19117. North Penn Bank (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 18, 1919
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
5147cf7b

Response Measures

None

Description

State banking department closed/took possession of the North Penn Bank on July 18–19, 1919 and appointed a receiver. The closure followed discovery of massive shortages (~$900,000) and apparent embezzlement by the cashier; the institution remained in receivership and did not reopen. Although depositors gathered at the closed doors, the primary cause of the suspension was bank-specific insolvency/false books rather than a rumor-driven run.

Events (4)
1. July 18, 1919 Receivership
Newspaper Excerpt
The state banking department took possession ... J. W. Macburney, treasurer of a local trust company, was appointed receiver.
Source
newspapers
2. July 18, 1919 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State banking department closed the bank as unsound after difficulty realizing on loans and discovery of falsified books and large shortages; later reported shortage of about $900,000.
Newspaper Excerpt
Closing of the North Penn Bank, a state institution in this city ... The state banking department took possession when the doors were closed
Source
newspapers
3. July 19, 1919 Other
Newspaper Excerpt
Small Depositors Wait in Rain After Failure ... the North Penn Bank, a state institution at Twenty-ninth and Dauphin streets closed its doors yesterday. ... it is said that the institution will not open its doors again.
Source
newspapers
4. July 21, 1919 Other
Newspaper Excerpt
The North Penn Bank ... has a shortage of $900,000 and Cashier Ralph T. Moyer has been ordered arrested by Commissioner of Banking John S. Fisher. The commissioner said ... Moyer had confessed ... he had falsified books by substituting loose leaves in the ledgers.
Source
newspapers

Newspaper Articles (23)
1. July 19, 1919 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, July 19, 1919

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NORTH PENN BANK CLOSES ITS DOORS Philadelphia, July 18.-Closing of the North Penn Bank, a state institution in this city with more than $2,000,000 of deposits. today did not come as a surprise to state banking officials. These officers have known, it was learned tonight, that the institution was having difficulty in realizing on loans and every chance was given the officers of the bank to meet its obligations. The state banking department took possession when the doors were closed and later J. W. Macburney, treasurer of a local trust company, was appointed receiver. The true condition of the institution, it is said, cannot be ascertained until the cashier, Ralph T. Moyer, goes over its affairs with the receiver. Mr. Moyer is said to be sick and no statement for publication could be obtained from him. A matter of concern to the state insurance officials was the large amount of funds held by that department on deposit in the bank.

2. July 19, 1919 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, July 19, 1919

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BANK CLOSES DOORS Small Depositors Wait in Rain After Failure Philadelphia, July 19.-Under premptory orders from John S. Fisher, State Commissioner of Banking, the North Penin Bank, a state institution at Twenty-ninth and Dauphin streets closed its doors yesterday. It is said that several million, including $312,000 of State funds, are involved in the failure. Later in the day James W. McBurney, treasurer of the Haddington Trust i Company, was appointed receiver, but it is said that the institution will not open its doors again. Besides having the State as one of its principal depositors, the bank catered to thousands of persons in moderate circumstances. Many of these had and their savings on deposit with the institution. In the drenching downpour of rain yesterday hundreds of luckless deposit ors stood in front of the closed doors of the bank in the faint hope that something might turn up and that they would be reimbursed at once.

3. July 19, 1919 Harrisburg Telegraph Harrisburg, PA
Article from Harrisburg Telegraph, July 19, 1919

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LAFEAN DENIES LOAN OF $10,000; IS ONLY $5,000 And This Will Be Paid to Penna. Bank Which Failed Soon as the Note Is Due By Associated Press. York, July 19. - Former State Banking Commissioner Daniel F. Lafean denied to-day that he was indebted in the sum of $10,000 to the North Penn Bank, of Philadelphia, which institution closed its doors yesterday. He said the only loan from this bank in which he figured was one of $5,000 by a local corporation of which he was a director and treasurer. This, he says, will be paid. on July 28 when the note comes due. Mr. Lefean denied any knowledge of the transfer of State funds from Western Pennsylvania banks to the Philadelphia institution. Immediate investigation of all the circumstances attending the closing of the North Penn bank, of Philadelphia, will be undertaken by State officials. All the facts connected with the placing of deposits of hundreds of thousands of dollars worth of funds gathered by the State Insurance Department for policyholders of the Pittsburgh Life and Trust concern in the bank by Charles A. Ambler when Insurance Commissioner will be looked into and State Insurance and Banking officials will co-operate. State officials here have refused to make any comments upon the developments, but are keenly interested in what may turn up. The story heard last winter that Ambler was retained on a personal plea to the Governor to be allowed to close up the Pittsburgh concern and his sudden superseding by Thomas B. Donaldson, who had been the special deputy commissioner, are being discussed. Banking Commissioner John S. Fisher remained in Harrisburg part of to-day SO as to be in touch with the situation in Philadelphia, - Deputy Commissioner Peter G. Cameron reported personally to him. Governor William C. Sproul also kept in touch with the situation. For months the Governor has been watching the institution and following Commissioner Donaldson's efforts to get the $402.000 of the deposit into other institutions. Commissioner of Banking F'sher has gone to Philadelph'a to be in closer touch with the North Penn Pank. of which James W. McBurney has been named as special receiver to represent the Commissioner.

4. July 21, 1919 Harrisburg Telegraph Harrisburg, PA
Article from Harrisburg Telegraph, July 21, 1919

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Offer to Reopen Bank Still Being Considered In the absence of Governor Sproul and Banking Commissioner Fisher nothing could be said here to-day whether the offer of Philadelphia banks to take over the North Penn Bank of Philadelphia, would be acted upon. Deputy Commissioner P. G. Cameron returned here to-day from Philadelphia, but said that matters were now in the hands of Receiver J. W. McBurney. Deputy Attorney General E. K. Trent is in Philadelphia assisting Deputy Attorney General B. J. Myers in the matter. Insurance Commissioner Thomas B. Donaldson will to-day ask the Allegheny county courts to approve distribution of the 72 1/2 per cent. allotted to the people in the Pittsburgh Life and Trust and if the order is made 16,000 checks will be issued at once. The $227,000 in the cluded in the distribution through reinsurance arrangement.

