The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-15


oank on the president render uaited and
jealous cooperation on thsir part, at least
Tor the present, out OF the question. have
earnestly endeavored to supply the vacan-
cies In the board with other and desirable
men, but, under the circumstances, few
such are available.
DREW DISAPPOINTED.
Il am greatly disappointed in finding 50
little active support given by the directors
In the effort to rshahilitate the bank, and
at times am fearful that the continual
strain under which the president unavoid-
ably labors may result in the
sudden and hopeless breaking down of his
physical energy. He seems we'll, however.
II you can make suoh orders upon the
directors OF the bank as will compel an
earnest and effective cooperation OF their
part l shall be glad to enforce them"
The controller says this communication
reached him on March 10, and thres DAYS
later he telegraphed Mr.. Drew to CLOSE the
bank.
CLOSING OF THE BANK.
"The bank was closed on the night of
March 10 and did not re-open for business.
The order to close it was given after an in
terview with President Marsh at my hous
on the evening Of March 10. He at that time
informed me of the fact that certificates
representing about $500 shares Of stock in
the Keystone National Bank had
been improperly delivered to John
Wanamaker during the lifetime Of John
G. Lucas and that negotiations for the sur
render and cancellation of the same had
failed, for the reason that Mr. Wanamaker
claimed to hold them as pledge for the
payment Of certain sum Of money due
him from the estate of John @. Lucas. and
he declined to surrender the stock until the
debt was paid. Upon learning these
facts from President Marsh. Immediately
determined to close the bank, but did not so
inform President Marsh.
TOLD TO TELL wANAMAKER.
"I asked him to go to the residence of Mr..
Wauamaker and tell him that | had been
informed as to the existence of this stock,
and then to return TO my house My pur.
pose in this was TO secure time enough to in
form ths department Of justice and give an
opportunity for President Marsh's arrest
before he left the city in case that course
was deemed advisable. AS soon as
President Marsh left my house
| called at the residence of the
Attorney General, but learned that he was
not in the city. l then laid the facts be-
fore the solicitor general, aud discussed with
him the entire situation. The solicitor
general did not deem 1t necessary to arrest
President Marsh at the time, believing that
a man who had voluntarily confessed
as TO the Lucas defaloation,
and made the journey from Philadelphia
to Washington to inform the controller as to
these irregular issues Of certificates of
stock, was not likely to fly for the purpose
OF avoiding the arrest which he had thus
invited. In returning to my house from
this conference with the solicitor general
found President Marsh awaiting me, and
soon after he left for Philadelphia
The controller then explains the delay in
appointing receiver, saying that the bank
was IN the hands of the examiner, who was
practically an acting receiver, and that it
was necessary to take tins 10 find q proper
man for receiver.
THE CHARGES AGAINST LACEY.
The controller has been criticised for
three things:
81. For allowing Marsh to remain in
Office after his confession and not causing
his arrest
's2 For the delay in closing the bank.
3 For the delay in appointing re-
ceiver.
''As to the first matter complained Of. I
have this to say, that am nowhere
charged with any responsibility
in connection with criminal prosecu-
uions, and the bank examiner
is held to have done his duty so soon as he
lays before the United States attorney any
facts involving crime which may come to
his knowledge In the discharge of his duties.
Every bank examiner is instructed and ex-
pected to do this, and could not avoid the
conclusion that Mr.. Drew had discharged
this duty after reviewing his letter of Jan.
10, in which he says that he was assisted In
securing settlement with the Lucas estate
by Hon. John R. Read, United States dis
trict attorney, whom he had employed to
aid him in the transaction 1 had right
to suppose that from that time on to the
final arrest the United States district
attorney was fully informed as to President
Marsh's conduct.
TOOK 1T ALL FOR GRANTED.
"In this letter and In the interview which
followed on Jan. q was led to believe that
not only the district attorney, but also the
clearing house committee, were conversant
with all the facts, and that these gentlemen,
together with the directors of the bank (who
were really the responsible parties), and the
examiner were all of the opinion that
President Marsh had made voluntary con-
fession as to the funds abstracted by Presi-
dent Lucas; that he had not profted by the
defalcation in any way; that he was gem
uinely repsntant; that he was the only one
living who could substantiate any
claim for the lost funds, and that
his services were almost indispensable
to complete the solution OF the difficulties
which surrounded the bank. During the
time he remained president the examiner
was daily at the bauk, his assistant wes aot
ing as chief bookkesper, one of the most ca
pable directors had an Office in the same
room, and others of the board we're expected
to look closely after the management.
THE DELAY IN CLOSING IT.
''2. For the delay in closing the bank-In
regard to this matter desire to say that the
controller can only act in accordance with
the law. As the Keystone National bank
had never had its franchise declared for
feited, nor had had Judgment rendered
against it, nor committed any other act in
insolvency, the controller could not pro-
ceed under the section governing this case
unless he became satisfied of its
insolvency. AS the report OF
Examiner Drew, under date OF
Jan. "a, shows that the capital Of the bank
was not in any degree impaired the con-
troller certainly had no lawful right
to close the bank at that time.
As the statement of Feb. 16, for
warded by Examiner Drew, exhib-
its impairment of only S125, ,465, leaving
an excess of S374, ,533 in assets. after
all the liabilities were provided fer.
it certainly would not have been justifi-
able for the contr oller TO certify TO its Ia
solvency and close it up when no act OF in
solvency had besn committed. This brings
US down to the report of Feb. 2S, which
reached the controller Monday, March 2,
1891.
THE DECISIVE STEP.
'tThe hank was closed on the evening OF