St. Paul daily globe., 1890-12-19
BANKER KEAN'S BREAK
Himself and His Cashier Ar.
rested by Indignant De-
pOSitoPS.
They Claim He Received
Money Knowing He Was
InSOlvent.
TWO MurdererS Out of a Trio
Executed at Columbus,
Ohio.
Arthur Hoyt Day Hanged at
Welland, Ontario. for Wife
Murder.

CHICAGO, Dec. 1s.-S. A. Kean, doing
banking business under the name of
5. A. Kean d Co., made an assignment
III the county court this morning to Ben
Jamln +. Jacobs, as arranged for last
night. The assets and liabilities were
not stated. The assignment, in addition
to the banking interests, is of Mr.. Kean's
personal estate, and in the language of
his attorney the banker came down
town this morning with but $40 in his
pocket, all he possessed i'm the world.
His home in Evanston and all real estate
here and elsewhere is now in the as
slgnee's hands to be converted into
cash for the benefit of creditors. As
Slgnee Jacobs now has force of clerks
at work figuring up the assets and IL
abilities. Mr.. Fenneil. attorney for
the banker. says that the failure is
the result of steady drain on
the finances of the institution for
the past two weeks. Reports detri-
mental to the bank got into circulation
about the first of the month, and while
no run resulted, steady withdrawal of
funds followed and has continued ever
since, finally eXhausting
The Bank's Resources.
Over 100000 has been withdrawn
during that time. While there were
plenty of securities in the bank. they
were not marketable under the present
monetary conditions without sacrificing
them, course which Mr.. Kean, in the
interest of his depositors, refused to do.
Mr.. Fennell says that the assets are
ample to pay the liabilities in full. He
declared that the bank had lost nothing
through bad investments. 1t Is eX
pected that statement of assets and
liabilities will be made tomorrow. w,
w. Roger, who deposited money in the
bank on the 5th and 18th instants, this
afternoon took out warrants for the
arrest of Mr.. Kean and his cashier.
George B. Warne, for receiving money
when the bank was known to be insolv-
ent. All sorts of rumors were prevalent
in the crowd of depositors and creditors
who thronged the corridor. One story
was to the effect that at 7:30 o'clock
last night the bank officials had shipped
to New I ork $4,000 worth of securities.
Cashier Warne was told of this rumor
by reporter.
The Cashiers Story.
'Ihat story" said he. "must have
grown out of the fact that yesterday we
sent to New York $4,000 of bonds of
the city of Superior, Wis.,, for the ac-
count of Louis Larson, the comptroller
of that town. Mr. Larson brought US
the bonds yesterday. We refused to
take them. and at his request sent them
to the American Exchange National
Bank of New York to be sold for the
city OF Superior. This bank had not
one cents worth of interest in the
bonds"
The Methodist m inisters of the CITY
seem to have generally escaped loss,
though two or three of them are under
stood to have been caught for small
sums. Formerly almost every one of
them kept his account with Kean, but
on rumors Of the impending disaster
almost all had Withdrawn their bal
anceS. The Methodist Book Concern also
kept its account with the house. but
when Mr.. Preston left the bank with
drew its money. w. Mcdonald. man
ager Of the bond department of the
bank, said that department is not re-
SponSible for the failure. He says that
OIL capital Of $4,000 it made last year
between $4,000 and $4,000.
"What was the cause of the embar-
rasSment, Uhen?'
Speculation Caused 1t.
Cashier George B. Warne, w. j. Nc
Donald and Herbert Hammond, the as
slsfant cashier. were present when this
question was put. From the joint state
mentS made by them the failure is dine
to a tendency, OF the management to
| deal in speculative securities and to
make loans by favor, rather than on
good financial principles. The liabili-
ties consist OF several small amounts.
we'll secured. due to city bankers. and
the deposits. There are about 500 or
800 depoSitorS, with sums varying from
$4,000 to $500 or less to their credit.
Mr. kean is president and chief stock
holder in the Home Safe Deposit VauIs
company, and this stock he has turned
over to the assignee. The company, the
manager says,will continue in business.
On complaint of A. s. Leckie, re-
porter who deposited 1925 in the
bank at O'Clock yesterday afternoon.
ouNSS OSolco tO-udy tillefeQ an OrQer
for the examination of Mr.. Kean and
Assignee Jacobs, touching the affairs of
| the bank. Assignee Jacobs responded
to the citation, but Kean himself failed
to respond. it being said that be was ill
| at his home in Evanston. The hearing
came up this afternoon, when Attorney
Levy Mayer, for Leckie, addressing the
court, said that he wanted an order di
recting the assignee to hold as a trust
fund moneys deposited in the bank
| thirty days prior to the failure. Mr..
Mayer said he would also ask for an
order for the Immediate presence of Mr.
kean in court. The court entered the
order and also granted an order for the
examination of the assignee. The lat
ter cheerfully consented, and the exam
ination was begun III one of the iury
rooms.
According to copies made by Assignee
Jacobs during the investigation, the
| assets, exclusive of Mr.. Kean's personal
estate, would aggregate approximately
Sl,353,O 600 and the liabilities 81, 400, ,OO0.
The assets consist of land scrip and
notes, $4,000: stock of the Home Sc
curity Vault company (par value), $751;
500; other stocks, $4,000; municipal
warrants. $1,000; bank furniture and
fixtures, $4,000; cash on hand. $4,000;
bills receivable (actUal value), s20O, 900; !;
bonds deposited as security for loans
from banks, sl,0O0,OOO. The liabilities
are S501.000 due depositofs and 500, 900
due banks on bonds deposited
for loans. Mr.. Jacobs Is close
friend of Mr.. Kean and as indi-
eating his friendship. he said he de-
posted $1,000 "Wednesday, although he
knew the bank was in shaky condi-