Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-08-28
HOW DREW WAS DUPED.
The Ex-Assistant Cashier of the Keyston
Bank Tells All About 1t.

Inc Ex-Asststant Cashier of the keystone
Bank Tells All About 1t.
Ex-Assistant Cashier Charles Lawrence Of the
Keystone Bank Of Philadelphia has written a
statement Of the methods which we're used to
deceive ex-Bank Examiner Drew. Lawrence is
now in the eastern penitentiary serving out his
term of seven years for completely in wrecking
the bank.
The statement, which is in letter addressed
to Drew. says: II beg to submit to you the fol-
lowing circumstances as to the manner in
which you, as national bank examiner, were
deceived in your examination of the Keystone
National Bank. In the first place permit me to
say that. in general, every means possible were
used to both swell the assets of the bank and to
diminish the liabilities. There was no regular
method adopted. but at one time some means
were resorted to and at other times some other
plan suggested itself / can, therefore only
tell you in a general way of the various things
done to deceive you without specifying any
particular time at which the particular falsif-
cation was made.
First as to the individual ledgers. These
came within the scope of my own knowledge
and are facts with which i am personally
acquainted. As to the other departments
my knowledge comes from what have seen
and heard, and, therefore, / am able to
draw pretty strong differences. The individual
ItuBers were ditereO az le6St Twice every wear,
about the times you were looked for. This was
done by me since 1880, and the methods pur-
sued were various. Sometimes whole pages
we're distracted. Mostly false balances were
made by altering the pencil figures Large
balances were decreased and overdrafts wiped
out. Sometimes false credits we're posted to an
overdrawn account, SO that your attention
would not be drawn to the ledger more mi
nutely by an Overdrawn account when YOU
might possibly see something else to excite
your suspicion. Sometimes false checks were
posted to an account having large balance SO
as to reduce liabilities. This, you can readily
see, required alterations and deliberations to q
very large extent, because if a check had been
falsely posted to an account and then that
party drew on the account himself in the regu-
lar course of business, you will see that it ne
cessltated a Encouragement OF his account and
a corresponding change In some other account
This was done to the extent of probably
$500. 900, more or less-I cannot tell any nearer
than that.
''Now, know that on the tellers' side there
were memoranda carried as cash which repre-
sented the amount Mr.. Lucas owed the cash
drawer. This was replaced at the time Of your
examination by real cash, which was tenn
Porarily borrowed, sometimes by means Of a
due bill taken from the back of the due bill
book. sometimes by means of a certificate of
deposit or by the president obtaining loan.
The bills discounted we're swelled by the in
PRODUCTION of fictitious notes. These were in
tended both to swell the assets and to take the
place of other bills discounted, which it was
thought bestnot to let you see as it might ex-
cite your suspicion and pat you on q more
lnquisitiye examination.
This believe, gives yon general idea OF
the various methods pursued. OF course
have not gone into minute details, but have
dealt in generalities. volume might be
written upon the subject, but my ability in that
direction is very limited, and trust that you
Will find this sufficient TO show YOU how diff
cult II was for you or any one else to discover
the true condition Of the bank
with sincere regrets for the part took in
deeeiving you in the above matter. and with
the assurance that it was not with the petty
desire TO deceive you, but with desire to carry
out the instructions of my superior officer.
feeling that it was my duty to do so, and finally
having once been caught in the meshes and
| finding it impossible TO extricate myself, am,
respectfully, &C."