The morning call., 1891-06-15

capital existed to an extent of at least
$3.50, 200, whereupOn, under date of Marc h
7th, levied an assessment of S250000 uDO n
the association to make good the impair
ment of the capital to that amount" This
assessment was levied under positive
promise by the comm ttee who visited Lacey
that the amount asSe sSed would be paid in
within week at the most. March 18th La
cey had not been advised Of the payment of
the assessmeet, and on that date wrote to
Drew asking what had been done.
FAILED TO QUALIFY.
On March 14th. Drew replied saying:
The board has not as yet inaugurated any
measures TO obtain the assessment and no
portion of it has been paid in. Although
the old board were reelected in January
last several Of them failed desgnedIy to
qualify or to have rendered their resigna-
tiOns, among them d. p. Nichols, whom
had hoped would accept for the time being
at least the ce-Presideney, and who is
President of the Central Trust Company
l have earnestly endeavOred to supply the
vacancy in the board with other desirable
men, but under the circumstances few such
are available" Drew adds: "Outsde of
the account of the City Treasurer, who has
all along endeayored to assist the bank so
far as lie properly could, by putting In every
day checks, etc. to cover so far as possible
his drafts the next day through other. banks
on the Keystone National Bank, individual
deposits have diminished since February
10Th ult. to little more than 500, 900.
DREW DISAPPOINTED.
"a large amount could be collected from
overdrafts and overdue papers, and. in
short. If the Directors of the bank would,
as | have repeatedly suggested, take the
work into their own hands instead of plac-
ing it on the President, who is absorbed in
other matters necessarily connected with
the conduct of the bank under the present
m al
least could be collected from these sources
within short time" This letter BY Drew
concludes thus: II am greatly disappointed
in finding so little active support given by
the Directors to rehabilitate the bank"
The above reached Lacey on the 10th, and
three days ater he closed the bank. The
statement next sets forth letter from La
cey to Drew on March 18th, replying to
Drew's letter OF the 14th, in which he says:
'The condition of the keystone Bank is
such that l must insist upon the prompt
payment of the larger part of the amount
Of their assessments within the next five
days, or else ! shall feel called upon TO take
perempt ory action"
THE BANK CLOSED.
"The bank was closed on the 18th Of
March," continued Lacey, land did not re-
open for business. The order to close was
given after an interview with Marsh He
Informed me of the fact that certificates
the Keystone National bank had been imprOp-
erly delivered to John Wanamaker during
the lifetime of John Lucas, and negotia-
tions for the surrender and cancellation OF
the same had failed. for the reason that
Wanamaker claimed to hold them as
pledge for the payment of a certain sum Of
money due him from the estate of
John c. Lucas, and he declined to
surrender the stock until the debt
was paid. Complaint had been made be-
cause OF the delay in appointing a receiver.
This was utterly without force, as no inter-
est whatever has thereby suffered, and for
the further reason that The delay was not
unusual. The bank closed March 18th and
a receiver was appointed May 9th. This
bank was, therefore, in the hands of the Ex-
aminer fifty days after being closed, during
which time he was, in effect, acting as re-
.ceiver.
THE COMPTROLLER CRITICISED.
'The Comptroller had been criticised for
three things: First, for allowing Marsh to
remain in Office after his confession, and
not causing his arrest; second, for delay in
closing the bank; third, for the delay
in appointing a receiver. As for the
first matter complained of ! have this
to say that am not here charged with any
responsibility in connection with criminal
prosecution, and the Court Examiner is held
TO have done his duty as soon as he lays be-
fore the United States Attorney any facts
involving a crime which may come to his
knowledge in the DISCHARGE OF his duties
Every Bank Examiner is Instructed and ex-
pected to do this, and could not avoid the
conclusion that Drew had discharged his
duty. After reading his letter Of January
oath, in which he says he was assisted in
securing settlement with the Lucas estate
by United States District Attorney Read, |
had a right to suppose that from that time
on to the final arrest that the United States
District Attorney was fully informed as TO
MaIsh's conduct; also the clearinghouse
Committee with the Directors of the bank,
who were really the responsible parties,
and the Examiner.
DISCRETIONARY POWER.
Second-For the delay in closing the
bank desire to say that the Comptroller
was governed by the provisions of the act
of June 80, 1876. The entire force OF the
criticism is narrowed down to this: That
the Comptroller, conscious Of Il e exercise
OF the discretion imposed upon him by the
statute, decided that / was wiSest and best
to impose the lighter of the two penalties
which the law provides. and give the bank
fourteen days in which to pay the assess
ment under Section 5205, rather than i'm
medately order it clGisd, with all that such
a disaster means.
"Thrd-For delay in appointing a re-
eeiver. The criticism is Of very little import
ance, and in any event it has been pretty
fully discussed already. In closing this
branch of the SUBJECT, in justice to one
whose name has been brought into the dis
cussion of this failure, / desire to say that
Hon. John WanRmaker has never, direc ly
or indirectly, suggested or solicited one
days delay III the closing of the bank, nor in
the appointment of receiver, as appears by
a telegram hereinafter quoted.
INTERVUtw WITH wANAMAKER.
"In fact, kave met him but once during
the present year, aud that meeting was ON
the 21st day of March, at the suggestion and
in the presence OF A. B. Nettleton, acting
Secretary of the Treasury. He su ostantially
confirmed til, information l had received
from Marsh, and said he held as pledge
certificates representing about $500 shares of
stock in the Keystone Bank. | urged him
to use his influence in aid of the efforts
being made to reopen the bank. | failed,
however. in my attempt to enlist him in the
enterprise, and so ended all communication
between u, excepting the following tele-
gram:
WASHINGTON, April 20.
Marsh came down last night to say ii was re-
ported that you intend to appoint a receiver un-
less something more definite was done to-day.
| believe nothing more definite was done to-day.
/ believe nothing would suffer from giving them
twenty-four hours longer, at he end OF which
they may put on paper something more definite
to he pi esented 10 you. From What he says they
are getting along pretty well IN securing SUBJ
scriptOns to the new stock. l would recon-
mend that The appointment OF receiver be de-
ferred, Sa: one day, until he has an opportunity
- JOHN wANAMAKER.
DREW's' REPORTS.
'In concluding this statement l deem it
my duty to say that, in my opinion, the sew
eral reports made by the Bank Examiner
did not reflect the true condition of the bank
under consideration. The degree of blame,
if any. which properly attaches to Drew, is
yet TO be IScertained.
''In the meantime, however. he has been