The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-11-04
FRAUD CHARGED TO BIG FIRM
PITT BROTHERS e. co. ALLEGED
TO NAVE SUINDLED BANkS.
One Member. Indicted for Using Bogus
Hills OF Lading, Leaves Baltimore
Banks Lose SIOs 900 Receiver In
Charge Police seek Pembroke put.


Banks Lose SIOs 900 Receiver In
Charge Police seek Pembroke PIT.
BALTIMORE, Nov. 3 1t was announced
to-day that the old grain firm of Pitt Bros
! \ Co had been forced into II roceivcr~hip
and that the Grand Jury had presented
: Pembroke W Pitt. n member of the firm,
I ON the charge of obtaining money from
four banks on fraudulent bills of lading.
The discovery of the alleged fraud was
made 10y National Bank Examiner Huhn in
( the course of his examination of one of
the four banks. The banks alleged to have
been swindod arc the First National. the
National Bank of Baltimore. the Farmers
and Merchants and the National Bank
| Of Commerce
1t is said that the National Park Bank
of New York has also made loans to the
1 firm on what may be bogus collateral
In the bill for the reccivership it II
stated that the firms indebtedness to the
four banks exceeds 10y Si6S,OOO the valid
collateral they hold
Pembroke Pitt disappeared from Balti-
more on Thursday after drawing $4,000
from a personal bank account and is be-
lievod To have gone TO New York. The
police of that city have been asked to look
for him. His bail has been fixed AT SIS, 600.
The application for TeCeivership was
made after a conference Of the presidents
of the four banks with Clarence VI. Pitt.
the other member Of the firm. who is still
in this city The petition goes into the
condition of affairs and says that the firm,
had contracts on which there would be a
a, ,n 81, ,,I
Clarence Pitt Immediately filed an
amendment to the bill in which he ad-
mitted the truth of the charges made and
consented to the appointment of the re-
ceiver Blanchard Randall. vice-presi-
dent of the First National Bank. was APP
pointed receiver and his bond was placed
at tlO.OO.
bill of sale was filed to-day in the
Record Office from Pitt Bros h Co
conveying several steamships all Of the
elevator property of the firm and all it'
equipment to J Allen Smith 4 Co. a Maine
corporation The bill of sale wa dated
May II. but was not put on record until
to-day. The bill was a surprise TO the
creditor banks as well a. to the receiver
who did not know what the effect would
be on the Assets available to the receiver
Mr. Randall took charge of all thetprop-
erty of the firm and notified all of the EN-
ployees to be on hand tomorrow To con-
inue the business as usual.
Until a few days ago. II was said this
afternoon. Pitt Bros 4 Co owed the sew
eral banks onward of $500 600 but per
emptory demand from the banks resulted
in the Indebtedness being reduced from
that figure to sl6s. 900. The fact that the
firm was being pressed 10y its creditors
has been known in business and banking
, circles for several days, hut not until to-
day was IL beieved that IL would ha neCes-
sary tO seek the protection Of the courts.
1t is said that Pitt borrowed money from
, the four banks on warehouse certitica ties
, and bills Of lading which are now the sub.
: ieCt Of dispute. Some of them are said
, to bear numbers Of gondola and Hat cars
which are never used for the shipment
of grain. and one is said TO have borne the
number of a caboose.
a The firm of Pitt Bros Co is one OF
4 the oldest grain houses in Baltimore
having been established back in 1884
The house has played a prominent par
in the development Of the grain trade o
the city.
Cashier Ever Of the National Park Banl
. Of New York arrived here tonight He
p admitted that his bank had been hit fo
4 AZ least 10000 He said most of thi,
money had been lent on bills Of ladinl
A and the rest on other paper which haC
been considered good security,
4 Mr. Ever also admitted that the situa
r tion was more grave than he had at frs
, anticipated, and that he would cooperat'
with the local banks i'll trying TO realiz'
2 on what can be saved from the assets o
I the firm.
t Richard Delafeld president OF the Ma
3 tional Park Bank said at his home a
I Tuxedo last night that he did not recall
any loan made by his bank To the Balti
I more concern He said if such loan hat
3. been made it must have been for an in
@ significant amount.
: Maurice f. Ever, cashier Of the Nationa
n Park Bank. left his home in Montclar
I y. j.. yesterday evening for Baltimore.