The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-06-09
His Connection With the Brok-
en- Keystone Bank.
A DEPosIToR. NOT A DIRECTOR.
Creditors Of the Wrecked Institution
Mad At Examiner Drew.
President Harrison Promises That No
Guilty Man Shall Escape-Nebraska
sunday-schooi Superintendent Ar
rested for Embexxlement.

was present al the meeting OF the investi-
eating committee today, attracted by the
iact that Postmaster-General Wanamaker
mad promised to appear and testify to all
the knowledge he had in reference to the
management of the bank. Mr.. Wana-
maker was promptly on hand with his
son and partner, Thomas B. Wan
amaker, and at the conclusion of
the examination Examiner Drew read his
statement, which he said was In answer to !.
all the allegations that have connected his
name with the Keystone bank, and was at
the same time a full and complete state
ment OF all his transactions with the bank.
Wanamaker's statement said in substance:
have been depostor only. / never was an
officer or director, and never owned q share
OF stock, but held until recently 2,5i5 shares as
collateral The firm of John Wanamaker, con-
sisting OF three persons, had an account with
the Keystone bank, and the firms account, by
an arrangement with the bank, was made re-
sponsble for Mrs. Wansmaker's checks upon
the bank, which for convenience were kept in q
separate account II was substantially one
account under two heads Mrs. Wanamaker's
account could not be overdrawn, while my &C
count had 3 balance to its credit Under these
circumstances, the account not overdrawn
when the bank closed, according to our books,
which show a balance in our favor.
1t Is true that the bank charged against our
account at its settlement a short time before its
feilure 5000 which no one at our Office knows
anything about, and which we refused TO recog-
nize until il was explained We kept up our
deposits straight through the panic.
Mr.. Wanamaker then read a statement
showing the deposits in the keystone
bank for the months of November, De-
cember, January, February and up to
80 rc0
The statement continues:
These deposits have been gradually decreased,
beginning with January, knowing, as the
public did generally, that Marsh was conferring
with the shareholders 10 raise the assessments,
and further knowing that it was com
mon rumor that the bank was short
Our policy toward the Keystone
bank was unchanged until after the run, when
Lucas Indebtedness was made known TO the
directors, and was informed that his estate in
tended to reimburse the bank. Later was told
by President Marsh, for the frst time, that he
feared some stock held as collateral had not
been properly issued. had no knowledge that
the bank was going to close when 1t did. All
discounts granted 10 my firm or myself were
made in the customary manner.
Mr.. Wananaker said that from the best
information he had the highest amount Of
single name papers held was $50 600 UP to
February, 1890. In that month, in addi-
ton to this, he had discount of $4,000
for five months, which was understood to
be personal matter to him individually
at the time he received it. ANY discounts
beyond this are not properly
chargeable to the firms account
On one occasion Marsh called
and said he wanted 10000 of the firms
paper, as they understood, 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
piecemeal Before the paper was paid,
they learned that it was in the Keystone
bank, and had an intimation that it had
been secured for use at the clearinghouse.
Wanamaker said he never borrowed per-
sonally from the bank, except on the oc-
casion above stated. The paper appearing
in his personal account was paper received
in the course of business, with which he
settled Lucas Indebtedness to him by rea-
son of Lucas having failed to keep his
agreement.
Wanamaker never suggested any person,
directly or indirectly, TO the secretary of
the treasury or the comptroller for the re-
ceivership of the Keystone bank, nor did
he in any way endeavor to influence the
making OF the appointment. He did not
know that his brother had entered bail for
Marsh until he read the fact in the papers
while travelling in the West. He
never had a business transaction
with Bardsley, individually or as
city treasurer, or with any one represent
ing him in either capacity. Wanamaker
had esteemed Drew highly for years on his
reputation as bank examiner. After the
- T-,- H. Il
about the question of establishing new
bank with new men. Wanamaker knew
Lucas in a business way from early man.
hood. and never heard whisper against
his business integrity until after he was
dead. During 1887, upon the belief that
I,ucas was q rich man, and knowledge
of his investing in various enterprises
as a capitalist, Wanamaker told him Of
his great desire TO assist in preserving the
Independence of Reading railway prop
ertv. and that he (Wanamaker) thought
the nurchase of certain holdings of stock
held by parties inimical to reorganization
would be profitable and useful, and invited
Lucas to ioin him in such purpose. The
agreement was verbal and to the effect
| that Lucas was to supply certain sums of
money as Wanamaker called for them
| and deposit the same TO Wana-
makers personal account in the Key
stone bank. In accordance with the plat
form from that time on, Wanamaker drew
checks on that account To the extent OF
$4,000. Upon several occasions. when he
| notified Lucas that the money was needed,
Lucss brought him stock of the Keystone
| hank. which be loaned him TO use, as it
| was not convenient 20 furnish cash at the
| time. Asa result, when Lucas died Wana-
! maker had isis shares OF Keystone bank
/ stock so received After Lucas death,
| Wanamaker found he had not made the
| deposits as agreed, and that his (Wana-
| rnaker's1 account was oyerdrawn. He i'm
| nediately made il good by closing it with
commercial paper received in his business,
which was all duly paid. Lucas, there
fore, did not, in reality, furnish a
penny for the purchase Of the Reading
stock Wanamaker held, and all the latter
| Rad for Lucas' share was the keystone
| stock certificates. He had this subject TO
| adjustment OF the account. Marsh and
| Mrs. Lucas urgently desired. after the run
| last September, TO have the stock returned
| IN the hank. This Wanamsker refused TO
/ do. and he maintained this position until
/ the bank closed, and then, recognizing
| that the stock had no moneyed value and
| being assured that If he surrendered it TO
/ the Lucas estate il would help in the re-
| habilitation of the bank, he surrendered