Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-05-21
THE RUIN COMPLETE.
Inside History Of The Philadelphia
Bank -Wrecking Deal.
A MILLION LOANED TO CLERKS,
Who Merely Acted as Flgureheads 10 Secure
the Funds.
AN IMPLICATED EMPLOYE OWNS UP
ESPECIAL rELEeRAm TO THE prspArou.,

| PHILADELPHIA, May 2O-The puDlich-
tion to-day OF Examiner Tompkins' report
Of the. condition OF the defunct American
Life Insurance Company and Assignee
Smiths inventory OF the Bank OF America
created a profound sensation even among
those who had some knowledge Of the
crooked methods Of these concerns, but the
publication was more OF a surprise to men
who figured prominently as borrowers than
| to anybody else. Men who were credited
with loans from the companies to immense
amounts knew nothing OF the transactions
credited to them on the books, and admitted
that they had been acting all along simply
as cat's-paws OF the Work-MaeFarlane
| syndicate of wreckers.
Most of the nearly million Of money
loaned by the American Life on worthless
| collaterals was loaned by John j. MacFar-
lane, directly and indirectly, to himself.
| The names of J. s. DUNCAN, who was cred
tied with a loan of S100, 900, and Of W. j.
Cote. against whom the company's books
charge s74, 900 borrowed, were used by the
| Work. -MacF Farlane combination to secure the
money.
MERELY FIGUREHEADs.
Neither Of the men are responsible In
any way, and both OF them acted simply as
paid employees. The same is true OF the
| three principal borrowers who appear In
Assignee Smiths inventory Of bills receiv-
able Of the Bank Of America. According
to that statement, Richard II. Ewbanks, II.
| Il. Yerkes and George w. Bolleau bor-
rowed from the bank S413.022 out Of q total
| loaned OF S605, ,045. In addition to this sum
| 60 400 Ia given as loaned to Charles l..
| Work, leaving about $172, ,623 borrowed In
small amounts by various individuals and
| companies who are more or less responsible.
Ewbanks was an employe Of the bank and
Boileau Of the Philadelphia Finance Com
pany, while Yerkes acted simply as sort
| oil note broker.
All are irresponsible, and the big mass OF
indebtedness charged against them cannot
OF course be recovered by the bank from
them. They didn't receive the money.
Their employers, who used them, did. The
accounts show that the Work Nc Farlane
combination must have secured to them
selves from the two companies at least
Si, 100, 900 In money, borrowed principally
under tho disguise of employees names.
Most OF the money taken from the Bank OF
| America In this manner was borrowed
during the months Of March and April,
when, according 10 their own admissions,
| the officers knew the bank 10 be iBsolvent.
| The plot Of the wreekers was pretty
affseliyey given away to-day by an em-
ploye until recently Of Work aud MeHar'
lane,
STORY or An EMpLoYE.
This IL W, j, Cote who on the 6rst Of the
month resigned his position ~ cashier OF
the American Financial Association, OF
which George II. Work, the promoter OF the
various wildcat concerns that figure In the
assets OF the American Lie and Bank OF
America, IL the actual organizer and con-
teolIer, and his former clerk, J., 10. Pfeifer.
the osteDsible president, C0lte now has q
clerical position with the Mclaughlin Elec-
trioal Company.
Cote figured In Examiner Tompklns' re-
port as O borrower from the American Life
TO the extent Of $4,000, that being the big.
gest Individual loan, with the exceptions OF
the SAYS, 900 to President haeFarlane and
the 500, 900 to Cashier j. s. DUNCAN, OF
the Bank OF America. Cote said; II never
borrowed cent from the American Lille,
and nobody could have been more surprised
than was to see my name in the report
did not know that II was to be found In the
company's books. The money was bor-
rowed by Mr.. MacFarlane in my name"
Last December Mr.. McFarlane came to
me In the Office OF the American Financial
and asked for the use Of my name to secure
q number OF loans on collateral. How many
loans and for what amount have forgot
ten. They were to be call or demand loans,
TO be paid off at once, and the collateral
was to be placed by Mr.. McFarlane in my
name.
ONLY AN EMPLoYE.
1T was only an employe Of Mr.. Work and
Il n LaI htnnr t0 do hnt
to obey instructions. They paid me good
salary to do what they wanted me to do and
they had perfect right to use me as they
pleased. am not going to deny anything.
left those people on the first OF the month,
when saw how things were going and what
the end must be. I didn't think that Mr..
McFarlane was going to borrow money out
OF his own company and put my name on
his books as a borrower, hut that seems to
have been what he did. am not worth
cent in property of any kind and have never
been anything but an employe, and as L, in
dividually, never borrowed anything, OF
course nothing can be recovered from me.
at was customary to use other peoples
names In negotiating loans as matter OF
form and the men mentioned as having Dor
rowed money from the bank Of America on
collateral, Yerkes, DUNCAN, Boileau and
Ewbanks have borrowed In just the same
manner did, that is In name only. Ihe
managers, of course got the money. What
they did with 1t don't know. l did not
suppose Yerkes, DUNCAN, Boileau and Ew-
banks know. II wasn't our business TO
know.
ALL oBEYED ORDERS.
"Mr DUNCAN, who acted as cashier Of the
BANK of America, was In reality only
clerk, and knew nothing about the manage
ment of the bank. He did what he Was
paid 10 do, the same as land the rest Of Us did,
and OF eoiirss he IL not morally guilty OF any
wropgdojpg, His loan Of 100000 rom the
American Life was In his name, the same as
mine was, but II IL not to be supposed that
he got any Of the money, saw Yefkes
this morning, and he was as much surprised
as was, He said he didn't see how b g
name came 10 be used ~ one OF the pFinelp !
borrowers OF the bank, as le never borrowed
the n,onay, ard only did what ha WAS