Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-26
A CRIMINAL CHARGE
Will Probably Re Entered in the
Latest Bank -Wrecking Case.
MORE SENSATIONAL FEATURES.
One Man With a Cash Balance Of Just $61
Borrowed $63,OO0.
SOME PECULIAR CERTIFIED CHECKS

New YORK, March 25.-As- the investi-
CATION of the Washington National Bank
affairs progressed to-day under the official
microscope of National Bank Examiner
Hepburn's men, it was indicated that
United States District Attorney Mitchell
and the United States grand jury will take
hand in the proceedings. Mr.. Hrpburn's
preliminary report on the condition of the
bank is already on its wav to Washington
for the inspection OF the Controller of the
Currency.
The banks capital of $780, 900 has been
impaired by President Evan G. Sherman's
generous loans, one hundred and Iorty-eight
odd thousand dollars. 1t is believed that
Mr.. Hepburn can establish the fact that part
of this impairment results directly from over
certifcation, which is a criminal violation
of the banking act under which the bank
received its charter. James D. Fish, il will
be remembered, spent number of years at
Sing Sing because the Marine Bank. of
which he was President, overcertifed the
account Of Ferdinand Ward.
Progress of the Investigation.
Hepburn was not well enough to remain
at the bank to-day, but his subordinates
were on hand, and some of the directors,
among them, notably, H. Victor Newcombe,
reorganization of the bank. They will meet
tomorrow afternoon to discuss this question.
and at the same time some line of action will
be discussed concerning President Sherman
ana his friend, John s. Silver.
1t is claimed that Silver is a stockholder in
the bank. With 4 cash balance of SCI In the
bank he owes it S6S.000. and the collateral on
which he obtained the loans to that amount is
not promising, according to substantial author
tiles. 1t was discovered to-day that Silver con-
trIbuted very largely to the disastrous results
which necessitated the official visits OF Mr..
Hepburn and which eliminated in closing the
banks doors.
Silver was director and member of the Ex-
ecutive Committee of the American Loan and
Trust Company. As member of the Execu-
tive Committee he had voice in determining
the loans OF the institution. In fathoming the
difficulties of the Washington National Bank,
friends of the institution have discovered that
Silver obtained $4,000 from the American
Loan and trust Company on collateral of pro-
1ected and unfinished railroads.
Very Rapid Financier.
Besides tina loans, aggregaiing Sl75. 900 Silver,
also obtained sl3, ,0OO in drafts on the American
Loan and Trust Company. These drafts were
for future collection, and are similar in fnan-
cial character to the out-of-form drafts. which
MI. Hepburn and Director Tilghman say
worked such injury tn the Washington
National Bank These drafts, according to
close friends of Mr.. Hepburn. and Mr..
Tilghman. were discovered when Receiver ].
Edward Simmons took charge of the Amerl-
can Loan and Trust Company. He immedi-
ately notified Silver peremptorily to pay these
drafts. and at the Washington Bank 1t was
learned that Silver made haste to comply with
Mr.. Simmons demand. But he adopted
method familiar to himself to meet the en-
phatic demand of Mr.. Simmons. With SCI in
the Washington Bank he obtained on Wednes-
day Of last week 4 certified check for Sll, 500.
In the natural sequence of check-kItng Sill
yer left with Sherman as collateral for this GER
titled check an nncertifed check for the Sll,-
$50 on the Third National Bank. Silver had
small account wit h that bank also. On Thurs
day, with the demand OF Mr.. Simmons still
pressing upon him, Silver obtained. it
is claimed, by directors familiar
with the Washingtons troubles. a
certified check tor s25000. He used
part of this money 10 take up the uncertified
check of the Third National, and the remain
lug $l3 500 he handed over to Mr. Simmons to
satisfy the unpaid drafts issued by him. and
which were found nesting among the riff-raff
securities in the American Loan and Trust
Company's vaults
The check for SIS, 600 which Sherman gave to
Silver, without the knowledge of Cashier
Granger, it is said, was the last straw, and
after hasty examination of the banks condi-
tion the Gallatin refused further to clear for
it, and this eventually precipitateG the official
visit of Mr.. Hepburn.