Waterbury evening Democrat., 1891-06-13
TWO MILLION GONE.
Another Startling Discovery
 in Bardsley's Seedlings.
THE SCHOOL FUND TAKEN
It Was Paid to Him by Pennsylva
 nia's State Treasurer.

Testimony Brought Out Against United
 State oficials-AssiStant Bank Exam finer Jones' Statement Creates a sensa-
 tIon-H. H. Yard Arrested at Trenton
 for Complicity in the Bank swindle.
 PHILADELPHIA, June 13.-There was before the Bardsley investigating com mittee during the day, and prominent United States officials names were brought into the case in 8 manner en- tirely unexpected to the majority of tn e committee.
 Assistant Bank Examiner Jones, who is very close to Bank Examiner Drew, and gave the committee information re- garding Comptroller of Currency Lacey's knowledge of the affairs of the Keystone National Bank that has hitherto been kept carefully guarded. This was that on the 18th day of last February Comp troller Lacey was in this city and person ally visited the Keystone Bank building and was shown the books and given full insight into its condition as known at that time by Bank Examiner Drew.
 Another Sensation.
 Another sensation was the statement
 
 Director of Public Works. This state ment connected the name of Assistant Secretary of the Treasury Nettleton with the attempt to make Nelson F. Evans, director of the Spring Garden National Bank, receiver of the broken Keystone Bank.
 Assistant Examiner Jones when called to the stand explained at some length, in answer to questions, the methods of ex- V and how the Keystone had been exam ined The discrepancy in the ledger of the Keystone was first discovered by him on January 0, 1891, but not by any in- formation furnished by Examiner Drew.
 Comptroller Lacey Brought In.
 After the committee had asked all the Examiner Jones said: ''There is another thing which wish to state. Upon the 18th day of February Comptroller Lacey was in this city. There was reception held at the Hotel Lafayette which he at tended. After it was over Bank Exam finer Drew brought Comptroller Lacey over to the Keystone Bank and I showed him the books and explained to him the condition of affairs az we then knew them to exist. explained the padding of the New York Banking Exchange accounts, anu lHLOElucu hlH Ol Iu6 uu0 DlllS WHICH had been found. The difference found in the ledger and the stock accounts, for which the Lucas estate was hold responsi- bls at that time, was explained to him.
 " Comptroller Lacey understood all about the Lucas dedication, which at that time was understood to be $600, ,000. Then the assets were considered, and Comptrol- Ter Lacey called the Sea Girt and Spring Lake property worth $700, 900 instead of $500, ,000.''
 This statement of Mir. Jones caused great sensation, as Comptroller Lacey's visit to the bank had been kept a close secret, and Bank Examiner Drew has never, under the severe cross-examina- ton he has been subjected to, allowed himself to give the slightest intimation of it.
 Mir. Jones also stated that as an expert he did not believe it was possible to tell by the books of the Keystone Bank how much of the deficit in the Keystone Bank occurred before John c. Lucas death and how much had occurred since.