Enterprise National Bank (Pittsburg, PA)

Episode Information

Episode Type
Suspension β†’ Closure
Start Date
October 18, 1905
Location
Pittsburg, Pennsylvania (40.441, -79.996)
Registered Place
Allegheny
Bank Type
national
Charter Number
4991

Metadata

Receivership Details

Depositor recovery rate
35.6%
Date receivership started
1905-10-18
Date receivership terminated
1916-10-31
OCC cause of failure
Fraud
Share of assets assessed as good
39.8%
Share of assets assessed as doubtful
54.1%
Share of assets assessed as worthless
6.1%

Notes

Failure followed discovery of large shortages and the cashier's suicide; receiver appointed Oct. 1905.

Events (4)

1. April 4, 1895 Chartered
Source
historical_nic
2. October 18, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large shortages/defalcations discovered tied to Cashier T. Lee Clark's embezzlement and suicide.
Newspaper Excerpt
the failure of the Enterprise National Bank of Allegheny ... the cashier, T. Lee Clark, committed suicide.
Source
newspapers
3. October 18, 1905 Receivership
Newspaper Excerpt
National Bank Examiner J. B. Cunningham ... has been placed in charge as receiver of the Enterprise National bank of Pittsburg, Penn.
Source
newspapers
4. October 18, 1905 Receivership
Source
historical_nic

Newspaper Articles (25)

Article from Alexandria Gazette, October 21, 1905

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# TERRIFIED TERRIFIED at the prospect of full exposure of its nefarious dealings with the wrecked Enterprise National Bank, of Allegheny, Pa., through the use of State deposits, the full power of the republican State machine is being exerted to prevent the publication of the facts behind the suicide of Cashier Clark and the failure of his institution. Every influence possible it is said is being brought to bear upon Bank Examiner Cunningham to secure a secret settlement of notes of prominent republican politicians held by the bank and forestall the ruining of names and reputations. Dispatches from Pittsburg say that there were two important developments in the financial wreck yesterday. The first is that a cursory examination of the bank's accounts shows that the shortage foots up fully $1,200,000. The second development is one fraught with mighty consequences to men high in the counsels of the republican machine-it is none other than that Cashier Clark left a confession, written the night before his suicide, in the safe of the bank. In this confession Clark is alleged to have implicated men of prominence in the republican party throughout the State. It seems that the republican party in Pennsylvania, as well as in some other States, has for years been kept alive by money stolen from the public.


Article from New-York Tribune, October 22, 1905

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WILL SUE DIRECTORS. Depositors to Take Action in Enterprise Bank Case. [By Telegraph to The Tribune.] Pittsburg, Oct. 21.-The directors of the Enterprise National Bank to-day engaged counsel for a pending legal fight, to be started in the Alleghany County court on Monday. T. P. Trimble, attorney for the bank, and also for T. Lee Clark's estate, will probably be retained by the Clark estate, and a three cornered fight will be begun. The action against the directors will be begun by the depositors, under the act of May 9, 1889, which reads as follows: Any banker, broker or officer of any trust or savings institution, national, State or private bank, who shall take and receive money from a depositor, with the knowledge that he, they or the bank is at that time insolvent, shall be guilty of embezzlement, and shall be punished by a fine of double the amount so received and imprisonment of from one to three years in the penitentiary. Yesterday and to-day about $100,000 of the Enterprise Bank notes were lifted. Examiner Cunningham put all the notes and discounted paper in charge of the Bank of Pittsburg, of which Wilson A. Shaw is president, with privilege to lift the same. Negotiations are now under way for the sale of the Santa Fe Central Railroad Company by the Pittsburg owners. It is said several offers have been made for the property, and at least two of the three railroads which now have connection with It are among the negotiators. These roads are the Denver and Rio Grande, the Rock Island and the Santa Fe. "The Pittsburg Leader" to-day says that there is every evidence that the politicians said to be responsible for the failure of the Enterprise National Bank are hurrying to pay the notes in an effort to conceal traces of their identity, and Receiver John B. Cunningham, who is in charge of the bank, does not deny 1t.


