New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-10

rys months -. - S''0T0'OOO
r ~. s,oooooo month.
80 Dec. CspeciaD,-AIore than 100000
- so,bezzled from banks and lost through
~ - voluntary liquidation on the part of
l-,.l institutions in five months in 1905 ana
sczs have carried with them 10 destruc-
IS -..n supposed to be beyond reproach in
and financial dealings. Six banks alone
len forced to close their doors through
-. .s,rs amounting to S5,34o,o0o. and though
fsT Instances Some part OF TINS vast sum
= sssn recovered for the depositors. IN the
-.,v of cases the loss has been complete
s.rls have paid TO the tune Of S53OO.OOo
= s,a,ulation on the part OF trusted officials
.,~aa big bank wrecks which are stil
~ tbs public mind on account OF their size
Hs.- ,a,, date are the Enterprise National
~ ~ Allegheny. Penn: the First National
80 "a ronel,a. kan: the First National Bank,
2 :. ..,,r-suEea Wis and the Peoria National
- of Peoria, III. The failure OF the Denver
- Park. Of Denver, Col, completes the list
bsn,.s. whose losses at first hand reached
Sssseoaa OF the men who caused these hnan-
:. s,....srs one committed suicide, one died
8. ssesza Two we're sent to prison and ten
rsre indicted.
- ss-fas of systematic bank lootings by
,ro we're int.usted with the funds OF de-
,..-e began last April, when the discovery
shorfase in the First National Bank OF
,rs--snhee. led TO the confession Of the presl-
=. rran, G. Bigelow, that he had used ana
- q a5a geo Of the banks funds in specnla-
-, II the wheat pit and in Wall Street lac
...s admired as one OF the foremost hnanciers
- ne Northwest. was president of the Amer
A., Bankers Association, a member OF many
s,nbs ard societies; in short, one of the leading
- u the city. With the connivarce OF
- bs MANIPULATED collection accounts 40
- "a mar cent. to make it appear that the
,.-,,s reserve fund was intact. The amount Of
- inereassa collection fund Bigelow diverted to
his stock operations. The reserve maintained
n the First National in Eastern banks was
,smnered with so that it appeared several nun
srsSe of thousands Of dollars larger than 1t
ssaiII was Bigelow is now serving sentence
n prison which, with time taken on TOT so"u
behavior will expire in seven years
On MAY l Francis H. Palmer, cashier OF the
psceaie state Bank of Peeenic, Peconic Long
Island. confessed to a shortage OF S4V'VGU, anu
a. sani vas forced TO close It's doors. PaiIner
iost the money specializing in Wal etfeet, Ing s
agp5slto4s however, got Some percentages %
-beir money as Palmer had property worth
Sss0N on which the bank realized. Al OLE 0Ne
tus psimer's specNlations amounted 70 StS'VGo
~ h reduced these by fortunate turns OF Iho
tpecI.sssTe market rr,
kan csntrolled by Charles j. DeVlin, fatee az
css a. The most solid flnanciers OF the west
vert Il the wall, with liabilities OF s1oo0,VVU'
DsYia became i'll and this caused a tangls IA
lis sHairs which brought on the crash ne hau
sIeeaD00 invested IN railroad ana mining Ply
eras and was promoting various lnausIrla1
s5bs1es Two other banks controlled ny DeV-
lin he Spring Valley National Bank ana the
FHst National Bank Of Toledo. III, were en-
edFed with the First National, anu MS othef
sfaperties went into the hands OF receivers;
Tbs collapse Of his business ventures IlIlsli Is
he dissolution begun by disease, ana LEVIN
died Yet his death brought about what ne
could not accomplish had he lived, the settle
msnt Of all claims against him, MS NE lllsu a5
snes Of 500 600 added TO what could be saved
fam the wreciage gave every creator anu
hank depositor dollar for dollar.
Hpt On the heels of the BIgelow crash 1. cSnlG
IN August the closing Of the Denver Savings
Bank and the charge that it had been looted OF
orr S. 1900 by eonspiraJors. among WhoLh
were included officers and ex-ofncers OF the pahk
The bank had 5000 depositors, with deposits ag-
gFegatins g 400 600 The Investigations Of the re-
essTer led 70 the indictment of Leonard limbo
dsn. James a. Hill G. 3. Wiley, T. I" \ HUI AZ
4 L Hull G. 3. Roberts. W. L Camp, D. Nj.
Carey and A B. and J. II. Edmondson on q
charge OF conspiring 10 steal S1,7125S4 from the
baaks Wiifey. Edmondson and Hill had been.
octoEer saw the downfall Of Newton c.
Ds1gaerfy, Chief Superintendent OF Schools OF
Ps9Ei2, AID the closing Of the Peoria NaConal
Rslk through his enbeZziement OF its FUNDS,
aud the laundering of the Enterprise Bank OF
aEszbepey Penn which helped not q little IN
ts defeat Of the Philadelphia bosses at the
as election.
podgherty was arrested October 3 for forgery
aFolFtag q small amount The charge shocked
ts community IL which he had been leading
nlst1hsr, socially and III business. He protested
ls Innocence and said THAI investigation Wouid
Gear ain. but further investigation or the bank
sHairs served only to increase the amount OF
Deaghsrtys embezzIemen: and ths number OF
lis Iorgeries of the banks paper. over two
hundred indictments were finally found against
asa ard the proceeds or MS efnpezzllng anu
aefsery we're found to amount TO S%0VVoV ne was
tired convicted and sentenced to q much longer
isEn than Bigelow, although his steaiings were
Iess. Deugherty's punishment was imprisonment
fer from one 10 fourteen years on each OF nVe
eegntsa This may mean five years or seventy
i64f as the authorities may decide. II VIII
HslalT. however, be. seventy
me end Of the Enterprise Bank scandal is not
Ttl Tor there remain to be proven by the federal
authorities who are examining the banks al
lars The charges that the loss OF SIZOOVVo anu
ne closing OF the institution were Que 10 tne
lending OF large sums to- State politicians WITH
OF security, and that the funds deposited by the
Sale itself in the bank were lent TO these polltl-
cars without security. and also the accusatioh
7. Les Clarke The cashier made In the note he
Elete before he committed sufcioe-that Bail
Anerews had caused his ruin. AT present mere
Elite hope that any Of the deposltors wan get
9ef fnone5 back and among them are thou-
1sas Of poo- workingpeeple. 49,.
4ltaoagh the Central National Bank OF Boston
lalsd and closed its doors in 1913, lt vas mo- no.
"a. lhe liabilities Of 100000 were largely due
= ne Incompetent management OF tsle dil Has
toFs ana the nec1Ia,ions of the president, Otis
z Luke. Suits have been begun 70 re-
cover fror the officers of the bank peeWesH
sseesos and $500 ooe The receiver charges tnat
re directors wllfuIIy falsifed reports 70 the
state Controller OF Currency and allowed Luxe
g lend the banks funds without securaV 10
himself ard a clerk
lie October last Frederick r. Green, who vas
sas'aisE q the Tredonia National Bank az Isle
gfe Of Itg collapse was indicted Oh thirty -nvs
oEnts ard bic direct liability 30 the bank placed