Arizona republican., 1905-10-20
.DeIving Into Debris of En-
 terpTiSe National
DENIAL OF POLITICIANS
That They Bled the Bank to Death. On the Other Hand it is Claimed That its Assets Went into New Hex iCo Enterprises.

PittSburg. Oct. 19.-Ihe investigation of the affairs of the Enterprise Ma , tionaI bank, Allegheny City, Penn. is making good progress. Far into last
 night and early hours 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 banks financial embar- rassment. Developments following the tragedy and the closing of the bank have been startling, involving as they do the names of several prominent cit izens, who nave been active in state
 politics.
 l According to President Gwinner the bank through Cashier Clark has fur nished most of the funds used to float 1 the Santa Fe Central railroad and the l Pennsylvania Development company
 in which former State Senators w. II. , Andrews and Arthur Kennedy and Francis J. Torrance were deeply inter ested together with Cashier Clark. 1 The two projects are allied ones.
 Former Senator Arthur Kennedy is
 president of the development company | and former Senator w. H. Andrews is president of the other. Francis J. Tor france is heavily interested in both con ICerns and his confidential man, w. C. l Hagan, is the secretary of both compa- 1 nies. T. Lee Clark, the dead cashier of i the Enterprise was treasurer of both l companies. and the bank was the GUS Itodian of their bonds which were held | as security for the loans. The personal notes of the promoters '-e also re- ported to be among the additional se- Icurities furnished the bank. Former ! Senator Andrews denies the statement nf PYaGf6Hnt a, nd I,e ! CT got q cent from the bank. MT. Tor
 rance is i'll and Secretary Hagan, | speaking for him, also denied that he ihad been a borrower. Former Senator 1 Kennedy is enrOUte to this city and is i expected sometime today.
 | Upon reaching here. Q meeting of the ] directors will be called and it is said
 a complete statement of the condition ! of the companies connected with the bank will be made. Since the closing i of the bank. it has developed that the ] United States government and state
 officers have been in Pittsburg within 1 the last few weeks, looking into the
 affairs of the institution and particu- larly. 1t was said, to make an investiga- | ton of a statement recently made by l Homer L. Castle prohibition candidate , for supreme judge, relative to the ac- | icepting of money from the state vita i the understanding that certain poli- i iticians would have benefit of the loans ] An inquiry is being made into Cash fer Clarks personal affairs. He was 1 estimated to have been worth $30O,0 900 | but his freinds say that he sank all his assets in an attempt 10 reimburse the | bank and that his suicide followed his ! failure to stem the tide. They declare ! he was ruined by his business assocf- ates and that it will be found he is a 1 defaulter
 At the conclusion Of a special meet | ing this afternoon of the Santa Fe ! Central Railway company and Penn | sylVania Development company on be- | half of which concerns the late T. Lee 1 Clark is said to have negotiated loans. the officials gave out the following l statement: "The Santa Fe Central | railway was built by the Pennsylvania | Development company and was com i pleted about two years ago. This road l is in good condition and earning much 1 more than operating expenses and the | earnings are steadily increasing. The railroad company has no notes out. ! We are not aware of any notes of the i Pennsylvania Development company in ] the Enterprise National Bank and the company has no record of such. If, however, MT. Clark used any notes : of this company in the bank, they will l be paid"
 According to Mir. Cunningham, the books are in a badly muddled shape
 and it will take some time before a statement can be given to the public,
 as it will take days of work before they can be strengthened out.
 Commenting upon MT. Andrews de-
 nial that he had received any of the banks money, Homer L. Castle, pro- hibition candidate for supreme judge, , said: "If Wm. II. Andrews asserts that he never received a penny from 1 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 unquali- fled falsehood. I can furnish convinc- ing proof if required that MT. Andrews has received money from not only this
 institution, but from other banks. I | cannot say that his loans aggregated ! such a large sum as has been reported, but I do know and am prepared to | prove that his name is on a note at ! the Enterprise Bank for $20O,000. The
 note was indorsed by Francis J. Tor ! rance and Arthur Kennedy, and the loan was gained through Mir. Andrews | pull. which insured the bank a state deposit"
 Continuing he said: "I believe that
 I have information sufficient to show that certain state officers lent direct assistance to the men who secured l large loans in the Enterprise bank ! upon collateral which has no known
 value. Tomorrow night speak at Milton Pa, and at that time l shall
 take occasion to make public some in
 formation which has come to me along
 these lines"
 The commonwealth of Pennsylvania
 in behalf or the state treasury depart
 ment has entered judgment in common i pleas court No. for $2,5OO,OOO on four