18463. Enterprise National Bank of Allegheny City (Allegheny, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Start Date
October 18, 1905
Location
Allegheny, Pennsylvania (40.451, -80.016)

Metadata

Model
gpt-5-mini
Short Digest
827cafbf

Response Measures

None

Description

Multiple articles report the bank's doors were closed by the Comptroller of the Currency after the cashier T. Lee Clark committed suicide and subsequent investigation found fraud/defalcation. A receiver (John B. Cunningham) was appointed and suits followed. No newspaper describes a depositor run; this is a government-ordered suspension leading to permanent closure/receivership.

Events (2)

1. October 18, 1905 Suspension
Cause
Government Action
Cause Details
Comptroller of the Currency closed the bank after discovery of defalcations following cashier T. Lee Clark's suicide and forensic examination by federal examiners.
Newspaper Excerpt
whose doors were closed Wednesday afternoon by the comptroller of the currency following the sensational suicide of T. Lee Clark, the cashier
Source
newspapers
2. October 19, 1905 Receivership
Newspaper Excerpt
National Bank Examiner John B. Cunningham, who is receiver of the Enterprise bank, entered suit ... and placed the institution in charge of receiver / placed the institution in charge or receiver (OCR variant).
Source
newspapers

Newspaper Articles (11)

Article from Courier Democrat, October 26, 1905

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IN BANK SUSPENSION PROMINENT PENNSYLVANIA POL. ITICIANS INVOLVED WITH DEAD CASHIER. Pittsburg, Oct. 19.-The investigation of the affairs of the Enterprise National bank of Allegheny City, Pa., whose doors were closed Wednesday afternoon by the comptroller of the currency following the sensational suicide of T. Lee Clark, the cashier, is making good progress. The developments following the tragedy and the closing of the bank have been startling, involving as they do the names of several prominent cititens who have been active in state politics. According to the statements of President Gwinner the bank, through Cashler Clark, had furnished most of the funds used to float the Santa Fe Central Railway and the Pennsylvania Development companies, in which former State Senators W. H. Andrews and Arthur Kennedy and Francis J. Torrance were deeply interested, together with Cashier Clark. The two projects are allied ones. Former Senator Arthur Kennedy is president of the Development company and former Senator W. H. Andrews is president of the railway. Francis J. Torrance is heavily interested in both concerns and his confidential man, W. S. Hagan, is secretary of both companies. T. Lee Clark, the dead cashier of the Enterprise, was treasurer of both companies and the bank was the cůstodian of their bonds, which were held as security for the loans.


Article from The Caucasian, October 26, 1905

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News in Brif. The Lehigh Valley Railroad Company has acquired all the property of Coxe Bros., the most exquisite individual operators in in the Pennsylvania anthracite field. Cashier S. Lee Clark, of the Enterprise National Bank of Allogheny Cit, Pa., a immitted suicide, and an investigation started by the bank examiner was followed by placing the institution m charge or receiver.


Article from Little Falls Herald, October 27, 1905

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IN BANK SUSPENSION PROMINENT PENNSYLVANIA POL ITICIANS INVOLVED WITH DEAD CASHIER. Pittsburg, Oct. 19.-The - investiga tion of the affairs of the Enterprise National bank of Allegheny City, Pa., whose doors were closed Wednesday afternoon by the comptroller of the currency following the sensational suicide of T. Lee Clark, the cashier, is making good progress. The developments following the tragedy and the closing of the bank have been startling, involving as they do the names of several prominent citizens who have been active in state politics. According to the statements of President Gwinner the bank, through Cashier Clark, had furnished most of the funds used to float the Santa Fe Central Railway and the Pennsylvania Development companies, in which former State Senators W. H. Andrews and Arthur Kennedy and Francis J. Torrance were deeply interested, together with Cashier Clark. The two projects are allied ones. Former Senator Arthur Kennedy is president of the Development company and former Senator W. H. Andrews is president of the railway. Francis J. Torrance is heavily interested in both concerns and his confidential man, W. S. Hagan, is secretary of both companies. T. Lee Clark, the dead cashier of the Enterprise, was treasurer of both companies and the bank was the custodian of their bonds, which were held as security for the loans.


