The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-03
KEYSTONE BANK FRAUDS.
GOVERNMENT OFFICERS IN A BAD
LIGET.

The Rotten Bank Allowed to Do Busi-
ness Ninety Days After They Knew
of It's Conditional Member of the
City Council Calls for Thorough
Investigation of the Whole Affair.
PHILADELPHIA, Pa, June AIT the clsse
Of to-day's session Of the examination Of the
failure of the Keystone bank by a COM
mittee of the city council. Councilman
Etting, who has taken an active part in the
investigation, offered resolution that the
mayor be requested to write President
Harrison asking him TO order an investiga-
tion Of the conduct OF the treasury depart
ment in connection with the Keystone bank
affair, to order the production Of all the
accounts of the bank. and to order the
controller of the currency, Mr.. Lacey. to
appear before the committee. Mr.. Etting
made most vigorous speech in defense of
his motion.
VERY LITTLE PROTECTION.
He said: 81 am sure il we are to have the
national banking law construed and acted
upon as it has been In the keystone case
there is very little protection offered TO any
depositor. By the confession of President
Marsh, In January, and through no skill or
energy on the part Of the United States
officials, the treasury department became
aware Of The Keystone rottenness, vet for
ninety days thereafter the bank was
allowed to remain open, and the city and
citizens of Philadelphia were invited to de-
posit their money. It matters not whether
the assets now are more or less. Some peo-
pie, who had every opportunity to know
the story Of the rotten bank, had every
chance to get OUT while other people,
who could not know the story, had every
chance to get in.
EXTRAORDINARY ACTION.
at is the most extraordinary action on
the part of the general government that /
ever heard Of Even il our city treasurer
had been honest, he might, for all that was
done by the United States authorities, have
continued to deposit, for no notice. no in
quiry, no warning came TO put him on guard,
or any other city official ON quart The
salary of President Marsh was even con-
tnued at the bank, and every appearance
was held out that the bank was sound dur
ing all this time that the general govern
ment knew by confession of its rottenness.
IL is time we should make
move to right the city's wrongs
and impress upon the authorities at Wash
ington that there must be some very active
assurance Of remedy for these abuses Of
PS"OA "a bAO ROAS VA oAo 6O4OA IA 6ONOA IA
ment."
DELAY ADVOCATED.
Messrs. Smithers and Hicks of the COM
mittee advocated delay and further inquiry
before taking such an important step. Mr..
Hicks said: 81 am not prepared to put
myself in the position Of saying that Con-
troller Lacey's action is suspicious or
questionable. IL may be, but we are
not quite ready TO declare it so.
II - ~ a.
the responsibility first. Let us get exper is
on the books Of the keystone Bank. l am
quite sure that in spite of all Of Treasurer
Bardsley's deoeptions he would not have
jeopardized S945, 600 and more If he had not
been considerably deceived himself"
ETTINa IN A HURRY.
Mr.. EttiDg battled for immediate action.
"rhe chief magistrate should be informed
| Of this infiiotion upon the people Of Phila-
delphia by violation of the banking law.
am not going to say whether
Examiner Drew or Controller Lacey
was responsible, but between them the
bank was kept open after the fraud was
known officially. Such action by the gov,
! ernment, if continued, will be detrimental
to the banks of the city. Here were con-
fessed falsifcations by the former president
and the present president of the bank
amounting to hundreds of thousands.
If the law was properly acted
upon, no mans money Is safe in any bank.
II such letter was to go to the President
backed by the committee Of the councils
and citizens, am certain there would be an
instantaneous production OF the books of
the Keystone bank"
Mr. Smithers said the opinion of the city
solicitor was that the books were subject 10
subpoena.
STICKS TO HIS GUNS.
Every obstacle that | can fancy" re-
joined Mr.. Etting, "has been thrown In our
way. We can look at the treasurer's ac-
counts" he went on with a tinge of sar-
casm, and then exclaimed with tremen-
dous bang of his fist on the table, I'VE want
to look at other accounts and find out what
other men were doing in those ninety days
after the frauds were known and while the
city of Philadelphia was handling her mill
ions in that bank y
THE VOTE.
One other member of the committee
voted with Mr.. Etting and four against
him, so the matter was dropped for the
present The general impression, however.
is that it will be revived shortly. Paying
Teller w. II. Thomas of the Keystone Bank
testified to his knowledge of 1925, 900 in due
bills given by President Marsh TO Treasurer
Bardsley IN exchange for state funds. He
said that another employe and himself were
kept pretty busy running between the Key
stone and Spring Garden banks with cash
in order to prepare for the visit Of the bank
examiner and show the proper cash balance.
An important point In Teller Thomas tes-
timony was to the effect that during his
six years connection with the keystone
bank Bank Examiner Drew dropped in"
about twice week.