Evening journal., 1891-05-07
THE BANK IN BAD SHAPE.
How the Keystone Was Quilted
at Philadelphia.
DIRECTOR MFADDEN DECEIVED.

Against Half Million, but Instead the
City Deposits Were over Million.
President harsh's Strange Course.
PHILADELPHIA, May THE startling
developments OF the manner in which the
Keystone bank had been Quilted until only
q mere shell was left were the talk of this
city yesterday. AS striking, however, as
was the history of the inside operations of
the clique which manipulated the bank,
there are other disclosures promised that
will be equally If not more sensational in
character. 1t is not probable though
that any move in this direction will be
made until after the hearing of President
Marsh and ex-Assistant Cashier Lawrence
tomorrow afternoon.
A Network of Deception.
''The whole thing was a petwork OF de
ception and villainy," said Director Nc
Fadden. eve were deceived in almost
every particular by fraud and misrepre-
sentation Eyen after the run Marsh con
tinued to lie TO us.
"When it was over l asked him what
amount Of deposits yet remained with the
bank He coolly told me 1855, 900. OF this,
he said, 500 900 was the city deposit and
$i59,0O0 were general deposits. That made
me feel SO good that l laughed. ] felt sure
that the city deposit could be carried for
q time. and with less than 500, 600 Of press
ing claims / knew that it would be no
IN 20 D.. q IL.
Altogether / have put up more than $500,
900 for the concern. But, great heavens
When subsequently discovered that the
deposits instead were about 81, 200 900, /
was about half paralyzed. Instead of
bucking against s559,OOO / found that /
was bucking against over a million.
The Lucas Defalcation.
"But," continued Mr.. McFadden, 'the
getting at the truth about the deposits
was an easy matter compared with the diff
ficulty in finding out anything about the
Lucus defalcation. did not find out that
it was nearly a million of dollars until /
pressed Marsh to the wall and accused
him of stealing the money and giving it to
his friends
Concerning overdrafts Mr. McFadden
said; "When he would refuse TO let Yard
ana Vhe CfumpS ana othef trlenuS OF
Marsh have the money, Marsh would pay it
out on checks and then conceal the matter
from us. That is a sample Of how things
were DONE
Asked about the effort which President
Marsh, City Treasurer Bardsley and a few
others are still making to have the bank
rehabilitated, Mr.. McFadden smiled sig
nificantly. Bank Examiner Drew, who has
countenanced the latest effort at resusci.
tation, says that it is possible, but well in
formed people say that the mere sugges
ton of such scheme is preposterous.
Closed at Marsh's Request.
Il turns out that the summary closing Of
We Keystone bank by the government was
iie direct result Of the request Of President
earsh. The strain Of carrying the great
f5ad necessary to conceal the banks con
| dition had become so serious that he fell
he could not bear it any longer He wen
| to one Of the directors and told him tina
the overdrafts and Lucas defalcation wer
too heavy to carry adding that he woul,
not make another false return. He SAT-
that he would have to go to prison ant
! that he would be relieved when the sus
| pense was over.
The directors then appraised Bank FIX
aminer Drew, and the result was that tn
bank was closed.