Article from Arizona Republican, October 29, 1905

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FRAUD AND CONSPIRACY. Alleged in the Suit Against Andrews. Pittsburg, Oct. 28.-There were several sensational developments today in the investigation of the afairs of the Enterprise National Bank of Allegheny City, and more startling disclosures are expected to follow. National Bank Examiner John B. Cunningham, who is receiver of the Enterprise bank, entered suit this afternoon against W. H. Andrews, Territorial delegate from New Mexico, for over $50,000, charging him with fraudulently conspiring with F. B. Nichols, his private secretary, and T. Lee Clark, the dead cashier of the Enterprise National bank, to unlawfully procure funds by the proceeds of negotiable paper. The information caused quite a sensation, and it is intimated that other suits, involving prominent persons, are to be entered


Article from The Columbian, November 2, 1905

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# POLITICAL OBLIGATIONS # MYSTERIOUSLY ABSTRACTED # FROM BANK ASSETS The Frenzied Financiers of the "Gang" who were caught in the wreck of the Enterprise National Bank of Allegheny City are taking desperate chances in an effort to destroy the evidences of their responsibility for that disaster. In other words, they have stolen or had secreted the notes which represented their obligations to the bank for the state funds taken out for their individual uses. Notes which the bank should hold for large loans to politicians and others are reported missing. Their face value is probably several hundred thousand dollars. The total of this loss is one of the secrets which Receiver Cunningham is keeping to himself. One report is that it will reach as high as $600,000. The most careful and repeated searching among the bank papers has failed to bring the notes to light, although the records of the institution show that they should be there. They are believed to represent the loans which the directors of the broken concern say were made by T. Lee Clark, the suicide cashier, without the knowledge of the board. Clark, before he ended, with a pistol ball, the troubles which were heaped upon him by the Gang, may have destroyed or hidden them. There is evidence that for some months prior to the crash the bank papers were badly mixed. Among the notes which the receiver has found are said to be some old ones, on which the time had expired, with nothing to indicate that they had been paid or renewed. The system by which operations were conducted is one of the deepest mysteries which the government's bank experts have ever been called upon to solve. The possibility is suggested that the politicians who got the money on overdue and unrenewed notes, after pocketing the spoil obtained through Clark, left the cashier to his fate. Then, unable to make good the loss or explain, he killed himself. If the missing notes are never found, it will be an immense relief to those politicians who got the money on them. The bank records are believed to be so imperfect as not to reveal their names. Failure to find the notes which


Article from Danville Intelligencer, November 3, 1905

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POLITICAL OBLIGATIONS MYSTERIOUSLY ABSTRACTED FROM BANK ASSETS The Frenzied Financiers of the "Gang" who were caught in the wreck of the Enterprise National Bank of Allegheny City are taking desperate chances in an effort to destroy the evidences of their responsibility for that disaster. In other words, they have stolen or had secreted the notes which represented their obligations to the bank for the state funds taken out for their individual uses. Notes which the bank should hold for large loans to politicians and others are reported missing. Their face value is probably several hundred thousand dollars. The total of this loss is one of the secrets which Receiver Cunningham is keeping to himself. One report is that it will reach as high as $600,000.


Article from Evening Star, November 4, 1905

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MATTERN. Failed to Discover Condition of the Enterprise National Bank of Allegheny City. W. B. Ridgely, controller of the currency, has removed from the service Bank Examiner R. H. Mattern of the western Pennsylvania examiner's district on account of his failure to discover the conditions existing in the Enterprise National Bank of Allegheny City. The Investigation showed that the conditions leading to the failure of that bank had existed for some time, and that they should have been earlier discovered by the bank examiner. Mr. Ridgely says: "Examiner Mattern's case has been carefully investigated, and he has been given a full opportunity to be heard in his own defense. There is not the slightest ground for suspicion of any criminal intent on the part of Mr. Mattern, or any corrupt collusion with the officers of the bank. He was, however, entirely too credulous in his acceptance of their statements, and careless and inefficient in his examinations." To Succeed Mattern. The controller has assigned to the d'strict made vacant by Mr. Mattern's removal Examiner Owen T. Reeves, jr. Mr. Reeves was formerly an employe of the controller's office, and at one time was acting chief of the reports division. He has had several years' experience as assistant bank examiner in New York city and as a bank examiner in Maryland, New York, Pennsylvania and in other states on special work. He has been detailed to the Department of Justice in many important criminal cases, notably those at Medina, Fredonia and Syracuse, New York. This assignment is made because Mr. Reeves not only has the personal confidence of the controller, but is absolutely free from any political alliances which might in any way Influence him in making thorough examinations of the banks in his district. Mr. Reeves Is an expert accountant. and a critical and thorough examiner. The Controller's Report. Controller Ridgely has sent to Mr. Loeb, secretary to the President, the following letter regarding the investigation into the bank failure: "Your letter of October 21. inclosing by direction of the President a letter from Gov. Pennypacker relative to the Enterprise National Bank of Allegheny, Pa., has been referred to this office. "The day the bank failed I began to make the full, complete and careful investigation that Gov. Pennypacker asks to have made. Mr. Cunningham, the receiver of the bank. who is the examiner who discovered the defalcation and closed the bank. is one of the most competent and efficient men in the service. At the request of the Department of Justice I have detailed to assist him in looking up criminal violations of the law Bank Examiner Edward J. Moxey, who has had a great deal of experience in just such cases. "In addition to this, I have had Judge F. F. Oldham, special attorney of the insolvent division of this office, make two trips to Pittsburg to look into special matters which have been discovered. I have also detailed to assist Mr. Cunningham one expert accountant from this office and a number of other good men who have had experience in receivership cases. "I know of no way in which I could strengthen or improve the organization I have now at work investigating this case, and you may rest assured that a thorough investigation will be made, that every violation of the law that we can discover will be reported to the Department of Justice, that we will collect all the evidence possible, and aid them to the full extent of our power in the prosecution ot any people who have been guilty of any violation of law."