5. July 22, 1919 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, July 22, 1919

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NORTH PENN BANK HAS $900,000 SHORTAGE Harrisburg, Pa. July 21.-The - North Penn Bank. of Philadelphia, closed by the state banking department last Friday as unsound, has a shortage of $900,000 and Cashier Ralph T. Moyer has been ordered arrested by Commissioner of Banking John S. Fisher. The commissioner said that his information came from Receiver James W. MacBurney, in charge of the bank's affairs by appointment of the commissioner, and that Moyer had confessed to MacBurney that he had falsified books by substituting loose leaves in the ledgers when state bank examiners appeared. The commissioner made known the facts of Moyer's confession as reported to him by MacBurney tonight. According to what the commissioner learned Moyer admitted that the peculations had been going for two years anl that when the state bank examiners came round he would substitute falsified leaves for the proper ones in the ledgers. The commissioner said that the task was now to find the proper records and to ascertain where the money had gor.e.

6. July 22, 1919 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, July 22, 1919

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CASHIER ARRESTED WHEN $900,000 SHORTAGE DISCLOSED HARRISBURG Pa.. July 21.-The North Penn bank of Philadelphia, closed by the state banking department last Friday as unsound, has a shortage of $900,000 and Cashier Ralph T. Moyer has been ordered arrested by Commissioner of Banking John S. Fisher.. The commissioner said that this information came from Receiver James W. MacBurney, in charge of the bank's affairs by appointment of the ocmmissioner and that Moyer had confessed to MacBurney that he had falsified the books by substituting loose leaves into the ledgers when state bank examiners appeared. The commissioner made known the facts of Moyer's confession as reported to him by MacBurney to-night He was in touch with Governor William Sproul, who directed him to go to the limit in investigating the affair of the bank and accertaining where the responsibility lay for its wrecking The commissioner at once directed Receiver MacBurney to secure warrants for arrest of Moyer from the district attorney of Philadelphia.

7. July 22, 1919 The Bennington Evening Banner Bennington, VT
Article from The Bennington Evening Banner, July 22, 1919

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$900,000 SHORT IN FUNDS OF THE NO. PENN. BANK Cashier Ralph Moyer Surrenders to District Attorney CONFESSES TO SHORTAGE Bank Closed Friday Owing Two Million Dollars to DepositorsCashier Under Arrest Philadelphia, July 22.-Ralph T. Moyer, cashier of the North Penn bank, for whom a warrant had been issued, surrendered to the district attorney today. The bank closed last Friday owing more than two million dollars to depositors. Moyer last night conferred to James W. MacBurney, receiver, that there was a shortage of nine hundred thousand dollars. Harrisburg, Penn., July 21.-Commissioner of Banking Fisher announc ed tonight that Ralph T. Moyer, cashier of the North Penn bank of Philadelphia had admitted to James W. McBurney, receiver in charge of the bank, and there was a shortage of $900,000. The commissioner ordered Moyer' arrest. The commissioner said that Moyer had confessed to MacBurney that he had falsified books by substituting loose leaves into the ledgers when state bank examiners appeared. The commissioner said that the best information at hand was that the bank had over-extended itself and made bad loans but could not give any details as yet. State officials said tonight that Moyer would be charged with perjury, embezzlement, misappropriation of bank funds, re-hypothecation of securities, destroying and mutilating records and accepting deposits when the bank was insolvent.

8. July 22, 1919 The Richmond Virginian Richmond, VA
Article from The Richmond Virginian, July 22, 1919

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BANK CASHIER ADMITS SHORTAGE OF $900,000 Harrisburg. Pa., July 21.-Ralphy Meyer, cashier of the North Penn bank, of Philadelphia, which was RUSpended last week by the State Banking commission, confessed today that the shortage of the bank would approximate $900,000. His confession was made to James W. McBurney, the special receiver in charge of the affairs of that institution. Banking Commissioner John S. Fisher gave out this information tonight, which, he said. was received by him from McBurney over the telephone. Commissioner Fisher, immediately on receipt of the information, ordered Meyer's arrest. The cashier faces the possible charge of perjury, embezzlement. misapplication of funds, rehypothecation of securities, destroying and mutilating records of a bank and receiving deposits when it was known to him that the bank was insolvent.

9. July 22, 1919 Evening Star Washington, DC
Article from Evening Star, July 22, 1919

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$900,000 SHORTAGE ADMITTED. Philadelphia Bank's Cashier Confesses to Commissioner. HARRISBURG, Pa., July 22.-Commissioner of Banking John S. Fisher announced last night that Ralph T. Moyer, cashier of the North Penn Bank of Philadelphia, had admitted to James W. McBurney, receiver in charge of the bank, that there was a shortage of $900,000. Moyer-surrendered today,

10. July 23, 1919 Great Falls Daily Tribune Great Falls, MT
Article from Great Falls Daily Tribune, July 23, 1919

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BANKER SURRENDERS. Philadelphia, July 22. Ralph T. Moyer, cashier of the North Penn bank, for whom a warant had been issued. surrendered to the district attorney today. The bank closed last Friday owing more than $2,000,000 to depositors. Moyer last night confessed to James W. Maburney, receiver, that there was a shortage of $900,000.

