The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1906-11-05
HISTORY OF THE ENTER
PRISE BANK AFFAIR

| Isefraud the Enterprise Bank. Data
secured from the books by the ex
aminers showed that Andrews had Sc
cured large amounts of money at var
ious times, frequently giving notes
of the Pennsylvania Development
Company sometimes by simply writ
ing check. This latter seemed suf-
ffcient for Clark, although Andrews at
no time had any money on deposit
in the Enterprise bank.
After five or six weeks Cunning
ham was relieved as receiver, and
| Thomas Rinaker, an attorney of Car
| linsville, ILL.,, was appointed to the
| place. Clark's crooked operations had
continued over a period of about IL
years. His system mas never been
/ told by those familiar with it thro'
investigation of the books. 1t was
/ said repeatedly by the examiners
that Clark evidently kept a set of
private books in which were record
ed all his transactions. The books of
| the bank showed he had nypothecated
and re-hypothecated collateral. By so
j doing he created a puZZling situation,
a problem that seemed at first so in
| tricate it would battle the efforts of
| the examiners to solve it. Suits and
] counter suits resulted. Borrowers
| from the bank, whose notes were not
due at the time Clark killed himself,
soon learned their collateral had got
away from the Enterprise bank
| through Clark. Injunctions and @nan-
| damus proceedings were resorted to
| by those whose collateral had been
| diverted to strange channels by the
defaulting cashier. Much of this liti-
CATION is still in the county courts.
Soon following the closing of the
bank the directors turned over to the
| receiver the money that, under the
condition, they were responsible for
according to the statutes and the
banking laws. State Treasurer Math-
ues had on deposit in the bank ST.
030,000 when it closed. The Mercan-
| tile Trust Company and the United
| States Fidelity & Guaranty Company
| of Baltimore were on the banks bonds
for part of the State deposit. Tine
| Trust Companies and the directors to-
! gether made up the amount of the
State deposit and the State Treasury
| lost not cent, even the last scent
| of interest being paid.
Through all the weeks of excite
ment and publicity that followed the
| collapse of the bank, the directors
unanimously declared they never sus-
pected Clark was crooked. His man.
ner of life was such that they, one
| and all, thought him incapable of
L
brought out they seldom had board
| meetings, and when these formal func
tions were held Clark presided and
| the directors accepted implicitly all
| that Clark reported. His statements
We're scanned perfunctorily. Several
times when examinations were made
by the bank directors it is said Clark
secured through several sources
enough ready cash to permit of a per-
| faOt ha1anap yyh tho N ar fVnnf I
through the collateral and the cash.
Apparently from June, 1905. until
| the day tine bank closed Clark got
desperate and took terrible chances,
seemingly hoping thro' a big coup
lin the New Mexican enterprises to
regain what he had sunk and to
place the bank upon a solid founda-
| ton again. The last bank examina-
tion was made in June, 1905.
The business operations of Clark
| seemed countless. Appraisers were ap
pointed, with Trimble & Chalfant as
counsel. Tney found Clark had inter
ests about which none of his most
| intimate friends knew anything. In
| the western states, in the south, in
| New England and about PittSburg he
had invested money. Clark's genius
| for finance was demonstrated, and it
is said had another year been passed
without exposure Clark would have
made good in New Mexico and would
| today have been a millionaire.
For some time after mis- death small
business enterprises in which he
held official position and stock went
into the hands of receivers. The ere
dit of these concerns suffered a blow
when Clark killed himself and al
though all were making money, all
| asked for the appointment of re
ceivers.
/ Among other things Clark dealth in
was real estate. With the late Jos
Hastings he bought large tracts OF
land in Bellevue and Avalon. At the
time of his death he and Hastings
were planning the opening of the
Roseburg plan of lots that since mis-
death has become one of the pretti
est and most valuable sections Oh
Bellevue residential districts.
Shortly after Clark's death action
health broke and he was taken to a
sanitarium in New Jersey, where he
died, choosing the same method as
that used by Clark
Through the appraisers Receiver
Rinaker got possession of the bull
of Clark's property and severa
months ago a dividend of 20 per cent
1 was paid to depositors. The receiver
I lost considerable by his inability Il
learn where some of the stock of the
nterprise bank was. Through trans
fers a complete record of the owner
ship of the stock had been lost II
this way the law, making it fncum
bent upon those holding stock to turT
1t in along with 100 per cent of the