The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-17
PROBE ANOTHER TRUST CRASH
PHILADELPHIA DIGGING INTO
Old FINANCIAL WRECK.
District Attorney Threatens Prosecutions
Because OF City Trust C~Ompany's Fall
ure-eiOO. 900 Lost Through Apple
yard syndicate Deal In Banks stock.


PHILADELPHIA. Sept. lo.-In District
Attorney Bells investigation Of the finan-
cial transactions that led to h bank
ruptcy OF the City Trust Safe Deposit and
Surety Company, and which will be the
basis OF criminal prosecution, he has I'M
earthed the methods Of the Appleyard
Syndicate.
A. B. A~ppleyard came to this city from
Boston. There quickly clustered around
him other inanciers with eyes open foI
good things.
According to the District Attorneys
information, the Appleyard Syndicate, as
this financial coterie has been known for
the last two years, included A. b. Apple
yard, Herbert NJ. jerks, Alphonse A. Rutis,
+. j. Ferguson, p. +. Ballinger, George B
Appleton and Joseph w. Wilson.
In November, 1904. at a time when the
stock of the City Trust had little II any
intrinsic value, the company's directors
received an offer from the syndicate for
the requirement of a controlling interest
in the company, the conditions of which are
understood to have been the purchase Of
1000 shares of stock at $3.50 a share, and the
immediate resignation of a sufficient num-
Der of the board OF directors to insure con-
troll Of the company to the purchasers.
In banking circles it was well known
that the A~ppleyard syndicate had been
trying to get control of banks and trolley
companies. At that time they were credited
with having obtained control OF the Ger
man-American Bank of Buffalo, N. Y
the German Bank, also Of Buffalo, and
the Traders National Bank of Washing
ton, d. C.
As a result Of the s~yndicate's offer notice
was sent to the stockholders OF the City
Trust on November IS, 1904, and following
this notice 1900 shares of City Trust stock
we're deposited on or before November %
1904, with Director Joseph A. Sim astrustee
who received payment for the shares in
the form OF a clearing house due bill fol
$500 900.
This money was paid TO the individual
sellers OF he stock in the following Deem
Der.
The syndicate elected its directors anC
Appleton, Ruois and Hallinger OF the
syndicate were Immediately made the
finance committee, and the carnival wit
the depositors' money began.
They immediately went into session and
authorized a loan of 5000 900 to II. w. Eastor
and a loan Of ST.. 900 TO j. A. Thornquiest.
taking as collateral therefor .S47 shares Of
stock Of the German american Bank Of Buff.
falo, N. Y.
Bell AYERS that EaEton and Thornquiest
were men Of no financial responsibility and
thai they were merely clerks in the employ
Of A. f. Appleyard. or connected with hin
in his business transactions and that the
loans were in reality made to the Appleyarc
syndicate. An additional loan OF s39 ,Ot
was made to Thornquiest only a few days
after the first loan.
When the City Trust tried to collect the
Easton and T~hornQuiest oan the result
was a settlement, by which the stock OF the
wrecked German American Bank, held al
collateral, was surrendered for a certain
amount Of cash and certain notes. a trans
action that resulted in a net loss to the
City Trust OF more than 500 600. There wal
also an Appleyard overdraft of Sls,6SS.
As for the 1900 shares Of City Trust stool
purchased by the AppleyaTd syndicate
they we're quickly placed in various banks
as security for loans a~ggregating 100000.
The A~ppleyard directors resigned a feV
months before the company closed its door
in June, 1905, the old directors whom they
had displaced resuming their places on TIN
board. Appleyard is now in New York.
All of the members of the syndicate wht
could be reached have been served witt
ATTORNEY E. Clinton Rhoades's bill in equity
and their answers to this suit, which will b.
heard the latter part Of this month, will ais
be utilized in the District Attorneys crimi
nal investigation Of City Trust conditions.
Il am working on the lines Of crimins
conspiracy said District Attorney Bell to
MIGHT