0005c159Full suspension, Books examined
Other: Fraud by president (forgery, fictitious loans) led to state takeover and receivership.
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BINGHAMTON BANK MISSING BINGHAMTON DEC. State Bank of Binghamton was taken over by the department of banking today. Joseph A. Broderick, state of banks, in statement said: "Serious irregularities have come to attention and the bank has been closed order to permit complete investigation and to conserve the assets the interest of all depositors." Local police announced they were seeking to learn the whereabouts of Andrew president of the bank.
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PRESIDENT DISAPPEARED Note Found Today Confessing a Shortage Which May Run to $700,000. BANK CLOSED BY STATE DEPARTMENT Family of Andrew Horvatt, President, Say He Left Home Sunday Night and Fear He Took His Life. Binghamton, N. Dec. The State Bank of whose total resources to Its September report were listed at $1,890,000 with deposits of $1,261,000, was ordered closed today by the New York state banking department following the dis of Andrew appearance president. A note confessing shortage. ap parently written Norvatt. was found on his desk when the bank was opened this morning. Bank aminers were notified and the doors closed. Bank officials estimated the shortwould amount to between $600.age and $700,000. The bank is situated In district populated mainly by foreign born. were the chief depositors. According to Norvatt's family. the bank president disappeared last night and has not been heard of since. They he took his life. feared The note exonerated all officials the bank any blame for the shortage. according to bank examiners. Horvatt. who is about 52. was highhis district. His regarded in such that be was termed fluence was the "king of the First ward." Horratt was Insur. It was reported $500,000. Christmas club depositors faced the It under loss of their money. stood, because although checks had been mailed them. only few have been cashed. Bank examiners declined to vulge the contents of the note, but learned from reliable source only few words. that contained as follows: "Joseph Ilidock, Floyd Mottram and Michael Horvalt are la way res ponsible for any misappropriation of funds of this bank. (Signed) Andrew J. Horvatt." Hidock Clark. Mottram an sistant cashier, and Horratt. brother of the bank president. cashier. New state department of banks had taken the State Bank of Binghamton permit complete investigation of "serlous irregularities" and serve assets, State Banking Superintendent Joseph A. Broderick annount. ed today. In its last quarterly statement Sept. 24. the bank reported $100,000 cap Ital. $265,501 surplus and undivided profits and deposits of $1,261,119. Cashier Suicide Lionberger. cashier of the closed First National bank of Sesser. III., was found dead today with bullet wound in hs the wound In his head. The body was in an automobile In cartridge exploded. was found In the automobile The bank closed several days ago and DOE 13 in the hands of state bank examiner. No announcement has been made about the condition the closed bank
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President Gone, Bank Suspended Banking Commission Orders Doors Closed After President Leaves Note Admitting Shortage Binghampton, N. Y. -(U.P.)- The State bank of Binghampton, whose total resources in its September report were listed at $1,890,000 with deposits of $1,261,000, was ordered closed today by the New York state banking department after the disappearance of Andrew J. Horvatt, president. A note confessing a shortage, apparently written by Horvatt, was found on his desk when the bank was opened this morning. Bank examiners were notified and the bank closed, Bank officers estimated the shortage would amount to between $600,800 and $700,000.
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Concluded From Page One 8 Carolina Banks Fail to Open Today the State Bank of Niobrara, at NioNebr. today was here by the department of trade The bank directors voluntarily suspended and turned the institution over to state bank examiner. No reason for action was given. bank had deposits of approximately $275,000. FAILS TO OPEN of the Pope county state bank Golconda for examination and adjustment was announced today. capitalized at $50,000. The first of year the bank had deposits $314,216.41. Loans totaled $244,286.79. PARIS, ILL., FAILURE PARIS, Na. tional at Paris, III., failed its There was run on the bank last Friday. H. Pennell, did not issue statement The bank had capital stock of $50,000. PRESIDENT IS MISSING affairs Andrew president of the state bank of Binghamton, missing since the doors of the institution were closed yesterday, was the object of Inquiry today from sources. The state banking department searching the amount shortage reported to about was one the inFederal officers became interested that Horvatt was the supreme organization and the officers of that organization, the Greek Catholic union, arrived to check their accounts. The exact shortage, state bank examiners might not be determined until early next week. Depositors were largely laborers.
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PROBE SHORTAGE AT BINGHAMTON Three Agencies Delving Into Affairs Of UpState Institution Whose President Press) Dec. affairs presithe State Bank of missing since the doors of the institution closed were the object of inquiry today from three sources. The State Banking Department, searching shortage unofficially reported about was one of the investigators. The federal had become upon learning that Horvatt the supreme treasurer the officers of Greek Catholic in this city today check their which had been in the keeping of the man. The exact shortage in the funds, State examinmight not be early issued night which would cover period "more than months." The bank examiners continued the morning the figures patrolling and windows The police had been ordered bank extra guard while the sought the shortage existing deposits largely earnings of working men in this section.
