The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-22
QUAKER CITY STARTERS
TIE TREASURER FOLLOWS UP HIS
LOSSES BY RESIGNING.

The City Out S5e4,oo by the Col
lapse of the Keystone and Spring
Garden National Banks-Nearly a
Million Dollars of State Funds Tied
Up by the Failures.
PHILADELPHIA, Pa, May 21.-For the
past few months a series of startling events
in rapid succession have surprised and dis
turbed the financial and political circles of
this city. The run on the Keystone bank
in December last, though at the time it
was ably withstood, weakened confidence in
that institution, and when in March it
was closed by order of the controller
of the currency but little surprise was oc-
casioned in consequence in financial circles.
The largest depositor of the bank at the
time it was closed was City Treasurer John
Bardsley, who had deposited there to the
credit Of the city $4,000. At first
it was thought that the city
would have little difficulty In getting its
money, but subsequent developments show
ing the true condition Of the bank made
this doubtful Then It was learned that
Treasurer Bardsley also had deposited there
large amount of state money which he
had collected for taxes.
CAUGHT A SECOND TIME.
Hardly had the first excitement caused by
the revelations that were daily
being made as to the Key
stone banks financial management
subsidized when on May s the Spring
Garden National Bank was closed by
order of the controller OF the
treasury, and on the same day the Penn
Trust and Safe Deposit Company assigned.
By the suspension of the Spring Garden
bank the city was again sufferer, Treas
urer Bardsley having deposited in that in
stitution $l54, 900. Rumors were freely cir
culated that the two suspended banks were
closely connected in a business way, and
Treasurer Bardsley became subjected to a
great amount of unfavorable criticism.
TAKEN UP BY THE COUNCIL.
Finally the city council took the matter
up ana special committee was appointed
from that body to investigate the clty's
repositories. The committee has been
sitting daily and has brought to
light many sensational incidents
regarding the manner in which
the banks bid for the privilege Of becoming
active repositories. Treasurer Bardsley has
been before this committee a number of
times and has been piled with questions.
Many of the questions asked him Treasurer
Bardsley declined to answer.
THE MAYOR AROUSED.
Nevertheless. such was the gravity Of the
information elected by the committee from
Treasurer Bardsley and other witnesses that
Mayor Stuart was prompted to take the
action that is vested in him by virtue OF his
office. On Tuesday Mayor Stuart, after q
consultation with several city officials, ap-
pointed three expert accountants to investi-
gate Treasurer Bardsley's accounts as kept
in each of the forty-six banks in which he
deposited the ciuy's money. In addition to
being subjected to this humiliation City
Solicitor Warwick to-day filed an applica-
tion in court for an order upon Treasurer
Bardsley compelling him to answer the
questions which he refused to reply to when
interrogated by the councils committee.
BARDsLEY RESIGNS.
When the council met in regular session
to-day a surprise in the shape of Treasurer
Bardsley's resignation as city treasurer was
eprung upon it. Not a man among them
had an intimation that Treasurer
Bardsley had any such intention,
and when the chamber had re-
covered from their surprise the resignation
was referred to the finance committee.
Treasurer Bardsley's letter OF resignation
was as follows: 81 hereby resign my office
of city treasurer of Philadelphia, to take
effect May 30, 1891.
DECLINES TO TALK.
Beyond this Mr.. Bardsley gave no reasons
for resigning. To reporters who sought
him he declined to say anything, but to-
night sent to the newspapers a long letter, /,
in which he makes defense Of his methods
of depositing the public funds, the chief
ground being that he followed precedent,
and is victim of misplaced confidence.
Treasurer Bardsley's, deposit in the Key
stone Banl1to the credit of the state amounts
to $93o,0 He has until June l in which
to make return of this money. IL he does
not do 80 he will probably be held RESPONSE
BILE for it.
COULD BE PROSECUTED.
A close personal and legal friend of
Treasurer Bardsley said to-day that under
the acts Of 1860 relating to custodians of
cution whether the money was lost fraudu-
lently or otherwise. The office of
city treasurer will be filed
by Gov. Pattison until an election is held.
Bardsley since his election as city
treasurer has placed In the defunct Key
stone bank in round numbers
81, Al, 900; Of this amount $3.50, 900
is due the state for taxes
collected by him as agent of the state in his
capacity as city treasurer; SAL 900 Of it
WAS money on deposit to the credit of the
city, which is about $11 900 in excess Of the
authority given to him by the city council
to deposit in one bank.
HIS PERSONAL ACCOUNT.
He had also on deposit as his personal ac-
count as a credit to the Bradford mills about
$10O, 600. or this $l.471 600 the city can
collect from his bondsmen about $11 900.
The state can collect $120 900 from the same
bondsmen. Mr.. BardsleY's bondsmen
qualified in $4,000 for the city
funds and $4,000 for the state funds
They are liable for the total amount of
on their bond to the city for the amount in
excess of the authorized deposits Mr..
Bardsley is absolutely and hopelessly ruined.