11. July 23, 1919 Manchester Democrat Manchester, IA
Article from Manchester Democrat, July 23, 1919

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ADMITS HUGE THEFTS Bank ( Cashier in Philadelphia Got Away With $900,000. Admits Taking Money During Two Years but Doesn't Tell How He Spent It. Philadelphia, Pa., July 23.-A complete confession that he has made away with approximately $900,000 from the North Penn bank, of which he was cashier, was made by Ralph T. Moyer. The cashier appeared at the city hall and surrendered himself. According to officials Moyer has admitted taking the money over a peroad of two years. He had consistently covered his peculations by substituting false leaves in ledgers whenever the state bank examiners made an inspection. "We haven't the slightest idea where the money went," said State Commissioner Fisher. "Moyer juggled the accounts. If we can find the missing ledger sheets we can tell what Moyer did with the money." Mr. Fisher was informed that depositors alleged that Moyer, described by friends as "a model family man with no bad habits," speculated in the stock market. Overdrafts, according to James W. MacBurney, receiver of the wrecked bank, constitute most of the $900,000 shortage. MacBurney and Peter G. Cameron, deputy banking commissioner, are said to have discovered about a hundred accounts overdrawn. One of thése is declared to be for $250,000, or $100,000 more than the capital stock of the bank. The name of this depositor is withheld. Moyer, who is about forty years old, told MacBurney that he had not diverted any of the bank funds to his personal use.

12. July 23, 1919 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, July 23, 1919

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# NOW IS THE TIME TO # "CATCH THE ELEPHANTS" For No One Believes the North Penn Bank Was Looted by Mice NO ONE believes that when Ralph T. Moyer, the cashier, was arrested the sole offender in the wrecking of the North Penn Bank was secured. Moyer is said to have confessed guilty knowledge of what was going on. He is charged with malicious perjury, with receiving money from depositors when he knew the bank was insolvent, with appropriating to the use of other persons funds belonging to the bank and property left with the bank as special deposits; with rehypothecating without the consent of their owners securities left with the bank and with intent to defraud by mutilating and falsifying the books of the bank. These charges describe the processes by which the bank was looted of $900,000. Moyer's friends deny that he profited by anything that he did. This denial amounts to a confession that he consented to be the tool of others and actively assisted in covering up their misconduct. But the law holds the tool responsible along with the principal and Moyer, if the charges against him are proved, will have to pay the penalty for his acts. What the public wants to know is who is the head offender. Some one in the bank besides Moyer must have known what was going on. His identity ought to be disclosed through the further investigations of the receiver and the examiners. The men responsible to the depositors and in whose integrity they trusted are the president, the vice presidents, the cashier and the directors. These men are not in an enviable position, whatever the facts may be, for nearly a million dollars intrusted to their care has disappeared. There is only $300,000 with which to make it good-that is, the capital of the bank, amounting to $150,000 (if that be unimpaired), and the liability of the shareholders, amounting to a similar sum. When the cure of abuses in the government of this city was under consideration last winter Governor Sproul remarked that he did not think all the evils could be remedied, "but," said he, "we'll catch the elephants and let the mice escape." The job before him and his banking department just now is to catch the elephants. He discovered early in his administration that something was wrong with the method of handling the funds of the state. This North Penn Bank with a capital of only $150,000 had $400,000 of Insurance Department money placed there by Charles A. Ambler, Governor Brumbaugh's insurance commissioner. Governor Sproul removed Mr. Ambler from office forthwith and he has frankly said that the reason was because Ambler risked so large an amount of the state funds with so small a bank. Men are now asking why this bank was favored. They want to know whether any politicians were using its funds as they used the funds of the defunct People's Bank years ago. In the light of the facts, they want to know whether the removal of William Smith, a capable and efficient banking commissioner, by Governor Brumbaugh several years ago and his replacement by a politician has new significance. Who are the looters? This is the question that is crying aloud for an answer, and this is the question which Governor Sproul is likely to insist, with all the emphasis at his command, shall be answered. Our courts in the past have not hesitated to pursue the guilty even in the highest quarters. The politically powerful have been compelled to stand before the bar of justice and have escaped only through the grace of the statute of limitations. If any little politicians are back of this looting their chances of escape are slight. Fortunately, the statute of limitations will not run in their favor, as the looting apparently did not begin more than two years ago. But whether the elephants are politicians or just everyday crooks, the public will not be satisfied till they are brought out into the open and haled into court. If they have the money they must disgorge. And whether they have it or not, they should stand before the bar along with the arrested cashier. The disclosures have just begun. The whole truth must out for the sake of the good name of the banking institutions of this commonwealth.

