Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-11

entire duty.
! Il was informed very early after
taking Office that the bank was in
prccarious position. State Banking
| Commissioner Fisher did not tell me
/ that it was insolvent, but that the of
ficias had been juggling funds.
Il then decided that it was mad
visablc to continue to keep state funds
| in the institution and advised their
withdrawal. 1t is an unfortunate leg
aCy from the former administration.
II can't understand why man like
Amber should have been appointed In.
surance commissioner. He knew
! nothing about insurance as far as |
knew, and ! cannot see what recon-
mendation he had for the position.
{ Moreover. ! cannot see how the bank
continued as it did without the knowl-
! edge Of the banking commissioner.
Small Loss Forecast
Il feel that the state deposits are
we'll protected and that the loss will be
small | have the greatest faith in Mr..
Fisher. In fact he was my first ap-
pointee. although I did not announce it.
He is an excellent lawyer and has long
acquaintance with financial matters.
And he has no connection with any in
terests. He has a peculiar qualification
for this type of work and my greatest
confidence is placed in him.
"As far as Amber is concerned ] had
intended to remove him Immediately.
had to continue him in office, however,
for about a month, to try to get straight
the affairs of the Pittsburgh Life and
Trust Company and then appointed
| Mr.. Donaldson.
Mr. Schaffer was located in the Adj
rondacks. where he is spending his va
cation with his family. The attorney
general was reluctant to discuss the
wrccking of the institution but as
serted that all the legal machinery of
the state was working to obtain every
possible penny for the depositors, and
to punish the SCuttlers.
How much do YOU think will be
savrd?' he was asked.
Depends on Boland
That is difficult to say he replied,
but it will depend largely upon the
amount We can force Roland to pay.
Roland is the president of the James
J. Boland Company. of New York city,
and also head Of the defunct New York
State National Insurance Company and
the Seneca Fire Insurance Company
He borrowed heavily from the North
Penn Bank. The exact sum has not
been announced, but 1t is believed to be
more than S30O,OOO.
And the politicians said to be in
volved. when will they he arrested
Mr.. Schaffer was asked.
81 do not know but it is safe to say
that no action will be taken for few
DAYS. We want to be sure OF our facts
before definite action is taken. You
may rest assured that the guilty will
be punished"
''Is it true that you are considering
taking action against these men charg-
ing them with malfcasance in ofice:"
'T cannot discuss that at this tim. -
Mr.. Schafpr then said that he had
two things in mind; first, to obtain
every possible penny for the depositions
and. second to punish the guilty.
This whole matter, SO far as I am
concerned" he added. ''is in the hands
of Mr.. Myers and Colonel Pusey, spe-
cially appointed deputy attorney gen
eral They are lawyers Of the very
higest standing and ] am confident they
will take every necessary step to bring
any guilty parties to justice and to
recover every dollar that can be re =
covered for the depositors.
Confidence In Officials
when thev have completed their in =
vestigation, If they deem II necessary
they will report to and consult me.
but I have such confidence in both OF
them as to know that they are fully
competent to handle the entire trans
; action
William T Gabell. the director who
is held in $4,000 bail on criminal
charges growing out of the wreck. sp-
. peared at the bank this afternoon. He
, held a long conference with the ex-
aminers and left the building with Evan
r. Amber. one of the clerks.
The men laughed and joked on the
steps and apparently were unconcerned.
; When asked if he had any statement to
make, Mr.. Gabell said: THE only
thing heavy on my head is my hat"
District Attorney Rotan and Deputy
Attorney General Myers were out of the
city today. They will return tomorrow
for a conference, when the question OF
jurisdiction is to be considered in the
matter of the arrest of two former state
officials. Tho names of the men to be
arrested have not been made public.
Charles A. Snyder, auditor general
and Harmon G. Kephart, state treas
urer, have given out statements at
Pottsville giving details as to the knowl
edge of both Amber and Lafean con
cerning the weakened financial condition
of the North Penn Bank in December
1918.
As far back as September, 1918
Lafesn held $50, 900 cash as security for
a shortage in the institution discovered
by James A. AIacBurney, one of his
, stat Of examinfrs,