Los Angeles herald., 1891-06-09

100000. Upon several occasions when
he notified Lucas that money was need
ed, Lucas brought him stock OF the
Keystone bank, which he requested him
| to use, as it was not convenient to fur
nish cash at the time. AS the result,
when Lucas died Wanamaker had 2515
shares of Keystone bank stock so re-
ceived. After Lucas's death Wana-
maker found that he had not
made deposits as agreed, and that
his (Wanamaker's) account was over
drawn. He Immediately made good
by closing it with commercial paper re-
ceived in his business, which was all
duly paid. Lucas therefore did not in
reality furnish penny for the purchase
of the Reading stock Wanamaker held,
and all the latter had for Lucas share
was the Keystone bank stock certifi-
Gates. He held this subject to the adj
justment of the account. Mr.. Marsh
and Mrs. Lucas urgently desired, after
the run last December, to have the stock
returned to the bank. This Wana-
maker declined to do. He maintained
this position until the bank closed, and
then, recognizing that the stock had no
moneyed value, and being further as
sured that IL surrendered to the Lucas
estateit would help in the rehabilita-
ton of the bank, he surrendered it.
What he surrendered was valueless to
him, but might possibly help the bank
and save others. Being collateral
holder under the law, he could not be
assessed upon the stock hence any sup
position that he could have parted with
the stock to avoid assessment is without
foundation.
Last autumn Marsh claimed that the
bank had strained itself to help Gus
toners, and wanted help, and the firm
paid off all discounts as fast as they fell
due. Later, when the run came, Marsh
used to come to the firm saying he had
no one sto go to, assuring them that
everything was right, precisely as he
did at the clearing house., He pressed
Wanamaker to buy the Lucas building
and seashore property, and to loan paper
for use at the clearing house to recover
other collaterals, all of which Wana-
maker declined. About s O'Clock the
night before the failure, Marsh called on
Wanamaker in Washington to say that
he had been to the comptroller and in
formed him of his doubts about the |
issued stock, and asked Wanamaker
whether he could in any way help the |
bank. Wanamaker said no, and the |
interview closed.
In, conclusion, Wanamaker said in |
stead of the bank losing penny by him,
he had only been its profitable GUS
toner.
Responding to questions by Elting,
Wanamaker said he borrowed money on |
the stock Lucas gave him, while there
was no question about it's verify and |
then he gathered it up and held it.
Elting said he had been told that
5000, 900 or upward was obtained at one
time from Bardsley by Marsh and loan
ed to Wanamaker.
The latter responded that he never
heard of it; he never had controlled
Bardsley as an individual or as treas
urer, directly or indirectly, through
Marsh or Jones, or anybody else, /
Councilman Smith said; stYou now
have no other choice except to regard |
the possession of the Reading stock as
iully equivalent for the return of the
bank stock"
Wanamaker-I make no claim against
The Lucas estate.
Examiner Drew in his testimony to-
lay said he still thinks the assets of the
bank will be able to pay the deposits
lollar for dollar. When asked if he in
,luded the $930, 900 in due bills held by
3ardsley, he said he did not, as there
we're no traces of the money ever having
,een paid into the bank.