Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-01-04
BUNK0ED BY BROWN.
Another Philadelphia Fiscal Concern
in Which the
DIRECTORS FAILED TO DIRECT
Goes To Pieces About the Time Trusted
Officers Go Away.
HONEST STOCKHOLDERS IN THE SOUP
ESPECIAL TELEGRAM TO THE DIsPATCH.l

ESPECIAL TELEGRAM TO THE DIsPATcH.l
PHILADELPHIA, Jan. 3.-Three of the
officers of the Continental Trust and
Finance Company, which was declared in
solvent by Superintendent of Banking
Krumbhaar, on Saturday, could not be
found to-day, and it is suggestive coinci-
dence that they are the only members of the
board of officers who know anothing about
the company's affairs. None Of them were
at their homes during the day,
and a diligent search throughout
the city failed to discover them.
They are Walter Brown, the president,
Pittman Bright, the Treasurer, and T. D.
McGlathery, the solicitor of the bankrupt
concern. Superintendent Krumbhaar did
all his duty on Saturday when he closed the
doors of the company'ss handsome offices at
125 South Fourth street. Tomorrow he
will place the matter in the hands of At
torney General Hensel, as the law creating
the new banking department requires, and
the latter will apply for receiver
The assets of the concern amount to about
s., 900, and the liabilities may be anywhere
from 5000 to 100000 If President
Browns last report to the Board of Direc-
tors be taken as gospel truth the company
will owe its stockholders alone about the
latter amount. To what extent it is in
debted to depositors will not be known
until the receiver goes over the books.
Only g, 900 in cash was in the safe when
Superintendent Krumbhaar closed the
Office. The company was capitalized at
100000.
They Took Browns Word for 1t.
and one of the. Board of Directors, told of
his connection With the company to-day,
and with the exception of Messrs. Brown,
Bright and McGlathery, the other officers
have the same story to tell. They were in
duced to join the company by President
Brown, and paid in full for ali the stock
they subscribed for. Browns reports to
them indicated prosperity, and they
never but once took the trouble to
go. behind his statement. General Stewart
said Brown came to him before the Con-
tinental Trust and Finance Company had
been launched, and interested him in the
venture He had excellent letters of recon-
mendation from bankers and business
men of st. Louis, Kansas City and
other Western cities, and General
Stewart subscribed for 81, 200 worth
of stock. He paid cash for the
parchment on five calls of 20 per cent each.
The election to the Vice Presidency and to
the Board of Directors was something of a
surprise to General Stewart, for he had told
Brown he could devote no time to the man
agement of its affairs. This was evidently
the cause of his selection, for it was a SINH
lar one which gave his companions their
positions.
Wanted Directors Who Couldn't Direct.
Maxwell Somerville invested 5000 in
Continental stock and went shortly after
ward to Egypt. President Brown made
him director Colonel Francis S. Reese
owns $500 worth, and is also the holder of
responsible position, although he told
Brown he very seldom visited this city. r.
w. Carey, another director, resides in Kan
sas City, and has never been in Philadel-
phia. This left the active management of
the company in the hands of President
Brown, Treasurer Bright and Solicitor Nc
Glatherv.
81 did not have time to watch the opera
tons of the officers in charge" General
Stewart said, "but in company with the
other stockholders L had the utmost conf
dence in President Brown. He said his
idea was to conduct a conservative business
at first, and to branch out as confidence in
creased after the recent panic. We thought
this good idea, and whenever l could do
so 1 attended the monthly meetings of the
Board of Directors. Brown made regular
reports, and they showed that the company
was doing a moderately good business and
that stock was being marketed at an encour-
aging rate. General Stewart admitted that
he knew several months ago that Treasurer
Bright of the company was defaulter."