Waterbury evening Democrat., 1891-06-15
mr.. LACEY EXPLAINS
The Comptroller Talks About
Philadelphia's Banks.
HE DEFENDS Mr.. wANAMAKER.
Examiner Drew's Reports Were Not
Explicit Enough.

Why He Delayed In Appointing Receiver
How Lucas and Marsh Manipulated the
Accounts-Drew to Be Investigated
Bardsley Will Probably Make a Confess
sion When About to Be Sentenced.
WASHINGTON, June 15.-The statement
prepared by Comptroller Lacey and sent
to Mayor Stuart, of Philadelphia, on the
course pursued by him with the Key
stone Bank of that city, has Just been
made public here. The statement in
cludes the letter of Bank Examiner Drew,
of Jan. "a, notifying him of the 5000, 900
defalcation 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 president of the
bank, distracted large sums Of money
from the bank to use in real estate spec
ulation. Marsh, he reported, was ignor-
antly led into these transactions.
Accompanying this letter was prelim-
mary statement of the banks condition;
which left q capital stock Of half a mil
lion intact and a net surplus of $55, $40.
Later on, January ~, Mr.. Drew in an in
terview with the Comptroller, stated that
the property conveyed to the bank by the
Lucas estate, was equal in value to the
indebtedness which had been concealed.
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 sub
mitted.
In answer to criticisms for delay in APP
pointing a receiver, Mr.. Lacey says it
was not made Immediately because it
was the duty Of the Comptroller to facih
tate the resumption of business by the
bank. The Comptroller states that Post
master-General Wanamaker never di-
rectly or indirectly suggested or solicited
one days delay in the closing of the bank
nor in the appointment of receiver, ex-
cept as appears by the following tele-
gram:
'FRoM PosToFFICE DEPARTMENT.
"Hon. Edward s. Lacey, Comptroller.
'Mr. Marsh, of the Keystone Bank,
came down last night to say that it was
reported you intend to appoint a receiver
of the keystone Bank unless something
more definite was done to-day. believe
nothing would suffer from giving them
"a hours longer, at the end of which they
may put on paper something more def
mite to be presented to you. From what
he says they are getting along pretty
we'll in securing subscriptions to the new
STOCK. i wOulu recommend INC appoint
ment of a receiver be deferred, say one
day, until he had an opportunity to state
something more definite.
"JoHN WANAMAKER-"
In concluding the statement Mr.. Lacey
says:
'I deem it my duty to say that, in my
opinion, the several reports made by the
bank examiner did not reflect the true
condition of the bank. The degree of
blame, if any, which properly attaches to
Mr.. Drew, is yet to be ascertained.
"He has recently been so fully employ
ed, by reason of the failure Of the Spring
Garden and Keystone National Banks,
that it has as yet been impracticable to
give the matter the consideration its i'm
portance demands. In the meantime,
however, he has been directed to suspend
examinations until the facts are submit
ted and O conclusion reached"