The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-06-24
He Makes q Statement of His Of
fetal Affairs.
EXAMINER DREW WAS DERELICT
He Should Have Known the Keystone's Condi.
ti0n-The Treasurer Loaned Public Money
Not Knowing it Was a Crime.


The district attorney opened the pro
ceedings by stating he wished to call some
witnesses SO the court could get some in
formation on which to pass sentence.
An expert accountant testified that
Bardsley in his two years and q half in
cumbency of the Office of city treasurer
had received S20O.O00 interest on public
funds; that Bardsley used S500, 900 in spec
ulation and had loaned 5000, 900 to one bank
ing firm aud $4,000 to another. He also
loaned $780, COO TO the Bradford Mills com
pany of which he was owner. Bardsley
also sold and converted TO his own use S51,-
600 worth of government bonds he held for
the city, but this money was subsequently
returned. The expert found Bardsley's
stock operations cost him in the neighbor
hood of Sl00,0OO.
Attorney Alexander, for Bsrdsley, cross
examined Expert Accountant Brown, the
substance of whose testimony was that the
investigation had not gone far enough 10
say positively that auy money has actually
gone into BardSley's pockets. Brown was
also forced TO acknowledge that there was
an actual profit TO the city of about $1,000
| between the money received at interest oy
Bardsley and the money he lost in stocks
as this money had been turned over 10 the
| city. Brown further said with the excep-
ton Of the school fund the city's fund was
| intact.
| Bardsley then arose and proceeded to
read his long expected statement,
occupying an hour in doing so
A summary Of his itemiZed statement
shows a net balance due the city OF Sl9l, DOL
and net balance due the state of s., OG2,
769. This balance is accounted for as fol
lows: Clearing house due bills found in
the Keystone bank, s925, 900; receipt OF the
resident Of the keystone bank for one
hundred bonds Of the Baltimore Traction
company Of $1,000 each, 500, 600, in notes
taken from G. p. Haines for cash given
him to assist the keystone bank 5000;
$50 shares of stock in the Farmers and
bank, sos; cash in the hands of the as
signee, 5000; total, 3, l55, sos. Balance
due the city and state, $3s, o72.
The statement says: This accounts for
all the money intrusted to my care except
| by receipt alance of $685., S22 which Is many
times overcome by property over claims
made over 10 assignee"
Regarding his transactions with the
Keystone bank, Bsrdsley says when he
took the office he found his predecessor had
on deposit there 81, 1O0,O S1OO,OOO In ex-
cess of the law. He reduced the balance
| to less than the legal limit and thereafter
kept within thot limit, except tor three or
four days. Transactions with the bank up
to the panic of 1880 were satisfactory. Then
posted with the president of the Baltimore
Traders bonds which We're used at the
clearing house for lonns. The bonds or
their face value Were TO be returned 10
Bardsley but never were President
Marsh applied 10 him IN the spring OF 1890
to make other deposits. He complied and
during the year deposited with the banks
s9i5, OO0 of which only $4,000 was returned
TO him. About November lst he notified
the bank that on November 10Th he would
call on them for $+OO,UO0 10 pay the state
treasurer. He was not able to collect IL nor
any part thereof. Remember says
| Bardsley, "this money was placed IN a
bank where there was not suspicion OF
insolvency and even the members of the
clearing house had no suspicion. During
all these months, and especially during
Deceu Der Examiner Drew made many
public declarations that every National
| bank in Philadelphia was sale and solvent"
During the tall oil 1890 he assured Bards-
| ley time and again that the keystone was
ali right and in as good position as any
other national bank in Philadelphia IN pro-
portion 10 lis capital and surplus. When
| the true condition of the DanK was ascer-
tanned Bardsiey says he was with every
body else astonished that Drew uldn't
know OF the insolvency and so expressed
himself to President Marsh, VINO said ne
| believed Drew did know all ABOUT 1t, but
from the fact that Drew was under oOiigs-
tions TO Lucas and himself he (Marsn)
thought Drew wanted 10 assist tue bank
all ne could. Marsh SAID al The time
of Lucas death they held prommis-
sorry notes signed by Drew Tor
money borrowed amounting TO $3.50
| Marsh also stated valuable presents or
sums of money had been presented or gwen
MIR. Drew oy himself and MIR. Lucas. II
assert most positively" continued Bards-
| hau
true condition of the bank, and haI ne
communicated the fact TO me would never
have permitted the city and state and my
own funds 10 have remained there. Marsh
! told me that on one occasion during Lucas
| life Drew came to examine the bank, but
on the request of Lucas postponed IT for
weeks. Marsh said Drew's assistant at
one time boarded with him anc kept him
fully advised Of Drew's intended move
mentS."
Bardsley asserted that all statements
that ne knew anything about or connlved
at Marsh's fight were absolutely false. He
never had any relations with Marsh other
than as a deposition during his period of of.
nee He never had any transaction with
Postmaster-G General Wanamaker nor nc
personal knowledge OF that gentleman's
transactions with the Keystone bank.
He (Bardsley) did write sletter
| to Wanamaker while the latter was
travelling with the President in California,
asking him to use his influence with Comp
troller Lacey in favor of the appointment
of City Com ptrolier Thompson rs receiver
of the bank. and also visited Lacey in
Washington for that purpose. 1t is true
that ne (Bardsley) loaned state moneys to
Glendennin & Co., stocx brokers. Also u
a number of banks and banking institu.
tions through II. II. Yard. He
also deposited state money in the
Seventh, Manufacturers, Spring Garden,
keystone, Third National, Peoples,
| Columbia, Chestnut Street and Drexel's
bank, and did receive interest from each OF
said banks. He also deposited state moneys
with the Farmers and Mechanics National,
and received interest thereon. In connec-
| ton with this bank the president loaned
him money with which he purchased 1900
West Chicago Passenger railway shares a,
| about $50 per share, q large portion Of which
was afterwards sold by the bank at 1874
Der share. He positively denies that either
city or state money was used in that trans
action. In concluding his statement,
Bardsley said for the past twenty years
his household expenses have never ex-
ceeded 81, 500 per year. which also included
his personal expenses. In March last
/, he moved to Germantown to be near
| his factory. buying in June last
property costing $40, 900, which sum repre-
sented his wife's savings and his savings
from all outside sources. He admits thai
he loaned state money to various banks
and others, not knowing there was any law
against il. Every dollar he loaned, either
| TO Glendenniug & Co. or banks, was re-
turned at the Tune fixed, together with in
terest, and Ill this money, both principal