. Riddle, President of the
Penn Bank, through his attorney filed a
confession of Judgment in favor of the di-
rectors Of the bank for 500, 750. The judg-
ment was entered and an execution
of attachment issued and put in
the hands of the Sheriff with
instructions to levy upon a long list of
persons, corporations and institutions as
garnishees. The Penn Banks charter
was purchased from defunct banking in
stitutiOn, and is very liberal. 1t provides
that no stockhOlder or officer shall be as
sessed or held liable for any purchase
whatever for any greater sum than the
face value of the stock heldby such stock
holder or officer.
THE DEFICIENCY GROWING LARGER.
PTTTsBURG, May %, 10 p. M.-The de-
ticiency in the Penn Bank still grows, and
this evening has reached 81 ,260, 900.
Heavy detalcations are also hinted at,
which. it is claimed, reach nearly $1,000
600. The directors have been in session
all day, and have decided to have a thor
Ough investigation and full statements
furnished the public. If wrong has been
done by any one, he shall be made to pay
the penalty. Many OF those who made
deposits on Friday last threaten the
bank officials with criminal proceedings
for false pretenses in obtaining their
money. Cashier r. Ruber is now under
police surveillance. President Riddle is
much better tonight, and will probably
be strong enough to come to the city to-
morrow. This morning the Directors APP
pointed Henry Warner, eX-COunty Com
missioner, the assignee Of the bank.
AN INSURANCE ADJUNCT.
The Pennsylvania Mutual Protective
Association was organized four years ago
with Hon. James II. Hopkins as PreSi-
dent, w. r. Riddle as Treasurer, and Ii.
ID. Sellers as Secretary. Its object was
the insurance Of the lives of its members.
1t is now believed to have been primarily
designed to bring grist to the Penn Banks
mill in the shape OF the collection of
assessments where deaths occurred.
1t has enrolled on its books as members
SOOu many peOple VINO UeIlefeu IL 10 Dc
safe investment, but it never has reached
great Importance financially.
A member died recently, and when his
representative presented a claim for the
amount of his insurance he was informed
that it could not be paid in less time than
three months. This was before the de-
velopment of the trouble in the Penn
Bank. The failure of the latter may prove
fatal to the Pennsylvania Protective As
cOq9afIOD A nlIm hAr nf l. a a ri
at work trying to find flaw in the char
ter or the organization proceedings of the
Penn Bank that in any way would make
the stockholders liable.