The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1891-06-17
VERY ROTTEN.
Comptroller Laoey's Statement Of
Facts Relating to the
WRECKED KEYSTONE BANK
Bank Examiner Drew's Conduct Ex-
planned and Commented Upon.
MR. WANAMAKEP FAILS
WRECKED KEYSTONE BANK
MR.. WANAMAKER FAILS

1
Although lie Was Very Anxious to do
so-Marsh Apparently the Dupe Of De-
signing Men.
WASHINGTON, June 15.-The state
ment prepared by Comptroller Lacey
and sent TO Mayor Stuart of Philadel-
phia on the course pursued by him with
the Keystone bank of that city was
made public here last night The state
ment included the letter OF Bank Ex-
aminer Drew Of January 2S notifying
him Of the 5000, O,0OOdefalcation 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 former cashier Of the bank,
abstracted large sums of money from
the bank to use in speculations in real
estate. Marsh, he reported, was igno-
rantly led into these transactions and
promised Lucas when the latter was on
his death-bed TO continue the deception
under representations that the money
distracted would soon be returned to
the bank from the result Of Lucas en-
terprises. Drew also reported that there
was no evidence that Marsh had profited
by these Irregularities.
Later on January 81, Mr.. Drew, in an
interview with the comptrollerat at Wash.
ington, 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 entirely
safe; also, that to sever Marsh's connec.
tion with the bank would excite suspic-
ion, and that Marsh was thoroughly re-
pentent and was actuated by an earnest
desire to do all in his power TO assist
the bank in recovering any sums which
had been improperly taken from IL. Mr..
Lacey says he did not close the bank
then for the reason that he had no law.
full authority to do so upon the facts
submitted, m for the further reason
that he was advised by the bank exam
iner, Drew, that the capital Of the bank
was unimpaired
Further and later reports from Bank
Examiner Drew convinced the comptrol.
Ter that the board of directors were
slow in putting matters in satisfac-
tory condition so on March 7th he levied
an assessment of Sl5O,0OO upon the
shareholders ON the promise OF the com.
mittee of directors of the bank that the
assessment would be paid within a
week. On March l4th Mr.. Drew com
planned Of little active support from the
directors in the effort TO re-habitate the
bank. This reached the comptroller on
the 10th and three days later he closed
the bank.
The comptroller states that Postmas.
ter General Wanamakcr never directly
or indirectly suggested or solicited any
delay in the closing of the bank, nor in
the appointment Of receiver, except
as appears by the telegram hereinafter
quoted. In fact, have met him but
once during the present year, and that
meeting was on the 21st day Of March
at the suggestion and in the presence of
Hon. A. B. Nettleton, then acting sec.
retary Of the treasury. This interview |
was the day after the Keystone bank
was closed and the failure was fully |
discussed.
HE substantially confirmed the in.
formation | received from Mr.. Marsh.
and said that he held as pledge certifi.
Gates representing about 3, 800, 900 share,
Of stock In the Keystone bank and that
he had declined TO surrender them un.
less the Lucas estate would pay him the
amount his due. I.urged him TO use his
influence in aid of the efforts being
made to reopen the bank. He promised
TO look into the matter the same night
on his return TO Philadelphia. / failed,
however, in my attempt to enlist him In
the enterprise, and so ended all commu.
nication between us on any subject con.
nected with the banks affairs, except.
ing the receipt Of the following:
PosT OFFICE DEPARTMENT,
WARRINGTON, April O. Isgl
HON. =. s. LACEY, Comprehensive Marsb
u the Keystone bank came down last night 10 l.
'ay that II was reported you intend 10 appoint
receiver Tor tne Keystone bank unless some.
ming more definite was done TO day. believe
lothing would suffer from giving them twenty.
our hours longer, at the end OF which time
hey may put on paper something more def.
lite 70 be presented 10 you. From what he
ays they are getting along well In securing
subscriptions 70 the new stock. would re-
ommend appoin n,ment OF q receiver be de- |
erred, say, one day, until he has an opportunity
o state something more definite
JOHN WAHAMAKER.
"In concluding the statement" Mr..
1acey says, 81 deem it my duty to say
hat in my opinion, the several reports
made by the bank examiner did not re-
lect the true condition Of the bank
Inder consideration. The degree OF
'lame, II any, which properly attaches
o Mr. Drew, is yet to be ascertained.