13. July 28, 1919 Harrisburg Telegraph Harrisburg, PA
Article from Harrisburg Telegraph, July 28, 1919

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Appeal Taken. The Attorney General's department has taken an appeal to the Supreme Court from the decision of the Dauphin county court in the State tax suit of the Commonwealth and the Lehigh and New England railroad. A principle in taxation of corporation loans is involved. Few Detours-State Highway Department officials to-day announced that because of progress made on State road construction on the William Penn highway the road is almost free of detours between Harrisburg and Philadelphia, while on the Lincoln highway the Ligonier detour has been lifted and one new one established near Farmers in York county and another at Adamsburg. The highway authorities are making an effort to have Fulton county township supervisors improve the roads being used for detours in the neighborhood of Harrisonville. Waking Up More licenses for dogs have been taken out in rural counties this year than heretofore according to reports received at the Capitol from county treasurers, some of whom report a heavy registration of dogs immediately after a series of suits was started against farmers and others owning dogs who failed to secure licenses at the beginning of the year. Observing Streams-Effect of the prolonged rains this month upon the streams of the State, especially where dams are in operation, is being observed by engineers of the State Water Supply Commission. Typical streams were selected and observation made daily with a view to studying summer conditions. Protectors Named-The State Game Commission has promoted to be traveling game protectors under provisions of recent legislation K. B. Rogers, Johnstown; Norman N. Wood, Coatesville; Wadden Simrell, Hallstead, and Hebert Beatty, Franklin. With one exception they have ben in continuous State service for some time. Must Push Work-Work on State highways interrupted by the heavy rains is again in full swing all over Pennsylvania, according to reports at the State Highway Department. Highway Commissioner Sadler, in a statement issued to-day on his recent inspection, said that he had found fifty-two of fifty-nine construction projects at par or above par in spite of weather. Seven contractors have been notified that they must immediately speed up their operations or give up contracts as the department will not permit of any delays. Bank May Be Saved-Hopes are being expressed in Philadelphia that the North Penn bank may be put on its feet again as it is reported that various banks are ready to help and to overcome the overdrafts which were the chief cause of the wreck. Governor Sproul, before leaving for the West, reiterated at Philadelphia the statement made to the Harrisburg Telegraph last Thursday that he hoped to have more frequent examinations of State banks and that it was one of the primary policies of his administration to work it out. Sixty-six Bridges Bids for sixty-six bridges will be opened by the State Highway Commissioner in August. This is the largest single list of bridge contracts ever placed before the bridge building trade. To Name Geologist Secretary of Internal Affairs Woodward stated to-day that he hoped to complete the organization of the new bureau of geological survey in the fall. The Governor, he said, would take up the appointment of a geologist with him. Numerous inquiries about geological and river surveys have been made. Mr. Cameron Returns-Deputy Banking Commissioner P. G. Cameron returned to Harrisburg to-day after spending some days in Philadelphia in connection with the North Penn bank. In Philadelphia-Adjutant General Frank D. Beary was in Philadelphia to-day in conference with Major General W. G. Price, Jr., regarding the make-up of the new National Guard Division. Prominent Men Named-Prominent Philadelphians active in legislative and charter matters here during the session have been named on the committee of 100 to handle the anti-Vare fight in Philadelphia this fall. The announcements were made last night. Big Increase-The Susquehanna Collieries Company, which has mines in the Lykens Valley, filed notice of increase of its debt from $8,300,000 to $11,900,000. The Lancaster Iron Works, Lancaster, filed notice of increase from $300,000 to $500,000.

14. July 29, 1919 Harrisburg Telegraph Harrisburg, PA
Article from Harrisburg Telegraph, July 29, 1919

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MAY ARREST TWO MORE IN CRASH Sensational Turn Given Penn Bank Developments by Announcement Philadelphia, July 29. - Investigations by the State and county into the collapse of the North Penn Bank at Twenty-ninth and Dauphin streets, took a new and sensational turn yesterday, when it was revealed that District Attorney Rotan's detectives are busy with certain information that may lead to two additional arrests in the wrecking of the institution. No hint is given as to the identity of the men now under strict surveillance, nor will James T. Cortelyou, chief of the county detectives, give any inkling as to the line of inquiry which is being pursued. Ralph T. Moyer, the cashier accused of ruining the bank, is at liberty under $25,000 bail, and is due to appear at the Central Police Court late to-day for a hearing. It is believed, however, that the cashier either will ask for a further continuance, or will waive the hearing and let the matter go directly to court. Joseph H. Taulane, Assistant District Attorney, said last night that he was ready to go ahead with the case, and did not hesitate to state that he fully expected to establish a prima facie case against the bank official.

15. August 1, 1919 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, August 1, 1919

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!earned yesterday that he had been employed as a boy by S. J. Rieben, a former director of the bank. Rieben was the indirect cause of a run on the He North Penn Bank some years ago. interested in a western mining project, was and withdrew $10,000 of his deposit there to go West to make a personal investigation of the properties. A rumor got about that linked this with some other circumstances and brought up a flock of depositors about the institution which at the time had considerable difficulty in weathering the storm. Strang was then the paying teller. Rieben returned to Philadelphia for a time, but has since returned West. He also registered as a director of the bank. Colflesh. who was on the verge of a breakdown last Tuesday at Moyer's hearing in Central Station. has recovered his "nerve" and was smiling and confident when he reached the bank this morning. The Motor Sales and Service Comof which Colflesh is now repany. vealed as secretary, was formed ou Iarch 7. 1919. when a partnership agreement was drawn up between Win- Mrs. Sarah F. McClellan, of Darby. field R. Kates, of 3049 North Twenty - is sixth street. and Colflesh, who Kates's uncle. Kates is on the books as treasurer, J. R. McClellan, the husband of and the woman partner. is general manager. McClellan, Kates and Coltlesh each received $50 a week from the company. The in addition to sharing the profits. company deposited altogether about $3000 in the North Pean. Its overdraft. when checked up yesterday. was found to be $15,000 instead of $10,000, all the checks being signed by Kates, the nephew of Colflesh, as treasurer. Kates was married last June and lives only a few doors from Colflesh. beHe was in the automobile business fore joining with Colflesh and Mrs. McCiellan in the Motor Sales concern, which handles second-hand ears. It was said yesterday by one of the investigators that the company has done such a flourishing business since inception. and has such a supply of its accessories and used automobiles on to hand that it will probably be able make good its $15,000 overdraft. The startling statement of Joseph Friedman that he had seen Gottlieb Epple. the bank messenger, take night bags out of the bank late at by of many money times. is being investigated Receiver MaeBurney. Friedman lives at 2457 North Holly street. He had $251 on deposit wood the bank. When he read yesterday at that the probers were of the opinion from that a large sum had been stolen what bank, he determined to tell the knew. He was refused admittance he the receiver, but submitted the folto lowing statement. Although made out in the form of an affidavit it was not subscribed to before a notary: I. Joseph Friedman, 2457 North Hollywood street. do hereby swear that have seen Mr. Epple, the bank runner, I Mr. Moyer's office about 6:30 p. m. of in the evening, pack a suit case full in and carry same out of the bank I money the last year and a half. This have for seen from the back of the synawhich I attend every day and also gogue for the last one and a half months. Every time Mr. Epple sees me he starts to shiver and tries to keep out of my way."

