The Indianapolis journal., 1903-07-31
DOylestOwn (Pa) Concern That Had
Over S1.OOo,OOO i'm Deposits Sus-
pended by the Controller.
STATEMENT OF A DIRECTOR
MOST OF THE MONEY LOST IN CON-
SOLIDATED LAKE SUPERIOR.
He Says the President of the Bank
Took $4,000. the Cashier $4,000
and a Clerk $4,000.

DOYLESTOWN, Pa, July 3O.-The follow
ing notice was posted on the doors of the
Doylestown National Bank to-day: This
troller OF the currency" 1t was signed by
ID. +. Kane. deputy controller Of the cur
rency, and ]. w. Schofield, national bank
examiner. The posting of the notice caused
considerable excitement in the town. as the
deposits of the institution are large. The
failure was due TO speculation in stocks.
The capital of the bank was $lo5,000, and
the last report to the controller showed:
Surplus and profits, s131, $50; deposits, over
81, 900 600; loans and discounts and stock and
securities, s1.o51, ,365. The bank was one of
the oldest in the State. Its Philadelphia
correspondents are the Philadelphia Ma
tional Bank and the First National Bank.
The former has been it's agent for fifty
years and the latter for thirty years. The
president of the bank Is Henry Leer
prominent lawyer and candidate for Judge
on the Republican ticket. Ed p. Brock is
cashier.
The losses, said Deputy Controller Kane
to-day, will absorb the entire surplus and
capital stock of the bank. In other words
the total loss will amount to S2150O0, and
1T devoives upon the directors and stock
holders to make up this deficiency.
Francis L. Worthington, a director, said:
1.-THE president and cashier ran things to
suit themselves. They had no right to do
SO. They ought to have consulted the board
of directors and this trouble would have
been avoided. No one suspected anything
wrong. Our stock has been increasing in
value, advancing from $50 share to s153. L
suppose L will lose all through mismanage-
ment of the officers.
Il understand there was speculation in
Consolidated Lake Superior stock, and most
of the money may have been sunk in that.
We found that this speculation has been
going on since 1897. President Lear and
Cashier Brock have been drawing money
without saying anything to the directors.
Now that the whole thing has come to light,
we find that the president secured about
$4,000 and the cashier about $4,000. One of
the banks clerks, Fred Clayton, secured
between $1,000 and $4,000. The bank holds
the personal notes of the men and some Sc
curity was given. but it is practically worth
less. AT a meeting yesterday the president
and cashier were asked If they could take
up their loans, and said they could not.
The action by the government officials fol-
lowed
Mr. Worthington did not think the bank
would resume business He did not know
that criminal action was contemplated, but
he believed that suits would be brought to
recover from the bank employees the amounts
of the loans.
Ed P Brock cashier, declined to reply
to the accuse tions of Mr.. Worthington, say
ing: "Our investments did not turn out as
we'll as We expected.
WASHINGTON, July 30.-The statement
says the failure of the Doylestown National
Bank was brought about by speculations in
stocks on the part of the officers and a
number of the customers OF the bank.