The sun., 1891-06-03

ident Hnrrisoe bechuso "oSoro"s Ss-
sc,ni. Knew OF the Insoivent Condition
o,,he Bank for Three Months and Yet
said Nothing About tho Matter.
PHILADELPHIA Juno 2.-The City Councils
.ommittce Investigating the methods OF OK
Civ Treasurer Dardsley continued Its inquiry
this afternoon. and Granville u. Hnines. one OF
,he directors OF tho suspended Keystone
National Bank testified that he borrowed $685.
ooj for Tho bank in January last from MIR.
yardsey for which Mr.. Hninos's no'e was Eivcn
A. security. MIR. naines admitted that tbere
bod boon nn over-issuo OF stock OF the
Ecrs,on, Bank lie said President Marsh in
,ormod him OF tho ovcr-issue In February Inst.
uo had been informed that there was an over.
issue of about 200 shares. .and that ohm Lucas
wa, President Of the bank nt the time OF tho
overissuc, and Marsh was cashier. The bank
vsnt on with business nfter the discovery OF
,bo Justification until March Is. wheE tho bank
was closed by Bank Examiner Drew. John
Wnnamnker had limo OF discounts at Vne
time. He thought Mr. Wanamaker had ex-
ceedcd his discount privileges. 1t having got
mn TO 100000 but it was soon brought down
10 tho $4,000 limit. This was about year
AGO. william II. Wnnamnker lad line OF
discounts there when tho run wits mnde on tho
bank. since then 1t has been settled up.
No ono made large deposits except the city
between jan. 1 and March 1s The Wanamaker
discounts were regular and without collnterals.
Mr.. stotesbury OF Drexcl \ Co. testified that
Jobn Bardsley had deposited s25.000 several
different lines. on which interest was paid to
him. He came 10 the Office and asked about
ls,ters OF credit to purchase materials abroad
for tho Bradford Mills. In 1888 he wanted his
lima OF credit increased and he gave the firm
s,a,emept Of tho Bradford Mills as being worth
s2Oj. 200. less $4,000 mortgage. with S2O00O0
worth OF stock. OF which he was the owner.
HishIghest credit with DreXcl x Co. was $52,-
O0O which WAS OF gradual growth.
Bank Examiner Drew testified that there
were 2.5l5 shares Of the ovcr-issned stock. 1t
was stock that should heve been cancelled and
was not technically overIssued stock. 1t was
mainly in the name OF John G. Lucas. None
oft was ever in the name Of John Wanamaker.
and witness did not think he was ever stock
holder. nor was William H. Wanamaker. as far
as he could reeollect Mr.. McFadden. one Of
tho directors told Mr.. Drew about the falsifl-
cation OF the books. which was at once re-
ported to tho Comptroller OF the Currency.
Mr. Drew was acting under the latter's in
structions con stantly.
William NJ. Sineerly Of tho Philadelphia Rec
ord. President Of the Chestnut Street National
Bank. was next called. Mr.. EttinR said:
Mr.. SinGerly. among tho assets OF Mr.
Bardsley was a certificate OF deposit In the
ea:.,nSSt Sss. Street National Bank What do you
S Tesks sS ShsSk was .sns to the
il ret and It was only last thursday or RI
Dra6Hnt0d.
Ma{3i; think S that, shat the check was received
magistrate on Friday that the Chestnut Street
National gsakhad ss, paid him interest on GtAts
Iii Ia not true; Ir. Bsrdsley only had one
had some certificates Of deposit about year
al another lims ta5.OoO Hs had only one n; ' ac-
psd e a aa Bss! %s Ss xss
II :. understood NJ; Bardsley to say be was
PAID interest on the state account" said
=, He had no money or any State account in
4kszsIdsf ksG.a then asked about
Sn March il ef sss.65. and 10th others un % to Aug.
w 1890 and Mr.. SinRerly explained that that
" was interest paid on the certificates deposited
what A. would 10 done to any other depobitor.
sfsSs sas9 S.S M to any
-. Nothing at all. and innsmuch a. Mr.. Bards-
MyMas an,, 10 a position where he was said to be
$4,000 Or 6Uo ua' no sn0uia make deposit OF
cosntssssd cM A. sI0ss ,,ia q Mr. Drevs examination
'Rs1, r., the lnyestsa.ion. offered resolution
.sdsSs as s MHsy1r Hay9ison be reGnssted TO write
nrestiaston ask'nS @i iSe hs% e"nauS. nS OF
ihe Treasury Department In connection
p.ous,onn @ saS neys0nS e' M Hnnk ns t. order the
order S Complrollcr Of the Currency Lacey 10 ap-
s'sSSrcpS ssS. S speech e. defence Of his motion; rs
Sankklns ss ling law construed and acts.i upon ~ "
iittio a5 oeen IL the keystone case. there 1. very
o rn%SEasi %ss. '2 IN apy Jsnary sDi
q; M .ss ssaSs sossss ossals On Tie
thereafter tho Iank 'S was vs. allowed d t 70
MTishso MaSn oren and the city and citizens 81 Phii
po1toUie-s SSlU of ie-s Some people who had every OPP
eance to ps r.. s.'y OUT whie Vii other I peo:
sbsnunno Mno couli hot know the story had every
D,,, u, 4 e ,hs most extraordinary action on the
k.ard krGl dot the general Government that ever
IonssstO Is Oi h. Even our City Trensursr had been
Hf AZ ssas boya va. done Ss fhS
ssps spvs. ior no notice. no inquiry, no warning
o0iai.iip 70 put him on guard or any other city |
can,ssoh s, on guard. The salary OF Marsh was oven
Sahu1Iel at mo bank and every appearance |
All ,httli hhttiu Out that the bank was sound during
tns,uD1 DDS Time that the general Government
tS, tM"S oy confession. Of It's rottenness. It "a |
eis's Wo @ should make move tn right the |
tss ., ,WWtongS and impress upon tho authori. |
Sssv r Washington TINT there must lie some |
aetko a.snrances oil u remedy for these |
'pyerhneIt" " '"As W '"o so"''"'
t.s .ssssrs sds,rs smithers and Hicks OF tho Commit.
Htinun. nu.oeatsd delay and further inuuir before |
MI. such IN important step. Mr.. lIicss |
DSt;oi ahi hot preIaied 10 put myself iu the !
seticUo setioh OF saving that COMPTROLLER I.ncey's |
6ut 6on WI ,s suspicious or questionable. 1t mnyis
me are not quito ready 10 declare Ii 40. |
ii,sv rgo go little further and tx the responsi-
IA uSl Let us GET experts on the books OF |
scitnM citnMeSystGne ~ Bank. am quite sure that in |
lava lava ol al BardsIey's decoptons he would not
MI gieopardized sl45. 900 and more II lie had
Erp'gn onsiderably decelyod himself"
brmsg' Tho Chief Magistrate should be in.
EpeIH EMeH o. this iniliction upon the pcople OF |
tSmsnne,phia OF q violation OF the bank ing law,
scax a nol Going tc say whether Mr. Drew or Mr.
GnS, s Wus RESPONSIBLE. but batweon them tho |
onooTT,ans TTas kept open after the fraud WAS known |
eoltInmy, Snch action by the Government, n |
IL Rssni,ueu NV VIII be detrimental to tho banEs OF
HtSa mere We're confessed falsifcations
dsnt ~ ormer President and the present PresI.
ihorsa,dtn tne hank amounting to hundreds OF
rlnn rln'ahas. n. II the law WAS properly acted |
lO man mOnAy a aufa In opv ham, IN