Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-10-19
Furnished Nest Of Funds to Float
Santa Fc Central and Pennsyl.
vauia Development Co
STATE WILL LOSE NOTHING
Bank Examiner Hard at Work but
Not Prepared to Make
Statement

Pittsburg oct, 1o-The invest CATION
Of the affairs Of the Enterprise Nation
al bank, Allegheny city Pa, is maxi
ing good progress. Far into last night
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 IA large clerical force, la
bored steadily IN an effort TO unrayel
the extent Of the banks financial en-
barrassmcnt, The developments follow.
Ing the tragedy ana the closing Of the
bank have been startling, involving as
they do, the names Of several promi-
nent citizens who have been active IN
state politics.
According to President Gwinner, tn.
bank, through Cashier Clarke, has fur.
nIshed most Of the funds used Ia hoa /,
the Santa Zee Central railroad and tbs
Pennsylvania Development company. I'm
which former state Senators W. Il.
Andrews and Arthur Kennedy and
Francis j, Torrance We're deeply inter-
estcd together with Cashier Clarke.
The two projects are allied ones. For
mer Senator Arthur Kennedy Is pres.
ident Of the Development company an.
former Senator w II. Andrews Is pres
ident of the other Francis l.. Torrance
is heavily interested I'm both concerns
and his confidential man, w G.. Ha-
gan is secretary Of both companies 4.
Lee Clarke, the dead cashier of the En-
terprisc, was treasurer Of both compan-
les, and the bank was the custodiau
Of their bonds which were held as se-
Curity for the loans Personal notes
If tho % Bl. q tt Ita
among the additional securities fur
nishod the bank.
Former Senator Andrews denies The
statement of President lwinner AMI
says he never got q cent from the bank.
Mr.. Torrance is III and Secy. Hagan,
speaking for him, also denied that he
had been a borrower Former Senator
Kennedy IS en- route to this city and IS
expected some time today Upon reach
ing here a meeting Of the directors Will
be called ana il IL said complete state
ment Of the condition Of the companies
| connected with the bank will be made.
Since the closing Of the bank II has de-
veloped that the United States govern
ment ana state officers have been hl
pittsburg within the last few weeks
looking into the affairs OF the lnstitu-
ton and particularly, it was said To
make an investigation of the Statement,
recently made by Homer l.. Castle Pro-
hibitiOn candidate for supreme judge,
relative 10 the accepting Of money from
the state with the understanding that
certain politicians would have the bene-
fit of loans
W h. Ridgely, comptroller of the cur
rency, was In Pittsburg two weeks ago,
and last week John a. Berkey state
! commissioner of banking, and John w.
Morrison, deputy commissioner Of
banking spent several days In this
city. Berkey left Pittsburg last Thurs
day and Morrison departed Friday.
They are said TO have had conferences
with several Republican politicians.
II is said that the state will lose
nothing by the closing Of the Enter
prise National bank as the state funds
are insured by indemnity bonds fur
nished me state treasurer by the III
rectors Of the bank. the Mercnptie
Trust company Of Pittsburg ANA the
United States Fidelity a. Guarantee
company of Baltimore.
National Bank Examiner Cunning
ham when seen today said II WAS too
early for him TO be able to say auy-
thing as to the banks condition, lie
said from the last report OF the books.
the bank had o large number OF small
depositors, The solvency or Insolvency
of the bank Mr., Cunningham declared.
could only be determined after the
books had been closed mp ana the bal
auces taken of II would also depend
| somewhat on the nature Of tho sccuh-
ties that were held ny the bank for the
| loans II had made.