Los Angeles herald., 1891-06-03
BARDSLEY'S METHOD
Being Investigated in the
Quaker City.
Government Officials Shown Up
in a Bad Light.
Bank Examiner Drew Placed in
Awkward Position.
He or Comptroller Lacy Responsible
for Keeping the Keystone Bank
Frauds Concealed.
Associated Press Dispatches.

PHILADELPHIA, June 2.-The city coun-
cil's committee investigating the meth
DDS OF ex-City Treasurer Bardsley con-
tinued its inquiry this afternoon, the
keystone bank doings being under in
spection. Bank Examiner Drew stated
that there were 2515 shares of so-called
bogus stock. 1t was stock that should
have been cancelled and is not techni-
cally ver-issued stock. 1t was mainly
in the name OF John G. Lucas. None of
it was ever in the name of John Wana-
maker, and witness did not think he
was ever stockholder, nor was William
III. Wanamaker SO far as he could recol-
lect.
Mr.. Alexander, counsel for ex-Treas-
i urer Bardsley, cross-examined Drew
very sharply. Drew said he had made
a semi-annual examination of the Key
stone bank for the past ten years. He
was not prepared to say that it was not
indebted to the amount of 100000 or
$500 600 to other banks during the past
three or four years.
'.Do you ever remember before Lucas
died, /" asked Alexander, "having once
called upon the Keystone bank week
too soon2''
II don't remember any such thing"
replied Drew.
ibid you not come to Philadelphia
once to examine the keystone bank,
and then defer the examination for
week."
mo, SIR"
AT the close of Drew's examination,
Councilman Elting offered resolution
that the mayor write President Harri-
son, asking him to order an investiga-
tion OF the conduct of the treasury de-
partment in connection with the Key
stone hank affair; ordering production
of all the accounts of the bank, and the
appearance of Comptroller of the Cur
rency Lacy before the committee
Elting made vigorous speech in de-
fense OF his motion. He said if the
banking law was to be acted upon and
construed as in the Keystone case, there
would be little protection for any de-
positors. By the confession Of Marsh
in January the treasury department be-
came aware OF the Keystone's rotten
ness, yet for ninety days there
after the bank was allowed to remain
open and the city and citizens
of Philadelphia invited to deposit their
money. Some people who had every
opportunity to know the story of the
rotten bank had every chance to get out,
while people who could not know the
story had every chance to get in.
ut is the most extraordinary action
on the part OF the general government
ever heard Of" said Elting. 81 am not
going to say whether Examiner Drew or
Comptroller Lacy was responsible, but
between them the bank was kept open
after fraud was known to exist, officially.
Every obstacle has been thrown
in our way. We can look at
the treasurer's accounts, but we want
to look at the others and find out what
the other men were. doing in those
ninety days after the frauds we're known
and while the city of Philadelphia was
depositing her millions in that bank"
One other member of, the committee
voted with Elting, and four against
him, so the matter was dropped for the
present, but it is expected to be revived
shortly.
Paving Teller Thomas, of the Key
stone bank, said another employee and
himself were kept very busy running
between the keystone and Spring Gar
den banks, with cash to prepare for the
visits of the examiner.
An important point in Thomas's tes-
timony was to the effect that during his
six years. connection with the Keystone,
Examiner Drew dropped in about twice
a week.
President Singerly, of the Chestnut
street National bank, said Bardsley was
not paid any interest on what city money
he had in the bank. He had no money
of the states account on deposit.
The latest sensational outcome of the
bank matters is that the validity of the
clearing house agreement between the
national banks is shortly to be tested in
the United States court.