Article from Evening Star, November 4, 1905

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THE WEEK ENDING NOV. 4, 1905. The President, after a fast trip by sea from New Orleans on the U. S cruiser West Virginia, arrived in Washington: he issued his Thanksgiving proclamation, fixing the date for November 30; he met Prince Louis of Battenburg. rear admiral of the British navy, and his suite at a reception given in their honor at the White House. Charles H. Darling retired from the office of assistant secretary of the navy and was succeeded by Truman H. Newberry of Detroit, Mich Secretary Taft and his party arrived at Colon and proceeded to Panama to see President Amador. The Philippine Datto All and several of his followers were killed in battle with United States soldiers The State De partment received the details of the killing of several American missionaries at Lienchow, China. and said that the participants in the attack on the mission would be severely punished and that full reparation would be made by China Rear Admiral Rae, engineer-in-chlef of the navy in his annual report stated that the lack of engineers in the service is becoming alarming. The battleship Rhode Island in trial test made a new mean speed record for battleships of over nineteen knots an hour The United States Supreme Court held that stockholders in national banks have the right to examine the bank's books A monument to J. Sterling Morton was unveiled at Nebraska City Neb., with ap. propriate ceremonies. Attorney General Bryan of Maryland warned the Gorman machine men in that state against violations of the election law That the city of Philadelphia lost over $6,000,000 and that 1,200 needless deaths were caused by typhoid fever due to graft in the contracts for filtration and boulevard works was revealed by a board of special examiners special counsel for Mayor Weaver intl mated that prosecutions will follow the report on the contracts District Attorney Jerome of New York reiterated his promise to criminally prosecute insurance officials found guilty of questionable practices The controller of the currency stated that the shortage of the Enterprise National Bank of Allegheny City Pa will not be less than $1.500,000 John B Cunningham receiver of the bank entered suit against W H. Andrews. territorial delegate from New Mexico, for more than $52,000. Thirteen persons were killed and thirty injured in the wreck of a train on the Atchlson, Topeka and Santa Fe railroad near Kansas City caused by a loose rail Six minor officials of the Pittsburg and Westmoreland Coal Company lost their lives while attempting to enter a burning mine at Hazel Kirk, Pa. Mrs. Catherine Geary of Cambridge. Mass. identified the body found in suit cases in Boston as that of her daughter, Susan an actress Morris Nathan, fiance of the murdered girl, was found in Pittsburg and gave the police there information which they think will lead to the complete solution of the crime; a well known doctor was arrested in Boston charged with having cut up the girl's body An autopsy on the body of Mrs Margaret Todd. an elderly wealthy New York woman, who was found in a mangled condition on a railroad track in Philadelphia, tended to sustain the theory that she was murdered. Foreign Affairs, The Russian emperor granted in large measure the demands of the people for selfgovernment, issuing a manifesto for a cablnet of ministers, with Sergius Witte as the first premier of the empire, freeing all political prisoners and abolishing the press censorship and assuring civil liberty extension of the suffrage and inability to enforce any laws without the consent of the douma the general strike in St. Petersburg was formally raised and railroad trains were being worked through, but deplorable rioting oc curred in the provinces, especially at Odessa, where it was estimated 5,000 persons principally Jews, were killed and wounded during the disorder: disturbances also occurred at Moscow. where ten students were killed by workingmen; at Kleff. where 12 persons were killed and forty wounded and at Kishineff, where a renewal of the Jewish massacres was reported; at Warsaw over 20 persons were killed and 100 wounded by Cossacks, who fired on the crowds foreign residents in south Russia generally appealed to their respective governments for protection. The congress of the Austrian social democrats demanded the immediate convo cation of the reichsrath to substitute for the present parliament a body elected by equal and direct suffrage: grave disorders were caused in Vienna by the socialists demand for universal suffrage, which it was stated. Emperor Francis Joseph has decided to grant Prince von Buelow talked of a new trade treaty between the United States and Germany, for which negotiations are to be begun by Ambassador von Sternburg upon his arrival in Washington The European powers practically agreed on a joint naval demonstration against Turkey unless financial reform for Macedonia is not promptly accepted. Five American missionaries were murdered during an attack on the mission house by Chinese at Lienchow China Rear Admiral Train, commander-inchief of the Asiatic fleet, was assaulted by a mob near Nankin, China and his son held as hostage on account of the accidental shooting of a Chinese woman: Chinese maneuvers carried out by an army of 30.000 men were highly praised by the foreign military attaches. who considered that China has at last the nucleus of a real army Mon tero Rios was charged by the King of Spain with the formation of a new cabinet. The Venezuelan government suspended the dispatch of cable messages to the United States Great Britain and France because a reply had not been received from an agent abroad. In the District President Roosevelt appointed Charles A Stillings of Boston public printer, Prince Louis of Battenburg and his suite arrived in the city and were entertained by President Roosevelt, Secretary Bonaparte, Gen Chaffee and other officials. as well as at the British embassy The board of education decided to retain the services of Mrs. Annie J. Cooper as principal of the M Street High School The new building of the Young Men's Christian Association was formally dedicated The new ferry steamer Wood bury made its initial trip between this city and Alexandria It was discovered that a deficit of $30,000 exists at the Government Hospital for the Insane William W. Karr formerly disbursing officer of the Smithsonian Institution, was sentenced to five years in the penitentiary for embezzlement William H. White, an engi neer. and Clarence C Whitley a colored laborer. were killed; G W Hardy a color ed stoker was perhaps fatally injured, and three other men hurt by an explosion of a steam pipe in the power house of the Potomac Electric Power Company at 14th and B streets; a coroner's jury holding an inquest, decided that their deaths were due to an unavoidable accident Leslie C. Fuller, one of the assistant attorneys of