Article from Arizona Republican, October 22, 1905

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GRIMINAL PROCEDURE Against Officers and Directors of the Failed Allegheny Bank Pittsburg, Oct. 21.-It was stated tonight that information will be made on Tuesday against the officers and directors of the Enterprise National Bank of Allegheny, charging them with embezzlement in having received money from depositors when it is alleged that they knew the bank was insolvent. This action will be brought. it is said, under the amendment to the act of 1863, approved on May 9. 1899, which provides that "any banker, broker or officer of any trust or savings institution, state or national bank, who shall take or receive money from a depositor with a knowledge that he, they or the bank at the time is insolvent, shall be guilty of embezzlement and shall be punished by a fine in double the amount so received and imprisoned from one to three years in the penitentiary." Such action will result in all papers, names and details of the transactions being produced in open court. Negotiations are under way for the sale of the Santa Fe Central by its Pittsburg owners and among the probable purchasers named are the three roads with which it has connections, the Denver and Rio Grande, the Rock Island and the Santa Fe proper. A story that an application would be made for a receiver of the Santa Fe Central was denied by its president. The Leader is authority for the statement that the politicians concerned are lifting their notes through the Bank of Pittsburg, the clearing house representative of the Enterprise, in order to conceal the identity of the notemakers. S. P. Kohn, a stockholder of the Enterprise, said that the stockholders will make up any deflciency and that depositors will be paid in full. Bank Examiner Cunningham said that he had no knowledge of the statement of the dead cashier, alleged to have been discovered among the bank papers, and asserted that there is no paper in the bank bearing the name of Senator Penrose as maker, endorser or guarantor.


Article from Omaha Daily Bee, October 23, 1905

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# CUNNINGHAM KNOWN HERE Receiver for Looted Pittsburg Bank Was Formerly Bank Examiner in Nebraska. National Bank Examiner J. B. Cunningham, who has been placed in charge as receiver of the Enterprise National bank of Pittsburg, Penn., is a former Nebraskan, having been an attorney at law at Lincoln prior to his appointment as national bank examiner. Vice President C. F. McGrew of the Omaha National bank was a national bank examiner for Nebraska at the same time with Mr. Cunningham and knew him quite well. Mr. McGrew said Sunday: "I think that it was in 1898 that Mr. Cunningham was appointed examiner. John W. McDonald, also of Lincoln, was appointed at the same time, through the instrumentality of Comptroller of the Currency Dawes. Mr. McDonald was assigned to one of the southern districts, Florida, I believe, but afterwards resigned. Mr. Cunningham was subsequently transferred to Kansas and then to West Virginia, and has been employed as national bank examiner since. I have not seen him for several years. In fact he had gone nearly out of my memory, until recalled by his being placed in charge of the Enterprise bank at Pittsburg."


Article from Omaha Daily Bee, October 24, 1905

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STATE IS AMPLY SECURED Treasurer of Pennsylvania Talks of Funds in Defunet Allegheny Bank. HARRISBURG, Pa., Oct. 23.-State Treasurer Mathuews was at his office today for the first time since the failure of the Enterprise National bank of Allegheny, in which more than $1,000,000 of public funds were deposited. He said that at the time of the failure there was $1,030,000 of state money in the bank, of which $632,000 belonged to the general fund and the balance to the sinking fund. Asked about the report that security which had been furnished by the bank to protect the state from any loss in case of failure was worthless, Mr. Mathuews said he had every reason to believe that the state was amply protected. He also said that these bonds would more than cover the amount of the state's deposit and that he was not giving himself any concern about this feature of the case. A receiver was appointed this afternoon for the National Cable and Wire company, a corporation of which the late T. Lee Clark, cashier of the Enterprise bank, was president. J. H. Hunter was named as receiver and a preliminary injunction was granted by the court restraining the company from disposing of or incumbering the assets in favor of any particular creditor. The company is capitalized at $500,000, half of which is preferred stock. None of the common stock has been issued, but $151,400 worth of the preferred stock has been sold and is now outstanding.


