Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-10-20
PROBING BANKS AFFAIRS
CLARK of Allegheny Was Promoter of
Railroad and Industrial Concerns.
DIRECTORS DECEIVED ABOUT LOANS
state Suca OmcIaIs on Their Bonds
for DepOsits-NOtes of Politicians
Discounted for Large
Amounts.

bank, which was closed by the comptroller
OF the currency yesterday, shows beyond Il
doubt that the institution was conducted in
a manner entirely unknown to the direc-
tors.
From a representative of the bank It is
learned that since the investigation started
papers and notes have been brought to the
attention of the directors which they never
saw before. Among these papers are two
notes bearing the name of w. II. Andrews,
who today stated positively that he had no
paper in the bank Bank Examiner Gun
nngham, who is in charge Of the institu-
ton. would say nothing concerning this
statement, but the source OF the informa-
ton is thoroughly reliable.
The statement made today by the officials
Of the Santa Fe Central railway and the
Pennsylvania Development company. on
behalf Of which the dead cashier is said to
have negotiated loans, would seem to place
all the blame on Clark. who, so far rs
known, left no explanation OF the banks
relations with the two companies.
Expect to Reopen Bank.
The directors speak hopefully of restor-
ing the bank to solvency and resuming
business I'm about six weeks. pointing to
promises made by those charged with get
ting money on notes to make good the
Mr.. Clark's estate will amount to some
s5OOO 900 or s6OO,OOO, but in this they seem to
be hoping against hope. Whatever there is
Of IL will be used In Strengthening out the
banks affairs
The amount of the state money supposed
TO be in the bank will probably reach $7S2,
600. but the exact amount will not be known
for some days yet. The state today entered
a judgment against the bank directors on
their individual bonds to secure it's deposit.
These securities can be collected at once.
! Statement of President Dwynner.
| According to the statements OF President
/ Dwynner, the bank, through Cashier Clark.
/ has furnished most of the funds used to
! float the Santa Fe Central railway and
| the Pennsylvania Development company in
! which Former State Senators w. II.
Andrews and Arthur Kennedy. and Francis
]. Torrence., were deeply interested to-
gether with Cashier Clark The two pro-
jects are allied ones. Former Senator
Kennedy is president of the development
company and Former Senator w. II.
Andrews is president of the railway.
| Francis j. Terrence is heavily Interested
in both concerns and his confidential man.
w. c. Hagen. is secretary Of both com
paliies T. Lee Clark, the dead cashier
of the Enterprise. was treasurer of both
companies. and the bank was the custodian
OF their bonds which were held as security
7 for the loans. Personal notes OF the
promoters are also reported 10 be among
the additional security furnished to the
bank.
Former Senator Andrews denies the
statement Of President Gwynner and says
he never got a cent from the bank Mr..
Terrence is i'll and Secretary Hagin, speak
IL, nIg cd hn \
a borrower Former Senator Kennedy is
en- route 10 this city and is expected some
time today. Upon reaching here meeting
of the directors will be called and 1t Is
said complete statement of the connec-
ton of the companies with the bank will
be made.
Political Scandal Threatened.
Since the closing of the bank It has de-
veloped 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, 1t was
said to make an investigation 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 certain politicians would have the
benefit of loans.
w. B. Ridgeley, comptroller of the cur
rency, 1t was learned, was in PittsburG
two weeks ago, having stopped at the
Duduesne club. Last week John A
! Berkey. state commissioner of banking
. and John w. Morrison, deputy commits
sioner Of banking, spent several days ir
this city. having registered at the Hote
) Henry Berkey left Pittsburg last Thurs
day and Morrison departed Friday. They
are said to have had conferences with sew
eral republican politicians.
An inquiry is being made into Cashier
Clark's personal affairs. He was estimated
! TO have been worth 100000. but his friends
: saw that he sank all his assets in an at
, tempt TO reimburse the bank and that his
, suicide followed his failure to stem the tide
! They declare he was ruined by bushes;
associates and that it will be found he is q
defaulter.
Company Makes Statement.
. At the conclusion of a special meeting
> this afternoon of the Santa Fe Centra
. Railway company and the Pennsylvania
Development company, on behalf of whicl
concerns the late T. Lee Clark, is said t.
have negotiated loans, the officials CAV,
out the following statement:
. The Santa Fe Central Railway COMPANY
I was built by the Pennsylvania Develop
n ment company and eompiesed about tw,
: / about 10 miles, connecting the Denver
4 Rio Grande, the Santa Fe system and tn
e Rock Island system. This road is In gooC
N l condition and earning much more thai
. ( operating expenses and the earnings ar
u steadily increasing.
Z W. n. Andrews is president of the rail
road company, Arthur Kennedy presiden
of the Pennsy lvania Development company
J. Francis j. Torrance vice president OF bot
4 companies and W. c. Hagan secretary o
. both companies Mr.. Clark was treasure
% OF both companies and had custody of thei
y securities. The railroad company has n
a notes out We are not aware of any note
/, of the Pennsylvania Development cOmpan
J. in the Enterprise National bank and th
n company has no record of such. IT. how
ever Mr.. Clark used any notes OF this com
pany In his bank they will be paid
= According to Mt. Cunningham. the book
: / are in a badly mudded shape and Il wi
take some time before a statement can b
"a given to the public. as It will take day
OF work on the books before they can b
Strengthened.
state brings suit.
, The commonwealth OF Pennsylvania, /
behalf OF the state treasury department
o has entered judgment in common plea
= court No . for $4,000 on four bonds az
II gregating that amount against the Enter
le prise National bank and the suretles on n
bonds. who are as follows: Frederic
u Gwynner James p. Mckinney Charles I
Sc Stifel, Henry Landgrun. William T. Brac
T. bury. John Selling Frank b. Smith, Davi
n, | Morrison A1frad Ehvyard II