Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1891-06-20
fLACEY's STATEMENT
Regarding the Course Pursued by
Him with the keystone Bank.
Bank Examiner Drew's Conduct Explained
and Commented Upon--Mr. Wanna
maker Failed to Eject Recog-
milton of Bank Although
Very Anxious to DO SO.

WASHINGTON, June 15.-The state
nent prepared by Comptroller Lacey
and sent to Mayor Stuart of Philadel-
phia on the course pursued by him with
the Keystone bank of that city was
made public here last night. The state
ment included the letter of Bank Ex-
aminer Drew of January % notifying
him of the 5000, 0,000defalcation of Lucas,
the late president of the bank In this
letter Mr. Drew explains how by adroit
manipulation of the accounts of the
bank Lucas, with the assistance of
Marsh, the former cashier of the bank,
distracted large sums of money from
the bank to use in speculations in real
estate. Marsh, he reported, was igno-
rantly led into these transactions and
promised Lucas when the latter was on
his death-bed to continue the deception
under representations that the money
distracted would soon be returned to
the bank from the result of Lucas en-
terprises. Drew also reported that there
was no evidence that Marsh had profited
by these Irregularities. a..
Later on January %, Mr.. Drew, in an
interview with the comptroller at Wash
ington, stated that in his Judgment and
in the opinion of the clearing house
committee, the property conveyed to
the bank by the Lucas estate was equal
in value to the Indebtedness which had
been concealed and that in any event
the creditors Of the bank were entirely
safe; also, that to sever Marsh's connec-
ton with the bank would excite suspic-
ion, and that Marsh was thoroughly re-
pentent and was actuated by an earnest
desire to do all in his power to assist
the bank in recovering any sums which
had been improperly taken from it Mr.
Lacey says he did not close the bank
then for the reason that he had no law
full authority to do SO upon the facts
submitted, and for the further reason
that he was advised by the bank exam
iner, Drew, that the capital of the bank
was unimpaired.
Further and later reports from Bank
Examiner Drew convinced the comptrol-
Ter that the board of directors were
slow in putting matters in satisfac-
tory condition, so on March 7th he levied
an assessment of S250.OOO upon the
shareholders on the promise of the COM
mittee of directors of the bank that the
assessment would be paid within a
week. On March 18th Mr. Drew COM
planned of little active support from the
directors in the effort to re-habitate the
bank. This reached the comptroller on
the 10th and three days later he closed
the bank.
The comptroller states that Postmas-
ter General Wanamaker never directly
or indirectly suggested or solicited any
delay in the closing of the bank, nor in
the appointment of receiver, except
as appears by the telegram hereinafter
quoted. In fact, l have met him but
once during the present year, and that
meeting was on the 21st day of March
at the suggestion and in the presence of
Hon. A. b. Nettleton, then acting sec
retary of the treasury. This interview
was the day after the keystone bank
was closed and the failure was fully
discussed.
''He substantially confirmed the in
formation l received from Mr.. Marsh,
and said that he held as pledge certifi-
Gates representing about .. 500, 900 shares
of stock in the Keystone bank and that
he had declined TO surrender them un-
less the Lucas estate would pay him the
amount his due | urged him to use his
influence in, aid of the efforts being
made to reopen the bank. He promised
to look into the matter the same night
on his return to Philadelphia failed,
however, in my attempt to enlist him in
the enterprise, and SO ended ali commu-
nication between us on any subject con-
nected with the banks affairs, except
ing the receipt of the following:
PosT OFFICE DEPARTMENT,
WASHINGTON, April 9, 1891 (
HON E. 5. LACEY, Comptroller-Mr. Marsh
OF the Keystone bank came down last night to
say that IL was reported you intend to appoint
receiver for the Keystone bank unless some
thing more definite was done today believe
nothing would suffer from giving them twenty
four hours longer at the end OF which time
they NAV put on paper something more deti-
mite 10 be pres 10 you. From what he
says they are getting aon@ well in securing
subscriptions 10 the ney stock l would re
commend appo.n ment of % recsiv de-
ferred. say. one uay until he mas an opportunity
TO State something more definite.
JOHN WANAMAKER:
In concluding the statement" Mr..
Lacey says, Il deem it my duty to say
that, in my opinion, the several reports
made by the bank examiner did not re-
fleet the true condition of the bank
under consideration. The degree of
blame, if any, which properly attaches
to Mr.. Drew, is yet to b. ascertained.
In the meantime, however, he has been
directed to suspend examination until
the facts are submitted and conclusion
reached"