Los Cerrillos rustler. (Cerrillos, N.M.) 188?-1891, 1891-06-26
The KEYSTONE BANK.
Statement 81 C.mptFsiier of the Treasury
Larsf on the niE Dsfslo.tisn.

La-sf en the niE Defsic.tisn-
WASHINGTON. june iA-Aftcr care
ful preparation and after submission 70
his supcriurA the statement of Hon T.
= Lacey. comptroller Of the currency,
relative d the downfall - the Key
stone bank of PhiladelphiA has been
made public by Secretary OF the
Treasury Foster. 90 whom IL l. adj
dressed II IA a v~oluminous document
containing p.o01 words. and embodies
correspondence and papers bearing
upon the Quaker City's financial
daL II Is Ia the form Of q communica-
ton % Secretary Foster The state
ment opens with the letter Of Bank
Examiner Drew. January -. notifying
him IL the sos. 600 defalcation - Luz
ra~ the late president 81 the bank In
this Mr.. Drew stated that IL
appeared that Mr. Lucas, dur
iug his presidency Of the bank. had,
with the c0nuivance Of the cashier. MIR.
Marsh, later the president Of the bank,
carried out, by adroit manipulation Of
the accounts 81 the bank for a series Of
years, a scheme for systematic abstrac-
ton from the bank Of large sums 10
assist his spcculations in rcal estate AZ
Spring Lake and Sea Grit n. j., as
well as Ia the construction Of the large
building on Chestnut street Philadel.
phia, occupied in part by the bank.
The statement set forth n letter from
Mr.. Lacey 10 Mr.. Drew on March II,
replying Ia Mr.. Drew's letter of the
14th, in which he said: "The condition
Of the keystone bank is such hat ]
must insist upon the prompt payment
Of the large part Of the amount Of their
assessment within the next five days OF
else | shall feel called upon 10 take per-
emptory action. ! do not feel az liberty
10 allow matters 10 proceed any further
under the conditions which nov exist
and you will please so inform the par
ties in interest without delay and advise
me Of their reply"
1.-The comptroller has been criticised
for three things" the statement con-
times. First, for allowing Mr.. Marsh
90 remain in Office after his confession
and not causing his arrest; second, for
delay in closing the bank; third, for
delay in appointing a receiver. As TO
the first matter complained OF ] have
this to say-that am nowhere charged
with any responsibility in criminal
prosecutions, and a bank examiner Is
held 10 have done his duty as Dol as
he lays before the United States at
-torncy any facts involving crime
which may come to his knowledge
in the discharge OF his duties. Every
bank examiner is instructed and
expected t. do this and | could not
avoid the conclusion that Mr.. Drew had
discharged this duty after reading his
letter Of January "a, in which he says
that he was assisted In securing n set
Element with the Lucas estate by Hon.
John j. Reed, United States district at.
torney, whom he had employed TO aid
him ia the transaction. | had the right
tn suppose hat from that time on TO
h final arrest that the United States
district attorney was fully informed as
TO Marsh's conduct, also the clearing
house committee with the directors of
the bank twho were really the respon-
stble pnrticsl and the examiner.
"Second-For delay in closing the
bank. In regard TO this matter | desire
u say That the comptroller can only
net IN accordance with law and so far
rs this east was concerned he was gov
Trucd ny the provisions Of section | OF
The a.. OF June 30, 1876, under which
the cnnptr | or coul not name n re-
urt YER unless s9'iSird ~ the banks In.
EO vSncy. The cutirc force of the crit.
ic' m is narrowed down TO this
that the comptroller in the CON
., emit ms exc else Of the discretion
inposcl on lin by the E atute,
decided that II "a, wiscst and est &c
impose the lighter of the two penalties
which the la'r provides and give the
hank fourtcen days in which 10 pay an
assessment under section b2Oj rather
than tp Immediately order Il closed
" it'll al that such "a disaster NJ ans.
~ hird-For delay app lint ig a re-
cciver. This criticism IS OF very little
importance in any even and mas been
pretty fully discu scd n ready.
I'm closing this branch of the sub
j"ct IN justice IN n whose name has
been brought into the aiscussion OF this
failure, ! desire to state that Hon John
Wauamakcr has never directly or indi-
rectly suggested or solicited one days
delay in the closing of the bank nor in
the appointing Of II receiver"