The daily morning journal and courier., 1905-07-15
BANK OFFICIALS ARE
 SEVERELY ARRAIGBED
SERIOUS CHARGES AGAINST DI- RE0ToRS OF CENTRAL NA-
 TIONAL OF BOSTON

Receiver Brings Civil Action in At-
 tempt to Recover Thousands of DoI-
 lars Lost Through Neglect and In-
 competent SIanugement---A Charge
 That They WilfulIy Falsifed Their
 Reports to the Comptroller of the
 Currency --PresIdent of Institution
 Received Personal Bonuses From
 Firms Accommodated by Loans and
 Extension of Time.
 Boston, July 14-CiMI action was brought in the United States circuit court to-day by Frank D. Allen, re- ceiver, against the entire board of di- rectors Of the Central National bank. which failed November IS, 1902, with liabilities of over sS.0oO.0Oo. MT. Allen asked the court that an account by talk en, under direction of the court, of all the losses sustained by the bank, it's stockholders and creditors, bu reason of incompetent management. and that the officers of the bank or such of them as may be found liablv Tor the losses be deoreed to restore to the bank the money thus lost
 The document srbnntted by MT. AL len in support of his case are voIumin- ous and, in them he severely arTaigna the bank officials.
 The suits are for the purpose Of ee~ curing for the stockholders and credit- ors an amount estimated at between $3Oo,OoO and s5oO.OOO, which represents the sum MT. Allen was unable to col- f feet on poor notes.
 One of the most serious charges made against the directors is that they wil- fully falsi1ed their reports of the con- dition Of the bank to the comptroller oG the currency and procured J. Adams Brown, the cashier of the bank to bid l up the stock of the bank at public sale and to buy 1t in with the funds of the bank if 1t dAd not go high enough, in order that no reflection should be case on the credit or solvency of tn institu- tion in the minds of the publci.
 The directors were from time to time severely criticised by the comptroller of the currency, according to MT Allen. flor certain loans they had made. ana E in letter to WhicR he refers fi1eT Would make amends, while, as a mat lter of fact, they were constantly add ling to these objectionable loans, and told him that certain loan was paid. when the books showed that at the time of the failure there were several thousands still due it.
 Otis H. Luke, president of the bank, 1 is accused by MT. Allen of accepting personal bonuses from firms accommo- dated at the bank, either by extension Eof time or by continuing loans or over- drafts. The receiver says that over fva thousand dollars was paid to the bank president in this manner.
 Neglecting their duties, MT. Allen aa- ileges, the directors permitted Luke largely to control and manage the af- fairs of the bank, to loan its funds without security to himself and to oth- CT members of his family, to friends land to clerks of the bank, for his ben- left, and also to other persons known to Luke and to the directors to be ner- sons of title or no financial responsibil- ity, which loans were approved by the directors without further inquiry onex~ amination; that the directors permitted tfunds of the bank to be loaned by Luke to HoWard L. Porter, with whom he was engaged in business, the loan be- ling made without any security. MT. Allen further alleges that by reason of the conduct of Luke, suffered and per- lnlitted by the directors through neg lect of their duty, and their failure to correct known abuses in the manages iment of the bank and in the conduct of it's affairs by the president, losses were sustained by the bank, and for those losses he seeks to hold the directors liz | liable.
 I The men named by MT. Allen in his bill of complaint are: Otis H Luke oa Brookline, who was president Of the
 bank; Charles A Allen. president of the Home Savings bank; David Isorirlg. a Boston note broker; Edward P. Ma son of the Mason & Hamlin company l Boston; Howard Y. Porter, a shos
 n1anufacturer in Haverhil; Moses ". IsRichardson, a retired capitalist, and
 Edmund H. Talbot and Warren B. F. i Weeks, executors of the estate of the
 late Andrew c. Weeks, who was I member of the board of directors with
 the others named in the bill. l The bank, which began business ir 1873 with a capital of $6O0,OO0. failed Nov. IS, 1899. The liabilities were s. I 104,3S6 with nominal assets, exclusive
 of capital stock, of $3, 4S9, ,911.
 T l : W