Article from Evening Journal, October 24, 1905

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WASHINGTON. It develops that there is a complete deadlock over every feature of the Panama Canal problem. Secretary Taft is on the point of going to the Isthmus to bring order out of chaos, if possible. The United States Supreme Court decided that State Senator Green, of New York, must stand trial in Washington on the charge of conspiring with Beavers and others to defraud the Postoffice Department. The Supreme Court, at Pittsburg, heard argument and reserved decision on an appeal from the opinion of the Chester County Court, that neither of the rival Republican factions in that county 's entitled to the party column on the official ballot. Samuel Spencer, president of the Southern Railway, interprets Presiden Roosevelt's utterances as indicating that his rate policy has been modified. PENNSYLVANIA. State Treasurer MathuΓ©s, the Republican leader of Delaware county, said he would retire from politics.when his term ended. FOREIGN. Morgan and Uerkins are reported to be unfavorably impressed by the terms of the Russian loan. Mobs for two days have fought with the police of Santiago, Chile. Many have been killed and wounded. MISCELLANEOUS. Notes aggregating at least $500,000 are missing from the ruined Enterprise National Bank, of Pittsburg. These notes represent paper held as security for the loans made by Cashier Clark, and, it is declared. contain the names of prominent State politicians. The notes probably have been destroyed, and it is said that they were destroyed by the dead cashier. A remarkable lack of system in the method of conducting the affairs of the Enterprise National has been disclosed by the investigation now under way. A Pittsburg banker expresses the belief that within forty-eight hours every bit of damaging political paper will be taken up, leaving in the bank only legitimate and well secured notes. Clark's suicide has caused the naming of a receiver for the National Cable and Wire Company. of which Clark was president. More than $2,000,000 sinking fund and $4,000.000 of the general fund are deposited in Pittsburg and Allegheny banks, the Enterprise National being particularly favored. Governor Folk fought fire in the executive mansion at Jefferson City, Mo., conducted his wife and guests to safety and saved the portraits of his predΓ©ces sore. A report was current in New York that Charles F. Murphy. the Tammany leader, and Senator McCarren will be called as witnesses in the insurance inquiry, DEATHS. Jerry Simpson, at Wichita, Kan,


Article from Albuquerque Evening Citizen, October 26, 1905

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WALTER LYON IS APPOINTED ATTORNEY FOR CUNNINGHAM It will be of more or less interest to the people of New Mexico to know that Walter Lyons, former lieutenant-governor of Pennsylvania, has been secured as legal advisor for Receiver Cunningham, of the defunct Enterprise National bank of Allegheny, Penn. Mr. Lyon has acted as attorney for a number of New Mexico enterprises within the past few years.


Article from The Manitowoc Pilot, October 26, 1905

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HIS SHORTAGE MAY REACH $2,000,000. Directors of Alleghany Bank Will Not Know Actual Deficit Until Auditor's Work Is Done. PITTSBURG, Pa., Oct. 23.-It was announced today by National Bank Examiner John B. Cunningham, receiver of the Enterprise National bank of Allegheny, that the audit of the accounts of the institution will not be completed before the latter part of this week. The directors and stockholders of the bank are still in the dark concerning the deficit and do not know whether the private loans made by Cashier Clark will reach $700,000 or greatly exceed that amount. Mr. Gwinner, president of the bank. when pressed for-a statement, said he did not know whether the shortage would be $1000 or $2,000,000. W. A. Seiling. a director, said the prospects were brighter and the bank would soon be able to open its doors. It is reported that 11 syndicate is buying the accounts of the small depositors at 50 cents on the dollar, but sales are few. as the depositors are hopeful of getting back every cent of their money. HARRISBURG, Pa., Oct. 23.State Treasurer Matthews today said that at the time of the Enterprise bank failure there were $1,030,000 of state money in the bank.