Article from New-York Tribune, November 5, 1905

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CREEDMOOR QUALIFICATIONS. 7TH REGIMENT, N. G. N. Y., SEASON 1905. Distinguished MarksSharpexperts. shooters. men. Experts. 2 11 17 29 F. S. & N. a S 2 11 10 68 Company A 16 27 48 95 Company B. 16 48 75 96 Company a 7 26 42 92 Company D 9 29 88 41 Company E 6 19 28 95 Company F 5 24 81 88 Company G 8 38 49 06 Company H 14 51 106 64 Company I 14 34 49 105 Company K 99 818 458 .058 Totals 46 176 382 957 Totals 1904 BANK EXAMINER REMOVED. Action in Case of R. H. Mattern, Who Failed to Discover Enterprise Bank's Condition. Washington, Nov. 4.-Controller of the Currency Ridgely to-day removed from the service Bank Examiner R H. Mattern, of the Western Pennsylvania examiners' district, on account of his failure to discover the conditions existing in the Enterprise National Bank of Allegheny City. The investigation showed that the conditions leading to the failure of that bank had existed for some time, and that they should have been earlier discovered by the bank examiner. Mattern's case has been carefully investigated, and he has had a full opportunity to be heard in his own defence. According to & statement issued by Mr. Ridgely, there is not the slightest ground for suspicion of any criminal intent on the part of Mr. Mattern or any corrupt collusion with the officers of the bank. He was, however, it is claimed, entirely too credulous in his acceptance of their statements, and careless and inefficient in his examinations. The Controller has assigned to the district made vacant by Mr. Mattern's removal Owen T. Reeves, jr. Mr. Reeves was formerly an employee of the Controller's office, and at one time was acting chief of the reports division. He has had several years' experience as assistant bank examiner in NewYork City and as a bank examiner in Maryland, New-York, Pennsylvania and in other States on special work. He has been detailed to the Department of Justice in many important criminal cases, notably those at Medina, Fredonia and Syracuse, N. Y.


