Los Angeles herald., 1891-06-24
The Quaker City Defaulter's
Sentence Suspended.
He Makes a Long Statement in
His Own Behalf.
Not a Dollar Embezzled by Him in
Any Manner.
Ignorance OF the Law His Only Crime.
Bank Examiner Drew the Real
Defaulter.
Associated Press Dispatches.

Associated Press Dispatches.
PHILADELPHIA, June 23.-John Bards
ley, the ex-city treasurer who severa
days ago pleaded guilty OF embezzlemen
of public funds, was brought to court foj
sentence today, but on motion of the
district attorney sentence was suspended
indefinitely.
The district attorney opened the pro
ceedings by stating that he wished te
call some witnesses so the court coulC
get some information on which to pass
sentence. An expert accountant testi.
fed that Bardsley in his two years and O
half of incumbency of the Office of city
treasurer, received 100000 in interest
on public. funds; chat Bardsley used
$500, 900 in speculation and had loaned
5000, 900 to one banking firm and $780,
900 to another. He also loaned $400, 900
to the Bradford mills company, OF
which he was the owner. Bardsley also
sold and converted to his own use $57 900
worth OF government bonds he held for
the city, but this money he subsequent
ly returned. The expert found that
Bardsley's stock operations cost him in
the neighborhood OF 100000. Il
Attorney Alexander. for Bardsley,
cross-examined Expert Accountant
Brown, the substance of whose testi-
mony was that the investigation had
not gone far enough to say positively
that any money had actually gone into
Bardsley's pockets. Brown was also
forced to acknowledge that there was an
actual profit to the city OF about $780,
900 from the money received as interest
by Bardsley, after deducting the money
he lost in stocks, as this money had
been turned over to the city. Brown
further said, with the exception OF the
school fund, the city's fund was intact.
Bardsley then arose and proceeded to
read his long-expected statement, occu-
pying an hour and quarter in doing so.
The summary of his itenlized statement
shows a net balance due the city of
$l9l ,06l, and net balance due the state
OF 81 ,002, 796. This balance ID accounted
for as follows: Clearing house due bills
from the Keystone bank, 1926, 900; re-
ceipt OF president OF Keystone bank for
100 bonds OF the Baltimore Traction
company, $1,000 each, 100000; notes
taken from j. P. Haines for cash given
him to assist Keystone bank, $25 600;
$50 shares stock in the Farmers and
Mechanics bank, $l00, 900; cash in the
same bank, $S08; cash in the hands OF
assignee, $4,000; total, $1,155, ,S0S; bal
ance due city and state, $38, 1922.
The statement, continuing, says
'This accounts for all the money en-
trusted to my care, except balance of
$43S, S22 which is many times overcome
by the property and claims made over
to the assignee
Regarding his transactions with the
keystone bank, Bardsley says when he
took the office he found his predecessor
had on deposit there 81 ,100, 900, 800 900
in excess OF the law. He reduced the
balance to less than the legal limit, and
thereafter kept it within that limit, ex-
cept for three or four days. His tram
sactions with the bank up to the panic
OF 1890, were satisfactory. Then he ewas
appiled to for assistance, and
deposited with the president the
Baltimore Traction bonds, which were
used at the clearing house for
loan. These bonds, or their face value.
were to be returned to Bardslev. but
never were. President Marsh applied
to him in the spring of 1890 to make
other deposits. He complied, and dur
ing the year deposited with the bank
$945, 900, of which only $40. 900 was re-
turned to him. About November let.
he notified the bank that on November
Goth he would call on them for S4O0. 900.
to pay the state treasurer. He was not
able to collect it, nor any part thereof.
Remember" says Bardsley. ssthis
money was placed in the bank when
there was no suspicion of insolvency.
and even the members OF the clearing
house had no suspicion"
During all these months, and especial
ly during December, Examiner Drew
made many public declarations that
every national bank in Philadelphia was
safe and solvent. During the fall of
1890 he assured Bardsley time and again
that the Keystone was all right, and in
as good position as any other national
bank in Philadelphia in proportion to
its capital and surplus.
When the true condition of the bank
was ascertained, Bardsley says, he was
with everybody else astonished that
Drew did not know OF it's insolvency.
and so expressed himself to President
~-s@A aA%3 V''C o"tA hC bClkcVcQ DfeW QlQ
not know all about it.; but from the fact
that Drew was under obligations to Lu-
cas- and himself, he (Marsh) thought
Drew wanted to assist the bank ali he
could. Marsh said that at the time of
Lucas's death he had promissory notes
signed by Drew for borrowed money.
amounting to $3.50. Marsh also stated
that valuable presents or sums OF money
had been presented or given to Drew by
himself and Mrs. Lucas.
Il assert most positively" continued
Bardsley, "that Drew should have
known the true condition of the bank.
and had he communicated to me.
would never have permitted city and
state funds and my own funds to have
remained there. Marsh told me that on
one occasion during Lucas life, Drew
came to examine the bank. but on re-
guest Of Lucas, postponed it for week.
Marsh said Drew's assistant at one time
boarded with him, and kept him fully
advised of Drew's intended movements.
Bardsley asserted that all the state
ments that he knew anything about or
'connived at Marsh's fight were abso-
InfnIu folr T. L