The morning call., 1891-06-24
BARDSLEY In COURT
Sentence for EmbeZzIement In
definitely Suspended.
The EX-Tr6aSurer'S Statement Of the Dis
pOSal Of State and City Funds.
Explanation Of His Transactions With the
Keystone National and Other Banks.
Examiner Dr8W'S Reports.
Special to THE MORNING CALL.


ex-City Treasurer, who several days ago
pleaded guilty of the embezzlement of public
funds, was brought to court for senten
to-day, when the District Attorney moved
that sentence be indefinitely suspended.
The District Attorney opened the proceed
ings by stating that he wished TO call some
witnesses so the Court could get some in
formation on which to pass sentence. An
expert accountant testified that BardsIey,
in his two years and a half incumbency
of the Office Of City Treasurer received
100000 in interest on the public funds;
that Bard>ley used S50O.O0O in speculation,
and had loaned 100000 to one banking
firm and S200,0 to another. he also loaned
500, 600 To The Bradford Mills Company, Of
which he is the owner Bardsley also sold
and converted to his own use S57. 600 worth
of Government bonds which he held for the
city, but this money was subsequently re-
turned. The expert found that Blrdsley's
stock operations cost him in the neighbor-
hood of 100000
Attorney Alexander. for Bardsley, cross
examined expert accountant Brown, the
substance Of whose testimony was that the
investigation had not gone far enough to
say positively that any money has actually
gone into Bardsley'S pockets. Brown was
also forced to acknowledge that there W as
an actual profit TO the city Of about $4,000
between the money received at interest by
Bardsley and the money he lost in stocks,
as this money had been turned over to the
city. Brown further said that with the ex-
ceptiOn of the School Fund, the city's fund
is intact
BARDSLEY's STATEMENT.
Bardsley then arose and proceeded to
read the long-expected statement occupy
ing an hour and a quarter in doing so. A
summary Of the itemized statement shows
net balance due the city of Si9l, COL, and
net baiance due the State of 81 .O02, 100. This
balance is accounted for as follows: Clear
lng-h0use due bills from tie keystone
Bank. S925. 600; receipt of the President of
the Keystone Bank ter 100 bonds of the
Baltimore Traction Company of $1,000 each,
$4,000; notes taken from G. z. Haines for
cash given him TO assist the keystone Bank,
$4,000; 75u shares of stock in the Farmers
aud Mechanics Bank, $780, 900; cash in the
same bank. SS08; cash in the hands OF the
assignee, $1,000 Total, 81, 1876, 80S. Balance
due the city and State, S3S,S22
THE KEYSTONE BANK.
accounts for all the money intrusted to my
care, except a balance of S43S S22, which is
many times overcome by property and
claims made over TO the assignee" Regard
ing hIs transactions with the Keystone
Bank, Bardsley says when he took his Office
he found his predecessor had on deposit
there Sl,000000, 100000 in excess of the
law. He reduced the balance to less than
the legal limit and thereafter kept il within
that limit, except for three or four days.
His transactions with the bank up to the
panic of 1890 were satisfactory. Then he
was applied to for assistance and deposited
with the President the Baltimore Traction
bonds, which we're used al the Clearing
house for loan. These bonds, or their face
value, were TO be returned to Bardsley, but
never were. President Marsh applied to
him in the spring OF 1880 to make other de-
positS. He complied and during the year
deposited with the bank S945,O00, of which
only $4,000 was returned 10 him. About
November 1St be notified the bank that on
November 26th he would call on them for
100000 to pay into the State Treasury. He
was rot able to collect il nor any part
thereof.
DREw'S METHODS.
Remember" says Bardsley, 'this money
was placed in the bank when there was no
suspicion Of insolvency, and even the men,
bers of the Clearinghouse had no suspicion
during all these months, and especially
many public declarations that every national
bank in Philadelphia was safe and solvent"
During the fall of 1890 he assured Bardsley
time and again that the Keystone was all
right, and in as good position as any other
national bank in Philadelphia, in proper
ton 10 its capital and surplus. When the
true condition of the bank was ascertained,
BaTdSley says he was, with everybody else,
astonished that Drew did not know of the
insolvency. and So expressed himself TO
President Marsh, who said he believed
Drew did know all about it; but from the
fact that Drew was under obligations to Lucas
and himself, he (Marsn) thought Drew wanted
TO assist the bank all he could. Marsh said
that at the time of Lucas death prOmissory
notes were signed by Drew for money bor-
rOwed amounting to $3.50 Marsh also
stated that valuable presents or sums of
money had been presented or given to Mr..
Drew by himself and Mrs. Lucas. II assert
most positively" continued Bardsley, THAT
Drew should have known the true condition
Of the bank, and had he communicated the
fact TO me | would never have permitted
the city and State and my own funds TO
have remained there. Marsh told me that
on one occasion during Lucas life Drew
came to examine the bank, but on the re-
quest of Lucas postponed 1t for week.
Marsh said Drew's assistant at one time
boarded with him and kept him fully ad-
vised of Drew's Intended movements"
MARsH's FLIGHT.
Bardsley asserted that all statements that
he knew anything about or connived at
Marshs flight were absolutely false. He
never had any relations with Marsh other
than as Il depnsitOT. During his period of
office lie never had any transactions with
Postmaster General Wanamaker nor any
personal knowledge of that gentieman's
transactions with the Keystone Bank. He
(Bardsley) did write letter to Wanamaker,
while the latter was travelling with the PreSi-
dent in California, asking him to use
his influence with Comptroller Lacey in
favor Of the appointment of City Comp
trOller Thompson rs receiver OF the bank,
and he also visited Lacey in Washing
ton for that purpose. 1t is true that
he (Bardsley) loaned State moneys to
Glendennin & Co., stuckbrOkers; also, to a
number of banks and banking institutions
through H. II. Yard. He also deposited
State money in the Seventh. Manufacture
ers', Spring Garden, Keystone, Third Ma
tiOnal, Peoples, Columbia, Chestnut street
and DreXePs banks, and did receive interest
from each of said banks. He also deposited
State money with the Farmers and Me
chanlcs' National Bank aud received inter
est thereon. In connection with this bank
the President loaned him money with which
he purchased 2000 shares of the West Chi
cagO Passenger Railway. at about 800 per
share, the larger portion of which was after
ward sold by the bank at about S134 per
snare. lie positively denies bDht either city
or State money was used in that transaction.
RESULT OF INVESTMENTS.
In concluding his statement Bardsley said
that for the past twenty years his household
expenses have never exceeded $500 per
year, which also included his personal ex-
penses. In March last he moved to Ger
mantOwn to be near the factory, buying in
June last property costing $4,000, which
sum represented his wife's savings and his
savings from all Outsida sOUrces Ha adj
mits that he loaned State money to various
banks and others. not knowing there was
any law against it. Every dollar he loaned,
either to Glendinning & Co. or the banks,
was returned at the time fixed, together
with interest, and all this money, both prin-
ciDal and interest, he has paid over. He
received interest on State money because he
| did nnl knnu II was a crime 10 do sn Tho