The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-20
n ITTsBURG, oct 19.-The investiga

n ITTSBURG, Oct 19.-The investiga-
ton of the affairs of the Enter
prise National bank, Allegheny
City, Pa. is making good progress. Far
into last night and the early hours Of
today John b. Cunningham, national
bank examiner, who was appointed re-
ceiVer OF the institution pending his in
assisted by Il large clerical
force. labored steadily III an effort 10
unravel the extent of the banks imam
cial embarrassment. The develop
ments following the tragedy and the
closing of the bank have been start
ling, involving, as they do, the names
of several prominent citizens who have
been active in state politics.
According TO President GWinner, the
bank. through Cashier Clarke, has
furnished most of the funds used TO
float the Santa Fe Central railroad and
the Pennsylvania Development COM
pany, in which former State Senators
". II. Andrews and Arthur Kennedy
and Francis J. Torrance were deeply
together with Cashier
Clarke
Projects Were Allied.
The two projects are allied ones. For
mer Senator Arthur Kennedy is presi-
dent of the development company and
former Senator w. H. Andrews is
president of the other. Francis j.
Torrance is Ieavily interested in both
concerns, and his confidential man, W
c. Hagan, is secretary of both COM
panies. T. Lee Clarke. the dead cash
Ter of the Enterprise, was treasurer Of
both companies, and the bank was the
custodian OF their bonds, which were
held as security for the loans. Per-
sonal notes of the promoters are also
to be among the additional Sc
curities furnished the bank.
Denied by Andrews,
Former Senator Andrews denies the
statement of President GWinner and
says he never got a cent from the
bank. Mr.. Torrance is i'll, ard Secre-
tary Hagan, speaking for him, also
denied that he had 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 will be called, and it
is said a complete statement Of the
condition of the companies connected
with the bank viii be made. Since the
closing of the bank it has developed
that the United States government and
state officers have been in Pittsburg
within the last few weeks looking into
the affairs OF the institution, and par
ticularly it was said. to make an IN
vestigatiOn 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 Ger
tain politicians would have the benefit
of loans.
Ridgeley Had Been There.
". B. Ridgeley. comptroller of the
currency. was in Pittsburg two weeks
ago, and last week John A. Berkey,
state commissioner of banking, and
John W Morrison, deputy commission
er of banking. spent several days in
this city. Berkey left Pittsburg last
Thursday. and Morrison departed Fri
day. They are said TO have had con-
ferences with several Republican pol
iticians.
1t is said that the state viii lose
nothing by the closing of the Enter
prise National bank. as the state funds
are insured by indemnity bonds furn-
ished the state treasurer by the di-
rectOrs Of the bank. the Mercantile
Trust company of Pittsburg and the
United States Fidelity x Guarantee
company of Baltimore.
Too Early for Statement.
National Bank Examiner Cunning
ham, when seen today, said 1t was too
early for him To be able to say any
thing as to the banks condition. He
said from the last report of the books.
the bank had large number of small
depositors. The solvency OF insolV-
ency of the bank, Mr.. Cunningham de-
clared, could only be determined after
the books had been closed up and the
balances taken off. II would also de-
pend somewhat on the nature of the sc
curities that were held by the bank
for the loans it had made,
An inquiry is being made into Cash
Ter Clarke's personal affairs. He was eS-
timated to have been worth $500 600. but
his friends say that he sank all his
assets in an attempt 10 reimburse the
bank. and hat his suicide followed his
failure to stem the tide.
They declare he was ruined by bust
ness associates, and that il viii be
found that he is defaulier.
The Railway Deal.
Al the conclusion OF a special meet
ing this afternoon Of the Santa Fe Cen
trail Railway company and the Penn
sylvania Development company on be-
half of which concerns the late 7. Lee
Clarke is said to have negotiated loans.
the officials gave out the following
statement:
THE Santa Fe Central railway was
built by the Pennsylvania Development
company and completed about two
years ago. This road is in good condi-
ton and earning much more than op-
Grating expenses, and the earnings are
steadily increasing.
The railroad company has 80 notes
out. We are not aware of any notes of
the Pennsylvania Development COM
pany in the Enterprise National bank.
and the company has no record of such.
If, however, MIR. Clarke used any notes
of this company in his bank they will
be paid"
According to Mr.. Cunningham, the
books are i'll a badly muddled shape,
and it will take some time before a
statement can be given 10 the public,
as it will take DAYS of work on the
books before they can be Strengthened.
Andrews Given the Lie.
Commenting upon Mr.. Andrews de-
NAL that he had received any Of the
banks money, Homer L. Castle, the
Prohibition candidate for superior
judge said:
IF William H. Andrews asserts that
he never received a penny from the de-
funct Enterprise National bank. and
that his name does not appear Oh paper
for d loan secured from that institu-
ton, he is guilty of an unqualified
falsehood / can furnish convincing
proof if required, that Mr.. Andrew;
has received money. not from the En-
terprise bank alone, but from other in
stitutions in this neighborhood. l can
not say whether or not his loans from
the Enterprise aggregated so large I;
sum as $500 900 as has been renorted