368c305dFull suspension, Books examined
Other: Extensive criminal investigations, appraisals and receivership followed the suspension; liquidation proceeded and receivers sold/blocked asset sales by court order.
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STAGNATION OF COAL INDUSTRY IS BLAMED FOR BANK'S CLOSING Pittsburgh, April ment made to-day that the property of the Carnegie Coal Company had been returned ownSanford Stoneroad, by John president the banks Carnegie, suburb, which closed doors terms the transfer were not Depositors of the Carnegie Trust Company began passbooks affairs. First remained taken their negle may its doors to depositors closing the Carnegie serve been the requirements tained dustry for
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CARNEGIE TRUST PROBERS CONFER Governors' Special Auditor Goes Over Affairs With Examiners in Charge. TO CHECK RECORDS After three days of familiarizing himself the affairs of the close) Carnegie Company, Charles H. Graff, first assistant secretary of the State Banking Department, and directing the probe Gov. Gifford Pinchot has ordered into the reasons for the bank's failure. is expected shortly to return to Harrisburg to check with the records of the Banking Department the results of his investigations here. Special Auditor Here. Mr. Graff, with Deputy Bank Examiner Frank W. Jackson, in charge of the bank as receiver, yesterday met there William L. McGee, head of Philadelphia firm of expert accountants the Governor has engaged for an audit of the bank's books, after Mr. McGee, earlier in the day, met here Col. Charles C. McGovern, special investigator, and Deputy Attorney General Frank Golmar. Confer With Humes. No disclosures were made of the results of the day's activities by any of those concerned. At the end of the day all met in the office of former United States Attorney E. Lowry Humes, special counsel for the State Banking Department.
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DEPT. ACTS BELL Insists That Code Be Adhered to and That No Hasty Action Be Taken OPPOSITION TO GOVERNOR Attorney General Says Far Too Early to Talk of Criminal Action PITTSBURGH. July 28. Arguments for and against the filing suits with criminal the recent failure Carnegie Trust Company, which John Bell marked all-day conference between AttorGeneral George Woodruff the various investigators into the bank's affairs. Investigators for Governor Pinchot urged that filed, while representatives State Banking Department insisted that the code adhered be taken No decision was Charges Not Checked. State representatives intended file today but attorney learned ference that the proposed charges had not the conference Mr. Woodruff the not reached the bring criminal suits, such action being taken this Those who conferred with the attorney general were Major McGovern, special investigator for the Governor; Frank Gollmar, McGee, accountant; Major Humes, special for the Bank Department, and Frank Jackson, receiver. He also talked with members the executive committee and counsel the depositors Carnegie, who their case before him.
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FILING OF BELL BANK CRASH SUITS HITS SNAG Probers Clash at Conference Over Method of Proceeding in Prosecutions Resulting From Closing of Carnegie Trust Company. Bitter clashes over the filing of criminal suits against the men held responsible for the crash of the Carnegie Trust Company of which John A Bell formerly was president. marked an all-day conference yesterday in the William Penn Hotel attended by probers and Attorney General George W. Woodruff. Representatives of the State Banking Department heatedly insisted that the banking code be adhered to in the matter of bringing the suits, while investigators for Gov. Pinchot were insistent in their plan to go ahead with them. The result that apparently nothing of importance was accomplished. The state's intention to file the suits yesterday or today struck snag. Attorney General Woodruff learned at the conference that the informations or indictments had not been checked to the charges they will contain course generally in such cases. This work will get under way today. May File Suits This Week. As he emerged from the conference room Mr. Woodruff said