Los Angeles herald., 1891-06-09
QUAKER CITY FRAUDS
John Wanamaker on the Wit
ness Stand.
He Explains His Deals With the
Keystone Bank.
Several Questionable Transactions
Deity Smoothed Over.
President Harrison Promises to Start q
Federal Inquiry-Another Ras-
cal Absconds.
Associated Press Dispatches.


PHILADELPHIA, June 8.-A large crowd
was present at the meeting of the inves.
tigating committee today, attracted by
the fact that Postmaster-G General Wana-
maker had promised to appear and tes-
tify to all the knowledge he had in ref
erence to the Keystone banks manage
ment. Mr.. Wanamaker was promptly
on hand with his son and partner,
Thomas B. Wanamaker, and at the con-
clusion Of the examination of Bank Ex-
aminer Drew read his statement, which
he said was an answer to all the allega-
tions that have connected his name with
the Keystone bank, and was at the same
time full and complete statement of all
his transactions with the bank. His
statement said in substance:
81 have been a depositor only; never
was an officer or director; never owned
share of stock; but held, until re-
Gently, 2515 shares as collateral. The
firm Of John Wanamaker, consisting of
three persons, had an account with the
Keystone bank, and the firms account
by an arrangement with the bank, was
made responsible for Mrs. Wanamaker's
checks upon the bank, which for con-
venience were kept in separate ac-,
count. Itwas substantially one account
under two heads. Mrs. Wanamaker's
account could not be overdrawn
while the firms account had a bal
ance to its credit. Under these cir
cumstances the account was not over
drawn when the bank closed, according
to our books, which show balance in
our favor. 1t is true the bank charged
against our account at its settlement
short time before its failure, $1,000, which
no one at cur Office knows anything
about, and which we have refused to
recognize until it is explained. We
kept up our deposits straight through
the panic"
Mr.. Wanamaker then read state
ment showing the firms deposits in the
keystone bank the months of Novem-
ber, December, January, February, and
up to March goth, reaching the total of
$l,263, 1896.
These deposits, 2 says Mr.. Wana-
maker, chad been gradually decreased,
beginning with January, knowing as
the public did generally, that Marsh
was comforting with the shareholders to
raise assessments, and further knowing
that it was common rumor that the
bank was short. Our course with the
Keystone bank was solely dictated by
ordinary prudence of business men. 1
never knew of any Irregularities in the
Keystone bank until after the run,
when Lucas Indebtedness was made
known to the directors, and was in
formed that his estate intended to reim-
fburse the bank. Later | was told by
President Marsh, for the first time. that
H., Co. Nf =. nl~ n Io11 L.
collateral was not properly issued. |
going to close when it did. All dis
counts granted to my firm or myself
were made in the customary manner"
Mr.. Wanamaker said from the best
information he had, the highest amount
of a single paper held was $50, 900, up to
February, 1890. In that month, in ad-
dition to this, he had discount OF $780,
900 for five months which was under
stood to be to him individually, at the
time he received it. Any discounts be-
yond this are not properly chargeable
to the firms account. On one occasion
Marsh called and said he wanted $780,.
900 OF the firms paper, as they UNDER |
stood, for country banks. They gave it |
to him, and for some time pressed the
Keystone to turn over the proceeds, and
finally got them by piece-meal.
Before the paper was paid we learned
it was in the Keystone bank, and we had |
an intimation that it had been secured
for use at the clearing house."
Wanamaker said he never borrowed |
personally from the bank except on the
one occasion above stated. The paper
in his personal account was
paper received in the course OF business. |
with which he settled Lucas's indebt- |
'edness to him, by reason of Lucas hav-
ing failed to keep the agreement.
Wanamaker said he never suggested |
personally, directly or indirectly, to the
secretary of the treasury or the comptrol-
Ter of the treasury for a receivership of |
the Keystone bank ; nor did he in any way
endeavor to influence the appointment.
He did not know his brother had en-
tered bail for Marsh until he read the
fact in the papers while travelling in the
west,
He never had business transaction
with Bardsley individually or as city
treasurer, or with any one representing
him in either capacity.
Wanamaker had esteemed Drew
highly for years, on his reputation as a
bank examiner. After the bank failed
the question of establishing new bank
with new men. Wanamaker knew
Lucas, in business way, from early
manhood, and never heard whisper
against his business integrity until after
he was dead. During 'S7, upon the be-
lief that Lucas was rich man, and had
knowledge OF his investing in various
enterprises as capitalist, Wanamaker
told him OF his great desire to assist in
preserving the independence OF the
Reading railroad property, and that he
(Wanamaker) thought the purchase of
certain holdings of stock held by. parties
inimical to reorganization would
be profitable and useful, and
invited Lucas to join him in. such pur-
pose. The agreement was verbal and to
the effect that Lucas was to supply GER
tain sums of money as Wanamaker
called for them, and deposit the same to
Wanamakers's personal account in the
Keystone bank. In accordance, from
that time Wanamaker drew checks on
that account to the extent Of about