Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-20
BANK DIRECTORS IN THE DARK.
Dead Cashier Blamed for Wreck of the
Institution.

Investigation into the condition of the
Enterprise National Bank. at Allegheny
City, which was closed by the controller of
the currency, has shown beyond doubt that
the institution was conducted in a manner
entirely unknown to the directors.
From a representative of the bank 1t is
learned that since the investigation start
ed paper and notes have been brought to
the attention Of the directors which they
never saw before. Among the papers are
two notes bearing the names of w. H. An
drews, who has stated positively that he
had no paper in the bank Bank Examiner
Cunningham who Is in charge of the in
stitution. would say nothing concerning this
statement, but the source of the informal
ton is thoroughly reliable.
statement published yesterday by the
officials of the Santa Fe Central Railway
and the Pennsylvania Development Com
pany, on behalf of which the dead cashier
is said to have negotiated loans, would
seem to place all the blame on Clarke, who,
SO far as known, left no explanation of the
bank $ relations with the two companies.
Supplementary statements by the signers
of the statement and their attorneys show
that they take the position that Mr.. Clark
was the seal agent of their companies and
that as such 1t was his duty to look after
funds and raise money when necessary.
The directors speak hopefully of restor-
Ing the bank to Solvency and resuming
business in month or six weeks, pointing
to promises made by those charged with
getting money on notes to make good the
amount They also express the hope that
Mr. Clark's estimate will amount to some
100000 or S600,000 but in this they seem
to be hoping against hope. Whatever there
is of 1t will be used in Strengthening out
the banks affairs.
The amount of state money supposed to
be in the bank will probably reach S7S2 900,
but the exact amount will not be known
emf cd
judgment against the bank directors on
their individual bonds to secure it's deposit.
These securities can be collected at once.
That the directors of the ENTERPRISE Ma
tional Bank have knowledge that the bank
had among its papers a note signed by
Senator Boies Penrose was admitted by
Director William A. Selling.
According to Mr.. Selling, the revelations
that are to follow will be the most sensa-
tional probably that have come from the
affairs of any bank in Pennsylvania.
I'VE learned some time ago-I do not re-
call the exact time-that the bank had a
note signed by Senator Penrose. This was
about the time that Homer Castle, prohibit
ton cand date for superior court judge,
made stateme IS about the state deposit
tories and the loans that were being Sc
cured by politicians. We started to inves-
tgate at once.
I'VE asked Cashier Clark whether he had
made loan TO Senator Penrose. He de-
MED that he had. We asked him about the
denied that Also
DO you believe that the bank has no
note sigred by Penrose?' was asked.
We'll, We are not positive Clark denied
that, but he also denied a good many other
things that We have since found to be cor
rect
Commenting upon Mr.. Andrews denial
that he had received any of the bank s
money Homer l.. Castle, the prohibition
candidate for superior court, said:
IF William H. Andrews asserts that he
never received a penny from the defunct
Enterprise National Bank and that his
name does not appear on paper for a loan
secured from that institution he is guilty
of an unqualified falsehood. l can furnish
convincing proof, If required, that Mr. An
drews has received money, not from the
Enterprise Bank alone, but from other in
situations in this neighborhood l cannot
say whether or not his loans from the En-
terprise aggregated so large a sum as $780,
900, as has been reported, but l do know
and am prepared to prove that his name
is on note at that bank for 100000. The
note was Endorsed by Francis j. Torrance
and Arthur Kennedy and the loan was
gained through Mr.. Andrews pull which
insured the bank a state deposit"