the investihad not the stage to bring the suits, but there was possibility of such action being taken this week. He declined to say whether there would be one or more arrests. When asked if bankruptcy proceedings would be started against Mr. Bell, Attorney General Woodruff replied that step up to creditors. He said if such action was was hardly likely that would come before September of the courts being closed for the summer. Many Attended Conferences. Attorney General Woodruff was in conference from the time he arrived in Pittsburgh early yesterday until he left for Harrisburg at o'clock last night. Those conferred with him were Maj. C. C. McGovern, special investigator for Gov. Pinchot; Frank Gollmar, deputy attorney general; William L. McGee, Philadelphia countant; Maj. E. Lowry Humes, special for the State Banking Department and Frank W. Jackson, bank receiver. He met Attorney Homer N. Young counsel for the Small Depositors' Protective Organization of Carnegie, and seven members of the executive committee of the organization, who their case before the Attorney General. Attorney General Woodruff also conferred with Attorney W. Clyde Grubbs, counsel for surety bonding company which has been linked with the bank's failure. The attorney general was no change in the plan to hold a hearing in Harrisburg August 18 with view of revoking the licenses of bonding companies mixed up in the affairs of the bank. The hearing probably will be adjourned to Pittsburgh, he declared. First Suits Started. The first suits out of the closed First Bank of Carentered yesterday in Common Pleas Court by R. F. Marburger, receiver of the aainst George W. Wood and P. M. Chidester. The complaints against the men said they delivered promissory notes aggregating to the bank in 1922, but refused to pay them. Wood is sued for $10,000. It is alleged he executed a, note October 1922, payable six months later As collateral he is alleged to have given 1,000 shares of the Automobile Securities Company, but, the bill says, he failed to pay up at the date of maturity. Chidester, from whom $20,000 is demanded. delivered note July 1, 1922. and payable six months later, but failed to pay it, the bill charged. adding he pledged 2,000 shares of the securities company as security. Attorney General Woodruff made public letter he said he had sent County Treasurer Samuel D. Foster last Saturday in which he said Mr. Foster was "morally" to blame for the $322,579 26 of county delinquent tax funds tied up in the trust company. Mr. Foster said he had not received the letter as yet. Statement Is Issued. A statement issued by H. H Patterson. chairman of the creditors' committee for Mr. Bell. saying that as result an reached Saturday all directors of the Harmon Creek Coal Company directors eliminated as defendants, but the action becomes one of accounting between the company and H. F. Sin New York oil man, and George H. Flinn. The agreement stipulated that the defendants not extend lien of mortgage of coal lands without court action. His statement: result of the agreement reached on Saturday all directors of the Harmon Creek Coal Company as directors are eliminated as defend. ants and the action one of accounting as the company and George H. Flinn and H. F. Sinclair. Joseph T. M. Stoneroad and R. B. Haverstick, active in the management of the Harmon Creek Coal Company at the present time. were not associated with Flinn and Sin. clair, the defendants, at the time of the transactions complained Messrs. Stoneroad and Haverstick are with the majority directors in the said agreement and are in favor of all between the pany and others, which are right and
