Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-10-20
Involved in the Allegheny
City Bank Failure.
Searching Investigation Shows
Money Loaned Politicians.
With Little Securiiy---Amount of State Funds
a Matter of Doubt.

Pittsburg. Oct. 19.-Thc invcstiga-
lion of the affairs of the Enterprise
National Bank. Of Beaver avenue,
Allegheny City. Pa. the doors of which
were closed. yesterday afternoon, by
the COMPTROLLER of the currency. fol-
lowing the sensational suicide of s. 7.
Lee Clark. the cashier, is making good
progress. Far into, last night. and the
early hours of today, John B. Cum
ningham. national bank examiner, who
was appointed receiver of tho inStitu-
ton. pending his investigation. assisted
by a large clerical force, laborcd stead
lily in an effort to unravcl the extent of
the banks financial embarrassment.
The developments following the trag-
cdy and the closing Of the bank have
been startling, involving as they do.
the names of several prominent citi-
ZcnS who have been active in state
politics.
According to the statement Of Prcsi-
dent Gwynncr the bank, through
Cashier Clark. has furnished most of
the funds used to float the Santa Fc
Central Railway and the Pcnnsylva-
MIA Development Co. in which
former State Senator w. FL. andre
and Arthur Kennedy and Francis J.
Torrance were deeply interested, to-
gcther with Cashier Clark.
The two projects are allied ones
Former Senator Arthur Kennedy is
president of the Development Co. and
former Senator W. II. Andrews is
president of the railway. Francis J.
Torrance is heavily Interested in beth
concerns and his confidential man, w
&. Hagan, is secretary of both com-
panicS.
Mr. Clark, the dead cashier of the
Enterprise was treasurer of both COM
panies, and the bank was the custo-
dian of their bonds which were held
as security for the loans. Personal
notes of the promoters arc also re-
ported to be among III" additional Sc
curty furnished tn" bank.
Former Senator Andrews denies the
statement Of President GWinncr and
SAYS he never got a cent from the
bank. Mr.. Torrance is ill. and Sec
Ilagan. speaking for him, also denied
that he had been Il borrower. Former
Senator Kennedy is en- route to this
city. and is expected. today. Upon
reaching here meeting of the drcc-
tors will be called and it is said q
complete statement of the conditions
of the companies with the bank will
be made. Since the closing Of the
bank. il has developed that United
States government and state officers
have been in PittSburg within the last
few weeks looking into the affairs Of
the institution and particularly it was
said to make an investigation of the
statement recently made by Homer l..
Castle. Prohibition candidate for Su-
prcme judge. relative to the accepting
Of money from the state with the I'M
would have the benefit Of loans
1t is said that the stat" will lose
nothing by the closing Of the Enter
dcrstandinG that certain politicians
prise National as the state funds are
fully protected by indemnity bonds
furnished the state treasurer by the
directors of the bank. the Mercantile
Trust Co. Of Pittsburg and the
United States Fidelity and Guaranty
Co. of Baltimore.
National Bank Examiner John q.
Cunningham. this morning, said ii was
too early for him to be able to say
anything as to the bank condition.
particularly as to the solvency or in
SOlvcncy.