Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-08-11
THEY FAILED TO
PROTECT FUNDS
SNYDER SAYS
Lafean and Amber Lift AS
sets in Defunct Bank With
out Security, Is Assertion

Philadelphta, Aug. 11.-DelallS as
to knowledge of former Insurance
Commissioner Charles A. Amber
and former Banking Commissioner
Daniel S. Lafean of the condition O.
the wrecked North Penn Bank dur
ing the Brumbaugh administration
were revealed yesterday in connec-
ton with the probe.
Statements were made by Auditor
General Charles A. Snyder and state
Treasurer Harmon G. kephart
which indicate that former Bank
ing Commissioner Lafean was in at
tendance at a conference where the
proprieties of making heavy de-
posts in the bank by the then In
surance Commissioner Amber were
discussed.
This was prior to Christmas Of
last year. During the month of De-
cember, it was learned yesterday
the very friendly relations between
Amber and Ralph r. Meyer. the
accused cashier of the bank VINO IS
under $4,000 bail, resulted in Am
bier increasing the amount Oh ms
deposits in the bank. This made
payment of the Christmas func
accounts possible.
At that time former COMMISSION
er Lafean Is said to have had in his
possession Il report from FORMER
Bank Examiner MacBurney that the
bank was insolvent and was holdinf
$4,000 worth of securities pledged
by the directors, which he returned
to them three days before he left Of
flee.
Just why no action towards
Strengthening out the affairs of the
bank was taken during the admins
tration of former Governor Martin
G. Brumbaugh is not clear at this
time. But the developments of yes
terday show that a political feud
between former Insurance Commls-
sioner Charles Johnson, of Norris
town, now a Deputy Auditor Gen
eral, and Amber, led to the DIS
closures that caused Governor
Sproul to take prompt action once
he assumed office.
Why They Were Ousted
Auditor General Snyder declared
yesterday that both Lafean ana
Amber were removed from Office
because of the manner in which
they conducted their offices and that
the investigation into the affairs of
the North Penn Bank began imme-
diately after the new officials as
sumed office.
The statements of the State Off
cials, together with the events that
have gone before, indicate that the
question of the strength of the
North Penn Bank and the wisdom
Nf I1
had been discussed with Lafean
who never acted on the report filed
by MacBurney showing the bank TO
be insolvent.
1t is expected that this clearing of
the details will result in prompt ac-
ton by District Attorney Samuel Z.
Rotan in the promised prosecutioA
of two former State officials" over
which he has been comforting with
the Attorney General. 1t is believed
that the jurisdiction will be held 10
be that of the local courts and thar
the case will not have to go to Dau-
phin county for trial.
Though the Auditor Generals De-
partment had no official Jurisdiction
over the matter, it was the trans.
ferring of 100000 of funds of the
defunct Pittsburgh Life and Trust
Company from banks in the west
ern part of the State, where they
were fully protected by surety
bonds, to the wrecked North Penn
institution, unprotected in any way.
that caused Auditor General Snyder,
Deputy Auditor General Charles
Johnson and State Treasurer Kep
hart to bring the matter to the no
tice of Governor Sproul with the
result that the latter removed Am
bier and Lafean from their respec-
tive offices