The daily banner. (Cambridge, Md.) 1897-2008, 1910-05-30
ACCUSE BANKERS
OF $4,000 Theft
Crawford Brothers, Of PhiIadeI-
phia, Under Heavy Bail.
MANY SCHEMES INVOLVED
Receiver Accuses Them of Wrecking
American Trust company by Fraud
ulent Schemes of Speculation.

Philadelphia, May 3O.-Charged with
fraudulently misapplying the funds OF
the American Trust company. at Broad
street and Ridge avenue. with causing
fraudulent checks of the institution to
be issued to the amount of $4,000,
and with conspiracy, Joseph S. c.
Crawford and ]. X. Crawford, his
brother, 241O North Broad street. vice
president and secretary-treasurer of
the company, respectively, who be-
tween them own 50 per cent of the
trust company's stock, were arrested
on warrants sworn out by the COM
monwealth of Pennsylvania and held
under $4,000 bail each by Magistrate
Gallagher for further hearing. 1t Is
declared by the receiver. Frank H.
Caven, that the amount of the alleged
defalcations will reach the sum of at
least 100000. The capital stock of the
company was 100000, and deposits
were held to the amount of 100000.
The doors of the American Trust
company were closed on Nov. Is, 1909,
by State Bank Examiner Albert L. Ia
Dor. Mr.. Caven was appointed receiver
and the bank has not since opened. 1t
was at first declared that the institu.
tons embarrassment would be only
temporary, but the arrests were based
on the results of further investigations
of the company's affairs. This is the
first prosecution Of a banking institu
ton by the commonwealth under the
law urged and passed through the eff
forts of Attorney General J. Hampton
Todd in April. 1909.
Many Schemes Involved.
1.-THE transactions perpetrated by
these men," said Receiver Caven, I'm
volved hundreds of thousands of dol
lars and numerous schemes of every
variety have been carried on by them
on a large scale. cannot conjecture
as to their motives. for they appeared
to be quiet, Industrious men of simple
habits.
Several years ago they organized
the Kanawha & Davis Creek Coal com
pany, after using $4,000 Of the trust
companys money for the purchase OF
coal lands in West Virginia. Although
as closely as we have been able to as
certain, the property Is not actually
worth more than $4,000. they issued
100000 worth of bonds. and do not
know how large an amount of pre-
ferred and common stock. A portion OF
the bond issue to the amount of $176.
900 was repurchased and held In the
name of the American Trust company
H. w. Noble & Co.. bankers. with Of
fees in the Land Title building. sub
scribed to $4,000 of the bonds.
1T was the custom of the Crawford
brothers to make large loans of the
company's money. in the names OF
many friends, some of whom could
scarcely have furnished dollar of Sc
curity This money was deposited in
other Philadelphia banks and later
drawn out by the Crawford brothers
themselves.
Mythical Lumber Company.
Last spring they issued a note In
the name Vi lue non cSiSleul OulleO
Lumber coz: 2any for $4,000. Although
this corporation had 40 standing what
ever, they made 1t appear to have
earned $4,000, and these proceeds
were used to pay interest on other Sc
curities and notes.
"A second mortgage was issued on
the Crump Brick company. of New
Jersey, for $4,000 A first mortgage
of $25 1000 fully covered the value OF
the property. but the company's funds
were used ior the second"
1t is asserted that the Crump com
pany was founded by Crawford several
years ago. when he believed he had
discovered & new chemical process for
the manufa cture Of brick. 1t is said
never to have been successful.
Other checks for amounts varying
from $4,000 to $4,000 are said to
have heen caShed by the CraWfOrdS