The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-06-03
THE BUNKO BANKERS.
Government Neglect Let the
People Be Swindled.
PROBING PHILADELPHIA FRAUDS.
E3erf b. smirch the wanamakers Fails
! A. Lawyer Arraigns omcfais Of
the Treasury Der srtment.

PHILADELPHIA, June 1.-The city council COM
mittee investigating the method of ex-City
Treasurer Bardsley continued fts inquiry
this afternoon, Keystone bank doings
being under inspection. Bank exnn-
liner Drew stated that there were
2,5l5 shares Of so-called bogus stock.
u was stock that should have been cancelled,
and II was not, technically, over-issusd stock.
It was mainly in the name of John C. Lucas
None Of II was ever in the name of John Wanna
maker, and witness did not think he was ever q
stockholder, nor WIS william II. wanamaker, az
far as he could recollect.
Mr.. Alexander, counsel for ex-Treesurer
Bsrdsley, crossexsm:ned Drew very sharply.
Drew said he had made . semi-annual exami1a-
fior OF the Keystone bank for the past ten
years. He was not prepared TO say that
Il was not indebted TO the amount OF 100000 or
$4,000 to other banks during the past three or
four years. "Do you ever remember before
Lucas died." said Alexander, "having once
called upon the keystone bank q week too
scong'' 81 don't remember any such matter"
replied Drew.
At the close of Drew's examination Counsel
Filing offered q resolution that the mayor
write President Harrison asking him 70
order an investigation OF the conduct of
the treasury department In connection with the
Keystone banks affairs, ordering the produc-
tfon Of the accounts of the bank and the APP
pcarance Of Comptroller of the Currency Lacey
before the COMMITTEES. Filing made a vigorous
speech In defense OF the motion. He said:
ii the banking law was to be acted upon and
construed a. In tbs Keystone case there would
be little protection for any depositors. By the
confession Of Marsh In January the treasury de-
partment became aware Of the Keystone's rot
Tenness, yet ninety days thereafter the bank was
gems OF Phiisdelphia invited 70 deposit their
money. Some people who had every oppor-
tunity. 70 know the story of the rot.
ons wss people eop wbo c s9sae' not know
the story had every chance to get In. IL is the
most extraordinary action on the part OF the
soins to say whether Examiner Drew or Comp
troller Iaeey was responsible, but between them
the bank was kept open after the fraud was known
thrown in our way. We can look at the
20 look At the others and find
in this ninety days after the frauds were known,
and while the city OF Philadelphia was handling
her millions In that bank.
One other member of the committee voted
with Filing, but there were four against him,
% the matter was dropped for the present, but
q II expected TO be revived shortly.
Paying Teller Thomas, OF the keystone bank,
said another employe and himself were kept
very busy running between the Keystone and
Spring Garden banks with cash 10 prepare for
visits OF the examiner. An important point
In Thomas testimony was 10 the effect
that during his six years connection with
the Keystone, Examiner Drew dropped in
about twice week.
President Singeriy, of the Chestnut Street
National hank, said Bardsley was not paid any
interest on what city money he had in the bank.
He bad no money on state account on deposit.
The latest sensational outcome Of bank mat
tiers is that the validity Of the clearing house
agreement between national banks is shortly TO
be tested In the United States courts.
Christian Van Dugan and Ephraim Young
marble workers, have assigned. No statement
IL obtainable. Young was q director in the
spring Garden National bank. The downfall OF
that institution was the cause OF the failure.
PTrTsFIELp, Mass, June IA petition In in
-eolvency for l. L Brown, the Freeman Print
works. ard the L. l. Brown Paper Company,
came before Judge Robinson in the probate
court today. The creditors consented 10 q con-
tinuance for two weeks. In the hope that an I'D.
tustment might be made. II . compromise Is
not effected startling Developments are ex-
pected.
BosroH. June 2.--Talbot, Soioman a Co,
Wholesale manufacturers OF wooden goods, have
assigned.
TRExTos, n. J., June Phillip Bum, treas
urer OF the Star Rubber Company, hiss resigned
his position AZ president Of the First National
bank and made an assignment Of his large cloth
ing establishment
MONTREAL, June 2-G. Lewis, cloak importer,
has assigned, with liabilities OF $4,000.