The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-07-21
Bardsley's Accounts Have Another Air.
ing Before the Councils Committee.
Lawyer Hney Testiies that Postmaster -Gsnsr.
al Wansmaker Could Net Have Known that
His keystone Stock Vas Fraudulent
Queer clearinghouse Business of the
Suspended Spring Garden Bank.
Director Turland Sued on q Note Which Was
Deposited Simply as Biind-IndianaS Stock.
holders Punched in O Texas Failure.
EDITOR MCCLURE TEsTrFIEs.


EDITOR MCCLURE TESTIFIES
He Positively Denies the Charges In Bards.
iey's Statement
PHILADELPHIA, July 2O.-The council
manic committee. that is inquring into the
affairs of ex-City Treasurer Bardsley and
the wrecked Keystone Bank, held n meet
ing this afternoon at the Council chamber.
The report OF the committee of experts was
presented. This was the report that has
already been published. Committeeman
Hicks offered resolution that another
meeting of the committee be held Thursday.
and that the presidents and cashiers of the
banks that are alleged to have paid in
terest to Bardsley. on deposits of city and
State funds. be subp9naed. The resolution
also requests that the editors of the news
papers that are alleged to have paid a 40
per cent. rebate for advertising. and Au-
ditor-general McCamant. who Is alleged
to have received portion of the said re-
bate from Bardsley. be also subpenaed.
The next witness was Samuel Is. Huey.
counsel for tho estate OF John c. Lucas.
late president of the Keystone Bank. He
read . statement of his knowledge of
Lucas's indebtedness TO the keystone
Bank.
Mr.. Huey's statement showed that the in
debtedness of Mr.. Lucas to he bank at the
time of his death In 1883 was S56l. 900. not
S1,0o0.000, as had been printed in the news
papers. This indebtedness had been, be
said. settled by the widow. Mr.. Huey pro-
duced letters and memoranda which cor
roborated Postmaster-aeneral Wana-
makers ex PLANTATION of his connection with
nf a 0hfalnad
Lucas from she Girard Trust Company, the
collateral furnished beng one Thousand
shares of Keystone Bank stock, which
the certificate books showed had been is
sued in Mr.. Wanamaker's name, but which
that gentleman denied having owned. Mr..
Huey said he questioned Marsh as to the
manner in which the overissue occurred
and the latter replied:
The certificates were all genuine in that
they had been regularly taken from the
certificate book and signed by the officers
of the bank, but that as stock which had been
sold was brought in for transfer and new
certificates issued. the old certificates were
not always Cancelled, but were sometimes
thrown into a drawer ard used again, if
occasion required, and that this doubtless
was the way in which these certificates
| held by Mr.. Wanamaker had been used.
'Of course, Mr.. Nanamaker knew moth.
| ing of his, and there Was nothing on the
| certificates TO indicate any irregularity."
Mr.. Hney spoke of the efforts on behalf
Gates, and said that If settlement had
been made soon after Mr.. Lucas's death
| $4,000 would have placed them in the
hands of Mr.. Lucas, but that as time went
on and tho losses on the Reading railroad
stock increased, the Indebtedness OF the
Lucas estate to MIR. Wsnamaker likewise
| increased.
Col. A. X. Mcclure, editor of the Times,
| who had been men toned In Bardsley's
statement" positively denied Bardsley's
| charge that he was to profit by his advo-
cscy In mis- newspaper OF the sale hy the
city of gas-works and the South Mountain
| single grain of truth in Bardsley's refer
| ence to him was that he did request that
| Magistrate Smith be appointed as one OF
the collectors of the delinquent taxes. on
which fee is retained. his reason being
that Smith was in poor health by reason o.
his suffering from a wound received during
| the war, and he wanted to help him.
An affidavit signed by Judge Finletter.
who had also been mentioned in the state
| ment as q borrower from Bardsley was
read. Judge Finletter denies that he ever
| had any personal. political or business re-
| lati0n with Bardsley. except that soon
| after Bardsley's election Mark IL. Davis.
| Bardsley's business manager, approached
| him and volunteered 10 have his the
| Judge's) note discounted. He borrowed
| $1,000 In this way and repaid 1t when the
note was due.
The report of the committee of three ex-
| perts, synopis of which was printed IN
| these dispatches last week. was presented.
| The Hicks resolution amended TO Friday
wac then adopted, and the further hearing
| was deferred until then.
More Queer Banking Methods.
PHILADELPHIA, July 20-The National
Bank of the Republic of New York. recent
| ly entered suit in the Common Pleas Court
here against EphraIm rurland, TO recover
| the amount due on a certain promissory
note held by the bank, on which Mr.. Tur-
land was the maker. the note having been
| delivered TO the Spring Garden National
| Bank now suspended.l
| Mr. Turland to-day filed his affidavit of
defense. in which he gives an interesting
| history of the making of the note. He
said that he never received any value of
| any kind for the note. the paper
having been obtained from him by
fraud. deceit and misrepresentation
H %ennedS president of the spr nnII' Garden
| Bank. Mr.. TurlGnd alleges that he was at
| that time one OF the directors of the bank
+, and also a stakeholder and depositor there
| in. but not q borrower of dollar for ears.
| That in December last there was notori-
| Gus stringency in the money market. and
| the banks of Philadelphia and New York
| adopted q system of issuing loans to each
| other through the Clearing house Associa-
| Clearing house Association certain bank
| assets other than cash, so that the bank
| could procure temporary loans In cash
through the clearing house. thus enabling
it to command sufficient currency for i'm
| mediate wants without sacrifice of assets
| These loans were paid of and renewed as
| emergency required by banks In
healthy condition. through period of
| several months from December, 1890.
| Continuing. Mr.. Turland alleges that
| Francis w. Kennedy represented TO him
| that the Spring Garden National Bank was
| in a sound and healthy condition. and
swore to the fact that all of its loans were
| well secured; that the business was -four
/ ishing and profitable. and that IL was earn
ing more than per cent, which was de-
| clared dividend on the capital stock of
| S7JO.0O0 which was unimpaired, and also
that the bank had a surplus fund of $780,
| 600. He says that Kennedy also represent
| ed that, owing 10 the stringency of the
money market. the bank was a borrower of
cash. temporarily, from the clearing house
until their assets matured; that the loans
| would be repaid In the course OF business.
and that. in view of this fact. IL would be
wise for the bank to strengthen the loans
by deposit o. special paper. Mr.. Turland
| says for this purpose he made the note at
| kennedy's request. the understanding be-
| Ing that the paper was 20 be protected at
| maturity by the Spring Garden National
Bank and returned 10 Mr.. Turlapd.
The defendant stated further that under
| duced TO execute notes for many thousands
<x<i <.ll ~.