Evening journal., 1891-06-03
THE EVIL THAT MEN DO.
That of Lucas Did Indeed Live
After Him. q
HEBEGAN THE QUAKER CITY CRASH.

III bhuhN Aub QuAhhh O1l Ohhnns
How Three Banks Were Wrecked, One
President Placed In jail, Another
Forced 10 Flee and Ex-Treasurer Bards-
ley Ruined.
PHILADELPHIA, June 3.-"The evil men
do lives after them; the good is often in
TERED with their bones,n said one OF the
highest officials OF Philadelphia to your
correspondent today in speaking OF the
astounding developments in the City bank
defalcations. John G. Lucas, the dead
president OF the keystone National bank.
started the gigantic bank wrecking, which
two years after his death has ruined three
banks, made one president defaulsar,
another president fugitive and the trenS-
urer Of the city, "Honest john Bardslcy.
a bankrupt, with a prospect of twenty
years in the penitentiary.
All NIeurned His Death.
John G. Lucas was universally esteemed.
His management was said to have created
the keystone bank, which. before he died,
built one Of the finest bank buildings in
the country. His untimely death was nt-
tributed to oyerwork His life had been
put into the bank, every one said Rev.
DIR. Tiffany came over from New York to
deliver eulogy. Mr. Wanamaker. the
postmaster general, spoke with visible
emotion over the coffin Of the high qual-
ties which had won universal esteem Tor
the dead man. whom he had known in
business for years The directors OF the
a
the name Of their new building TO the
John G. Lucas Building Last Deeem-
ber the extreme stringency OF the money
market made every bank look to ils re-
sources.
Nearly One Million Dollars Gone.
Then, two years after the revered pr4si-
dent Lucus' DEATH Il was discovered that
he had taken nearly 81, ,0Oo. 600 OF the banks
cash and lost u in a land speculation. No
one'knew it except the cashier, Gideon W.
Marsh, and when he was elected president
Of the bank he not only concealed the
wrongdolng of the late president but
started ia on the same line for himself.
To obtain ready money he induced the city
treasurer, Bardsley, who had also been
specializing 10 stocks, TO increase the city
deposits in the keystone bank. BardSley
put over 81 300 600 state and city money ia
the bank, and Marsh secretly paid him
Commission or interest for the use OF
this money
The bank thus tided over the December
run, but suddenly a month later closed it's
doors. The United States bank examiner
had discovered that something was wrong.
Even then the bank examiner did not re-
veal what he found. He showed either
culpable weakness or Ignorance.
No Appeal 20 Harrison by the City.
Councilman Etting introduced in coun-
ellis a resolution directing Mayor S.uart
TO call upo1 President Harrison 70 order
an investigation Of the bank examiners
conduct. The resolution created a seasa-
| tion, but was voted down It Is believed
that the examiner was simply weak in not
ordering the immediate arrest of President
| Marsh. AS it was, he gave him time TO
close deals then on hand and then quietly
slip away to Canada or Brazil
Bank Examiner Drew Criticised.
Bank Examiner Drew was before the in
vestigating committee and was tortured
with questions as 70 his own blindness in
permitting so many thefts under his Off
cial eyes aud hands He is believed to be
only weak and inefficient. The disclosures
of the day were that Presidents Marsh and
Kennedy constantly loaned 20 each other
TO fool the bank examiner and that Drew
visited the Keystone on an average twice
a week for six years
John wanamaker's Account
II was also shown that the firm of John
Wanamaker had 100000 discounts more
than the banks S capital allowed; that Mrs.
John Wanamaker had overdrawn her ac-
count a few thousand dollars, and that
there was an overissue Of 4,5l6 shares OF
stock Assignee Magill exhibited City
Treasurer Bardsley's due bills for S0l5 O00,
and their difference in color and irregulari-
BY Of numbers made it apparent that Pres
ident Marsh had private due bill book in
imitation Of the regular one.
Mr.. Wanamaker is not concerned in the
matter personally. He was not a stock
holder IN the keystone. The bank is oppo-
site his place OF business, andis one OF three
in which his large running accounts are
kept. His balance was sometimes so large
that President Marsh was anxious to keep
1t. When the bank failed the commercial
paper OF the Wanamaker firm, which had
been discounted there, was Immediately
taken up.
Kennedy and Bardsley seem to be stand
ing rheir confinement well Bardsley will
soon be removed from the hospital, as he il
much improved in health