Article from Santa Fe New Mexican, November 13, 1905

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ANDREWS MAKES A SWEEPING DENIAL Files Answer to Suit Brought By Cunningham. ALL TRANSACTIONS REGULAR Delegate Fully Explains His Connection With Enterprise National Bank. Pittsburg, Nov. 13.-William H. Andrews, territorial delegate from New Mexico, filed an affidavit of defense today to the suit entered against him by John B. Cunningham, receiver of the defunct Enterprise National Bank of Allegheny City. Andrews denies the debt of $10,000 alleged to be due on two checks claimed to have been drawn by F. R. Nichols on the Enterprise Bank to the order of Nichols as bearer and another to the order of Andrews. Just Accommodation. He avers that both checks were drawn at the instance and request of Cashier Clark, for the accommodation of the bank SO as to secure certain currency thereon, for the use of the bank and which currency to the amount of $10,000 was secured thereon from other banks in Pittsburg and paid and delivered into the possession and custody of the Enterprise bank on or about the date of drawing the check. ndrews avers neither he nor Nich<.05 1 ver, in any way, directly or indi.45 P. received any benefit, advantage, 3.30 p 4.05 or cash upon or by virtue of the p 6.30 Andrews avers further that 6.55 4.20 vember 1, 1905, he paid Receiver p 4.50 p igham $17,765 cash on account 7.20 8.10 p 11 claim made in this suit. Makes Denial. Conneenies he ever at any time unthe Denv or fraudulently conspired points in : ols, T. Lee Clark, or any tang. T person to unlawfully procure why mids or that he requested Nichols to execute any negotiable instruments in pursuance of any unlawful conspiracy, or that Frank J. McManus and A. L. Bentley or either of them, or both, ever made or accepted any negotiable instruments, sued upon in this case at the instance and request of the defendant in pursuance of any unlawful conspiracy. Transactions Legal. The defendant says he never at any time procured from the Enterprise Bank any money upon any written instrument sued upon in this case, or any other way, in pursuance or as a result or because of an unlawful or or with the officers or any any acy fraudulent of them, arrangement with his of other the transactions bank congpir- person, or and he avers that all with the bank including those sued upon, were regular, legitimate and done in due course of business and in accordance with correct banking practices.


Article from Santa Fe New Mexican, November 15, 1905

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ANDREWS IS SUED FOR SECOND TIME Receiver Cunningham Claims $91,038 is Due. CLARK'S ESTATE APPRAISED s Dead Cashier of Enterprise Bank Interested in Many Corporations. Pittsburg, Nov. 15.-Another suit on four notes ,aggregating $91,038, was entered today by Receiver John B. ) Cunningham of the defunct Enterprise National Bank of Allegheny City, aganist William H. Andrews, congressional delegate from New Mexico. Estate is Appraised. Private papers of T. Lee Clark, the dead cashier of the Enterprise National Bank of Allegheny, which are under examination by appraisers, appointed to determine the value of Clark's estate, are said to show that Clark's outside financial transactions began 7 years ago, and that he was interested in many corporations, including several mining ventures. Among this holdings at the time of y t his death, it is said, was a half interest t in a string of high bred Kentucky horses. I n Duplicate Books. If the latest reports concerning the f Enterprise bank are true, Receiver t Cunningham is in possession of a dur plicate set of books kept by persons p in the bank between August 25 last, n when the federal examination was t made, and the day the bank closed its d doors. This information comes from t one of the directors of the Enterprise S bank, who appeared to be surprised el that no mention had been previously made of this incident in the examination of the bank's accounts. The finding of the books was some n days subsequent to the suicide of Cashier Clark, and a perusal of them has been of invaluable assistance in t tracing to their source many of the fraudulent financial transactions that wrought the wreck of the bank. It is said Examiner Moxey carried with him to Washington a complete copy of o these accounts, and upon them the federal government will base its cria minal suits. a Employes Are Hit. Just who will be hit by this congi a templated action is a matter of cona jecture. The presumption is that ta Clark had not sole knowledge of these W books, and was not the only person who made entries in them. It is known that certain employes of the Enterprise bank have been compelled to secure the receiver by giving judgment notes and making real estate transfers. Inquiry into th ereason for this ilicits the information th these employes secured loans from the bank that have not yet been met. What ta the sums aggregate is not known, but in Receiver Cunningham insisted that ti these loans be insured by notes and lis property transfers of cquivalent value. B