The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-06-13
THE BANK SCANDALS
Assistant Secretary of the Treas
ury Nettleton Smirehed.
he OWED THE SPRING GARDEN.
Endeavored to Have a Friend Made
Receiver of the Keystone.
He OWED THE SPRING GARDEN.
Examiner Drew Prefers the Charge
Wanamaker's Skirts Clear-Another
Pal of Bardsley's Arrested-Deficit
In State Funds Growing.

UcHeTdi wagner this 3IleI0OOH tnat Net
tlcton was a large borrower of the Spring
Garden bank. When first asked if he had
made such a statement 10 Wagner, Drew
said it was absolutely false. Drew after
ward withdrew his denial and qualified it
by. SAYING he had no recollection of having
said anything on the subject, but still it
was possible Wagner's memory was better
than his. Drew was then asked If it was
so that General Nettleton was borrower
of the bank, but refused to answer, saying
he was not allowed TO answer question
like that. Drew was very averse to saying
anything whatever. intimating that Net
tleton was the proper person to see on
the subject, and not he.
Another arrest was made this afternoon
in connection with the treasury scandal.
II. III. Yard, a former partner of President
Lucas, deceased, of the Keystone bank, in
seaside speeulations, was captured in Tren-
ton, n. j., where he is being held to await
requisition papers. Yard was real estate
promoter and closely connected with Pres
ident Marsh. of the Keystone bank. He
left the city a few days after Marsh disap-
peared. The warrant upon which Yard
was arrested was issued on a charge of
conspiracy with ex-Treasurer Bardsley
in stealing city and state taxes.
The alleged conspiracy between Bards-
ley and Yard was discovered
by experts Wednesday On that night a
warrant was sworn out by Expert Ac-
countant Faunce. Yard was finally traced
to Trenton this afternoon, after long
chase. Yard was given a hearing on the
affidavit charging him with conspiracy to
misuse public funds and, released on $10,-
900 pending requisition proceedings
against him. The public money used by
Bardsley in conjunction with Yard
amounts to $4,000
United States District Attorney Reed
appeared before the investigating commit
tee of the council today and made a per-
sonal explanation of his course in acting
as attorney for the Keystone bank as
member of the law firm of Reed d
Petit. Auditor-&eneral McCammant was
the next witness. Rufus Shapely appeared
with the auditor general and stated that
he represented the attorney general of the
state. Shapely said that owing to pros
pective litigation between the state and
the city of Philadelphia over the deficit in
the state funds, the auditor general, by
advice of the attorney general, must refuse
to answer any questionsthat would be dis
advantageous to the case of the state, but
that a statement of moneys owing the
state by the city would be furnished by the
auditor general. The auditor general then
read a statement in which it was shown
that there was due the state from licenses
and taxes collected by Bardsley for 1890 a
total of $Sl5,S15 State Treasurer Boyer
was also called, but the same objections
to his answering questions as in the case
of the auditor general was made by
Shapely.
Harry c. Jones, assistant bank exam.
iner, testified that Comptroller of the Cur
rency Lacey was here on the 18th of Feb
ruary last and was at the Keystone bank.
He was shown a statement Of the condi-
tion of the bank, including falsihcations of
the ledger, padding of the New York
banks accounts and carrying of due bills
as assets.
Ex-Director of Public Works Wagner
testified to conferences held between him
and officials of the Keystone bank regard
ing his acceptance of the presidency of the
bank. During the course of the examina-
tion General Wagner was asked what he
knew about the Spring Garden bank.
Wagner, who, before he was approached
on the subject of the presidency of the
bank, was candidate for the receivership
of the bank, testified that when
he first went to the bank on
the subject of the presidency he said to
Bank Examiner Drew that he understood
that the receivership had been settled and
that it was Nelson F. Evans, president of
the Spring Garden Insurance Company
and director of the Spring Garden bank.
Wagner also added that he understood
Wanamaker was backing Evans for the
position. In reply, Drew said to General
Wagner: mo; think you are mistaken.
Wanamaker has nothing to do with it.
Now that explains something / did not
understand. Assistant Secretary Nettle-
ton is a great friend of Evans. and he is
probably backing him for the position. 1t
also explains some accounts at the Spring
Garden that / did not understand, where
Nettleton appears as a large borrower"
Wagner said he had since looked into the
papers for the name of Assistant Secretary
Nettleton as one of the debtors, but had
not seen it. Adjourned till Monday.
The deeper experts probe into the affairs
ofex-City Treasurer Bardsley the more ap-
parent his rascality bteomes, and the
enormous sums which he made away with
are daily added TO. Yesterday the ac-
countants reported grave discrepancy in
Bardsley's accounts with the state, and to-
day they presented Mayor Stuart with a
statement showing that S420, 900 state ap-
preparation for public school purposes for
the year ending June 80, together with
balance of SIS, 600 from the previous year,
making total of $445,0 200, had been mis-
appropriated by Bardsley to his own uses.
The state treasurer showed that the
$4,000 noted above was paid Bardsley on
December 81. 1t is surmised that he used
part of this vast sum to take up bad checks
or the keystone bank for 100000 that he
was carrying as cash.
The supreme court this morning decided
that the city council did not have a right
TO select a successor to City Treasurer
Bards.ey. The appointment of Wright by
Governor Pattison is therefore sustained
In lengthy opinion the chief justice
says: 1T is sufficient tp say that for the
purpose of this case we must regard the
officer designated as city treasurer as a
county and not a CITY officer. The treas
urer, by whatever name he be called, is
county officer and exercises such func-
tions." dissenting opinion was filed by
Justices Williams and Mitchell.
WASHINGTON CRY, June l2.-Assistant
Secretary Nettleton's attention was to-
night balled 10 the testimony today of