Article from The Morris County Chronicle, October 31, 1905

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DOMESTIC. A step in the dark plunged Bruno A. Bahr, a messenger boy, eleven stories down a ventilating shaft at Chicago, III., killing him. An association was formed of Mutual Life policyholders in Minnesota to oust the McCurdys from the company. John F. Stevens, chief engineer of the Panama Canal, denied a rumor that he would resign. Upward of 500 delegates are expected at Chattanooga, Tenn., for the Southern immigration and quarantine conference, November 9 and 10. After a week's trial the charge against Charles M. Chamberlain of wrecking the Chamberlain Bank, at Tecumseh, Neb., has been dismissed. The President of the wrecked Enterprise National Bank. at Pittsburg, Pa., says the shortage will reach $1,500,000. David S. Scott, who forged his wife's name to obtain funds, requested a Pittsburg (Pa.) judge to send him to prison. New indictments have been found at Cleveland, Ohio, against O. L. Hays and Edward Flickinger, charged with violating the National banking laws. Sequoia trees have been sent from the National parks in California to the Yellowstone Park and promise to thrive there. Three hundred Syrians rioted at Liberty and Church streets, New York City. Daggers and pistols were drawn and a dozen men were wounded. Herman Schultz knelt at the coffin of his sucide son at their home in New York City, and sent a bullet through his own brain. Five miners were killed by the cavein of a slope in a Utah copper mine. Receivers took charge of the Tubular Dispatch and New York Mail and Transportation Companies and the pneumatic mail tube service in Manhattan (New York City) was stopped. In ten factories in the mountain distriet 1500 men of the Amalgamated Window Glass Workers of America will go to work at once. Beef Trust men indicted in Chicago, 11., filed a special plea, contending that estimony given by them in the Governnent beef inquiry had been used in obtaining their indictment, and therefore they could not be prosecuted on that finding.


Article from The Forest Republican, November 1, 1905

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Monday. The Spanish cruiser Cardinal Cisneros sank Saturday morning off Muros on the Galician coast, after runing on a rock. Former President Grover Cleveland spoke against the money evil at the unveiling of the J. Sterling Morton monument at Nebraska City, Neb. Datto Ali, leader of the Mindanoa moros, and 11 of his followers have been killed by a detachment from the 22nd infantry and the Fourth cavalry. W. H. Andrews, delegate to congress from New Mexico, has been sued for $52,000 in connection with the failure of the Enterprise National bank of Allegheny, Pa. The cry of revolution has been raised openly in Russia, trouble is spreading in the provinces, and martial law has been proclaimed in many places. The great rallroad strike paralyzes the country.


Article from The Forest Republican, November 1, 1905

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The Spanish cruiser Cardinal Cisneros sank Saturday morning off Muros on the Galician coast, after running on a rock. Former President Grover Cleveland spoke against the money evil at the unveiling of the J. Sterling Morton monument at Nebraska City, Neb. Datto Ali, leader of the Mindanoa moros, and 11 of his followers have been killed by a detachment from the 22nd infantry and the Fourth cavalry. W. H. Andrews, delegate to congress from New Mexico, has been sued for $52,000 in connection with the failure of the Enterprise National bank of Allegheny, Pa. The cry of revolution has been raised openly in Russia, trouble is spreading in the provinces, and martial law has been proclaimed in many places. The great railroad strike paralyzes the country.


Article from Willmar Tribune, November 1, 1905

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# MISCELLANEOUS. The railroad system of Russia is almost completely tied up and socialists say, since troops cannot be transported, the government is at their mercy. Fifteen were killed in conflict at Ekaterinoslav and massacres took place in many cities in Russia. Secretary Shaw told Nebraska bankers that there will be no financial legislation until the nonelasticity of our currency causes a panic, which may be soon. The Norwegian government asks the storthing for complete power to negotiate with Charles of Denmark relative to taking Norway's throne. The census bureau issued a report placing the number of bales of cotton ginned this year at a figure in excess of 4,000,000. A St. Louis woman gave out plans for a new $1,000,000 university for study of the occult. An American collector of customs was wounded and his native assistant killed in the Santo Domingo riots. It is feared that the bloodshed will fan the latent revolution. A Pittsburg lawyer says that of the $2,500,000 resources of the failed Enterprise national bank of Allegheny only $40,000 was on hand when the institution was closed, and that collateral deposited to secure loans were rehypothecated. Secretary Taft announces his cabinet position suits him and that he will not be a candidate for president. Papers have been served on a woman Spiritualist to recover $1,000,000 which she is alleged to have obtained from Pierre Lorillard Ronalds, the dead New York clubman. The headless body of a woman found in the Bronx river was identified by a New York merchant as his missing wife. The semi-annual conference of the college of bishops of the Methodist Episcopal church, comprising the governing body of that denomination, began in Washington. Sereno T. Merrill died in Beloit, Wis., aged 90 years. He came to Beloit in 1846, and was the first teacher in Beloit college. By the caving in of a slope in the Highland Boy copper mine at Bingham, Utah, five men were instantly killed. A new party in Canada to be known as the national, proposes to treat Great Britain as a brother, not as a parent. A bride of two months was found dead in Chicago, with her husband, evidently her murderer, fatally shot beside her. Admiral Togo made a triumphant entry into Tokio and, cheered by thousands, drove to emperor's palace to report officially the return of his victorious warships. The Pennsylvania's new car order brings that road's expediture for equipment for the year up to $26,000,000. The New York police have been ordered to arrest all women who appear unescorted on the streets of the tenderloin after ten o'clock at night. Gov. Folk, of Missouri, commuted the sentence of Edgar G. Bailey, who was to have been hanged at Kansas City for murder, to imprisonment for 99 years.