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SEARCH IS ON FOR MISSING BANKER By The Associated Press. BINGHAMPTON, N. Y., Dec. 16. -The affairs of Andrew J. Horvatt, president of the State Bank of Binghampton, missing since the doors of the institution were closed yes terday, was the object of inquiry today from three sources. The state banking department, searching out the exact amount of a shortage unofficially reported to be about $600,000, was one of the investigators. Federal officers had become interested upon learing that Horvatt was the supreme treasurer of a fraternal insurance organization and the officers of that organization, the Greek Catholic Union, arrived in this city today to check their accounts which had been in the keeping of the man.
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WARRANT OUT FOR NEW YORK BANKER Claim Note Forged, Half of Loans Fictitious Binghamton, N. Y., Dec. 17 (AP) Andrew J. Horvatt, missing president of the State Bank of Binghamton, is charged with second degree forgery in a warrant turned over to the Binghamton police today. The warrant charges Horvatt with forging the name of Joseph Laduska, city superintendent of streets, to a note for $1,275. This note was found in the loan securities files of the bank by state examiners who took possession of the institution Monday, police said. Examination of the accounts of the bank has progressed to a point where it is known that more than half of $800,000 carried as loans and discounts was on fictitious paper, authorities announced. In addition, an undetermined amount is missing from interest accounts. While the last bank statement gave the deposits of the bank as $1,217,153, the authorities say they believe the deposits will run to a much higher figure, because of the alleged juggling of the figures.
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MISSING BANK HEAD ACCUSED OF FORGERY BINGHAMTON, N Y, Dec 17 (A. P.) Horvatt, missing president. of the State Bank of Binghamton, charged with second degree forgery warrant turned over to the Binghamton police today. The warrant charges Horvatt with forging the name of Joseph Laduska, city of to note for $1275. note was found the loan securities files of the bank by State examiners, who took possession of the institution Monday, police said. Examination of the accounts of the
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Binghamton Bank Loss Placed at $1,500,000 Binghamton, N. Y., Dec. 29 (AP) The Binghamton Press says today that losses of nearly $1,500,000 have been discovered in the check up of the State Bank of Binghamton, the president of which, Andrew J. Horvatt, is a fugitive from justice. Thus far discovered, the losses are divided as follows: Forged notes $475.000: juggled interest accounts $735,000: minimized commercial deposits $268,000; total $1,478,000. A. member of the city common council and a brother of the missing bank president are out on bail, charged with forgery. There were more than three thousand depositors in the bank. Two civil actions have been instituted. one charging the directors of the bank with mismanagement and one for involuntary bankruptcy, in which a receiver has been appointed.
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Banker Surrenders After Year Search in $2,000,000 Theft Former Millionaire, Accused as Liquor Ring Leader, Has $30 Left. By Associated Press. N. Y., December BingAndrew banker day and reputed hamton by chief by night, surrendered bootleg troopers today. He to New York from Delawas hurried ware County. where he himself up, for with Attorney General John J. BenHorvatt, who has played hide and seek with federal officers than charged with for looting the State Bank of wage earners' pository. of more than $2,000,000. The Federal Government indicted him for liquor conspiracy. Once Wealthy. Genial and active worker and go-getter business. Horvatt, now about 55, was millionaire. He had less than $30 his pockets when he submitted to arrest. He was, however. sprucely dressed. Rev. Joseph Madigan, Catholic priest of Sidney, accompanied and Trooper geant R. L. to was that Father arranged for the surrender. State troops been at Horheels for He sent word he would surrender at last Saturday, but he that wrathful positor or runner with whom he alleged to have done business. would also be there The state entered the bank investigation last September Gov. Roosevelt superseded the Broome County District Attorney and assigned the Attorney General case. Horvatt's brother, Michael, and two other the bank. or pleaded guilty to charges of irregularity Horvatt himself, indicted on thirty-eight counts of forgery. son of Saloon Keeper. Horvatt, son of Czecho-Slovakian saloon keeper the old First Ward Binghamton, built his bank on the saloon site. institution prospered; it trebled its depositors and doubled its deposits. On Decem15, 1930. Horvatt disappeared from Binghamton. few days after the disappearance of the bank president. the bank its and its books failed to by $2,000,000. Safety deposit boxes had been and Christmas club money was missing. The bank had energetically encouraged Christmas clubs among its class depositors. It also had and obtained the accounts of several churches and many church organisations. All of this money was Panic-stricken customers of the bank, needing for Christmas purchases, stormed its closed doora, demanding their money. Investigation marked Horvatt the head of Binghamton liquor ring and the chief of operations across the New York-Pennsylvania state line.