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ARGUE ON CRIMINAL SUITS IN BANK CASE Pinchot Probers Want Suits Filed-Banking Department Insists on Banking Code. HARRISBURG, July 29.-Appointment of B. B. Blackburn, president of the First National Bank, Oakmont, and J. H. McGinnity, trust officer and secretary of the Pittsburgh Trust Company, Pittsburgh, to appraise the assets of the Carnegie Trust Company, Carnegie, was announced today at the Department of Banking. The institution was taken over by the Department last April. PITTSBURG. July 29. Arguments for and against the filing of criminal suits in connection with the recent failure of the Carnegie Trust Company, of which John A. Bell, was president. marked an allday conference here today between Attorney General George W. Woodruff and the various investigators inquiring into the bank's affairs. Investigators for Governor Pinchot urged that suits be filed. while representatives of the State Banking Department insisted that the banking code be adhered to and that no hasty action be taken. No decision was reached. State representatives intended to file suits today or tomorrow, but the Attorney General learned at the conference that the proposed charges had not been checked. After the conference Mr. Woodruff said the investigation had not reached the stage to bring criminal suits, although there was a possibility of such action being taken this week. Those who conferred with the Attorney General were Major C. C. McGovern. special investigator for the Governor: Frank I. Gollmar. deputy attorney general; W. L. McGee, accountant: Major E. Lowry Humes, special counsel for the Banking Department and Frank W. Jackson. bank receiver. He also talked with seven members of the executive committee and counsel for the small depositors' protective organization of Carnegie, who laid their case before him. The first suits growing out of the closed First National Bank of Carnegle, also a Bell institution. were filed in common pleas court today by R. F. Marburger, receiver for the bank, against, George W. Wood and P. M. Chidester. Defend-
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BANK INVENTORY STARTS MONDAY Carnegie Trust Appraisers Make Preliminary Plans for Their Work. TRIAL IN SEPTEMBER The work of salvaging assets of the Carnegie Trust Company, John A. Bell's bank, which suspended business April 27, will get under way formally Monday, it was announced last night by Maj E. Lowry Humes, special counsel for the State Banking Department. There were new developments in the case yesterday The appraisers, D. B. Blackburn. president of the First National Bank of Oakmont and an independent coal operator, and J. H. McGinnity, trust officer and secretary of the Pittsburgh Trust Company. met yesterday for the first time in Maj. Humes' office. Appraisers Making Plans. Mr. Blackburn and Mr. McGinnity spend today and tomorrow makpreliminary plans for appraisal of the bank's assets and will begin tive work They pected to finish the appraisement in weeks, or August 17. in close touch with the situation say work cannot completed before that date because of the tangled affairs of the bank. the assets ascertained the "Nquidation of the bank will begin, it said. No decision has been reached as yet by investigators to criminal suits will be instituted against the persons held responsible for the failure of the trust company The action not be taken until *next week, if then, one declared. First Trial in September. The first suit growing out of the affairs will be tried in ComPleas Court the middle of September. Counsel for Peter G. Cameron, secretary of state banking, yesterday filed Common Pleas Court a precipe asking that his suit against
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Bill Asks for Receiver Pittsburgh. Pa.-A petition in United States court. filed by attorneys for John A. Bell, asked that a receiver be apointed to look after the assets of the head of the closed Carnegie Trust company.
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BELL BANK DEPOSITORS MAY GET 31C. ON DOLLAR Pittsburgh, Sept. of the closed Carnegie Trust Company, of which John Bell president, amounted to $4,821, with an estimated value according an praisal of the assets filed office today by Maj. Lowry Humes, special counsel the State Banking Department. The inventory placed the bank's liabilities when the institution closed April Should the State realize the full amount of the appraisal, was pointed out, the depositors, numbering about 10,000 would receive cents on the dolThe work of converting the assets into cash payment to positors begin tomorrow, Frank W. Jackson, bank receiver said. The statement revealed that liabilities included savings accounts amounting which was deposited by school children of Carnegie. The bank had cash hand banks amounting to when closed, report said, and general claims amounted to $1,054,540.62.
