New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-11-05
GRAIN BROKER
AND WIFE DISAPPEAR
Pembroke Pitts Home, in FASH
iOnabIe Part of Baltimore,
Closed and Barred.
ALLEGED FORGERIES GROW
Baltimore Banks Large Losers
Pitt a Daring Spectator
and Power in Grain
Trade.
Icy telegraph to The Tribune. J

lBy telegraph to The Tribune
Baltimore. Nov. 4.-Detectives in Pniia-
dephia and New York are searching 'oi
Pembroke Pitt, head Of the old grain
firm of Pitt Brothers e. Co, VINO IS
fugitive under indictment on charges u
numerous forgeries of grain pliis u
lading. Revised estimates Of the amount
the firm owes to various banks, much' II
not all of which is alleged to be OF
bogus paper. give the aggregate -
| s238.6OO Blanchard Randall to-day quar-
/ flied as receiver, and a search OF inc
firms books and papers has begun.
! Not only has PEN" Pitt, as ne Is
Familiarity known. disappeared. but MS
wife also has gone, and their elegant
home. in fashionable Roland Park is
closed and barred tight.
The banks have one comfort That Is
that among the bills of ladng there are
some good ones, and then among the
liabilities there are some elevator re-
ceipts.
The firm is on our books for about
/ s145, 900" said Henry b. Wilcox, presi-
/ dent Of the First National Bank, "but
all over approximately 100000 of that Is
| in warehouse receipts, which are as good
as gold. Then. of the 100000 we know
Of some bills of lading that are genuine
/ our loss may DE nearly all Of that S6O'ooo
| or il may be only 100000. ! am giving
/ it now as $4,000 to be at the outside
figure. OF course, our customers are
! fully protected by our reserve, as are
those of all the other banks involved
! There is little that is indefinite in the
! case of the National Bank of Baltimore
for the full $4,000 in that case has been
Charged of on the books, the officials
being ready To accept 1t as a loss.
Had Ample Time TO Get Away
\ puzzling feature OF the case is that
| Pembroke Pitt seems to have had ample
time 10 leave the city w';hout arres'.
/ Mr. Hahn, the bank eXa miner, satisfied
himself Of fraud as long ago rs last Sat
urday night, It is said, and told both the
First National Bank and the Bank or
Baltimore by Wednesday morning OF the
/ fact. But all day Wednesday, and again
on Thursday. Pitt was on the floor doing
business. and was not missing until
Thursday evening. when he is supposed
20 have left his home in Roland Park
with Mrs Pitt TO take a steamer for
Europe. Mr. Hahn, asked why he did
not act sooner. said that he could not
make any statement Of his work under
government rules. A rumor is in circu-
lation that Pitt is in New York or Phil
adclphia
Pitt was a power on the floor Of the
Chamber Of Commerce. He was always
an active bidder for grain. His business
was thought to be prosperous, but he
was the type Of man who had no init
mate friends, and whether winning or
pockotlng heavy losses no one knew.
In 1897 Pitt met with his first great
'everse. Then his firm failed and it
creditors received only about 20 cents
on the dollar. European buyers and
dealers Were the heaviest losers in this
crash. which amounted to thousands Of
dollars. When Pitt went TO the wall
that time It was said openly that specu-
iation was the cause.
Since that crash the firm with which
Pitt was connected has always been
regarded with certain amount Of dis
trust, although the business had been
considered so successful that this feel
ing had worn off TO some extent.
Pitt was the typical Spectator. He
was a quiet man Of iron nerve. Whether
Ipocketing losses or winning. his demean-
or was the same. He played for big
stakes, sometimes winning and some
times losing. When he won he made
big profits and when he lost it did not
mean that he was only $1,000 or $1,000
cut.
| He was a factor in the Chicago mar
ket, where fortunes are often made and
lost in q day. There is little specula-
J ton IN the Baltimore market, and Pitts
restless spirit led him naturally to take
chances in the bigger market.
/ An officer Of the National Park Bank
which is a creditor OF Pitt Brothers Sc Co.
, for $4,000. said yesterday:
4 few months ago Pitt Brothers & 90.
/ applied TO us for a loan of $4,000 After
carefully investigating their standing ana
/ finding that among Baltimore bankers the
/ firms credit was regarded a excellent. we
/ advanced the money, taking as collateral
warehouse receipts. which were depC site |
/ with one Of our Baltimore correspondents
There was ample margin Of security over
the face value of the loan. IN the regular
course OF business suhsttutionS for part
OF the original collateral were made, ami
some of these substtutions are now said
/ 20 include fraudulent bills OF lading How
much Of the present collateral Is iraUdu-
/ lent we have not yet ascertained.
/ The bank oflclal added that the bank
/ had learned that Pitt Brothers & Co. had
| failed several years ago and had settled
with creditors at ~ cents on the dollar
/ After resuming business the firm paid of
/ it's creditors in full, with interest, these
payments representing simply p moral OBJ
| legation, and its action IN liquida.ing claims
which were not legal obligations did much
I 10 advance the FIRMS credit