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Who's LEMUEL PARTON (Copyright, 1931, the Press Association.) NEW making Sun Fo premier, China modern his YatSen, was he tensely realist, trained of and business closely touch with every phase contemporary graduated from the versity California master's degree at Returning China, he joined his father, the founder Chinese public, in his enterreconstruction Sun's regime. coming railways, moned to China Waddell, American his began fundamental reorganization transportation system, shrewdly wisely projected but checked the growing chaos China May he left Shanghai join Canton revolution against He again ters the government shrewd able businessman organizer. He opposes communism. Texas school teacher goals New fortune and Such the down the beautiful, pallid Georgia Amarillo, again her and again tak sedate bow the In O'Keefe, with hair, entered the Alfred glitz, anger "How dare you exhibit without she raged. She had sent Anita friend, few drawings, just for her personal strange mostly but someMiss taking them her friend glitz. O'Keefe of her The went World fame came quickly In 1924, Miss O'Keefe and Alfred married. Stieglitz sells no unless thinks the kind intelligent "How much persistent inthousand dolStieglitz, get rid him. "I'll take said the visitor, Miss of seven chilwheat near Prairie, studied art in Chicago York, gave went Texas. Miss Pollitunauthorized exhibit set her on main Her Irish and her mother Hungarian. Involved in the crash of the State Bank of Binghamton year ago the Monday its fugitive president, Andrew there tangled scandal of bootlegging and banking which considerably embarassed both republican and democratic bank failed for After Horvatt's disappearance, charged of the leading leggers that worth liquor seized in his Governor Roosehad ordered Attorney General probe the granting state his surrender again brings Genial Horvatt. son of saloon booster and phet greater for Binghamton. He engaged in the wholesale liquor 1920 private was made state bank His depositors mostly the failure the savings club fortune about $3,000,000. when arrested Albany.
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Banker Is Sent to Prison For Forgery Binghamton, Dec. Horvatt. former president of the State Bank of Binghamton which crashed December 15, 1930. with loss of $2,500,000, today sentenced to Auburn Prison from to 18 years on three indictments for forgery. He pleaded guilty before Supreme Court Justice Daniel McNamee in the Broome County court house. Sentence suspended on three other indictments of forgery which he also pleaded guilty Horvatt told Justice McNamee he hoped to live long enough to pay back he owed the 3000 depositof his Suspended sentences still hanging Horvatt's head result of his plea guilty of the six would bring his minimum total than years. Horvatt disappeared last the failure of his bank. He surrendered to state police last Monday.
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Horvatt To Testify. In Trial Of Aides Binghamton, April Andrew Horvatt, wrecked the State Bank Binghamton causing loss more than several thousand small depositors, will his Auburn testify behalf his Horvatt's to prison pleading guilty forgeries. Four men associated Horvatt the State bank month bank's statements to the State Banking department. They Thomas Mangan, member the state board Massoud Ellis, Sigmund Friedlander ChurchHorvatt's convictthe bank's difficulties. County Court justice today granted defense authorized Warden Joseph Brophy Auburn deliver Horvatt to Coopersjury drawn. Horvatt prison since the beginning of the year.
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sibility in evidence and what type stipulation would Court was adjourned for this purpose developed at the conference that the defense would not connotes forgeries. Mr. Cahill Mr. away many notes he found in the The said found 700 notes in the day the notes fell due they were protested, he said. Most of these were returned. Mr. Nathaway the postoffice having failed to locate. many notes here asked Mr. Cahill, him the bundle of alleged forged Mr there were 490 Senator Lusk objected to Mr. Cahill's as to much totaled. Justice Bliss sustained it. "We'll ake each note, one by said Mr. Cahill. Mr Cahill then changed tactics and asking Mr. Nathaway for Frank West of Binghamton was Mr Nathaway for Mr. West identified photostatic copies of the report of bank on of Oct. 30. 1930. the report they are accused of falsifying He followed this identification of photostatic copies other reports of directors made during existence of the State Bank Binghamton and already Two copies to the jurors for Mr. Nathaway was recalled to the stand asked tell details of his arrival in Dec. and he did the night of Dec. 14 and testimony in substance fol- arrived in Binghamton Dec. 14 Thomas Mangan and his son, Evarts, met me the station. We to Mr. Mangan's office at 90 street John O'Byrne and Frank J. Mangan were there. found first that the State Bank of Binghamton owed Federal Reserve bank approximately $83,000 Frank Mangan Mr. explained the situation to Mr president and cashier the Citizens Trust Co. of Binghamton at that time. "They told me that Horvatt had sold some either Thursday Friday and the profits therefrom credited the Irving Trust Co about 12:30 that night (Sunday, Dec 1930) Mr. Horvatt entered the office. He had box sepolicies with him. He bring certain deeds to estate, but said he would go But before he left sat down Mr. O'Byrne, Frank Mangan, Mangan Thomas told me the were off and that Mr. Horvatt had sold of bonds without his "I asked Mr. Horvatt if there was run on the He said no, not seepage of Frank Mangan said he'd pay his loan the Thomas Mangan said loan. Horvatt left about after he arrived From on spent time going policies with Frank but most policies had been heavily there was little value left. "At o'clock Evarts Mangan, took me home in went bed and the next packing when heard rap my "It was Mangan and he said had fled called the ing and them was going to bank went to the with Hidock and John Macey We the bank through door floor. Before left Mrs. Mangan was kind enough to give me a cup of coffee first thing investigated was the cards. could see they ran into the hundreds of by So called the New York and got to put the closing on the door." MARRIAGE ANNULLED Supreme Court Justice Riley H Heath decree ling the marriage Theodore W Spencer Spencer in papers filed at the county clerk's Smith of Endicott attorney for Mr. Spencer.
