Danville intelligencer. [volume] (Danville, Pa.) 1859-1907, 1905-10-27
FARMING THE FUNDS
in STATE TREASURY
The Vast Surplus Used By Machine Politicians In
Various Kinds of Private Enterprises and Per-
sonal Operations-S Deposits In Con-
sideration of Hazardous Loans.


Iloiilsf ID SdSlle, iSSq', 10 i''9
burg lawyer of considerable distinc.
ton. He is partner, in professional
practice, of former Governor William
A. Stone, and the Prohibition nominee
for judge of the superior court. He
has been making most vigorous can
vass on the stump ever since the open
ing of the campaign, and challenges
the contradiction of the startling
charges he has made and reiterated a
dozen times.
State Funds For Penrose.
During speech delivered in the
court house in Harrisburg 'on the
evening of September 20, Mr.. Castle
stated that a bank near Pittsburg, of
which he was at the time director,
and for which he was solicitor, re-
eeived state deposit of 100000, un,
der an agreement that 10000 of the
amount would be loaned to Senator
Penrose. That was in 1897, and the
money was used by the senator in
paying the expenses of his first cleo
ton to that office. Mr.. Castle added
that the interest not having been paid
promptly the loan was called, and i'm
, mediately after it was paid the de-
post of the state was removed. Sena-
tor Penrose at first denied the state
ment, whereupon Mr.. Castle supported
| 1t by chain of evidence. and the SEN
ator admitted the principal point, but
asserted that 1t was purely a business
affair.
In a speech delivered in Greensburg
a few days later Mr. Castle charged
| that bank in Pittsburg had secured
| a state deposit of the amount of $780,
900 in consideration Of loan to for
| mer State Senator William II. An
| drews, now delegate in congress for
New Mexico of 5000. The note was
indorsed by Francis ]. Torrance, a
| Pittsburg politician, and secured by
| bonds of New Mexican railroad
! WHICH Andrews has constructed on
paper. Another Pittsburg bank had
| been offered the deposit on the same
| terms, but declined to make the loan
and failed to get the money Replying
| to the letter of the bank official, State
Treasurer Mathues wrote as fellows:
Il am of the opinion that there
are already too many repositories
in the west and too much of the
state funds are deposited there;
and at the present time | do not
feel disposed to increase the same.
II. however, | shall change my
mind will be pleased to take into
consideration the bank you are in
terested in.
every respectfully yours,
wv. l.. MATHuES,
"State Treasurer"
Soon afterward however, the money
was deposited in another bank, which
| loaned the money to Andrews.
This charge was vehemently denied
by Penrose, Andrews and the newspa-
per press supporting the Republican
candidate for state treasurer, Mr..
Plummer, and It's author denounced as
| a falsifier and defamcr.
The failure of that bank-the Enter
prise National, of Allegheny-onlyla last
| Wednesday. and the suicide of it's
cashier, confirmed every statement
| made By Mr.. Castle, and showed even
a worse condition of affairs-a more
reckless and vicious use of state funds
than he had intimated. 1t disclosed
the startling facts that the bank had
been supplied with s7S2 900 of the
funds belonging to the people of Penn.
sylvania-S50, 900 of which was de-
posted in it by the present machine
Af,t tlT do "
before it collapsed-that 100000 OF
this deposit was represented by
worthless bonds of 3 New Mexico rail-
road, projected anu c0ntrolled by
Bull" Andrews, former machine state
chairman. and was loaded with an ad'
ditiOnal $4,000 note signed by ma.
chine politicians who are striving for
the election of another machine state
treasurer, in the person Of J, Lee
Plummer.
Building Breweries With State Funds.
In a speech delivered at Titusville
on the evening Of October 10, Mr.. Cas-
tie declared that brewery had been
organized, built and brought 10 com,
pletion with state money taken from
banks favored with deposits In con-
sideration of such favors. This was an
Allegheny county enterprise, in which
William II. Andrews was also con-
ccrned. OF it Mr.. Castle said:
"A bunch of state politicians had
Themselves incorporated, and with
out dand or financial timber OF any
kind issued bonds. These bonds
were placed III bank, into which
q state deposit Mad been turned,
and with the proceeds they built a
brewery.
after a certain time their prop
efty was turned over to brewer
combine and the politicians pool,
eted the proceeds
At another meeting Mr.. Caste told
OF the organization N q bank u Pitts
burg. the principal assets of wien was
state deposit. Il was clled the
Mortgage Banking company, tnd JehR
/. Shaw, WHO was endorse on the
Penrose noe in ti.e Turtle Geek bank,
was made president. He dad only a
nominal interest In the Enk, but en-
joyed a strong pull on tie sta,s Treas
,lFy surplus. State TsasHfer Harris
and Aaditor General FaraehDurg. both
in commission at the ''hie, each held
100 shares of the bar s'ock, and Har-
ris became direct IN the concern.