Evening star., 1905-11-04
WAS TOO OREDULOUS
DIs1GISSAL OF BANK EXAMINER
NATTERN.
Failed to Discover Condition of the En-
terprise National Bank Of Al
legheny City.

w. B. Ridgeiy. controller of the currency.
has removed from the service Bank Ex-
aminer r. H. Mattern OF the western Penn
sylvania examiners district on account OF
his failure to discover the conditions exist
ing In the Enterprise National Bank of
Allegheny City. The investigation showed
that the conditions leading to the failure
of that bank had existed for some time. and
that they should have been earlier diseov-
cred by the bank examiner. Mr.. Ridgely
says:
Examiner Matterns case has been care
fully investigated and he has been given
full opportunity to be heard in his own
defense. There is not the slightest ground
for suspicion of any criminal intent on the
part Of Mr.. Mattern or any corrupt col
lusiOn with the of11cers of the bank. He
was however. entirely too credulous in his
acceptance of their statements. and care
less and inefficient in his examinations.
To Succeed Mattern.
= The controller has assigned to the district
made vacant by Mr.. Matterns removal
Examiner Owen T. Reeves, jr. Mr.. Reeves
was formerly an employe of the controllers
office. and at time acting chief OF
the reports division. He has had several
years experience assistant bank ex-
aminer in New York city and bank
examiner in Maryland. New York, Pennsyi-
vania and in other states on special work
He has been detailed to the Department of
Justice in many important criminal cases,
notably those at Medina, Fredonia and
Syracuse New York. This assignment is
made because Mr.. Reeves not only has the
personal confidence of the controller. but Is
absolutely free from any political alliances
which might In any way influence him in
making thorough examinations Of the banks
in his district. Mr.. Reeves Is an expert ac-
countant and critical and thorough ex
amfner..
The Controllers Report.
Controller Ridgely has sent to Mr.. Loeb.
secretary to the President. the following
letter regarding the investigation into the
bank failure:
your letter of October 81. inclosing by
direction of the President "a letter from
Gov. Pennypacker relative to the Enterprise
National Bank of Allegheny Pa, has been
referred to this office.
1.-The day the bank failed 1 began to
make the full. complete and careful inves-
tigation that Gov. Pennypacker asks to
have made. Mr.. Cunningham. the receiver
OF the bank, who Is the examiner who dis
covered the defalcation and closed the
bank. Is one Of the most competent and
emcient men in the service. At the request
OF the Department of Justice I have de-
tailed to assist him In looking up criminal
violations OF the law Bank Examiner Ed
ward j. Moxey. who has had great deal
or experience In just such cases.
In addition to this, l have had Judge
F. F. Oldham, special attorney of the in
solvent division of this Office, make two
trips to Pittsburg to look into special maj
ters which have been discovered. i have
also detailed to assist MIR. Cunningham
one expert accountant from this office and
a number Of other good men who have had
experience in receivership cases
Il know of no way In which / could
strengthen or improve the organization
have now at work Investigating this
case, and you may rest assured that a
thorough investigation will be made, that
every violation Of the law that we can dis
cover will be reported to the Department
of Justice. that we will collect all the evi-
dence possible. and aid them to the fun
extent of our power in the prosecution OF
any people who have been guilty of any
viola tion Of law"