Rensselaer Semi-Weekly Republican, Volume 38, Number 19, Rensselaer, Jasper County, 27 October 1905 — BANK SCANDAL IS BIG. [ARTICLE]

BANK SCANDAL IS BIG.

Political Loans Are Said to Have Ruined the Pennsylvania'lnstitution. Startling developments have followed the investigation of the Enterprise National Bank at Allegheny City, Pa., which closed the other day. Names of several prominent citizens active in State politics have become more deeply involved in the scandal. Subsequent events are expected to be far more sensational than the suicide of T. Lee Clark, cashier of the bank. This bank, which had on deposit SBOO, i 000 of State funds, has failed. According to the president of the bank, who calls himself a “dummy president,” “nearly $700,000 of the SBOO,OOO is out on paper of State politicians.” Considerable of the money was loaned to carry out a railroad deal which promised large profits. It fell through with much loss to those engaged in it. The practice of placing State moneys where politicians could use them for speculative purposes and private gain is one of long standing in Pennsylvania. The funds are deposited'in a bank or banks whose officers understand their business and make loans to the politicians who are in the “ring” without scrutinizing too closely the security they give. There have been occasions when this method of doing business came near proving disastrous to all concerned. Unsuccessful speculation put in peril the funds of the State and threatened unpleasant consequences for those responsible for their safe keeping. Th 6 pitcher has gone once too often to the well, and much explaining will have to be done by somebody. The politicians are using their utmost efforts to throw all the blame on the dead cashier. Directors of the bank declare Senator Penrose had a $75,000 note in the bank, but it is understood the latter denies it. A rapid inquiry is being made into Cashier Clark’s personal affairs. He was estimated to have been worth $300,000, but his friends say that he sank all his assets in an attempt to reimburse the bank and that his suicide followed his failure to stem the tide. Clark’s friends believe that investigation will show that he leaves no property and that he had given the bank all he had after his own bad investments ■were cared for. They declare he was ruined by business associates and that it will be found he is a defaulter.