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New NEW YORK, Sept. 3-Canal Street is the aorta through which New York each morning pumps its life blood into its great arteries of commerce. The subways disgorge their great masses of humans like spawn spewed from holes in the ground. Men, women, girls and boys pour forth in a solid body and gradually break into groups, stringing out in all directions. Those you see on Canal Street are on their way to jobs, not positions. They are wage-e not salaried employes. They are the lowliest of the lowly. believe more common people are bottled up in the confines of Canal Street during the rush hours than in any area of similar size any where. Young girls predominate. Most of them are hardly in their teens, spindle-legged, colorless, drawn-out little creatures. There they go, running, hurrying, hurrying, hurrying Pellmell they go, as other children run to play; yet it is not with zest for work that these young girls rush to their jobs. They are racing against the time-clock they must punch. In five minutes counted ten crippled and deformed girls. And many others gave evidence of dull intellects. There were quite a few women in widow's weeds. They do not watch and weep; while they weep they must work. And there in the scurrying throng were haggard, wrinkled, toilworn old women, women who had come to time in life when rest should have been their lot. And so they hurried on eyes ahead to the day's work with little heed to the rising run painting its color poem in the sky. Only pallid light of murky Canal Street was reflected in their pallid faces. The position of policeman possesses new glamor for me after witnessing the way in wrich crowds were cleared from the docks at pier fire the other night. cop in flivver charged the crowd with his machine. He handled it with such dexterity that he could dash to within inch or two of the crowd and do no more harm to anyone than to cause heart disease. Just when it seemed that he would run down at least half dozen women and children he would put on the breaks, throw the flivver into reverse and take side swipe at another section of the crowd. One immense pier was cleared in two minutes in -Tit-Bis. that manner. It was more thrilling to watch than a flivver polo game. JAMES W. DEAN. BELL BANK DEPOSITORS MAY GET 31C. ON DOLLAR PITTSBURGH, Sept. 3 (P)-Assets of the closed Carnegie Trust Company, of which John A. Bell was president, amounted to with an estimated value of according to an appraisal of the assets filed in the prothonotary's office yesterday by Maj. E. Lowry Humes, special counsel of the State Banking Department. The inventory placed the bank's liabilities at $5,136,624.48 when the institution closed April 27. Should the State realize the full amount of the appraisal, it was pointed out, the depositors, numbering bout 10,000 would receive approximately 31 cents on the dollar. The work of converting the assets into cash for payment to depositors will begin today, Frank W. Jackson, bank receiver said. The statement revealed that liabilities included savings accounts mounting to $1,451,197.75. of which $18 was deposited by school children of Carnegie The bank had cash on hand and in banks amounting to when it closed, the report said, and general claims amounted to $1,054,540.62.
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ESTIMATE OF BANK ASSETS SHOWS HUGE DEPRECIATION Appraisal Filed Here-Begin Converting Properties Into Cash Today-No Dividends Soon. Depositors of the defunct Carnegie Trust Company, John A. Bell's bank, may be paid cents on the dollar. This indicated yesterday a copy of the appraisal of the assets of the bank was filed in the Prothonotary's by Maj E. Lowry Humes. special of the State Banking The appraisement placed the assets at 71 and valued them at $1,234,707 The inventory showed the bank liabilities of $5,136.624 48 when it closed April 27. First Payment Months Away. Should the state realize the full amount of the appraisal the deposiwould get cents on the dollar. The work of converting the assets into money for payment to the depositors will get under way today. according to Frank W. bank receiver. Announcement made several weeks ago in Harrisburg that first payment could not be made until then. The statement revealed the liabilities included savings accounts aggre. gating $1,451,197 75, of which was deposited by school children of At the time the bank went on the rocks it cash on hand and in banks amounting to according to the appraisement. The cash was valued at $235,031 30. General claims aggregated $1,054,540.62 The statement divulged that most of the money by the bank loaned to Mr. Bell or to companies with which he was associated. The Bankrupt banker or some of his companies either made or
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STATE BANKING DEPT. LOSES SUIT OVER BONDS (Special to the Republican) PITTSBURGH, Oct. 19.-The State Banking department lost a suit to recover $800,000 in bonds that had been given by Allegheny county's delinquent tax collector and county poor board as security for deposits in the defunct Carnegie Trust Company. The common pleas court dismissed the suit filed by Secretary of Banking Cameron who sought to have bonds of Carnegic Coal company returned to the bank receiver.
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BELL BANK RECEIVERS STOCK SALE HALTED Court Enjoins Them From Selling Shares Given as Sossong Security. M. Cibson the Federal Court yesterday handed down a decree in which receivers of the defunct Carnegie Trust Company and their and enjoined from disposing beNovember of 147 shares of the the County Coal Company of Alabama. trust company holds the stock as collateral senotes given by WIIliam bankrupt A hearing will be held on November 30 on petition filed by the Dollar Savings and Trust Company of Pittsburgh receivfor Sossong rule was granted Peter G. secretary of banking for the of in and show cause why not be enjoined from selling disposing of the certificates and why should not assign and deliver to the Dollar Savings and Trust Company