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 The Montgomery Advertiser, November 6, 1905

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vestigation of the Enterprise National Bank of Allegheny was made the sub- ject of a reply today by Comptroller of the Currency William B. Ridgeley, his reply being made public at the White House. The letter, which is addressed to Secretary Loeb, is as follows: "Your letter of October 31, enclosing, by direction of the President, a letter from Governor Pennypacker relative to the Enterprise National Bank of Alle- gheny, has been referred to this office. "The day the bank failed I began to make the full, complete and careful in- vestigation that Governor Pennypacker asks to have made. Mr. Cunningham, the receiver of the bank, who discov- ered the falsifications, is one of the most competent and efficient men in the service. I have detailed to assist him Bank Examiner Edward J. Moxey, who has had a great deal of experi- ence 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. I have also de- tailed to assist Mr. Cunningham, one expert accountant from this office and a number of other good men. "I know of no way in which I could strengthen or improve the organiza- tion I have now at work investigating the 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 of any persons who have been guilty of any violation of law. Very respectfully, "William B. Ridgeley, Comptroller."


Article from Daily Kennebec Journal, November 7, 1905

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Eighty thousand dollars worth of bonds of the Santa Fe Central Railroad, of which the late Cashier T. Lee Clark of the Enterprise National Bank, Pittsburg, was treasurer, are reported missing. Receiver Cunningham, of the defunct Enterprise Bank, has not been able to find them.


Article from The Salt Lake Herald, November 16, 1905

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# SUITS AGAINST "BULL" ANDREWS Receiver of Enterprise National Bank Seeks to Recover $91,038.17. # CLARK'S PRIVATE PAPERS CASHIER BEGAN SPECULATING SEVEN YEARS AGO. PITTSBURG, Nov. 15.-Suits for a sum aggregating $91,038.17 were entered today by Receiver John B. Cunningham of the Enterprise National bank against William H. Andrews, the former well known state politician and at present territorial delegate from New Mexico.


Article from Chicago Eagle, November 18, 1905

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# Duplicate Set of Books. Receiver Cunningham, of the failed Enterprise National Bank of Allegheny, Pa., is reported to have come into possession of a duplicate set of bank books kept by persons in the bank between the time of the last Federal examination and the date of the failure of the bank.


Article from The Springfield Herald, November 24, 1905

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Andrews Enters a Denial. Pittsburg. - William H. Andrews, territorial delegate from New Mexico, filed an affidavit of defense Monday to the suit entered against him by John B. Cunningham, receiver of the Enterprise National Bank of Allegheney. 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 National Bank to the order of Andrews. He avers that both checks were drawn at the instance and request of the cashier of the bank, for the accommodation of the bank.


Article from Arizona Silver Belt, December 7, 1905

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The failure of the Enterprise National Bank of Allegheny, Pa., has precipitated a receivership for the Santa Fe Central and it is rumored that an offer has been made for the property by the Gould people who propose to extend it to a connection with the Texas Pacific at El Paso. This would give the Rio Grande an outlet to the Gulf of Mexico, long sought for by its management.


Article from Belding Banner, March 1, 1906

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# Bank Receiver Reports.. Pittsburg, Pa., special: The first report of the receiver of the failed Enterprise National bank of Allegheny, Pa., shows total assets of $2,199,520, with $3,130,585 liabilities.


Article from The Sun, March 4, 1906

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# SANTA FE CENTRAL DEAL. The Tallmadges of Chicago Take Hold of Project Which Broke Pittsburg Bank. CHICAGO, March 3.-E. R. Tallmadge of C. L. & E. R. Tallmadge to-day corroborated the report that his firm is negotiating for the Santa FΓ© Central Railway and that the success of the deal is assured. "My brother and I have been working on this deal for several months, and I have just received word from him at Pittsburg that our offer will be accepted," said Mr. Tallmadge. The transaction represents about $2,500,000. The Santa FΓ© Central is the road involved in the recent failure of the Enterprise National Bank of Allegheny, as a result of which Lee Clark, the cashier, committed suicide. It is 60 miles long and runs from Santa FΓ© to Torrence, N. M. The Chicago capitalists intend to extend the road westward into the Pecos Valley, and will seek an Eastern outlet, probably at Fort Worth, Tex.


