Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-06-13
LACEY INVOLVED.
The Currency Comptroller and
the Keystone Bank.
SOME STARTLING TESTIMONY GIVEN

ON iO-and a IhilaueIphia IL
officisl Throws Mud on Assistant Treas
urer NettIeton-The Latter says There
Is Nothing in the Charge-Another
100000 steal Perpetrated by That
Rascal Bardsley.
PHILADELPHIA, June 13-There was
some very startling evidence produced be
fore the Bardsley investigating commit
tee yesterday, and prominent United
States officials names We're brought into
the case in a manner entirely unexpected
TO a majority of the committee. Assistant
Bank Examiner Jones, who i very close
to Bank Examiner Drew, was on the stand
and gave the committee information re-
garding Comptroller of the Currency
Laceys knowledge Of the affairs of the
Keystone bank that has hitherto been
carefully guarded This was that on the
18th day Of February last Comptroller
Lacey was in this city and personally Wis
tied the keystone hank building and was
shown the books and given a full insight
into its condition a known at that time
by Bank Examiner Drew. Another SEN
sation was the statement made by Gen.
Louis Wagner, the eX-director of public
works This statement connected the
name OF Assistant Secretary of the Treas
ury Netqeton with the attempt to make
Nelson +. Evans, director of the Spring
Garden bank, receiver of the broken Key
stone bank.
some Loose Methods Unearthed.
Assistant Bank Examiner Jones when
called 20 the stand explained at some
length, in answer to questions, the meth
DDS of examining national banks, and told
when and how the keystone had been ex-
Z amined. The discrepancy in the ledger of
the Keystone was first discovered by him
+ on Jan. ., 1891, but not by any information
furnished by Examiner Drew After the
discovery nothing was said or done to stop
Lawrence from attending TO his usual
duties, except TO see that he made no more
false entries. On Feb. he. by orders of
the examiner, took official charge of the
books Of the bank. Even after the bank
examiner took charge of the bank, depCs-
its were received from Feb. TO March -.
He did not know what was done about dis
counts but did know that depositors were
allowed TO check out their deposits if they
saw fit
\ Matter for Lacey to Explain.
After the committee had asked all the
questions they wished Assistant Bank
Examiner Jones said: There i another
thing which l wish to state Upon the
18th day of last February Comptroller
Lacey was in this city. There was a re-
eeption held at the Hotel Lafayette which
he attended. After it was over Bank Ex-
sminer Drew brought Comptroller Lacey
over 10 the Keystone bank and / showed
him the books and explained to him the
condition of affairs a. we then knew them
TO exist. l explained the padding of the
New York banking exchange accounts
and informed him of the due bills which
had been found. The difference found IN
the ledger and the stock and bond ac>
counts for which the Lucas estate was
held responsible at that time was thor
oughly explained to him Comptroller
Lacey understood at that time all about
the LUCAS defalcation, which at that time
was understood TO be SGO0,OD1.
Been Kept a Close secret,
Then the assets were considered, and
Comptroller Lacey called the Sea Girt and
Spring Lake property worth $4,000 in
stead of 500, 900" This statement of Mr.
Jones caused a great sensation. a. Comp
troller Laceys visit TO the bank had been
kept a close secret, and Bank Examiner
Drew has never, under the severe cross
examination he has been subjected to, al
ton of II. Mir. Jones also stated that as
an expert he did not believe it was possible
to tell by the books Of the Keystone Bank
how much of the deficit in the Keystone
Bank occurred before John c. Lucas
death and how much had occurred since.
Declined the Presidency.
Ex-Director of Public Works Louis
Wagner. who was asked to become presi-
dent of the Keystone at the time it was
proposed to reorganize it, proved very
good witness He testified that his con-
nection with the matter arose through his
asking City Treasurer Bardsley to me-
ton him for the receivership. The day
after his conversation with Bardslev,
which was on the I'd of April, he received
a letter from Examiner Drew asking him
TO call at the bank, and upon doing so
Drew asked him how he would like 10 be
made president. He discussed and exam
ined into the matter for ten days, and
then declined. He said that he was told
the capital had all been sunk, but that
Comptroller Lacey was willing to allow
5000 for the good will of the bank and
800, OO would be subscribed
Nettleton Heavy Borrower.
Gen. Wagner, in concluding his testi-
mony, said: Il was satisfied at the time
that something was wrong, and that
neither Bardsley nor Young would tell
me what it was. While at the bank said
to Examiner Drew: Nelson F. Evans, of
the Spring Garden bank, hear is to be
made receiver, as ! understand Wanna
maker is backing him Drew answered:
4 guess not and then said something
about the accounts Of the Spring Garden
bank, which i did not understand As
sistant Secretary of the Treasury Nettie-
ton is great friend of Evans. Nettleton
has been heavy borrower at the Spring
Garden banks"
WHAT NETTlETON HAS TO SAY