The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1891-06-04
BAD BANKING,
Testimony Showing Criminal Ianage-
lnent of a Philadelphia Bank.

Testimony Showing Criminal Manages
,nent of a Philadelphia Bank.
PHILADELPHIA, June 3.-Francis w. Ken
nedy, president Of the suspended Spring
Garden National bank. was arraigned
to-day before United States Com
missioner Bell, charged with max
ing false returns to the con-
troller of the currency, making false en-
tries in the banks books and with the en-
bezzlement OF $500, 600 and upward of the
banks funds. Henry H. Kennedy, cashier
of the bank, was also arraigned with his
brother, charged with conspiracy with him
and being guilty himself Of the first two
charges OF the Indictment.
In addition to the charges brought
against them by the federal authorities, the
Kennedys are under $40 900 bail each to an
swer in the state court to the charge of re-
ceivins money at time they knew the
bank was insolvent.
Bank Examiner Drew, who testified to
his taking charge of the bank at the request
Of President Kennedy. Witness asked Mr..
Kennedy if there was anything
crooked in the management Of
the bank, and was told by Mr.. Kennedy
that there was. He found in the
drawn on the Spring Garden bank to the
amount OF $4,000 and other papers that
raised the sum total to about 100000.
President Kennedy's account was shown bv
the books to be overdrawn $40, 5s7.
Harry %. Turner, paying teller, identified
the checks of President Kennedy that he
were carried by order of president Kennedy
On Feb g. the day previous to the visit of
the bank examiner by order Of the presi-
dent, he transferred $4,000 of the
'carrys" he had in his drawer to
loans and discounts, and $4,000
Of it to F. W. kennedy's account.
BY this arrangement cash balance OF
$54, 900 was shown instead Of $4,000. After
the departure Of the bank examiner the
''carrys' were gradually increased to the
amount they were
WHEN THE BANK FAILED.
Samuel A. Mcclure, assistant cashier,
testified that he kept the stock ledger, and
shares OF stock. He spoke to President
Kennedy about 1t. and was told that he
should have the certificates the next day.
The next day the bank examiner visited
the bank and witness, relying on the prom
Use of President Kennedy to give him the
certificates of over-issued stock, took a trial
balance by charging the over-issued stock
to the account OF depositor and F. w.
Kennedy.
Samuel R. Shute, clerk, testified that on
Feb. II, last, he was keeping the Individual
ledger account. w. w. Kennedy's &C
count at the time was Ouerdrawn
to the amount of $4,000 and
the entry so showed in the book.
The bank examiner was at the time exam.
lining the bank, but before he arrived at
witness book Cashier Henry H. Kennedy
came to where he was working and altered
the date to the day preceding
and then brought him some de-
post slips for. about 100000. These slips
witness entered to the credit Of r. w. Ken
nedy, thereby making it appear that the
bank owed Kennedy about $4,000
Several other clerks of the bank
also testified that Directors Young
and Evans owed the bank respectively about
$4,000 and $29O,OOO, and that President
Kennedy owes III the neigh borhood of $780,
700. ..... >..
President Kennedv's bail was fixed at
S2O, 600 and Cashier Henry H. Kennedy's at
$4,000. Bail was entered for Henry Il.
Kennedy at once.