Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-06-09
KEYSTONE KINKS.
POSTMASTER GENERAL WANAMAKER TELLS
HIS SIDE OF TIE STORY
OF the Wrsckiug Of the Keystone National Bank
Of Philadelphia Says He Knew Very
Little Of the Inside Workings Of the In
stitution-He Makes Written
Statement.

Stalemell.
PHILADELPHIA, June S.-Promptly at
3 o'clock the Councils committee inveS-
tigating the Bardsley affair was called
to order by Chairman Van Osten. For
an hour Bank Examiner Drew was fair
ly racked with questions. While Mr..
Drew was giving his testimony, Post
master General Wanamaker and his son,
and partner, Thomas B. Wanamaker,
pushed their way through the crowd
and came into the open space before the
Chairman's desk.
At the conclusion of Mr.. Drew's testi
mony the Postmaster General stated
that he had prepared and proposed to
read a statement that he had in his
hand. He said that the paper was
full and complete statement Of his trans
actions with the bank. In substance
Mr.. Wanamaker read: 81 have been a
depositor only, never was an incorpora-
tor, officer or director. The flrm OF
John Wpnamaker, consisting of three
persons, had an account with the
keystone bank. On this account the
checks OF the firm were drawn. 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
separate account. 1t was substantially
one account under two heads. Mrs.
Wanamaker's account could not be
oyerdrawn while the firm account had
balance to it's credit When the bank
closed our books showed a balance in
our favor. There is a small difference
of So. 900, and if they are right and we
are wrong there would be small bal
against US.
We kept up our deposits straight
throughout the panic, and our total de-
posits in the Keystone bank from No
vember to the Goth of March, the date
of closing, were 81, ,263, 500 10. Knowing,
however, that the bank was short, we
gradually decreased our balance. Our
course with the Keystone bank was
solely dictated by the ordinary prudence
of business men.
81 never knew of any irregularities in
the keystone bank until after the run
when Mr.. Lucas Indebtedness was made
known. At a later period | was told
by Mr.. Marsh, the President, for the
first time, he feared some stock held
af collateral was not properly issued. |
had no knowledge that the bank was
going to close when it did. On one oc-
casion Mr.. Marsh called on us without
solicitation, saying that he wanted $780,
of our paper, not for the keystone bank,
but as we understood for country banks
or other of the banks correspondents.
we gave it to him.
Il never borrowed personally from
tbs bank except on the one occasion
above stated. | never suggested any
person for the receivership OF the Key
stone bank did not know that my
brother had entered bail for Mr.. Marsh
until I read the fact in the newspapers.
never had business transaction with
Mr.. Bardsley individually, or as City
Treasurer. | knew Mr.. John c. Lucas
in business way from his early
manhood and never heard whisper
against his integrity until after he was
dead. During 1887 told him my great
desire was to assist in preserving the
independence OF the Reading railroad
property and invited him to join me in
purchasing certain stockholdings. Mr..
Lucus was to supply certain sums OF
money and deposit the same to my per-
sonal account in Keystone bank. L
drew checks on that account to the
extent OF about $780, 900, he giving
me bank stok occasionally in lieu
of cash. As a result, when he died,
had in my possession 2,515 shares OF the
keystone bank. | then learned that
nv account was overdrawn. and i'm
mediately made it good. No intlmatlon
was ever given me that the stock was
irregularly issued until Mr.. Marsh
called it in question, and desired to have
the stock returned to the bank. Thls l
declined to do, because | did not believe
the stock was an over-issue. When the
bank closed ! surrendered the stock.
| could in this way lose nothing
myself, as that which
surrendered was vaueleSS to me, but
might possibly help in the reorganiza-
tion of the bank and save others from
loss.
Last autumn Mr.. Marsh claimed that
the bank had strained to help its Gus
toners, and that he wanted help, and
we paid off all our discounts as last as
they fell due. Later on when the run
came he pressed me to loan my paper for
use at the clearing house to recover other
collaterals pledged there. All OF when
| declined. About o'clock the night
preceding the day the bank closed, Mr..
Marsh called on me, in Washington, TO
say that he had been to the Comptroller
and informed him Of his doubt OF the
stock. and asked me whether | could in
any way help the bank. said no, ana
the interview closed in three minutes.
In brief. | was "a depositor, but not an
officer of the bank. | did not know the
bank would fail nor did | delay or In
Auence in any way the appointment OF
a receiver. | am absolutely Ignorant
of any transaction with Mr.. Bardsley,
within or without the bank. Instead
of the bank losing penny by me, i
have only been its profitable customer.
Mr.. Wanamaker, in response to ques,
tions by Mr.. Etting. said he borrowed
money on the stock Lucas gave him un-
iii there was question about its verify,
and then he gathered IL up and held 1t.
Mr.. Etting-Did you want value Tor
it after you had been told that II was
unauthorized?
Mr.. Wanamaker-I had pending at