16. August 5, 1919 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, August 5, 1919

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Move to Punish Bank Guilty Today Continued From Page One drew their deposits out of the bank the night before it failed because they had been advised of its condition?' he was asked don't know. Colflesh said. "be cause I never worked at the bank at night. 1 know. though that anybody could dray money out because checks were cashed on the last night.' Of course. a man's got to take his medicine." was the plaint of Moyer, "but some of these things that the newspapers are printing about me amuse me; other things that they say hurt. But they have published a lot of lies about me. Letter of Sproul Colonel Pusey denied that he had re letter on purinstrueting ceived a him from methods Governo. to be Sproul Asked sued in the investigation. t whether such a letter had been received by him. James W. MacBurney. receiver S for the bank. said he had orders from e John S. Fisher. commissioner of bank h ing. to "say nothing. The depositors are i. censed because they have not been taken into the conu fidence of the officials.' he was told. e 'They should go for all information to Mr. Fisher. The directors of the bank will also be called upon for information by Colonel Il Pusey. Louis Michel, the president. will be the first to be called. Charles A. Ambler, former state insurance com missioner. who deposited $402,000 of state funds in the bank and borrowed between $100,000 and $150,000 from the institution. has not yet paid his debt. He failed to call on Mr. Pusey yesterday. although the latter said he I 199 furnished him with a complete list of his loans. made at various times e while he was in public office. h Moyer will be indicted this month. according to prediction of Assistant d District Attorney Taulane. He is now r preparing a summary of the facts which , he will present to the grand jury. S Matter Up to State According to William H. Hutt. dep n uty governor of the Federal Reserve Bank. the United States Government n cannot prosecute the bank officials even g if the depositors lose their Liberty bonds through their peculations. According to Mr. Hutt, this is a matter entirely is for the commonwealth. This bank. like r all others. merely acted as agent for the S United States Government in selling the bonds, and because the North Penn had g no further connection with the Federal Reserve Bank the national authorities are not empowered to prosecute in such a case. The district attorney's office may en y counter a bandicap in prosecuting y Moyer because entries made in the g juggled accounts were made by typewriter. The records do not reveal any handwriting and bear no marks to iden tify the persons who wrote some of the d items. at Depositors Meet Friday t. Depositors will hold another meet nt ing Friday night in the North Penn Theatre, Twenty ninth and York he streets. The depositors' association has ed started a fund for the relief of those e reduced to extreme want by the bank failure. he Louis H. Michel. president of the rt wrecked bank. who conducts a bakery m at Thirty-first and Diamond streets, would not discuss the case today. An interesting incident in the bank scandal is the fact that Moyer and T all the other bonded employes of the North Penn Bank were bonded by Mayor Smith's bonding company er The Mayor is principal owner of the Thomas B. Smith Company, local by agents for the National Surety Com nd pany. a New York concern. o When Moyer was obliged to furnish ne bail following his arrest, William Mor of gan Montgomery, Moyer's attorney 13 was asked if the bail bond would be en obtained from Mayor Smith's com pany. ey r. 'No, we couldn't go to the Smith as company, Mr. Montgomery replied 'We would be criticized for that. Smith was nigh in c. Mayor he knew his company asked had last if bondee r. Moyer and other North Penn Bank em ployes. as go "I haven't been near the office of th ut bonding company, he said. "since a became Mayor. Therefore, I could no I tell you anything about the matter. re a bond were furnished for Moyen, i 3 was done without - handler

17. August 6, 1919 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, August 6, 1919

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North Penn Wreck Sends Insurance Co. to Wall Wreck of the North Penn Bank sends a New York insurance company into receiver's hands. Another company is said to be heavily involved. County detectives early today got warrants for men implicated in the bank smash. Commissioner of Banking Fisher declares his belief that the ruined bank was victimized by an outsider. The commissioner said the "outsider" was a "crook with a notorious record." Charles A. Ambler. former state insurance commissioner. has not yet made good his heavy overdrafts. nccording to state investigators.

18. August 7, 1919 Harrisburg Telegraph Harrisburg, PA
Article from Harrisburg Telegraph, August 7, 1919

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# MOYER "GOAT" # OF DIRECTORS, # FISHER THINKS State Banking Head Believes They Know More Than They Are Telling By Associated Press. Philadelphia, Aug. 7.-Ralph T. Moyer, cashier of the North Penn Bank "has been made the goat by the directors," according to State Banking Commissioner John S. Fisher. Moyer is under $25,000 bai! in connection with the failure. "It is my opinion," said the Com- missioner, "that the directors know considerably more than they are telling." Mr. Fisher announced that $100,000 of the bank's outstanding accounts had been liquidated and that the prospects of further gains in this direction in the near future were good. New Receiver Named Commissioner Fisher also an- nounced that Frederick L. Homsher, of Strasburg, Lancaster county, had been appointed receiver of the North Penn to succeed James W. MacBurney, whose commission was revoked yesterday. Mr. MacBurney was removed, the Commissioner said, on the technical ground that a new State law prohibits an ex- aminer from liquidating an institu- tion which has been taken over by the Banking Department if he has made an examination of its affairs within a year. MacBurney exam- ined the bank last September and resigned as an examiner the first of the year to become an officer im a trust company. When the ap- pointment was made MacBurney did not know of the new law and Commissioner Fisher, who took of- fice in January, was not aware that MacBurney had examined the bank. It is said that MacBurney's report showed the bank was then in bad condition. More than $400,000 of the assets of two insurance companies, it is learned, are tied up in the North Penn Bank, which has an apparent shortage of more than $2,000,000. They are the New York National Insurance Company and the Seneca Fire Insurance Company, both of Buffalo. The New York National was ordered liquidated yesterday by the Supreme Court of Erie county, New York. James J. Boland, of Scranton, Pa., is the president of both com- panies and Commissioner Fisher said that Boland obtained money from the North Penn Bank to pur- chase the two concerns. Later he established accounts at the bank for the two companies as well as a personal account. His personal ac- count, Mr. Fisher said, was over- drawn to the extent of thousands of dollars.

