The morning call., 1891-07-11
THE KEYSTONE BANK
Investigating Committee Still
Hard at Work.
Postmaster General Wanamaker Explains
His Connection.
The Story Of BardSley'S SpeCulatiOn-The
0YeTiSSue Of StOek-Who Received
the Missing Money.
SIeeial to THE MORNING CALI


story of the Keystone Bank, and stoutly
maintained that he put the S93O,Ooo in the
bank, but did not know what became of it,
Bardsley said that Bank Examiner Drew
had been heavy borrower from the Key
stone Bank and was completely under the
thumb of Lucas and Marsh. In regard to
John Wanamaker, Bardsley said Marsh told
him Wanamaker knowingly held over
issued stock and demanded 500, 600 for it.
and upset the plans forsreorganizing the
bank.
wANAMAKER BROUGHT TO TERMS.
Marsh retained Sulzberger and Johnson
as counsel, and they made demand on
Wanamaker, which he refused, proposing
that tie Lucas estate should paw him
$4,000. Marsh S25, 900 and the bank S25, 900.
The lawyers then notified Wanamaker that
If the fraudulent shares were not delivered
on specified date they would resort to
legal measures. The shares were then
turned over without delay. Bardsley as
serted that Wanamaker had made a threat
that he would see Comptroller Lacey and
have the bank closed before they expected
il. In March, 1890, Marsh came to him and
said Wanamaker wanted 100000 at once,
and Bardsley let Marsh have the money.
Bardsley also talked great deal about his
connection in the past with several promi-
nent Philadelphians and blamed them for
the stand they had taken against him.
Speaking Of the scheme to get the gas
works from the city, Bardsley asserted
that Colonel Mcclure of the Times was in
it. Mcclure WAS TO get big block of stock
for his advocacy in his paper. and was not
to pay a cent for it. Regarding the pay
ment of $500 to Hugh Mullen, Bardsley
said Mayor Filter wanted Mullen appointed
Mercantile Appraiser, and William NJ.
Singerly of the Record wanted Richard j.
Lennon appointed to the same place.
YARD IN THE POOL
Afterward Bardsley learned that Matt
Quay and the Auditor General were push
ing General Albert Crawford for the same
place. The result was. overtures were
made to Singerley to draw Lennon out of
the fight, and he was promised that if Len
non was taken out 100000 OF the State
money would be deposited in the Chestnut
street Bank. This was done, ard Mayor
Filter got angry at what he claimed to be
broken promise. Bardsley then paid Null
len $500 TO redeem The promise to the
Mayor. BardSley said y. b. Yard got a
great deal of the Keystone money. He was
in the pool with Lucas and Marsh, and
ailONCu llllu W ONtEuEdW HIS account
$4,000, even when the run on the bank was
going on. The remainder of the statement
was simply long story of Bardsey's
troubles, containing no new facts. Yard
was then called, but did not respond, his
counsel announcing that his case had been
appealed. The committee instructed the
City Solicitor to take steps to compel Yard
TO appear.
THE PosTMAsTER's STATEMENT.
Then Postmaster General Wanamaker
appeared. He said he never pledged over
issued stock after he was told that it was
oyer-lssue, and it was out of his hands at the
time. He did not know Yard and had never
met Mrs. Lucas but once He was asked
what tranSplred between him and Marsh Mt
Washington. He said Marsh asked him to
assist the bank and he declined. Wana-
maker said his firms balance in the Key
stone at the time of the run was $4,000. and
when 1t closed it was much larger. The
last money received from the bank was
about year before the bank closed, and the
last discount was obtained in October, $780,
AS to the story told by Bardsey about
threats to close the bank, and that the law
yers compelled him to return the stock,
Nanamaker said it was absolutely false
Granville Halnes and Samuel b. Huey came
to Washington to see him about oyer-issued
stock, and he told them they must settle for
IT, aud If they did not, in justice to himself,
he should inform the Comptroller of Cur
rency, After the bank closed lie gave up
the stock. Bardsiey's statement that Marsh
obtained from him 500, ,0J0 for Wanamaker
In March, 1880. was absolutely untrue: was
without the slightest foundation, and Wan
amaker invited the committee to inspec. his
books.
STOCKS HELD AS COLLATERAL.
Wanamaker was informed by member
of the committee that during their examina-
tion OF the Keystone stock book they found
800 shares Of stock in his name, in addition
to 2515 shares which he testified had been
given lin By Lucas to use as collateral for a
deal in Reading. "When appeared before
the committee" said Mr.. Wanamaker, q
confined myself principally to the business
OF the firm in my deals with Lucas in Read
ing. l had In my head certain private mat
tiers, but did not suppose the committee want
ed to hear of my private operations" Wana-
maker then again referred to the 2515 shares
which he had held as collateral, and gave
the committee list of those he had turned
over to the Lucas estate; that some of those
shares had been at one time in his name he
did not state, as he had not used them in
any operation. In regard to the stock found
in his name 625 shares of ii, he said were
held by Irwin q Toland, his bankers, as col
lateral IhiS reduced 1t 10 1000 shares of
stock OF these, five blocks of 200 shares
each we're dated March 8, 1886, and while
issued in his name the power of attorney
had never been ndorsed by him, and they
could never have been used.
LUCAS OBTAINED A LOAN.
The next lot. five blocks of 200 shares
each, were dated four weeks earlier He
was Director in the Grand Trust Com
pany. and Lucas came to him and asked
him to obtain him loan of $4,000 on
stock y have been just foolish enough all
my life," continued Mr.. Wanamaker, ito
do those things, and got the money On the
stock and gave it to MIN. A considerable
time afterward 1T was paid off by the Lucas
estate ana they got the stock back" Wana-
maker also presented the committee with a
letter from Lucas, dated May 28, 1886, in
ciosing ., money to pay interest on the ioan.
"Of the other unused five blocks of stock"
SAID Wanamaker. my impression is that
Lucas at first intended to ask for a larger
loan, and so issued them. 1t was never
used, however, as it could not have been
without my indorsement l know of no
other STOCK, but l remember that ten years
ago when Lucas was securing control of
the bank he came to me and said he did not
want people to know who certain stock be-
longed to, and for time placed some in my
name.
THE READING TRANSACT
In regard to Certificate 450. which was
transferred by Yard to Scudder aud Dur
nam OF Trenton, that is part of the stock on
which the loan from the trust company was
secured, and after the Lucas estate got it
back It was very likely passed over to Y ard
again TO raise money on" Wanamaker then
$50 "1he V'oi az ouiue ieHBtn the trdnSac-
ton In Reading in which Lucas was part
ner, and SAID that when the settlement was
made President Marsh admitted. in the
presence of three witnesses, that the Lucas
estate owed him S15.OOO The fact that
some OF the certificates held as collateral bv
irwin and Toland were dated after Lucas
death was due. he said, to the fact that the
broker would not handle them while in a
dead mans name. In closing his testimony
Wanamaker read letter from Comptroller
Lacy aud Assistant Secretary Nettleton to