The citizen. (Honesdale, Pa.) 1908-1914, 1909-04-30
KNAPP FAILURE
What 1t Cost to Exploit
the Knapp Bands.
SPECULATED IN WALL STREET.
Papers That Show It-Claim Against
Brokerage Company in Bank
ruptcy Schedule.


In statement recently published
Charles P. Knapp, is reported to
have repeated the statements that
he has made before, that all of the
money lost in the Deposit bank went
into the Outing Publishing Com
pany.
Among the scheduled assets of
Charles P. Knapp, fled in his bank
ruptcy petition Is a claim against 2
New York brokerage firm that fail
ed two or three years ago. This
shows that he had been speculating
in stocks.
Among the papers, which it is be-
lieved have been turned over to the
District Attorney, or at least which
have been reported to him, are some
showing that much more money was
lost through Wall street by Mr..
Knapp.
1t is stated that $4,000 more was
spent by Mr.. Knapp in taking his
band about the country last sum-
mer.
Morris Knapp, who was placed in
charge of the Deposit bank a few
weeks ago, and Florence Knapp
Yocum, his sister, had trusted their
affairs largely to their uncle, Chas.
j. Knapp, head of the firm of pri-
vate bankers. So much confidence
did Mrs. Yocum have in her uncle
that a few months ago, when she
sold stock she deposited the pro-
ceeds, $4,000, in the Deposit bank,
and she now holds certificate OF
deposit for that amount in that in
stitution.
Inasmuch as G. J. Knapp was the
head of the firm, people conversant
with the situation say that he could
not help knowing the condition OF
affairs. He knew that the deposits
in the two private banks were over
million dollars, and that they had
few assets of any value which the
Binghamton Trust Company had not
rediscounted.
An Albany dispatch claims that
negotiations are pending between
Superintendent Clark Williams, OF
the State Banking Department, and
other parties looking toward a sale
of the franchise of the Binghamton
Trust Company.
| The Binghamton Republican OF
April 18th publishes the following:
THE more things come to light in
regard to the banking methods OF
Kro 70 ho, IT,
at Deposit and Callicoon, the more
peculiar they appear.
1t was stated yesterday that some
of the larger accounts of the Deposit
bank did not appear on the books
of that institution. The investiga.
tion that was made just before the
doors were closed on Thursday
brought to light notes against the
Outing Publishing Company, under.
stood to be for about 100000
which did not appear on the books
of the bank.
These notes were found in 6
pocketbook, where they had beer
left by Charles P Knapp, who short
time before had retired from the
management of the bank They were
regularly made out in favor of the
bank by the Outing company, ap
pearing to indicate that the banl
had loaned the Outing company the
amount for which these notes were
drawn, in addition to the other large
loans that had been made to tha
company, according to the record!
of the bank.
When the investigation was car
ried further it was discovered tha
these notes did not appear on tn,
books of the Outing company.
1t was this apparent discrepanc!
that started the investigation tina
led to the closing of the Deposit anC
Callicoon banks. After that actor
was decided upon, it was discovered
that the Deposit bank owed the CALI
coon bank over 100000, and NJ
record of this appeared on the book
of the Deposit bank"