19. August 13, 1919 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, August 13, 1919

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Continued From Page One overhead. unflecked by cloud. and with verdure-clad slopes of old White in the Face Mountain towering 4000 feet distance. Attorney General Schaf Af the fer discussed at length the tangled fairs of the 1-fated bank. Pauses in the conversation ensued he essayed some difficult shot on in when the match which he was playing nine-hole course with Commodore the of the Lake Placid Yecht Club, and Lyman. Mr. Norman. A lawyer. of Lancas Mr. ter. Pa. and a personal friend of SchafTer. Wearing light gray weeds. with rus shoes gray homespun stockings. a shirt and flowing scarf. the head striped law department of Pennsylva his of the who is summering here with nia. made a debonnaire golfer, not family. withstanding that Commodore Lyman's prowess won the game. on the broad veranda of Lake the Later. Face Inn. the waters of White Placid spread before him. and following General midday meal. Attorney in the Rettled himself comfortably gave Schaffer wicker cushioned chair bank. and attention a large to the subject of the Approves Pusey's Stand talked slowly and emphasized interest his He at times. evincing keen and remarks matter under discussion. an in the with evident appreciation LEDGER he read the EVENING PUBLIC Pusey article quoted in Colonel Fred Taylor which the arrest of James ns wishing the for New York and Scranton Bo Boland. promoter and designating North insurance land as **the big crook" in the Penn Bank wreck. was the first interview. save PUBLIC one It by the EVENING which had obtained the telephone LEDGER by Attorney of been given over the closing of General the doors Schaf be fer since on July 18. Previously might the bank undue publicity carried on. prove had declared harmful to the investigation being f Pusey said Mr. Schaffer. to "Colonel giving his particular who attention is said the "is relations of Boland. defunct New York to Fire Insurance National Fire Insurance control the now Company Company. and of to proceed New the Seneca propose York. with the North against authorizes. Penn Boland Bank. in We way that the law every can proceed in this certainty investigation be to "We establish our of the facts men to a to whom skip sus- is picion cause none points dare and to the skip. state's To arm is to confess guilt. reach any man who not on hand long enough to when he is wanted in matter of this kind. I be Facts Are Most Important are to If criminal proceedings of course. the thing Criminal brought most important against of any your one. facts. is to be are absolutely sure on facts pan and amount done thing that must be proceedings flash **The in the not based mess is to be to nothing some thing real. be accomplished a if connection courts with and must real this things complete in the knowl. crim after inal investigation and a of the relation edge of the to the plundered of y of full every facts and bank. n one investigation then the facts will which grow out legal be canvassed by the The complete questions shortly be finished. and Deputy Myers, of t a the Attorney evidence Pusey General will and myself. Bernard telegraphic J. com le o Colonel been in Myers. and he the munication come here to go days. ..I have with Mr. few over go I may either with me in a to if I confidence e or whole Philadelphia situation deem it My essential Pusey I will is in com Mr. y in Colonel handle presents is itself plete. Myers and legal and I know situation that they which handled. will : every it ought to be if e S. Fisher as to Aid in Prosecution John to Commissioner unturned n Banking no stone those will which point d who Rotan develop are criminally and his Fisher the leave facts guilty. associate. and to Dis triet will see to Mr. Taulane. indicating grand developed Attorney criminality of it that the every fact the attention laid or brought to are n fore y jury when indictments of Raiph be e T it. already made Louis V The of the William is Moyer. Michel. arrests cashier the president clerk. bank and have of been , T. Gabell, developed will after future arrests be made made H. the facts director and brought fully warranting them. as new facts are as t light is another very and important that is that There this affair. shall be recovered he pect to possible who trusted or the every dollar the depositors ill-fated and saved men in for charge of this rs will office re bank. ..The attorney on behalf general's of the man banking liable commissioner bring suits against every in any way. and not in "The attorney Banking general's of Department. the department. with state the govern dut A the the department charged of the cit primarily the wrecking Bank ins ment investigating know that his a of and I personally Fisher is pursuing r Mr to I assigned Commissioner ing vestigations request. the limit. the invest v"At his legal side of Colone as to the also employed attorney Pusey tigation. Myers and a special assistant general. of WD law Both Gives Praise to Rotan are y. and he of these gentlemen experience. The question er out of ability the legal the arising have yers been solving of the situation as

20. August 27, 1919 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, August 27, 1919

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FIRM TOTTERING DUE TO NORTH PENN CRASH Probers Say Concern Must Pay or a Receiver Will Be Appointed AMBLER GIVES MORE CASH Conferences in relation to the North Penn Bank failure between B. J. Myers. deputy attorney general. and Colonel Fred Taylor Pusey, special deputy attorney general. it was said today may result in the appointment of a receiver for a Philadelphia firm. doing a large business. unless the concern can produce collateral to cover its indebtedness to the North Penn. This firm owes the bank a large sum because of overdrafts, it was said. As the concern has been unable to get Its usual credits since the bank failed its business has been seriously crippled. Colonel Pusey said today that he thought the North Penn failure had received too much publicity in connection with the list of debtors. The credit of these debtors has been shaken and this, he said. imperited the collection of several hundred thousand dollars due the bank. Ambler Pays Some of Debt Charles A. Ambler, former insurance commissioner. now under $15,000 bail. paid today the final installment on a $27,500 claim held against him by the bank. The first payment was made before he was arrested in connection with the failure. The second payment was made last Friday. when he turned over a sum of money paid by the state of Maryland to the Ambler-Davis Company. contractors. on a road contract. Colonel Pusey went with Ambler to Baltimore to collect this money. The final payment was made by Harry S. Ambler. lawyer and brother of the former insurance commissioner. This does not wipe out all claims against Ambler. About $130,000 is still claimed by the bank. including overdrafts amounting to about. $60. 000. Some of Ambler's checks are held by a Philadelphia bank and Colonel Pusey is endeavoring to haye him meet payment on these in the hope of simplifying the settlement of the North Penn affairs. Another Arrest Soon Investigators at work on the bank tangle hinted today that there would be another important arrest. Information as to the possibility of such a step was refused by Assistant District Attorneys Joseph H. Taulane and James Gav Gordon. Jr.. who have charge of the prosecutions grewing out of the wrecking of the bank. James J. Boland. insurance promoter. whose two companies, the New York National and the Seneca ire Insurance Company. are being liquidated by the New York State Insurance Department. following colianse of the Pentr Bank. has refused to come to this city to aid in unraveling the financial tangle of the institution. Anouncement that Ralph T. Moyer, accused cashier of the bank, had made an unsuccessful attempt to induce the insurance promoter to come here and explain his connection with the North Penn Bank and just how his financial wizardry neted him something like $380,000. without adequate security, was made by Moyer's counsel, W. M. Montgomery.

