New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-09
PRICE THREE CENTS.
Mr.. WANAMAKER TESTIFIES.
HIS TRANSACTIONS WITH THE KEYSTONE
BANK.

STATEMENT In ANSWER TO THE ALbroA
TIoNS CONNECTING HIS NAME WITH THE
WRECKED NEUTRALITY-SUSPICIOUS.
OF THE PosTMAsTER-GENERAL
AND BANK EXAMINER DREW.
Philadelphia, June s.-Long before the hour SGT
for the meeting of the subcommittee OF Councils
that is investigating the affairs OF ex-City Treas
urer Bardsey, the Select Councils Chamber. I'm
which the meetings are held, was crowded to It's
utmost capacity w. II. Rhawn, president of the
Bank of the Republic. was the first witness, and
his testimony occupied only few minutes, it hav-
ing no important bearing on the investigation
The committee then called Bank Examiner Drew,
who for an hour was piled with questions by Dir.
Ettng, q member OF the committee. While Mr..
Drew was giving his testimony Postmaster-Gen-
eral Wanamaker and his son and partner, Thomas
B. Wanamaker, pushed their way through the
crowd and came into the open space before the
charman's desk The Postmaster-Genera found
seat on the front row, and throughout Mr.. Drew's
testimony followed his answers with the greatest
attention.
At the close Of Mr.. Drew's testimony hhe
PostmasterIGeneral came forward with largo
roll of manuscript in his hand He stated that
as taxpayer he had the greatest interest in un-
raveling the affairs of the Keystone Bank lie
had prepared and proposed to read statement
that he had in his hand lie said that the paper
was an answer TO all the allegations that have
connected his name with the Keystone Bank
and was at the same time o full and complete
statement of all his transactions with the bank.
Before beginning to read, Mr.. Wanamaker said
that when be concluded he hoped the committee
would ask any questions they desired.
The reading of the paper and the subsequent
line of inquiry consumed fully an hour. During
this time Mr. Wanamaker remained standing.
reading the paper and answering the questions
that asked him in clear, confident voice
that was perfectly audible in all parts Of the
chamber. AS Mr. Wanamaker read he OCCASION
ally stopped and said a word or two in eXplana-
ton. At some particularly telling point he would
raise his voice, emphasizing the words and strik-
ing the sheet smartly with his hands. AS Mr..
Wanamaker had said, the paper was categorical
denial of every allegation that has been brought
against him. emphatic and without equivocation.
as were his subsequent answers. Mr.. Wanamaker
further added, at the close OF the reading Of his
statement, that the Committee were fully at
liberty to verify by his books and papers every
thing that was in it. When Mr.. Wsnamaker
had finished his many friends in the room and
among the committee pressed forward and shook
him cordially by the hand. For the short time
Mr.. Wanamaker stayed and listened to what was
going
The evidence given by Bank Examiner Drew
was interesting although there was little new in
it, When he took the stand Mr.. Drew stated
that he first discovered that there was an overiS-
sue of 2,5I6 shares of stock in March that the
shares had been returned TO him on March 2S two
weeks after he had learned of the overssue, by
Samuel b. 'Huey, counsel for the Lucas estate
Subsequently in his testimony Mr.. Drew said that
the now fugitive president Of the bank, Marsh,
had first told him of the overissued stock and
that he told Marsh it must be returned. This
took two weeks. The stock as returned to him
was in ten or twelve certificates. all of which
were signed by the late John G. Lucas, president
of the bank. Mr. Drew said that without the con-
fesson of Marsh he would not have discovered the
deficit in the bank by means OF the books. He
was first told of the Lucas deficit on January 8.
by Charles McFadden. director Of the bank, and
from that time on until he made his official re-
port to the Controller of the Currency he kept
that official Informed of the banks condition. Mr..
Drew said that Marsh was not arrested before he
was, because he was being used to obtain for the
bank the money due it by the Lucas estate. Mr..
Drew did not report to the Controller when he
first heard that the Lucas deficit was likely to
reach a million dollars. as he thought the state
ment exaggerated and he waited 70 verify it by
the books. He denied that he had been more
intimate with the officers of the Keystone than
with other banks. Mr. Drew said that Mr.. Wana-
makers lire of discounts did not amount to 81 00,-
600 or $I5O.O 600 in December last lie said that
he did not think that tie Lucas estate owed more
than 5000, 900 to the bank. In conclu-
sion Mr. Drew stated that he still
thought the assets OF the bank would be able to
pay the depOsitOrs dollar for dollar. When asked
if he included the $3.50 900 in due bills held by
Bardsley as among the liabilities OF the bank
Mr. Drew said he did not. as there was no trace
Of the money ever having been put into the bank
lie placed the total liabilities to depositors at
81 400, 900 and TIE assets at about the same.
This concluded Mr.. Drew's testimony, and
Postmaster-General Wanamaler was called. lie
said:
glad 10 have the proper opportunity 10 give such
information possess in matters under inye.tig
ton by your committee. have noticed the comments Of
newspapers and IN the habit Of running after
gossip held myself aiy furnish call whatever
had interest your committee and the public.
anxious and have much interest any other 10 pro-
city treasury from losing the funds provided by
axpayers.
In order to cover every point that has my notice.
any whatever and that there be ques-
ton as 20 what state reduce writing what have
soy and will hand copy OF It to your committee for
record II you request may add that what here sub
practically what freely stated TO persons
q: various times during the last few Ageeks. Have
depositor only; incorpSator officer
director. 1 never owned share Of the stock held
recently 2jI5 shares collateral, hereinafter
stated firm OF John WansmakeF, consisting OF three
persons, had account with the Keystone Bank On
this account the checks Of the firm were drawn. The
lrm occount. by Arrangement with the bank was mado
rcspo ibe for Mrs WanamaScrs checks upon the bank
which for convenience Kept In separate account
1t was substantially account under two heads. Mrs.
Wanamakers uctount could not be 0vadrawn while tho
nyu, account had a balance " credit. Under these
circumstances the account was not Ovcrdawn when
tho bank closed accord ug 70 books, which show
balm ca In our favor. IL is true That there was
item dat the charged against account at It's
settlement month before II failed Of about S3 co.,
which no one az any ag abou and which
we refused ~ recognize until IL explained. II they
are right and wrong there would be small bal
ance against US.
Though our confidence the timo Of the Dscem.
bcr unshakn business men it Of
or les impaired after te run We kept up our deposits