, 1891-06-09
WaNAMAKER TESTIFIES.
The Postmaster General APP
pears as a Witness
In the Investigation of the
Keystone Bank.
Tells of His Connection With
Marsh and Lucas.

PHILADELPHIA, June "a large
crowd was present at the meeting Of the
investigating committee today, attracted
by the fact that Postmaster General Wan
amaker had promised to appear and testify
to all knowledge be had in reference to the
banks management. Mr.. Wauamaker
was promptly on hand with his son and
partner, Thomas B. Wanamaker, and at
the conclusion of the examination Of Ex-
aminer Drew, read his statement, which
he said was an answer to all the allegations
that have connected his name with the
keystone bank, and was at the same time
a full n complete statement of all his
transactions with the bank. His state
ment said, IN substance, l have been a de-
positor only. never was an officer or
director; never owned a share OF stock,
but held. until recently, 25l5 shares as
collateral. The firm OF John Wanamaker,
consisting of three persons, had an account
with the Keystone bank aud the firms
account by arrangement with the
bank, was made responsible for Mrs.
Wanamaker's checks upon the bank.
which, for convenience, were kept in a
separate account 1t was substantially
one account under two heads. Mrs.
Wanamaker's account could not be over
drawn while the firm account had a
balance to Its credit. Under these circum-
stances the account was not overdrawn
when the bank closed, according to our
books, which show a balance in our favor.
1t is true the bank charged against u
account at its settlement a short time
before the failure $1,000 which no one at
our office knows anything about and
which we refuse to recognize until it is
explained. We kept up our deposits
straight through the panic.
Mr.. Wanamaker then read a statement
showing the deposits IN the Keystone
bank for the months of November, De-
March 20, reaching a total of Si.263, 1896
These deposits bad been gradually de-
creased beginning with January, knowing,
asthe public did generally. that Marsh
was comforting with the shareholders to
raise assessments, and, further, knowing
it was the common rumor that the bank
was short. Our course with the Key.
stone bank was solely dictated by the ordi-
nary prudence of business men. | never
knew of any irregularities in the Key
stone bank until after the run, when Lu-
cas- Indebtedness was made known to the
directors. and | was Informed that his
estate intended to reimburse the bank.
Later | was told by President Marsh. for
the first time, that he feared some of the
stock | held as collateral security was not
properly issued. | had no knowledge
that the bank was going to close when it
did. All discounts granted to my firm or
myself were made in the customary man
ner.
Mr.. Wanamaker said that from the
best information he has, the highest
moun OF single name paper held was
$4,000 up to February, 1890. In that
month, in addition to this, he had a dis
count OF $50. 900 for FIVE months, which
was understood to be personal to him in,
divilually at the time he received it. Any
discounts beyond this are not properly
charGeable to the firms account. On one
occasion Marsh called and said he wanted
100000 of the firms paper, as they I'M
derstood, for country banks. They gave
1t to him, and for some time they pressed
the Keystone to turn over the proceeds
and finally got them by piece-meal. Be
fore the paper was paid, we learned it was
in the Keystone bank and we had an in
timation that it had been secured for use
at the clearing house.
Wanamaker said he never borrowed
personally from the bank except the one
occasion above stated. The paper APP
pearing in his personal account was paper
received in the course of business with
which he settled Lucas Indebtedness to
him by reason of Lucas haYlng failed to
keep his agreement. Wanamaker never
suggested any person, directly or indi-
rectly to the secretary OF the treasury or
the controller for the receivership of the
Keystone bank, nor did he in any way en-
dcavor to influence the appointment. He
did not know his brother had entered bail
for Marsh until he read the fact in the
papers while travelling in the West. He
never had a business transaction with
Bardsley individually or as city treasurer
or with anyone representing him in either
capacity.
Wanamaker had esteemed Drew highly
for years on his reputation as a bank ex-
aminer. After the bank failed he saw
Drew twice, and talked about the question
Of establishing a new bank with new men.
Wanamaker knew Lucas in a business
way from early manhood, and never heard
a whisper against his business integrity
until after he was dead. During 1887,
upon the belief that Lucas was a rich
man, and the knowledge of his invest
ing in various enterprises as a capitalist,
Wanamaker told him of his great desire
to assist in preserving the independence
of the Reading railroad property and that
he, Wanamaker, thought the purchase of
certain holdings of stock-stock held by
parties inimical to the reorganization
would be profitable and useful aud in
vited Lucas %fs;join him IN such purchase.
The agreemu6t was verbal, and to the