The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1905-10-24
MONEY LOANED FREELY TO
PENNSYLVANIA POLITICIANS
"5uIl" Andrews Denies He Borrowed
Money From the Bank, But
President Says Different.
THE STATE is AMPLY SECURED
Bank Examiners Are Now Busy Try
ing to Discover Who Got
the Goods.

velopments in the closing of the Enter
prising National bank of Allegheny,
which followed the suicide of its cash
Ter, T. Lee Clark, and which has result
ed in a scandal in Pennsylvania state
politics, given in brief form, is as fol-
| lows:
President Frederick Gwynner of the
bank postponed the meeting of the di-
rectors called for this afternoon until
| tomorrow afternoon. Receiver John
b. Cunningham notified the directors
that he has not COTTON far enough in his
| investigation to tell them anything.
There is really nothing new" said
! President Gwynner as he left the bank
late today. Cashier Clark had been
lending money indiscriminately to poll
| itcians without the knowledge of the
directors or other officers of the bank.
81 will not discuss the report that
Clark loaned some of the banks money
to Senator Boies Penrose. | will not
say whether he did or not. Clark
loaned much money about which we
knew nothing.
Il was told that Senator Penrose was
in Allegheny this morning and called
at the Enterprise bank. l did not see
him and do not know whether he was
here We have learned nothing new as
to the banks condition" At,
| Judgments were entered by the state
treasurer this afternoon In common
pleas court against nine directors Of
the Enterprise National bank on the
bonds they signed as sureties of the
state funds on deposit here %
Directors of the Santa Fe> Central
Railway Co. and of theh Pennsylvania
Development Co. issued statement
this afternoon. denying that any money
had been borrowed by them of the En-
terprise National bank. This state
ment is signed by Arthur Kennedy,
Francis ]. Torrance, w. III. Andrews
and w. G.. Hagan. II Is to investments
in these companies and the loaning of
money to these companies on their
bonds that Cashier T. Lee Clark's
friends attribute his downfall and the
present embarrassment of the Enter
prise National bank.
President Frederick Gwynner of the
bank says the loans on the bonds of
these companies made the trouble. He
says the loans were made from state
deposits, and that the collateral put up
for them is worthless. This collateral.
Ii is alleged, consists of the bonds of
the Santa Fe Central railway and the
Pennsylvania Development Co., al
though the directors of these compa-
nies deny this.
Inquiry into the condition of the En-
terprise National bank of Allegheny is
going on rapidly.
Expert accountants are going over
the personal account of Cashier T. Lee
Clark. No definite statement is secured
as to the amount of state funds the
Enterprise National bank had. Re-
ports say $59S,0O0 deposit 100000 of
sinking fund. The state is amply se-
cured
Persons accused by President Fred
erick Gwynner of having involved the
bank by borrowing large amounts deny
the charge. Friends of Cashier Clark
declare he was ruined by business as
sociates, and that it will be found he is
defaulter.
Attorney Thomas p. Trimble, CASH
Ter Clark's attorney, was summoned to
the Enterprise National bank rooms
this morning to assist in probing
4 Clark's affairs.
Enterprise National bank officials be-
lieve that the bank is solvent. Re-
ceiyer John B.-Cunningham declines to
say that the bank Is insolvent.
al nj Nv nj m ~ "a
Cunningham, receiver of the Enter
prise bank, was at the banking rooms
early.
do you still consider that the bank
Is insolvent?" he was asked.
well. so far as / have gone, see
nothing to make me change my report
to the comptroller of the currency, on
which he directed that the bank be
closed and named me as receiver"
$50 far as you have gone, are you
able to say whether the amount Of
loans ON unsatisfactory paper is about
100000, as reported?"
"That may be near the figures, but,
as l said, I have had no opportunity
to find out exactly the amount OF
: money which has been loaned on ques-
tionable collateral"
} ut has been stated that the amount
of state funds on the bank was close
to 100000, Of which $52s.00O was gen.
eral funds and 100000 sinking funds;
are those amounts about correct?" was
asked
; We'll, the amounts are easily obtain-
able. and the amounts you name arc