21. August 29, 1919 The Democratic Advocate Westminster, MD
Article from The Democratic Advocate, August 29, 1919

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Mr. and Mrs. John Skinner, Baltimore, were visitors of Mr. and Mrs. J. D. Crowl, Center street, this week. Mr. and Mrs. John Truss, Baltimore, were Sunday guests at the same place. Misses Irene, Nellie and Louise Lippy, Charlotte Zepp, Margaret Michael, Earl Lippy and Lawrence Zepp, this city spent Tuesday at Gwynn Oak and Druid Hill Parks, Baltimore. Mr. and Mrs. Edgar Smith and Mrs. Arthur W. Smith and son, Ray, of Dayton, Ohio, have returned home after spending a pleasant visit to their mother, Mrs. Harry Smith, of near Marston. Mr. and Mrs. J. Burner and daughters, Elizabeth, Gladys and Virginia, took a touring trip to Virginia to spend a week. They also spent a few days in Hagerstown with their mother and friends. It cost Nessin Hiken, of Milwaukee, Wis., $25 to recover a 50-cent handkerchief which his wife had accidentally dropped into another automobile. Hiken caught the car. He was pinched for speeding. It is said that spring clothes will cost most. However, we can go into training by wearing a thin summer suit in the winter, and if we survive till spring we shall be SO tough that we shall need no clothes at all. Sergt. T. B. Myers, of the 81st F. A., who is stationed in Kentucky. is now touring the country recruiting for the Army and visited his parents, F. H. Myers, Mount Pleasant a few days. He returned to Tennessee. William Stimax, who is at the Union Protestant Infirmary suffering from injuries received by being struck by the Hagerstown express at Cranberry on August 21, is improving and is expected home next week. The farmers will now have to look out for a new crop pest-the corn horer. This insect is said to have been imported from Europe, like the Bolshevik, and it's none too soon to start vigorous measures against him. Mr. and Mrs. Frank Beachtel, Mr. Edward Slifer. Mr. and Mrs. Albert Kindig and son, Allen, Mr. and Mrs. Luther Slifer and Miss Minnie Harner. all of Littlestown, Pa., sent Sunday with Mr. and Mrs. Henry Willet, Mt. Pleasant. Chief of Police John A. Stem, East Green street, has improved SO much in the past two weeks that he is permitted to leave his residence. He has been automobiling a few times. Patrolmen Stem has been ill about two months from being overcome by the heat. Long Island City grave diggers are on strike for $4 a day, and the high cost of dying may come to rival the high cost of being sick, with $3 a visit for the doctor. That dying comes only once in a life time, however, is a consideration not to be ignored. It appears that we are now to have jokes of the aircraft, aerial humor, as it were. Take, for instance, this, picked up from an English paper: Small Boy (to pilot)-If you be a-goin' up, zur, would ye see if ye can find Billy's kite driftin' about, wot e lorst larst Toosday? How do you know it was whisky and not a substitute, asked the attorney for an accused saloonkeeper at Pittsburgh. "I've been a whisky gauger for 20 years,' was the reply by the witness. "That's sufficient, I think,' the judge concluded, and the saloonist was held for court. By driving his Dodge Sedan through a wire fence/ opposite the old tollgate proerty on the Baltimore pike Tuesday afternoon the owner prevented a smash up with another automobile. The Dodge was considerably damaged in front and had to be towed to Klee & Hoff's garage for repairs. Those who spent Sunday at the home of Wm. H. Meyers and wife were as follows: Mr. John Seipp and wife, of Baltimore; Mr. Harry Black, wife and children, Frances, George and Clayton Black and Albert Hann, of Manchester; Mr. Clarence Feeser, wife and daughter, Nadine, and Mr. Floyd Geiman and wife, of Deep Run. Md. The Real Estate Company sold for D. Snider Stephan his properties and lots on Carroll street Tuesday to the following: "Paul I. Whitmore and William R. Bowman, double weatherboarded house and 38 foot lot, subject to a ground rent of $3 annually for $3450. Thomas Babylon, 141 feet, with an annual ground rent of $9 for $2100. Daniel F. Lafean, former state commissioner of banking, was arrested in York, Pa., charged with being implicated in the wrecking of the North Penn Bank, of Philadelphia. The warrant for the arrest was issued by the district attorney of Philadelphia. It charges that he permitted the wrecked bank to remain open knowing it to be insolvent. Mr. Wm. Frizzell and Misses Gertrude and Cora Green, of near Statewood, motored to Baltimore Sunday August 24 and there joined Mr. Oscar Green, Mrs. John Carney, Misses Theima Green and girl friend, Ruth, and spent the day on the steamer Dreamland to Cheasapeake beach. The scenery was gorgeous on land and water. Everyone returned home happy after spending such a pleasant trip on the water. Mr. Luther L. Bankard, Bond street, formerly with the Western Maryland Railway, with offices in Baltimore, has accepted a similar position with the U. S. Railroad administration in the car service sec-

