The Montgomery advertiser., 1905-10-20
Castle Replies to State
 mcnt of Andrews.
COLLATERAL OF NO VALUE
Scandal Follows Closing Of
 Allegheny Bank.
Senator Penrose Says He Knows Noth- ing of the Affairs of the Bsnk, and Governor Pennyp.cker
 Also h Ignorant.


 of affairs of the Enterprise National Bank of Beaver Avenue, Allegheny City, Pa., whose doors were closed yes- terday afternoon by the Comptroller of the Currency following the sensa- tional suicide of T. Lee Clark. the cashier. Is making good progress.
 Far into late last night and the early hours of today. John B. Cunning ham, National Bank Examiner, who was appointed receiver of the insti- tuition pending his investigation. assist ed by a large clerical force. labored steadily in an effort to unravel the ex- tent of the banks financial embarrass- ment.
 According to the statements of Pres iden Gwynner, the bank, through Cash fer Clark, has furnished most of the funds used to float the Santa Fe Gen. tral Railway and the Pennsylvania De- velopment Company, in which former State Senators W. H. Andrews and Arr thur Kennedy and Francis J. Torrance were deeply interested with Cashier Clark.
 The two projects are allied ones. For mer Senator Arthur Kennedy is Pres ident of the Development Company. and former Senator Andrews is Presi- dent of the railway.
 Francis J. Torrance Is heavily in- terested in both concerns and his con- fidentiai man, w. c. Hagan, is Secre- tary of both companies. T. Lee Clark. the dead cashier of the Enterprise bank was Treasurer of both companies and the bank was the custodian of their bonds, which were held as secu- rity for the loans Personal notes of the promoters are. also reported to be among the additional security furnish- ed the bank.
 Andrews Denies Ii All.
 Former Senator Andrews denies the statement of President Gwynner and says he never got a. cent from the bank MT. Torrance Is i'll and Secre- tary Hagan. speaking for him. also de- nfed that he had v been a borrower. Former Senator Kennedy Is en route to this city and Is expected sometime today,
 Upon reaching here a meeting Of the directors vii be called and it is said a cor,plete statement of the connactfon of companies with the bank will be made.
 Since the closing of the bank it has developed that the United States gov ernIaent and State officers have been in Pittsburg within the past few weeks looking Unto the affairs of the institu- ton and particularly, it was said, to maks an investigation of the statement made by Toner L. castle, pro hibition csrdidate for Supreme Judge. to the accepting of money from the Stats with the understanding that certain politicians would have the benefit of lcsrs.
 W. R Ridgeley. comptroller of the currency. it was learned, was in Pitts burg two weeks ago. having stopped at the Duquesne Club. Last week John \. Barkey. State Commissioner of Bank Ing md John W. Morrison. deputy com missioner of banking. spent several lays in this city. having registered at the Hotel Henry Barkey left Pitts burg lest Thursday and Morrison de- parted Friday. They are said to have had conferences with several Republi- "a EpcIitic'ars.
 At the conclusion of the special meet Ing this afternoon of the Santa Fe Gen. tral Railroad Company and the Penn sylvania Development Company. on be- half of which concerns the late T. Lee Clark is said to have negotiated loans, the officials gave out a statement. The statement says Mir. Clark was the treasurer of both companies and had custody of their securities. The rail- road company, according to the state ment, has no notes out. The officials of the company say they are not aware of any notes of the Pennsylvania De- velopment Company In the Enterprise Bank and the company has no record of such, that If Mir. Clark used any notes of the company fin the bank, they may be paid.
 Castle is Emphatic.
 Commenting upon MT. Andrews's de- ,iaI that he had received any of the ,ank's money, Homer [. Castle, the candidate for Superior Court said:
 'Tf w H. Andrews asserts that he lever received a penny from the de- unct Enterprise National Bank and L f r. 1lAm Af 'er for a loan secured from that in- titution. he Is guilty of an undualI- led faIsehood I can furnish convinc- nR proof if required. that Mir. An rews has received money, not from he Enterprise bank alone, but from ther institutions in this neighbor- ood.
 q cannot say whether or not his pans from the Enterprise bank aggre- ate so large a sum as $40O,000, as as been reported, but do know and m prepared to prove. that his name on a note at that bank for $2o0,000. he note was indorsed by Francis J. orrance and Arthur Kennedy and the ,an was gained through Mir An rews's pull. which insured the bank State deposit"
 Continuing he said:
 T believe that I have information ifiicient to show certain State officers mt direct assistance to the man who ,cured large loans in the Enterprise ank upon collateral which has no nown value"