The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-06-09
Makes a Statement about His
Dealings With
THE KEYSTONE NATIONAL BANK
He Was Not a Stakeholder and Made No
Money 0ut of it-He Had No
Money from Bardsley.

promptly on hand with his son and part
ner, Thomas B. Wanamaker, and at the
conclusion of the examination, Examiner
Drew read his statement. which he said
was his answer to the allegations that have
connected his name with the keystone
bank and was at the same time full and
complete statement Of all his connections
with the bank. His statement said
in substance: ~ have been deposltor only;
never was an officer or director; never
owned a share of stock, but held until
recently, 2,515 shares as collateral The
firm of John Wanamaker, consisting OF
three persons, had an account with the
keystone bank, and 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 a separate account. 1t was
substantially one account under TWO heads.
Mrs. Wanamaker'S account could not be
overdrawn while the FIRMS account had a
balance 10 its credit. Under these circum-
stances the account was not overdrawn
when the bank closed, according to our
books which show balance in our favor.
II is true the bank charged against our ac-
count at its settlement a short time before
the failure 50, 600 which no one at our of
fee knows anything about, and which we
refused to recognize until it is explained.
We kept up our deposits straight through
the panic"
Mr.. Wanamaker then read a statement
showing the deposits in the keystone bank
for the months of November, December,
January, February and up TO March 20,
reaching total of 81, 203, $50. ''These de-
posts had been gradually decreased, begin
ming with January, knowing, as the public
did generally, that Marsh was comforting
with the shareholders to raise assessments,
and further, knowing II was common rumor
the bank was short. Cru course with the
keystone bank was solely dictated by the
ordinary prudence of business men. | never
knew of any irregularities in the Keystone
bank until after the run, when Lucas in
debtedness was made known to the d.
Z rectors ana | was informed his estate in
tended to reimburse the bank. Later / was
told by President Marsh, for the first time,
that he feared some of the STOCK l held as
collateral was not properly issued. l had
no knowledge that the bank was going TO
close when it did. All discounts granted to
my firm or myself were made in the Gus
Iomary manner"
MIR. Wauamaker said from the best in
formation he has, ne highest amount of
his single paper hell was $50, 900 up to Feb
ruarV 1890 in that month. In addition to
this, he had a discount Of $4,000 for five
months which was understood I'd be per-
sonal TO him Individually at the time he
received it, Any discounts beyond this
are not properly cnargeaole TO the firms
account. On one occasion Marth called
and said he wanted $4,000 OF the firms
paper, as they understood for country
banks They gave il to him and Cor some
time pressed the Keystone to turn over the
proceeds ana finally got Them by pe!cemeal.
-'Before the proper amount was paid, we
learned it was in the Keystone bank and
we had an intimation that it had been
secured for use at the clearing house"
Wanamaker said he never borrowed per-
sonally from the bank except on the occa-
sion ABOVE stated. The paper appearing in
his personal account was paper received in
the course OF business with which he set
tied Lucas indebtedness TO him by reason
of Lucas having failed 10 keep his agree
ment.
yanamaker never suggested any person,
directly or indirectly, to the secretary of
the treasury or comptroller for the receiv-
ership of The keystone bank, nor did he in
any way endeavor to influence the appoint
ment. He did not know his brother had
entered bail for Marsh until he read the
fact in the papers while travelling in the
west. He never had any business transac-
ton with Bardsley individually or as city
treasurer, or with any one representing
him in either capacity. Wanamaker had
esteemed Drew highly for years on his
reputation as bank examiner. After the
bank failed he saw Drew twice and talked
about the question OF establishing new
bank with new men.
Wanamaker knew Lucas in business
way from early manhood and never heard
q whisper against his business entegrlty
until after he was dead. During 1887 upon
the belief that Lucas was a rich man and
the knowledge of his investing IN various
enterprises as q capitalist, Wanamaker
told him of his great desire TO assist in
preserving the independence Of the Read
ing railroad property and that he (Wana-
maker) thought the purchase OF certain
holdings of stock held by parties lnlmlcal
TO reorganization would be profitable and
useful. and invited Lucas TO join him in
such purchase The agreeu ent was verbal
and TO the effect thai Lucas was
to supply certain suns of money
as Wanamaker called for them
and deposit the same to Wanamaker's
personal account in the Keystone hank.
In accordance Herewith from that time
Wanamaker drew checks or that account
to the extent of about 100000. Upon
several occasions when he notified Lucas
money was needed Lucas brought him
stock OF the keystone bank. which he re-
ouested him to use as it was not convenient
to furnish cash at the time. As result
when Lucas died Wanamaker had 2.5l5
shares of Keystone bank stock so received.
not made the deposits as agreed and that
his (Wanamal1er's account was over
drawn. He Immediately made it good by
closing it with commercial paper received
in his business, which was all duly paid.
Lucas therefore, did not in reality furnish
a penny for the purchase of the Reading
stock Wanamaker held, and al the latter
had for Lucas share was the keystone
stock certificates. He held this subject to
the adjustment of his account. MIR. Marsh
and Mrs Lucas urgently desired after the
run last December, to have the stock re-
turned to the bank. This Wana-
maker declined to do. He main
ftaiped this position until the bank closed
and then recognizing the stock had
no money value, and being further assured
that If surrendered TO the Lucas estate it
would help In rehabilisating the bank, he
surrendered it. What he surrendered was
yalueless to him but might possibly help
the bank and save others. Being collat-
eral holder under the law, he could not be
assessed upon the stock, hence any suppo-
sition that he parted with the stock to
avoid assessment is without foun dalton
and fact. !
LAST autumn Marsh claimed the bank had
.trained itself to help customers and
TAINTED help, and the firm paid OF all dis
counts As fast as they fell due. Later,
when the run came, Marsh used to come to
the firm, saying he he'd no one to go TO,
: ssuring them that everything was all
Syht. precisely as he did at the clearing
-.e. He pressed Wanamaker to buy the