The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-10-19
TRAFFIC IN
STATE FUNDS,
Failed Allegheny Bank Held a
Million Dollars
OF the Public Funds of
Pennsylvania.
POLITICIANS GOT IT.
100000 Loaned TO Political
Friends Of Cashier.
Threatened Exposure Led to
Crash and Suicide.

and the early hours of today John B.
Cunningham, National bank examiner
who was appointed receiver of the in
stitution pending his investigation as
sisted by a large clerical force, labor
ed steadily in an effort to unravel the
extent of the hanks financial embar-
rassment. The developments following
the tragedy and the closing Of the
bank have been startling, involving as
they do the names of several promin-
Rent citizens who have been active in
state politics.
According to President Gwynner, the
bank. through Cashier Clark has fur
nished most of the funds used to float
the santa Fe Central railway and the
Pennsylvania Development company
in which former State Senators W. H.
Andrews and Arthur Kennedy, and
Francis }. Torrance were deeply in
terested together with Cashier Clark.
The two projects are allied ones.
Former Senator Arthur Kennedy is
president Of the Development company
and former Senator ". H. Andrews is
president Of the other. Francis J Tor
rance is heavily interested in both
concerns and his confidential man, "
Q. Hagan. is secretary of both CONF
panies. T. Lee Clark, the dead cash
Ter of the Enterprise was treasurer of
both companies and the bank was the
custodian of their bonds which were
held as security for the loans. Per
sonal notes of the promoters are also
reported to be among the additional
security furnished the bank.
Denials Are Made.
Former Senator Andrews denies the
statement of President GwynneF and
says he never got a cent from the bank.
Mr.. Torrance is i'll and Secretary Hagan.
speaking for him, also denied that he
had been a borrower. Former Senator
kennedy is en- route to this Nity and is
expected some time today. Upon reach
ing here a meeting of the directors will
be called and it is said complete state
ment of the conditions of the companies
connected with the bank will be made.
Since the closing of the bank it has de-
veiOped that United states government
and state officers have been in Pitts
burg within the last few weeks. looking
into the affairs of the institution and
particularly il was said, to make IN in
vestigation of the statement recently
made by Homer L Castle. Prohibition
candidate for supreme judge. relative
to the accepting of money from the
state with the understanding that Ger
tain politicians would have the benefit
of loans
W. B. Ridgely, comptroller of the cur
rency, was in Pittsburg two weeks ago
and last week Ioln A. Berkey, state
tOllllilAeSlOAlEI OL BdAiklllS. ana JOLl W q
Morrison, deputy commissioner of bank
ing, spent several days in this city.
Berkey left Pittsburg last Thursday
and Morrison departed Friday. They
are said to have had conferences with
several Republican politicians
State Is Protected.
1t is said that the state will lose
nothing by the closing of the Enter
prise National bank. as the state
funds are fully protected by bonds
men. The funds on deposit in the in
stftution are insured by Indemnity
bonds furnished the state treasurer
by the directors of the bank, the Mer-
camille Trust company of Pittsburg
and the United States Fidelity and
Guarantee company of Baltimore.
National Bank Examiner Cunning
ham when seen today said it was too
early for him to be able to say any
thing as to the banks condition. AS
to the notes that We're held by the
bank Mr.. Cunningham would say
nothing. He said that it was too soon
and that his accountants had not got
to them yet. He said from the last
report of the books, the bank had a
large number of small depositors; just
how many he was unable to state.
The solvency or insolvency of the bank
was another thing that Mr. Cunning
ham declared il was too early to talk
bout. This was a matter that could
only be determined after the books of
the bank had been closed up and the
balances taken of. It would also de-
pend somewhat on the nature of the
securities that were held by the bank
for the loans it had made
Loaned to Politicians.
New York, Sept. 19.-ConceFning the
closing Of the Enterprise National
bank OF Allegheny and the suicide of
its cashier, Z. Lee Clark yesterday, a
dispatch to the Herald from Pitts
II was learned late Wednesday night
that the dispatch to the Enterprise
bank was expected in certain quarters.
Plans for an exposure of the tradiek-
ing in state funds. it is said. were laid
weeks ago. Mr. Clark was cognizant
of this, and talked over the matter
with several of the directors. The
cashier was told he would have to
meet the paper obligations of the in
stitution negotiated through him. The
supposition is he was unable to ac-
complish this and. fearing the conse-
quences, took his life
Although bank directors acknOWl-
edge having only 100000 of the state
funds, the assertion was made by one
of the bank officials that the Enter
prise had more than $4,000 coo state
money on deposit before the extensive
loans We're made.
Clark was associated as treasurer
with former State Senator ". H. AN
drews and Francis J. Torrance who
according to President Gwgnner, were
| borrowers of the bank in the Santa Fe
Central railway company, incorpo-
rated in New Mexico I'm 1891 The
stock of the corporation has never
been marketed. This road was built
by Messrs. Andrews and Torrance
Cashier Clark was also. a heavy in
weston in Mexico and New Mexico sill
yer mining stocks. according to Mr.
Gwynner. Former State Senator An
dreEys is a brother of Wesley r. An
! drews. United States Senator Penrose's
private secretary and chairman of the
Republican state committee
Exact Amount Unknown.
Harrisburg. Pa. Oct. 19=The ex-
act amount Of state money carried