Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-27
APPLEYARD'S TROUBLE.
Investigation Of the Wrecked
Buffalo Bank.
CONNECTED WITH IT.
INSTITUTION COULD HAVE BEEN
SAVED By CLEARING HOUSE.
Financiers for a While Had Control Of
Traders National Here
His Career.

The affairs of the wrecked German Bank
of Buffalo, are still undergoing an investi-
cation. Last spring the control of this bank
was secured by Arthur e. Appleyard OF
Boston, who was largely interested In trac-
ton companies in Ohio. A local interest Is
given to the affairs of Mr.. Appleyard from
the fact that last summer and fall he Sc
cured control of the Traders and Citizens
Banks of this city. In the course OF re"
weeks his interests In these two institutions
were acquired by local men, and Mr.. Apple
yard and his associates Mr.. jerks and MI.
Appleton, were entirely eliminated from
any connection with these banks or with
any other local concern.
The situation in regard to the German
Bank in Buffalo is by no means cleared up.
Suits have been begun against the directors
TO compel them to make good all the money,
estimated to amount to $762, 600, lost to the
depositors. A list Of the Appleyard loans
in the German Bank. as printed in the Bos,
ton Traveller, shows that the collateral
used was mainly bonds of traction roads
in Ohio In which Appleyard is said to be
interested.
aside from this Appleyard paper it devel-
oped that before the Boston promoter be-
came a controlling factor in the bank over
500 600 of bad paper had been accepted py
ed that beyond this there was more than
$15ODOO additional which was practically
valueless. The state bank examiner at
once began an investigation of the German
Bank and a receiver was appointed.
Clearing House Statement.
President E. A. McDougal of the Buffalo
clearing house has issued a statement con-
corning the German Bank, in which he Sc
verely criticises the officers who controlled
the institution before the advent of Apple
yard. He says that If the Appleyard loans
were the only bad paper in the bank the
clearing house would have saved IT,
Arthur E. Appleyard," according to the
Boston Traveller, has a suite of offices at
so State street, Boston, which he has maze
the Headquarters of his operations in the
east. He has been more or less known IN
financial circles here for the last ten years
as an electric road promoter and financ1er.
He has been recognized as man of high
ability in the construction OF roads. some
years ago he was employed by Tucker, An
thony & Co. of this city as a contractor,
to build certain sections of a street car line
for them between Springfield and Zanes-
vile, Ohio, which was closed up over two
years ago, but he had no connection. in any
other capacity with any of the properties OF
the firm, nor have they any interest in any
of his schemes. He took the contract for
the first section of the road, and carried out
the work in a most satisfactory shape
LdteT he dCCCepltu inc SohtAaSS AoA ~
second section, but had some financial diff
culties in connection with this work, and
it became necessary for Tucker, Anthony
& Co. to step in and pay the bills incurred
and complete the work. He never had any
stock in any Of the Tucker-Anthony prop
critics.
"It is believed that some money has been
raised in this city to finance his Ohio ven
lures, but very little is known here about
the details Of these roads. The center Of
his operations was Columbus Ohio. He
built a line between that city and Spring.
field; then the road was extended from
Springfield to Belfontaine on the north. 1t
was proposed to build the line eventually
into Toledo. South of Columbus another
line was built to Lebanon, with the idea of
ultimately extending 1t to Cincinnati. All
Of these roads are now In the hands of
receivers. Myron H. Wilson, secretary Of
the Columbus Trust Company, and Joseph
Schmidtlapp Of Cincinnati, are the receiv-
ers. 1t is understood that the roads have
an unsecured debt of 81 400, 600 an addition
to their bonded Indebtedness and other very
large floating debts.
Tried to Buy Bank.
'In January. 1903. Appleyard attracted
some attention in Boston by attempting
to buy control Of the First National Bank,
one of the oldest banks in Boston. He
secured an option on the stock of this
bank, at prices ranging from s225 to $3.50
a share and posted forfeit Of $250,OOO to
carry through the deal