The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-05-29
Investigation Reveals a Shortage of Not Less
than Million Dollars, and the Re-
turns Are Not Complete.
A Financial Scoop Which Has Never
Been Equaled in the Smoky City.
Hints of Gigantic DefalcatiOn-0ne of Grant
& Wards Transactions of
Bank President BruOn.
A Million Dollars Gone, and the Worst Not
Yet known.


Million Dollars Gone, and the Worst Not
Yet Known.
PITTsBURG, Nay 28-In the extremely mud
died condition of the Penn Banks affairs the
absence Of President Riddle, the only person
who holds the key to the secrets of the bank, the
retcence of the directors and the ominous silence
of all concerned no definite conclusion can be
reached, but it is now taken for granted that de
positors will be fortunate if they get five per
cent of the amounts int1usted to the bank
This much is definitely known The concern is
completely Quilted; the assets are diminishing
rapidly and the liabilities swelling even more
rapidly. Those who had call on its resources
drew with an unsparing hand, and there is little
left to tell the tale. The books shed very little
light on the identity of those who despoiled the
institution, as the accounts are in fictitious
names. A capitalist like VIM. H. Vanderbilt is
made to masquerade on the ledgers for
those getting aid III some unknown way. The
shortage grows hourly, as the intricacies of the
book accounts are unraveed, and from the best
information it is known that there has been
$3.50, 900 overdrawn. This overdraft has grown
to 81, O0O,O GOO to-day, and the end is not yet So
clean sweep has rarely been made in Pitts
burg. The liabilities are believed to reach
81 100000 1t is said that the banks methods
date back three years, to the time of the Cherry
Grove oil excitement and since then the bank
has been losing steadily. A prominent business
man. who is acquain led with the affairs of the
bank says if it had closed its doors on March
he doubts if the depositors would have realized
10 per cent
Last night, after business hours, w N.
Riddle, by his attorney, filed confession
OF Judgment in favor of the directors
of the bank for 500, $50 judgement was entered
and execution of attachment issued and put into
the hands of the sheriff, with instructions to
levy upon long list of persons, corporations
and institutions as garnshees
The Penn Banks charter was purchased from
defunct institution, and is very liberal. 1t
provided that no stockholder or officer shall be
assessed or liable for any purpose whatever for
any greater sum than the face of the stock held
Oy such stockholder or officer
The deficiency still grows, and this evening
reached 81, 260 600 Heavy defacatious are
limited at which, it is claimed will reach nearly
a million. The directors have been in session
nearly all day, and have decided to have
thorough investigation, and full statements fur
nished the public They also say that if wrong
pay the penalty. Many of those who made de
p0sits on Friday. threaten the bank officials with
criminal proceedings for false pretenses in obtain
Ing money.
CaSnler heloeP IS now under police SurVell
lance. President Riddle is MT h better tonight,
and probably will be strong enough to come to
the city to morrow.
The Penn Mutual Protective Association was
organized few years ago,.with Hon. James II.
Hopkins, presidents w N. Riddle, treasurer,
and Fl. D. Sellers, secretary. It's object was Inc
insurance of the lives of its members, and it is
now believed to have been primarily designed to
bring grist to the Penn Bank mill in the shape of
the collection of assessments where deaths oc-
Cured. 1t has enrolled on its books as members
a good many people who believed it to be a
safe investment; but it never has reached
great Importance financially. "A member
died recently, and when a representative
presented a claim for the amount of insurance
he was informed he could not be paid in less
time than three months. This was before the
development of the trouble in the Penn Bank.
The failure later may prove fatal, also, to the
Penn Protective Association A number of
lawyers are hard at work endeavorng to find a
flaw in the charter or organization proceedings
of the Penn Bank, that in any way would make
the stockholders individually liable
This afternoon the directors appointed Henry
Warner, ex-county commissioner, assignee of
the bank.