Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-05-22
QUEER BANKING METHODS
MADE PUBLIC IN INVESTIGATING THE
BROKEN PHILADELPHIA BANK.

Large sums Loaned TO Clerks-A Phenom-
enniiy Ignorant Cashier-Somc PuzzIing
Questions Asked of George r. Work
Light Thrown on n Mystery.
PHILADELPHIA, May PA committee
OF the depositors of the defunct Bank Of
America succeeded to-day in getting more
light upon the mystery of where the money
went to than the public has here.
tofcre had the privilege OF knowing.
They had the opportunity of
placing the cashier of the
institution under q brief but rapid lot
of questions, land succeeded in making
him divulge where the large sums OF money
which appear credited on the books to Rich
ard Ewbanks, George w. Boileau, two
bookkeepers employed by the bank, and II.
r. Yerkes, q note broker. went These
sums, which appeared on the books,
are loans secured by such oollaterals as the
stock of the American Financial Company
and kindred organizations engineered by
George r. Work. and his associates are as
follows: r. II. Ewbanks, Sl25, 900: George
w. :Boileau, $l62, 300, and II. Z. Yerkes,
$7l,741.
beginning with Boileau, Cashier DUNCAN
said he had no account In the bank. He
was n bookkeeper. Under instructions OF
President Pieifier, the $4,000 In
his name on the books was
passed to the credit OF John j.
MacFarlane. subject to his check. Ew-
banks. Mr.. DUNCAN said, was an employe,
ana had no account Mt the bank. The
amount OF $125, 900 In his name was credited
70 the American Financial Association.
Asked who was the cashier Of that associa-
tion. Cashier DUNCAN said he did not know;
he only knew that the checks were drawn
bv the Treasurer, George +. Work.
H. E. Yerkes, Mr.. DUNCAN said,
was the only one OF the
trio who appeared to have drawn such large
sums who had no account at the bank. His
account, however, bore no relation to the
size of the loans credited to him. The
amount OF S71, ,741 standing in his name on the
books was like that IN the name Of Ew-
banks, credited to the American Financial
Association, and drawn upon by George +.
Work, Treasurer. Work drew the checks
and signed them.
"How came you to pass these amounts to
the credit OF MacFarlane and the American
amounts to, In fact?" asked Mr.. Grant, the
Chairman Of the committee.
~ did 1t under instructions Of President
Pfeifier," said the cashier.
Mr.. Work said that about 5000, 900 Of the
bills discounted by the Bank Of America
were for his association. When asked how
much OF the money he could pay back he re-
piled: About $780, 900 within six months"
Then you mean to tell me" said Chair
man Grant, that your association has been
so ill-advised as, after IS months experience
with paid-in capital Of S1,000,0 900 aud
nearly $500, 900 borrowed money, to be able
only to produce 10 cents on the dollar OF the
money borrowed from the Bank OF Amer
ica."
ut depends on the depression Of the Sc
curities we hold" was the answer. "I
would not say 10 cents If we had little
time"
After considerable close questioning re-
garding the disposition of certain amounts
OF stock, he promised to make list Of the
securities held bv the Financial Association
and present it Saturday. The committee
will meet again tomorrow.