Evening journal., 1891-06-15
Mr.. .LACEY'SSTATEMENT
He Says Drew Did Not Report
Correctly.
THBBAEKs TRUEsTATECONoBALED

lib bbANkS SIhUbSIAIbUO UONUbALhD
But whether This Was Done Intention
ally or CarIessiy the Controller Does
Not Hazard An Opinion-rhe Examiner
Pleaded for Delay in His Early Letters.
WAsHISGToN, June l5.--The statement
prepared by Controller Lacey and sent TO
Mayor Stuart, Of Philadelphia, on the
course pursued by him with the Keystone
bank OF that city has just been made pub
lie The statement includes the letter Of
Bank Examiner Drew of Jan. "A, notify
ing him OF the 5000, 600 defalcation Of Lucas
the late president of the bank In this
letter Mr.. Drew explains how by adroit
manipulation OF the accounts OF the bank
Lucas, with the assistance OF Marsh, the
forner cashier OF the bank, abstracted
large sums OF money from the bank TO use
in speculations in real eState. Marsh, he
reported, was ignorantly led into these
transactions, and promised Lucas when
the latter was on his deathbed to continue
the deception under representations that
the money distracted would soon be re
turned to the bank from the result Of Lu-
cas- enterprises.
Drew Pleaded for Marsh.
Drew also reported that there was ne
evidence that Marsh had profited by these
Irregularities He closed by hoping that
no publicity be given to the affair until
the bank should be rehahilitated or all
efforts to that end were found futile. Ac.
companying this letter was a preliminary
statement OF the banks condition, which
I IL -. -. a : 4
tact and a net surplus of $3.50. Later
| on--Jan. 21-Mr. Drew in an interview
with the controller at Washington stated
that in his Judgment and in the opinion OF
| the clearing house committee the property
conveyed to the bank by the Lucas estate
was equal In value to the indebtedness
which had been concealed, and that in any
| event the creditors OF the bank were en-
tirely safe; also that 10 sever Marsh's con
nection with the bank would excite sns
| picion, and that Marsh was thoroughly re
| pentent and was actuated by an ardent
desire 10 do all in his power 10 assist the
bank in recovering any sums which had
been improperly taken from H.
why He Did Not CIose the Bank.
Mr.. Lacey says he did not close the banl
for the reason that he had no Lawful
authority to do 50 npon the facts sub
mitted, and for the further reason that b,
was advised by Bank Examiner Drew
that the capital OF the bank was unim
paired; that the creditors were therefor
fully protected and that prompt effort
would be made TO replenish the cash b.
deposits OF t800,0O0 to be made by the lead
ing directors and stockholders, whicl
should place il In funds until its owl
assets became available Further AM
later reports from Drew convinced tn
controller that the board Of directors wer
slow in putting matters in satisfactor
condition, so on March Z he levied a
assessment Of S25O,000 upon the shareholC
ers on the promise from a committee Z
directors OF the bank that the assessmen
would be paid within a week On Marc
IA Mr.. Drew complained of little activ
support from the directors on the effort {
rehabilitate the bank. This reached th
controller on the 10TH and three day
later he closed the bank. The bank the
remained in charge Of the examiner 10
ifty-one days.
Lacey Answers His Critics.
In answer to criticisms for delay in al
pointing a receiver, Mr. Lacey says IL wa
not made Immediately because it was tn
duty of the controller TO facilitate r,
sumption of business by the bank. 1t wa
important, considering oil the business an
municipal ramihcations which the failur
involved, that plenty Of time be given 70
developments, in order to avoid the NJ
pointment Of some improper and intel
ested person. No person, he says, ca
show that any creditor, debtor OF stocl
holder has been damaged to the extent q
one dollar by reason of the delay.
what Mr.. wanamaker Did.
The controller states that Postmaste
General Wanamaker "never directly OF IL
directly suggested or solicited one day
delay in the closing of the bank, nor
the appointment OF a receiver except q
appears by the telegram hereiuafts
quoted In fact, have met him but ono
during the present year, and that meetin
was on March 81, at the suggestion and /
the presence of Hon. A. b. Nettleton, the
acting secretary OF the treasury This il
terview was the day after the Keyston
bank was closed, and the failure was full
discussed.
HE substantially confirmed the info
nation / received from Mr.. Marsh, an
said that he held as pledge certificatf
representing about $500 shares Of stock /
the keystone bank, and that he had d.
clined TO surrender them unless the Lucr
estate would pay him the amount his dul
/ urged him to use his influence in aid {
the efforts being made to reopen the banl
He promised to look into the matter th
same night on his return to Philadelphia
and / telegraphed Mr.. Drew to call upo
him with statement of the assets an
! liabilities OF the bank and TO facilitate i
every way possible his taking an active il
terest in the schemes for reorganization.
failed, however, in my attempt 70 enlii
him in the enterprise, and so ended n
communication between us on any sui
ject connected with the banks affairs, e,
cepting the receipt OF the following tel
gram:
Mr.. Wanamaker's Telegram.
POsToFFIcR DEPARTMENT
WAsHISGroH, ID. c., April 2 1891
, Hon. Edward s. Ltcey, Controller;
Mr. Marsh. Of the Keystone bank, came dow
last night to say that IL was reported 20
intend to appoint receiver Of the KeystoI
unless something more definite was done .
, day I believe nothing would suffer from gf
ing them twenty four hours longer, at the en-
OF which they may put on paper somethiu
more definite 10 be presented to you. froi
what he says they are getting along pretty we
in securing subscriptions TO the new stock.
would recommend the appointment Of r
ceiver be deferred, say, one day, until he ha
, an opportunity to state something more del
mite. JOHN WASAMAKEh
He Blames Examiner Drew.
In concluding the statement NJ
, Lacey says, II deem it my duty 70 ga
that, in my opinion, the several repori
made by the bank examiner did not refes
the true condition OF the bank under col
sideration The degree of blame, if an,
which properly attaches TO Mr.. Drew