Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-05-18
BANK WRECKING.
Further Details of the Methods Pursued
BY the Keystone Officials

Further Details of the Methods RUrsheo
BY the keystone officials
PHILADELPHIA, May 17.-The hear
ing of Gideon W. March, President, and
Charles w. Lawrence, ex-assiStant cash
Ter of the broken Keystone National
Bank, charged with classifying the re-
turns of the bank to the Comptroller Of
the Currency, was resumed here yester-
dav morning before u. s. Commissioner
Bell. Bank Examiner Drew again took
the stand and was questioned as TO why
he did not discover, during his regular
examinations, that a number Of pages
had been cut from the banks ledger
and afterwards replaced. In eXplana-
lion he stated that in n large bank
folio of two thousand pages, IL was not
such an unusual thing for the entry
clerk TO cut pages from the ledger and
paste them in for the purpose OF keeping
Individual accounts in alphabetical or
der. Neither he nor his assistants in
the course of their examinations OF an
individual account ledger follow the
number of his pages or even the names
of the accounts, but simply see that the
account balances. Mr.. Drew concluded
his testimony by stating that he did not
give the bank officials notice of the time
when he was about to examine the
bank.
The testimony of John Hayes. cashier,
the next witness, bore out To great eX-
-, al ha la
that the bank was practically run by
small clique. Hayes never assisted in
making up the bank account for sub
mission TO the Comptroller, but signed it
when il was presented to him by PreSi-
dent Marsh. Marsh always made up
the account, and, as he had implicit
faith in his honesty, he never questioned
the statement. He never knew until
after the run i'm December last of the
enormous amount Of the Lucas deficit.
When the Bank Examiner was expected
to visit the bank Marsh would
borrow from 500, 900 to 3d. 900
in cash from the Spring Garden
National Bank and place it among the
assets Of the bank, by which means the
banks reserve would be raised TO the
legal amount required by law. No
entry was ever made of these loans on
the banks books, and when the Exam
lner had concluded his examination the
money wouil be returned to the Spring
Garden Bank for these loans. Money
was also borrowed from the Third Ma
tional Bank in the same way TO meet
their Clearing indebtedness.
j.. Frank Lawrence, a brother Of
Charles Lawrence, one Of the accused
men. testified that he had charge OF
the ledger from which the pages We're
cut. He discovered that the pages had
been cut from the book, and spoke TO
his brother and Marsh about, but was
told by them that it was all right. They
would be cut from the book about the
time of the expected visit of the Bank
Examiner, and were replaced after his
departure. He did not know who cut
the pages out
Henry Van Bell, J. r. Jackson, ChaS.
c. TORI and Dr. Charles Shellenberger,
all of whom are or have been at some
period directors of the bank, showed by
their testimony that they knew but
little of the banks real condition, and
never had any idea of the amount OF The
Lucas deficit, or ''defalcation, as the
District Attorney termed it. until the
time of the run in December last. They
also testified that they were never
allowed to examine the assets Of the
bank, as special committee appointed
by Marsh, and generally consisting OF
Granville Is. Haines, Samuel Lucas and
Louis Dreka, did this, and reported to
the Board. They all placed the great
est confidence in Marsh, and trusted
him without question until the time OF
the discovery Of the rotten condition OF
the bank.