Article from The Daily Morning Journal and Courier, March 27, 1906

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FIVE ARRESTS MADE IN ENTERPRISE BANK CASE AFTERCLAP IN SENSATIONAL FAILURE OF ALLEGHENY INSTITUTION. Three Clerks and Forest B. Nichols, Private Secretary to William H. Andrews, and George E. Cooke, an Alleged Partner of Cashier Clark, Who Committed Suicide, the Men Taken Into Custody - Arraigned Before United States Commissioner and Released on Bonds of $5,000 Each. Pittsburg, March 26.-Five arrests were made to-day as a result of the affair of the Enterprise National bank of Alleghany, which suddenly closed its doors last October following the sensational suicide of its cashier, T. Lee Clark. Deputy United States marshals took into custody Forest B. Nichols, private secretary to William H. Andrews; Charles Menzemer, George R. Ralston and Edward P. McMillan, employes of the Enterprise bank and George E. Cooke, an alleged partner of Cashier Clark, in several real estate deals. The charge against Menzemer is that as clerk of the bank he certified checks drawn upon the bank by persons who had not sufficient funds on deposit to meet the checks drawn and so certified, this constituting a false certification. Nichols is charged with conspiring with an officer of the bank who is not named to abstract and wilfully apply unlawfully monies, funds and credits of the bank. Ralston and McMillan, who were clerks in the bank, are charged with making false entries in the books to defraud the bank, while Cook is charged with conspiring to defraud the bank by getting false credits. The charges were formulated some time ago but the warrants were not issued because the officials desired to secure evidence that was being taken in certain civil proceedings. The men were arraigned before a United States commissioner and furnished bonds in $5,000 each. The arrests are a climax in a most sensational financial collapse and are the result of the investigation made by Bank Examiner Edward P. Moxey, who furnished the information to United' States Commissioner William T. Lindsley. The information was baseed of to the use the funds alleged of conspiracy Enterprise of bank Nichols in the interest of the Santa Fe Central Railroad company and the Pennsylvania Construction company. of the ibank is one The story failure of of the tragedy EnOne was throughout. last terprise the community morning startled in October by the Cashier Clark shooting at news ted suicide that by Simultaneously had bis residence commita suburb. of the bank was the in Bellevue, closing announced. among excitement was caused and the Great many depositors started. rumors The ot' heavy defalcations were of the bank later funds of the directors that the bank had admitted been but it was many bestatus of the bank's misused, fore the weeks affairs beknown. Even at this date no statement of the came definite probable receive div- has idend that the creditors will been made although partial reports have been made to the comptroller of the currency, A warrant was also issued for Thomformer paying teller of the but he has not yet bank, as Harvey, been be found. placed under arrest, as the could not there are In add sixty-eight Twenty-two counts are against the six men. Nichols, six against against Ralston, seventeen Menzemer, against eleven Cook, against McMillan, eleven against and one against Harvey, All the charges are for acts alleged to have been done between June, 1903, and the date of the closing of the bank,


Article from Rock Island Argus, April 12, 1906

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STATE RECOVERS ITS FUNDS More Than Million Saved Out of Wreck of Enterprise Bank. Harrisburg, Pa., April 12.-Gov. Pennypacker issued an official statement today announcing that the commonwealth has recovered all public funds amounting to over a million dollars, on deposit in the Enterprise National bank of Allegheny at the time of its failure.