22. September 23, 1919 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, September 23, 1919

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# VICTIMS OF BANK # PLAN TO OPEN ONE North Penn Depositors Believe Trust Company in Building Would Pay ONLY $769,149 COLLECTED Establishment of a title and trust company at the defunct North Penn Bank, Twenty-ninth and Dauphin streets, is planned by depositors of the Institution. The plan, if worked out to its maturity, would, depositors believe, net them a large return on their money. Prosecution of former officers and directors of the institution has been asked of Colonel Fred Taylor Pusey, special deputy attorney general, by Leo Weinrott, lawyer for many depositors. He threatens legal action by his clients if the state authorities do not act, and quickly. The report of the appraisers of the assets of the bank just made public shows assets of only $769,149.56 to be applied against net liabilities of $3,549,466.04. The plan to rehabilitate the bank as a title and trust company was formulated last night at a meeting of several of the large depositors in the bank. The plan briefly provides for the sale of $300,000 of stock to the stockholders and others. Depositors would be paid immediately 50 per cent of the money that is returned to them by the receivers and would allow the remaining one-half to remain in the bank for a four-month period. Deferred stock would be issued to every depositor who stands to lose money in the present liquidation to cover the full amount of his loss. It would be given to him free. A large manufacturer will be asked to head the new company. The depositors who are fostering the new trust company point to several trust companies in the vicinity which are paying dividends as high as 20 per cent. They declare the trust company would be permitted to handle business that would be inaccessible to a bank. After the institution is running properly, 6 per cent would be allowed the holders of the $300,000 capital stock. All money above that figure would be collected and paid to the depositors on their shares of the deferred stock. Thus, if the institution is established on a paying basis, its sponsors declare, the depositors will receive back every cent they placed in the ill-fated institution.

23. April 27, 1920 Evening Public Ledger Philadelphia, PA
Article from Evening Public Ledger, April 27, 1920

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GIRL SAYS MOYER PASSED BAD CHECKS North Penn Had $725,000 In Overdrafts When Bank Failed, Witnesses Declare UPHOLD CLERK'S CHARGES Overdrafts on the books of the North Penn Bank totaled $725,000 June last, when Ralph T. Moyer. cashier who is now on trial for perjury. made his alleged perjured account of the bank's finances to the State Banking Commissioner This developed today through the tes timony of the bank three girl book keepers on the so-called individual ledgers Helen G Carr Margaret Regan and Marie T. Scirup. employed under Wal ter C. Colflesh bookkeeper. testified that the overdrafts on their books came to the followi ing totals Ledger Q. to % $60,000; 11. to P. $265,000 A. to G $400,000 These. with some small miscellaneous items, brought the total up to $725,000 Moyer went on trial before Judge a Davis, in Quarter Sessions Court week ago last Monday The witnesses called today were largely corrobora tive. Fictitious Account Found The session was not without it. ex citement The principal incident of sensational nature was when Miss Regan pretty twenty old bookkeeper the 11. to P individual ledger testified that a fictitious account in the name of "John Jones had been overdrawn to a total of $3532.55 The witness tall and slender and dressed all in black relieved by a rope of pearls suspended round her throat said she had worked for the bank from the time she was seventeen years old. first a telephone operator and then as a bookkeper at $75 a month of Moyer own account was one She those in Miss Regan's charge testified it was overdrawn $4720.01 on June : S What other accounts were over drawn? asked Joseph A. Taulane sistant district attorney in charge of the prosecution. There was the account of John Jonues. overdrawn $3532.55 on June answered the witness Who was John Jones asked Mr Taulane That was a miscellaneous no answered the girl. Jones "Just an Account Then he was not a person was just an account There was commotion in the court room at this testimony every one turn ing their heads. many half rising scats William \ Gray Moyer's counsel held hurried whispered conversation lieft. apparently taken aback testimony girl' That usi profit and loss account isn asked Mr Gray of the girl don't know she answered d Some of the large accounts overdrawn on June according to the girl's test the Longaker Construction which had been overdrawn 833 24.30 since October 23 1918. no sub sequent change being made in the ac count McCloskey & Bahles $180. 589 40 Eugene Mayer $6297 56: Oak land Lumber Co. $11,148.85 Explains Bank's Methods Miss Carr trim. smartly dressed an air of self possession explaine d Hearly what had been her practice bookkeeper on the individual ledger letters % The ledgers themselves wheeled in. large card cabinets metal She testified she started to work for the bank November 25 1918 She tole of account. that of Oscar Silver which she said had been overdrawn fro: time until the bank failure Checks had come in. she titled against this account at between January 1919 until bank closed Checks marked N. S meaning not sufficient and sent back to the paying teller said the witness The witness testified that this account was overdrawn 88247 10 when she cam and $19,536.12 on June 2 when the a leged false report was made to Har al risburg Says Moyer Approved Checks a She identified three checks. two them certified for relatively sma amounts on the Silver account three she said. were passed by Moy and by consulting the card index al wed that on the dates of all thre the account had been overdraw by from $12,000 to $14,000. ed an Moyer counsel succeeded in block ing a question asked by Mr. Taulan bring out the general condition the Silver account when the bank failed The witness told of other overdrat gh accounts which she knew about cluding that of the Stenton Athleti Club. of which Mover was treasure which was $3,443.99 on June Says System Was Lax I at first marked these checks ut and sent them down. she testified on 'until I learned that Mr Moyer treasurer and as he already had signe so the . hecks in this capacity did need to see them The witness testified she had not take trial balance off her ledger until ask do so by Colflesh a week before of bank closed nd When came to do it I found th overdraft cards gone They had bee of there the night before I had to mak Is the trial balance without them Later she said. Colflesh had told girl bookkeepers to put the overdra de cards back into the ledgers. The he ness said she had not made out list overdraft cards in the interim nor her neighbor Miss Began, next ledger