New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-08-21
4 REPORT ON THE KEYSTONE BANK.
THE EXPERT ACCOUNTANTS INVESTIGATORS
GIVEN TO THE COMMITTEE.

THE EXPERT ACCOUNTANTS INVESTIGATIONS
GIVEN TO THE COMMITTEE.
pb,,adc,nbia- Aug. 2O.-The subcommittee OF the
ritz Council investigating the affairs of exCiy Treas
nrcr Bardsey and the Keystone Bank met th's "i'ei
noon The report of the expert accountants was SUI
mitted 1t states that from December 1, lo"o' "
January 1891, the period when rumors ahec''le ule
credit of tho bank first began to circulate leeS'
O79 shares of the stock transferred ABOUT oi0
6fh of the entire legitimate issue of stock Under 'e
head Substitution for fictitious assets the report
saws: material portion Of the funds receiVen Hoh
John Bardsley substituted by the Keystone Nd '
tional Bank for fictitious assets During eoNo,a'
months prior 10 March, 1890, two items suosUl''ai
unchanged during that time had been counted as parts
80 ,hs eeerve in tc daily cash settlements namely,
cold clearing house certificates, 100000 ana Nauohal
hank notes, $50 O23 Al: total, $136,O23 A. Ihey
were absolutely false the Bardsley moneys beng avail
able as real assets. These two items were canceieu'
upon March 6, 1890, by further 1aisincauoh anu
transfer to the uebn account as though appheo 10
the discharge of $4,000 OF the bank haOil'es rep
sented in that account, whose aggregate readily ad-
mtted these comparatively small sums. The balance
s23 At, was cancelled the next day.
Ginning TO the account of H. II. Yard, manager, the
report saws: "The account of H. II. Yard was per-
sistently overdrawn during 1890, until its elimination
al ISL All rs on November 49," The entire sum- the
nor saws was presumptvely derived from the Bards-
Yard, there are indca of overdrafts to other per
cons argregating about 100000. At the date of the
hanks failure the overdrafts exceeded $2200o0 In
Guiding that Of Yard. The experts believe that the
s945O 900 was deposited by Bardsley in the bank and
that so far as they can find from the books no material
part OF the money was repaid to Bardsley that a
considerable portion OF the 900 applied by the
bank TO the discharge Of its prior indebtedness STILL
In view of the fact that Clearing House due-bs OF
the bank aggregatng $50 600 issued and paid
during the last ten months OF 1890, many OF them
without any means Of Identification on the books OF
the bank the presumption seems to be warranted that
a considerable amount from these issues was in fact
repaid to Bardsey OF the duebills Issued from March
Is $780, to January 81 1891, for all purpoos, nearly
100000 have disappeared that should be upon tho
files of the bank when the receiver took charge. From
February %, 1880, 10 March 90 1891, the duebills
issued 10 John BaTdsley for all purposes 50 far as
now known, exceeded S2,50O,0O0.
Loans were obtained during 1890 upon what wNS
stated to be the express authority Of the board Of d.
rectors. The authority shown the banks from which
the loans obtained in the form OF copy of
resolution passed by the board and signed by Marsh as
president and John Hayes rs cashier. No such reso-
luton appears upon the minutes Of the boards pro-
ceedngs.
A letter was received FROM DistrctAttorncy Ora
ham, stating that it would be njudicious before
the trial Of Henry H. Yard 10 make public his letters
and those of the AudtOT-Gencral. Mr.. Hicks, mem
Der Of the committee, said that he thought the
mtee should demand explanation from the Auditor
General as his testimony was in direct conflict with
the statements in the letters Mr.. Hicks said that il
the States officers could be shown to have abetted
John Bardsley in the cmbezzlement of the public
funds IL would be Of value TO the city in resisting
the demand Of the State for the Tefunding Of some
of the money. The motion was lost.