Article from Omaha Daily Bee, July 6, 1907

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BANK WRECKERS SENTENCED Bookkeeper and Assistant Teller of Pittsburg Concern Are Sent to Prison. PITTSBURG, July 5.-After refusing new troals of the men recently convicted in connection with the failure of the Enterprise National bank of Allegheny, Judge Ewing, in the federal court, today sentenced Edward P. McMillen, the bookkeeper who pleaded guilty of making false entries and misapplication of funds to six years' imprisonment on the first charge and six months upon the second. Charles Menzemer, former assistant teller, convicted of misapplication of funds and abetting T. Lee Clark, the cashier, who committed sulcide, was sentenced to five years and six months imprisonment. Thomas W. Harvery, the former teller convicted of making false entries, was given until Tuesday to settle his affairs. Lemert'S. Cook, a real estate dealer, convicted of misapplication of the funds of the bank, was also given a respite until Tuesday. Sentence was auspended in the case of eGorge L. Ralston, former individual bookkeeper, who was convicted of abstraction and misapplication of the bank's funds, but acquitted on the charge of making false entries.


Article from Wausau Pilot, September 22, 1908

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like $7,500,000 has been stolen by dishonest bank employes in that city. The banks have concluded that the best course before them-while not wisbing to east suspicion upon anyone is to photograph every one of their employes and take their measurements by the Bertillon system, SO that, when a next defalcation may occur, the police authorities all over the world will have the last embezzler marked down as minutely as though he were the most elusive Max Shinburn who ever alternated between safe-cracking and jail service. If there was one bank officer who would have surrendered his complete control of millions rather th submit to being "mugged" by the police, it was William Montgomery, cashier of the Allegheny National, under arrest in connection with the disappearance of $839,000 of deposits and the entire $500,000 worth of capital stock. He was the intimate friend and confidant of Senator Quay. the man who placed Quay's bets during the Harrison campaign, when Quay won $250,000, and the trusted handler of the moneys of the political machine in that section of the State. When the Allegheny National went down-or up- -the State was backing it with $532,000 of deposits and the city of Pittsburg with $1,532,000. Private depositors were SO wary that they let it have little. When the crash came, after a series of speculations in stocks, the police reported the discovery of no photograph of Montgomery, even during their investigations of the suddenlyacquired fortune of a Pittsburg widow whose wealth leaped in eight years from $10,000 to $333,000. and of other women in Pittsburg and neighboring cities, whose real estate investments had increased with remarkable facility. While the fate of the Allegheny National's money still hung in the balance. pending the decision of Montgomery's allies as to restitution of the million that had gone, a man returned to Pittsburg who for nearly three years had left the police bitterly regretful that the Bertillon system was not compulsory there before the Enterprise National of Allegheny co!lapsed in October. 1905. He was Thomas W. Harvey, teller of the Enterprise. who, in the vain hope of escaping the penalty for his share in the crime, had given up his identity and his home, to wander amid agonies of dread until his fearful spirit could no longer bear the strain. He surrendered himself to the Federal authorities, and on the same day was sentenced to seven years in the penitentiary-and that with no more notoriety than if he were a purse snatcher. Pittsburg was learning to wash its dirty linen with neatness, silence and dispatch. Yet the Enterprise embezzlements were among the most sensational ever known in the State of Pennsylvania. The losses amounted to $1,500,000. It was a "political" bank, like the Allegheny National, and hundreds of thousands of its deposits had gone out to politicians on notes which, unsecured at best, had disappeared when the cashier, T. Lee Clark, both poisoned and shot himself, to make sure of death. Speculation, women and gambling was the way the stolen millions went When the Union Trust Company of Pittsburg discovered its loss of $385,000 in 1906, almost on the anniversary of the Enterprise run. the thieves proved to be a couple of mild young persons, Clinton B. Wray, the teller, and C. S. Hixton, the individual bookkeeper. The gambling crooks took it off these two marks in large chunks Both received ten years apiece when their defalcations were discovered. While the gamblers were enjoying the Union Trust Company's cash, the bucket shops were getting during the year between March, 1907, and March of this year $520,000 taken from the Farmers' Deposit National Bank by Henry Reiber, the paying teller, and John Young. the auditor. They proved themselves fools as simple over wildcat curb adventures as the boys of the Union Trust did over crooked cards. For ten years those two presumably experienced financiers had been stealing $1,105,000 from the Farmers' Deposit Bank. and no one, among either officers or directors. had suspected them. They, too, have been sentenced to ten years each. Pittsburg's example has given the State of Pennsylvania a record that puts the dashing depredations of bank robbers in the Southwest, with their masks and their revolvers, to the blush of poignant shame. SHORT NEWS NOTES. Fire in the lumber yards of the Lake