The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-06-24
Statement Of John w. Bardsley,
Treasurer Of Philadelphia. to
Mitigate Sentence.
Responsibility for the LOSS of
Money Traced Home to Ex-
aminer Drew.
He Knew the Keystono Bank Was Insolv-
ent-Lacey Not Far Removed From
Criminal Connivance.

plead guilty to embezzlement of public
funds, was brought into court for sentence
to-day, but on motion of the district
attorney sentence wa, suspended indeh-
nitely.
The district attorney opened proceedings
by stating that he wished to call some wit
nesses SO the court could get some infor-
nation on which to pass sentence. An ex-
pert accountant testified that BarIsley, in
his two years and a half of incumbency of
the Office of city treasurer received $780,
600 interest on the public funds. That
Bardsley used $50O,OoO in speculation and
had loaned $60000O to one banking firm
and $2O0,O)0 to another. He also loaned
Si00, ,000 TO tbs Bradford Mills company, of
which he was the owner. Bardsley also sold
and converted to his own use 1000 worth
Of government bonds he held for the city,
but this money was subsequently returned.
The expert found that Bardsley's stock op-
erations cost him in the neighborhood of
100000.
Attorney Alexander, for Bardsley, cross
examined Expert Accountant Brown. the
substance of whose testimony was that the
investigation had not gone far enongh to
gone into Bardsley's pockets. Brown was
also forced to acknowledge that there was
an actual profit to the city of about $17O,-
600 between the money received at interest
by Bardsley and the money he lost in
stocks, as this money has been turned over
to the city. Brown further said that with
the exception of the school fund, ,>the clty's
fund was intact.
Ror rs
read his long expected statement, occupy
ing an hour and a quarter doing 80. The
summary of his itemiZed statement shows
balance due the city of $l9lO61, and Il
net balance due the state of $1,O02, 769.
This balance is accounted for RS follows:
Clearing house due bills from the Keystone
bank, S925, 900; receipt of the president of
the Keystone bank for 100 bonds of the
Baltimore Traction company, 81 900 each, /,
100000; notes taken from G. p. Haines for
cash given him to assist the Keystone bank,
5000: 750 shares of stock in the Farmers
and Mechanics bank. $1oO.0oo; cash in the
same bank, SS08; cash in the hands of the
hands Of the assignee, 81, 600, total, ST, 155,-
$50; balance due the city and state, $3s,S72.
The statement continuing, says: "lhis
accounts for all money entrusted to my
care except a balance of S439, ,SS2, which is
many times overcome by property and
claims made over to the assignee Re-
garding his transactions with the keystone
bank, Bardsley says that when he took
office he found his predecessor had on de-
posit there $1,1l0,0o0, 100000 in excess of
law. He reduced the balance to less than
the legal limit and thereafter kept 1t With
in that limit except for three or four days
Transactions with the bank up to the panic
of 1880 were satisfactory. Then
he was applied to for assist
the Baltimore Traction bonds, which were
used at the clearing house for a loan. These
bonds, face value, were to be returned to
to Bardsley, but never were. President
Marsh applied ts him in the spring of 1890
to make other deposits He complied and
during the year deposited with the bank
$945.0OO, of which only 900 was returned
to him. About Nov he notified the bank
that on Nov. 26 he would call on them for
$40O, 600 for the state treasurer. He was
not able to collect it, nor any part thereof.
Remember" says Bardsley, this money
was placed in bank where there was no
suspicion of insolvency, and even the mem
bers of the clearing house had no suspicion
During all these months, and especially
during December, Examiner Drew made
many public declarations that every ma
tional bank in Philadelphia was safe and
SOLVENT During the fall of 1880 he assured
Bardsley time and again that the keystone
was all right and i'll as good position as any
other national bank in Philadelphia in pro-
portion to capital and surplus. When
the true condition of the bank was
ascertained Bardsley says he was
with everybody else, astonished that
Drew did not know of the insolvency, aud
10 expressed himself to President Marsh
who said he believed Drew did not know all
about it, but from the fact that Drew was
under obligations to Lucas and himself, he
(Marsh) thought Drew wanted to assist the
bank all he could. Marsh said that at the
time of Lucas death the bank held prom
issory notes signed by Drew for money bor-
lowed. Marsh also stated that valuable
presents or sums of money had been pre-
sented to Mr.. Drew by himself and Mrs.
Lucas.
Bardsley, that Drew should have known
the true condition of the bank, and had he
communicated the fact to mo l would
neves have permitted the city and state and
my own funds to have remained there"
Marsh told on one occasion, during Lucas
life. that Drew came to examine the bank
but on the request of Lucas postponed it
for week. Marsh said that Drew's assist
ant at one time boarded with him and kept
HIM fully advised of Drew's intended
movements.
Bardsley asserted all statements that he
Marsh's flight are absolutely false. He
never had any Dlations with Marsh other
than as depositor. During his period of
Off Q he nevcr had any transactions with
Postmaster General Wannamaker nor any
personal knowledge of that gentleman's 4
transactions with the Keystone bank. He
(Bardsloyl did write letter to Wanna
maker while the latter was travelling with
the president in California, asking him 10
use his influence with Comptroller Lacey
IN favor of the appointment of City Comp
troller Thompson as receiver of the bank,
and also visited Lacey in Washington for
that purpose.
1t is true that he (Bardsley) loaned at ate
moneys to Glsndenning IL Co., stock brok-
ers; also, to a number of banks and bank
ing institutions, through II. III, Yard. He
also deposited state moneys III tho Seventh
Manufacturers, Spring Garden, keystone.
Third National, Peoples, Columbia, Chest
nut street and Dtexefs banks aud did re-
ceive interest from each of said banks. He
also deposited state moneys with the Farm
ers' and Mechanics National and received
interest thereon. In connection with this
bank, the president loaned him money
with which he purchased 1900 shares of
West Chicago Passenger railway Mt about
$50 por share. the larger portion of which
was afterwards sold by the bank at about
$l34 per share. He positively denios that
either city or state money was used in that
transaction. In concluding his statement
Bardsley said thnt for the past twenty years
Il n