Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1891-06-09
THE KEYSTONE BANK.
The Postmaster General Makes a State.
ment In Regard 10 Ills Con.
melton with IL.
wAHAmAKEH's ESTEEM or DREW
ANp LUCAS.
The Bank Hal Not Lost Any Money On
Him, but lic Had Been a
Profitable Customer.
ny Telegram to tho SHw..
wANAuAgER FESTIVITIES.
Substance Of ttis statement Regarding
tue keystone nsnk.

WANtuAhtN fGsgtttIs.
Substance Of TITS statement Regarding
tue keystone nsnk.
pniLApELi1iIA, June s.-A large
crowd was present nj the meeting Of
tue investigating committee today,
attracted by the faot that Postmaster
General Wanamakcf had promised 10
appear and testify ~ all knowledge he
had In reference 10 this banks manage
men
Mr. wnnamaker was promptly on
hand with his son and partner, Thomas
". Wanamakcr, and at the conclusion
of the examination, Examiner Drew
read hia statement which hc said was
An answer 10 the allegations that have
connected his name with the Keystone
bank aud was at the SANE time n full
and complete statement Of his conncc-
tion with the bank. His statement
was In substance:
III have bcvn deposition cnly; never
/ was an officer or director, never owned
n share OF stock, but held, until recent.
~, 2ji5 shares ~ collateral. The firm
" John wanAmaker, consisting ~
three persons, had hu account with
| the keystOne hank, aud the firm'H ac.
/ NNhhN ~ AAAhAAAAAA'Ah NANh ~ mum
was mad. Responsible for Mrs. Waua.
makers checks upon the bank, which,
TOT convenience, were Kept In n scpa.
rate account. was substantially one
account under two heads. Mrs. Mana-
makers account could not be over.
drawn, while the firm account had n
balance 10 It. credit.
! "undcr these circumstances tho ac-
count was not uverimwn when the
bank closed, which showed u balance
IN our favor. II 10 trun thnt the bank
charged against our account at ~ sut.
Element, "a Short Tins before the failure,
5000. which nu ono ~ QUE 0liicu Knows
anything about, aud which We refused
| 10 rcc0gnlzr until u II explained. We
| kept up our deposits straight through
/ tho IAnlc.n Mr. Manamahef then
READ a STATEMENT
showing the deposits In the Keystone
bank for the months Of November, De-
| cumhVr, January, February and w 10
March 21th, reaching a total Of 81 ,2Ja,.
$40.
"rhrnc deposit. had been gradually
decreased beginning with January,
knowing, n tho public generally dld,
that Mar-h was comforting with the
shareholders 10 mis" assessments, and
/ further, knowing u was the common
umor that tile bank was short" con-
/ ilnurd Nc. Mannmnkrr. "Out cuuuc
/ with tile keystone bank wa. solely die.
/ tnted by the ordinary prudence Of busi.
I npss men. | never knew u any lfreg.
ulhritiea IN tho Keystone hank until
/ after the run, when Llcss' indebted,
/ Noes was known 10 the directors, and
/ was informed that HE estate intended
/ ~ Reimburse the hank. Lister, I wAs
| told by President Mnuh, for the INT
| time, that he feared -Omc u the stock
/ l hold ~ collateral was not Issued,
hat 40 knowledge that the hank was
going 10 close when u diI. All de
uuunts granted 10 my nrm or mysclf
were made IN the customary mauuer.n
Sir. Wauamaker said from the best
Information he had,
gnE HIGHEST AMOUNT
Of single name paper held was $50, 900
up 10 February, lsHl; In that month, Ia
addition % tni., he had n discount Of
/ $50, 900 for fiyr months, which was un.
drrni0od 10 bo personal u him, indi.
virtually, 1T the time he received IL.
Any discounts hcyond this were not
properly ohsrgcablc 10 tho FIRMS ac'
count. on one occasion Marsh called
and sali ho wanted 100000 OF the
flrm's paper, M they understood, for
country banks. They gave II 10 him,
aud for some time pressed tho Ifoy-
stone bank 10 turn over the proceeds,
and finally got them by pcaccmeal.
"Beforo the proper amount was
paid," continued Wanamhker, 1--WE
| learned that u was In the Keystone
hank, ami We had an inlimAtion that
II had been secured for ure ut the clear
Ing house"
/ personally from tho bank except on the
occasion stated. The paper appearing
| Ia his personal account was paper TO-
| celved Ia the course Of business with
which he settled Lucas indebtedness
| 10 him by reason OF Lucas having fail
ed 10 agreement. Wanamaker never
suggested any person directly or In.
| directly 20 the secretary " the treasury
or comptroller Of the Tcceivefship Of
the keystone bank, nor did ha In any
way endeaVof % Influence the appoint
ment. He did not know his brother
had entered bail for Marsh until he
read thl. fact In tho papers while
travelling IN tho West. II. never had
business transactions with Bardsley
individually or NJ city treasurer, or
with any onr representing him In
either capacity. Wanamaker had
esteemed Drew highly for years on hi.
reputation as bank examiner. After
the bank failed ho saw Drew twicc and
TALKED about tho question Of establish
ing new bank with new men.
WanAmnker knew Lucas In bust.
nes- way from early manhood, and
never heard whisper against his
business integrity until after lie was
dead. During 1857, upon the belief
that Lucas was rich man and the
knowledge ofhis Investing In various
enterprises m n capitalist. Wanna
maker told him NJ his great desire 10
assist In preserving the Independence
on the Reading railroad property, anu
that hr tWanamnkerl thought "a pur-
CHASE of certain holdings q stock held
by pnrtlos ininiical 10 tho rcUTgsui1l-
tlni, would be profitable aud useful,
AMI Invited Lucas To join Hun In such
"a purchase.
The agreement was verbal, and 10
the effect that Lucas was 10 supply
r.rtain eitnls nf money al Wauamakpr