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THREE BANKERS APPEAL FROM Cooperstown, Y., May Three former wrecked State Bank Binghamton, reports the state banking appeal department. Thomas Mangan, member the state board regents: Sigmund Friedlander and Elmer Churchill, found guilty May certifying the bank good condition when they tence.
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BANK CASES Binghamton Directors Will In Appellate Court Nov. closing the State Bank depositors today the appellate division supreme next Thursday, for on three of the One of the directors Thomas of the State York Mangan, Elmer and of falsifyreport to the state banking The appellate division's decision toupon the finishing all Thursday given former Senator Claycounsel Mangan, waived his right argue today motion dismiss state's the ground that the state had failed brief in time for argument the In this right, Lusk asked the court his motion, plaining he did not wish to argue of the defense 'on but merely trying to bring about early adjudication Cahill Ready Proceed John Cahill, assistant attorney general, said attorney general's office not received the printed record the case in time file its the last term. which began Sept. he joined Luck ing that the case set for argument week. wish to dispose of this whole on its Lusk told presidinig not want to will no delay on the part of the people. Cahill can our side within an General superseded the district of Broome county in the bank's upon order of Governor Roosevelt. Andrew H. Horvatt. president of the bank. fied th closed. but himself up and serving state The attorney office got against the directors after trial lasted three weeks.
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Roosevelt Gives 33 Convicts Freedom STATE CAPITOL ALBANY, N. Dec. 23 Franklin D. Roosevelt, as one of his last official acts as Governor of New York, today signed commutation orders that sent 12 inmates of state prisons to their homes in time for Christmas and shortened the prison sentences of ten others. The governor's orders liberated one man, Napoleon Monat. who had been in prison nearly 23 years for murder committed in Dutchess county. Monat and two other overjoyed prisoners who benefited under the governor's Christmas commutations had originally been sentenced to die in the electric chair for their crimes of murder in the first degree. Earlier executive clemency saved them. Monat was the only one in this group liberated today. Stanley Gorski, convicted of first degree murder in Erie county, still has 20 years to serve, the commutation in this instance being from life imprisonment to 30 years. Michael Jernatowski, also convicted of first degree murder in Erie county. will have only five to serve years under today's commutation. Eleven of those whose sentences were commuted were convicted murderers in either the first or second degree. Another was convicted of manslaughter in connection with an automobile accident. Outstanding among the cases COVered by the commutations was that of Hewlette Rainwater, youth who was injured in an automobile accident in Georgia, and went to New York and attempted to commit robbery there, because he had no funds. "He held up store proprietor," Governor Roosevelt said by way of comment the case, "and when this man advised him to be careful, Rainwater dropped his gun and burst into do not believe he is criminally minded and am releasing him SO that he can turn to his family in Georgia.' Another of the cases in which Governor Roosevelt acted was that of Michael Horvatt, who held minor position in the State Bank of Binghamton when closed with $2,000,000 loss to its depositors. He was brother of Andrew Horvatt. president of the bank, who fled when the state took over the later gave himself up and serving sentence in Auburn prison. "Horvatt played minor part in very large bank Governor Roosevelt said of the man he freed "He was of great assistance to the prosecutors in convictions of the chief obtaining but there no evidence that he himself profited in way in the illegal
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Appeals Court Frees Convicted Bankers Albany, May tricts: gent Thomas Mangan 2,415. other directors of the closed State Binghamton today Bank from the Court Appeals 466. the action lower approval court tricts: serious banking high court announced judgment of the Appelaffirmed Albany cases Mangan, tricts: FriedChurchill three bank officials lander. the committhe Bank Bingham510. the were court last Court making entry report the state intent banks Today's order from Court upholds pellate dismissing the bankers indictments against